Enterprise News

Cleantech gets £18 million shot in the arm

Nov 09 issue

Start-ups and growth companies in the cleantech sector are set to benefit from additional funds being made available through the Carbon Trust.

The government is providing an extra £18 million for the Carbon Trust to make direct equity or equity-related investments in companies helping the UK move towards a lower-carbon economy.

Ed Miliband, secretary of state for energy and climate change, says, ‘Supporting green start-up companies with this capital means innovative ideas for low-carbon energy will be able to make it out of the lab and into the future energy mix.’

Investment will focus on ‘companies that offer the potential for a strong commercial return’, and technologies where ‘the UK has natural strength and potential to become a global leader’, according to the Carbon Trust, whose recent investments include RLtec, a grid management specialist, and Plaxica, a developer of new recyclable materials.

Peter Linthwaite, managing partner of CT Investment Partners, which advises the Carbon Trust’s venture capital arm, says, ‘Many [low-carbon] technologies are now well beyond the proof-of-concept stage but face a worrying shortage of second round funding that is needed to take them through to commercial viability. We are aiming to help plug this gap.’
Venture capital investment in the UK’s clean energy sector last year stood at £66.5 million, the lowest level in more than five years, according to a Carbon Trust study.


Editor's View Business Bulletin Trailblazers Business Tools Finance Expansion Strategy Leadership Flotation Exits Columns Enterprise News Deal Listings Backchat	Enterprise News Cleantech gets £18 million shot in the arm Nov 09 issue Start-ups and growth companies in the cleantech sector are set to benefit from additional funds being made available through the Carbon Trust. The government is providing an extra £18 million for the Carbon Trust to make direct equity or equity-related investments in companies helping the UK move towards a lower-carbon economy. Ed Miliband, secretary of state for energy and climate change, says, ‘Supporting green start-up companies with this capital means innovative ideas for low-carbon energy will be able to make it out of the lab and into the future energy mix.’ Investment will focus on ‘companies that offer the potential for a strong commercial return’, and technologies where ‘the UK has natural strength and potential to become a global leader’, according to the Carbon Trust, whose recent investments include RLtec, a grid management specialist, and Plaxica, a developer of new recyclable materials. Peter Linthwaite, managing partner of CT Investment Partners, which advises the Carbon Trust’s venture capital arm, says, ‘Many [low-carbon] technologies are now well beyond the proof-of-concept stage but face a worrying shortage of second round funding that is needed to take them through to commercial viability. We are aiming to help plug this gap.’ Venture capital investment in the UK’s clean energy sector last year stood at £66.5 million, the lowest level in more than five years, according to a Carbon Trust study.