The production of renewable chemicals does not receive a lot media attention; yet, it is an emerging cleantech industry that could have a record year for venture capital investment in 2010.
According to a report from the Cleantech Group, venture capital investment in renewable chemicals is on a record pace through the first half of 2010. In the first half of this calendar year, US$361 million of venture capital investment has been dropped into renewable chemical firms.
The record high investment in renewable chemicals came in 2008, when US$425 million was invested. This number will easily be eclipsed this year if investments continue at their current rate.
Andrew Thompson, the study's lead author, says there are several reasons for the jump in venture captial funding: venture capital firms are becoming more familiar with the renewable chemical market, there more new renewable chemical companies in the market, and biofuel developers are using their technology to join this burgeoning market.
Thomson notes, "While capital intensity had been a concern in the past, the sums required to reach commercialization are considerably less than in many other sectors such as biofuels, and fit in the sweet spot fo many VC investors who have raised large funds in recent years."
Read the full story at ICIS Green Chemicals: VC investments are up in renewable chems
Image credit: Michael Budde via Flickr
Energy Boom content is for informational purposes only and is not intended to be advice regarding the investment merits of, or a recommendation regarding the purchase or sale of, any security identified on, or linked through, this site.