Invenergy$30 million convertible note from Leaf Clean Energy only weeks after raking in $250 million in capital from several other venture firms. The company has also landed tax equity to finance five wind farms in the U.S. with the potential to generate 603 megawatts of power. (Tax equity is money that banks and firms invest in companies -- including many renewable energy enterprises -- in exchange for tax credits.)
These investments distinguish Invenergy from the broader field of wind companies, most of which have had a hard time finding capital due to the downturn. Tax equity in particular is tough to come by when little income is anticipated, and a large number of wind projects have been indefinitely delayed or canceled prematurely since the economy crashed. Wind energy projects could fall by as much as half this year compared with 2008, the American Wind Energy Association told VentureWire. And despite Obama's plans to support wind operations, and despite their inclusion in the economic stimulus package, industry insiders and VCs aren't terribly optimistic.
So what makes Invenergy different? Probably its scale and traction -- the company manages the production of about 2,000 megawatts a year, and has a full pipeline of projects at different stages in store for both Europe and the U.S. (which should be greatly helped by the new funds). Claiming to be one of the top five wind providers in the country, it delivers power to both major utilities and energy merchants and manages its wind farms from early development through day-to-day operation. Other big names in wind power that have fared well include GE Energy, Siemens Wind Power and Vestas.
Until now, Leaf Clean Energy has funded mostly biodiesel, solar and waste-to-energy enterprises. Invenergy is its first bet on wind. For now, it's known for backing ethanol producer Range Fuels, thin-film solar company Miasole and hydroelectric venture Energia Escalona. Invenergy's other recent investors have not been disclosed.