VentureBeat

GreatPoint Energy, a company developing a way to turn polluting coal into less-dirty natural gas, has raised a whopping $100 million third round of financing.

The company will use the money to finish proving its technology works in large-scale production which, if successful, will be a significant step toward reducing the release of carbon emissions.

The new lead investors in the Cambridge, Mass. company are Citi Sustainable Development Investments and Dow Chemical, who were joined by AES Corp. and Suncor Energy. Chief Financial Officer Dan Goldman said the investors were chosen because they are leaders in the field can help bring GreatPoint to market. That should happen around 2011 or 2012.

The company previously raised $37 million from well-regarded Silicon Valley venture firms such as Kleiner Perkins Caufield & Byers, Khosla Ventures, Draper Fisher Jurvetson and Advanced Technology Ventures.

For GreatPoint, the technology is no longer in question. The various components of the coal gassification process are known, but the company is trying to make the process more affordable by speeding it up. Goldman said the main risk to the company is the tightness in the labor market for engineers and construction. Significant refining and power plant construction in China and India are sucking up much of the supply of skilled gas plant engineers.

Another venture-backed company treating coal is CoalTek, but it is focused on making coal cleaner, not turning it into gas.

Rather, GreatPoint’s competitors are conventional energy giants such as GE, Conoco Phillips and Shell. Those other companies also have gassification technologies to produces methane. However, their processes take several steps to get from an initial stage of Syngas (CO and Hydrogen) to methane, whereras GreatPoint has created a single-step conversion process. It can gassify a variety of materials, from coal to biomass.

Here’s the latest action in green technology (updated):

Phoenix Motorcars, latest electric vehicle company — The Rancho Cucamonga, Calif., company makes electric SUVs and SUTs that can get 130 miles from a 10-minute charge, and is close to signing a $15 million first round of capital from investors Kleiner Perkins Caufield & Byers, Virgin Fuels and AES Corporation, according to PEHub. The vehicle’s top speed is 95mph, with an expected retail price of $45k . Consumer sales expected next year. Ray Lane, who led the deal for Kleiner, did not respond to request for comment. Pre-money valuation expected at $10 to $20 million. PeHub says the company originally planned to raise $100 million (see doc: Phoenix.pdf)
(Update: We’re told by a source close to this investment group that this report is inaccurate. He didn’t specify in what way. We should have more).

California Treasurer Bill Lockyer calls for $3.5 billion investment in solar energy — His proposal is part of a $5 billion bond package to green state government buildings, expand use of renewable energy, increase energy efficiency and spur innovation and cost-reduction in California’s green technology industry.

Canadian solar cell manufacturer, Photowatt, withdraws IPO, citing unfavorable conditions — See story here.

Green consolidation — The Cleantech Network, a cleantech research and event group, has expanded into publishing with the acquisition of industry trade publication Inside Greentech. There’s a summary of the deals so far in this area here.