Against a backdrop of declining investment in the sector, the new money represents more than a quarter of the UK’s entire venture capital investment in clean energy, which last year stood at £66.5 million, its lowest in over five years.

The UK is currently developing a range of exciting technologies, including renewable energy sources such as fuel cells, photovoltaics, marine and wind power, as well as new forms of energy efficiency and demand management such as smart grid technology. In offshore wind and wave technologies, Carbon Trust analysis has found that the UK could generate up to £70 billion for the economy and almost 250,000 jobs by 2050.

 

The Carbon Trust will focus the new investment on companies that offer prospects of a strong commercial return and, in particular, on those technologies where the UK has a natural strength and the potential to become a global leader.

Tom Delay, Chief Executive at the Carbon Trust, said, “The UK is a real hot-bed of clean tech innovation and the sector has the potential to create significant economic value for Britain but it needs urgent support. In the current environment, even the most promising companies are finding it hard to attract the funding needed to turn bright ideas into commercial success stories. With this new funding boost, we are confident that the tide will now begin to turn.”

Peter Linthwaite, Managing Partner of Carbon Trust Investment Partners, said, “The investment package that we have announced today will be warmly received by the wide range of UK clean tech companies who have break-through ideas that they are ready to take to market. Many of these 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 and encourage much-needed additional private investment as well.”

 

The new funding follows two significant recent Carbon Trust investments. Separate investments into Plaxica, an Imperial College spin-out developing next generation biopolymers, and smart-grid management technology provider, RLtec, were made in mid-October.