Energy prices to remain high

That's the verdict, at least, of a few recent news items.

First of all, the National Petroleum Council released a study (pdf of execsum here) which projected continued energy demand growth which will require the use of every available energy resource, dirty and clean -- very interestingly, they made a strong endorsement of energy efficiency as an energy source.

Secondly, this news that Goldman Sachs is projecting $95 per barrel oil by the end of the year, unless OPEC and other suppliers significantly boost output. Now, oil is just one energy source with limited direct impacts on many clean energy technology markets.

But thirdly, word came out that electricity consumption in Europe is continuing to expand at the same pace as GDP, despite significant efforts to promote efficiency improvements. And in the U.S., Citibank is advising their investor clients to abandon coal industry investments -- for a number of reasons including expectations of continued pressure to reduce carbon emissions.

It's a good time to already have a head start "up the learning curve". But caution, as always, is still warranted.

Cleantech VC deals so far this week:

• Boston-area waste-to-energy startup Ze-Gen announced a $4.5mm Series A led by Flagship Ventures and including participation by VantagePoint Venture Partners.
  

• SAGE Electrochromics, which has developed windows with the capability to quickly darken (to block light and heat, for significant energy savings) or clear up (for visibility) announced a $16mm Series B, led by Good Energies. Applied Ventures and Bekaert also participated in the round. The deal includes provisions for an additional $13mm in financing.

• VentureWire reported that ImageTree, which is developing technology for forest inventory and management, has taken in $2mm in debt financing from BlueCrest Capital. The company's technology has applications in sustainable forestry and potentially for land-based carbon sequestration project monitoring.

• UK-based Metalysis, which has proprietary technology for the production of specialty metals (for a number of applications including some in cleantech areas), raised a GBP 13mm round of financing from Environmental Technologies Fund, 3i, QinetiQ, Seven Spires, Chord Capital and Cambridge Capital Group.
  

Other news and notes: Most of this is outside of any VC's investment horizon, but it's a fascinating vision... Here's a useful presentation (note: link opens a pdf) describing Virgin Fuels' investment strategy, for those interested... Another relevant bplan competition -- the Oxford University 21st Century Challenge... Yet another article on why watertech is poised to attract VCs -- but VCs are having a tough time finding backable ventures (calling all entrepreneurs, we need you in watertech!!!)... Perhaps an unexpected problem for centralized utility-scale PV developers... Finally, your tax dollars at work, on a pretty nifty tech idea.

REMINDER for tomorrow's REBN-East networking event:
July 19th, at Flat Top Johnny's in Kendall Square, 6:30pm.
(Sponsored by Flagship Ventures)