'Clean-tech' Sector Hunts for Cash

Chicago Business (7/20, Hendershot) – For the last several years, investors have funneled money into green technology with a fervor reminiscent of the dot-com boom. Globally, new investments in sustainable energy grew 25% in 2003, to $27 billion; in 2005, a 73% jump pushed the figure to $60 billion. By 2007, it was $148 billion and climbing. But when the economy soured, so did the zeal for "clean tech." In 2008, sustainable energy investment grew by only 5%, according to the United Nations Environment Program. When those investments plummeted by 53% in the first quarter of 2009, the dot-com analogy looked even more appropriate.

…[Although] these businesses think the innovations already produced by green-technology research will give them a competitive advantage. For example, Bolingbrook-based specialty chemicals maker Elevance Renewable Sciences Inc. uses natural oils — from soybeans, mustard seeds, algae and other sources — to create chemicals that the company says can perform on par with petrochemical equivalents.

The advantage is in production: Elevance's manufacturing processes are less costly than analogous petrochemical ones, according to CEO K'Lynne Johnson. Elevance's manufacturing facilities also cost three to five times less than equivalent petrochemical facilities, which is no small savings considering that a new Elevance facility still runs about $100 million. Elevance is profitable and expects revenue to grow to $1 billion within the next 10 years.