Money Shines on Israeli Solar Startup
A conference organized by Israeli President Shimon Peres to mark the country’s 60th anniversary kicked off May 13 with a showcase of 60 pioneering Israeli firms that have the potential to shake up medicine, biotech, clean energy, transportation, information technology, and communications. Among them was «investing.businessweek.com», a Jerusalem thermal solar energy company with more than one reason to celebrate its newfound recognition.
Early the next day, Luz II announced it had raised $115 million in financing from a high-profile group of investors including Google.org—the philanthropy offshoot of Internet giant Google («www.businessweek.com»)—and «investing.businessweek.com», an asset management unit of agricultural giant «investing.businessweek.com». Also participating in the funding are the investment arms of two major oil companies, BP («www.businessweek.com») Alternative Energy and «investing.businessweek.com».
All of Luz II’s previous investors also kicked in to the latest round, including the Chevron Technology Ventures unit of Chevron («www.businessweek.com»), Silicon Valley venture firm «investing.businessweek.com», Morgan Stanley («www.businessweek.com»), and «investing.businessweek.com», a former unit of JP Morgan («www.businessweek.com»), bringing the company’s total funding to date to more than $160 million. Changing the Way Utilities Make Electricity
The new investment round comes on the heels of a huge deal signed in March between Luz II’s parent company, Oakland (Calif.) «investing.businessweek.com», and utility giant Pacific Gas & Electric («www.businessweek.com») that calls for Luz II to provide PG&E with up to 900 megawatts of solar electricity, one of the largest such contracts ever awarded. Unlike photovoltaic systems that convert sunlight directly into electricity, Luz II’s thermal solar system use concentrated heat from the sun to drive turbines that produce power.
Luz II is currently developing a number of thermal solar plants in Southern California’s Mojave Desert, with construction of the first facility set to start in 2009. The new funding should let the startup accelerate delivery of utility-grade power at a time when many power companies are searching for reliable sources of renewable energy. “Our technology will change the way utilities generate electricity,” promises Arnold Goldman, the U.S.-born chairman and founder of both Brightsource Energy and Luz II, and an attendee at the Jerusalem conference.
Luz II’s big news underscores the extent to which thermal solar energy is fast becoming one of the hottest renewable energy bets for investors. Some experts go as far as predicting that over 90% of the U.S.’s electrical needs someday could be met by solar thermal power—including even powering fleets of electric cars.
