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Controversial so-called ‘clean coal’ technology just got a triple-digit investment — GreatPoint Energy, a company that converts dirty coal into cleaner-burning natural gas, has raised $100 million in a Series C funding, a company spokesperson told us. The Cambridge, Mass.-based company said it will officially announce […]

greatpoint.jpgControversial so-called ‘clean coal’ technology just got a triple-digit investment — GreatPoint Energy, a company that converts dirty coal into cleaner-burning natural gas, has raised $100 million in a Series C funding, a company spokesperson told us. The Cambridge, Mass.-based company said it will officially announce the news on Monday and PeHub and VentureWire are reporting more details on the deal.

The word was out in August that GreatPoint was looking to close a substantial round of funding. Investors in this latest round include Dow Chemical (DOW), Citi Sustainable Investments, AES Corp. (AES), and Suncor Energy (SU), as well as Advanced Technology Ventures, Draper Fisher Jurvetson, Khosla Ventures and Kleiner Perkins Caufield & Byers. This latest funding brings GreatPoint’s total funding to $137 million.

Dirty-burning coal is a massive problem. About half of U.S. electrical generation comes from cheap-but-dirty coal power, according to the Energy Information Administration. And more coal plants are in the works, even while some in the sector are under investigation. Technology to make coal cleaner is getting serious attention from investors; Secure Energy, a St. Louis-based coal gasification company, raised $5.5 million of an $8 million Series A round in August.

The process of coal gasification — breaking it down into cleaner natural gas and CO2 — is one of the most promising areas of clean coal. The natural gas can be sold and the CO2 can be captured and stored. GreatPoint told CNET in August that it can produce its natural gas product “bluegas” at about $4 per million BTUs (British thermal units), lower than the current market price of nearly $7 per million BTUs. At the same time coal gasification remains a relatively expensive process and is rather unproven on a larger scale.

  1. [...] big financing, as has been reported by VentureWire, PE Hub and others (Earth2Tech has a blurb here). As reported by Jonathan Shieber at VWire, the $100mm round has been led by new strategic [...]

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  2. [...] in the research stage. And clean coal technologies in general are highly controversial. Though that hasn’t stopped the venture world from investing in startups like GreatPointEnergy and Secure Energy. Check out the release for details on the [...]

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  3. [...] than the gasification of coal in the power plant. Companies like GreatPoint Energy (which just raised over $100 million), meanwhile, are focusing on gasification in the plant. “The U.S. energy [...]

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  4. [...] Biomass Plant: The cleaner coal company backed with $100 million in venture funding is building a biomass demonstration plant in Somerset, Mass. — [...]

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  5. [...] period was cleaner coal company GreatPoint Energy (they call it Greenpoint in the release), which we’ve written about previously, with $115 million. The second-largest investment during the period was thin film solar company [...]

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  6. [...] natural gas, which it can sell, and then captures and stores the carbon. The company says it can produce its natural gas product “bluegas” for about $4 per million BTUs (British thermal units), lower than the current market price of nearly $7 per [...]

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  7. [...] &8216clean coal&8217 technology just got a triple-digit investment &8212 greatpoint Energy, …http://earth2tech.com/2007/09/21/greatpoint-energy-raises-100m/Al Gore&39s Epic Hypocrisy – FOXNewsGore spotlights a number of these companies, including Smart Car [...]

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