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GE Ups Investment in A123, Confirms Commitment to Green

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GE (s ge) seems to be reacting to all those stories about how the recent financial turmoil will throw a wrench in renewable energy by emphasizing that yes, it will continue to invest in green technologies. This morning the company said that through GE Commercial Finance, Equity and GE Energy Financial Services it made its sixth equity investment into lithium-ion battery maker A123Systems, raising its stake to $55 million.

That announcement comes on the heels of GE sending out a press release yesterday claiming that “amidst global economic turbulence,” revenues from the company’s green Ecomagination line will grow 21 percent to $17 billion this year, while its investment in green R&D will grow beyond $1.4 billion. And it estimates that by 2010, its annual eco revenues will grow to $25 billion.

GE Chairman and CEO Jeff Immelt said:

‚ÄúThere is a green lining among the current economic stormclouds and GE customers and investors are benefiting.”

At the Solar Power International conference last week, GE Energy Financial Services announced that it had invested $2.5 million into Soliant Energy, a maker of rooftop concentrating photovoltaic systems. OK, OK, we believe that the company is still committed to green. Though let’s see if the credit crunch, and dropping oil and natural gas prices, get drawn out long enough to actually make GE change its tune.

9 Responses to “GE Ups Investment in A123, Confirms Commitment to Green”

  1. This is the first time I commented here and I should say that you provide genuine, and quality information for other bloggers! Good job.
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  2. I for one am glad to see GE invest in green technologies. Not only does our country need it but the entire world does. And who better to get behind the project than one of the most successful companies the world has ever seen. I wish them all the luck in the world.

  3. This is not a new funding – based on the Registration Statement that A123 has on file with the SEC. The $102 million Series E round was all in the first half of 2008. Here’s what the company says in its registration statement:

    On May 6, 2008, May 30, 2008 and June 16, 2008, we sold an aggregate of 6,152,553 shares of our series E convertible preferred stock to 15 accredited investors at a purchase price of $16.59 per share for aggregate proceeds of $102.1 million.

  4. Yep, GE is going long on renewable energy, last week at Solar Power International 2008, they actually had a booth at the event, I think this is the first year I have seen them with that type of representation at a solar power trade show. Also I noticed piper jaffray had a huge presence this year, which shows many financial firms are betting on renewable energy!