Clean Technology and Renewables

The clean tech industry is expected to be a rapidly growing market and one that we believe is at a momentous point in terms of the expansion of technologies that will help diversify energy sources and improve the environment. By some estimates, global investments in renewable energy infrastructure are projected to double in the next 10 years and reach $395 billion annually by 2020.

The Expansion of Clean Technology and Renewables

Clean Technology and Renewables Group

Recognizing the commercial opportunities and the role we could play in helping to address energy and environmental challenges, we established the Clean Technology and Renewables group in 2010 to focus exclusively on assisting companies in procuring the financing they need to grow and promote widespread alternatives to more traditional energy sources. Financing is obtained through the capital markets and, in some cases, through direct investments in companies. The Clean Technology and Renewables group also acts as an advisor for private placements, strategic mergers and acquisitions, and other transactions.

Clean Technology Market

Environmentally friendly and renewable sources of energy have long been a goal of policymakers, but without capital and investment, they cannot become a reality. In the United States, biofuel production has been encouraged in part by the Renewable Fuels Standard issued by the Environmental Protection Agency. The current standards set a goal of producing 36 billion gallons of biofuel by 2022.

Advanced biofuels are liquid fuels made from organic materials such as sugar or starch crops, cellulosic biomass, or waste. The advantages they offer over fossil fuels include zero to very low greenhouse gas emissions and unlimited potential supply. Advanced chemicals are chemical building blocks made from organic materials. Many products used in everyday life are derived from petroleum-based chemicals today. Biochemicals present the opportunity to reduce the dependence on fossil fuels to create products such as plastics, cosmetics and lubricants.

Our focus and commitment in advanced biofuels and chemicals has had meaningful results. In 2011, we helped two producers of renewable fuels — a clean alternative to gasoline or diesel — raise a combined total of nearly $350 million in a challenging financing environment. We are proud to be a leader in advising companies in an industry that, while only just beginning to mature, presents exciting opportunities to help solve energy and environmental challenges.

Our Goal

By opening the door to financing for companies with proven technologies and scalable production models, we believe we are helping to open the door to a more sustainable energy future. We believe we can play a critical role in the vital transition to a low-carbon future by helping raise capital in the public and private markets and investing alongside our clients in clean technology sectors such as solar, wind, geothermal, energy efficiency, green transportation and advanced biofuels.

To that end, this year we are extending our long-standing commitment to support renewable energy by setting a target of $40 billion in financings and capital investments over the next decade to companies that promote clean technology alternatives.