Alternative fuel investments fall in 2010

Aug 19, 2011 - Total investments in alternative fuel technologies were USD 930 million (EUR 649.9m) in 2010, marking a four-year drop, while investments in flexible alternative fuel processes registered a record growth, according to a report by consultancy Lux Research.

The report, named Hedging Bets with Flexibility in Alternative Fuels, studies the drivers of investment in alternative fuels, and forecasts future opportunities.

Investment in flexible technologies that can use various types of feedstocks and produce different end products reached USD 698 million in the past year.

According to the report, if this tendency continues, start-ups with less flexible technologies will be urged to leave the industry. At the same time, investors will fund fewer companies in later funding stages, which will lead to more start-up bankruptcies in the coming years.

Synthetic biology has attracted the most funding among the flexible technologies since 2004, the report says proposing also investment in other technologies such as the catalytic processes, and technologies that can use agricultural, solid of gaseous waste.

The report expects corporate investors from other industries to emerge on the market, besides the waste management companies have lately joined energy and agricultural companies as leading investors in alternative fuel technologies.

(USD 1 = EUR 0.699)

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