New Venture Capital Fund “Yellow&Blue” for Clean Energy
Utrecht, the Netherlands - Yellow&Blue Investment Management B.V. is a new venture capital fund set up by Nuon with a starting capital of €40 million. With this venture capital Yellow&Blue will invest worldwide in technology to provide clean energy and efficient energy use. Yellow&Blue is an independent company with its own management structure and Supervisory Board. The new venture capital fund will join other international venture capital funds to invest in technological inventions with a proven successful prototype that is way beyond the drawing-board or laboratory stage. Up to now Dutch investors have failed to make the most of opportunities in the field of clean energy. Nuon recognises this and is now taking the lead by putting €40 million into this fast-growing market for the foundation of Yellow&Blue.
Trends
The demand for clean energy is still rising. In its expansive growth the clean energy sector faces challenges like market introduction, cost reduction and upscaling. There are huge opportunities in the field of energy saving too: a lot can be achieved in more efficient transport, lighting and industrial production. The venture capital company Yellow&Blue will now dedicate itself to developing sources of clean energy and efficient ways of using them.
Corporate social responsibility
In 2020 20% of energy in the EU must be generated in a clean manner. The Netherlands has now reached 2.85% (2007) and this percentage barely grew in comparison with 2006. A significant reason for this is that too few venture capital funds are active in the field, whereas there has been an enormous influx of new companies worldwide that are looking for capital to finance their business plans. At the same time the turnover figures of companies in the clean energy sector are growing rapidly: 40% growth in turnover - from billion in 2006 to .4 billion in 2007. Bio fuels, wind energy and solar cell energy are sectors that each turn over more than billion a year. Investments in those sectors have risen 60% in the same period to 8.4 billion worldwide, of which .8 billion in venture capital.
Approach
According to Albert Fischer, managing director of Yellow&Blue, the keywords in the choice of and approach to the investments of the new venture capital fund are sustainability, international, trend-setting, direct involvement in the ongoing projects, variety and return on investment. ‘We aim to make a major contribution to applications of clean and renewable energy in the future’, he says. Yellow&Blue plans to distinguish itself not only by investing but also by actively counselling the innovative companies it helps, so that they can grow quickly and efficiently on the market.
Return on investment
It is this direct involvement of Yellow&Blue that provides a unique combination of forces and great confidence in return op investment as a reward. The portfolio of the venture capital company is based globally on a very diverse selection of technologies, solutions and applications.
The moment of investments depends on the nature and stage of development of a particular innovation. The participation of Yellow&Blue in an innovative project may vary from 5 to 49% in the share capital, i.e. from co-investor to main investor. If Yellow&Blue is the main investor, it goes out itself and looks for co-investors. Albert Fischer believes in his fund’s approach. ‘A fund for clean energy is currently big business and is no longer soft, nor does it smack of hair-shirt brigade ideals,’ he says. ‘The world of dreamers is old hat; I have seen it turn into fully-fledged business. Realism now transcends ethical considerations!’
Innovative energy sourcing
Yellow&Blue will focus its investments on sustainability, energy saving and new energy sources including bio fuels and biomass conversion, fuel cells, hydrogen, clean fossil fuels, reducing CO2 emissions, energy storage and IT for smart electricity networks.
Concrete example
For example, there is a huge demand for bio fuels generated from agricultural waste, instead of from agricultural products that are also to be found n the food chain. Yellow&Blue knows of many applications from companies that have the technologies that make this possible. An excellent opportunity would be to establish such a company in the Netherlands, thereby making use of the logistical infrastructure in the north of the country for transport and removal by ship or train.
About Nuon
Nuon is an ambitious energy company, serving more than three million consumers and organisations with over 10,000 employees in the Netherlands, Belgium and Germany. Nuon produces, transports and delivers electricity, gas, heating and cooling, and engages in energy trading in the major international markets. Nuon also supplies additional services and technological innovations to businesses and consumers. In doing so, Nuon aims to provide a reliable, sustainable and affordable energy supply. With a turnover of EUR 5.7 billion in 2007, Nuon occupies a prominent position in the Dutch energy market. The shares are held by local and regional authorities. Effective 2008, Nuon will be split into a network company and a production and supply company. From then on the two companies will operate independently under a financial holding company and a joint Management Board.