US-Israeli start-up has raised HCL CleanTech Ltd. $5.5 million in its first financing round from Burrill & Company and Khosla Ventures, the fund of Sun Microsystems co-founder Vinod Khosla.
HCL CleanTech was founded by Prof. Ari Eyal, Prof. Avram Baniel, and his son, CEO Eran Baniel. The company aims to produce a gallon of ethanol from agricultural and organic urban waste at a cost of just $1 - far less than the current price of ethanol.
Angel investor Zohar Gilon provided HCL with its initial funding, and was involved in the company's strategy and marketing. Both Burrill & Company and Khosla Ventures have track records in cleantech investment, and this is their first investment in an Israeli company. Vinod Khosla has made personal investments - not through his firm - in US-Israeli semiconductor and telecommunications start-ups eAsic Corporation and iSkoot Ltd.
HCL will use proceeds to pursue R&D in Israel and build a pilot plant in the US to be completed in 2010. HCL CleanTech has developed a proprietary technology to make a process converting lignocellulosic biomass to fermentable sugars economically very attractive. Tthese fermentable sugars which are considered the gateway to advanced biofuels (such biobutanols, biodiesel, and jet fuel) and biochemicals, such as bioplastics).
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2009
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