BrightSource Energy, parent company of BrightSource Industries (Israel) (formerly Luz II) has raised $150 million in a fourth fund raising round.
BrightSource Energy was founded in Pctober 2006. It builds solar thermal power plants, and currently has contracts to build plants with a combined output of 2,610 megawatts in the US.
The Series D round brings BrightSource’s total equity financing to more than $300 million. New investors in the company include Alstom and the California State Teachers Retirement System (CalSTRS). They joined existing investors in this round, led by VantagePoint Venture Partners, Morgan Stanley and Draper Fisher Jurvetson. Alstom has committed to invest up to $55 million. Its investment in BrightSource represents Alstom’s entry into the solar market. Alstom was one of the three serious contenders for acquiring Israeli solar energy company Solel, but in the end it lost out to Siemens. In the case of BrightSource, Alstom is investing in another company that rose out of the ruins of Luz, but BrightSource is trying to develop the next generation of thermo-solar power technology, while Solel, although is has been improving its products, relies on older technology.
BrightSource said that the additional financing would be used to support its 2,610 megawatts in contracts with Pacific Gas and Electric Company (PG&E) and Southern California Edison to build 14 solar power plants in the US southwest by 2016. The funds will also be used by BrightSource to further its international expansion plans. “A Series D capital raise of this magnitude reflects the market’s confidence in our world-class team and the important role of our Luz Power Tower technology in meeting the growing global demand for cost-effective and reliable solar power,” said CEO John Woolard.
Alstom Power president Philippe Joubert said, “BrightSource Energy’s market-leading solar-tower thermal-power technology complements Alstom’s strong portfolio of renewable energy solutions, building on our strength in hydro, geothermal, wind, tidal power, biomass and waste-to-energy solutions. Following this investment, both companies intend to enter into an industrial relationship, which will enhance BrightSource’s leading position in this industry.”
In February 2010, BrightSource received a conditional commitment from the US Department of Energy for $1.37 billion in loan guarantees to support the financing of BrightSource’s Ivanpah Solar Electric Generating System project the first of its US-based power projects. Ivanpah will be the world’s largest solar energy project.
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2010
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