Investment in the clean technology sector bounced back in the second quarter of 2009, following two consecutive quarterly declines according to preliminary results released by The Cleantech Group. The turnround was lead by the transportation sector specifically, vehicles, biofuels and advanced batteries — reflecting attention on the automotive sector and significant government stimulus.

The figures, says the Cleantech Group, showed a total of $206 million invested in the biofuels sector, including agri.capital, a European developer of biogas plants, which raised $82 million from TCW Group and others and renewable oil producer Solazyme, which raised $57 million from Braemar Energy Ventures, Lightspeed Venture Partners and new investor VantagePoint Venture Partners.

"Cleantech venture investment has rebounded moderately after free-falling for two consecutive quarters," said Brian Fan, senior director of research, Cleantech Group. "We are seeing initial signs of recovery in other cleantech asset classes, including recent activity in solar tax equity, increased M&A levels, as well as billions in government stimulus that are being allocated globally to the cleantech sector over the next several quarters. Additionally, new climate and energy legislation from governments worldwide and the upcoming Copenhagen climate negotiations continue to be strong drivers of investment and innovation."

"While venture investment in solar is down dramatically, utility investment in cleantech is up. Solar thermal was the leading energy source procured through power purchase agreements in the first half of 2009," said Scott Smith, U.S. leader of Deloitte's Cleantech practice. "New investment tax credits are playing a major role in making new solar thermal, solar PV, and wind projects more economically viable for utilities, which are bringing their access to capital to the sector."