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13 - 19
November 2006

Issue –
107

Previous editions >>>

Last week saw the announcement of
what could be the first ever main market IPO of an ocean power technology
company. US-based, AIM-listed Ocean Power Technologies (OPT) filed a registration statement with the SEC
to register up to USD 100m in shares for a proposed NASDAQ IPO. It intends to
maintain a dual AIM/NASDAQ listing.

Net proceeds of the offering are
to be used to construct pilot wave power stations to demonstrate the
PowerBuoy technology and to fund minority investments in wave power projects,
as well as encourage market adoption of its products. The company also
intends to fund the continued development of the PowerBuoy.

Marine power technologies have
been around for a while, but most companies remain at the development and
pilot project stage, nowhere near securing a main market listing. Development
of even pilot projects also encounters permitting difficulties with the large
number of authorities who have some jurisdiction over coastal waters. Last
year in the US,
the Federal and State Management Service (MMS) issued an Advance Notice of
Proposed Rulemaking, seeking comments on the development of a permitting
process for energy project development on the Ocean Continental Shelf. The
MMS, however, has not overcome potential overlaps between MMS jurisdiction
and other agencies, so how this will work in the long run is uncertain.

Even so, the marine power industry
has expanded to a level where the demonstration projects under development are
up to 50.0MW, though these are largely backed with public sector funding. There
are a number of government programmes intended to accelerate deployment,
including last week the establishment of a USD 5.0m Florida Center for
Excellence in Ocean Energy Technology at the Florida Atlantic University.
This Center will work with many of the major players in the ocean power
space, including the US Department of Energy, the National Renewable Energy
Laboratory, Florida Power & Light, Ocean Renewable Power, Lockheed
Martin, Clipper Windpower, Oceaneering, Aquantis, the University
of Central Florida, Nova Southeastern
University and Harbor
Branch Oceanographic Institution.

In October 2006, the Scottish
Executive launched a GBP 8.0m (USD 15.0m) grant programme to support demonstration
marine projects in the Orkney Isles, and the UK emissions reduction promotion
body, the Carbon Trust, announced a GBP 3.5m (USD 6.6m) technology
acceleration programme.

The support will go a long way
towards getting pilot schemes off the ground, but in order to attract
investment from the private sector, these must be completed, operational data
must be gathered and the methodology for risk assessment and project finance
in an entirely new large-scale power sector will have to be established. The
IPO of Ocean Power Technologies, if successful, may signal a sea-change in the
visibility and transparency of marine power.

After trading up to EUR 9.00 at
the beginning of last week, EU ETS Phase I prices fell steadily to close at
EUR 8.50 on Friday.  On Monday 20
November 2006, the EUA2006 vintage was up by EUR 0.06 to EUR 8.56, and hence
prices have remained in the range EUR 8-9 for the last two weeks. Continued
low gas prices, lack of buying activity and increased selling activity seem
to be the drivers of this historically low price range. Some analysts have
speculated that the announcement of the next round of auctioning of EUAs by
the Irish Government has also driven the price down over this past week,
through the anticipation of a further increase in allowances coming onto the
market in a month’s time.
In practice though the volumes to be auctioned by the Irish Government
will be small in relation to the expected surpluses and should not materially
affect Phase I fundamentals.

Phase II prices have strengthened
over this week to trade at EUR 16.30 on Monday 20 November 2006, a 3%
increase on last week. These prices are likely to be linked to expectations
surrounding the European Commission’s final allocation decision for the
Phase II NAPs. Based on the analysis of NAPs submitted to date New Carbon
Finance expects the total cap put forward so far to be reduced by around 10%.

New Carbon
Finance has identified an increase in sell-side activity in the EU ETS in 2007.
To download the Executive Summary of the new Report, click  here.

News

VC/PE News

Public Markets

M&A News

Debt and loans

Company Results

Projects & Project Finance

Contracts News

Manufacture  &
Scale-Up

Grant & Grant Programme  News

People &
Appointments

Products & Technology

Other News

Upcoming Events

Future Markets
for Plastic Photovoltaics

29 – 30 November 2006

Intercontinental Hotel, Hamburg
>>>

ACORE Annual
Policy Conference

29 – 30 November 2006

Capitol Hill, Washington DC  >>>

Renewable
Energy in America: Market
Forecasts and Policy Requirements

29 – 30 November 2006

Capitol Hill, Washington DC  >>>

Biofuels
Markets Africa

30 November – 01 December 2006

Southern Sun Cape Hotel, Cape Town
>>>

Bioenergy
World Americas

29 November – 03 December 2006

Fiesta Conference Center, Salvador
>>>

REFF India

30 November – 01 December 2006

Hyatt Regency, New Delhi
>>>

Ethanol Americas Finance & Investment

05  – 06 December 2006

Doubletree Hotel, New York  >>>

AWEA Wind
Energy Fall Symposium

06
– 08 December 2006

Pointe South
Mountain Resort, Phoenix  >>>

Private
Equity: 2007 Investors Outlook

06 – 07 December 2006

The Princeton Club, New York
>>>

Renewable
Power Project Finance

11 – 13 December 2006

DoubelTree Hotel, Austin
>>>

Renewable
Energy Asia Summit 2006

13 – 15 December 2006

Millennium Hilton, Bangkok
>>>

Emerging
Opportunities in Global Emissions Trading

18 January 2007

Federal Reserve Bank of Dallas, Houston
>>>

Managing Your
Energy Portfolio in a Greener World

18 – 19 January 2007

Don Cesar
Beach Resort, St Petersburg Beach
>>>

Biomass
Finance and Investment Summit

18 - 19 January 2007

The US Grant, San Diego  >>>

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NEX update

Click here to
check today’s changes in the NEX.

Selected News from Energy
Finance

VC/PE
News

UPDATE:
Trina Solar confirms USD 40.0m private equity investment

14 Nov 2006

Public Market News

EDF
Energie Nouvelles files Euronext IPO prospectus

14 Nov 2006

Ocean
Power Technologies files for USD 100m IPO

14 Nov 2006

Company
Results

Akeena
Solar posts Q3 FY06 loss despite higher revenue

14 Nov 2006

CDT
narrows Q3 FY06 loss as revenues double

14 Nov 2006

Ocean
Power Tech narrows net loss in Q1 FY07

14 Nov 2006

M&A News

SunPower
to acquire PowerLight for USD 332.5m

15 Nov 2006

Iberdrola
confirms Scottish Power bid talks

13 Nov 2006

Manufacture & Scale-Up

BP
Solar announces USD 70.0m expansion plans

17 Nov 2006

Schott
to build solar receiver manufacturing facility in Spain

13 Nov 2006

Projects / Project Finance

Compact
Power awarded USD 9.5m funding by Defra

17 Nov 2006

Intrepid
Technology completes USD 7.6m bond financing deal

17 Nov 2006

Green
Lion Bio-Fuels seeking financing for 227m-litre ethanol plant

17 Nov 2006

Contracts News

3rd
Rock Systems receives PV laminates for solar schools

17 Nov 2006

Suntech
signs five-year silicon wafer purchase agreement

16 Nov 2006

Debt and loans

BNDES
approves USD 406m financing for energy transmission projects

15 Nov 2006

People & Appointments

Pure
Energy names new CFO

14 Nov 2006

Xethanol
names new CEO and Chairman

13 Nov 2006

Products & Technology

Shell
and Codexis to launch collaborative biofuels project

17 Nov 2006

Clean
Energy Inc. to market geothermal technology in Canada

13 Nov 2006

Grant News

Fraunhofer
receives grant for laser technologies

18 Nov 2006

Nanotechnology
grants offered to Connecticut firms

17 Nov 2006

Other
News

EU
to review ETS Phase III trading directive

15 Nov 2006

Spanish
building legislation brings solar energy to the fore

14 Nov 2006

NEX weekly market report
03/11/2006 – 10/11/2006

The NEX ended the week up 1.4% at 273.47, as US equities
performed strongly on the back of favourable economic data and a spate of
M&A activity. The index once again demonstrated its independence from
AMEX Oil, which fell 1.1%. The NASDAQ and the S&P500 both had a strong
week, rising 2.3% and 1.5% respectively.

Index
Performance

17/11/06

Since
01/01/06

Since
10/11/06

NEX

273.97

26.7%

1.4%

AMEX Oil

1158.33

17.4%

-1.1%

NASDAQ

2445.86

10.9%

2.3%

S&P 500

1401.20

12.2%

1.5%

Top gainers in terms of change % since 10/11/06

Conergy

18.6%

VeraSun Energy

14.0%

Diversa

9.5%

American Superconductor

7.9%

Sunways

7.6%

Top losers in terms of change % since 10/11/06

PRAJ Industries

-4.7%

Sekisui Chemical

-5.0%

Hydrogenics

-5.7%

Ultralife Batteries

-6.2%

Solon

-8.4%

German and North American companies dominated the
gainers in the NEX, with Solar and Biofuels groups leading the way in the
wake of US
election results that are expected to be favourable to those sectors.
Conergy, the Frankfurt-listed solar system integrator, saw the biggest
gains, rising 18.6% on the news that it would spend USD 321m on building a wafer,
cell and module factory in Frankfurt. Its
compatriot Sunways, the Frankfurt-listed solar cell and module
manufacturer, also rose, by 7.6%. The company posted a third-quarter profit
of EUR 1.9m (USD 2.4m) after breaking even a year earlier. Sales jumped 68%
to EUR 39.2m (USD 50.3m). NASDAQ-traded solar cell and panel manufacturer,
SunPower, saw a 7.4% rise after announcing that it would acquire privately-held
solar system installer, PowerLight, for USD 332.5m in cash and stock. But
Solon, the Frankfurt-listed German solar system integrator, posted the
biggest fall on the NEX, of 8.4%, despite posting a net income of EUR 9.5m
(USD 12.1m) for the first nine months of 2006, up by 111% from EUR 4.5m for
the same period of 2005.

VeraSun Energy, the second-largest ethanol producer
in the US, also had a good week, rising 14.0% as it followed strong results
with plans to produce biodiesel from oil extracted from dried distillers
grains, a co-product of the ethanol production process. Diversa, the
NASDAQ-listed biofuel technology group, followed suit with a gain of 9.5%
after narrowing its losses for Q3 FY06 to USD 0.08 per share, from USD 0.27
per share in Q3 FY05. By contrast, Praj Industries, the Mumbai and National
Stock Exchange of India-traded bioethanol equipment provider, gave up gains
from the previous week, losing 4.7%.

NASDAQ-listed US superconductor manufacturer,
American Superconductor, ended 7.9% higher after it reported strong demand
for its 2G superconductors for fault current limiters.

Having a bad week was Ultralife Batteries, the
NASDAQ-listed US
lithium battery developer, which saw its shares decline 6.2% after its Q3
losses widened. Hydrogenics, the NASDAQ-traded Canadian hydrogen and fuel
cell system developer, also saw its losses widen, and its stock was down
5.7% as a result. Meanwhile, Sekisui Chemical shares weakened by 5.0% in Tokyo after it
emerged that it was one of eight chemical makers inspected by the Fair
Trade Commission on suspicion of creating a price cartel on sales of
polyethylene pipes for gas.

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