On October 20, 2008, The New York Times ran an article titled "Alternative Energy Suddenly Faces Headwinds."
According to the piece:
"For all the support that the presidential candidates are expressing for renewable energy, alternative energies like wind and solar are facing big new challenges because of the credit freeze...
‘Everyone is in shock about what the new world is going to be,' said V. John White, executive director of the Center for Energy Efficiency and Renewable Technology, a California advocacy group. ‘Surely, renewable energy projects and new technologies are at risk because of their capital intensity.'"
It's been almost a year since that article ran, and I can tell you, small alternative energy companies — both public and private — are still finding it difficult to raise capital or to get credit lines from banks.
Sure, if you're a high-profile electric car company with big backers, like Fisker Automotive, you can get hundreds of millions of dollars in funding rather easily.
Fisker's top investors include Kleiner Perkins Caufield & Byers, a veteran Silicon Valley venture-capital firm of which Al Gore is a partner.
Last week Fisker received a $529 million loan from the US Department of Energy.
But for every Fisker out there getting the capital they need to be successful, there are 25 companies hitting brick walls because banks have literally frozen their credit lines.
In fact, I can't tell you how many times in the past six months I've been approached at a conference by a small alternative energy company seeking funding.
And being a lifelong green energy advocate, it kills me to have to turn them down. By all accounts, many of these companies have great technology, savvy management and a solid business plan to bring their product to market. These companies are the future!
But the one thing they lack is money.
The last straw for me came a few months back, when I spoke to a standing room-only crowd at an alternative energy investment forum.
The excitement and attendance was triple that from two years prior. But all the excitement was dampened by an overriding concern for most of the alternative energy companies in attendance: Funding.
"Jeff, I need just a year's worth of capital... and I can bring this product to market. Guaranteed." That was the general theme I heard time and time again at this conference.
I really was staring at a sort of crisis situation.
The fact is, for quite a few quality alternative energy operations — venture capital had dried up. . . and banks had stopped lending money.
So when I returned to Baltimore I knew I had to do something about it. I wasn't going to stop until I found the solution. After all, this was my life's work. I spent nearly two years writing a book on it. And I wasn't about to sit by and let great ideas and businesses wither on the vine.
You see, whether it's energy independence from Mideast oil or the preservation of natural capital or jobs, the alternative energy sector is just too important to the security and economic stability of this country. Period. End of discussion.
And because of my position and contacts in the renewable energy space, I knew I could be the bridge between companies seeking capital and venture capitalists and angel investors seeking green companies to invest in.
It didn't take me long to find the solution. . .
Introducing Harbor Energy Capital
A few weeks ago I had dinner with John and Ted Venners of Harbor Energy Capital at Kali's Court in historic Fells Point, Baltimore.
Born and raised in the rough and tumble state of South Dakota, John and Ted have spent nearly seven decades combined dealing with energy executives, negotiating energy deals and successfully navigating the Department of Energy and the Washington, D.C. crowd.
In addition, they know how to strategically add to shareholder value, taking their own Wyoming clean coal company to a $1.5 billion market cap.
Now when I first sat down to dinner with them, I didn't know exactly how we could help each other. But I soon found out.
They have a simple, but brilliant idea: Help cash-strapped alternative energy companies get funding from private investors. . . as well as help them get a piece of the federal government's multi-billion dollar stimulus package set aside for green companies.
By the way, if you're ever in Fells Point, go to Kali's Court for dinner and get the crab cakes — giant lump crab held together with little more than a prayer. It's all crab, all the time. Delicious.
Now, after the waitress cleared the table, John and Ted explained to me that they have assembled a team of investment bankers, Wall Street players (including Ayuda Funding, which has loaned over $500 million to various companies in the past 10 years), and federal government grant and loan experts and writers.
The entire goal of the team is to get alternative energy companies the money they need to get their products developed and to the market. In fact, with Ayuda Funding part of the team, bridge financing is immediately available for alternative energy companies.
As I listened to them, I realized they were true D.C. "insiders." Sure, that term has its own negative connotations, but they know exactly who to talk to in order to get the job done. They know how to get that green stimulus money for alternative energy companies.
So needless to say, I knew I had to pass this along to you.
Bottom line: If you have a small alternative energy company — either public or private — and you're still finding it difficult to raise necessary capital or get credit lines from banks, contact Harbor Energy Capital at 703-224-8108; email ccgrillo@harborenergycapital.com.
We have the opportunity today to use capitalism as a catalyst for real change. We can make the world a cleaner, safer place for future generations. And we can also create a new generation of wealth in the process.
A new way of life, and a new generation of wealth. . .
It's not just some random catch phrase.
It's a reality.
Jeff
P.S. John is developing an algae plant on the island of Oahu in Hawaii. As you know, algae can be used as a feedstock for biodiesel. It grows faster than any other feedstock, can be used to capture carbon (it can "eat" carbon and use it to grow), and has a higher oil content than any other biodiesel feedstockIt's early in the game, but the potential is huge.
I was in Oahu in July. . . and that place is paradise. In the future I'm going to take a group of green investors to Oahu to check out the algae production. I'll let you know when I'm planning the trip. In the meantime, check out Harbor Energy Capital's website: www.harborenergycapital.com/
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