AAA MEMC powers up with Fotowatio assets

MEMC powers up with Fotowatio assets

New York-listed MEMC Electronic Materials has agreed to buy 42MW in American solar power production assets of Spain-based, corporate venture-backed Fotowatio Renewable Ventures.

MEMC and its solar energy subsidiary, SunEdison, will pay $134.9m, plus performance fees of up to $103.6m.

Carlos Domenech, president of SunEdison and executive vice-president of MEMC, said: "The addition of FRV US represents the potential to capture a leading position in the US utility market. An experienced, well-respected US utility development team will be joining our SunEdison business."

In March 2009, Fotowatio agreed to purchase the main American solar power assets – including the 
largest US solar photovoltaic installation, at Nellis Air Force base (pictured) – of US-based
 MMA Renewable Ventures, a wholly owned subsidiary of Municipal Mortgage & Equity.

Fotowatio’s shareholders 
include Qualitas Venture Capital (33.5%), New York-listed industrial conglomerate General Electric’s GE Energy Financial
 Services (32%), Grupo Corporativo Landon (17.5%) and the management team (17%). GE had invested $235m and Landon $118m for their stakes in Fotowatio in July 2008

General Electric has been increasing the pace of its corporate venturing dealmaking so far this year with 16 deals in the energy space, according to news provider Dow Jones Venturewire.

Kevin Skillern, head of GE’s energy ventures, which also manages the $300m Energy Technology Ventures fund, told Venturewire: "This year is shaping up to be our busiest in number of deals since the formation of our VC investing group."

Of the 16 deals, 10 were first-time investments in start-ups for GE, and the rest were follow-on investments, compared to its previous record was 11 during 2007 – a year after its corporate venturing programme was relaunched. GE closed its programme, Venturewire said, after a $167m loss in its GE Equity unit in a single quarter of 2002.

Alex Urquhart, president and CEO of GE Energy Financial Services, told Venturewire: "What we have learned from prior VC [venture capital] investing is that we should be prepared to hold energy technology investments through multiple stages of the business cycle and to focus on companies with sustainable business models generating revenues and profits, and in many cases with strategic value to GE."

As of the end of June, GE Energy Financial Services’ venture unit backed 35 companies, and four (A123 Systems, Codexis, Orion Energy Systems and China High Speed Transmission Equipment Group) have floated, according to Skillern to Venturewire.

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