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GREEN ENERGY

CONFIDENTIAL

GREEN ENERGY: Intelligence Report


OVERVIEW
GREEN ENERGY

Contents
Overview................................................................................................................................................................ 3
ENERGY EFFICIENCY......................................................................................................................................................... 3
HYDROELECTRIC POWER ................................................................................................................................................. 3
WIND ................................................................................................................................................................................... 3
GEOTHERMAL .................................................................................................................................................................... 4
SOLAR POWER ................................................................................................................................................................... 4
OCEAN ENERGY................................................................................................................................................................. 4
BIOMASS............................................................................................................................................................................. 4
BIOFUELS ........................................................................................................................................................................... 4
MARKET TRENDS FIRST HALF OF 2008 ............................................................................................................................ 5
Solar Energy.......................................................................................................................................................... 6
CHOPPY WATERS AHEAD FOR PV............................................................................................................................................. 6
SUNNY WEATHER .............................................................................................................................................................. 6
CONCENTRATING PV (CPV)............................................................................................................................................... 7
SOLAR THERMAL DEVELOPMENTS .................................................................................................................................. 7
STOCK MARKET ................................................................................................................................................................. 7
TRANSACTIONS ................................................................................................................................................................. 7
SELECTED SOLAR M&A TRANSACTIONS........................................................................................................................ 13
SELECTED PRIVATE PLACEMENTS................................................................................................................................. 15
Energy Efficiency ................................................................................................................................................ 17
TRANSPORTATION SECTOR............................................................................................................................................ 18
RESIDENTIAL AND COMMERCIAL BUILDINGS ................................................................................................................ 18
INDUSTRIAL SECTOR....................................................................................................................................................... 19
SUPPLY SIDE .................................................................................................................................................................... 19
DEMAND MANAGEMENT .................................................................................................................................................. 19
ESCOs ............................................................................................................................................................................... 20
MARKETS.......................................................................................................................................................................... 20
ANALYSIS OF ENERGY EFFICIENT COMPANIES ............................................................................................................ 21
ENERGY EFFICIENCY M&A TRANSACTIONS................................................................................................................... 23
PRIVATE PLACEMENTS OF ENERGY EFFICIENCY COMPANIES .................................................................................... 25
ANALYSIS OF SELECTED PUBLIC COMPANIES .............................................................................................................. 26
SELECTED M&A TRANSACTIONS .................................................................................................................................... 28
SELECTED WIND COMPANY M&A TRANSACTIONS ........................................................................................................ 34
PRIVATE PLACEMENT TRANSACTIONS .......................................................................................................................... 36
Conclusion...........................................................................................................................................................42

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OVERVIEW
GREEN ENERGY

Overview
The new 2007 numbers from the EIA are in with “business-as-usual” scenario, down 7.1% from an
revised projections through 2030, but the story is earlier projection of 7.4 billion MT. Worldwide,
essentially the same. The U.S. and the world have a energy-related CO2 emissions are projected to
long way to go in order to address the major increase from 28.1 billion MT in 2005 to 42.3 billion
challenges of the 21st century: climate change, MT in 2030 (see dark red line in the graph below).
energy security (geopolitical/market volatility), and The largest contributors to the projected growth in
sustainable development. The rollout of existing CO2 emissions are increases in coal-fired power
alternative energy and clean technologies as well as production and oil demand, particularly in Asia.
accelerated development and rapid deployment of Together with non-energy related CO2 –eq emissions
new technologies is essential to address these (deforestation, industrial production processes, etc.),
challenges. The bottom line is this: the more efficient total CO2-eq emissions are projected to reach 62
we are for each unit of output and the more we can giga (billion) tons (“Gt”) by 2030 (McKinsey June
tap abundant, renewable sources of energy; the less 2008). In its Climate Change Assessment 2007 the
our CO2-equivalent (“CO2-eq”) emissions; the less IPCC reports that in order to keep the likely increase
dependent we are on energy from unstable regions; in global mean temperature between 2.00C and
the less vulnerable we are to volatile fossil fuel 2.80C, CO2-eq concentration in the atmosphere must
prices; and the more sustainable growth we can be in the range of 445 and 535 ppmv (our carbon
achieve. balance sheet). The Stern review proposes an annual
target of 20 Gt of CO2-eq emissions (our carbon
Due to slower expected economic growth and the income statement) by 2050 to achieve 500 ppmv,
passage of EISA 2007 in the U.S., the EIA now which translates into a limit of approx. 14 Gt of
projects U.S. energy-related CO2 emissions by 2030 energy-related CO2 emissions.
to amount to 6.9 billion metric tons (“MT”) under a

ENERGY EFFICIENCY
Energy efficiency represents the lowest hanging fruit in solving the above-mentioned challenges. According to a
joint study by McKinsey and Vattenfall, energy efficiency savings can reduce CO2-eq emissions by over 4.7 Gt by
2030 at a negative cost (see page 7). In other words, these measures can be implemented profitably with extremely
short payback periods and high internal rates of return. Residential energy efficiency investments typically provide
annual returns of 10% or more, but commercial building and industrial upgrades can achieve rates of return of 30-
50% or more. A recent study by IEA concluded that if best practices were used in the industrial sector, CO2
emission reductions of 1.9 to 3.2 Gt are possible, and if all countries used best practices for fossil fuel production,
reductions of 1.8 to 2.5 Gt are possible. FERC estimates that existing demand response systems could reduce
electricity requirements by 37.5 GWe. Currently, waste heat from electricity generation and industrial processes is
simply vented. The DOE reports that available waste heat sources exceed the current production of all other U.S.
renewable power sources combined — 7 Quad BTU. According to the IEA, energy efficient buildings, industrial
processes and transportation could reduce the world's energy needs in 2050 by 33%, and become crucial in
controlling global greenhouse gas (“GHG”) emissions.

HYDROELECTRIC POWER
This is the world’s oldest and lowest-cost renewable energy source with a global installed base of approximately
850 GWe. According to the DOE, the U.S. has nameplate capacity of approx. 100 GWe, with the potential for an
additional 170 GWe. China has the largest installed base, with 145 GWe and the potential to increase to 500 GWe
or more.

WIND
According to the AWEA, total U.S. capacity for wind increased to 18 GWe in 2007. A report from the DOE stated
that the U.S. could provide 20% of its electricity (304 GWe) from wind by 2030, saving annual CO2 emissions of 825
million tons (“Mt”). Europe has an installed capacity of 57 GWe, of which 900 MWe is from offshore wind. TPWind
targets installed capacity of 300 GWe in Europe (50% offshore/50% onshore) with annual CO2 savings of 600 Mt.

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China has an installed base of 6 GWe with plans to increase it to 10 GWe by 2010. China is also exploring offshore
wind, which has an estimated potential of 750 GWe. Globally, there is an estimated installed capacity for wind
turbines of 95-100 GWe, and a potential for 72 TWe on land and near the coasts.

GEOTHERMAL
As of 2005, the installed capacity for geothermal electric power (excluding ground source heat pumps) was approx.
9 GWe worldwide, a third of which is currently operating in the U.S. In January 2008, GEA released survey results
which identified 103 projects in the U.S. for an annual capacity of 4 GWe. The Western Governor’s Task Force
projects 15 GWe of geothermal power by 2025. The U.S. Geological Survey estimates geothermal resources
between 95 and 150 GWe, of which 22 GWe has been identified suitable for geothermal power generation.
According to the IGEA, geothermal has a potential between 140 GWe and 6 TWe worldwide. Geothermal is also
being used for direct uses with an installed capacity of 15 GWth in the U.S. (Gupta and Roy 2007) and 100 GWth
worldwide. A 2006 report by MIT, concluded that through the use of enhanced geothermal systems (“EGS”) it
would be affordable to generate 100 GWe or more by 2050 in the U.S. alone. The MIT report calculated the world's
total extractable EGS resources to be over 200 ZJ (or 400 times the world’s current total energy demand), with the
potential to increase this to over 2,000 ZJ with technology improvements.

SOLAR POWER
Solar PV reached a global installed capacity of approx. 12 GWe in 2007. Annual production in 2007 was 3.9 GWe.
Photon International projects annual production capacity for PV of greater than 26 GWe by 2010. There is currently
an installed base of 430 MWe for CST and 12 MWe for CPV,but these technologies have significant growth
potential. There are currently 40 projects under construction or development. The Prometheus Institute and
Greentech Media forecast that CSP and CPV will make up 18 GWe of installed capacity by 2020. Rooftop solar
thermal collectors reached 128 GWth in 2007, led by China with over 85 GWth. The overall potential for solar
power is enormous. According to SolarPaces, there are 7 TWe of CSP capacity in the southwestern U.S. on
“filtered,” available land. Globally, the potential for solar power is 600 TWe.

OCEAN ENERGY
This includes tidal, wave, and thermal power. Currently, tidal power has an installed base of approx. 271 MWe with
157 GWe under consideration, and wave power has an installed base of 2 MWe with 350 MWe under
consideration. According to the Electric Power Institute, potential wave energy is approx. 30 GWe in the U.S. alone.
The global wave power potential in water depths over 100 meters has been estimated to be between 1 and 10
TWe. Ocean thermal power is still under development with less than 50 MWe currently under consideration, but
with the potential for 20 GWe+ in Asia/Pacific.

BIOMASS
Electricity produced from biomass sources is estimated to be 44 GWe with another 22O GWth used for heating,
excluding the use of biomass for cooking. The future potential for biomass could reach 150 to 400 EJ per year (up to
25% of world primary energy) by 2050, using available farm, forest and urban residues and by growing perennial
energy crops.

BIOFUELS
Production of ethanol exceeded 172 billion gallons of ethanol and 30 billion gallons of biodiesel in 2007, displacing
over 4.5 billion barrels of oil. As alternative feedstocks are developed for ethanol (cellulosic) and biodiesel
(jatropha, algae), the emissions reduction potential for biofuels will be greatly enhanced, according the World
Energy Council. Post-consumer waste is also a contributor to GHG emissions with total emissions of approx. 1.3
GtCO2-eq in 2005. The largest source is landfill methane (CH4), followed by wastewater CH4 and nitrous oxide
(N2O). In addition, minor emissions of carbon dioxide (CO2) result from incineration of waste containing fossil
carbon (plastics; synthetic textiles). Aided by Kyoto mechanisms, as well as other measures to increase worldwide
rates of landfill CH4 recovery, the total global economic mitigation potential for reducing landfill CH4 emissions in
2030 is estimated to be greater than 1.0 Gt CO2-eq. Most of this potential is achievable at low to negative costs:
20– 30% of projected emissions for 2030 can be reduced at negative cost and 30–50% at costs less than $20 per ton
of CO2-eq a year. Indeed, many brooks flow into a river. It will take many technologies flowing into solutions that

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GREEN ENERGY

“power” our future energy needs. The efforts of all nations on the planet will be required to overcome the barriers
that obstruct its flow, including: land use competition, market distortions and failures, regulatory issues,
environmental concerns, infrastructure requirements and initial investment costs. With these log jams removed,
the floodgates can be further opened to allow the market to achieve economies of scale, reduce the costs of these
alternative power sources, and create huge money making opportunities for investors.

MARKET TRENDS FIRST HALF OF 2008


According to New Energy Finance, clean-energy companies accounted for $8.4 billion in PE and VC investments in
1H2008, compared to $7.2 billion invested in 1H2007, an increase of 16.7%. According to Ernst & Young, U.S.-based
VC investments in Cleantech companies accounted for $916.7 million in Q2 2008, a 41% increase from Q1 2008.
E&Y reports this is the highest total Cleantech investment on record, while overall VC investments are down 8%.
However, renewable energy companies are finding it harder to raise money in the public markets. Only $1 billion
was raised in public offerings in Q1 2008, and $5.2 billion in Q2 2008. But, half of the 2Q2008 public offerings came
from one listing, Portugal’s EDP Renovaveis. The largest U.S.-based Cleantech IPO was American Water Works,
raising $1.7 billion.

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GREEN ENERGY

Solar Energy

In the near term, a light fog is descending on the solar industry with some choppy waters not far off in the distance.
But the medium– to long-term forecast remains sunny weather for the PV market.

CHOPPY WATERS AHEAD FOR PV


Rapid growth in the PV market, fueled by government incentive programs, decreasing costs, technological
advancements, and environmental concerns have led to demand for PV outstripping supply in recent years, which
increased prices and margins. This situation encouraged existing producers of silicon, cells and modules to increase
capacity and new producers to enter the market. Now so much capacity is expected to enter the market over the
next several years in every category (i.e. c-SI, a- SI, Cdtel, multi-junction combinations, CIGS and CPV) it appears
likely that supply will outstrip demand during 2009 and 2010. At the same time, Germany (47%) and Spain (23%),
which together accounted for 70% of worldwide PV demand in 2007, have reduced their feed-in tariff programs.

In 2009 Germany will begin to reduce its annual feed-in tariff rates for rooftop installations by 8- 9% and ground-
mounted systems by 10%, down from an annual decrease of 5%. While incentives for CSP are unchanged, Spain
recently announced cutting its subsidies for PV by 75% and capping annual subsidies at 300MWe (200MWe for
rooftop and 100MWe for ground-mounted systems). As a result, demand there is expected to decline significantly
from an expected 1.2 GWe in 2008.

In South Korea the feed-in tariff for major projects will fall by 30%. The U.S. Congress has not passed an extension
of the 30% federal ITC which expires on December 31, 2008 and will drop to 10% thereafter unless extended. The
30% ITC together with state incentive programs is an important component to financing solar projects in the U.S.
Despite the delay but driven by California’s RPS of 20%, PG&E announced a plan to purchase 800 MWe from plants
installed by Optisolar and SunPower.

Other countries with favourable feed-in tariffs are poised for rapid growth after addressing some the structural
obstacles which have held back more rapid growth in these markets (e.g. Italy and Greece). Japan is evaluating a
new subsidy program to encourage its producers to sell more modules domestically and return growth to that
market. Other markets with excellent growth prospects include Australia, France, Belgium, the Czech Republic, the
Netherlands, Portugal and the Middle East. Many analysts expect annual demand for PV to increase from 3.8 GWe
in 2008 to 8-10 GWe in 2010. Meanwhile, with the world’s 20 largest module producers announcing plans to
increase annual capacity by 500 MWe to 1 GWe per year, and many thin film companies (led by CIGS) entering the
market with large volumes, supply could reach 15 GWe to 26 GWe by 2010.

The Prometheus Institute projects 12 GWe. Photon Consulting projects 26 GWe of supply by 2010 supported by
demand with pricing approx. 20% below 2007 prices. Other analysts project price declines of 10-15% in 2009 and
2010. In any event, prices will likely decline and margins will be compressed. Well-positioned PV companies with
low-cost strategies, differentiated technologies and solid business models should be able to handle these choppy
waters. But some consolidation appears likely and some companies will be forced to drop-out out of the race.
There are over 160 cell producers and 300 module producers in the world. By comparison, the 13 largest wind
turbine manufacturers account for 96% of the market, according to Sun & Wind.

SUNNY WEATHER
However, there is a silver lining. Lower prices for PV modules will enable the industry to compete more effectively
with fossil fuels and enable it to reach grid parity more quickly. Regions will reach grid parity at different times due
to different insulation levels and local utility pricing. In many markets the increasing costs of fossil fuels will rise to
meet and eventually exceed the declining costs of PV. According to Deutsche Bank, grid parity could be reached in a
large number of markets with total installed system costs of $3.80/W ($0.10-$0.17/kWh). By comparison, power
from natural gas peaking plants can cost $0.15-$0.30/kWh and energy bought on the spot markets even more.
Once grid parity is reached the industry will no longer be dependent on the variability of government incentives

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GREEN ENERGY

and will likely experience rapid, perhaps even, explosive growth. Beyond 2010 the emergence of 3rd generation
solar (i.e. organic dyes and quantum dots) and advanced storage technologies will further enhance growth
prospects. A CleanEdge/Co-Op America study projects c-Si PV systems will drop from $7.00/W ($0.19-$0.32/kWh)
today to approx. $3.00/W ($0.08- $0.14/kWh) in 10 years from now. Thin film and bulk purchased c-Si PV is
projected to decline from $5.50/W ($0.08-$0.14/kWh) today to $3.00/W by 2015.

CONCENTRATING PV (CPV)
CPV is a very promising technology that is starting to get more traction in the marketplace. Compared to c-Si’s
theoretical maximum efficiencies of 27-31%, CPV has the potential to achieve efficiencies of 50%+. CPV uses
Fresnel lenses or parabolic dishes to concentrate the sun’s rays by 500-1,000x onto gallium arsenide (GaAs)
semiconductors or multi-junction cells. IBM recently announced development of a CPV cell which can withstand
2,600 x magnifications using special cooling technology for high power computer chips. Large CPV systems have the
potential for installed costs of $3.00/W.

SOLAR THERMAL DEVELOPMENTS


Led by Spain and the U.S., 7.5 GWe of CSP production capacity is expected to come on line by 2012. In August,
WorleyParsons announced that Australia could install 34 CSP power stations by 2020 and is currently studying
potential sites for its first 250 MWe power station there. Other markets with plans for CSP include: Algeria,
Morocco, Israel, China, South Africa and Egypt. In July, Iberdrola announced plans to build five 250 MWe CSP
plants. CleanEdge’s CSP calculations show average pricing of $3.50/W in 2007 ($0.18/kWh), declining to around
$1.00/ W in 2025 due to economies of scale in the production of components and installation of power plants.
Notable CSP power plant announcements in 2008 include eSolar’s 245MWe, Abengoa’s 280 MWe, Ausra’s 177
MWe, Solel’s 553 MWe, and BrightSource’s 400 MWe. China, with an installed base of 85 GWth, continues to lead
the global water heater/heating system (excl. Swimming pool) market which increased to 128 GWth in 2007.

STOCK MARKET
The index values for our universe of 99 solar companies declined from 205 at Jan. 2, 2008 to 179, 171, and 159 at
the end of 1Q2008, 2Q2008, and August 2008, respectively. In general, solar company share prices remain closer to
their 52 week low than their 52 week high levels. The market was influenced by a fluctuating dollar, changes in oil
prices (up, then down), reports of economic softening in many developed countries, uncertainty regarding feed-in
tariff reductions (Germany and Spain), which were cleared up by July, and an extension to the ITC in the U.S.

The median LTM Revenue multiples were 4.1x, 2.5x, 3.0x and 2.4x at Jan. 2, 2008, 1Q2008, 2Q2008 and Aug. 31,
2008, respectively. The median LTM EBITDA multiples were 13.9x, 12.9x, 13.2x and 11.7x at Jan. 2, 2008, 1Q2008,
2Q2008 and Aug. 31, 2008, respectively.

TRANSACTIONS
In 1H2008 there were 61 M&A transactions, which was 85% more than the number of M&A transactions in the
1H2007 and continued the annual trend. Notable transactions include: Applied Materials/Baccini ($329 m), First
Reserve/ Gamesa Solar ($396 m) and Robert Bosch/Ersol Solar ($1.8 bn). In 1H2008 researchers identified 58
private placement transactions for a total of $1.9 bn, which is fewer in number of transactions (72) but greater in
amount ($0.9 bn) than 1H2007.

Notable private placements in 1H2008 for thin film include Nanosolar ($300m), erSol Thin Film ($71 m) and Ascent
($39 m), CSP placements include eSolar ($140 m), BrightSources ($115 m), Sky- Fuel ($17 m), Stirling Engine ($100
m), and CPV placements include EMCORE ($100 m) and Cool Earth Solar ($21 m). In addition, Miasole (CIGS)
allegedly raised $200+ m in July and AVA Solar (Cdtel) raised $104 m in August 2008.

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GREEN ENERGY

Company TKR Stock Price Mkt. Cap TEV Rev EBITDA Rev EBITDA Rev EBITDA Capacity
Current High Low ($ in millions) LTM 2008 2009
Polysilicon
Hoku Scientific Inc HOKU $6.02 $14.88 $4.02 $122.80 $114.50 26.4x NM 32.4x NM 7.4x NM NA
MEMC Electronic Materials Inc WFR $49.09 $96.08 $41.58 $11,089.30 $9,767.50 4.8x 9.7x 4.3x 8.2x 3.4x 6.6x 8,000
Mitsubishi Materials Corp. TSE:5711 $3.62 $7.12 $3.37 $4,621.30 $10,517.80 0.7x 7.4x 0.7x 7.1x 0.7x 6.8x NA
Renewable Energy Corp ASA OB:REC $30.94 $56.28 $19.88 $15,293.90 $15,335.80 11.5x 26.8x 9.4x 22.3x 5.5x 11.2x 12,000
Solarvalue AG XTRA:SV7 $42.39 $127.17 $29.24 $44.50 $34.80 NM NM 1.6x NM 0.2x 0.8x NA
Timminco Ltd TSX:TIM $13.95 $33.41 $6.08 $1,452.20 $1,466.60 8.2x NM 5.5x 24.7x 2.3x 4.3x NA
Tokuyama Corp. TSE:4043 $6.90 $16.65 $5.50 $1,892.60 $2,126.20 0.7x 4.2x 0.7x 3.9x 0.7x 4.2x 5,600
Topsil Semiconductor Materials A/S CPSE:TPSL $0.28 $0.35 $0.18 $114.60 $103.80 2.2x 8.5x NA NA NA NA NA
Wacker XTRA:WCH $183.82 $292.38 $82.95 $9,131.70 $9,004.50 1.5x 5.7x 1.4x 5.0x 1.3x 4.7x 15,150
Polysilicon Median $13.95 $33.41 $6.08 $1,892.60 $2,126.20 3.5x 7.9x 2.9x 7.6x 1.8x 4.7x
Wafer
LDK Solar Co Ltd LDK $51.26 $76.75 $19.64 $5,458.10 $6,249.10 6.1x 23.9x 5.5x 22.8x 3.3x 9.7x 800
PV Crystalox Solar PLC LSE:PVCS $3.20 $3.63 $1.91 $1,332.20 $1,196.60 3.1x 8.8x 3.0x 8.1x 2.4x 6.1x 288
ReneSola Ltd AIM:SOLA $9.31 $13.69 $3.69 $1,281.40 $1,319.30 2.8x 14.0x 2.2x 11.2x 1.5x 7.0x 585
Sino-American Silicon Products GTSM:5483 $4.54 $10.85 $3.57 $903.60 $926.30 4.0x 11.7x 2.7x 9.3x 2.2x 7.4x 585
Solargiga Energy Holdings Ltd SEHK:757 $0.45 $0.91 $0.34 $758.10 $728.20 4.9x 16.3x 2.7x 8.8x 1.6x 4.8x NA
Sumco Corporation TSE:3436 $20.30 $58.44 $15.39 $5,163.70 $7,283.10 1.7x 3.8x 1.6x 3.7x 1.6x 3.9x NA
Wafer Median $6.92 $12.27 $3.63 $1,306.80 $1,257.90 3.6x 12.8x 2.7x 9.1x 1.9x 6.6x
Cells
China Solar Energy Holdings Ltd SEHK:155 $0.02 $0.08 $0.02 $75.60 $59.90 4.4x NM NA NA NA NA NA
China Sunergy Co Ltd. CSUN $11.39 $19.23 $5.28 $451.20 $450.70 1.8x NM 1.1x 47.5x 0.7x 12.0x 350
E-Ton Solar Tech Co Ltd. GTSM:3452 $8.97 $9.44 $4.35 $588.70 $878.40 3.9x 36.4x 2.2x 16.4x 1.4x 11.1x 320
Gintech Energy Corp. TSEC:3514 $7.65 $10.12 $4.37 $1,141.60 $1,265.40 5.9x NM 1.9x 10.8x 1.0x 6.7x 660
JA Solar Holdings Co. Ltd JASO $17.83 $27.00 $12.02 $2,993.40 $2,742.70 4.4x 25.9x 2.7x 16.0x 1.5x 9.8x 500

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Motech Industries Inc GTSM:6244 $5.69 $10.53 $4.42 $1,173.50 $1,107.30 1.8x 11.4x 1.4x 8.8x 1.1x 6.1x 580
Photovoltaic Solar Cells Inc PVSO $1.31 $2.50 $0.51 $6.50 $6.40 NM NM NA NA NA NA NA
Q-Cells AG XTRA:QCE $100.39 $150.35 $65.19 $11,177.30 $11,406.70 7.1x 28.3x 5.7x 22.6x 3.6x 15.2x 760
Solar Energy Systems Ltd OTCBB:SOEN $0.60 $1.77 $0.45 $67.10 $64.50 2.9x NM NA NA NA NA 50
Webel-Sl Energy Systems Ltd BSE:517498 $4.98 $19.17 $4.53 $38.50 $45.10 1.9x 11.2x NA NA NA NA NA
Cells Median $6.67 $10.33 $4.39 $520.00 $664.50 3.9x 25.9x 2.0x 16.2x 1.3x 10.4x
Module
Aleo Solar AG XTRA:AS1 $14.49 $25.44 $12.73 $188.80 $201.00 0.4x 5.9x 0.4x 4.9x 0.3x 4.2x 130
Ascent Solar Technology Inc ASTI $9.16 $28.35 $7.25 $168.80 $59.10 NM NM 29.8x NM 6.5x NM 80
Canadian Solar Inc CSIQ $32.42 $51.80 $7.08 $1,155.10 $1,231.90 2.0x 23.9x 1.4x 11.7x 0.8x 8.2x 245
Day4 Energy Inc TSX:DFE $4.68 $6.74 $2.76 $171.70 $160.40 3.7x NM 1.2x NM 0.5x 5.6x 90
ErSol Solar Energy AG XTRA:ES6 $148.09 $153.50 $56.71 $1,588.00 $1,717.00 5.2x 21.7x 3.5x 11.4x 2.6x 8.7x 40
Evergreen Solar Inc ESLR $9.43 $18.85 $7.52 $1,553.00 $1,574.20 18.3x NM 13.7x NM 3.7x 16.3x 90
GiraSolar Inc GRSR $0.04 $0.47 $0.03 $1.60 $3.10 0.2x NM NA NA NA NA NA
ICP Solar Technologies Inc ICPR $0.41 $3.14 $0.25 $14.00 $15.80 2.7x NM NA NA NA NA NA
Moser-Baer India Ltd BSE:517140 $2.30 $7.81 $1.99 $387.70 $745.70 1.7x 6.6x 1.0x 4.9x 1.2x 5.6x NA
PV Enterprise Sweden AB OM:PVE $4.76 $19.47 $4.48 $48.20 $56.80 1.7x NM NA NA NA NA 30
Solar-Fabrik AG XTRA:SFX $12.86 $26.77 $11.94 $150.30 $124.40 0.4x 23.0x 0.3x 5.7x 0.2x 3.4x 130
Solarfun Power Holdings Co Ltd. SOLF $15.81 $40.19 $8.95 $765.10 $1,069.40 1.7x 15.8x 1.4x 13.9x 1.0x 10.2x 360
Solaria Energia y Medio Ambiente SA CATS:SLR $6.55 $36.39 $6.15 $662.40 $523.90 1.9x 5.0x 0.5x 1.7x 0.4x 1.9x 250
Solon AG für Solartechnik XTRA:SOO1 $61.50 $138.07 $51.17 $771.20 $1,061.60 1.0x 11.9x 0.8x 9.2x 0.6x 6.9x 500
Suntech Power Holdings Co Ltd. STP $47.81 $90.00 $28.19 $7,383.70 $8,278.00 4.9x 30.9x 4.0x 23.8x 2.7x 14.0x 1,200
Trina Solar Ltd TSL $32.70 $68.26 $25.33 $835.70 $1,142.00 2.2x 13.7x 1.4x 9.0x 0.9x 5.5x 436
Module Median $11.15 $27.56 $7.39 $525.00 $634.80 1.9x 14.8x 1.4x 9.1x 0.9x 6.9x
Thin Film
DayStar Technologies Inc DSTI $3.45 $7.71 $2.35 $115.10 $67.50 NM NM NA NA 6.4x NA 90
Energy Conversion Devices Inc ENER $75.17 $83.33 $20.47 $3,432.70 $3,272.00 12.8x NM 13.1x NM 7.4x 34.3x 178

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GREEN ENERGY

First Solar Inc FSLR $276.65 $317.00 $93.69 $22,144.40 $21,644.60 26.3x NM 17.9x 47.9x 9.9x 25.0x 275
PowerFilm Inc AIM:PFLM $0.50 $7.47 $0.34 $18.00 $6.90 0.8x 3.3x 0.7x 0.8x 0.5x 1.4x 5
XSUNX Inc OTCBB:XSNX $0.34 $0.74 $0.29 $61.60 $57.10 NM NM NA NA NA NA NA
Thin Film Median $3.45 $7.71 $2.35 $115.10 $67.50 12.8x 3.3x 13.1x 24.4x 6.9x 25.0x
Integrated
Conergy AG XTRA:CGY $14.68 $102.20 $11.48 $515.00 $1,295.90 0.9x NM 0.8x NM 0.7x 10.2x 250
Kyocera Corp TSE:6971 $85.35 $103.48 $71.76 $16,180.00 $11,839.60 1.0x 5.3x 1.0x 5.5x 0.9x 5.6x 425
SolarWorld AG XTRA:SWV $52.09 $77.76 $32.38 $5,819.10 $5,579.60 4.7x 13.4x 4.0x 11.9x 2.9x 8.9x 259
SunPower Corp SPWR $97.55 $164.49 $53.18 $8,299.20 $8,497.40 7.6x NM 6.0x 31.1x 4.1x 18.8x NA
Sunways AG XTRA:SWW $9.58 $15.34 $8.63 $114.70 $130.70 0.4x 11.8x 0.3x 5.3x 0.3x 2.9x 116
Yingli Green Energy Holding Co. Ltd YGE $18.01 $41.50 $13.15 $2,285.90 $2,769.20 3.0x 14.5x 2.7x 13.3x 1.6x 7.9x 400
Integrated Median $35.05 $89.98 $22.77 $4,052.50 $4,174.40 2.0x 12.6x 1.8x 11.9x 1.2x 8.4x
CSP
Abengoa SA CATS:ABG $26.78 $48.17 $22.82 $2,422.90 $6,201.80 1.3x 9.8x 1.0x 7.8x 0.9x 6.8x NA
Acciona SA CATS:ANA $199.11 $364.01 $183.32 $12,653.30 $39,566.30 2.3x 11.7x 2.1x 9.4x 1.9x 8.7x 180
Endesa SA CATS:ELE $43.14 $58.62 $37.01 $45,674.70 $70,056.00 2.4x 6.9x 2.2x 6.3x 2.1x 6.0x NA
Enel SpA CM:ENEL $9.17 $12.29 $7.84 $56,743.60 $141,313.40 1.8x 7.6x 1.7x 6.7x 1.7x 6.5x NA
EnviroMission Ltd ASX:EVM $0.06 $0.13 $0.04 $6.30 $6.70 NM NM NA NA NA NA 200
FPL Group Inc FPL $60.06 $73.75 $57.00 $24,533.90 $38,769.90 2.5x 10.8x 2.4x 9.4x 2.3x 8.4x 148
Iberdrola SA CATS:IBE $12.05 $17.59 $11.04 $60,154.10 $90,672.40 2.7x 10.2x 2.6x 8.2x 2.4x 7.2x 3,500
Solar Millenium AG XTRA:S2M $38.40 $73.96 $31.34 $480.00 $499.90 11.2x 19.4x 4.0x 11.5x 1.5x 6.2x 50
Theolia ENXTPA:TEO $21.20 $36.44 $19.75 $819.20 $1,144.00 2.6x 25.1x 2.0x 11.6x 1.7x 8.3x NA
CSP Median $26.78 $48.17 $22.82 $12,653.30 $38,769.90 2.4x 10.5x 2.1x 8.8x 1.8x 7.0x
Equipment
3S Industries AG BRSE:SSS $20.80 $25.25 $13.26 $288.20 $281.90 12.0x NM 4.8x NM 4.7x 31.2x NA
Amtech Systems Inc ASYS $11.23 $17.74 $8.69 $102.10 $65.90 1.0x 16.4x 0.9x 15.7x 0.6x 5.3x NA
Applied Materials Inc AMAT $17.92 $21.99 $16.13 $24,042.50 $21,947.80 2.6x 10.8x 2.7x 12.2x 2.3x 9.3x NA

10
SOLAR ENERGY
GREEN ENERGY

Centrotherm photovoltaics AG DB:CTN $67.67 $111.10 $42.10 $1,082.70 $804.00 2.2x 18.3x 1.4x 10.2x 0.9x 5.8x NA
GT Solar International Inc SOLR $12.60 $17.00 $9.30 $1,794.10 $1,681.90 5.9x 25.6x NA NA NA NA NA
Manz Automation AG XTRA:M5Z $209.78 $307.04 $90.81 $939.80 $1,001.10 4.6x 32.8x 2.7x 19.4x 1.9x 12.2x NA
OC Oerlikon Corporation AG VIRTX:OERL $234.79 $611.72 $215.62 $3,074.40 $4,272.40 0.8x 7.1x 0.8x 6.0x 0.7x 5.2x NA
Open Energy Corporation OEGY $0.11 $0.67 $0.07 $14.10 $18.00 3.0x NM NA NA NA NA NA
Roth & Rau AG XTRA:R8R $51.53 $99.77 $36.47 $711.10 $531.20 1.9x 18.1x 1.3x 10.6x 1.0x 7.8x NA
Solar Thin Films Inc SLTN $0.81 $1.65 $0.72 $46.80 $49.70 15.3x NM NA NA NA NA NA
Spire Corp. SPIR $11.16 $26.78 $8.97 $93.00 $90.80 1.7x NM 1.1x 17.8x 0.7x 7.4x NA
Veeco Instruments Inc VECO $16.81 $20.50 $12.04 $540.70 $578.30 1.4x 18.4x 1.3x 14.9x 1.2x 8.2x
Equipment Median $17.37 $23.62 $12.65 $625.90 $554.70 2.4x 18.2x 1.3x 13.6x 1.0x 7.8x
Balance of System
Open Energy Corporation OEGY $0.11 $0.67 $0.07 $14.10 $18.00 3.0x NM NA NA NA NA NA
Sustainable Energy Technologies Ltd TSXV:STG $0.17 $0.62 $0.16 $20.70 $18.30 11.7x NM 5.2x NM 0.9x 4.3x 116
Xantrex Technologies Inc TSX:XTX $13.95 $13.96 $4.31 $421.90 $458.30 1.6x 18.8x 1.6x 16.3x 1.4x 12.2x NA
Balance of System Median $7.06 $7.29 $2.24 $221.30 $238.30 6.7x 18.8x 3.4x 16.3x 1.1x 8.2x
Installers
Akeena Solar Inc AKNS $4.21 $16.80 $3.60 $121.40 $113.80 3.0x NM 2.4x NM 1.7x NM NA
ARISE Technologies Corp TSX:APV $1.23 $3.09 $0.81 $154.90 $150.50 NM NM 2.5x NM 0.6x 24.5x NA
Centrosolar AG XTRA:C3O $12.37 $15.35 $8.49 $179.70 $255.00 0.6x 8.9x 0.5x 7.3x 0.4x 5.7x 250
Clear Skies Solar Inc CSKH $0.54 $2.40 $0.43 $17.00 $15.90 12.1x NM NA NA NA NA NA
Phönix Soalr AG XTRA:PS4 $73.61 $76.02 $26.71 $492.00 $501.30 1.0x 9.9x 0.9x 11.6x 0.6x 10.0x NA
COLEXON Energy AG DB:HRP $12.00 $29.18 $7.84 $61.40 $80.30 0.5x 20.0x 0.1x 1.1x NA NA NA
SAG Solar AG DB:SAG $3.51 $6.32 $2.37 $39.20 $35.70 0.7x NM 0.3x 6.8x 0.3x 4.3x NA
SES Soalr Inc SESI $0.47 $1.30 $0.23 $34.30 $39.70 NM NM NA NA NA NA 7
Solar Integrated Technologies AIM:SIT $1.31 $190.00 $1.13 $130.30 $142.20 1.8x NM 0.9x 16.0x 0.6x 5.7x 50
Solar Power Inc SOPW $1.50 $5.00 $0.95 $56.60 $53.20 1.8x NM 1.5x NM 0.9x NM 50
Solar² AG DB:S2R $0.47 $1.96 $0.17 $3.70 $2.10 0.2x NM NA NA NA NA 50

11
SOLAR ENERGY
GREEN ENERGY

Solarparc AG XTRA:SLX $9.43 $14.60 $8.64 $56.50 $92.70 2.4x 9.0x NA NA NA NA NA


Solartron Public Co Ltd SET:SOLAR $0.04 $0.10 $0.04 $12.90 $10.40 1.1x NM 0.4x 1.7x 0.2x 0.9x NA
Solco Ltd ASX:SOO $0.05 $0.10 $0.03 $9.30 $7.60 0.8x NM NA NA NA NA NA
SonnenEnergy Corp TSXV:PWR $0.07 $0.93 $0.07 $4.10 $17.30 3.0x NM NA NA NA NA 500
Installers Median $1.31 $5.00 $0.95 $56.50 $53.20 1.1x 9.4x 0.9x 7.0x 0.6x 5.7x
Solar Thermal
China Solar & Clean Energy Solutions CSOL $1.41 $4.50 $1.05 $22.00 $13.60 0.3x 2.3x NA NA NA NA NA
HLT Energies Inc TSXV:HES $0.05 $0.19 $0.02 $1.40 $1.70 9.8x NM NA NA NA NA NA
Solar Thermal Median $0.73 $2.34 $0.53 $11.70 $7.70 5.1x 2.3x NM NM NM NM
CPV
EMCORE Corp EMKR $6.19 $15.90 $3.90 $480.90 $462.70 2.1x NM 1.6x NM 1.0x 14.9x NA
Opel International Inc TSXV:OPL $0.51 $2.32 $0.34 $27.80 $4.80 8.4x NM NA NA NA NA NA
CPV Median $3.35 $9.11 $2.12 $254.30 $233.70 5.2x NM 1.6x NM 1.0x 14.9x
Other
BioSolar Inc BSRC $0.34 $1.58 $0.25 $45.10 $44.50 NM NM NA NA NA NA 2
Dyesol Limited ASX:DYE $0.84 $1.59 $0.68 $90.70 $72.10 38.9x NM NA NA NA NA 25
Solar Applied Material Technologies GTSM:1785 $3.13 $4.25 $1.67 $478.40 $617.80 1.0x 8.0x 1.0x 8.2x NA NA 110
Sunovia Energy Technologies Inc SUNV $0.71 $9.00 $0.18 $340.00 $337.40 NM NM NA NA NA NA NA
WorldWater & Solar Technology Corp WWAT $0.44 $2.36 $0.43 $103.30 $95.40 3.0x NM NA NA NA NA NA
Other Median $0.71 $2.36 $0.43 $103.30 $95.40 3.0x 3.0x 8.0x 1.0x 8.2x NM
Solar Median $9.31 $17.00 $6.08 $478.40 $499.90 2.4x 11.7x 1.6x 9.4x 1.3x 7.0x

12
SOLAR ENERGY
GREEN ENERGY

SELECTED SOLAR M&A TRANSACTIONS

Closed Acquirer Target Value Revenue EBITDA Target Description


5/28/2008 3S Industries AG Somont GmbH $109.4 NA NA Develops and produces automated soldering systems for PV modules
1/31/2008 Applied Materials Inc. Baccini S.p.a $329.3 4.2x NA Designs microelectronics cells used in hybrid, solar cell, and TFT technologies
3/30/2008 Atlantic SFDT Hamworthy . $69.7 1.8x NA Manufactures products including solar collectors and energy controls
Heating Ltd
1/14/2008 Borevind AB Gällivare $38.8 0.5x NA Provides solar energy equipment
Photovoltaik AB
6/16/2008 Energymixx AG HelioDynamics Ltd . $10.2 NA NA Manufactures solar energy products for commercial, industrial, and public sectors
4/28/2008 First Reserve Gamesa Solar, $396.3 1.3x 10.4x Engages in the development, construction, and sale of solar photovoltaic plants in Spain
Corporation S.A.
5/30/2008 Fujichem, Inc. Red Spot Paint & $63.2 0.8x NA Develops coatings for non-automotive applications, such as solar panels
Varnish Co., Inc.
3/3/2008 Globe Specialty Metals, Solsil, Inc. $91.4 NA NA Manufactures silicon for use in silicon based solar cells in the United States
Inc.
4/7/2008 Grontmij NV Roger Preston & . $25.8 1.1x NA Provides services for solar energy, thermal performance, and wind analysis and energy
Partners Ltd
1/16/2008 Grupo Inland, Sasor Grupo Abasol $36.6 0.8x NA Designs and installs photovoltaic and thermal solar energy systems
Capital
5/19/2008 KLA-Tencor Corp. ICOS Vision $510.1 4.4x 41.4x Produces equipment for semiconductor packaging and interconnect applications for
Systems Corp. NV semiconductors, wafers, solar cells, substrates, and sockets
4/15/2008 Meinl International . Solon AG, Solar $137.5 NA NA Engages in the production of electricity and are located in Spain
Power Ltd Power Plants
4/11/2008 Nice USA, Inc. Apollo Gate $13.0 1.2x NA Offers a line of solar powered operators
Operators, Inc.
Announced NTR PLC (51%) Stirling Energy $196.1 NA NA Developing two large solar generating projects in the Imperial Valley and Mojave Desert
Systems
4/2/2008 Plaintree Systems Inc. Triodetic Building $10.9 NA NA Designs, manufactures, and builds architectural building roofs, walls, and entrances
Products Ltd.
2/28/2008 Renewagy A/S Three Solar Energy $71.2 NA NA Generates electricity from solar energy in Bavaria state of Germany
Parks in Germany
Announced RENOVA Group of OC Oerlikon $5,366.6 1.0x 9.6x Develops and supplies production systems and services for IT and industrial markets

13
SOLAR ENERGY
GREEN ENERGY

Companies Corporation AG
Announced Robert Bosch GMBH ErSol Solar Energy $1,793.2 6.0x 28.4x Engages in the development, production, and sale of silicon-based photovoltaic products
AG
Announced Services Industriels de Photovoltaic $5.5 NA NA Operates as a photovoltaic power station
Geneve SES Solar Inc., Power Station
2/7/2008 Strainstall Group Ltd. JCM Scotload $5.8 NA NA Offers tensile load cells, such as cabled cells, telemetry load cells, and solar load cells
Limited
6/12/2008 Suntech Power MSK Corporation $140.9 NA NA Designs, manufactures, and sells photovoltaic modules and systems
Holdings Co. Ltd.
5/22/2008 Veeco Instruments Inc. Mill Lane $11.0 NA NA Manufactures web coating systems for flexible solar panels
Engineering Co.,
Inc.
1/28/2008 WorldWater & Solar ENTECH, Inc. $16.4 NA NA Manufactures concentrating photovoltaic solar systems
Technologies Corp

14
SOLAR ENERGY
GREEN ENERGY

SELECTED PRIVATE PLACEMENTS


Date Issuer Investors Deal Target Description
Value
3/27/2008 1366 Technologies, Inc. North Bridge Venture Partners $12.4 Manufactures solar cells
& others
3/31/2008 6N Silicon Inc. Ventures West Management $20.0 Engages in the development and commercialization of a process for purifying
Inc. & others metallurgical grade silicon into solar grade silicon using a metallurgical processing
3/27/2008 Ascent Solar Technologies Norsk Hydro Produksjon As $38.9 Commercializes certain photovoltaic (PV) technology developed by ITN Energy
Inc.(NasdaqGM:ASTI) Systems, Inc.
5/13/2008 BrightSource Energy, Inc. Draper Fisher Jurvetson & $115.0 Designs and builds solar plants
others
4/17/2008 Capital Energy, S.A. Pontegadea Participaciones, $170.3 Promotes, develops, and operates offshore wind farms, photovoltaic solar energy,
S.C.R., S.A., Iberian Renewable onshore wind farms,self-consume and distributed wind farms, desalting plants, and
Energies biomass plants
5/15/2008 Centrosolar AG (XTRA:C3O) Private Investor Group $16.5 Produces and sells photovoltaic systems for private houses and industrial properties,
as well asprimary components, such as solar glass and solar mounting systems
Announced Cool Earth Solar, Inc. Private Investor Group $21.0 Develops photovoltaic concentration technology
2/20/2008 EMCORE Corp. Gruber & McBaine Capital $100.0 Provides compound semiconductor-based components and subsystems for the
(NasdaqGM:EMKR) Management, LLC &others broadband, fiber optic,satellite, and terrestrial solar power markets
1/29/2008 Enphase Energy, Inc. Third Point LLC $6.5 Provides micro-inverter based solar energy management systems for residential and
commercial markets
2/4/2008 erSol Thin Film GmbH VENTIZZ Capital Partners AG $71.2 Produces and markets photovoltaic products
4/21/2008* eSolar, Inc. Google Inc. (NasdaqGS:GOOG) $140.0 Builds solar thermal power projects for utilities and renewable resource owner-
& others operators
1/23/2008 Fat Spaniel Technologies, Inc. Ignition Partners & others $18.0 Provides critical monitoring and reporting services for the renewable energy industry
in the U.S. and Canada
6/9/2008 G24 Innovations Limited Morgan Stanley Principal $20.0 Manufactures, and distributes solar modules in the United Kingdom and
Investments, Inc. internationally
2/29/2008 Hoku Scientific, Inc. Heights Capital Management, $25.0 Manufactures polysilicon, which is used in photovoltaic (PV) modules; and design,
(NasdaqGM:HOKU) Inc. & others engineering, and installation of turnkey PV systems and related services
4/1/2008 NanoSolar, Inc. EDF & Others $300.0 Engages in the development, manufacture, and distribution of solar electricity panels
3/5/2008 NorSun AS Norsk Hydro ASA (OB:NHY) & $155.8 Produces mono crystalline silicone wafers for solar energy market
others

15
SOLAR ENERGY
GREEN ENERGY

2/1/2008 Odersun AG AGF Private Equity & others $59.4 Produces solar cells, modules, and applications that convert sunlight into electricity
4/8/2008 OptiSolar, Inc. Kensington Capital Partners $3.0 Manufactures photovoltaic modules and systems and operates solar farms
Limited
4/2/2008 Phönix Solar AG (XTRA:PS4) Private Investor Group $32.5 Operates as a photovoltaic systems integrator
4/16/2008 Siliken, S.L Grupo Zriser $55.8 Produces photovoltaic solar modules and manufacturing equipment for new solar
modules manufacturing plants
4/28/2008 SkyFuel, Inc. Leaf Clean Energy Company $17.0 Designs, develops, and delivers thermal concentrating solar power (CSP) systems
(AIM:LEAF)
1/11/2008 Solar Enertech Corp. The Quercus Trust $21.4 Operates as a photovoltaic (PV) solar energy cell manufacturing company
(OTCBB:SOEN)
5/21/2008 SOPOGY, Inc. Private Investor Group NA Invents, manufactures, and sells solar energy systems
3/2008 Space Energy Corporation Nippon Oil Corp. (TSE:5001) $38.4 Manufactures solar wafers for the photovoltaic industry
Announced SpectraWatt Inc. Intel Capital & others $50.0 Manufactures and markets photovoltaic cells
4/17/2008 Stirling Energy Systems, Inc. NTR plc $100.0 Manufactures and markets solar power generation equipment for power plants
5/23/2008 Sun Edison LLC Greylock Partners & others $131.0 Owns and operates solar power plants in North America
6/24/2008 Sun Run Generation, LLC Foundation Capital $12.0 Engages in the generation and distribution of solar energy
4/30/2008 Sunovia Energy Technologies, Private Investor Group $12.0 Engages in engineering, developing, marketing, and distributing solar powered
Inc(OTCBB:SUNV) substrate technology in the United States
4/2/2008 Tenesol Total SA (ENXTPA:FP) & others $21.9 Engages in the design and manufacture of photovoltaic solar modules and special
components
6/3/2008 Tigo Energy Inc. Matrix Partners, OVP Venture $6.0 Develops and markets hardware, software, and Web based applications to the solar
Partners energy sector
6/16/2008 Unidym, Inc. Battelle Memorial Institute & $14.1 Holds licensed commercial rights to nanotube technology applied in flat panel
others displays, touch screens, light emitting diodes, and solar cells
2/12/2008 WorldWater & Solar The Quercus Trust $35.6 Operates as a solar engineering and project management company in the United
Technologies States and internationally
Corp(OTCBB:WWAT)
4/25/2008 Xunlight Corporation NGP Energy Capital $22.0 Engages in the development, manufacture, and marketing of photovoltaic modules
Management & others that convert sunlight into electricity

16
ENERGY EFFICIENCY
GREEN ENERGY

Energy Efficiency

Energy Efficiency is a means of using less energy to provide the same (or greater) level of energy services. Increased
energy efficiency can allow people to drive the same distance with less gasoline or watch the same amount of TV
using fewer kWhs of electricity. Unlike oil and coal resources, efficiency powers economic growth by reducing the
energy demand associated with each unit of output. Efficiency gains can often be found within new technologies
and systems, including more efficient lighting and heating equipment; high-quality cooking appliances and
electronics; fuel-efficient cars and trucks; manufacturing equipment; and well-designed building structures and
manufacturing systems. Amory Lovins, founder of the Rocky Mountain Institute and one of the world’s most
respected efficiency experts, coined the term “negawatt”.

A negawatt is a unit of conserved electricity, i.e. a megawatt that a power plant never has to generate because the
demand for it has been eliminated by improved building design, energy-saving light bulbs, more efficient
appliances, more efficient use of the electrical grid, or hundreds of other efficiency measures. According to Lovins,
"there are abundant opportunities to save 70% to 90% of the energy and cost for lighting, fan, and pump systems;
50% for electric motors; and 60% in areas such as heating, cooling, office equipment, and appliances." In general,
up to 75% of the electricity used in the U.S. today could be saved with efficiency measures that cost less than the
electricity itself.

McKinsey recently completed a study that evaluates the costs associated with a global CO2 abatement of 27 Gt per
year (see graph below). The study suggests that energy efficiency savings “using technologies that are either
available or visible today” could account for 4.7 Gt of CO2 abatement a year by 2030, and could potentially offset
20-24% of the projected incremental demand for electricity by 2020. McKinsey determined that almost 40% of
abatement could be achieved at a “negative” marginal cost, meaning that investing in these options would
generate significant economic returns. Residential energy efficiency investments typically provide an annual return
of 10% or more, but commercial building and industrial upgrades can achieve rates of return of 30-50% or more.
According to the IEA, transportation, energy efficient buildings, and industrial processes could reduce the world's
energy needs in 2050 by 33%.

17
ENERGY EFFICIENCY
GREEN ENERGY

TRANSPORTATION SECTOR
The transportation sector relies heavily on petroleum, which supplies 95% of the total energy used. In 2004, the
transportation sector produced 6.3 Gt CO2 emissions (23% of global energy-related CO2 emissions) and its growth
rate is highest among the end use sectors. Road transportation currently accounts for 74% of total transportation
CO2 emissions and also contributes small amounts of other GHGs, including F-gases which amount to 5–10% of
total transportation CO2 emissions. According to the IPCC, material substitution and advanced design could reduce
the weight of light-duty vehicles by 20–30%. Reductions in drag coefficients for heavy intercity trucks could reduce
fuel use by 10–20%. Road vehicle efficiency could be improved by 5–20% through improved maintenance (e.g. tires
(3%) and air filter replacement (10%)), in-vehicle technological aids, more efficient replacement tires, reduced
idling, better traffic management and improved route choice.

Hybrid, plug-in hybrid and electric vehicles will play an important role in improving vehicle efficiency in the medium
term. Electric motors with efficiencies of more than 90% together with renewable energy generation can make a
significant contribution to GHG abatement efforts. However, significant market penetration will require
advancements in battery technologies and vehicle design. Technical and operational-related studies conclude that
energy efficiency opportunities of up to 40% are possible for rail transportation. A 20% improvement over 1997
aircraft efficiency is likely by 2015 and a 40-50% improvement is possible by 2050.

RESIDENTIAL AND COMMERCIAL BUILDINGS


Greener World Media reports that since 1980 office space increased by 50%, but overall building energy use rose
by an even greater amount, 70%. A recent study from the United Nations found that up to 40% of GHG emissions
can be attributed to buildings. According to the IPCC, CO2 emissions from buildings is expected to increase from
8.6Gt CO2 in 2005 to 15.6 in 2030.

An IPCC survey of the 80 studies finds that there is a global potential to cost effectively reduce approx. 29% of the
projected emissions by 2020 in the residential and commercial sectors. There is already a wide array of accessible
and cost effective technologies and know-how, which can significantly reduce CO2-eq emissions from buildings,
including passive solar design, high efficiency lighting and appliances, building controls, highly efficient HVAC
systems, solar water heaters, combined heat and power, insulation materials and techniques, high-reflectivity
building materials and multiple glazing. In the commercial buildings sector of the economy, lighting represents 30-
50% of the total energy load. With efficient lighting, using existing technologies, reductions in energy usage greater
than 50% are possible. High-efficiency appliances and equipment in homes and commercial buildings can reduce
energy usage by 50% or more.

According to the DOE, optimizing compressed air systems by installing variable speed drives, along with preventive
maintenance to detect and fix air leaks, can improve energy efficiency by 20-50%. Tight building design, including
energy-efficient windows, well-sealed doors, and additional thermal insulation of walls, basement slabs, and
foundations can reduce heat loss by 25-50%. Overall, energy consumption in commercial buildings can be reduced
by 20-30% and new buildings by 50% or more.

The largest savings in energy use occur for new buildings, through designing and operating buildings as complete
systems. In 2000, the U.S. Green Building Council launched the LEED rating system, a certification process for
building projects that evaluates their energy and resource efficiency together with other criteria such as design
innovation. By the end of 2007, there were 2.3 billion square feet of office and commercial space registered or
certified under LEED, a 5x increase from 2005. In its report “State of green business 2008”, Greener World Media
estimates that LEED certified commercial projects could reach 100,000 by the end of 2010 (up from approx. 1,100
today).

18
ENERGY EFFICIENCY
GREEN ENERGY

INDUSTRIAL SECTOR
Total global industrial sector emissions are currently estimated to be about 12 Gt CO2-eq per year. According to a
2006 IEA report, “the energy intensity of most industrial processes is at least 50% higher than the theoretical
minimum determined by the laws of thermodynamics.” Many processes have very low energy efficiency and
average energy usage is much higher than it would be if the best available technologies were utilized.
Manufacturing process controls use advanced sensors, automatic control systems, software assessment tools, and
wireless sensor networks to manage energy, production inputs, chemical processes, and waste reduction more
effectively (Ondrey 2004).

A recent study by IEA concluded that if best practices were used, the industrial sector could reduce CO2 emissions
by 1.9 to 3.2 Gt, the largest savings coming from iron and steel, concrete and petrochemicals. Improved general
maintenance on older, less-efficient plants can yield energy savings of 10–20%. Relatively small capex measures,
including use of exhaust gases, use of correctly sized, high-efficiency electric motors and installation of insulation,
demonstrate energy savings of 20–30%. Higher capex measures, including improved design features for
optimization of piping sizing, use of variable speed drive motors, and automatic load control systems, can result in
energy savings of 40–50% (UNIDO, 2001, Bakaya- Kyahurwa, 2004). Electric motor driven systems provide a large
potential for improvement of industry-wide energy efficiency.

Typical estimates indicate that about 20% of compressed air is lost through leakage. A study by Martin et al. (2000)
estimated the potential fuel savings from process integration in U.S. industry to be 10% above the gain for
conventional heat recovery systems. Materials efficiency refers to the reduction of energy usage by the optimal
choice of materials and recycling. For example, recycling steel in electric arc furnaces typically uses 60–70% less
energy. According to a recent article in BusinessWeek, recycled plastic requires 80% less energy to produce;
recycled aluminum consumes 95% less energy; recycled iron and steel use 74% less; and paper requires 64% less
energy.

SUPPLY SIDE
According the EIA, the current mix of electricity production in the U.S. is only 35% efficient at converting the energy
contained in the fuels into usable electricity. Approx. 3% is lost in transmitting the power from the power plant to
its point of use and another 2% is used by the power plants themselves. In total, only 30% of the energy contained
in our fuels makes it to the end user. This means that every BTU of power saved through energy efficiency requires
3.33 fewer BTUs of fuel for producing this power.

According to the IEA, the global average of electricity production is 34% for coal, 40% for natural gas and 37% for
oil. Additional fuel efficiency gains can be achieved through high efficiency Combined Heat and Power (“CHP”)
systems and converting waste heat to electricity. CHP (or Cogeneration) involves using energy losses in power
production to generate heat for industrial processes and district heating, providing significantly higher system
efficiencies. The IEA recently concluded that if all countries used best practices for fossil fuel production, reductions
of 1.8 to 2.5 Gt are possible.

DEMAND MANAGEMENT
The IEA estimates that additional infrastructure of 758 GWe and capital expenditures of $1.6 trillion will be
required in the U.S. and Canada between 2003 and 2030. Building new electricity generation plants including
peaking power plants is becoming increasingly more expensive due to material, labor, and engineering costs.
Obtaining permits for new baseload power plants (especially coal and nuclear fuelled plants) is also becoming
increasingly more difficult due to environmental awareness and NIMBY resistance.

A 2006 FERC report on Advanced Metering and Demand Response stated that there was 37.5 GWe of demand
management potential in the U.S. Demand management refers to programs that reduce and shift customer
electricity demand during peak electricity demand, i.e. periods of high electricity prices, or events such as grid
congestion or outages requiring grid stabilization. By dimming lights, resetting air conditioning settings or shutting
down production lines, less power is pulled from the grid. Alternatively, program participants can generate

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ENERGY EFFICIENCY
GREEN ENERGY

electricity with onsite distributed generation by means of a back-up generator or onsite cogeneration. New
technologies such as smart metering devices, energy management software, control devices, and the Internet have
allowed for new and improved demand management applications. Advanced Metering Instrument (“AMI”) systems
are smart metering networks that enable a utility and its customers to communicate in real time with one another,
ultimately reducing operational costs and enabling energy management programs that improve efficiency. Real
time meter readings can also change customer behaviour and lead to more efficient energy consumption. Demand
management is a clean energy resource solution that can displace older, inefficient power plants and eliminate the
need for new peaking power plants. Demand management defers new generation, transmission and distribution
development, resulting in reduced emissions and land use benefits; prevents centralized peaking power plants
running on idle for thousands of hours per year; and creates a more intelligent electric power grid. The market
drivers for a smart grid and AMI solutions will be driven by mounting regulatory support (decoupling utilities’ profit
from the amount of electricity they sell), improving economics (increasing energy costs) and more advanced
applications and services. A utility can benefit from lower operating costs, improved distribution planning, demand
management applications and better outage management, while consumers benefit from being able to react to
price signals - ultimately reducing their electricity bills.

ESCOs
According to an LBNL survey, ESCO (Energy Service Companies) industry revenues from energy services alone were
around $3.6 billion in 2006 and are projected to grow to over $5.2 billion in 2008. ESCOs typically operate in the
municipal and state governments, universities and colleges, schools and hospital markets or “MUSH” (58%), federal
government (22%),commercial (9%), industrial (6%), residential (3%) and public housing (2%). Within the
commercial and industrial markets, ESCOs tend to focus on larger projects which are sizable enough to offset the
transaction costs of putting together performance contracts, which requires a strong balance sheet. Other types of
energy service providers include lighting and HVAC contractors, engineering firms, architects and consultants, and
are currently more active in residential and commercial markets. These providers tend to work on a design/build
basis, are compensated directly through allocated funding, and assume no ongoing performance risk.

MARKETS
CleanEdge estimates U.S. VC investments in energy efficiency were $476 million in 2006 and $274 million in 2005.
The largest investments in efficiency were made in capital-intensive power line communications deals. Advanced
metering initiatives and opportunities for high-speed data communications over the electric grid have resulted in
significant investments. Because of its ability to be applied towards many diverse end-use markets, efficiency offers
immense possibilities for startup and expansion of growth companies comprising the next generation of efficiency
technologies. ACEEE’s emerging technologies reports highlight dozens of attractive possibilities - solid-state and
other advanced lighting technologies have attracted substantial VC, while low-energy materials manufacturing
processes, HVAC technology, advanced energy storage technologies, advanced controls, communication, and
sensing technologies provide additional examples of profitable emerging technologies waiting to be taken to
market. An estimated $300 billion was invested in energy efficiency technologies and infrastructure in the U.S.
during 2004. The premium (or difference in the investment costs associated with efficient versus inefficient goods
and services) associated with improvements in energy efficiency technologies is valued at approximately $43
billion. By the end of 2008, these investments are projected to have saved approx. 6.6 Quad BTUs of energy on a
cumulative basis, or the equivalent of at least $77.4 billion.

20
ENERGY EFFICIENCY
GREEN ENERGY

ANALYSIS OF ENERGY EFFICIENT COMPANIES


Company TKR Stock Price Mkt TEV LTM FY2008E FY2009E
Cap.
Current High Low ($ in millions) Rev EBITDA Rev EBITDA Rev EBITDA
Advanced Lighting
Carmanah Technologies Corp. TSX:CMH $1.00 $1.62 $0.73 $42.3 $37.2 0.7x NM 0.6x 17.6x 0.6x 7.7x
CCS Inc. (Kyoto) JASDAQ:6669 $2,311.82 $3,144.07 $1,618.27 $47.2 $46.3 1.0x 5.9x NA NA NA NA
Cree Inc. CREE $23.31 $35.50 $17.10 $1,741.1 3.5x 15.5x 3.6x 18.5x 3.0x 13.8x
$2,053.6
Dialight PLC LSE:DIA $3.08 $3.47 $2.02 $95.9 $89.8 0.7x 6.8x 0.6x 7.2x 0.6x 5.5x
Energy Focus, Inc EFOI $2.47 $9.95 $1.45 $36.6 $26.4 1.1x NM 1.6x NA 4.2x NA
Koha Co. Ltd. JASDAQ:6876 $7.11 $11.54 $5.49 $47.6 $32.2 0.4x 6.3x 0.3x NA 0.3x NA
MicroEmissive Displays Group plc AIM:MED $0.04 $1.06 $0.04 $2.4 - $7.6 NM 0.7x NA NA NA NA
Nexxus Lighting, Inc. NEXS $8.65 $9.60 $4.10 $70.0 $69.9 5.8x NM NA NA NA NA
Universal Display Corp. PANL $14.18 $23.35 $10.73 $509.8 $430.0 39.7x NM 27.9x NM 17.3x NA
Advanced Lighting Median $7.11 $9.95 $4.10 $47.6 $46.3 1.0x 6.3x 1.1x 17.6x 1.8x 7.7x
Energy Solutions / Services
AEA Technology plc LSE:AAT $0.79 $2.28 $0.70 $181.3 $216.2 1.5x 9.9x 1.3x 8.8x 1.0x 7.0x
Eaga Plc LSE:EAGA $2.80 $3.91 $1.63 $701.8 $671.8 0.6x NM 0.6x 8.1x 0.5x 7.0x
Echelon Corporation ELON $13.01 $31.84 $9.91 $530.3 $452.1 3.2x NM 3.1x NM 2.2x NM
eMagin Corp. EMAN $0.70 $1.75 $0.52 $10.1 $17.1 1.0x NM NA NA NA NA
Lime Energy LIME $6.50 $15.75 $5.55 $56.5 $72.3 3.2x NM NA NA NA NA
National Energy Services Co Inc NEGS $0.09 $0.30 $0.06 $2.7 $4.0 1.7x NM NA NA NA NA
Onsite Energy Corp. ONSE $0.08 $0.12 $0.04 $2.4 $0.0 NM NM NA NA NA NA
Orion Energy Systems, Inc OESX $ 6.00 $22.46 $4.48 $162.1 $88.0 1.1x 12.7x 1.1x NA 0.9x NA
Servidyne, Inc. SERV $4.24 $6.42 $3.70 $15.9 $27.8 1.4x NM NA NA NA NA
The First Energy Service Co. Ltd. TSE:9514 $175.51 $867.39 $140.56 $15.6 $117.7 0.9x 7.8x NA NA NA NA
TRC Companies Inc. TRR $3.53 $12.71 $3.21 $66.4 $110.6 0.4x 16.7x NA NA NA NA
Energy Solutions Median $3.53 $6.42 $3.21 $56.5 $88.0 1.3x 11.3x 1.2x 8.5x 1.0x 7.0x
Demand Management / Grid
Solutions
Ambient Corporation ABTG $0.03 $0.07 $0.02 $7.6 $8.1 7.1x NM NA NA NA NA
Composite Technology Corporation CPTC $1.08 $2.16 $0.70 $310.5 $271.4 3.8x NM 3.0x NM 1.2x NM

21
ENERGY EFFICIENCY
GREEN ENERGY

Comverge, Inc. COMV $6.58 $38.78 $4.92 $143.9 $117.3 1.8x NM 1.2x NM 0.8x 7.6x
Echelon Corporation ELON $13.01 $31.84 $9.91 $530.3 $452.1 3.2x NM 3.1x NM 2.2x NM
EnerNOC, Inc. ENOC $15.42 $50.50 $9.26 $309.0 $247.6 3.1x NM 2.4x NM 1.3x NM
ESCO Technologies Inc. ESE $47.61 $52.11 $30.36 $1,239.6 $1,447.2 2.2x 14.4x 2.3x 12.2x 2.1x 10.8x
Itron Inc. ITRI $103.58 $112.92 $70.48 $3,553.5 $4,672.9 2.5x 15.9x 2.4x 16.1x 2.2x 14.0x
PowerSecure International, Inc. POWR $8.08 $14.88 $5.65 $137.5 $129.8 0.9x 10.3x 1.0x 13.4x 1.1x 0.0x
Qonnectis plc AIM:QTI $0.02 $0.06 $0.01 $3.8 $3.8 4.8x NM NA NA NA NA
Techem AG XTRA:TNH $89.17 $96.34 $63.59 $2,099.0 $2,709.5 3.1x 13.3x 3.0x 9.7x 2.8x 9.3x
Median $10.55 $35.31 $7.46 $309.8 $259.5 3.1x 13.9x 2.4x 12.8x 1.7x 9.3x
Insulation
A&A Material Corporation TSE:5391 $0.93 $1.54 $0.75 $72.5 $231.1 0.4x 7.5x NA NA NA NA
Cool or Cosy Ltd. ASX:COS $0.05 $0.12 $0.04 $2.8 $3.6 0.2x NM NA NA NA NA
Entrx Corp. ENTX $0.26 $0.51 $0.16 $2.0 - $1.4 NM NM NA NA NA NA
Frisby Technologies Inc. FRIZ.Q $0.00 $0.01 $0.00 $0.0 $0.0 NM NM NA NA NA NA
Homasote Co. HMTC $2.00 $3.50 $2.00 $0.7 $2.6 0.1x 2.4x NA NA NA NA
Industrial Nanotech, Inc. INTK $0.12 $0.26 $0.11 $18.8 $19.4 18.7x NM NA NA NA NA
Kingspan Group plc ISE:KRX $11.40 $30.65 $7.74 $1,943.4 $2,218.7 0.8x 5.9x 0.8x 6.2x 0.9x 6.7x
KTL Technologies Limited ASX:KTL $0.02 $0.03 $0.02 $8.5 $11.0 NM NM NA NA NA NA
Meisei Industrial Co. Ltd. OSE:1976 $2.58 $4.10 $1.95 $170.7 $227.4 0.5x 5.0x NA NA NA NA
Nichias Corp. TSE:5393 $2.87 $11.51 $2.83 $341.1 $621.3 0.4x 3.7x 0.4x NA 0.4x NA
Owens Corning OC $24.19 $28.58 $16.20 $3,130.8 $5,153.8 0.9x 8.5x 0.9x 9.0x 0.9x 8.1x
PFB Corp. TSX:PFB $7.49 $9.31 $6.55 $49.2 $52.8 0.7x 5.8x NA NA NA NA
Rockwool International A/S CPSE:ROCK B $96.72 $381.21 $94.08 $2,095.0 $1,985.1 0.7x 3.2x 0.7x 3.6x 0.6x 3.7x
SIG plc LSE: SHI $9.78 $24.04 $6.15 $1,324.8 $2,380.2 5x 6.3x 0.4x 5.7x 0.4x 5.7x
0.
Superglass Holdings Plc LSE:SPGH $1.04 $4.16 $0.69 $60.4 $104.4 1.3x 4.3x 1.1x 4.5x 1.0x 4.0x
Uralita SA CATS:URA $8.48 $10.31 $6.59 $1,662.1 $1,885.9 2x 6.0x 1.1x 5.5x 1.0x 5.2x
1.
Insulation Median $2.29 $4.13 $1.98 $66.5 $165.9 0.7x 5.8x 0.8x 5.6x 0.9x 5.4x

22
ENERGY EFFICIENCY
GREEN ENERGY

ENERGY EFFICIENCY M&A TRANSACTIONS


Date Deal Acquirer Target Value Revenue EBITDA Description
Closed
1/9/2007 Intertek Caleb Brett Umitek Ltd. $19.2 NA NA Provides technical and strategic consultancy and specialist testing for the
energy and process industries in the United Kingdom
1/29/2007 Bayard Capital Cellnet+Hunt $705.0 NA NA Provides advanced metering, energy efficiency, and infrastructure
Partners Pty Ltd. communication systems to electric, gas, and water utilities
1/29/2007 Travis Perkins Plc Passmore Drywall & $26.2 NA NA Sells insulation products
Insulation Ltd.
4/7/2007 Cree, Inc. COTCO Luminant Device $200.0 NA NA Produces LEDs
Ltd.
11/14/2007 The Dow Chemical Pacific Plastics $14.8 NA NA Manufactures polyols and polyurethane, materials used in household
Co. (Thailand) Ltd. bedding and refrigerator insulation lining
Announced AEA Technology plc Project Performance $66.6 NA NA Offers environment, energy, security, and information technology solutions
(LSE:AAT) Corporation
5/1/2007 Alumasc Group PLC Levolux Ltd. $26.9 NA NA Provides solar shading systems
Announced Bure Equity AB Energo AB $11.2 NA NA Offers electrical engineering, and heating, ventilation, and air conditioning
(OM:BURE) (HVAC) consulting services
5/1/2007 Carlisle Cos., Inc. Insulfoam $160.0 NA NA Manufactures block molded expanded polystyrene products used for
insulation in buildings
10/1/2007 Comverge, Inc. Public Energy Solutions $13.4 NA NA Provides energy efficiency and management services
LLC
2/8/2008 Cree, Inc. LED Lighting Fixtures, Inc. $103.4 NA NA Develops and markets LED light fixtures
10/31/2007 Dei Ai Kei KK Dyflex Co., Ltd. $12.1 NA NA Manufactures and sells insulation material and other construction material
11/1/2007 Eaga PLC Horrocks Group PLC $22.1 NA NA Installs and supplies wall insulation products to the social housing and
housing construction markets
9/4/2007 Elinar Cogebi NV $17.7 NA NA Manufactures insulation materials
12/3/2007 ESCO Technologies, Doble Engineering Co. $319.0 NA NA Provides diagnostic instruments and knowledge services for the electric
Inc. power industry
12/21/2007 Global Insulation KK Asahi Fiber Glass Co. Ltd. $143.0 NA NA Produces and distributes glass wool, fiberglass reinforced thermoplastics
and related materials
9/14/2007 Intermediate Capital Fläkt Woods Group AG $615.6 0.8x NA Provides solutions for ventilation and air treatment for buildings
Group PLC (LSE:ICP)

23
ENERGY EFFICIENCY
GREEN ENERGY

4/22/2008 LED Holdings, LLC Lighting Partner BV $27.8 1.2x NA Develops and manufactures residential, commercial, contract and shop LED
lighting
6/11/2008 Lime Energy Applied Energy $11.9 0.3x NA Designs, engineers, and constructs energy efficiency projects
(NasdaqCM:LIME) Management Inc.
10/1/2007 Lindab International Aervent Group Ltd. $10.5 NA NA Distributes ventilation products to the HVAC industry
AB
Announced Management buyout Dectron Internationale $28.3 0.5x 8.6x Manufactures heating, ventilation, air conditioning, and refrigeration
Inc. products
2/20/2008 Northzone Skirner AB ClimateWell $15.7 NA NA Develops, manufactures, markets, and sells indoor climate equipment
Ventures, AB
4/30/2007 Ratos AB (OM:RATO Mobile Climate Control $71.8 NA NA Engages in the research, development, design, and manufacture of heating,
B) Industries Inc. ventilation, and air conditioning (HVAC) system
8/31/2007 Regal-Beloit Corp. Invensys Motor Systems, $220.0 NA NA Manufacture electric motors and blowers for air moving applications such
(NYSE:RBC) Residential,Commercial as alternative fuel systems, water heaters and HVAC systems
and Asia Pacific
operations
3/13/2008 RPS Group PLC Gregory RW LLP $20.7 0.9x 6.9x Provides specialist consultancy service providing to plan and design
complex buildings cost effectively
7/27/2007 Sensata Airpax Corporation $276.0 NA NA Manufactures protection, sensing, and control components, modules, and
Technologies, Inc. systems
10/9/2007 Vaillant GmbH Turk DemirDöküm AS $325.2 NA NA Manufactures air conditioners and heaters
Fabrikalari
6/9/2008 Willdan Group, Inc. Intergy Corporation $16.5 NA NA Provides energy resource management solutions
(NasdaqGM:WLDN)

24
ENERGY EFFICIENCY
GREEN ENERGY

PRIVATE PLACEMENTS OF ENERGY EFFICIENCY COMPANIES


Date Targe Investors Value(m) Description
1/15/2008 Ambient Corporation Vicis Capital, LLC $11.5 Engages in the design, development, commercialization, and marketing of communications
(OTCBB:ABTG) equipment, technologies, and services
6/25/2008 Aspen Aerogels, Inc. Reservoir Capital Group & $37.0 engages in the development, manufacture, and marketing of nanotechnology materials including
others thermal insulation
4/8/2008 BridgeLux, Inc. Chrysalix Energy & others $30.0 Develops energy saving power-light emitting diode (LED) chips
6/26/2008 Composite Technology Credit Suisse Securities Limited $52.5 Engages in the development, manufacture, and marketing of renewable and energy efficient
Corporation & others electrical energy products
6/17/2008 Control4 Corp. Foundation Capital $20.0 Manufactures and markets wired and wireless control and automation systems and products
4/21/2008 DIRTT Environmental Private Investor Group $25.0 Manufactures and markets modular interior construction systems
Solutions
5/20/2008 ECORE International Element Venture Partners $29.0 Engages in the manufacture and marketing of cork, cork/rubber, and recycled rubber products
4/6/2008 eMeter Corporation Foundation Capital, Siemens $12.5 Delivers energy information management software for utility mass market and commercial and
AG , DBLInvestors industrial deployment
1/29/2008 Glacier Bay, Inc. New Enterprise Associates, The $18.0 Manufactuers thermal control, sound reduction, and DC power management systems.
Quercus Trust
1/18/2008 Global Power Equipment Private Investor Group $71.0 Operates as a design, engineering, and manufacturing company providing an array of equipment
Group Inc. and services to
3/27/2008 GridPoint, Inc. The Quercus Trust $15.0 Provides a platform that aligns the interests of electric utilities, consumers, and the environment
through a network of distributed resources that controls load, stores energy, and produces power
6/9/2008 Icynene, Inc. Private Investor Group $15.0 Produces and markets light-density foam insulation and air-sealing products for the construction
and building industry
3/17/2008 Luminus Devices, Inc. Argonaut Private Equity & $72.0 Developer of environmentally friendly solid state lighting
others
1/29/2008 Luxim Corp. CrossLink Capital, Inc. & others $21.0 Engages in the design, manufacture, and supply of microwave plasma lighting products
1/8/2008 Nuventix, Inc. CenterPoint Ventures, $10.0 Provides thermal management of consumer electronics, LED lighting, medical, telecommunications,
InterWest Partners, automotive, and other electronics ( also STARTech Early Ventures, Rho Ventures)
4/2/2008 Reliance LP Private Investor Group $284.0 Rents and installs heating, ventilation, and air conditioning products such as water heaters, HVAC
equipment, and security systems.
6/17/2008 Sterling & Wilson Pvt. Goldman Sachs Group, $50.0 Offers electro-mechanical solutions for HV and LV electrical systems, HVAC, integrated building
Ltd. Merchant Banking Division management systems, diesel generating sets, and control panels
Announced Ubidyne GmbH Accel Partners $34.0 Manufactures and markets radio antenna and digital frequency transmitters

25
ENERGY EFFICIENCY
GREEN ENERGY

ANALYSIS OF SELECTED PUBLIC COMPANIES


Advanced Materials
Stock Price LTM FY2008E FY2009E
current high low rev EBITDA rev EBITDA rev EBITDA
Nano Technology $0.25 $0.88 $0.20 12.9X NM 5.2X NM NM NM
Conventional $37.10 $54.62 $26.92 1.3X 9.8X 1.4X 7.7X 1.0X 4.8X
Median $1.84 $3.72 $1.51 1.7X 9.8X 1.5X 7.7X 1.0X 4.8X
Biodiesel
Producers $0.09 $0.84 $0.06 1.9X 1.9X 2.1X 11.5X 0.4X 2.8X
Feedstock $0.58 $1.10 $0.45 0.8X 13.2X 0.7X 11.8X 0.6X 10.4X
Distribution & Other $0.53 $3.80 $0.27 4.5X 0.4X 4.6X NM 4.8X NM
Median $0.28 $1.00 $0.14 1.6X 1.9X 3.1X 11.8X 0.6X 4.0X
Biofuels
Median $0.23 $0.75 $0.20 1.1X NM 0.1X 1.0X 0.1X 1.2X
Biomass
Median $0.35 $1.18 $0.25 4.2X 12.9X 3.6X 11.8X 2.8X 6.4X
Eco-Friendly Products and Technologies
Products $0.66 $1.40 $0.61 1.0X 8.2X 1.2X 12.8X 1.1X 10.8X
Agricultural Products $0.12 $0.27 $0.05 1.3X 7.4X 6.3X 3.3X 5.5X 30.7X
Technologies $3.30 $3.77 $1.42 2.6X 13.5X 2.2X 8.4X 1.5X 10.1X
Others $ 0.10 $1.50 $0.05 2.5X 13.7X 3.1X 13.2X 2.8X 12.3X
Median $0.45 $1.30 $0.34 1.9X 11.0X 2.1X 12.3X 1.6X 11.8X
Emissions Trading
Median $2.04 $38.13 $1.04 9.9X NM 10.5X 11.3X 2.7X 2.0X
Energy Storage
Fuel Cells $1.12 $2.46 $0.57 5.6X 1.2X 5.7X 1.2X 3.7X 3.7X
Batteries $3.70 $5.20 $1.30 3.1X 10.4x 15X 8.4X 1.6X 8.7X
Other $1.84 $3.19 $0.92 3.4X 34.0X 2.2X 5.1X 1.4X 10.6X
Median $1.75 $3.66 $0.92 4.0X 9.2X 2.9X 6.1X 2.5X 9.4X
Ethanol
Producer $0.56 $2.52 $0.34 0.6X 8.6X 0.6X 10.2X 0.4X 6.8X
Equipment $0.02 $0.12 $0.01 10.7X NM NM NM NM NM
Technologies $0.90 $5.25 $0.25 4.8X 2.4X 4.7X NM 4.3X NM

26
ENERGY EFFICIENCY
GREEN ENERGY

Median $0.45 $2.49 $0.25 0.7X 8.6X 0.7X 10.2X 0.4X 6.8X
Geothermal
Median $0.99 $1.44 $0.62 3.2X 17.8X 3.1X 13.1X 2.7X 12.8X
Green Producers
Median $26.26 $36.44 $22.82 2.3X 10.8X 2.1X 9.8X 2.0X 8.3X
Hydroelectric
Median $7.33 $12.54 $6.33 4.8X 11.9X 4.6X 10.4X 4.1X 8.4X
Hydrogen
Median $0.76 $2.05 $0.27 6.2X 3.0X 2.4X 2.6X 1.5X 2.1X
Waste Management
Collection & Recycling $5.98 $9.97 $4.90 1.5X 7.3X 1.6X 7.2X 1.5X 6.7X
Hazardous Waste & Remediation $0.20 $2.11 $0.15 2.7X 12.0X 3.1X 8.8X 2.0X 7.8X
Systems & Technologies $0.95 $2.14 $0.77 1.8X 11.4X 1.1X 10.0X 0.7X 7.3X
Recycled Products $0.21 $0.98 $0.14 0.9X 6.0X 0.3X 2.6X 0.4X 3.0X
Median $0.95 $2.18 $0.65 1.6X 8.0X 1.5X 7.8X 1.4X 7.2X
Water
Waste Water $7.20 $8.67 $6.77 1.6X 9.3X 3.6X 10.0X 3.3X 8.5X
Filtration & Equipment $0.24 $0.60 $0.10 2.4X 11.2X 2.0X 11.1X 1.9X 10.1X
Other $21.18 $29.31 $13.89 1.5X 10.6X 1.5X 9.9X 1.4X 9.0X
Median $11.96 $17.33 $10.93 1.9X 9.8X 1.6X 10.0X 1.5X 8.9X
Wind
Turbines & Equipment $5.04 $10.41 $3.95 3.3X 19.7X 2.1X 16.8X 1.7X 11.8X
Wind Farm Dev & Operators $0.74 $1.78 $0.46 2.9X 10.8X 5.7X 11.9X 3.3X 5.6X
Median $1.53 $3.51 $0.55 3.2X 19.0X 2.3X 15.8X 1.8X 11.2X

27
ENERGY EFFICIENCY
GREEN ENERGY

SELECTED M&A TRANSACTIONS


Date Closed Acquirer Target Deal Rev EBITDA Target Description
value
($m)
5/5/2008 AmberWave Systems Aonex Technologies, Inc. $8.0 NA NA Develops and markets semiconductor nanomaterial technology Announced
Corporation
Announced Silex Systems Ltd. Translucent Inc. $13.3 NA NA Develops advanced materials, including silicon-based electronic/photonic
products
2/4/2008 Williams Advanced Techni-Met, Incorporated $84.3 NA NA Manufactures precision coated materials for sputter deposition needs
Materials, Inc.
5/15/2008 Beacon Energy Holdings, Smithfield Bioenergy LLC $10.9 0.8x NA Produces biodiesel, dust control mediums, glycerol, and biomethanol
Inc.
6/19/2008 Bionor Transformación, Gestión de Aceites $2.0 NA NA Engages in the collection and reprocessing of waste cooking oils into biodiesel
S.A. Vegetales S.L.
5/15/2008 FLSmidth & Co. A/S Pneumapress Filter $18.0 NA NA Designs automatic pressure filters for liquid/solids separation in biomass
Corporation
Announced GEK Group of Companies Terna SA $663.1 0.9x 8.7x Constructs and operates hydro electric plants, biomass and waste to energy
S.A. units
3/18/2008 GeoBio Energy, Inc. GeoAlgae Technology, Inc. $2.9 NA NA Produces renewable feedstock for the production of biodiesel for the
biodiesel industry
Announced Green Plains Renewable VBV LLC $310.6 NA NA Engages in the production of biofuel
Energy, Inc.
Announced GreenShift Corporation Biofuel Industries Group, $3.2 NA NA Produces biodiesel from renewable resources
LLC
2/28/2008 GreenShift Corporation GS AgriFuels Corporation $54.3 4.7x NA Manufactures and sells proprietary agrifuels and renewable energy
production equipment
Announced Management buyout Vanguard Synfuels, L.L.C. $5.8 NA NA Operates as a biorefinery that utilizes available biomass resources to produce
biofuels
Announced O2Diesel Europe PLC YellTec GmbH $5.7 0.1x NA Engages in the distribution of biofuels
1/8/2008 OSEO garantie S.A. Agence de l'innovation NA NA NA Supports projects in the biofuels and environment industrial fields
industrielle
Announced Outlook Resources Inc. Prairie Bio Energy Inc. $0.8 NA NA Research and develops alternative energy, including biomass fuel cubes
Announced Renegy Holdings, Inc. Sierra Pacific Industries, $13.0 NA NA Generates electricity by using biomass

28
ENERGY EFFICIENCY
GREEN ENERGY

Inc., 20 Megawatt Biomass


Power Plant
Announced Renegy Holdings, Inc. 18 Megawatt Biomass $5.4 NA NA Engages in biomass power generation
Power Plant in Ione,
6/30/2008 Renewable Energy Group, REG Houston $80.0 NA NA A 35 million gallon per year biodiesel plant near Houston, Texas
Inc.
2/11/2008 Run of River Power Inc. Western Biomass Power $1.5 NA NA Engages in producing power and disposing biomass inventory of dead trees
Corp.
Announced Run of River Power Inc. Pacific Northwest Biomass $2.4 NA NA Produces power using biomass fuels
Corp.
2/28/2008 Willmott Forests Ltd. Bioenergy Australia Ltd. $2.5 NA NA Develops a forestry/renewable energy model that serves timber and biofuel
markets
03/27/2008 Sure-Gro Modugno-Hortibec Inc. $7.4 NA NA Engages in the production and marketing of soils
02/11/2008 CFI Capital Inc., Investment Arm N-Viro $15.0 NA NA Provides bio-organic waste management solutions
Systems Canada, Inc.
02/04/2008 Ecolab Inc. Ecovation, Inc. $210.0 4.2x NA Specializes in anaerobic treatment of organic wastes to generate green
energy
6/11/2008 Gammon India Ltd. Franco Tosi Meccanica Spa $82.0 NA NA Engages in the design, manufacture, assembly, and commissioning of steam
turbines
6/11/2008 Gammon India Ltd. Sadelmi S.p.A. $23.3 NA NA Provides engineering services for the energy and infrastructures industry
01/24/2008 Converted Organics Inc United Organic Products, $10.0 NA NA Produces organic fertilizers and microbiological processes to solve organic
LLC and others waste problems
2/18/2008 Mitsui & Co. Ltd. N.serve Environmental NA NA NA Engages in developing and financing emission reduction projects worldwide
Services GmbH
2/13/2008 Blue Source, LLC Blue Source Canada NA NA NA An environmental credit marketing and consulting company
5/23/2008 Summit Energy Services, Siemat Energy NA NA NA Provides strategic procurement, energy pooling, and energy conservation
Inc.
Announced Climate Exchange Plc Chicago Climate Exchange, $129.9 NA NA Operates as an integrated trading system to reduce emissions of various
Inc. greenhouse gases in the United States
4/1/2008 3M Co. Aearo Technologies Inc. $1,200.0 2.4x 11.2x Designs and manufactures personal protective products and energy
absorbing products
Announced Daimler AG Tognum AG $4,492.4 1.0x 6.2x Supplies propulsion and energy systems for the waterborne and off-highway
applications in Germany and the rest of Europe. Its product portfolio consists

29
ENERGY EFFICIENCY
GREEN ENERGY

of high-speed engines, fuel injection systems, fuel cells, and other energy
generation systems.
6/12/2008 Eqbal Al Yousuf ZAP, Recharge-It-All $1.0 NA NA Comprises battery systems for mobile electronics
Battery Line
Announced Sichuan Changhong Sichuan Changhong $45.9 NA NA Develops, manufactures, and distributes alkaline rechargeable batteries.
Electric Co. Battery Co., Ltd.
Ltd.(SHSE:600839)
Announced Emerson Electric Co. Chloride Group plc $1,347.9 2.9x 22.0x Supplies secure power solutions
4/16/2008 Taylor Devices Inc. Tayco Developments Inc. $6.4 NA NA Develops and manufactures shock energy storage components
4/18/2008 Babcock & Brown Limited Babcock & Brown $114.5 1.5x 20.3x Produces ethanol for use as a transport fuel and distillers grain is used for
Environmental animal feed
Investments Ltd.
6/24/2008 Bühler AG Aeroglide Corporation $95.0 1.4x NA Manufactures thermal processing equipment
Announced Credit Suisse Group Central Illinois Energy $80.0 NA NA Produces ethanol, distiller grains, and by-products in the United States
Cooperative, Inc.
5/15/2008 FLSmidth & Co A/S. Pneumapress Filter $18.0 NA NA Designs and manufactures various automatic pressure filters for liquid/solids
Corporation separation
Announced Four Rivers BioEnergy, Inc. Midwest Renewable $66.9 NA NA Produces fuel ethanol through natural fermentation and distillation of corn
Energy, LLC
Announced Mercy, LLC Gateway Ethanol LLC $11.1 NA NA Engages in the production of ethanol
6/27/2008 Morgenthaler, Early Stage Arisdyne Systems, Inc. NA NA NA Designs and develops flow cavitation systems for biodiesel and ethanol fuel
Partners, LP production
Announced NexGen Biofuels Ltd. Two Ethanol Plants in NA NA NA Produce and distribute ethanol products including super ethanol and
Midwest renewable fuels
3/18/2008 Orion Ethanol, Inc. Dimmitt Ethanol, L.P. $49.4 NA NA Owns and operates a corn fructose facility
4/1/2008 Royal Bank of Scotland Sempra Commodities $2,549.0 NA NA Operates as a commodity trading company
Group plc
3/31/2008 VeraSun Energy, Corp. US BioEnergy Corp. $958.9 1.9x 11.6x Produces and sells ethanol and distiller grains in the United States
Announced CVC Capital Partners Ltd. Evonik Industries AG $14,821. 0.6x 5.0x Produces electricity from biomass, biogas, geothermal energy, and methane
5
6/11/2008 Gammon India Ltd. Franco Tosi Meccanica Spa $82.0 NA NA Designs steam turbines used for projects in thermal and biomass burning
applications
Announced Geysir Green Energy Exorka ehf. NA NA NA Provides engineering solutions for generating electricity from geothermal

30
ENERGY EFFICIENCY
GREEN ENERGY

water
2/4/2008 Mannvit Engineering, Geysir Green Energy $375.7 NA NA Seeks to invest in the renewable energy sector with a focus on geothermal
Renewable Energy energy
Resources ehf, Glitnir
Funds Hf.
Announced NRG Energy, Inc. Calpine Corp. $19,480. 2.4x 16.0x Generates and sells electricity and related products to wholesale and
1 industrial customers
Announced Scottish & Southern Geothermal International $148.2 NA NA Designs and installs commercial and residential ground source heat pump
Energy plc Ltd. systems
4/30/2008 US Geothermal Inc. Empire Geothermal Power $16.6 NA NA A 3.6MW geothermal power plant and geothermal energy leases
LLC
3/17/2008 Valtimet SAS High Performance Tube, NA NA NA Manufactures heat exchanger tubing products
Inc.
1/18/2008 Alstom Belgium S.A. Alstom ACEC Energie S.A. $19.3 NA NA Provides maintenance services for thermal, hydroelectric, and nuclear power
plants
5/29/2008 Dolomiti Energia S.p.A. Dolomiti Edison Energy $88.3 NA NA Owns and operates hydroelectric stations in Italy
S.r.l.
1/14/2008 Gaz Electricite De Six Hydroelectric Power $32.8 NA NA Comprised of six hydro power plants and a wind farm with eight wind
Grenoble SE Plants and OneWind Farm turbines in France
in Eastern France
5/29/2008 Innergex Power Income Saint-Paulin, Chaudière $13.4 NA NA Owns and operates hydroelectric power generation facilities
Fund and three Portneuf
Hydroelectric Facilities
2/4/2008 R.F. Energy S.A. Hydroelectric Achaias S.A. $6.9 NA NA E Engages in the production of hydroelectricity
Announced Suez Energy South . Econergy International $117.5 4.6x 51.5x Engages in the development, ownership, and operation of clean energy
America Participações plc projects, including hydroelectric plants and wind farms
Ltda
Announced Baker Companies, Inc. Proton Energy Systems, $9.2 NA NA Designs proton exchange membrane on-site hydrogen generation systems
Inc.
Announced Management buyout Hexagon Composites ASA $176.1 1.4x 13.0x Produces containers for storage and transportation of biogas, natural gas, and
hydrogen
6/5/2008 3i Group Plc SLR Holdings Limited $188.9 2 .9x 14.5x Offers waste management and landscape planning and design services
1/2/2008 A2A SpA ASM Brescia SpA $5,742.3 2.1x 12.0x Provides energy and environmental services, including waste management

31
ENERGY EFFICIENCY
GREEN ENERGY

3/5/2008 Advanced Disposal Waste Services Of Florida, $57.5 NA 8.2x Comprises hauling and materials recycling operations and construction debris
Services, Inc. Inc., landfill
Announced AECOM Technology Earth Technology Corp. $510.0 0.4x NA Provides various environmental, engineering, and consulting services
Corporation
Announced Ausenco Limited Vector Engineering, Inc. $30.9 NA NA Specializes in geology and geotechnical engineering to landfill design and
closure
Announced CCS Energy Services LLC Newpark Resources, Inc., $85.0 NA NA Provides environmental services in the oil and gas industry in North America
U.S.Environmental
Services Business
2/11/2008 CFI Capital Inc., N-Viro Systems Canada, $15.0 NA NA Provides bio-organic waste management solutions
Investment Arm Inc.
3/14/2008 Clean Harbors Inc. Universal Environmental, $12.7 0.8x NA Provides environmental and hazardous waste management services
Inc.
2/4/2008 Ecolab Inc. Ecovation, Inc. $210.0 4.2x NA Provides waste management solutions
5/9/2008 Goldman Sachs Group, Waste Industries USA Inc. $702.3 2.1x 8.8x Provides solid waste collection, transfer, disposal, and recycling services
Merchant Banking
Division, Macquarie
Infrastructure Partners
3/17/2008 Homeland Security Capital Safety and Ecology $24.5 0.5x NA Provides environmental, hazardous, and construction services
Corporation Corporation
6/13/2008 Linea Ltd. K+S Aktiengesellschaft $22,564. 4.1x 25.6x Provides underground waste management
7
6/22/2008 Loacker Recycling Gmbh, Hubert Häusle GesmbH & $48.4 0.4x NA Offers waste management services
WHB HoferGmbH, Böhler Co. KG
und Sohn Gesellschaft
mbH,CETEC-Beteiligungs-
GmbH
6/2/2008 May Gurney Integrated ECT Recycling CIC $30.1 0.3x 3.7x Engages in the collection and recycling of municipal household waste
Services plc
2/14/2008 Meyer Burger Technology Hennecke Gmbh $29.4 NA NA Provides recycling technologies for re-use of foam trimmings and production
AG waste
4/7/2008 Montagu Private Equity Biffa Plc $3,097.2 2.1x 9.9x Provides integrated waste management services in the United Kingdom
Limited, Global

32
ENERGY EFFICIENCY
GREEN ENERGY

Infrastructure Partners
Announced Republic Services Inc. Allied Waste Industries 2.1x 7.6x Operates as a nonhazardous solid waste management company
Inc. $12,755.
0
Announced Transpacific Industries Dolomatrix International $47.5 2.0x 26.7x Acquires and develops technologies for the treatment of hazardous waste
Group Ltd. Ltd. materials
3/25/2008 Viridor Waste Shore Recycling Ltd. $46.0 NA NA Engages in recycling waste electrical and electronic equipment in the United
Management Ltd. Kingdom
06/17/2008 VT Environmental Estech Europe Ltd. $3.7 NA NA Engages in R&D and marketing of Fibrecycle process for use in the processing
Engineering Limited of waste and recycling markets
Announced Wallgate Group plc Wallgate Services Limited $23.5 NA NA Provides logistics solutions and waste and electronic equipment recycling
services
6/18/2008 Warburg Pincus LLC Safety-Kleen Europe Ltd. $1,121.1 NA NA Provides component cleaning and hazardous waste management solutions
1/11/2008 BK Giulini GmbH Henkel KGaA, Industrial $88.8 NA NA Operates as a supplier of water treatment chemicals, solutions, services and
Water Treatment Business equipment
1/31/2008 Exterran Holdings, Inc. GLR Solutions Ltd. $46.8 NA NA Manufactures technologies and services for the treatment of produced water
5/15/2008 FLSmidth & Co. A/S Pneumapress Filter $18.0 NA NA Designs and manufactures various automatic pressure filters for liquid/solids
Corporation separation
4/25/2008 GE Healthcare Ltd. Whatman plc $728.1 3.2x 16.2x Provides separations technology for analytical laboratories, bioscience, and
healthcare
1/22/2008 GEA Delbag-Luftfilter Astair SARL $7.3 NA NA Distributes air filtration equipment
Vertriebsgesellschaft mbH
Announced Petrolinvest S.A. Caspian Services Inc. $148.4 2.4x 11.2x Purifies drinking water for sale in bulk and in bottles
4/30/2008 Superior Fibers Inc. Precisionaire, Inc. $10.1 NA NA Designs and manufactures high-performance filtration products
5/22/2008 Tomkins plc , Air System . Fedders Corp., Indoor $25.0 NA NA Manufactures air fan filter units, indoor air filtration systems, and air
Components Inc., Ruskin Air-Quality Business purification products
Air Management Ltd

33
ENERGY EFFICIENCY
GREEN ENERGY

SELECTED WIND COMPANY M&A TRANSACTIONS


MERGERS & ACQUISITION TRANSACTIONS (continued)
($ in millions)
Date Acquirer Target Deal Rev EBITDA Target Description Price/
Closed Value MW
1/28/2008 Acciona SA Corporación Eólica CESA S.L. $1,659.8 NA NA Develops and operates wind energy farms 5.5x
6/6/2008 Agrupacio Energias Urvasco Energia S.A. $393.6 NA NA Engages in wind power generation 2.6x
Renovables, S.A.
Announced Airtricity, Inc. Greater Gabbard Offshore Winds Ltd. $155.5 NA NA Engages in the generation of wind energy in the 0.3x
United Kingdom
Announced ArcLight Capital Partners, LLC, Allco Finance Group Limited, $325.0 NA NA Comprises of wind development projects 0.1x
Terra-Gen Power, LLC Tehachapi Wind Farm
5/1/2008 Bismarck Tool and Die Co. Miller Welding & Iron Works $40.0 1.5x NA Manufactures parts, metal fabrications, and NA
machined parts for wind industry components
1/16/2008 Broadwind Energy, Inc. Energy Maintenance Service, LLC $36.1 3.4x 197.0x Offers products and services to the North American NA
wind industry
3/3/2008 Coffey International Ltd. Shaheen & Peaker Limited $12.2 NA NA Operates as a geotechnical and environmental NA
consulting engineering company
6/27/2008 Doughty Hanson & Co. Svendborg Brakes A/S $724.5 NA NA Manufactures hydraulic braking systems for NA
industrial and wind turbine markets
7/2/2008 D-R Holdings Ltd. Peter Brotherhood Ltd. $94.3 0.9x NA Develops, designs, and manufactures steam and NA
wind turbines
Announced Duke Energy Corp. Catamount Energy Corporation $320.0 NA NA Engages in the ownership, development, and 1.1x
management of wind energy projects
3/3/2008 Elyria Foundry Co. LLC Hodge Foundry, Inc. $32.0 NA NA Manufactures gray and ductile iron castings for wind NA
power and renewable energy
3/27/2008 Eneco Holding NV Air Energy s.a. $239.2 NA NA Engages in the development and operation of wind NA
power generation facilities
6/30/2008 EnerTAD SpA ERG Renew $164.3 NA NA Develops wind farms in Italy NA
6/27/2008 ENMAX Green Power, Inc. Kettles Hill Wind Energy Inc. $159.9 NA NA Engages in the generation, transmission and 2.5x
distribution of electricity using wind power
2/26/2008 Fersa Energias Renovables SA Nextwind Srl $8.9 NA NA Operates as a wind plant developer and is based in NA
Potenza, Italy

34
ENERGY EFFICIENCY
GREEN ENERGY

Announced FPL Energy, LLC Mount Copper Wind Power Energy Inc. $121.6 NA NA Owns and operates interconnected wind turbines 2.3x
And Pubnico Point Wind Farm Inc.
1/14/2008 Gaz Electricite De Grenoble Six Hydroelectric Power Plants and One $32.8 NA NA Comprised of six hydro power plants and a wind 2.3x
SE Wind Farm in Eastern France farm with eight wind turbines
6/12/2008 Koop Duurzame Energie B.V. Infinergy Limited $52.5 NA NA Develops onshore wind farms in the United Kingdom NA
5/27/2008 Kymppivoima Tuotanto Oy Pohjolan Voima Oyj $125.8 0.1x 1.3x Produces and supplies electricity and heat through NA
wind power
3/28/2008 Lennart Wallenstam Eolus Vind AB, Two Wind Turbines $10.1 NA NA Consists of wind turbines that are used for NA
Byggnads AB between Ludvika and Vansbro in harnessing wind energy
Dalarna County
4/24/2008 Management buyout Christenson Electric, Inc. $9.2 0.1x NA Engages in electrical generation construction for NA
wind farm facilities
Announced Management buyout Hexagon Composites ASA $176.1 13.0x Engage in the development and production of NA
1.4x composites for windmill manufacturing
Announced Morphic Technologies AB Scanwind Group AS $46.8 0.9x NA Develops, produces, and supplies wind turbines and NA
services
Announced Mytilineos Holdings SA Energi E2 Renewables A/S, ENERGI $41.6 9.0x Wind farm in Athens, Greece with a total capacity of 2.2x
E2Aioliki Parka Karystias EPE and Energi 6.6x 186MW
E2Aioliki S.A.
4/8/2008 Novas Energías do Ocidente, Wind Farms in Normandy and Rhônes- $148.5 NA NA Consists of wind powered electricity generating 0.3x
S.A. Alpes Regions plants having a total capacity of 560 MW
2/15/2008 Scottish & Southern Energy Airtricity Holdings Ltd. $2,150.0 NA NA Develops and operates wind farms NA
plc
Announced Suez Energy South America Econergy International plc $117.5 4. 6x 51.5x Develops, owns and operates clean energy projects, 0.5x
ParticipaçõesLtda. specifically wind projects
3/28/2008 Ventus Energy Inc. West Cape Wind Energy, Inc. $21.5 NA NA A wind energy company that operates as an NA
independent power producer in Canada
Announced Xinjiang GoldWind Science & Vensys Energy AG $87.5 NA NA Designs and develops wind energy converters NA
TechnologyCo., Ltd.

35
ENERGY EFFICIENCY
GREEN ENERGY

PRIVATE PLACEMENT TRANSACTIONS


Date Issuer Investors Value ($m) Target Description
Advanced Materials
6/25/2008 Aspen Aerogels, Inc. Reservoir Capital Group & $37.0 Engages in the development, manufacture, and marketing of nanotechnology materials
others
5/18/2008 Ener1 Inc. Private Investor Group $29.7 Develops nanotechnology-related manufacturing processes and materials
Announced Harris & Harris Group, Inc. Private Investor Group $15.7 Venture capital firm that primarily invests in companies with a focus on nanotechnology
2/21/2008 Intrinsiq Materials Ltd. Private Investor Group $10.0 Researches and develops nanotechnology materials
Biodiesel
5/16/2008 AE Biofuels, Inc. Third Eye Capital $5.0 Operates as a developer of ethanol and biodiesel plants
Corporation
2/12/2008 Amiworld, Inc Private Investor Group $6.2 Develops energy and energy-related businesses
1/9/2008 China Clean Energy, Inc. Iroquois Capital, LP & others $15.0 Produces biodiesel from waste vegetable oils and waste grease
3/14/2008 Greenline Industries, Inc. Leaf Clean Energy Company $20.0 Manufactures waterless biodiesel production equipment
Announced Jupiter Energy Limited Private Investor Group $7.2 Engages in the production and sale of biodiesel in the Asia-Pacific region
Announced Pan Asia Biofuels Private Investor Group $25.0 Produces and sells biodiesel made from the Jatropha plant
Corporation
Biofuel
5/16/2008 AE Biofuels, Inc. Third Eye Capital $5.0 Operates as a developer of ethanol and biodiesel plants
Corporation
6/10/2008 Aurora BioFuels, Inc. Gabriel Venture Partners & $20.0 Engages in the exploration and production of biofuels
others
Announced Biofuel Energy AS Private Investor Group $50.9 Produces biofuels
4/17/2008 EdeniQ, Inc. Northgate Capital Group, $33.1 Develops cellulosic technologies for the production of biofuels
L.L.C. & others
5/13/2008 Gevo, Inc. Burrill Venture Capital & $17.0 Engages in the development and production of biofuels
others
5/14/2008 GreenFuel Technologies Draper Fisher Jurvetson & $21.7 Develops systems for recycling carbon dioxide streams to produce biofuels and feed
Corporation others
Announced Jupiter Energy Limited Private Investor Group $7.2 Engages in the acquisition and exploration of oil and gas properties in Australia
5/6/2008 Mascoma Corporation Atlas Venture LLP & others $61.0 Produces biofuels from lignocellulosic biomass using microorganisms and enzymes
Announced New Generation Biofuels Crestview Capital Funds & $7.6 Manufactures an alternative bio-fuel from vegetable oils and animal fats
Holdings, Inc. others

36
ENERGY EFFICIENCY
GREEN ENERGY

Announced Outlook Resources Inc. Private Investor Group $6.63 Develops agri-energy production, such as biomass fuel cubes, ethanol, and biodiesel
Announced Pan Asia Biofuels Private Investor Group $25.0 A biodiesel company that produces and sells biodiesel made from the Jatropha plant
Corporation
2/27/2008 Verenium Corporation Ramius, LLC & others $54.4 Develops and produces specialty enzyme products and commercializes of biofuels
Biomass
1/29/2008 Bio-Extraction Inc. Private Investor Group $11.1 Develops technology to extract various active ingredients from organic biomasses
6/12/2008 Canadian Hydro Private Investor Group $74.2 Produces renewable energy from water, wind, and biomass
Developers Inc.
Announced Green Plains Renewable Private Investor Group $60.0 Constructs and operates dry mill, fuel grade ethanol production facilities
Energy, Inc.
4/22/2008 INFINIA Corporation Equus Total Return, Inc. & $57.0 Offers micro combined heat and power systems for biomass-powered generators
others
5/6/2008 Mascoma Corporation Atlas Venture LLP & others $61.0 Produces biofuels from lignocellulosic biomass using microorganisms and enzymes
3/31/2008 The First Energy Service Private Investor Group $6.0 Develops on-site power supply, including fuel cells, and biomass power generation
Co. Ltd.
6/23/08 Thermal Energy Private Investor Group $15.7 Offers energy management solutions, including biomass drying solutions
International Inc.
Eco-friendly Products and Technologies
6/25/2008 Bio-Extraction Inc. Private Investor Group $14.6 Develops extraction technology used to extract various active ingredients from organic
biomasses and inorganic feedstock
06/10/2008 EcoSMART Technologies, Cordova Ventures & others $5.0 Develops, manufactures, and distributes pesticide products derived from natural plant
Inc. oils to natural/organic product markets
01/07/2008 EnerTech Environmental, CSFB Customized Fund $42.0 Develops and commercializes combustion technologies for biosolids and organic wastes
Inc. Investment Group& others
4/22/2008 INFINIA Corporation Equus Total Return, Inc. & $57.0 Offers micro combined heat and power systems for residential energy consumers, solar
others and biomass-powered electric generators, and generators for deep space missions
02/12/2008 New Earth Solutions, Ltd. Impax Environmental $7.9 A biological waste treatment and recycling company
Markets plc
06/11/2008 Perf Go Green Holdings, Private Investor Group $6.0 Operates as a biodegradable plastics company
Inc.
05/15/2008 VeruTEK Technologies, Private Investor Group $6.2 Develops and commercializes technologies for environmental remediation using food-
Inc. grade surfactants and food additives that remove contamination
Emissions Trading

37
ENERGY EFFICIENCY
GREEN ENERGY

Announced Carbon Conscious Ltd. Private Investor Group $0.6 Engages in the production of Carbon Credits utilizing the bio-sequestration in Australia
6/10/2008 Ecosystem Restoration Inc. Private Investor Group $4.0 Provides community-based climate mitigation and ecosystem restoration products
Associates,
Energy Storage
3/28/2008 Acta SpA Sumitomo Corporation $11.5 Engages in the R&D of platinum-free catalysts for the fuel cell industry
6/30/2008 Axion Power International The Quercus Trust $18.0 Engages in the R&D of technology to produce lead-acid-carbon energy storage devices
Inc.
1/3/2008 BostonPower, Inc. Gabriel Venture Partners & $45.0 Develops, manufactures, and delivers portable power systems
others
Announced Ceres Power Holdings Centrica plc $39.2 Develops micro-generation products based on solid oxide fuel cell technology
PLC
1/4/2008 Deeya Energy, Inc. Draper Fisher Jurvetson & $15.0 Develops and manufactures electrical energy storage systems
others
5/18/2008 Ener1 Inc. Private Investor Group $29.7 Develops and markets lithium ion batteries and fuel cells
2/27/2008 EPOD International Inc. Private Investor Group $5.0 Engages in the development, production, licensing, and sale of electrical power storage
systems for the distributed generation, wind, and solar power supply markets.
Announced Glacier Bay, Inc. New Enterprise Associates & $18.0 Manufactures thermal control, sound reduction, and DC power management systems
others
3/27/2008 GridPoint, Inc. The Quercus Trust $15.0 A network of distributed resources that stores energy, and produces power
2/29/2008 Hoku Scientific, Inc. Heights Capital $25.0 Develops, and manufactures membranes for proton exchange membrane fuel cells
Management, Inc. & others
2/15/2008 Lion Cells, Inc. Battery Ventures, Nth Power $12.1 Operates as a developer of battery using the lithium ion technology
LLC
6/24/2008 Medis Technologies Ltd. Azimuth Opportunity Ltd. & $36.5 Designs, develops, and markets liquid fuel cell products
others
Announced Nuventix, Inc. CenterPoint Ventures & $10.0 Provides thermal management of consumer electronics
others
3/27/2008 Odyne Corporation The Quercus Trust $7.0 Develops and manufactures plug-in hybrid electric vehicle propulsion systems
6/17/2008 Power-One Inc. Private Investor Group $75.0 Engages in the design and manufacture of power conversion and power management
(NasdaqGM:PWER) products.
1/16/2008 Quantum Fuel Systems WB QT, LLC $16.2 Develops and produces propulsion systems, energy storage technologies, and alternative
Technologies Worldwide fuel vehicles
Inc.

38
ENERGY EFFICIENCY
GREEN ENERGY

3/12/2008 Sundrop Fuels, Inc. Sun Mountain Capital $20.0 Develops renewable energy technology solutions for fuel cells and industrial processes
6/19/2008 Turbo Power Systems, Inc. Gartmore Investment Ltd. & $5.9 Designs and manufactures power solutions primarily in the United Kingdom
others
Ethanol
5/16/2008 AE Biofuels, Inc. Third Eye Capital $5.0 Operates as a developer of ethanol and biodiesel plants
Corporation
4/3/2008 Alter NRG Corp. Private Investor Group $45.6 Develops gasification projects for the commercial production of energy
3/11/08 Coskata, Inc. Advanced Technology $19.5 Commercializes a proprietary technology for the production of fuel-grade ethanol
Ventures & others
Announced Green Plains Renewable Private Investor Group $60.0 Constructs and operates dry mill, fuel grade ethanol production facilities
Energy, Inc.
2/20/2008 Levelland/Hockley County REX Stores Corp. $5.0 Intends to construct, operate, and manage a fuel ethanol plant in the United States
Ethanol, LLC
5/6/2008 Mascoma Corporation Atlas Venture LLP & others $61.0 Produces cellulosic ethanol in the United States
5/14/2008 Osage Bio Energy, Inc. First Reserve Corporation $300.0 Produces barley-based ethanol
5/29/2008 Pacific Ethanol, Inc. Lyles United, Llc & others $74.3 Produces and sells ethanol and its co-products in the western United States
Announced Range Fuels, Inc. Pacific Corporate Group, LLC $158.0 Converts biomass to ethanol through a thermo-chemical conversion process
& others
4/2/2008 Southridge Enterprises Private Investor Group $6.6 Produces and markets ethanol and other renewable fuels
Inc.
Geothermal
5/19/2008 EnLink Geoenergy Craton Equity Partners, $30.0 Technology that improves the heating and cooling efficiency of the geothermal system
Services, Inc. Medley Capital
5/30/2008 Geodynamics Ltd. The Sentient Group, $35.8 Develops baseload electricity generation from hot fractured rocks (HFR)
Sunsuper Pty Ltd
5/15/2008 Nevada Geothermal Private Investor Group $15.0 Engages in the exploration, evaluation, and development of its geothermal properties
Power Inc.
1/8/2008 Ormat Technologies Inc. Ormat Industries Ltd. $33.3 Engage in the geothermal and recovered energy power business
4/14/2008 Polaris Geothermal Inc. Skyberry Holdings Ltd. $26.5 Engages in the acquisition, exploration, and development of geothermal properties
4/1/08 Raser Technologies Inc. Merrill Lynch & others $93.6 Operates as a geothermal power development and technology licensing company
2/20/2008 Sub-One Technology, Inc. Chevron Technology $24.0 Designs, develops, and manufactures films and coating systems for industrial pipes
Ventures L.L.C. & others
4/28/2008 US Geothermal Inc. AGF Management Ltd/others $14.8 Engages in the acquisition, development, and utilization of geothermal resources

39
ENERGY EFFICIENCY
GREEN ENERGY

Hydroelectric
6/12/2008 Canadian Hydro Private Investor Group $74.2 Owns and operates 12 hydroelectric, 5 wind, and 1 biomass power plants
Developers Inc.
6/16/2008 Sea Breeze Power Corp. Private Investor Group $2.5 Develops hydroelectric, wind power generation, and transmission projects
Hydrogen
4/3/2008 Alter NRG Corp. Private Investor Group $45.6 Develops gasification projects for the commercial production of energy
4/9/2008 Crosstex Energy LP Kayne Anderson Energy $100.0 Operates as an independent midstream energy company
Development Company &
others
3/13/2008 Distributed Energy Perseus, L.L.C. $16.5 Designs, develops and manufactures on-site hydrogen gas delivery systems worldwide
Systems Corp.
6/23/08 Eden Energy Ltd Private Investor Group $6.5 Engages in the production, blending, storage, and supply of hydrogen
2/21/2008 Intrinsiq Materials Ltd. Private Investor Group $10.0 Researches and develops nanotechnology materials for hydrogen storage systems
1/16/2008 Quantum Fuel Systems WB QT, LLC $16.2 Engages in the development and production of propulsion systems, energy storage
Technologies Worldwide technologies, and alternative fuel vehicles
Inc.
Waste Management
6/9/2008 Allied Resource PCG Capital Partners LLC $53.0 Focuses on environmental services, industrial processing, and recycling
Corporation
6/4/2008 ECO2 Plastics, Inc. Trident Capital, Inc. & others $6.7 Engages in the polyethylene terephthalate plastic recycling operations
3/25/08 EnGlobe Corp. ONCAP & others $9.6 Manages organic-based waste streams and contaminated soils
2/26/2008 Europa Facility Holdings H.I.G. Capital, LLC $49.3 Provides facilities management services, including waste management services
Ltd.
6/4/2008 Groupe Paprec Financiere Agache $115.8 Engages in recycling
Investissement
3/28/2008 Lynwood Limited Foresight Venture Partners $6.0 Engages in recycling of waste plastic materials into useful goods
5/1/08 Metalico Inc. Ramius, LLC & others $128.5 Engages in scrap metal recycling and lead-based products fabrication
2/12/2008 New Earth Solutions, Ltd. Impax Environmental $7.9 Operates as a biological waste treatment and recycling company
Markets plc
3/17/2008 Recyclebank, Inc. Sigma Partners & others $30.0 Provides waste collection solutions for communities
3/17/2008 Safety and Ecology Homeland Security Capital $10.6 Provides environmental, hazardous, and radiological infrastructure remediation
Corporation Corporation
1/21/2008 Zincox Resources plc Private Investor Group $39.8 Engages in the exploration, re-evaluation, and production of zinc bearing material

40
ENERGY EFFICIENCY
GREEN ENERGY

Water
2/5/2008 Pevesa Peptonas Suanfarma Biotech $1.1 Manufactures enzymatic hydrolysates
Vegetales S.L.
2/12/2008 WorldWater & Solar The Quercus Trust $35.6 Provides power and water supply solutions using solar electric technology
Technologies Corp
Wind
Announced AES Corp. Private Investor Group $625.0 Develops alternative energy, including wind generation and climate solutions
4/17/2008 Capital Energy, S.A. Pontegadea Participaciones, $170.3 Promotes, develops, and operates national and international offshore wind farms
S.C.R., S.A.,Iberian
Renewable Energies
Announced Clipper Windpower Plc One Equity Partners LLC $150.2 A wind energy technology, turbine manufacturing, and project development company
1/23/2008 Fat Spaniel Technologies, Ignition Partners & others $18.0 Specializes in renewable energy systems, including wind
Inc.
6/24/2008 Juhl Wind, Inc. Vision Opportunity Capital $5.2 Develops, operates, and manages medium-scale community wind farms
Management,LLC
Announced Noble Environmental CPP Investment Board $200.0 Generates electricity from wind
Power, LLC
3/7/08 Shear Wind, Inc. Private Investor Group $18.8 Engages in the exploration and development of wind farm development projects
4/9/2008 Standard Renewable The Quercus Trust $7.0 Offers residential wind turbines
Energy, LP
4/27/2008 TechnoSpin Inc. 21 Ventures, LLC $8.0 Manufactures small wind energy systems
6/20/2008 Western Wind Energy Private Investor Group $17.7 Develops, owns and operates wind farms
Corp.
4/24/2008 Wind Capital Group NTR plc $150.0 Owns and operates wind energy farms

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ENERGY EFFICIENCY
GREEN ENERGY

Conclusion
As mentioned earlier, the estimated U.S. VC investments in energy efficiency were $476 million in 2006 and $274
million in 2005. In China, investment in energy efficiency and energy conservation jumped from RMB 5 Billion in
1990 to RMB 25 Billion a decade later.

The largest investments in efficiency were made in capital-intensive power line communications deals. Advanced
metering initiatives and opportunities for high-speed data communications over the electric grid have resulted in
significant investments.

In the spirit of the Olympics 2008, assessing the performance of countries, the 2007-2008 renewable energy
production Gold Medal must be awarded to China, coming in second for the Silver Medal is Germany with the USA
getting the Bronze.

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