Econcern Receivership Highlights Cleantech Risks
Published: 14 June 2009
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6 pages, 2 figures
Executive Summary
Econcern, a Netherlands headquartered energy and cleantech group with 1,000 employees, filed for the Dutch equivalent of receivership on May 26, 2009. The firm had plans for massive expansion through its five business units in consulting, renewable energy projects, small-scale solar power implementation, carbon projects and cleantech venture capital. The financial crisis wrecked the firm’s growth plans as financial partners failed to support the firm. Econcern’s fate crystallizes how investors mispriced renewables and cleantech risk across operations, strategy, regulations, technology and capital requirements. Dutch utilities Eneco and Essent are likely to bid for Econcern. This confirms the trend for power generating utilities to buy up struggling entrepreneurial climate change ventures. European cleantech investors plan to exit 24 per cent of portfolio companies through trade sales by 2011 with utilities likely buyers.
TABLE OF CONTENTS
ECONCERN BANKRUPTCY EXPOSES CLEANTECH RISKS
Econcern Created A Sprawling Cleantech And Renewables Empire
The Financial Crisis Wrecked Econcern’s Growth Strategy
Investors Mispriced Renewables And Cleantech Risk
Utilities Will Control Climate Change Innovation
TABLE OF FIGURES
Figure 1. Econcern Expanded Into Dozens Of High Risk Niche Markets
Figure 2. Investors Underestimated Renewable And Cleantech Risks
Companies Mentioned
AES, AgCert, Ampère Equity Fund, Aviva, Blue Chip Energy, Darwind, Delta Lloyd, Dong Energy, Drax Group, DuraCar, Ecofys, Econcern, EcoSecurities, Ecostream, Ecoventures, EDF Energy, ENDON, Eneco, EnergyMirror, E.ON, Ernst & Young, Essent, Evelop Capital, Industry Ventures, Innogrow, Melexis Telecom, OneCarbon, Rabobank, Saints, SHV, Siemens, Solarfun, The Carbon Trust, Ubbink.