D.O.E. Grants $83 Million To Biofuels Startups (Not One Of Them In Silicon Valley)

Lora Kolodny

Lora Kolodny is a technology journalist. As of 2012 she works as a reporter for Dow Jones covering startups and venture capital. Her writing is also syndicated to the Dow Jones owned Wall Street Journal. Lora began reporting on business, technology and entertainment in 2002. She has worked as greentech writer and editor at TechCrunch, and as a staff reporter... → Learn More

Monday, June 13th, 2011

Maybe it’s just a biofuels thing this year, but it seems like the feds are giving cleantech grant money to companies and institutions that are based anywhere but in the nation’s capital of venture capital.

The U.S. Secretary of Energy Steven Chu announced six recipients of $36 million in total grant funding via the Department of Energy’s Biomass Program on Friday. That non-dilutive funding went to organizations working to make the production of “drop-in” biofuels and plant-based chemicals better, and to ultimately bring affordable alternatives to petroleum-based products mainstream in the U.S.

Despite the region’s reputation as a cleantech hotbed, not one Bay Area organization or business scored a piece of this funding. They also missed out on a previous grants round from the same program, announced in May, which doled out $47 million to eight companies in the sector.

The grant receiving companies in Friday’s announcement are from San Diego, Calif., North Carolina, Michigan, Texas and Wisconsin. They included: General Atomics, Genomatica, Michigan Biotechnology Institute, HCL CleanTech, Texas Engineering Experiment Station and Virent.

The organizations in the earlier grant funding announced by the Biomass Program are based in: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Montana, New Jersey and South Carolina. They included: the U.S. Forest Service Rocky Mountain Research Station, the University of Kentucky, University of Kansas Center for Research, University of Florida at Gainesville, Metabolix, Exelus, the Domtar Paper Company, and Cellana.

Where were the Bay Area’s bio-fuels and -chemicals companies, schools and labs? We’re talking to you, L39 in South San Francisco, Solazyme, and Amyris. Maybe they were too busy hiring, and going public to apply for grants from the D.O.E.

A 2010 study of Clean Tech Job Trends by Clean Edge ranked the San Francisco Bay Area number one among major metropolitan areas in the U.S. for cleantech jobs. The study looked at job listings, early stage investment activity, job presence and patent activity.

[Ed's note: We'll be watching this space to see if there's some kind of disadvantage, when it comes to government grant getting, for cleantech companies in and around the Valley.]

Company: Genomatica
Website: genomatica.com
Funding: $101M

Genomatica is the emerging leader in sustainable chemicals: ‘greener’ intermediate and basic chemicals that we make from renewable feedstocks, and at lower cost. Its products act as direct replacements in a trillion-dollar global market that is currently based on fossil fuels. Genomatica bring substantial and unique technology that transforms the industry’s economics. This allows the company and its partners to build commercial manufacturing plants at substantially lower capex, and to produce chemicals for less than our petro-based competition, while being...

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As United States Secretary of Energy, Dr. Steven Chu is charged with helping implement President Obama’s ambitious agenda to invest in clean energy, reduce our dependence on foreign oil, address the global climate crisis, and create millions of new jobs. Dr. Chu is a distinguished scientist and co-winner of the Nobel Prize for Physics (1997). He has devoted his recent scientific career to the search for new solutions to our energy challenges and stopping global climate change - a mission...

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Website: virent.com
Launch Date: 2002
Funding: $46.4M

Virent Energy Systems, Inc. operates as an energy technology company that enables the renewable replacement of fossil fuels. Its BioForming platform technology renewably produces transportation fuels, fuel gases, and various chemicals from fossil fuels. Virent Energy Systems, Inc. has a strategic industrial collaboration with Royal Dutch Shell plc. The company was founded in 2002 and is headquartered in Madison, Wisconsin.

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