Hedging Bets with Flexibility in Alternative Fuels

August 10, 2011 | State of the Market Report

The successful IPOs of Codexis, Amyris, Solazyme, Gevo, and KiOR headlined a busy year and a half for alternative fuel investing. Finally, the $6.4 billion invested in these companies brought favorable returns, but there were notable failures amidst the successes. In 2010, investment in alternative fuel technologies totaled $929.8 million, a 5.4% drop from the year prior. As the space matured, and the effects of the recession lingered, investors dished out larger amounts for fewer companies. Investors rewarded flexibile technologies and waste-to-fuel conversions the most, and favored companies making both fuels and chemicals. While the companies nearest to scale pull in larger and later-stage funding, they will leave their less-qualified peers unable to raise money, driving more companies over to chemicals or into the grave in the coming months.

Coverage Areas

  • Owning the Energy Transition
  • The Future of Mobility

Table of Contents

  • Executive Summary
  • Landscape
    Total investment dollars remained flat in 2010, with investors betting larger amounts on fewer companies. IPOs dominated the industry, while investors rewarded flexibility.
  • Analysis
    Even in a shaky economy, corporate investment remains steady. IPO and investment activity indicate a shift to technologies capable of making both fuels and chemicals.
  • Outlook

Lead Analyst

Andrew Soare


Mark Bunger
Gregory Dearborn

About Lux Research

Lux Research is a leading provider of tech-enabled research and advisory solutions, helping clients drive growth through technology innovation. A pioneer in the research industry, Lux uniquely combines technical expertise and business insights with a proprietary intelligence platform, using advanced analytics and data science to surface true leading indicators. With quality data derived from primary research, fact-based analysis, and opinions that challenge traditional thinking, Lux clients are empowered to make more informed decisions today to ensure future success.

Already a Lux Client?

Sign In

Interested in Learning More?

Contact us to learn the benefits of becoming a Lux member.

Or call us now

For North America (Boston Headquarters)
+1 (617) 502-5300

For EMEA (Amsterdam)
+31 20 280 7900

For APAC (Singapore)
+65 6592-6978