Bill Gates, Others Launch Clean Energy Fund
December 12 2016 - 4:50PM
Dow Jones News
Microsoft Corp. co-founder Bill Gates said Monday that he and
other business leaders are launching a $1 billion clean-technology
fund that will start investing next year in companies developing
low-cost, low-carbon technologies.
The fund, Breakthrough Energy Ventures, aims to invest in firms
that have promising experimental technologies in power generation
and storage, transportation, industrial applications, agriculture
and energy system efficiency.
Fellow investors include Amazon.com Inc. Chief Executive Jeff
Bezos, LinkedIn Corp. Chairman Reid Hoffman, Alibaba Group Holding
Ltd. Chairman Jack Ma, and retired hedge fund manager John
Arnold.
The fund is an offshoot of a larger group called the
Breakthrough Energy Coalition that has pledged to invest in
clean-energy technologies. Members include billionaires Tom Steyer,
George Soros and Richard Branson, and the University of
California.
Reducing the cost of renewable energy, such as wind and solar
power, and making it cheaper to add more of this power to the grid
are areas the fund would likely support, Mr. Gates said in an
interview.
"Many people aren't willing or able to pay a huge premium (for
clean energy), beyond what they pay for hydrocarbon energy," Mr.
Gates said. "The way you get to success is to get lower carbon
energy at a lower cost."
While current clean-energy technologies should be used as much
as possible, the technologies that will enable the U.S. and the
world's other major economies to cut greenhouse gas emissions to
zero by 2050 will be invented in the next 10 to 20 years, Mr. Gates
added.
"By 2050, at least the large countries in the key sectors have
to essentially be at zero," he said.
Although investing in early-stage companies is risky, fund
investors expect to make a profit, citing opportunities in the $6
trillion global energy market. The goal is to invest in
technologies that, when installed on a large scale, have the
potential to cut greenhouse gas emissions by 500 million metric
tons.
Mr. Gates said that he and other investors want to convince the
Trump administration to maintain or increase government funding for
energy research and development.
"It's a fantastic investment, even if you don't look at the
climate change piece of this," he said.
The fund could boost early-stage investment in clean technology
companies.
U.S. venture-capital equity financing has fallen for new energy
and other clean technology companies, to $2.2 billion this year
through September, from $5.7 billion in 2011, according to Dow
Jones VentureSource.
More investment in next-generation technologies, such as power
storage, could help solve some of the problems that come from
generating more power from wind and sunshine, some energy industry
participants and analysts said.
"The progress over the last decade in wind and solar is
astounding, but the major barrier is still that they are
intermittent and cannot alone provide reliable electricity," said
Severin Borenstein, an economics professor at the University of
California, Berkeley.
Write to Cassandra Sweet at cassandra.sweet@wsj.com
(END) Dow Jones Newswires
December 12, 2016 16:35 ET (21:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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