Issue 14 | Wednesday November 21st 2007

Welcome to the EnviroDaq newsletter focusing on the UK's growing environmental goods and services (EGS) sector.

Contents


EnviroDaq

News in Brief
EnviroDaq 100 Company News
Venture News
Featured Company Profile: PowerFilm
Contact

EnviroDaq

The EnviroDaq 100 Index is the first index for UK-listed environmental technology companies. It indexes the 100 largest UK-listed companies which derive at least 60% of their turnover from environmentally-focused goods and services. These include renewable energy; energy efficiency equipment; renewable materials; waste management; water and waste water treatment; air pollution control equipment; environmental monitoring and instrumentation; and cleaner technology processes.

The EnviroDaq 100 website (www.envirodaq.com) provides detailed company information, including key financials, company background, broker recommendations and investment ratios. It includes a graphing feature which allows you to create flexible and customisable share graphs for each of the EnviroDaq component securities.

In addition to this, companies are sub-divided into the 12 official EGS sub-sectors as used by the Department for Business Enterprise and Regulatory Reform. You can access these lists as well as focused sub-sector news by clicking on the new “Industry Sectors” link on the navigation column.

To ensure the index remains balanced, we will always list the largest 100 companies as determined by their market capital. This will be reviewed on a quarterly basis when the index will undergo rebalancing. The EnviroDaq 100 index is market capitalisation-weighted and free float adjusted in line with the methodology used by the FTSE AIM Index series. More information about this methodology can be found on the “Index Info” page.

EnviroDaq stats (as from today)
EnviroDaq Index Current Value: 123.52
EnviroDaq Index Movement Today: -2.78
EnviroDaq Index Movement Last 7 Days: -4.12

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News In Brief

Britain Stakes Claim to Climate Crisis Leadership
Prime Minister Gordon Brown has promised that Britain will take tough measures to fight the global climate crisis, and urged leaders from other countries to follow his lead.

Brown said, "The climate change crisis is the product of many generations, but overcoming it must be the great project of this generation. And it will have to involve not just Europe and America but the entire community of nations,"

The Kyoto Agreement expires in 2012 and no agreement has been made to replace it. Brown noted little new in his speech about how the crisis will be overcome, but he did mention the job and business opportunities it offered.

To read more click here.

Britain to Build World’s Largest Biomass Plant
Consent has been granted by the Energy Secretary John Hutton for a 350MW wood-chipped fuelled electricity generating plant in Port Talbot, South Wales.

It will be the biggest biomass plant in the world, generating enough clean electricity to power half of the homes in Wales. When completed at the turn of the decade, the £400m plant from developer Prenergy, will contribute around 70% of the Welsh Assembly's 2010 renewable electricity target.

It will be able to produce continuous, base-load electricity for 24 hours a day, 365 days a year over the 25 years of its expected lifetime. The wood fuel is expected to come from sustainable sources in the US and Canada.

To read more click here.

CO2 Emissions Growing Faster Than Expected
Researchers have said that human activity is putting increasing amounts of carbon dioxide into the atmosphere, whilst natural carbon sinks such as oceans and trees are taking up less.

It is believed that the 35% increase in emissions since 2000 is attributed to increased emissions from rapidly expanding developing nations. Scientists say that global temperatures will rise by 2 to 6 degrees Celsius by the end of the century as a result of greenhouse gas emissions.

To read more click here.

Al Gore Partners With Silicon Valley Venture Capital Firm
Nobel Peace Prize winner Al Gore has become a partner of California-based Kleiner Perkins Caufield & Byers which has a history of backing computer start-up companies.

Kleiner is now a leading funder of alternative energy investments, and alongside Gore’s Generation Investment Management, the company hopes to fund green business, technology and policies addressing climate change.

100% of Gore’s salary of the partnership will be donated directly to the Alliance for Climate Protection.

To read more click here.

Tiny Ocean Plankton to Absorb Greenhouse Gas
Norwegian experiments have shown that small drifting plants or creatures could absorb up to 39 percent more CO2 in an environment simulating climate conditions up to 2150.

Other research has shown that oceans have absorbed almost half of the carbon emissions from the burning of fossil fuels since the Industrial Revolution.

However, when these plankton die they consume oxygen, vital to marine life. This creates large expanses of ocean floor with little oxygen, impacting upon the growth and reproduction rates of organisms.

To read more click here.

GE to Cut Mercury in Energy Efficient Light Bulbs
General Electric Co is working on ways to cut the level of hazardous mercury in popular low energy light bulbs which are more efficient and generate lower greenhouse gas emissions than traditional incandescent bulbs.

A standard energy saving light bulb contains only 5 milligrams of mercury, but with 150 million bulbs sold in 2006, this amount soon accumulates in landfill sites creating a toxic hazard.

"We're raising investments to get mercury down. If we can get it down to 1 milligram of mercury, that is a big breakthrough," Lorraine Bolsinger, vice president for GE's green unit called ecomagination.

To read more click here.

Kyoto Energy Projects To Dry Up In 2 Years
A project developer has expressed concerns that carbon offset projects under the Kyoto Protocol will dry up by 2009.

At present, rich nations can buy carbon offsets by funding projects in developing nations, but when the protocol expires in 2012, there will be much less certainty about this market.

World leaders agreed in June in Germany to try and clinch a new deal to fight global warming by 2009, with serious negotiations expected to kick off in Indonesia in December.

To read more click here.

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EnviroDaq 100 Company News

Questair & ExxonMobile Company Selected for Award
QuestAir Technologies and ExxonMobil Research & Engineering Company (EMRE) announced today that the QuestAir H-6200 Rapid Cycle Pressure Swing Adsorption system has been selected by the independent judging panel and editors of R&D Magazine as one of the 100 most technologically significant products introduced into the marketplace over the past year.

QuestAir has been working with EMRE since 2003 to develop the QuestAir H-6200 RCPSA for use in oil refineries and petrochemical plants. This product combines novel structured adsorbents and rotary valves, which together allow the QuestAir H-6200 to process gases at a much faster rate than conventional products.

To read more click here.

Traction Technology to Develop Hybrid Buses
Traction Technology Plc, a designer and deliverer of low emission series diesel electric hybrid engine systems, announces that it has signed a Memorandum of Understanding with The Optare Group to jointly develop a range of single deck series hybrid vehicles for the UK bus market.

Optare has taken an option to build a minimum of 10 vehicles during 2008 for sale to various operators in the UK. Both parties are optimistic regarding the further sales opportunities for this new offering to the market.

To read more click here.

Solar Integrated To Supply France’s Largest Solar Roof
Solar Integrated Technologies, Inc., has won a U.S.$6.6 million order for a BIPV roofing system to be owned and operated by Akuo Energy, a renewable energy project developer.

The BIPV system will be installed at a logistics facility currently under construction in Southern France. The project, planned for completion in 2008, is expected to be the largest BIPV roofing system in France.

To read more click here.

Applied Intellectual Establish RedOx Biofuels
Applied Intellectual Capital has formed a wholly-owned subsidiary RedOx Biofuels Limited to commercialise AIC’s proprietary metal mediated redox (“MMR”) technology for use in the production of biofuels.

AIC already has pilot scale and full scale equipment designs for MMR systems at an advanced stage of development and is currently building a number of mobile demonstration systems.

To read more click here.

Clean Air Power Dairy Success
Clean Air Power Limited, has announced that following a successful 6 month trial of 2 Genesis systems by Robert Wiseman Dairies, Scotland's largest fresh milk provider, Robert Wiseman Dairies have placed an order for a further 20 systems.

John Pettitt, CEO of Clean Air Power, commented "We view this order as a very significant step forward for Clean Air Power as this is the first major recognition of our Genesis System. Robert Wiseman Dairies is a major company with over 1,500 trucks in their fleet and we are delighted that they are so satisfied with the first two systems”.

To read more click here.

Plantic Enters Flexible Film Agreement
Plantic Technologies Limited, the company engaged in the development and commercialisation of a range of biodegradable plastics from naturally occurring high amylose starch, has entered into in an agreement with Bemis Company, Inc.

The alliance between the two companies will result in the co-development of new flexible packaging materials based on Plantic® bioplastic resin developed using high-amylose corn starch for use as a component of or as a stand-alone structure in flexible packaging products. Targeted applications for the new films will include flexible packaging for personal care and dry goods.

To read more click here.

Hightex to Provide Membrane Roof for World Cup Stadium
Hightex has announced that it has signed a contract to provide the membrane roof as part of the upgrading of the First National Bank (“FNB”) Stadium in Johannesburg, South Africa.

In preparation for the tournament, the City of Johannesburg has decided to upgrade the Stadium, originally built in 1987, and to increase its capacity from the current 78,000 seats to 104,000 seats. The total contract volume for Hightex is around EUR 7 million. The Directors of Hightex expect that approximately EUR 1 million of this revenue will arise in 2007, about EUR 5 million in 2008 and the balance in 2009.

To read more click here.

For all the EnviroDaq company news visit www.EnviroDaq.com and view the news archive.

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Venture News

Boost for clean battery business
Welsh battery business Atraverda has won the backing of two new European investors in a £10.4m second round. Denmark's BankInvest New Energy Solutions and Portugal's Espirito Santo Ventures led the investment, with existing investors Scottish Equity Partners, Chord Capital and Finance Wales, plus US-based EnerTech Capital and OnPoint Technologies, increasing their stakes.

Atraverda is developing bi-polar batteries for use in hybrid electric vehicles, standby power and other applications. The lead-acid batteries are based on the firm's proprietary Ebonex technology, which uses a titanium sub-oxide ceramic to reduce lead content and extend battery life.

To read more click here.

CamSemi secures third round
Energy-efficient electronics group CamSemi has raised a £13m third round. The government-backed Carbon Trust led the round with a £2m stake, alongside existing investors 3i, Scottish Equity Partners and TTP Ventures.

The Cambridge-based firm is developing power-management circuits for mains converters and battery chargers which offers a ten-fold improvement in standby energy efficiency.

To read more click here.

Solar installer lands growth funding
Kent-based renewables contractor Cel-F Solar has secured £1m investment from Bank of Scotland Growth Equity. The firm designs, installs and maintains solar, wind and heat pump systems for councils, housing associations and property developers. The company has grown at over 30%pa over the past three years and is on track to double turnover in the current year, thanks in part to wider adoption of the 'Merton Rule' which mandates participating councils to include some renewables element in new developments.

To read more click here.

Venture news provided for EnviroDaq by Clean Ventures.

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Company Case Study

The following case studies of companies in the EnviroDaq index were penned by the companies themselves and have not been edited by the EnviroDaq editor. We therefore accept no liability for the accuracy of the information contained within them and they should not be used as a prospectus for investment purposes.

Company: PowerFilm

PowerFilm, is a developer and manufacturer of thin, flexible solar panels. Based in Iowa, USA, the company is currently targeting the portable and remote solar applications market and continues its move into the building integrated solar market.

It listed on the Alternative Investment Market (AIM) of the London Stock Exchange in May 2006, raising gross proceeds of £9.6 million at 120 pence per share.

The current share price, eighteen months on, is 404p (as of 15th November 2007), producing a market cap of £147 million.

Share demand has been driven by the following investment positives:

- Expansion plans - The IPO allowed the company to add further machines to manufacture 13 inch thin film solar panels and create new machines capable of manufacturing ‘meter wide’ film. The IPO provided for a Phase One project to increase capacity from 1MW to 10MW. A placing at 300 pence in June 2007 raised £7.9 million in gross proceeds to the company to embark upon a Phase Two project aiming to increase annual capacity further to 24MW.

- High levels of demand for solar products.

- An established company with sales and profits - founded in 1988, PowerFilm has been selling commercial products for more than ten years.

- PowerFilm’s differentiating low-cost technology platform: roll-to-roll manufacturing, printed interconnect, amorphous silicon supplied in the form of silane gas (a more widely available alternative to the polysilicon used in traditional crystalline silicon panels), and a flexible plastic substrate.

-US governmental support via development contracts and grants – investors in PowerFilm benefit from exceptionally low research and development costs: at 30 June 2007 R & D costs for the first half-year were zero.

- PowerFilm’s manufacturing technology platform is also being used to develop thin film electronics for flexible display applications.

Interim results for the six months to 31 June 2007 showed rising profits, citing further growth in demand.

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Contact EnviroDaq

EnviroDaq has been developed by the UK Centre for Economic and Environmental Development (UK CEED), a charitable foundation, and the Centre for Sustainable Engineering (CSEng), a not-for-profit company.  The aim is for the index to become an authoritative benchmark for performance in the environmental industries and to attract recognition for, and investment activity in the sector. Please get in touch if you wish to give feedback on our newsletter or submit relevant news or case studies.  For more information on EnviroDaq visit www.envirodaq.com  or contact Gareth Jones (g.jones@ukceed.org; Tel: 01733 312286)

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About EnviroDaq
The information contained in this newsletter and on the EnviroDaq website has been included for general informational purposes only and no person should make any investment decision in reliance upon the information contained herein. The website and the information contained herein do not constitute an offer to sell or the solicitation of an offer to buy any securities.
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