CellEra raises $2 million from Israel Cleantech Ventures and BrainsToVentures

CellEra Inc., a Caesarea, Israel-based start-up developing a platinum-free membrane-based fuel cell technology (PFM-FC), has reportedly raised $2 million from German angel investor group BrainsToVentures and existing investor Israel Cleantech Ventures.

According to a German press release from BrainsToVentures and an article in the Financial Times’ German edition, both of which were originally reported by Earth2Tech, CellEra has raised $2 million and developed its first prototype.

CEO Ziv Gottesfeld, in an interview with Earth2Tech, confirmed the news and said that the $2 million is part of a larger investment round.

Gottesfeld also says that CellEra already is working with a major manufacturer and is integrating its fuel cells into backup power systems. CellEra plans to use its new cash to turn its working prototype into its first commercial product, Gottesfeld told Earth2Tech, adding that the company aims to have products ready for the market in two years.

According to the press release from BrainsToVentures, CellEra believes it can cut fuel-cell development and manufacturing costs by more than 70 percent by eliminating the most expensive material – platinum. Platinum currently costs $1500 per ounce, approximately double the price from a year ago.

Christian Schüetz, a at BrainsToVentures, told the Financial Times’ German edition that he expects CellEra to introduce fuel cells for hybrid cars by 2015.

Gottesfeld refuses to speculate on when CellEra's technology would be ready for vehicle applications, but he said that CellEra's technology could work “very nicely and cost-effectively” with batteries to extend the range of electric vehicles in the future.

CellEra, founded in 2007 by CEO Ziv Gotttesfeld and VP R&D Dario Dekel, raised an inital $2 million investment from Israel Cleantech Ventures in 2008. Later that year, Roger Saillant, a fuel cell industry veteran and former CEO of NASDAQ-listed Plug Power, joined CellEra's board of directors.

CellEra's CTO is Dr. Shimshon Gottesfeld, former CTO for MTI Micro and the director of the fuel cell research program at Los Alamos National Laboratory.

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Green Economy Conference in Tel Aviv

The annual Green Economy Conference, organized by Ernst & Young, The Marker, and Life and Environment (Chaim ve' Sviva), an umbrella organization incorporating the work of over 80 environmental organizations in Israel, is scheduled to take place in Tel Aviv on November 20th.
The organizers have put together an impressive agenda, which includes presentations from international cleantech leaders like Jeff Renaud (Director, Ecomagination, GE); Neil Auerbach (Managing Partner, Hudson Clean Energy Partners); Michel Goguen (General Partner, Sequoia Capital); Roger Saillant (Former CEO, Plug Power); Justin Adams (Head of Venturing, BP Alternative Energy); Shai Weiss (Managing Partner, Virgin Green Fund); and Nick Parker (Co-Founder and Chairman, Cleantech Group).

Israeli cleantech industry leaders participating in the conference include Glen Schwaber (General Partner, Israel Cleantech Ventures); Astorre Modena (General Partner, Terra Venture Partners); Booky Oren (President & CEO, Miya, Arison Group); Hillel Milo (Managing Partner, AquAgro Fund); and Tamar Naor (Founder, TN Ventures).

If you are in Israel this week, this event is a "can't miss" event.

I recently had a chance to speak with Itay Zetelny, Cleantech Leader for Ernst & Young Israel, about the Green Economy Conference and his take on Israel's cleantech industry.

JS: What are the origins of the Ernst & Young's Cleantech Conference?

IZ: The first CleanTech Conference took place in 2007 as an independent track within the WATEC Convention. The success of the event together with the enthusiastic feedback led Ernst & Young to organize its own event.

JS: What are the goals of the conference? Who should attend?

IZ: The object is to offer Israeli Cleantech entrepreneurs a unique opportunity to present their ventures to leading global investors and create a platform for in-depth discussions regarding possible partnerships and/or investment opportunities. In addition, we are aiming to raise the awareness of the business community as well as of decision makers to the growing importance and value of sustainability considerations in business today, vis-à-vis the climate crisis.The conference will be focusing on the Cleantech sector performance in global financial markets, climate change as a business opportunity, technology trends, project financing, collaboration and multinational companies’ perspective as well as rules and regulations. It is intended for R&D companies, project companies, VCs, investment banks, international technology providers and researchers.

JS: What is Ernst & Young's role in Israel's cleantech industry? What services do you and the Cleantech Advisory Group provide to investors and entrepreneurs?

IZ: Ernst & Young ia a pioneer in offering services to the growing Cleantech industry in Israel. Three years ago the firm has undertaken the task of developing a unique and comprehensive platform for water and energy companies. Today our Cleantech Advisory Group is the largest of its kind in Israel and offers ongoing assistance to entrepreneurs and companies which includes: identifying local and global VCs, management of technological cooperation, project financing, audit services and tax consulting services.

JS: What are the most important (emerging) trends in Israel's cleantech industry?

IZ: Over the first half of 2008 the amount invested in Cleantech companies reached $140 M as opposed to $122M in 2007. These sums do not include two major investments: “Better Place Project” - $200 M in 2007 and “Brightsource” - $115 M in 2008 which involved venture capital funds, PEs and banks. The substantial increase in investment is a result of the VCs' penetration into the market and the growing participation of traditional funds in Cleantech investments. As expected, since the end of 2006, most Israeli VCs have been investing in Cleantech, a trend which is expected to grow in the future.

Additional reasons for increased investments include:

1) Continuous search for technologies and Cleantech companies by Arison, Ofer Brothers, Dankner, Recanati and others

2) Foreign funds which are establishing local operations to ensure continuous exposure to the local industry including: Virgin, Sequoia and Greylock

3) International companies which are establishing local business development activities such as GE and Siemens

4) Israeli private equities which have begun expressing interest in the field and are currently searching for ways to penetrate it

5) Although angels are investing low sums of money in each company the total amount invested is significant

In conclusion, the local Cleantech industry has attracted much attention over the past year. And despite the sub-prime crisis which is affecting all markets, the Cleantech industry will continue to appeal to investors.

Roger Saillant, fuel cell industry veteran, joins CellEra board of directors

CellEra Inc., a developer of Platinum-Free membrane-based fuel cell technology (PFM-FC), announced today the appointment of Roger Saillant to its Board of Directors. The appointment is expected to bring Saillant’s extensive fuel cell management and company building experience to CellEra at a time when the start-up is preparing for its next phase of technology and market development with its disruptive PFM fuel cell technology.

Until recently, Dr. Saillant served as CEO & President of Latham, NY-based Plug Power (NASDAQ:PLUG), where he re-oriented the company towards production and commercialization, and led the industry in fuel cell system installs. Prior to PLUG, Saillant was Vice President and General Manager of Visteon Corporation’s (NYSE:VC) Energy Transformation Division, where he delivered $5.5 billion of automotive components globally to the Ford Motor Company and other automotive customers.

"CellEra’s disruptive technology holds true potential to alleviate major stack cost barriers and finally unlock fuel cells’ potential for massive market penetration. I believe CellEra’s management team has the proven track record and the capacity to execute," Saillant stated.

CellEra is a portfolio company of Israel Cleantech Ventures. CellEra's management team includes Dr. Shimshon Gottesfeld, CTO; Dr. Dario R. Dekel, VP R&D; and Ziv Gottesfeld, CEO.

Hat tip to Gene Dolgin, Analyst at Israel Cleantech Ventures, for sending me the announcement.

Related Posts:

CellEra raises $2 million from Israel Cleantech Ventures and BrainsToVentures

Global map of cleantech startups includes five Israel-related companies

Israel Cleantech Ventures invests in CellEra, fuel cell startup