The California Clean Energy Fund gave a glimpse of its investment portfolio on Tuesday, showing CalCEF has backed 10 clean-energy startups in five categories over the last year.

The startups include energy efficiency and demand response companies SpectraSensors, Miartech, and Synapsense; distribution and renewable energy companies Superprotonic, Fat Spaniel, and Solarcentury; clean fossil-fuel generation company CoalTek; transportation-related companies Imperium Renewables and Tesla Motors; and an unnamed company developing lithium-ion batteries.

With oil above $73 a barrel, many clean-energy startups are gaining widespread attention. Tesla Motors unveiled a speedy electric sports car last week, and Fat Spaniel announced it raised $3.5 million in April (see Energy Startup Gets $3.5M, Tesla Motors Powers Up, Q&A: Tesla’s Martin Eberhard).

Dan Adler, director of technology and policy development for CalCEF, said the fund has committed about 10 percent of the $25.5 million allocated to clean-energy startups.

“The VC community has been out fund-raising around clean energy, and now they are ready to invest that money,” he said. “Basically, the whole bundle of clean-energy applications is represented in this portfolio, demonstrating that this partnership of public and private efforts can work well.”

A look at the investment categories shows the investments match up with California policies in clean energy. “There’s a reciprocal, symbiotic relationship there,” said Mr. Adler.

Robert Wilder, chief executive of WilderShares, which manages two clean-energy funds, said the investments are a signal that money is continuing to flow into the clean-energy sector.

“Compared to the end of 2005 and the very early part of 2006, when there were sizable inflows into clean-energy startup companies, we’re seeing something of a pullback in clean-energy investing in the last few months,” he said. “I think what we’re now seeing is money flowing back into clean energy.”

Supply Constraints

The London-based research firm New Energy Finance, for instance, said earlier this month that investments in renewable energy and low-carbon technologies totaled $19.3 billion in the first half of the year, down 1.5 percent from $19.6 billion in the last half of 2005—but up 12 percent from the first half of last year.

Michael Liebreich, chief executive of New Energy Finance, said much of that was due to supply issues that were limiting growth (see Cleantech Private Equity Slows).

But while there are supply constraints, the demand is still growing strong, said Mr. Wilder.

“Some people have seen the supply-side issues as a reason to be a bit negative, but the demand is really there,” he said. “There has not been a letup in demand for clean energy. Everybody was shocked by $70-a-barrel oil, but following the huge run-up in late 2005 and early 2006, it’s hard to keep up that level of investment.

The CalCEF summary shows there are many worthy and good ideas in clean energy, he said, adding that for each of those companies, the CalCEF money can be significant.

“When you’re a small startup, a slug of investment allows them to hire more people, do more things, and get past the growing pains,” said Mr. Liebreich. “Certainly, these investments help.”

Bankruptcy Funding

Last year, the fund announced that three venture capital firms—Nth Power, Draper Fisher Jurvetson, and VantagePoint Venture Partners—would each invest and manage $8.5 million of the fund, along with some of their own money (see Cleaning Up and CalCEF to Fund New Center).

The companies said the $25.5 million would be invested in clean-energy companies, including renewables, energy efficiency, energy storage, and enabling technologies and services. All profits will be reinvested into the fund.

CalCEF is a $30-million fund that was created as part of the 2003 Pacific Gas and Electric bankruptcy settlement. The utility filed for bankruptcy after the California power crisis in 2001, and shareholders must pay the money gradually from 2004 to 2008.

With its investments in clean energy, CalCEF hopes to pull in returns and also benefit the state. All profits will be reinvested into the fund, which has the dual goals of encouraging economic growth in California around clean energy and reducing California’s dependence on fossil fuels.

“By partnering with three established investment managers to invest in companies that support California’s public policy goals, CalCEF is ushering in a new era in venture investment intelligence,” said CalCEF President Lisa Bicker.

Contact the writer: JKho@RedHerring.com