Ethanol start-up gets $160 million in VC funding

You’ve got the pricing signals and policy decisions lining up

The alternative energy start-up Cilion has snared an additional $160 million in funding, one of the biggest venture capital investments ever in the ‘clean tech’ field.

With the latest investment, the company has now raised $200 million toward its goal of building eight ethanol plants by 2008, the first three slated for California. The company plans to produce ethanol from corn.

The investment comes at a time of rising business and investment interest in alternative fuels, including from some Silicon Valley venture capitalists. With oil prices hovering at $70 a barrel, California officials are embracing policies that seek to limit greenhouse gas emissions that contribute to global warming.

‘You’ve got the pricing signals and policy decisions lining up,’ said Nick Parker, chairman of the Cleantech Venture Network, a group that monitors and promotes investments in environmentally-friendly industries. ‘This is really a landmark deal.’

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