business

Doug Cameron, a noted scientist and investor with Minnesota roots, has left Silicon Valley's Khosla Ventures and plans to join Piper Jaffray's renewable-energy and clean-technology investment business this month as managing director and chief science adviser.

This is a significant move that underscores Piper's belief that there is money to be made in next-generation ethanol plants, wind power, solar power and energy-conserving technologies.

"We're thrilled to have someone of Doug's caliber," said Lois Quam, Piper's executive in charge of energy and health sectors. "The creation and growth of companies in the green economy is the economic opportunity of our lifetime. Doug operates in all these scientific and business areas."

Cameron, a former director of biotechnology at Cargill Inc., has been chief scientist at Khosla since its formation in 2006 as the world's biggest investment pioneer in clean technology and renewable energy. Piper, meanwhile, has financed projects that range from corn-ethanol plants in the Midwest to manufacturers of solar-power equipment in China.

"Doug brings an interesting background at Cargill and Khosla Ventures, the most active clean-tech investor in America," said Dan Carr, CEO of the Collaborative, which brings together Minnesota financiers and technologists through forums and networking. "Piper is our largest, brightest light in clean-tech investment banking. This can only be good for Minnesota and our energy opportunities."

Khosla Partners founder Vinod Khosla is an electrical engineer, a founder of Sun Microsystems and a legendary venture capitalist since 1986. He started his own firm in 2004 to focus on fueling the world with renewable energy that also cuts dependence on polluting coal and oil.

In an interview last fall, Cameron was critical of Minnesota's energy efforts beyond corn-based ethanol and wind.

However, he said this week that he's encouraged by local companies and promising technology.

"I believe the Midwest has the ability to be the epicenter of the bioenergy and clean-technology industry," said Cameron, who kept a home here in the western suburbs while working for Khosla. "Piper is a national and international firm in the [alternative-energy] business. We will encourage and stimulate early-stage developments and we'll raise capital for later-stage investments and initial public offerings."

Venture capitalists and other financiers invested a record $2.9 billion last year in so-called "clean tech," nearly double the 2006 figure, according to American Venture Magazine. Cameron, 51, a doctorate biochemical engineer educated at the Massachusetts Institute of Technology, was chief biotechnology boss at Minnetonka-based Cargill from 1998 to 2006. He moved to Khosla as Cargill, primarily a food company, spun out of some of its plant-based chemical and oil alternative ventures with partners. He decided to focus exclusively on the energy industry.

He stepped down as interim CEO of Segetis this year, a Twin Cities-based "green chemistry" firm into which Khosla invested $15 million in 2007. Cameron was replaced by Jim Stoppert, an acquaintance and former Cargill and Dow Chemical executive. Segetis is focused on developing agricultural feedstocks as substitutes for plastics and specialty chemicals made from petroleum.

The price of oil and related products has tripled since 2001, crimping our economy and driving down the value of the dollar, thanks partly to our huge fuel bill and excessive borrowing from the likes of Saudi Arabia and China.

The good news: the United States has the potential to fuel its economy with cleaner, greener energy over the next generation that will also mean huge investments in technology and jobs, reducing our dependence on foreign oil producers and cutting our huge trade deficit.

Cameron should be a significant player in the growing business of financing the energy-conserving technologies and energy-producing companies that will help get us there.

Neal St. Anthony • 612-673-7144 • nstanthony@startribune.com