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Crystal Ball Comes up Cleantech
Vinson & Elkins LLP has opened an office in Silicon Valley, a region “rapidly emerging as one of the energy capitals of the world,” according to the international law firm.
The move may seem ironic for a firm based in the undisputed global energy capital.
Houston attorney Boyd Carano, managing partner of the new V&E Palo Alto office, sees opportunities in different forms of energy.
Carano says California is particularly strong in alternative technologies such as biofuels, photovoltaic and concentrating solar power, and advanced battery storage.
“Many of these clean-energy companies are going to develop their technology now and are soon going to reach a stage where they’re going to need to commercialize that technology,” Carano says. “And while there’s a tradition of investing in technology in California, there is less experience there.”
He notes complex commercial arrangements needed to commercialize energy technology differ from other technologies previously developed from Northern California.
Carano, Kyle Fox, and Margaret Sampson were the three V&E partners relocated from the Austin office to launch the new Silicon Valley office—the firm’s first on the West Coast as a whole.
Carano believes extensive experience in the energy sector will serve the trio well in advising clients on “everything that needs to be put in place in a commercial-scale clean-energy facility, such as a biorefinery or algae to fuels facility.”
The office will focus on areas such as energy project finance and development; emerging company formation and venture capital finance; and intellectual property and life sciences.
Carano says the amount of clean-energy investors located there also make the region attractive.
V&E expects the investors will be seeking out joint ventures, strategic alliances, and commercial arrangements with traditional energy players.
Partner Fox, who represents emerging and venture-backed companies, says Silicon Valley is leading the clean-energy revolution.
“Clean energy will require pairing Silicon Valley’s substantial strengths with traditional energy financing and regulatory and operational expertise,” notes Fox. “Our clients recognize that they need advisers who know both worlds.”
The V&E expansion intrigues Jack Plunkett, CEO of Houston-based market research firm Plunkett Research Ltd.
“This is interesting because it’s a reverse of the fact that in the past some of the Silicon Valley law firms would open an office in Texas,” says Plunkett. “This is an interesting switch on that.”
He says V&E’s positioning as a premier Texas energy law firm qualified to help Californians with renewable-energy efforts also makes a positive statement on Texas’ strengths.
At the same time, he cautions that not all branch openings in new territories prove successful in the long run.
Says Plunkett: “A firm has to have a lot of faith to go through the trouble and expense.”
Mary Ann Azevedo writes for the Houston Business Journal.
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