July 14, 2008 - Metals and mining giant ArcelorMittal is backing a pair of new venture capital funds aimed at promoting clean energy technologies and "climate-friendly solutions relevant to the steel industry."

The company is partnering with Bessemer Venture Partners, Khosla Ventures, and Kleiner Perkins Caufield & Byers to finance a clean technology venture capital fund.

The new fund has already invested its first $20 million in Miasole, a California-based company that has found a cheaper way to mass produce highly efficient coatings for solar panels. Miasole says its new manufacturing process will help lower installation costs for photovoltaic (PV) systems.

ArcelorMittal has also committed $157 million to a separate fund that supports energy efficiency and renewable energy projects. The company says the new "carbon fund" will help generate the carbon credits it needs to comply with the EU Emissions Trading Scheme.

The global steel industry is struggling to find its place in an increasingly carbon-constrained world. Last October, the industry agreed to collect emissions data on its worldwide operations in preparation for undertaking voluntary emissions reductions.