Fueled largely by federal stimulus spending, many are predictinga modest upturn for the clean technology industry and maybe evensome clean tech IPOs.

But don't get too excited: Nobody's talking about a full-onrecovery.

“I think in 2010 you are going to see a lot of people going outthere to raise money,” said Faysal Sohail, managing director at SanFrancisco-based venture firm CMEA Capital. “I still think it'sgoing to be a tough environment to raise a lot of new capital forthese companies.”

Some technologies in the energy efficiency field are more likelyto score new money than solar or bio-fuels companies that requirebillions in venture capital and project finance to reach commercialscale, Sohail said.

Much of the capital that will prop up clean tech companies willcome from the federal government.

The stimulus program has targeted billions of dollars to cleantechnologies and renewable energy, but much of the money hasn'tlanded in bank accounts yet. Big winning sectors include smartgrid, bio-fuels and batteries. Those recipients of the stimulusmoney are expected to advance technologies and hire newemployees.

“A lot of the stimulus dollars have been committed, but have notbeen spent,” Sohail said. “That's all going to get spent in 2010and 2011.”

Plus, many predict a few significant IPOs in 2010.

The solar industry has begun showing renewed life. Thegovernment's grants-in-lieu-of-tax-credit program has helpedkick-start some activity. Plus, the 40 to 50 percent decline inmodule prices, driven by excess inventory built up in 2009, hasmade projects more economical.

“Going into the new year there's a lot of customer demand,” saidPaul Detering, CEO of Tioga Energy in San Mateo, Calif. “I don'tsee that slowing down.”

Banks have begun to start lending to solar firms again, thoughthe “pendulum hasn't swung back all the way” and isn't likely to,Detering said.