BAY STREET-Green shoots start to sprout in green sector

* Cleantech financing deals on the rise

* Companies put IPOs on hold during credit crunch

* Investor interest seen returning

* Sector's revival "incredibly fragile"

By Susan Taylor

OTTAWA, June 28 (Reuters) - Canada's alternative energy sector is showing signs of a budding recovery, as companies resurrect financing deals and public offerings that withered with the recession, but that revival remains very fragile.

In recent weeks, companies ranging from water treatment firm GLV Inc (GLVa.TO: Quote, Profile, Research) to green building products maker Genesis Worldwide Inc (GWI.TO: Quote, Profile, Research) have raised millions of dollars in share and debenture offerings.

Geothermal firm Magma Energy Corp just raised C$100 million ($87 million) in a warmly received initial public offering and electric car maker Zenn Motor Co Inc (ZNN.V: Quote, Profile, Research) has filed a preliminary, unpriced prospectus to sell shares.

"It's the first green shoots appearing in the green energy area," said Duncan Stewart, analyst at DSAM Consulting.