nurturing new technologies across multiple valleys of death...the cleantech investment fund...
TRANSCRIPT
Fueling energy change
Nurturing New Technologies Across Multiple
Valleys of Death
Dr. Mike Biddle, Managing Director
Why Am I Here?
Hockey Stick Growth
In Search of Unicorns
Real Hockey-Stick Growth
World Population
Explosion
There are many real-world examples
And some seem to be related
One this group knows well
And one consequence
The Oceans have been our heat sink
We always overestimate the change
that will occur in the next two years
and underestimate the change that will
occur in the next ten.
Don't let yourself be lulled into inaction.
BILL GATES
Why Do We Care?
Panel on Climate Change (IPCC)1 2014 findings that to ensure a better-than-even chance of remaining below a 2°C temperature rise, global annual emissions will need to be reduced 42%–57% by 2050 (relative to 2010), and 73%–107% by 2100. This will entail, more than any other factor, the profound transformation of energy systems through steeply reducing carbon intensity in all sectors of the economy. We call this transition “deep decarbonization” and our products, Deep Decarbonization Pathways (DDPs).
In Deep
Why Do We Care?
DEEP cuts: 90% reductionin emissions
per GDP!
Why Do We Care?
BAU = High Probably of High Temperatures
“Despite the global community’s best intentions to keep global warming below a 2°C increase above pre-industrial climate, higher levels of warming are increasingly likely. Scientists agree that countries’ current United Nations Framework Convention on Climate Change emission pledges and commitments would most likely result in 3.5 to 4°C warming.”
Evok Innovations
So how do we
fundamentally
accelerate the
pace of
innovation?
CleanTech Start-ups Advantages
Great Idea(s) and a vision for a better tomorrow
Low cost raw materials (sun, biomass, waste, etc.)
Good to great technologies
Motivated and “mission driven” team
Passionate and Dedicated Founder(s)
More efficient processes
The Valley of Death
So Why Do So Many Fail?
The “VoD” is well-known in the “Valley”
Large-scale Pilot(s)
First commercial
plantSmall-scale
Pilot(s)
debottle-necking
process optimization
business optimizationscaling
issues
Competition
Incumbents have huge advantages
Decades of experience optimizing:
• Technologies
• Plant and equipment
• Operating procedures
• Supply chains
• Products
• Market
Policy: lawmakers on their side and lobbying arms/trade organizations often trying to protect BAU, “business as usual”
Economies of Scale
Access to low cost Capital
How to Get Across the Valley?
Funding your adventure
The CleanTech Gold Rush
The CleanTech Gold Rush
The 60 Minutes “Take-Down”
Bubbles tend to Pop
The CleanTech Investment Fund Performance
FundVintage
YearCapital
Committed Net IRRInvestment
MultipleBraemar Energy Ventures II, L.P. 2007 $13,200,000 -3.90% 0.8x
CalCEF Clean Energy Angel Fund 1 2008 $1,326,600 -5.80% 0.8x
Chrysalix Energy 3 2008 $9,900,000 -4.40% 0.9x
Craton Equity Investors I, L.P. 2008 $6,600,000 -19.40% 0.4x
Element Partners 2 2008 $19,800,000 6.20% 1.2x
Hudson Clean Energy Partners 2008 $39,600,000 -2.30% 0.9x
NGEN 3 2008 $13,266,000 -0.40% 1.0x
Nth Power Fund IV 2007 $9,900,000 -21.90% 0.3x
RockPort Capital Partners 3 2008 $19,800,000 -6.40% 0.8x
USRG Power and Biofuels Fund II, L.P. 2007 $54,450,000 -5.80% 0.7x
USRG Power and Biofuels Fund III 2009 $39,600,000 -5.20% 0.9x
VantagePoint CleanTech Partners II 2008 $49,500,000 -20.30% 0.5x
Virgin Green Fund 2008 $19,800,000 -19.10% 0.3x
XPV Water Fund 2010 $4,950,000 0.1%
Totals $301,692,600 -8% 0.7
CalPERS Clean Energy and Technology Fund – 2015 results
The CleanTech IPO Plunge
ARRA: American Recovery and Reinvestment Act
Some Gov’t Funding follows the VCs
Adressing the Gap
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BASIC RESEARCH (IDEA)
UNIVERSITIES & RESEARCH INSTITUTES
TECHNOLOGY INDUSTRY
FEASIBILITY RESEARCH
TECH DEV & VALIDATION(TO PROTOTYPE)
COMMERCIALIZATIONTECH DEMONSTRATION
(FIELD TRIALS)
AngelsVENTURE CAPITAL
GOVERNMENT AGENCIES
TRL 1 - 2 TRL 5 - 7TRL 3 - 4 TRL 8 - 9
SOURCES OF FUNDING*
PRIVATE EQUITY, BANKS, OTHER
*Source: SDTC.ca. Illustrative not to scale.
INDUSTRY INDUSTRY
COSIAEVOK Innovations
Is This The Crisis of our Time?
Or the Opportunity of our Time?
According to Mercer, the average return for Generation’s global-equity fund, in which nearly all its assets are invested, was 12.1 percent a year, or more than 500 basis points above the MSCI index’s growth rate. Of the more than 200 global-equity managers in the survey, Generation’s 10-year average ranked as No. 2. In addition to being nearly the highest-returning fund, Generation’s global-equity fund was among the least volatile.
The Planet-Saving, Capitalism-Subverting, Surprisingly Lucrative Investment Secrets of Al Gore
COLLABORATION
LEVERAGE to
ACCLERATE
CREATE INTERSECTIONS
The Evok Innovations Model
BC Cleantech
Alberta Oil Sands
SiliconValley
First Four
Investments
Announced
Yesterday
Very large CO2 adsorption capacities under nearly all T,P conditions
Mild regeneration conditions for TSA, PSA, or VSA
Diamine + M2(dobpdc)
Step-Change CO2 MOF-based Adsorbents
Coal flue gas
0.15 bar
Natural gas flue gas
0.05 bar
Natural gas production
>1 bar
Cryogenic air distillation
400 ppm
Air recyclingBiogas productionEnhanced Oil Recovery
Large and Small CO2 Applications
Greenhouses
Evoking Inspiration A call to action
Who?
Governments?
Business?
NGOs?
You?
Companies are starting to talk about CO2 reduction
1,000,000 MT from 2008-2014
167,000 MT per year on average
Reduction of CO2e
1 MT/yr per Unilver employee
2014 GlobeScan/ SustainAbility Survey
CEO Polman: 'Unilever Sustainable Living Plan', a blueprint that will lead to company doubling in size while halving its carbon footprint.
182,000 MT from 2007-2013
26,000 MT per year on average
Reduction of CO2e
2 MT/yr per CCE employee
Is this Enough Better?
What in the world can I possibly do?
What Can Individuals Really Do?
going solar
one person biking & train
going vegan
~ 10
~ 3
~ 3
~ 20 MT/yr for 1 family
~ 5 MT/yr per person
~ 4
Only 4 lifestyle changes
air-drying clothes
RT flight London!(3)
It all starts with each of us
Leveraging your passion
Approx. MT/yr CO2 savings100,000 – 200,000
300 - 600 MT CO2 savings/employee
http://www.sciencedirect.com/science/article/pii/S004896
9715301017
Channeling Some Silicon Valley