vc & the clean energy revolution rankin
TRANSCRIPT
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Venture Capital and theClean Energy Revolution
Thomas Rankin @rankinthomas
May 16, 2012
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• Early-stage venture capital organization• Provider of incubation support• Accelerate commercialization of early-stage
technology companies• Focus on life sciences, IT and clean technology
What is Innovacorp?
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Manage $24M Clean Technology Fund
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What is Innovacorp?
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Enabling Early-Stage Companies through Venture Investment and Incubation
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• Creates resource efficiencies• Creates economic value for shareholders• Reduces environmental impacts• Provides superior performance at lower cost
What Clean Technology Means to Us
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In Many Cases, It Means Clean Energy
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What the Heck is Going On?
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“There’s Too Many of Them”
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World Population | 1950-2050
Source: US Census BureauQuote: Lieutenant Telsij – Return of the Jedi
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Give Me More, Give Me More
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World Marketed Energy Consumption | 1990 to 2035
Source: Energy Information Administration (EIA)
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Rising Prices for Commodities
8Source: McKinsey
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Clean Energy is Here in a Big Way
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Significant Investments
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Global Investment in Clean Energy | 2004 – 2011 ($Billions)
Source: Bloomberg New Energy Finance
5x since 2004
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It Keeps Growing
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World Marketed Energy Use by Fuel Type |1990 to 2035
Source: Energy Information Administration (EIA)
NUCLEAR?WTF?
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What’s the Result?
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Clean Energy is Bulking Up
Credit: Charles Atlas
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Wind = Big Install Numbers / Low LCOE
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Installed Global Capacity | 2010
Source: World Wind Report 2010
LCOE of 9.7 cents/kWh
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Solar – HUGE Cost Reductions
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Cost Reduction | 2011 – 2020
Source: McKinsey
LCOE of 14 cents /kWh
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• Humans consume 13 trillion watts of energy• Solar (at 8% efficiency) could produce 18 trillion
watts with minimal impact on land usage• Wind (at 40% efficiency) could produce about 7
trillion watts, under certain constraints
Good News – Wind + Solar Can Do It!
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As a Tag Team, Could Meet Our Energy Needs
That’s Awesome
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Add Footer
What’s the Result?
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So Why Are They Losing?
flickr: Photo Jonny
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Welcome to the Desert of the Real
flickr: Pembina Institute
*The Matrix Reference
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• Currently cheaper• Reliable• Acts as own form of storage• Easily transportable• Infrastructure is built to suit
Fossil Fuel is a Tough SOB
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And He’s Been Around the Block and Back
Status Quo is Fossil’s Best Friend and He Has a HUGE Expense Account
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What are We Bringing to the Fight?
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More Expensive Energy – It’s All About the Benjamins, Baby
Coal = 6-10 cents
NatGas = 4-7 cents
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What are We Bringing to the Fight?
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The Lovely, but Unpredictable Wind
Source: CAISO
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What are We Bringing to the Fight?
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The Scatological Solar
Source: Apt & Curtright
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What are We Bringing to the Fight?
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Expensive Methods of Delivering at Peak Demand and Managing Storage
Need Cheap, Grid-Level Storage
Source: LightSail Energy
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What Needs to Be Done?
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Energy Research is Critical
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We Need More Money and More Brains
Source: Bill Gates
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More Capital. Period.
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Clean Technology Seed and Venture Capital Investment
Clean Energy Asset Investments
Source: Cleantech Group
Source: Bloomberg New Energy Finance
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• It’s all about PRICE• Natural gas will shape the near term • Energy markets are extremely unpredictable• Demand will continue to rise• Environmental and regulatory considerations
will grow in importance
Leave the Rose-Coloured Glasses Home
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It’s About Ambition, Not Idealism
Focus on Making Big Impact Technologies Cheaper and More Reliable
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Where Does VC Play a Role?
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• Identify opportunities in the ecosystem• Work with early-stage technology companies• Give them the fuel [read: CASH] they need to
grow• Help establish projects and develop markets• Build strategic partnerships and accelerate
deployment
Venture Capital Likes Risk
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Addressing Big Market Inefficiencies is What We Love
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Competing on Price• Better renewable energy generation• Support low cost tech producers
Reliability and Storage• Smarter grids with consumer empowerment • New, innovative forms of storage
More Efficient Transportation• Advanced biofuels• Electric vehicles and more efficient ICE
Overcoming Fossil’s Inherent Advantage
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Must Realistically Address the Disadvantages and Create Solutions
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• Cheaper, more reliable energy generation• Energy storage• Smarter, more efficient buildings• Advanced biofuels
We See Lots of Opportunity
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And Nova Scotia Has a Role to Play
Making Investments in These Spaces
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SABRTech Inc.
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FIN
Follow me at @rankinthomas
Also adventuresincleantech.tumblr.com
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