Nurturing New Technologies Across Multiple Valleys of Death Dr. - PowerPoint PPT Presentation

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

BILL GATES 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.

Why Do We Care? In Deep 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).

Why Do We Care? DEEP cuts: 90% reduction in 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 Passionate and Dedicated Founder(s) Great Idea(s) and a vision for a better tomorrow Good to great technologies Low cost raw materials (sun, biomass, waste, etc.) More efficient processes Motivated and “mission driven” team

So Why Do So Many Fail? The Vall lley of Death

The “ VoD ” is well - known in the “Valley” Competition First commercial Small-scale business plant scaling Pilot(s) optimization issues Large-scale Pilot(s) debottle- process necking optimization

Incumbents have huge advantages Decades of experience optimizing: • Technologies Economies • of Scale Plant and equipment • Operating procedures • Access to low Supply chains cost Capital • Products • Market Policy : lawmakers on their side and lobbying arms/trade organizations often trying to protect BAU, “business as usual”

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 CalPERS Clean Energy and Technology Fund – 2015 results Vintage Capital Investment Fund Year Committed Net IRR Multiple Braemar 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 0.7 -8%

The CleanTech IPO Plunge

Some Gov’t Funding follows the VCs ARRA: American Recovery and Reinvestment Act

Adressing the Gap TRL 1 - 2 TRL 3 - 4 TRL 5 - 7 TRL 8 - 9 TECH DEMONSTRATION FEASIBILITY TECH DEV & VALIDATION BASIC COMMERCIALIZATION (FIELD TRIALS) RESEARCH (IDEA) RESEARCH (TO PROTOTYPE) UNIVERSITIES & RESEARCH INSTITUTES TECHNOLOGY INDUSTRY SOURCES OF FUNDING* GOVERNMENT AGENCIES PRIVATE EQUITY, BANKS, OTHER VENTURE Angels CAPITAL INDUSTRY INDUSTRY COSIA EVOK Innovations *Source: SDTC.ca. Illustrative not to scale. 28

Is This The Crisis of our Time? Or the Opportunity of our Time? The Planet-Saving, Capitalism-Subverting, Surprisingly Lucrative Investment Secrets of Al Gore 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 .

COLLABORATION

LEVERAGE to ACCLERATE

CREATE INTERSECTIONS

The Evok Innovations Model Alberta Oil Sands BC Silicon Cleantech Valley

First Four Investments Announced Yesterday

Step-Change CO 2 MOF-based Adsorbents Diamine + M 2 (dobpdc)  Very large CO 2 adsorption capacities under nearly all T , P conditions  Mild regeneration conditions for TSA, PSA, or VSA

Large and Small CO 2 Applications Coal flue gas Natural gas flue gas Natural gas production Cryogenic air distillation 0.15 bar 0.05 bar >1 bar 400 ppm Enhanced Oil Recovery Greenhouses Biogas production Air recycling

Evoking Inspiration A call to action Who? Governments? NGOs? Business? You?

Companies are starting to talk about CO 2 reduction Reduction of CO 2e 1,000,000 MT from 2008-2014 167,000 MT per year on average 1 MT/yr per Unilver employee CEO Polman: 'Unilever Sustainable Living Plan', a blueprint that will lead to company doubling in size while halving its carbon footprint. 2014 GlobeScan/ SustainAbility Survey

Is this Enough Better? Reduction of CO 2e 182,000 MT from 2007-2013 26,000 MT per year on average 2 MT/yr per CCE employee

What in the world can I possibly do?

What Can Individuals Really Do?

It all starts with each of us Only 4 lifestyle changes ~ 10 going solar one person biking ~ 3 & train ~ 3 air-drying clothes ~ 4 going vegan MT/yr for 1 family ~ 20 ~ 5 MT/yr per person (3) RT flight London!

Leveraging your passion Approx. MT/yr CO 2 savings 100,000 – 200,000 300 - 600 MT CO 2 savings/employee http://www.sciencedirect.co m/science/article/pii/S004896 9715301017

Channeling Some Silicon Valley