Nurturing New Technologies Across Multiple Valleys of Death...The CleanTech Investment Fund...

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

28

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