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Finnish Cleantech Venture

Report 2011

Finnish Cleantech Venture Report 2011

was produced in the context of Nordic Cleantech Open, a

competition and program that identifies, upgrades and

highlights the very best of the upcoming Nordic

cleantech stars. With official backing in all Nordic

countries and heavy involvement from the investment

community this initiative aims to have a real impact on

the acceleration of clean technologies. The report you

will now read contributes to this aim by identifying and

highlighting top Finnish cleantech ventures.

The report production team:

Tarja Teppo and Timo LinnainmaaCleantech Invest

Svetlana Gross and Alexander LidgrenCleantech Scandinavia

Teija Lahti-Nuuttila and Kari HerleviTekes – the Finnish Funding Agency for

Technology and Innovation

Mari Pantsar-Kallio and Mika SulkinojaLahti Science and Business Park

www.nordiccleantechopen.com

Partners:

ABB Technology Ventures

Cleantech Finland

Nordic Innovation Centre

Table of Contents

Finland – ideal breeding ground

for cleantech innovations 04

Venture and asset investments 2007 – 2010 05

R&D and policy developments 07

Areas and ventures to watch in 2011 08

Forestry meets cleantech 08

MetGen 08

Ultranat 09

BT Wood 09

Gasek 10

Electrification of transport 10

AMC Motors 10

Electric Ocean 11

European Batteries 11

Visedo 12

Efficiency improvements in resource and energy use 12

Savo-Solar 12

Enersize 13

One1 13


inland is in many ways a cleantech frontrunner. With an exceptionally high share of renewables in energy production, long traditions in energy efficiency in industry, strong government support for R&D and a large number of leading companies in areas such as

biofuels, power electronics, combustion and gasification technologies, wind turbine components, and combined heat and power, Finland is an ideal breeding ground for new cleantech innovations.

In addition to the continuing success of large Finnish enterprises in several cleantech-related areas during recent years, we have witnessed the emergence of a growing number of cleantech start-ups. Spin-offs from corporations, serial entrepreneurs entering the cleantech space, and newly founded technology companies based on years of research at Universities are attracting investors seeking unique cleantech opportunities.

Finland is one of the world’s leading countries in renewable energy utilization. Despite a difficult year for hydro power (relatively dry) and a downturn in the pulp and paper industry leading to diminishing use of black liquor as an energy source, 30% of electricity was produced from renewables in 2009. The national goal for the share of renewable energy in total energy production is 38 % by 2020, which is among the highest in EU. In addition to high utilization of renewables in energy production, Finnish industrial companies have for several years systematically improved energy efficiency. Guided by voluntary energy efficiency agreements between the state and Finnish industry during 1998-2006, companies voluntarily invested over 360 million euros in energy efficiency. This has helped to save 5.5 TWh of fuel and 1.5 TWh of electricity each year. Investments in efficiency improvements have, as expected, proven to be the most cost effective way to reduce CO2 emissions.

Wood is the most important renewable energy source in Finland. It accounts for almost 80 % of renewable energy production. Finnish pulp and paper mills produce much of their own energy from black liquor, a wood-based side stream from the pulp manufacturing process. Large pulp and paper companies are now entering into the biofuel sector with several large scale projects under development. Biomass is also increasingly used in heat and power production as a substitute for fossil fuels. In addition to energy, wood has

great potential for more wide-spread use as carbon neutral and biodegradable construction material. The use of wood and other biomass for new innovative renewable materials is also an area of increasing interest. Forests are becoming increasingly important as a renewable asset that can be processed into valuable products.

Power electronics is a strong industry branch in Finland. Energy saving electric drives, energy efficient generators, and power quality components are examples of leading technologies developed in Finland. Now these competencies are finding a new exciting application area: electric vehicles. Some of the world’s first fully electric and plug-in hybrid cars are manufactured in Finland, including Norwegian Think City and US based Fisker Karma that have chosen Valmet Automotive as a manufacturing partner. The manufacturing cluster building around electric vehicles and related infrastructure technologies in Finland promises growth opportunities for several high-tech companies.

Cleantech ventures in Finland are very diverse in terms of technology. New companies are being formed in the areas of wind, solar, wave, and bioenergy, energy efficiency in industry, buildings, energy infrastructure and lighting, energy storage and electric transportation, recycling and new materials as well as water purification and environmental metering. In this report, we will take a closer look at three areas that are of increasing interest among investors: forestry meets cleantech, electrification of transport, and efficiency improvements in resource and energy use.


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Finland – ideal breeding ground for cleantech innovationsTarja Teppo and Timo Linnainmaa, Cleantech Invest

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leantech Scandinavia began monitoring cleantech investment activity in the Nordic region in the beginning of 2007. Then ‘cleantech’ was a rather exotic notion for many investors. Information presented in this report builds on data gathered

during these 4 years. In Finland, with its strong tradition of high-tech entrepreneurship and innovation, cleantech was a remarkable investment category from the start. Established technology-oriented venture capital funds such as Conor Venture Partners, Eqvitec, VNT Management and Ahlström Capital had organically incorporated cleantech into their investment scope.

Apart from a significant number of privately operating investors, the Finnish government continues to make significant efforts in supporting start-up and growth stage companies through grants, development projects as well as equity investments. Organisations such as Finnish Industry Investment, Sitra and Veraventure are mandated to invest public funds as equity into companies from pre-seed to expansion. They have been involved in at least 50% of the venture capital private equity deals in Finnish cleantech companies over the last 4 years. One of the significant features of the investment climate in Finland is this strong collaboration between venture capital and public financiers.

When looking at amounts invested in Finland over the last 4 years one deal outnumbers everything else. The largest, and still unparalleled, venture investment in the history of Nordic cleantech took place in Finland in 2008. A 120 million euro investment in WinWind made by Masdar Cleantech Fund was a true sensation and an inspiration to everyone in the business. WinWind was a pioneer among the Finnish companies who reached out to the international investor market in search of a large amount of growth capital.

There was a clear growth trend between 2007 and 2009. If the WinWind investment is excluded, all the other investments in 2008 amount to 19,5 million euros. Figures give an indication of trends rather than exact information due to the fact that close to 40% of the deals that Cleantech Scandinavia has registered in Finland have undisclosed or confidential amounts. This also means that numbers presented here are conservative.

Finland’s greatest asset is its entrepreneurs

With regard to the number of investments, Finland was subject to same trends as the rest of the Nordics. Between 2007 and 2008 the numbers doubled (from 16 to 33 deals) and in 2009 the number of deals was as low as 13. Most of the deals in 2009 were made into companies in later development stage with higher amounts per investment. In the first half of 2010 there was already 7 deals registered in the private equity segment giving a clear indication that significant growth in total numbers is to be awaited by the end of the year.

As to the technology areas that have rendered most investor interest from the investment point of view, three stand out:

Energy efficiency – in particular technologies related to improvements in power electronics, smart metering for home appliances, monitoring equipment and smart grids, efficiency improvements in industrial applications.

Energy storage – various types of batteries such as flexible recyclable flat batteries for disposable applications and Li-Ion batteries for applications in electric vehicles, solar charged batteries for portable devices.

Advanced materials – coatings with different functionality, wood treatment technologies, functional composite materials including advanced carbon nano-materials.

Regardless of focus areas however, we would like to appoint the Finnish entrepreneurs as another area that stands out. We view Finnish entrepreneurs as driven, co-operative and market oriented. All those traits are crucial to grow a company.


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Venture and asset investments 2007 – 2010Svetlana Gross and Alexander Lidgren, Cleantech Scandinavia

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Largest deals

Positive outlook into the future

Some of the largest deals over the last years:

OptoGan - developer of LEDs with high brightness. Received in 2007 an investment of 5 million euros from VNT Management, Finnish Industry Investment and Danish Via Venture Partners. Exit in the end of 2008 when the company was acquired by a group of Russian investors (ONEXIM, Russian Corporation of Nanotechnologies and Ural Optical and Mechanical Plant).

WinWind - producer of low speed wind turbines. Received in 2008 the largest venture investment in the Nordic cleantech so far - 120 million euros from Abu Dhabi’s Masdar Cleantech Fund.

European Batteries - producer of Li-Ion batteries for electric vehicles. Received in 2009 15 million euros from undisclosed private investors and 5 million euros in grants from Tekes and the European Union for construction of its first full scale production facility.

Eniram - provider of systems for decision support and energy efficiency improvements in shipping. Received in 2009 5 million euros from Norwegian Ferd Venture, Conor Venture Partners and Finnish Industry Investment.

Preseco - supplier in integrated waste management solutions. Received in 2009 10 million euros from Pontos and Finnvera.

Wello - wave energy development company. Received in spring 2010 5,5 million euros from VNT Management, Tekes and Veraventure.

After 2009, when all investment activities, cleantech being no exception, experienced relative downtime, 2010 has followed with renewed activity. Finland used the recession time to re-assess the grand strategy and focuses now more on supporting and developing early stage companies. In the first half of 2010 two new funds with seed stage investments in their scope have been established:

Conor Venture Partners raised 46,5 million euros for Conor Technology Fund II. Final closure is expected by the end of the year. The target is early stage technology companies from the Nordic countries and the Baltic states. It is not cleantech specific but with a strong cleantech focus. Among the participants are European Investment Fund, Finnish Industry Investment, Finnish pension funds and other institutional investors.

Future Fund (CFF). The target companies are co-financed through grant funding as part of the VIGO Program managed by the Finnish Ministry of Employment and the Economy. Fund investors include private investors as well as listed Incap Group. The fund invests in early stage Finnish cleantech companies, which are selected to participate in the VIGO acceleration programme. Overall funding package for a portfolio company is typically 1-2 million euros. By October 2010, CTI had made three investments from the CFF fund.

Finland widely uses the practice of co-investment between private venture capital and equity funds administered by publicly owned organisations or in some cases public grant financing. This approach not only gives financial support to companies, but also makes it easier for an investor to step in. Two of the very latest deals made (September 2010) are a good illustration of this:

Cooperation between Ahlström Capital and the Energy Programme of Sitra, the Finnish Innovation Fund in an investment of 4 million euros in NEAPO OY, a provider of energy efficient building solutions for modular construction; and

Cooperation between two private investors Inventure and Infosto and Tekes, the Finnish Technology Development Agency, who joined forces in a 4,7 million euro investment nanotechnology company Canatu Oy.

A vivid national VC community helps in attracting international capital. This seems to increasingly be the case in Finland. For example VNT Management participated in 4 cleantech deals and Veraventure in 3 during the first half of this year. Cleantech Invest has made 3 cleantech investments during the latter half of 2010. International investors such as Norwegian Energy Future Invest and German Semikron International, have also invested Finnish companies during 2010.

With the start of operations of two funds, renewed activity of the country’s strongest VC players, as well as continued activity from public actors many signs are positive on the Finnish cleantech investment scene. 2010 shows good activity levels and we believe the Finnish Cleantech Venture Market has the prospect of a very bright future.

Cleantech Invest (CTI) announced the first close of Clean


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espite the economic situation in the world politicians still seem committed to the ambitious climate and energy policy targets. In many countries economic stimulus packages are targeted specifically to cleantech areas.

Increasing environmental awareness is moving values and business activity towards greater sustainability. Increasing price of energy and raw materials are also strong drivers towards sustainable development and cleantech business growth.

In Finland the Ministry of Employment and Economy published a subsidy scheme for promotion of renewable energy in spring 2010. Subsidies reaching almost 750 million euros were estimated to lead to investments of 3-4 billion euros. The main areas are bio- and wind energy. This creates an extensive market for energy technology and also for new technology demonstrations especially in the area of second generation biofuels. The key purpose is to contribute to meeting the national objective set by the EU for increasing the utilization of renewable energy sources.

In addition to renewable energy more and more attention is paid to energy efficiency and sustainable use of raw materials. According to International Energy Agency the biggest potential in climate change mitigation is in using energy more efficiently. This will create new business opportunities for energy efficient solutions.

In Finland a new action plan for energy efficiency was launched in 2010 in order to meet the EU target of decreasing energy use by 20 % until the year 2020. The action plan consists of several activities. For example in the building sector there is already a clear shift from conventional systems to innovative sustainable solutions. Finland was the first country to publish a national strategy of natural resources. According to the strategy, Finland intends to be a frontrunner in producing new products from renewable bio-resources substituting products based on fossil fuels and scarce natural resources.

Need for new growth companies

Finland is a country of innovations. R&D investments in Finland reach 4 % of the GDP which is one of the highest shares in international comparison. Finland possesses top level know-how in many cleantech areas such as power electronics, combustion technologies and environmental monitoring. Finland also has globally operating successful large companies.

To boost the development of Finnish cleantech start-ups a lot of new activities and funding instruments have been launched recently, many of them administered by Tekes. Tekes is the main public funding organization for applied research and development in Finland. Tekes offers companies funding and expert services for development projects that help companies to promote international growth, rejuvenate their business, boost growth and success on the market and increase networking and international competitiveness.

A new form of financing is funding for young innovative companies for overall development of business operations. The purpose of this funding is to boost the growth and internationalization of the most promising small businesses. Tekes also has a new kind of cooperation with private venture capitalists called VIGO. In the cleantech area Tekes´s partner in VIGO-funding is Cleantech Invest. Cleantech Invest has launched a cleantech start-up acceleration and seed funding operation as part of the VIGO Program managed by the Finnish Ministry of Employment and the Economy.

Finland is an excellent location for testing new products and services. Businesses benefit from the country's advanced 'Living Lab' environment where users, companies, researchers and public institutions are joining forces to form problem-solving communities. The network of Strategic Centres for Science, Technology and Innovation offers top research institutes and businesses a new way of engaging in close, long-term cooperation. CLEEN Ltd (the Strategic Centre for Energy and Environment) has started research programmes for smart energy grids and energy markets, environmental monitoring and future combustion engines. In addition, the Finnish Cleantech Cluster Programme led by Lahti Science and Business Park is a network of four centres of expertise specialised in clean technology: Lahti, Kuopio, Oulu and Uusimaa. Up to June 2010, this cluster had been involved in promoting the creation of more than 65 new cleantech companies and more than 500 jobs in the sector.


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R&D and policy developmentsTeija Lahti-Nuuttila, Tekes – the Finnish Funding Agency for Technology and Innovation

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Growing R&D investments

Tekes funding for energy and environmentally sound solutions reached a new record of 230 million euros in 2010. This was more than 40 % of overall funding in Tekes. More and more companies are seeking new business opportunities in the cleantech area. Tekes is runs a number of programmes, with total budget of more than 600 million euros, to boost cleantech development in specific sectors of technology or industry:

The BioRefine Programme generates new and unique expertise in the processing of biomass and applies it to the creation of processes, products and services related to biorefineries.

new applications development, business competence development and overall competitiveness of the Finnish water sector.

The Sustainable Community Programme develops sustainable and energy efficient areas and buildings. The target of the Fuel Cell Programme is to speed up the development of fuel cell applications and provide links to Europe.

The Groove Programme helps companies to network and develop their business skills and in the renewable energy area.

The Water Programme contributes to technology transfer,


Areas and ventures to watch in 2011

Due to traditional Finnish strengths in the area of forestry and wood processing, the Finnish cleantech venture scene has interesting new companies that work in the following areas:

Introduction of recyclable and eco-friendly biochemicals, biomaterials and wood-based composite materials to replace traditional oil-based and energy intensive products.

Introduction of biotechnology, nanotechnology and material technology applications to paper & pulp industry and forestry in general.

Development of new value chains and higher value-add products in the forestry and paper sector.

Four ventures worth following in 2011: MetGen, Ultranat, Gasek and BT Wood.

Metgen

Business ideaMetGen Oy develops industrial enzymes for solving critical industrial issues in pulp&paper and biofuel markets. MetGen’s mission is to build profitable business and contribute to sustainable development via commercialization of industrial enzymes worldwide. MetGen develops enzymes to be used for various important steps in pulp and paper industry, including crucial energy saving steps. The company´s products can also be used in bioethanol production from cellulosic waste and removing phenolic compounds from waste waters.

Market validationMetGen is running several industrial pilots in the area of paper&pulp, waste water treatment and biofuels.

ProblemAs an example from the pulp&paper industry, various attempts were made to reduce energy consumption during preparation of paper. Until MetGen introduced the MetZyme concept, it was not possible to achieve desired energy savings without changing production process at pulp&paper mill.

Forestry meets cleantech

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SolutionMetGen’s proprietary technology provides a significant advantage over existing approaches in regards to selectivity, productivity and the eventual cost of desired industrial enzymes or micro-organisms. Genetically modified enzymes are tailored or adopted to industry conditions. Thus MetGen enzymes contain properties, such as thermastability, that are not available in naturally derived enzymes.

Revenue modelMetGen’s business model is technology licensing. MetGen also supplies enzymes to customers in selected areas.

Market opportunityCompetitive solutions are based on fungal laccases, which are expensive to produce. Fungal laccases cannot be tailored for customer conditions. New, effectively priced enzymes from MetGen open new opportunities for industrial applications of enzymes.

Competitive advantageGenetically modified enzymes are tailored or adopted to industry conditions (as opposite to using naturally derived enzymes).

Business ideaUltranat provides an alternative for costly ash handling in power plants by turning waste ash into valuable products. Ultranat currently focuses on the handling of bio energy power plant ash.

Market validationUltranat has several power plant pilots utilizing the Ultranat ash handling method.

ProblemEnergy production produces ash as waste. Ash is special waste and subject to waste tax. Consequently, handling and storage of waste ash is very costly for power plants.

SolutionUltranat has developed and protected a unique method for processing ash. The Method enables the ash from a power plant to be processed to an EoW (End of Waste) product. As a result the power plant will not have to pay any waste taxes and the cost of ash handling and storage is significantly reduced.

Revenue modelThe company generates revenue from ash handling service fees. Additional revenue is derived from value-add products derived from ash such as fertilizers.

Ultranat

Market opportunityAsh from power plants is a global waste handling problem, most of which is not utilized but is piled in landfills. As an example, the bioenergy power plants in Finland produce 500.000 tons of ash per annum, of which only a small fraction is currently utilized.

Competitive advantageUltranat has developed a unique method where the ash is turned into an End-of-Waste product with re-use value.

Business ideaBT Wood Ltd provides ecological toxic-free wood treatment solutions for industrial customers. BT Wood's objective is to solve the environmental challenges faced by the wood products industry by offering its customers and partners complete wood treatment solutions that comply with new environmental legislation. BT Wood products include fire retardants for wood, termite protection and wood preservatives.

Market validationBT Wood Ltd has received extremely positive feedback for its products and has signed co-operation agreements with major wood industry players globally.

ProblemCurrently, the share of non-toxic chemicals used in wood treatment is negligible due to their high cost. However, tightening environmental regulation is rapidly increasing the use of non-toxic chemicals bringing an unsustainable cost burden to the wood products industry.

SolutionThrough its technology BT Wood Ltd enables its customers to comply with new environmental regulation at a lower cost and higher performance compared with competition.

Revenue modelBT Wood® will supply its strategic alliance partners with chemicals and all the necessary know-how to implement ecological wood treatment. Revenue is based on the sales of treatment chemicals, which are produced by the company’s supply network.

Market opportunityThe global wood products industry size in 2009 was 62 billion euros. The global wood preservation market (excluding fire and termite protection) is ca. 1500 million euros. In addition, the markets for termite protection are only in USA app. 2 billion euros (currently applied mainly in post-construction). The need for non-toxic wood treatment chemicals is global and imminent.

Competitive advantageBT Wood® products are cost competitive, environmentally friendly, versatile, effective, and safe of use. The company has several patents approved and pending worldwide.

BT Wood


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SolutionThanks to the small scale CHP power plant, energy and heat can be produced near the source of the raw material and near the place of usage. Therefore biomass used as fuel doesn’t have to be transmitted long distances, reducing costs.

Revenue modelGasEK provides its customers sales and development work of CHP power plants, operator training and consultation, and maintenance and spare part delivery.

Market opportunitySmall-scale combined heat and power production (CHP) will play a key role in providing future renewable energy solutions for homes, farms, and facilities such as greenhouses and sawmills, as well as heating plants.

Competitive advantageGasEK’s power plants incorporate a pyrolytic gasifier, a water-washer to remove impurities from the gas, a gas burner, and an internal motor driving a generator that produces electricity for the local grid. They also have built-in control systems, automatic ash removal systems, and the necessary connections to the electricity grid and heating networks.


Electrification of transport

In the area of electrification of transport, both on land and sea, the Finnish cleantech venture scene has interesting new companies that work in the following areas:

Powertrain and electric vehicle technology in generalBattery technologies and energy storage in generalControl and automation technologies

Four ventures worth following in 2011: Electric Ocean, Visedo, AMC Motors and European Batteries.

Gasek

Business ideaGasEK Oy was established in 2008. The company manufactures, markets, and sells small CHP power plants that run on woody biomass as a fuel source. GasEK CHP plants exploit a new gasification technology to produce both heat and electricity. The plant fits into a purpose-built small container for convenient transportation.

Market validationA pilot power plant has been connected to a local district heating facility in Reisjärvi in Central Finland, meeting all of its electricity needs and generating enough heat to meet demand during the summer.

ProblemIncreasing the use of biomass in electricity and heat production is high on the agendas of governments seeking ways to meet greenhouse gas reduction targets. However, the high transportation cost of biomass makes its use feasible only in areas where biomass is available at short distance.

AMC Motors

Business ideaAMC Motors’ business idea is to design and start manufacturing of light electric cars for L6e and L7e classes. The AMC Sanifer Electric Minicar is targeted for postal service providers, private logistics service providers, cities, sport resorts and also for individuals with green values.

Market validationFirst proto cars of L6e class have been tested and a pilot series has already been shipped to Finland.

ProblemElectric cars are generally seen as a key solution to reduce the CO emissions of traffic, globally. However, currently available 2

electric cars are expensive and do not provide a cost-competitive alternative for the internal combustion engine.

SolutionAMC Motors is entering the electric car market with a light L6e class vehicle, which is significantly less expensive than currently marketed electric vehicles which are heavier and larger in size.

Revenue modelSales and manufacturing of electric cars is based on standard components from leading suppliers to keep cost level reasonable. Large scale mass manufacturing will be located in low labor cost country close to the fast growing markets.

Market opportunityThe electric car market is emerging and segmentation is developing rapidly, providing opportunities for new entrants. Competitive advantageAMC Motors’ competitive advantage is based on unique design in solid aluminum frame, separate front and rear suspension systems, Li-ion batteries from reliable suppliers and a clever battery monitoring system.

Business ideaLeading developer and provider of inboard electric propulsion systems for new displacement hull pleasure boats. Products are alternatives to diesel engines, more energy efficient, silent, secure, reliable, care-free, compact and do not pollute. For boat yards quick, simple, light and clean to install. Products are complete, integrated, productized (high design & quality), including propulsion, gear, motor, cooling, controls, lithium batteries and control system.

Market validationThe existing market of electric inboard, sail drive propulsion in Europe is estimated to be around 750 systems per year.

ProblemPeople seek alternatives for polluting and noisy diesel engines for pleasure boats.

SolutionElectric Ocean will offer a completely redesigned electric propulsion system which brings out the best features of electric motors and optimize the propulsion efficiency to the maximum. The products fall in to the power segment where the price is not the key driver for the consumers’ decision-making. This assures the possibility to have a premium-price, use high quality components and assure good quality of the end product.

Revenue modelThe business model is based primarily on direct, personal sales of propulsion systems for new boats to boat yards. The boat yards offer the propulsion unit as a part of the new boat for the end customer.

Market opportunityElectric inboards is a growing portion of the market with only few players with undeveloped products.

Competitive advantageThe electric propulsion players are very small with poor products. Electric Ocean's products are designed to match the best performance figures with extremely high reliability.

Electric Ocean


European Batteries

Business ideaEuropean Batteries Oy provides battery systems for electric vehicles, industrial machinery and energy storage solutions.

Market validationTightening emission regulations in Europe require commercial traffic, such as city buses, taxis and delivery vans to gradually be hybrid or fully electric. In addition to transportation, large Li-ion battery systems are needed in industrial applications for cutting down fuel costs, stopping exhaust fumes indoors and for replacing existing lead-acid batteries in certain applications. There are also several uses in energy grids, UPS and other applications.

ProblemBattery systems using previous battery technologies (lead-acid, NiMH) have been too heavy and large for mobile solutions. Also the previous Li-ion technologies, used in laptops and mobile phones, have not been suitable for large systems.

SolutionEuropean Batteries’ Li-ion batteries provide over than twice the energy in weight and volume compared to the previous technologies, and it is completely suitable for large battery systems even up to MWh sizes.

Revenue modelEuropean Batteries takes care of the entire value chain: from cell design and manufacturing and electronics design to integrating the battery system into customer’s application.

Market opportunityEuropean Batteries is the first in Europe to have factory production capacity of large Li-ion batteries. The market for electric vehicles is currently nascent but growing very rapidly – the timing of the company could not have been better.

Competitive advantageThe company has factory production capacity of large Li-ion batteries and battery systems:

Excellent product characteristics including energy, life and safetyExtensive networks within the global battery market

Li-ion

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SolutionBy applying the latest electrical drives technology, Visedo provides compact generators, motors and inverters designed together with customers for heavy mobile work machine applications.

Revenue modelSales of electrical drivetrains or its components through OEM (Original Equipment Manufacturer) annual supply contracts. Efficient supply combining the benefits of the low cost component production with dedicated assembly site.

Market opportunityIn the future, global market for complete electrical drive trains for heavy mobile work machines can be more than 400-500 million euros.

Competitive advantageDeep technology know-how (PMAF,PMRF, SRPM machines), close co-development with customers, management has relevant global business knowledge, solid financing and no ‘mother company elements’ to slow down the decision making and development of the company. Last but not least, a personnel that is very committed.


Efficiency improvements in resource and energy use

Efficiency improvements both in energy and resource use have been identified as an interesting area. Promising Finnish cleantech ventures are seen especially relating to the following areas:

Industrial energy efficiencyLonger lifetime and material re-use

Three ventures worth following in 2011: Savo-Solar, Enersize and One1.

Visedo

Business ideaVisedo provides electric drivetrains globally for heavy mobile work machine applications. Visedo’s own core products are compact motors, generators and inverters for harsh environment. Visedo has unique control and application software. The products and applications are developed together with selected customers.

Market validationAccording to market studies, heavy mobile work machine manufacturers have expressed their interest in partial or full electrification of their machines. Visedo has already (operations started January 2010) piloting projects with some world-class work machine brands.

ProblemPrice of the fuel is increasing, emission restrictions are getting tougher, end customers require lower noise levels and better performance for their machines. Depending on the level of the machine electrification, these problems can be solved partly or fully. However, electrical traction lines need to be designed for this environment. They need to be compact and last in harsh operational environment and software need to be open enough for customer applications.

Savo-Solar

Business ideaSavo-Solar develops, produces and sells solar thermal collectors with improved efficiency. The first industrial collector is a flat plate collector having a patented nanostructured multilayer coating on the absorber and a new absorber structure.

Market validationIn the solar thermal market key drivers are energy efficiency, costs efficiency, long life time and easiness of installation. Savo-Solar works in partnership with large industrial players in building integration, system development and integration.

ProblemExisting coating technologies have problems to produce absorber surfaces, which can stand higher temperatures (>200 oC) without losing efficiency. This limits the development of new cost effective solutions of thermal solar energy.

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SolutionSavo-Solar’s patented nanostructured multilayer absorber coating works up to 700 oC. Savo-Solar is using its own advanced PVD and PE-CVD surface coating processes. With the new coating Savo-Solar is able to produce thermal collectors having higher absorber efficiency – throughout their longer life time.

Revenue modelSavo-Solar Oy operates as an ODM (Original Design Manufacturer) producer for leading solar thermal brands. Production and marketing is based on strategic partnerships with leading companies in the industry.

Market opportunity2The solar thermal market in EU is 4,0 million m of collectors

representing about 10 % of the global market. The annual installed solar thermal capacity equals 20 GW, globally. Annual growth is forecasted to be 10-25 % up to year 2020. Market growth is expected from new application areas such as solar district heating, process heating and solar cooling.

Competitive advantageSavo-Solar collectors’ main competitive advantages are based on the proprietary coating technology leading to higher energy efficiency and longer lifetime.

Business ideaEnersize Oy provides energy efficiency solutions enabling significant cost reductions and energy savings for industrial companies. The Enersize service concept optimizes industrial customers’ compressed air systems, which account for a very large share of overall energy usage in industrial facilities in various industries.

Market validationThe Enersize energy saving solution has been successfully tested with first customers, potential customers are lining up and the company is now preparing for rapid growth.

ProblemCompressed air represents ~10% of industrial electricity usage. The use of compressed air is typically highly inefficient, generating unnecessary energy costs for industry.

SolutionEnersize service package is based on extensive compressed air business understanding, proprietary control software and a new business concept to generate compressed air energy savings.

Revenue modelRevenues are based on energy saving projects’ fixed service fees, savings shared with the customer and annual license fees. The Enersize energy saving concept is easily scalable.

Market opportunityEnergy efficiency technologies are the most cost efficient means to reduce global CO2 emissions. Compressed air consumes ~4% of all electricity globally, providing vast opportunities for energy saving.

Enersize

Competitive advantageThe Enersize service concept includes an on-site evaluation, optimization software package, and customized improvement project for each customer. The company’s successful track record of projects and the optimization software it has developed create a unique competitive advantage in the compressed air niche.

Business ideaOne1 provides renewable heat as a service to households and businesses. By centralising renewable energy technologies to be implemented locally the company is able to supply the most economical and pleasant heating and cooling by using the most efficient heat source available. The One1 service is based on geothermal, wind, solar and other natural sources of energy and their easy and reliable transfer to the client by always using the most efficient source available.

Market validationMarket research combined with long and wide experience of One1’s key personnel from the field.

ProblemThere are no operators between large energy companies and single households. Many small renewable energy companies offer solutions based on a single technology. However, when planning and building a larger residential area, a clear need exists for an independent player whose main focus is to offer the best solution for any given area and situation.

SolutionOne1 is independent operator between large energy companies and single households designing the best product and service concept reliably and flexibly together with the client by respecting co-operation and the environment.

Revenue modelThe revenue model is based on the sale of centralized energy modules, sale of energy produced by the energy modules, and services provided during the construction and operation of the energy modules.

Market opportunityEnd users of energy show a clear need for more environmentally friendly solutions. However, the providers of renewable energy are typically focused on a single technology making it difficult for customers to make the right technology choices. The energy market is currently looking for new ways to operate to solve the needs of customers.

Competitive advantageThe heating/cooling distribution network is more efficient and sustainable by combining and centralizing systems, locallyCost efficient compared to single household solutionsHeat is produced locally with no transportation burdening the environmentCentralized upkeep secures an easy and maintenance-free energy supplyOne1 is a climate friendly and economical alternative to the use of increasingly expensive fossil energy

One1


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