new energy efficiency and renewable energy …...new energy efficiency and renewable energy...
TRANSCRIPT
New Energy Efficiency and Renewable Energy Technologies Coming to the MarketSeptember 4, 2014
.
Renewable Energy on Institutional Property
Webinar SeriesJune through September 2014
www.ssfonline.org
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Gary DirksLightWorks
Arizona State University Edward SaltzbergSecurity and Sustainability Forum
SSF Archived Climate Solutions Webinar Series• Urbanization and Growth on a Finite Planet• International Environmental Security• National Climate Assessment • Water Management• Adaptation to Protect Security in a Changing Climate • Renewable Energy on Institutional Property
www.ssfonline.org
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Sign Up for Free SSF MembershipTo Access the Webinar Archives
www.securityandsustainabilityforum.org
Renewable Energy on Institutional Property Webinar Series Register at: www.ssfonline.org Energy Tab
Archived Webinars in the Series• June 2nd – Renewable Energy Policy• June 26th Webinar #1 – The US Federal Agency Market: Meeting Energy Reduction and
Renewable Energy Mandates• July 10th Webinar #2 – Renewable Energy Technology Applicability • July 24th Webinar #3 – The Effective Marriage of Renewable Energy and Energy
Efficiency in an ESCO Contract for Municipalities, and Educational and Hospital Campuses• August 7th - Webinar #4 – The Intersection of the Microgrid, Renewable Energy, and
Storage• August 21st Webinar #5 – Public Private Partnerships (PPP)
• September 4th Webinar #6 – The Leading Edge of New Energy Efficiency and Renewable Energy Technologies Coming to the Market
Registration Open• September 18th Webinar #7 – Developing the RFP
SAVE THE DATE:
January 27-29, 2015
at the Hyatt Regency Crystal City near Washington, DCwww.ncseonline.org 3
4
Moderator6
Gary Dirks, Ph.D. is the Director of the Julie Ann Wrigley Global Institute of Sustainability and Director of LightWorks, an Arizona State University initiative that capitalizes on ASU's strengths in solar energy and other light-inspired research. Before joining ASU, he was the president of BP Asia-Pacific and the president of BP China.
Meet the Panelists
Graham Stevens, Navigant Consulting Associate Director
Graham specializes in energy technology with particular expertise in photo voltaics, new products, and due diligence. He works closely with the research staff at Navigant Research and will be reporting on the latest information about renewables & energy efficiency technology. [email protected]
Otto Van Geet, National Renewable Energy Laboratory Senior Engineer.
Otto’s work has been concentrated in the Federal Energy Management Program. His expertise includes renewables screening and assessment, passive solar building design, use of design tools, photovoltaic (PV) system design for on and off grid applications, energy audits, and minimizing energy use and GHG generation for building and communities. [email protected]
Chris Brown, Sail Capital Partners Partner and Chief Scientist
Chris is a scientist and entrepreneur with a business and technical background. His past experiences have spanned multiple verticals, including electronics, textiles, and telecommunications. His background and experience position him at the crossroads of business and technology. [email protected]
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Agenda
Introductions: Gary Dirks
Overview: Gary Dirks
Panel Briefings Graham Stevens, Navigant Consulting Otto Van Geet, National Renewable Energy Laboratory, DOE Chris Brown, Sail Capital Partners
Panel Discussion Audience Questions (submit through side panel)
(Please take the brief exit survey)
8
Overview
&
Insights
Gary Dirks,Director, Julie Ann Wrigley Global Institute of
Sustainability
Director, ASU LightWorks
Director, Algae Testbed Public-Private
Partnership
DISPUT E S & INVESTI GATI O N S • ECONOMI C S • F INAN CI A L ADVISO RY • MANAGEM E N T CONSULT I NG
©2014 Navigant Consulting
Confidential and proprietary. Do not distribute or copy.
September 4th 2014
The Leading Edge of New Energy Efficiency and Renewable Energy Technologies Coming to the Market
Webinar
11©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Table of Contents
1. » Navigant Introduction
2. » Emerging Renewable Technologies
3. » Emerging Energy Efficiency Technologies
4. » Payback and Market Penetration
5. » Favorable Emerging Technologies
6. » Navigant Offerings
12©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Navigant Introduction » Global Presence
Navigant is a global consulting firm providing clients advisory services in the Energy, Healthcare, Construction and Financial industries.
• Publicly traded since 1996 (NYSE: NCI)
• Over 2,300 employees
• 50 offices globally and serving clients in more than 70 countries
• 2013 revenues of $835 million
• Headquartered in Chicago, IL
Management Consulting
Financial Advisory Disputes &
Investigations
• Energy• Healthcare• Construction• Financial Services• Government / Public
Service• Outsourced Claims
Services (PACE)
• Navigant Capital Advisors - US
• Navigant Capital Markets Advisers -Europe
• Valuation & Financial Risk Management Services - US
• Valuation Services -Europe
• Discovery Services
• Disputes
• Forensic Accounting,
• Global Investigations and Compliance
Economics
• Antitrust & Competition Analysis
• Auctions & Market Design
• Class Certification• Communications • Consumer Protection• Damages• Discrimination/Labor• Finance, Securities
Litigation and Valuation
• Healthcare & Pharmaceuticals
• Intellectual Property
13©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Navigant Introduction » Energy Practice
Within this large firm, Navigant has one of the largest dedicated staffs to Energy in the industry.
SERVICESENERGY PRACTICE
PROFESSIONALS
• 350+ professionals• One of largest energy advisory services
FOCAL AREAS
• Renewable Energy
• Energy Efficiency
• Energy Storage
• Smart Grid
• Distribution Automation
• Transmission Planning
• Demand Side Management
• Natural Gas and Energy Generation
• Business Planning, Performance Improvement and Benchmarking
• Litigation, Regulatory and Markets
EMERGING TECHNOLOGIES
Distributed generation, storage, distribution automation, Smart Grid, new business models
ENERGY EFFICIENCY STRATEGY
Marketing & implementation, regulatory analysis/ support, program evaluation
TRANSMISSION & DISTRIBUTION
Smart Grid strategies, transmission planning, grid integration support
GENERATION STRATEGY
Renewable energy evaluation, business planning, due diligence, portfolio strategy, and M&A
ENERGY POLICY & REGULATION
Market design, regulatory compliance, emissions analysis, policy integration, market assessment
Oil & GAS
Market risks and assessments, transport strategies, and process improvements, price forecasting
14©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Navigant Introduction » NavResearch
Navigant Research provides in-depth analysis of global energy technology markets.
RESEARCH PROGRAMS:Smart Energy
Smart Utilities
Smart Transportation
Smart Buildings
RESEARCH OFFERINGS:Research Reports
Subscription Research Services
Custom Market Research
• Custom Market Analysis
• Market Sizing and Forecasting
• Primary Research
• Go-to-Market Services
• Strategic Advisory Sessions
• Commercial Due Diligence
• Technology Evaluation
The team’s research methodology combines supply-side industry
analysis, end-user primary research and demand assessment, and
deep examination of technology trends to provide a comprehensive
view of the Smart Energy ecosystem.
15©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Solar
Energy
Solar Electric
Solar Thermal
Wind
Biofuels
1st Generation
Cellulosic
Algae
Biopower
Energy
Storage
Batteries
Fuel Cells
Other
Microgrid
Hydro
Emerging Renewables Technologies »
From our market reports, mid term attractive opportunities include distributed PV and onshore wind.
SMART
ENERGYR&D Demo
Market Entry
Market Penetration
Market Maturity
Crystalline PV
CPV
Power Tower
Thin Film PV
Dish Sterling
Parabolic Trough
Fischer-Tropsch jetAlcohol to jet
Fermented RE jetPyrolysis to jet
Catalytic Hydrotherm
Green diesel
Hydrotreated RE jet
EthanolBiodiesel
BIPV DSC SteelOrganic
Micro-inverter
Cellulosic Ethanol
Distributed PVDC Optimizer
PEM
Lead-acidLithium Ion
Solid Oxide
Molten Carbonate
Flow Sodium Sulfur
Na Metal Halide
CAESPumped Hydro
Direct Drive Onshore Geared Drive OnshoreSmall Wind HAWT
Central/String Inverter
Off-shore Composite Blades
Isothermal CAES
Alkaline
Nano Lead-acid
Smart-inverterAC Modules
Anaerobic Digestion Dedicated/Co-fireBiorefinery Co-genMSW IncinerationLandfill Gas
HydrokineticWave
Tidal HydroOcean Thermal
Small Wind VAWTMet TowersRemote (Lidar/Sodar)
Ancillary ServicesFlywheel
Non-commercial CommercialBuilt Favorable
Thermal
UPS
16©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Building Energy
Management
Sensors
Software
Building
Automation
HVAC Controls/
Security
EE LightingDevices /
Controls
Smart Building
Technology
HVAC / Envelope
/ Water / Hot
Water
Green Building
Smart Meter
Smart Grid
Demand
Response
Smart Cities
Smart Transport
Emerging Energy Efficiency Technologies »
Similarly, automated maintenance, ESCO energy efficiency, co-gen, ERV, and automated demand response seem most attractive.
Air Source HP
Geothermal HP
R&D DemoMarket Entry
Market Penetration
Market Maturity
Ind
ust
ryU
tili
tyS
mar
t B
uil
din
gs
2W Open ADR2.0 2W Automated DR 1W Direct Load Control
Non-commercial Commercial
ThermostatAir Conditioning
Electric Water Heat DRMS
OccupancyLight
CO2 Auto Fault Detection/PMDemand Ventilation
Temp/HumidityFire/IAQ:
LED
Var Air Vol
Fan/AH controller
HVAC system controls
Cloud SaaS Traditional SoftwareMobile Device
AMI
Distribution Automation (MV)Conserve VR / Var control / FLISR
1W Smart Meters2W Smart Meters
Security systems
Fire Detect / Suppress Controls
CFL
CoGen
Built Favorable
Substation Automation
DC Power/PoE
HybridNat GasAll ElectricFuel Cell
Halogen
OLED
Intelligent Controls
High Eff ic. HVAC
Daylighting
Low FlushZero Flush
Tankless HWSolar HW Insulation
Smart Glass
ESCO
E Harvest
Electric 2-wheel
EV ChargingWireless Charging
Gas Supply Line Leak Detection
HEM
Ductless HVAC
DEVAPUVGI ERV
CyberSecurity
Green Roof + PV
Res CHPSmart Appliances
Networks
Parking Smart Water
17©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Payback and Market Penetration » Introduction
Navigant uses market penetration curves to assess how renewable and EE technologies are adopted over time.
• Market penetration curves (sometimes called S-curves) are well established tools for estimating diffusion or penetration of technologies into the market.
• A technology adoption curve provides the rate of adoption of technologies, as a function of the technology’s characteristics and market conditions.
• Navigant Consulting has gathered market data on the adoption of technologies over the past 120 years and fit the data using Fisher-Pry curves*.
• The Fisher-Pry technology substitution model predicts market adoption rate for an existing market of known size.
Sample Market Penetration Curves
*Source: Navigant Consulting, November 2008 as taken from Fisher, J.C. and R.H. Pry, A Simple Substitution Model of Technological Change, Technological Forecasting and Social Change, Vol 3, Pages 75 – 99, 1971 .
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 5 10 15 20 25 30 35 40R
ea
lize
d M
ark
et
Pe
ne
tra
tio
n [
%]
Years Since Introduction
Residential
Commercial
18©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Payback and Market Penetration » Payback Curves in the Built Environment
In the built environment, our S curves are based on the following payback acceptance curves to model consumer behavior:
Pay-Back Acceptance Curves
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 2 4 6 8 10 12 14
Ultim
ate
Pe
ne
tra
tio
n [
%]
Payback Period (Years)
Residential
Commercial
Industrial
Curves assume 100% adoption is never
achieved due to unwillingness to change,
mistrust of a new technology,
incompatible building designs, etc. This is
based upon several prior Navigant
examinations of programs.
Source: Navigant based upon work for various utilities, federal government organizations, and state/local organizations. Thecurves were developed from customer surveys, mining of historical program data, and industry interviews.
19©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Favorable Emerging Technologies » Renewables
Most renewable technology paybacks are 5-10 years, leading to up to 15% market penetration.
5-Year Projection of Renewable Technology Payback Period
TechnologyNear Term
(2-5 yr)Mid- Term
(5-10 yr)Long Term
(10+ yr)
Solar Energy
Solar ElectricDistributed PVMicro-Inverters (Res)
CPV BIPVAC Modules Organic
Solar ThermalParabolic Trough Dish Power Tower Sterling
WindOnshore Wind Small Scale Wind
Off-shore Wind
BiofuelsCellulosic Biofuels Ethanol Biodiesel
Algae-based Bio-fuels
Bio-powerDedicated/Co-fire Anaerobic Digestion
Landfill GasBio-refinery Co-genMSW Incineration
Energy
Storage
BatteriesLead AcidSodium Sulfur
Sodium Metal Hydride FlowLithium Ion Other
Fuel CellsMolten Carbonate PEMSolid Oxide Alkaline
OtherThermal FlywheelPumped Hydro
CAES
Micro-grid Ancillary Services
HydroHydro Ocean Hydrokinetic
Wave Tidal
20©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Favorable Emerging Technologies » Energy Efficiency
EE paybacks are significantly lower in general, leading to higher market penetration for a number of technologies.
5-Year Projection of Energy Efficiency Payback Period
TechnologyNear Term
(2-5 yr)Mid- Term
(5-10 yr)Long Term
(10+ yr)
Building Energy
Management
SensorsAuto Fault DetectionTemp/Humidity Control
Demand VentilationOccupancy Sensors
Software Cloud SaaS / Mobile Device
Building AutomationHVAC Controls/
SecuritySensor E Harvest Separate HVAC controls Fire Detect/Suppress
EE LightingDevices /
ControlsLEDs Intelligent Control OLED
Smart Building
Technology
HVAC / Envelope
/ Water / Hot
Water
Low Flush UVGIInsulation ESCO
Zero Flush ERVTankless HW CoGen
Solar HW
Green BuildingDaylighting Ductless HVAC
Green Roof + PVSmart Glass
Smart Meter2W Smart Meters AMI Gas Supply
Leak Detect
Smart GridSubstation AutomationDistribution Automation
Demand Response 2W Automated DR 2W Open ADR 2.0
Smart CitiesSmart AppliancesRes CHP
Standardization
Smart TransportHybrid EV Charging
Electric VehicleFuel Cell
21©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Navigant Offerings » Navigant Research and Navigant Energy
EMERGING TECHNOLOGIES
Distributed generation, storage, distribution automation, Smart Grid, new business models
ENERGY EFFICIENCY STRATEGY
Marketing & implementation, regulatory analysis/ support, program evaluation
TRANSMISSION & DISTRIBUTION
Smart Grid strategies, transmission planning, grid integration support
GENERATION STRATEGY
Renewable energy evaluation, business planning, due diligence, portfolio strategy, and M&A
ENERGY POLICY & REGULATION
Market design, regulatory compliance, emissions analysis, policy integration, market assessment
Oil & GAS
Market risks and assessments, transport strategies, and process improvements, price forecasting
INFORMATION COLLECTION
MARKET ANALYSIS
Primary Research Secondary Research
• Executive Interviews• Vendor Briefings• Product Demos and Tours
• Company News & Financials
• Technology & Product Specs
• Government Data• Economic, Demographic
Data
• Consumer Surveys• Business Leader Surveys
• Case Studies• Reference Customers
Qualitative Quantitative
• Business Models & Trends• Technology Issues• Policy & Regulatory
Factors• Competitive Landscape• Profiles of Key Players
• Market Sizing• Segmentation by
Technology, Geography, Application, etc.
• Market Share Analysis• Forecasts by Segment
KeyC O N T A C T S
©2010 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
KeyC O N T A C T S
©2010 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
KeyC O N T A C T S
©2010 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
KeyC O N T A C T S
22©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Graham StevensAssociate DirectorMoscow, Idaho+1-280-310-5934 [email protected]
23©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Glossary
1W One-way communication
2W Two-way communication
AC Alternating current
AH Air handler
AMI Advanced meter infrastructure
BIPV Building integrated photovoltaics
CAES Compressed air energy storage
Co-gen Co-generation
CPV Concentrating PV
DC Direct current
DEVAP Dessicant
DR Demand response
DSC Dye-sensitized cell
ERV Energy Recovery Ventilator
EV Electric vehicle
FLISR Fault location, isolation, and service restoration
HAWT Horizontal axis wind turbine
HEM Home energy management
HP Heat pump
HVAC Heating ventilating and air conditioning
IAQ Indoor air quality
Lidar Light detection and rangingMet Measurement towerMSW Municipal solid waste
MV Medium voltage
Na Sodium
Nat gas Natural gas
PEM Polymer electrolyte membrane
PM Preventative maintenance
PoE Power over EthernetPV Photovoltaic
RE Renewable
SaaS Software as a service
Sodar Sonic detection and ranging
Sodar Sonic detection and rangingUPS Uninterruptible power system
UVGI Ultraviolet germicidal irradiation
VAWT Vertical axis wind turbine
VR Voltage reduction
NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.
Renewable Energy Webinar #6: Buildings and Campus Carbon Neutral Strategies and Tools
September 4, 2014Otto Van Geet, PE
25©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
NREL Mission
• Develop renewable energy and energy efficiency technologies and practices
• Advance related science and engineering
• Transfer knowledge and innovations to address the nation's energy and environmental goals
26©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
NREL Program Portfolio
Energy EfficiencyVehicle Technologies
Building Technologies
Systems IntegrationGrid Infrastructure
– SmartGrid and RE Grid
Battery and
Thermal Storage
Strategic Analysis
Renewable ResourcesWind and Water
Solar
Biomass
Hydrogen
GeothermalFederal Energy Management; Integrated Deployment; International; Other Intergovernmental
Foundational Science
27©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Governance
Staff: 2300 - Countries represented: 70+- Languages: 30+- Degrees: 1,100 BAs; 700 MAs; 450 PhDs
and JDs
South Table Mesa Campus
National Wind Technology Center
DOE Contractor Operated National Laboratory
28©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Energy Efficiency then Renewable Energy (EERE)
All new buildings should be as efficient as possible with the goal of net zero annual energy.
Determine the energy use and energy cost of existing buildings and infrastructure
Reduce energy use by behavior, installing EE lighting, HVAC and controls and reducing plug loads
Install RE (Solar, Wind, Biofuels) to meet remaining energy needs
29©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
www.nrel.gov/applying_technologies/climate_neutral/
30©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Identify Options for Buildings, Behavior & Policy, Transportation,
Energy Source, & Carbon Offsets
Decision Criteria & Analysis
Building a Climate
Action Portfolio
Measurement and
Validation
Climate Neutral Research Campuses
Implementation
See: http://www.nrel.gov/applying_technologies/climate_neutral/
Installation Master Planning Examples
Research campuses consume more energy per square foot than most facilities. They also have greater opportunities to reduce energy consumption, implement renewable energy systems, reduce greenhouse gas emissions, and set an example of climate neutrality.
The NREL Climate Neutral Research Campuses web site provides research campuses a five-step process to develop and implement climate action plans.
Determine Baseline Energy Consumption
Analyze Technology Options
Prepare a Plan and Set Priorities
Implement the Climate Action Plan
Measure & Evaluate Progress
Determine Baseline1
2
3
4
5
6
31©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
REopt Planning Tool
Planning tool to evaluate RE, EE, microgrid, and operational energy opportunities
Recommends a mix of technologies and an operating strategy that meets client goals at minimum lifecycle costConsiders interactions between multiple technologiesEstimates costs and energy savings
Draws on site data, NREL GIS resource data, DSIRE incentive
database, and RE technology info
Has been used to assess opportunities at ~800 sites
Technologies currently modeled:PVWindSolar hot waterSolar vent preheatBiomassWaste to energyLandfill gasDiesel and natural gas generatorsBattery storage
Robust and adaptable to meet client goals
32©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Navy and Army: Project Portfolio Planning
Site Tech Size
1 C PV 100 kW
2 G Wind 1 MW
3 A LFG 2 MW
Site Tech Size
1 G Wind 1 MW
2 C PV 100 kW
3 A LFG 2 MW
Ranked List of Projects
Initial
Data
Run REop
t
Verify
results
and
data
Run REopt
Revised List of Projects
• Goalso Minimize lifecycle cost of energyo Achieve Net Zero at 50% of installations
• Identify and prioritize cost-effective projects to meet goals
• Estimate cost of meeting goals
33©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Optimum Energy Mix for an Installation
34©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy.
Energy Generation, Integration and Reliability
Campus Energy
Integrating Tools
35©2014 Navigant Consulting, Inc.
Confidential and proprietary. Do not distribute or copy. 35
NREL CAMPUS
SAIL Capital Partners LLCCalifornia | New York | Washington DC | New Orleans | Toronto
SAIL Capital Partners, LLC
Renewable Energy Webinar #6 The Leading Edge of New Energy Efficiency and Renewable
September 4, 2014
Chris Brown, PhDPrincipal
Table of Contents
37
I. Investment Landscape
II. Energy Efficiency at SAIL
III. Rating New Investment Opportunities
IV. SAIL Overview
I. Investment Landscape
38
Energy Efficiency Investment Landscape
39
DEALS: $639mm invested across 83 venture equity deals in 2014; 41 deals @ $269mm in second quarterTREND: Higher deal volumes and more capital-light deals Q1 THEME: Hardware focused building efficiency (lighting and windows) bringing in top deals; software solutions remain popular.Q2 THEME: Energy management systems from controls to energy dashboards experiencing high deal volume; energy efficiency financing platforms seeing interest from investors.
Energy Efficiency Deals
40
Home energy management companies received a lot of attention in the second quarter of 2014. Next Step Living, Cyclon Controls, and Energy Savvy saw huge investments, while large corporates teamed up with the likes of Lucibel, Wattio, and Panoramic Power for new partnerships. 2014 also saw larger growth equity deals go to makers of efficient building equipment, including View, and Phononic.
The Energy Efficiency sector has been in the spotlight lately with high profile IPOs and acquisitions, and the momentum is here to stay. The buzz around the “Smart Home” is a harbinger for a larger trend sweeping across the tech industry: the Internet of Things.
II. Energy Efficiency at SAIL
41
“Experts in airheater performance”
42
Paragon Airheater Technologies provides a suite of products and services that increase the efficiency of fossil fuel-fired powergeneration plants. The Company specializes in the service and manufacturing of high-performance seals and related replacement partsfor rotary, regenerative airheaters. The products maximize air preheater performance and efficiency through innovation, technology andquality service. Paragon’s products are one of the most important elements of energy efficiency in a typical power plant, contributing10‐15% to overall plant efficiency by recovering wasted flue gas heat and re‐using it to “pre‐heat” the external air pumped into theboiler during the combustion process. The seals reduce air leakage by an average of 35%, with a high-to-date reduction of 50%.
Business Overview
Paragon’s Value Proposition
• Lower emission and reduce carbon output by 2% - 3%
• Reduce fuel consumption by as much as 2%
• Extend the life of the Airheater
• Reduce maintenance cost
• Increase MW output
“World’s most efficient green motor”
43
SNTech is the fastest growing smart motor company in the world that develops low-cost, intelligent electric motors with enhancedefficiency. SNTech has several patents and develops an innovative product family of “smart” electric motors that deliver superiorperformance with 33-50% increased efficiency. These smart electric motors use up to 50% less electricity than high efficiency ACmotors. The Green Motor consumes 80% less energy and is the lowest heat emitting motor with 75% less heat generation. In2011, SNTech closed the acquisition of an electric motor product line from Regal Beloit Corporation. This move acceleratedSNTech’s entry into the fluid motor business.
Business Overview
Company Highlights
• Recurring revenue from over 100 customers in 2 years
• Sales growth from $1.2 million and 10,000 units in 2010 to over $21 million in 2012
• 3-year, $30M supply agreement with a Fortune 100 OEM
• Passed rigorous supplier testing and audits with major industry leader
• Advanced product development discussions with Top 5 HVAC OEM
• First-of-its-kind installation commissioned for a Fortune 100 company’s high efficiency data centers. The customer has asked SNTech to be their preferred vendor for smart motors
• Disruptive technology with 60+ Patents
• Finalized testing with DoD for Marine and Navy projects to fulfill energy efficiency mandates—recommended by expert consultant to US Navy
• Received its first multi-thousand unit order from a Fortune 100 OEM in Q2 2013
III. Rating New Investment Opportunities
44
The Rough Cut
45
MarketAre the market sizes compelling, and can the company economically scale to meet the demand that will arise?
ExecutivesDoes top management have a track record of success or is the advisory board strong?
AcceptanceHas the company identified the right customers, and does it understand why, when and how they buy?
TechnologyIs this technology disruptive and how much more time and cash are required to commercialize it?
QUANTIFY EVERYTHING
Market
46
Know the markets you want to enter.
• Compelling size, $B now or a market growing into it.
• Competition and alternatives.
• Market dynamics.
• Key customers and their power.
• Government regulations.
• Limiting factors, growth bottlenecks.
• Lead time to enter the market.
• Multiple market segments.
• Scaling with a cost structure that makes sense.
Executives
47
Build a team of leaders and advisors who know how to win.
• Management with a track record of success.
• Advisors with deep industry knowledge and contacts.
• Are the key positions properly filled? A founder is not always the best person to be CEO.
• Recalcitrant founders.
• A great advisory board validates strength of company and technology.
• Founders who understand trading ownership for value.
Acceptance
48
Know your customer and if they are really the right one.
• Who, what, when, where and why.
• The problem you are solving and how painful it is for them.
• Will they understand what you are trying to do?
• Who makes the buying decision?
• When do they buy and how long is the sales cycle?
• Just because the customer or market segment is the largest doesn’t mean it’s the right one starting point.
• Cash conversion is important; a small early adopter is worth more to a startup than a large late adopter.
• What metrics does my customer measure success by?
• Current backlog and pipeline.
Technology
49
Assess the strength of your technology versus others and over time.
• Is this technology game changing or just an iteration?
• Is this a platform technology?
• Has it been validated by a third party?
• How much development is left, at what cost and over what time?
• How much IP is currently there or coming? Is it broad based or just one application or material/molecule?
• Is the IP strong and defensible?
• Sustainable competitive advantage; will an alternative arise quickly?
• Validation by a 3rd party.
IV. SAIL Overview
50
-
$50
$100
$150
$200
$250
$300
$350
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013P
SAIL Pre-Exit Acceleration I, LP
SAIL VP I, LP
SAIL VP II, LP
SAIL Sustainable Louisiana I & II, LP
Overview
51
SAIL was founded in 2002 as a pioneer in sustainable investment, with an emphasis on cleantech. Today it is recognized as a global leader with a unique combination of low loss experience and an innovative vision of technologies, markets and opportunities. SAIL invests in late stage growth companies with proven technologies, visionary leadership, and exciting growth potential.
• SAIL Venture Partners I, LP: Launched in 2003, 10 active portfolio companies
• SAIL Venture Partners II, LP: Launched in 2008, 13 active portfolio companies
• SAIL Sustainable Louisiana I & II, LP: Launched in 2011, first two closes successful, 5 Investments to date
• SAIL Pre-Exit Acceleration Fund , LP: Launched in Q4 2012, provides pre-exit capital to existing portfolio companies. Two companies taken public to date.
SAIL Total Assets Under Management (in $US millions)
3161 Michelson Dr., Suite 750Irvine, CA 92612949.398.5100 www.sailcapital.com
SAIL Capital Partners LLC
Panel Discussion
Within the realms of market, research, and investing, what are the top 5 most exciting opportunities that will unfold over the next 5 years?
What key trends will drive these innovations to market?
What are the key barriers to their commercialization?
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Audience Questions
Graham Stevens, Navigant Consulting
Otto Van Geet, National Renewable Energy Laboratory
Chris Brown, Sail Capital Partners
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Gary DirksLightWorks
Arizona State [email protected]
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Archived Webinars in the Series• June 2nd – Renewable Energy Policy• June 26th Webinar #1 – The US Federal Agency Market: Meeting Energy Reduction and
Renewable Energy Mandates• July 10th Webinar #2 – Renewable Energy Technology Applicability • July 24th Webinar #3 – The Effective Marriage of Renewable Energy and Energy
Efficiency in an ESCO Contract for Municipalities, and Educational and Hospital Campuses• August 7th - Webinar #4 – The Intersection of the Microgrid, Renewable Energy, and
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• September 4th Webinar #6 – The Leading Edge of New Energy Efficiency and Renewable Energy Technologies Coming to the Market
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