Asia Clean Energy Forum 2018

Considerations in the Transfer and Diffusion of Clean Technologies into Asia

Asia Clean Energy Forum 2018 2

Need and Opportunity for Cleantech in Asia

Asia Clean Energy Forum 2018 3

Application Areas for Clean Technologies

IP transfer

(final goal)

IP Licensing (intermediate

goal)

OEM/ Application

(local ecosystem/

competence)

Sale/ Deployment

(testing waters)

Asia Clean Energy Forum 2018 4

Technology Transfer Eco-System

IP transfer

(final goal)

IP Licensing (intermediate

goal)

OEM/ Application

(local ecosystem/

competence)

Sale/ Deployment

(testing waters)

Asia Clean Energy Forum 2018 5

Clean Technology Deployments – Key Actors

Technology

Provider

Execution

Team

Technology

Adopter /

Developer

Financing

Asia Clean Energy Forum 2018

Cleantech Deal Processes

D

E

A

L

C

L

O

S

E

Preliminary Screening

Legal

Technical

Commercial & Financial

IP/ Patent Rights

Analysis

Business Model &

Track record

Technology vetting and

req’mnts analysis

1

Matching

Matchmaking

Business Advice

Legal Advice

Tech Advice

*Advisory if required

Matching

2 Brokerage

Contract Drafting/

Nego. Support

Deal (licensing, JV, sale)

structuring

Technical matching/ Feasibility analysis

Extended Due

Diligence

Capital raising

Detailed feasibility

study

Partner Services

Success

3 4

Asia Clean Energy Forum 2018

•Operational: • Viewed as a cost center

• Building and retaining regional partnerships

• Ecosystem • Technology adopters /

project developers

• Technology providers

• Regulatory / bureaucracy

• Funding

• Technology providers want to sell products but not transfer IP

7

Challenges of LCT Transfer @ Developing APAC

TECHNOLOGY

LEGAL FINANCIAL/

COMMERCIAL

CONTEXTUAL (Private+Public scope)

Asia Clean Energy Forum 2018

TECHNOLOGY

LEGAL FINANCIAL/

COMMERCIAL

• Perception • Seen as too advanced hence

costly • Doubts on useful adaptation

and localization process • Lack of demonstrated tropicalized

technologies references • E.g. waste-to-energy in India

• Interoperability • E.g. EE system or retrofits

• Technology needs and unequal demand –supply of solutions • Economics are a key (impetus

to respond and act e.g. carbon price)

• Translation of a myriad of needs

Challenges in Technology

Technology Challenges in LCT Projects

Asia Clean Energy Forum 2018

TECHNOLOGY

LEGAL FINANCIAL/

COMMERCIAL

• Know-how protection • E.g. Intellectual Property

rights • Local policies and regulations

• Varying soft and hard legal rules in developing countries

• Lack of transaction structuring and framework

Challenges in Legal

Legal and Regulatory Challenges in LCT Projects

Asia Clean Energy Forum 2018

TECHNOLOGY

LEGAL FINANCIAL/

COMMERCIAL

• Investor preference for later stage financing • Small appetite for early-stage

technologies • More than a partnership of two

with different risk aptitudes • E.g. Solution Providers,

Adopters/End-users and System Integrators

• Fear of inability to recover capital • Investor unfamiliarity with

cleantech • Lack of good quality cleantech

deals

Challenges in Financial

Financing Challenges in LCT Projects

Asia Clean Energy Forum 2018

• Cultural differences • More willingness to pay for a

physical product versus an informed opinion

• Actual and perceived risks of foreign technologies

• Climate change/ energy is NOT an issue on its own without effective regulation

• Energy issue is also a social, developmental, economic and political issue

Contextual Challenges

TECHNOLOGY

LEGAL FINANCIAL/

COMMERCIAL

CONTEXTUAL

Contextual Challenges in LCT Projects

Asia Clean Energy Forum 2018

12

Sasank Goli – Director, Ecogy Cleantech

Cleaner Technologies Investment Consultant at ADB

+65-91186077; sgoli@ecogycleantech.com