Energy Commercialization Background 07 29 2011[Compatibility Mode]

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Energy Commercialization : Your Strategic Partner for Growth

Copyright 2011 Energy Commercialization, LLC all rights reserved

Enabling Energy Projects by Providing Full Service Solutions

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Driving and Managing Energy ProjectsEnergy projects enabled when combining all three components


Finance

TechnologyRegulatory

Skilled at integrating these three

components in order to implement

projects

Projects

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List of CapabilitiesUnderstanding of both the supply and demand side

Carbon Capture & Storage (CCS) Reducing Carbon Footprint in Supply Chain Renewables & Clean Energy Energy Storage Smart Grid Strategies Regulatory / Legislative Intelligence Distributed Generation Branding Product / Services Portfolio Analysis

Copyright 2011 Energy Commercialization, LLC all rights reserved 3

Energy Commercialization BioC-Level execs experienced in energy and reducing operating expenses

Team includes former C-level execs experienced in new product development, marketing, strategic planning, finance, and operations

Most of team +30 years experience Adept at public / private partnerships Experienced working with the Department of Energy (DOE) Skilled at forming teams to deploy energy technologies Accomplished at implementing new technology to enhance

efficiencies in operations Project developer for +20 MW projects in US and

internationally Understand PPA, FIT, and other factors affecting energy

deals


Critical Infrastructure PresentAdvantageous when teaming to pursue funding opportunities

Limited Liability Corporation within the state of California Certified small business within the state of California Accounting system designed to meet DCAA / DOE requirements On-site experience at NETL Provided assistance to NETL with ARRA funding and monitoring Reviewer for DOE proposals Currently funded by the DOE / NETL to commercialize new

capture technologies Relationships with major utilities Relationships with other developers / providers of capture

technology Relationships with investment groups Relationships with EPC firms

5Copyright 2011 Energy Commercialization, LLC all rights reserved

Global Reach Through PartnershipsInternational partner network enables access to critical partners and markets

ENERFEX


GREYSTONE CAPITAL ADVISORS, LLC STRATEGIC MANAGEMENT CONSULTANCY

Example : CCS Strategic RelationshipEnergy Commercialization member of Westcarb Regional Partnership


• Relationships into other regional carbon partnerships as well• Enables understanding of large project needs and trends

Example : Partnerships for Economic GrowthUsing energy projects to drive regional economic growth


• Skilled at working with regional economic development groups

• Adept at linking job growth to new energy markets

• Important factors to consider when raising public funds to build infrastructure

Energy Ecosystem : Complex & DynamicRequires understanding relationships & navigating dynamic landscape

Copyright 2011 Energy Commercialization, LLC 9

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Method to Measure Maturity of TechnologyMany studies done on determining TRL and developing R&D portfolios

Technology Readiness Levels (TRLs) : scale for assessing the maturity of a particular technology

Developed by NASA, now wider use in DoD and other agencies

Viewed as one component of a risk-reduction measure*

Creates “common language” that facilitates the integration of technologies from universities and research labs (e.g. NRL, ARL)*

Recent versions include market related risks, e.g. COSYSMO**

*Graettinger, C; S. Garcia, J. Siviy; R. Schenk; P. Syckle, Using the “Technology Readiness Levels” Scale to Support Technology Management in the DoD’s ATD/STO Environments”, conducted for Army CECOM, CMU/SEI-2002-SR-027, August 2002**Valerdi, R; R. Kohl, An Approach to Technology Risk Management, Engineering Systems Division Symposium, MIT, March 2004

Copyright 2011 Energy Commercialization, LLC

Commercialization PathwayRequires significant capital, talent, and knowledge of stakeholder needs

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0

2

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6

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14

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0 1 2 3 4 5 6 7

Project C

ost

$0.3 MM to$1 MM

DemonstrationConceptual PilotLab Scale

• Drives type of investor relative to technology maturity• Field testing begins at pilot scale• Often failures in transition from lab scale to pilot

Copyright 2011 Energy Commercialization, LLC

$10 MM to$40 MM

+$100 MM

0.01 -0.1 MW 1 -5 MW 100 -250 MW

$1 MM to$5 MM

n/a

Challenge for Maturing Energy TechnologiesCapital, talent, and knowledge of stakeholder needed to commercialize

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0

2

4

6

8

10

12

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0 1 2 3 4 5 6 7

Project C

ost

TRL1-3

TRL3-5

TRL5-7

TRL7-9

PilotDemonstration /

DeploymentLab ScaleConceptual

• Drives type of investor relative to technology maturity• Challenge is that often easier to get large funds for TRL 7-9

than small funds for TRL 1-3• Traditional R&D funding “gap” is the TRL 5-7Copyright 2011 Energy Commercialization, LLC

Focus of Energy Commercialization

Breadth of Capabilities Provides StrengthProject developers as well as technology commercialization

Client Type Government (G) or Commercial ( C )

Description

Utility C • Technology surveillance for energy storage, CCS, distributed Generation

TechnologyDeveloper

C • Team formation for DOE grant• Assist in DOE interactions• Assessing regulatory / legislative

trends that impact businessCalifornia Energy Commission

G • Evaluate beneficial use of captured CO2, i.e. applications other than sequestration

• Evaluate impact on regional economy

Waste Management Facility

C • Act as owner’s engineer to evaluate waste to fuels technologies

• Coordinate with investors


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Using Carbon Management to Drive Revenue Growth

More than just a cost savings mechanism


True Smart Grid: Integrates ChangesEstimated market size of $200 Billion over next 10-15 years1


1Electric Power Research Institute (EPRI) and Pacific Northwest National Laboratory (PNNL) study

RPS Standards CCS

Plug in vehiclesProsumers

Carbon Trading

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Full Service Sustainable SolutionMore than just “point” solutions

Strategic sustainability coupled with technology surveillance • Future growth coupled with sustainable business practices• Three to five year planning horizon

Not just single point solutions, e.g. change lighting fixtures

Combines marketing, manufacturing, distribution, customer service, finance, and accounting considerations

Planning and implementation


Branding and SustainabilityHost of products being branded as sustainable


Branding products as sustainable drives

revenue growth

Strategic SustainabilityMeeting the need to meet the “Triple Bottom Line”

Triple Bottom Line: People, Planet, Profits Organizations driving sustainability in supply chains:

• Unilever: Double size while reducing environmental impacts through sustainable, profitable, volume growth

• Wal-Mart: Reduce 20 million metric tons of greenhouse gas emissions from its global supply chain by 2015

Example of metrics being developed regional and globally:• The Greenhouse Gas Protocol Initiative

http://www.ghgprotocol.org/standards/product-and-supply-chain-standard

• Eco Index (product life cycle for outdoor equipment)http://www.ecoindexbeta.org/

Energy Commercialization approach: focus on enhancing sustainability AND profitability• Reduce both the carbon footprint (i.e. CO2 footprint) AND the

production cost of the delivered product


Sustainability Analysis for a ManufacturerImproving the profit and sustainability of products and services


Lowering energy use and carbon footprint per unit of production in each of these components will increase profitability

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Financing the EffortUsing sustainability enhancements to expand business

Forecast expenditures for

sustainability upgrades

Monetize potential cost savings

across operationsCalculate ROI and

payback

Identify people and planet

benefits

Calculate impact on cost

accounting, i.e. COGS

Develop pro forma for managerial

control and financing


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Understanding the Impact of Technology on Carbon Management

Service to mitigate risks in large scale projects


Enablers of Sustainability within OrganizationsTechnology identified as a top enabler within respondents to survey


Demographics of Respondents to

Survey

Sustainability in Business Today: A Cross-Industry View, Deloitte, 2010

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Technology Surveillance ProgramMitigating technology risk for organizations

Needs of Organizations:• Evaluating new technologies being developed• Understanding new and anticipated regulations• Leverage government funding to deploy technologies

Approach:• Use accepted standards to define technology maturity• Evaluate economics, list field trials at utilities, and vendors• Provide a “hot sheet” listing technology, regulatory, finance

developments that could impact utility and/or consumer Benefits:

• 3rd party assessment of technology developments• Rationale for transitioning from surveillance mode to engaging in

projects• Ability to connect to appropriate government funding sources


Approach for Technology SurveillancePhased approach to mitigate risk


Monthly Technology

Briefings

Technology / Projects “Deep Dive” Analysis

Involvement with Specific

Project

Phase I• Technology readiness &

impact on your customers• Economics, advantages,

disadvantages, vendors• Interaction of regulatory &

technology • Overview tool for strategic

planning

Phase II• Detailed analysis of specific

technology• In depth analysis of specific

projects• Structured meetings with

team members and funding sources (e.g. NETL)

• Pre-engagement tool

Phase III• Team member on project

or formation of project team

• Development of public / private funding

• Assists internal operations in planning and execution of project

Surveillance / Monitor / Plan Engage

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Partnering with Energy CommercializationAdvantages of a small business coupled with multi-national reach

Adept at assessing and mitigating finance, regulatory, and technology risks for large projects

Experienced with DOE / NETL funding mechanisms and procedures

Established relationships regionally with regulatory and economic development groups

Understands how financial drivers such as PPA, FITs, etc. impact bondable / bankable deals: i.e. more than simply an analyst

Provides commercialization assistance from a project developer perspective : mitigates technology, regulatory, and financial risk

Develops teams and deals based on international experience and understanding of global trends in carbon management


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Kevin C. Obrien, PhD

CEO / PresidentEnergy Commercialization

+1 925 858 [email protected]


Energy Commercialization Background 07 29 2011[Compatibility Mode]

Technology

Transcript of Energy Commercialization Background 07 29 2011[Compatibility Mode]