Yale red ox presentation draft 1

National Science Foundation Innovation Corps Program May 23, 2012

Red Ox’s Electrochemical Desalination Cell 1. desalinates brine, a waste product from oil & gas and other

industries2. generates electricity quietly and3. produces bulk inorganics that can be sold as commodities.

André Taylor (PI) David Kohn (EL) Tom Livingston (IM)

Total Contacts: 96

2

David Kohn

As lead inventor of the EDC, David brings passion and know-how to the Red Ox team. After receiving his B.S. in Engineering last year, the Connecticut Technology Council sponsored a Post-Graduate Fellowship at Yale so he could continue to develop the EDC. He will focus on technological development and strategy.

André D. Taylor

Co-inventor of the EDC, his research focuses on nanomaterial synthesis and assembly for electro chemical systems. He is a recent recipient of a Presidential Early Career Award for Science and Engineering. He will advise on electrocatalysis and electrode design.

Thomas Livingston

Former Vice President and Secretary of Applied Biosystems Inc. He has recently served as a key mentor to two successful ventures licensing Yale technology. He will advise on legal affairs and general business strategy.

Co-Founder & Advisor-DesalinationMeny Elimelech Co-inventor of the EDC, his research focuses on osmotic processes for desalination. He helped found and has continued to advise Oasys

Water, a low energy forward osmosis desalination company. He will advise on desalination markets and membrane technology.

Advisor-SustainabilityMarian Chertow

Her research focuses on Industrial Ecology. She is a former president of the Connecticut Resources

Recovery Authority and has advised ventures in the waste to value space. She will advise Red Ox on monetization of waste recovery and sustainable business development.

Mentor-Chemical MarketsNeil A. Burns

Currently CEO of P2 Science, he

brings 20 years of experience in the

chemical industry.

He will advise on issues relating to marketing, licensing and

developing the EDC and related products.

Mentor-Strategic PartnershipsChristopher

McLeod Former President of 454

Life Sciences, he brings a strong

background in technology development and scaling. He will advise on

strategic partnerships and technology design for scale-up.

Mentor-FinanceJoseph Lane

Principal at Sinter Partners and

former President of IBM Credit Corp and

IBM Global Financinghe brings decades of financial

expertise and will advise on funding and marketing.

Claire Henly Claire just received a B.S. in Environmental Engineering at Yale. She brings a unique mix of business and scientific rigor to the Red Oxteam. She previously worked for

McKinsey & Company, Goldman Sachs, and BHP Billiton. She will focus on day to day operations & business and customer development.

Co-Founder

What we thought: PROBLEM

Problem 2:Desalination produces environmentally harmful brine waste

Problem 1:59 kg of CO2 are released to make electricity to produce 100 m3 potable water

Problem 3:Valuable salts from brine waste streams are not recovered

2 Please Keep Confidential

What we thought: SOLUTION

Solution 2:The EDC produces no waste

Solution 1:55 kg of CO2 are consumed to make electricity to produce 100 m3 potable water

Solution 3:Valuable salts are produced using brine waste streams as feedstock

4 Please Keep Confidential

6

What we thought

Please Keep Confidential

1. Desalination

Photo 1: Kay Bailey Hutchison desalination plant in El Paso Tx.

2. Oil and gas production

Photo 2: a hydraulic fracturing site near Morgantown Pa.

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What we did:


8

What we learned:


1. Desalination

Photo 1: Kay Bailey Hutchison desalination plant in El Paso Tx.

2. Oil and gas production

Photo 2: a hydraulic fracturing site near Morgantown Pa.

Key Partners Key Activities

Key Resources

Value Propositions

Customer Relationships

Customer Segments

Channels

Revenue Streams

Cost Structure

-Turns waste cost into revenue-Decreased input costs / volatility-Quiet electricity on-site

-Inland desalination plants-Industrial brine producers-Hydrofracking operations

-Inland and coastal desalination plants-Industrial brine producers-Hydrofracking operations

-B2B marketing-Service agreements-Licensing arrangements

-Service-Customization-Link to value add in industrial ecosystem-Improve public image

-R & D-Engineering customization

-People-Intellectual property

-Royalties from licenses-Service contracts-Engineering consulting fees-Strategic Partnerships

-Chemical sales-Electricity sales-REC sales-Brine treatment contracts

-People-R & D –Prototyping-Legal fees (IP, Licensing, Regulatory)

-Manufacture / Capital-Operation and maintenance-Sales and Marketing

-Manufacturers-Utilities-Regulators-Utility Commissions

-Learn regulatory landscape-Foster relationships with stakeholders-Hiring & retention

-Chemical distributors-Chemical Producers

-Chemical distributors-Chemical End Users-Chemical Producers

-Utilities-Fuel Cell Mfgs

-Decreased liability-Better public image-Decreased permitting time

-Brand-Relationships with stakeholders and partners

-CO2 sequestration-Energy efficiency


Key Resources

Value Propositions


Customer Segments

Channels

Revenue Streams

Cost Structure

-Turns waste cost into revenue-Decreased input costs / volatility-Quiet electricity on-site









-People-R & D –Prototyping-Legal fees (IP, Licensing, Regulatory)






-Utilities-Fuel Cell Mfgs

-Decreased liability-Better public image-Decreased permitting time


-CO2 sequestration-Energy efficiency-DOESN’T CAUSE EARTHQUAKES


Key Resources

Value Propositions


Customer Segments

Channels

Revenue Streams

Cost Structure

-Turns waste cost into revenue-Decreased waste costs-Decreased input costs / volatility-Quiet electricity on-site

-Hydrofracking operations-Inland and coastal desalination plants-Industrial brine producers








-People-R & D & Prototyping-Legal fees (IP, Licensing, Regulatory)






- Electric Utilities (for energy efficiency investments)

-Decreased liability-Better public image-Decreased permitting time ?


-DOESN’T CAUSE EARTHQUAKES

Market

TAM: $5 bn/yrSAM: $3 bn

Target: $0.5 bn

Source : Global Water Intelligence

14Please Keep Confidential

Deep well injection

Photo 4: a small deep well injection rig

Evaporation Pits

Photo 5 : a typical wastewater evaporation pit

Traditional methods to dispose of saline brine include:

Thought: Problem in the Marcellus

Texas:~50,000 Class II Disposal Wells (at least 80% for enhanced recovery)

Pennsylvania: 8 Class II Disposal Wells

Did: Holy Shit Moment

$3.95/bbl if you take NaCl brine back with you$7.95/ bbl if you don’t

Thinking…

Learning…Produced

WaterFlowback

Water

Onsite Treatment and Reuse

Disposal Well /

Evaporation Pond /

Evaporator

Primary Water

Treatment

Secondary Treatment

Freshwater

Discharge

Learning….

Well OwnerService

Providers(Fracking,

Onsite recycling)

Technology Developers / Vendors

Regulators(Water Rights,

Disposal, Permitting)

Primary Treatment

Facility

Secondary Treatment Contractor

Engineering Firms

Disposal Companies


Key Resources

Value Propositions


Customer Segments

Channels

Revenue Streams

Cost Structure

-Turns waste cost into revenue-Decreased disposal costs-Decreased input costs / volatility-Quiet electricity on-site

-Hydrofracking operations-Water Treatment for Hydrofracking (Especially Produced Water)-Inland and coastal desalination plants-Industrial brine producers


-B2B marketing-Possibly distributors/ conferences-Service agreements-Licensing arrangements




-Royalties from licenses-Service contracts-Strategic Partnerships




-Manufacturers MEMBRANE-Utilities-Regulators-Engineering firms

-Know regulatory landscape-Foster relationships with stakeholders-Hiring & retention

-Chem. distributors-Chemical Producers



-Decreased liability-Better public image FOR CLIENTS-Decreased permitting time ?



-Other frac water treatment startups


Key Resources

Value Propositions


Customer Segments

Channels

Revenue Streams

Cost Structure

-Turns waste cost into revenue-Decreased disposal costs-Decreased input costs / volatility-Quiet electricity on-site

-Water Treatment for Hydrofracking (Especially Produced Water)-Inland and coastal desalination plants-Industrial brine producers


-B2B marketing-Possibly distributors/ conferences-Service agreements-Licensing arrangements








-Manufacturers -Membrane Mfgs-Utilities-Regulators-Engineering firms


-Chem. distributors-Chemical Producers



-Decreased liability-Better public image FOR CLIENTS-Decreased permitting time ?





Key Resources

Value Propositions


Customer Segments

Channels

Revenue Streams

Cost Structure

-Turns waste cost into revenue-Decreased disposal costs and volume-Decreased input costs / volatility and freshwater volume-Quiet electricity

-Water Treatment for Hydrofracking Oil and Gas (Especially Produced Water)-Service Providers for Oil and Gas-Oil and Gas Owner/Operators

-Hydrofracking operations-Service providers for oil and gas industry -B2B marketing

-Possibly distributors/ conferences-Oil &gas well service providers








-Manufacturers -Integrators-Membrane Mfgs-Engineering firms-Utilities


-Chem. distributors


-Better public image for clients-Decreased permitting time

-Brand -Relationships with stakeholders and partners



-Make it easy for them to get rid of their waste-Brand = good PR

-Environmental Groups/Regulators

Doing… Met/called or scheduledHave connections waiting til connection

madeCalled no return NEED CONNECTION if you

have please help!

Gas/oil well owner operators What’s in it for them? They want to lower costs and be on cutting edge of technology, some good for PR, mostly want a service agreement

Gas/oil well service providers, engineering firms and smaller treatment plants/services What’s in it for them? They want lower costs and to be able to take the market for water services/offer better services to clients. They want to license/own the technology. Some plants want a service.

Range ResourcesEQTHess CorporationCarrizo Oil and GasTalisman EnergyChesapeake EnergyBPChevronExxon MobilCONSOL EnergyWPXEnergy Corp of America

Hart ResourcesHydroRecoverySchlumbergerChester EngineersHalliburtonProcess Plants CorporationIntegrated Water TechnologiesAquatechVenture Engineering

Doing… Met/called or scheduledHave connections waiting til connection

made Called no return NEED CONNECTION if you

have please help!

Membrane and Technology Developers/Providers What’s in it for them? They want to offer a better/more integrated / cheaper solution. Likely want to own/license the technology.

Fuel Cell Manufacturers / Developers What’s in it for them? They want to get into a new market, and want a cut of profits / manufacturing contract / license or own technology.

OasysLesicoPWAHart Resource TechAsahi Glass Co.TokuyamaMiOxGE Water and PowerNanoH2OVeolia WaterSiemensAquatechEcosphere TechnologiesAltela/Casella

ProFlowFuel Cell EnergyBallardUTC PowerGE PowerOther OEM’s for these companies in the area

Learning…

From talking with owner operators this week:1. Learned more about pricing

1. TRANSPORT COSTS HUGE2. Reuse may be dominant

for a few years for many, but looking ahead

2. Learned about how they deal with new tech1. Often want service

agreement which can help with getting capital

2. Sometimes will put up own capital

3. Often a little skittish about talking

3. Would like a full solution…need to integrate

Next Hypothesis...

MVP


Key Resources

Value Propositions


Customer Segments

Channels

Revenue Streams

Cost Structure

-Turns waste cost into revenue-Decreased disposal costs and volume-Decreased transport costs-Decreased input costs / volatility and freshwater volume-Quiet electricity

-Water Treatment for Oil and Gas (Especially Produced Water)-Service Providers for Oil and Gas-Oil and Gas Owner/Operators

-Hydrofracking operations-Service providers for oil and gas industry-Oil and Gas Owner/Operators

-B2B marketing-Possibly distributors/ conferences-Oil &gas well service providers/ manufacturers







-Manufacturers -Integrators-Membrane Mfgs-Engineering firms



-Better public image for clients-Decreased permitting time

-Brand -Relationships with stakeholders and partners

-Doesn’t Cause Earthquakes


-Make it easy for them to get rid of their waste-Brand = good PR

-Environmental Groups/Regulators

Next few slides are what we learned the last few weeks and where we go from here (ie new BMC’s and new knowledge from much more in depth meetings with folks). End with several BMC’s that represent different options for different stages of the company and development.

Yale red ox presentation draft 1

Business

Transcript of Yale red ox presentation draft 1