It’s been a while since I’ve blogged, I know…truth is, Jon and I have been busy incubating a new little ‘project’ here at home – and it’s been taking quite a bit of the energy that I normally devoted to things like blogging. I’ll continue to blog, but it will be with less frequency; as always, I’ll blog as time permits, but with everything that’s been going on on this end, it’s likely I won’t be able to blog quite as much as I’d like.
Nevertheless, one blog I did want to get out the door before the end of this year is one highlighting Prescience International. Net-net – if you have a cleantech or bio startup but don’t know about Prescience – you should, so please read on. And now that the noise around Cop15 has died down a bit, and I’m not also caught up in reading about what’s going on with the healthcare debate, I can get back to focusing on this stuff.
In writing this, my main goal was to answer some questions for those entrepreneurs who want to learn more about Prescience International, and how each organization under the Prescience umbrella is structured, and probably most importantly – I wanted to lay out what you need to know to be considered for one of Prescience’s programs. Prescience offers one of the most unique ‘launch pads’ for cleantech and bio start ups in Silicon Valley, so additionally, I’ve cited some of the organization’s programs and upcoming activities, for those of you wanting to add them to your calendar. And for those of you seeking information about applying to the organization’s “Meet With” Series – see the end of my blog for more information. So…hopefully all this is helpful information. And in the meantime – I wish everyone a wonderful, happy holiday season, and hope all are good, and ready to meet 2010 head-on with their sleeves rolled up, a smile, hope, faith and optimism for the future ~
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About Prescience International
Melinda Richter is a friend I have great admiration for, though unfortunately, as busy as we both are with our respective lives, I don’t get to see her too often. Fortunately, we have the kind of friendship where I pretty much know I can pick up the phone and start where we left off last since we first met. We had an opportunity to work together several years ago back when Astia.org was the Women’s Technology Cluster, when I was doing some business development for Springboard Enterprises, and Melinda worked for the WTC. We became friends during the moments we both had free back then. So it’s with great satisfaction that I see Melinda doing what she’s doing now, because I can tell you that whatever Melinda touches, I don’t even have to ask to know it’ll be done with great success and done for a worthwhile cause. She’s exceptionally talented, extremely well connected, committed, a really interesting person with a tremendous amount of depth, and most importantly – she’s a good person with a great heart, and she’s doing something extremely worthwhile with her time: she’s working her butt off to help develop noteworthy cleantech and bio companies.
Today, Melinda heads up Prescience International, an organization whose model she explains to me by referring back to her days at Nortel, when she had the assets and resources of a large corporation backing what were essentially ‘start up’ initiatives inside Nortel, and pointing also to her experiences working with the then Women’s Technology Cluster (http://www.Astia.org): of Prescience, she says “Prescience aims to mimic that “big company” environment for entrepreneurs – for whom it’s so difficult to get started, get attention. “I look at is as if I were an entrepreneur who’d started my business/project within Nortel,” she continues, “with the same sort of assets and resources at my disposal that a project team with Nortel, or Applied Materials would have – where all I’d have to focus on is my R&D.”
“That, in a nutshell, is, for example, the concept behind the San Jose BioCenter, (one of several Prescience organizations), which offers specialized facilities, capital equipment and both lab and business operation support. We also form relationships with a host of people in the industry to assist our companies and with key business development people within big corporations. Our goal is to accelerate the commercialization of science and technology for the purpose of enlarging the cleantech and bio opportunities.”
How to get your company involved in Prescience’s programs?
Well, if you’re an entrepreneur, here’s what you need to know before going in and applying…and this is straight from Melinda, so it’s worth listening to:
First, your technology has to fit a problem. It has to be a very clear problem that you’re solving and a very clear market that you’re going after. And you have to think about all the things that a VC will look at – what’s the problem, what’s the solution, how’s that compare to the competition, how are you going to protect your value prop; how do you intend to enter the market, and most importantly, the team — you may be so new, or the category may be so new you don’t have a lot – but you have to know the value prop. You have to make sure you’re solving the problem first.
In terms of differences to note between Prescience’s various programs, the Environmental Business Cluster and The San Jose BioCenter have two different levels of markers. If you want to be a resident client of the San Jose BioCenter you have to have some level of funding – someone has to have said yes your technology is credible, and here’s money — either in the form of grants, angel, vc, or you’re an entrepreneur who’s done it before. And you need to have some level of funding because it’s an expensive operation, and you need to show you can pay a lease. However, there is an option for those without funding: you can become a part of the programs and access the general equipment space as an affiliate. So you can be a member without having an on-site lease; and for that you have to demonstrate that you’re solving a problem with a really good technology -meaning you have to have a base of technologists who are solving a very real problem. To be a BioCenter Affiliate, it will cost you between $500-$1500; the entry point for a fully equipped wet lab is $3k– note: just to give you some perspective, this gives you access to $10 million dollars worth of equipment. So that’s the scoop with the SJ BioCenter.
The Environmental Business Cluster (EBC) takes in earlier stage companies than the BioCenter. It’s very focused on clean tech – so clean tech ventures are the focus of the organization, which takes ideas coming from what most would say are very good sources – either national energy labs, or the California Energy Commission. “Usually, there are a number of companies already coming to us from solid sources of referral,” says Melinda, “However, we’re getting a whole host of other companies applying now with excellent technology, solving real problems in the markets that regulators are interested in, and those are companies we’re really interested in.” Melinda was also quick to note that for the EBC, such companies don’t necessarily have to have funding yet – a company does need, however, to be able to refine their business plans and also be able to demonstrate how they’re solving real problems with a great technology solution.
As an example of how Prescience’s model works opportunistically for its participating client companies: one of the most interesting opportunities created by Prescience for companies participating in its various programs is a unique “Meet With” Series where, as Melinda tells it, “we’ll have PGE come in for a day and have our emerging technology groups meet with PGE; or we’ll have Alloy Ventures come in, and provide half hour coaching sessions to our companies. We’ve had Khosla Ventures coming in, and a full day with CPUC coming up…and we’ll give general coaching, then put our companies in front of all the players that are the key decision makers to make things happen for them.”
Then there’s the Clean Tech Institute, a fairly new program that Prescience co-founded. Held at UC Berkeley, the Institute is a forum hosted and run in partnership with UC Berkeley’s Center for Executive Education. Prescience partnered with the University to help design the program and ensure that executives coming out of it are going to have a real industry impact when they leave. “What we’re trying to do is change the industry,” says Melinda, “by bringing together the innovators, policy makers and financiers of industry – and we’ll have people come in and speak, but the goal is really to have our participants and industry leaders engage in dialogue about how to create change. They’re a key part of the feedback loop in the industry, these participants – on the policy side, the financial side, and the technology side. So we hope people will be able to leave this 2 day forum within policy, tech or venture capital and make very real things happen.” The Clean Tech Institute is a held in February, June and October– and you have an opportunity to enter into this whenever you want – so you can enter into the dialogue at any point in time. Thus far, participants have been entrepreneurs, government, and the vc community – with a requirement being that there has to be an equal percentage of government representatives, financial industry types and technologists in the room.
The Clean Tech Institute’s format is similar to that of Prescience’s BioExec Institute – just tackling a different industry. Once a year, the program is run over 6 days, and it’s all done in a quarter, while the Clean Tech Institute is held 2 days every few months.
Where does Prescience get its support from?
Clients, sponsors, mentors, partners — organizations like the Redevelopment Agency of City of San Jose – which ponied up an initial investment of $6 million for the BioCenter. Says Melinda, when I ask her how Prescience works with the Redevelopment Agency, “Well, for instance, one of our companies needs to get UL lab certification, and the Agency is helping this company get into the lab to get the UL certification. I appreciate our relationship with them enormously; they believe in what we’re doing, and follow it up with action.”
What’s next on Prescience’s to-do list?
For those of you wondering, the Environmental Business Cluster is expanding – and has moved into a new building in downtown San Jose. Melinda says the team is also looking for a building to replicate the model of the BioCenter for the EBC, so they’re currently in process with a bunch of land owners and building owners to pick the best building for the EBC. It’s expected that what will result will be an incredible clean tech innovation center. I know PGE and the CEC are already committed to partnering with Prescience on the new EBC.
So there you go – Prescience in a nutshell. It’s a quick and dirty blog, I realize, but it’s an important one. It’s organizations like Prescience that exist to inspire and support entrepreneurs like you. Prescience is a part of what makes Silicon Valley so unique. And it’s people like Melinda and her team that do the dirty work behind the scenes, in the trenches with the entrepreneurs. So here’s to Melinda and her team, and to all you entrepreneurs building cleantech and bio companies and those supporting you….may you be inspired in this season and into the next, and the next and the next….
Happy holidays!
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Upcoming Prescience International Events To Note:
http://www.environmentalcluster.org/events.html
Meet with… RockPort Capital Partners
January 29, 2010 | 8:30am-1:00pm | @ Fenwick & West LLP 801 California St, Mountain View, CA
The Meet with Series is a partnering and coaching series for entrepreneurs. The goal of the program is to facilitate meetings between cleantech entrepreneurs and investors, customers and potential partners.
Industry Panel Series: Public Finance
February 18, 2010 | 3:30pm-7:00pm | @ Fenwick & West LLP 801 California St, Mountain View, CA
Meet with… Mohr Davidow Ventures
March 11, 2010 | 8:30am-4:00pm | @ Fenwick & West LLP 801 California St, Mountain View, CA
The Meet with Series is a partnering and coaching series for entrepreneurs. The goal of the program is to facilitate meetings between cleantech entrepreneurs and investors, customers and potential partners.
Biz Dev Series: Public Finance
March 16, 2010
Comp & Benefits Series
March 24, 2010
Legal Series
March 30, 2010 | @ Fenwick & West LLP 801 California St, Mountain View, CA
M&A Activity in Cleantech – Planning a Good Deal, Planning Your Exit
April 8, 2010 | 3:30pm-7:00pm | @ Fenwick & West LLP 801 California St, Mountain View, CA
Is there a strong M&A market for Cleantech? What needs to be considered for a cleantech M&A that is different than in other industries? What are the typical deal structures? Most importantly, how can you position your company to make acquisition an attractive option?
Biz Dev Series: Grant Writing
April 20, 2010
Meet with… Bosch
April 30, 2010 | 8:30am-4:00pm | @ Fenwick & West LLP 801 California St, Mountain View, CA
The Meet with Series is a partnering and coaching series for entrepreneurs. The goal of the program is to facilitate meetings between cleantech entrepreneurs and investors, customers and potential partners.
BioCenter Upcoming Events To Note:
http://www.sjbiocenter.com/events.html
Grant Writing – January 21, 2010 – a BioCenter Business Development workshop – San Jose, California
Selecting Your Contract Research Providers – February 2, 2010 – a BioCenter All About Science event – San Jose, California
Effective outsourcing: Navigating Hurdles and Avoiding Pitfalls in Virtual Drug Development – February 11, 2010 – a BioCenter All About Science event – San Jose, California
409A and Issues Around Valuation of Company Common Stock – February 17, 2010 – a BioCenter Comp & Benefits workshop – Menlo Park, California
The Ten Mistakes That Senior Management Teams Make with Investigational New Drug Applications (INDs) – March 2, 2010 – a BioCenter All About Science event – San Jose, California
How to Become a VC Magnet – March 18, 2010 – a BioCenter Industry Panel event – Menlo Park, California
Meet with… Amgen – April 22, 2010 – a BioCenter Meet with… event – San Jose, California
Meet with… Gilead – June 23, 2010 – a BioCenter Meet with… event – San Jose, California
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Greener World Media is right in the midst of the final day of what is their flagship conference, Greener By Design -Greener Products For Leaner Times, and it’s one I recommend nobody miss if you can still squeeze in time to go today before the conference ends. “On the bleeding edge of product design” is how one attendee described the conference to me, and that pretty much sums it up.
Greener By Design is for anybody tasked with rethinking their industry, rethinking their company’s strategy, rethinking their product lines, rethinking what goes into their product lines, to the rethinking of product design – from the chemicals to the materials to the composition of the materials.
Part classroom, part thought leadership forum, Greener By Design is a fascinating place to plant yourself for a couple of days. You’ll get a chance to listen and you’ll also get a chance to role up your sleeves and interact.
Joel Makower, Pete May, and the rest of their team have assembled some of the best creative minds in design, and it shows. From Amnon Levav’s presentation (Amnon is MD of SIT International, btw), which was more like a class, as we were all put to work — to listening to Peter Arnell, chairman and chief creative officer, Arnell, walk us through the design process of the Peapod — one can’t help but come away feeling like you’ve had an opportunity to step outside of the box and see things through a new lens.
The Peapod, for example, was taken from concept to the street in 6 months. Just the idea of it – a Neighborhood Electric Vehicle – one that doesn’t go about 25 miles per hour, is fascinating. What city or neighborhood street allows you to go above 25 anyway? Peter told us yesterday that he has pictures of people with big smiles on their faces when they saw the car go by on the road. The car literally makes people smile — it’s got a smiley face of a grill, and it’s utterly charming. “Adorable” is the word Peter used. One things for certain: we definitely need more smiles in this world, so let’s hear it for the Peapod.
One thing came across loud and clear — across the board yesterday: green has won its place front and center in the design process. Concepts such as “dematerialization” (where you might introduce a service instead of a product); or “revalorization” (where you recover value from a product’s life cycle -think Patagonia, or Xerox’s asset recovery program), and “detoxification” (think Method Home) hit me as I sat down in my first session.
It also was very clear that companies continue to develop their relationships with their retailers, finding it incredibly advantageous in the product design process to work closely with their retailers, to get from one product innovation to the next.
Key conversations from the conference you’ll want to check out, as well as companies of note:
- -Joel Makower in conversation with William McDonough. Check out McDonough Braungart Design Chemistry, if you haven’t already.
-David de Rothschild’s Plastiki, a boat made entirely out of Self reinforcing polyethylene terephthalate (SRPET).
-Check out Ohio State’s Center for Resilience. Very interesting.
-Go see what Sustainable Minds is doing. Fascinating company.
-Take HP’s Voodoo laptop. Now take just the box it comes in and consider that. Part of the design process the team went through was to unconstruct the “box” – so the team created a box that would purposefully be reused by consumers — no SKUs on the outside, no logos. The box has since been used for filing everything from office materials to kitchen utensils.
-Walmart continues to push the envelop in sustainability. It’s expected that the company will be coming out at some point soon with some semblence of a universal sustainability index for products. While Walmart’s Rand Waddoups, senior director of business strategy and sustainability at Wal-Mart, wasn’t at liberty to speak further about the subject when he got asked about it by Marc Gunther, what he did say is that the company will next be asking suppliers about the chemicals in the products being supplied to Walmart. “The vision is that every product has behind it information to allow us to be much more intelligent – bringing clarity to the question of ‘what is sustainability?’”
Full coverage of the conference can be found here. And if you weren’t able to make it this year- I’d highly suggest you add it to your to-do list for next. Greener World Media is soon to hit its 10 year anniversary mark, so stay tuned. The organization has more in store.
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This morning I was one of several bloggers briefed about a new report by the Military Advisory Board (MAB) of CNA, a non profit research organization which operates the Center for Naval Analyses and the Institute for Public Research.
The topic of discussion was a new report by issued by the MAB and CNA entitled “Powering America’s Defense: Energy and the Risks to National Security”
On the call were Vice Admiral (ret.) Dennis McGinn, former Commander of the U.S. Third Fleet, Deputy Chief of Naval Operations, Warfare Requirements and Programs, Admiral (ret.) John Nathman, former Vice Chief of Naval Operations, and General (ret.) Gordan Sullivan, former U.S. Army Chief of Staff.
I’ve included the press release below from the briefing so as to get this out the door faster than I can otherwise think and type tonight.
FOR IMMEDIATE RELEASE
NEW REPORT FROM TOP MILITARY LEADERS FINDS CURRENT US ENERGY POLICY POSES SERIOUS THREAT TO NATIONAL SECURITY
Study Finds Fossil Fuels & National Grid Threaten Military, Economic, Climate Security
Identifies Critical Opportunities for DoD Leadership & Innovation
WASHINGTON, D.C. (May 18, 2009) – America’s energy posture constitutes a serious and urgent threat to national security — militarily, diplomatically and economically, according to a blue-ribbon panel of top-ranking retired admirals and generals. In a report released today entitled “Powering America’s Defense: Energy and the Risks to National Security”
Moving beyond recent studies on the dangers of imported oil, this new report finds that fossil fuels, as well as the nation’s fragile electric grid, pose significant security threats to military mission and the country, and are “exploitable by those who wish to do us harm.” Issued by the Military Advisory Board (MAB) of CNA, a nonprofit research organization, the report identifies a series of “converging risks” associated with future energy choices, and concludes “diversifying our energy sources and moving away from fossil fuels where possible is critical to our future energy security.”
“It’s a sobering but honest, and necessary assessment,” said MAB chairman General Charles F. “Chuck” Wald, USAF (Ret.). “As military planners and as responsible public servants we cannot turn a blind eye to the dangerous realities of our energy situation. The current recession is no excuse for inaction. If we don’t address the fossil fuel issue now, we will see more price volatility, with steeper spikes and shorter cycles between spikes. We are already paying a penalty for not looking into the future.”
“There is a relationship between the major challenges we’re facing. Energy, security, economics, climate change – these things are connected,” former U.S. Army Chief of Staff Gordon R. Sullivan said in the report.
Due to the destabilizing nature of increasingly scarce resources, the impacts of energy demand and climate change are likely to increasingly drive military missions in this century, according to the report. The first priority for the new Administration, the MAB recommends, is to clearly and fully integrate energy security and climate change goals into national security and military planning.
“Increasing demand for, and dwindling supplies of, fossil fuels will lead to instability. In addition, the effects of global climate change will pose serious threats to water supplies and agricultural production, leading to intense competition for essentials,” said MAB member Vice Admiral (ret.) Dennis McGinn, former commander of the U.S. Third Fleet, and deputy chief of Naval Operations, Warfare Requirements and Programs. “The U.S. cannot assume that we will be untouched by these conflicts. We have to understand how these conflicts could play out, and prepare for them.”
The MAB, which produced the landmark 2007 report “National Security and the Threat of Climate Change”
The 2007 report found that climate change constitutes a “threat multiplier” because projected impacts will exacerbate existing security risks. Building on the 2007 report, the new report states, “Our approach to energy and our approach to climate change have profound impacts on each other – and both have impacts on our national security.”
National security risks resulting from the current U.S. energy posture identified in the report include:
U.S. dependence on oil – not just foreign oil – weakens international leverage, undermines foreign policy and leaves us vulnerable to unstable or hostile regimes.
Inefficient use of and over reliance on oil burdens the military, reduces combat effectiveness, and exacts a huge price tag – in dollars and lives.
U.S. dependency on fossil fuels undermines economic stability critical to national security.
A fragile domestic electric grid makes US military installations, and their critical infrastructure, unnecessarily vulnerable to incident, whether deliberate or accidental.
Looking forward, the report identifies the following converging risks associated with future energy choices:
The market for fossil fuels will be shaped by finite supplies and increasing demand. Continuing our heavy reliance on these fuels is a security risk.
Regulatory frameworks driven by climate change concerns will increase the costs – both economic and geopolitical – of using carbon-based fuels.
Insecurity driven by ongoing climate change has the potential to add significantly to the mission burden of the U.S. military in fragile regions of the world.
“In our view, confronting these converging risks is critical to ensuring America’s secure energy future,” the report states. “Consistency with our emerging climate policies should shape our energy and national security planning; we should not pursue energy options inconsistent with our national response to climate change.”
The Military Advisory Board calls on the Department of Defense (DoD) to take a leadership role – for government and the nation – in transforming America’s energy posture. “By addressing its own energy security needs,” the report finds “DoD can stimulate the market for new energy technologies and vehicle efficiencies.”
The Military Advisory Board outlines “A Roadmap for Energy Security” to help focus DoD’s investments in a strategic manner in order to mitigate its highest energy-related risks and optimize fiscal resources through a series of priorities.
Priority 1: Energy security and climate change goals should be clearly integrated into national security and military planning processes.
Priority 2: DoD should design and deploy systems to reduce the burden that inefficient energy use places on our troops as they engage overseas.
Priority 3: DoD should understand its use of energy at all levels of operations. DoD should know its carbon bootprint.
Priority 4: DoD should transform its use of energy at installations through aggressive pursuit of energy efficiency, smart grid technologies, and electrification of its vehicle fleet.
Priority 5: DoD should expand the adoption of distributed and renewable energy generation at its installations.
Priority 6: DoD should transform its long-term operational energy posture through investments in low-carbon liquid fuels that satisfy military performance requirements.
“Confronting this challenge is paramount for the military; to achieve the endstate, we must have a national approach,” the report states. Securing America’s energy future will require the active and consistent participation of governments at all levels, as well as that of all Americans, according to the report.
CNA is a non profit research organization which operates the Center for Naval Analyses and the Institute for Public Research
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This is an interesting read by Jeff St. John. It’s a very comprehensive article.
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Having just attended part of the NAEP’s Annual Conference in Arizona, this news caught my eye this morning:
Project, in idea stage, could cost $27B for 1st phase
By Mariana Alvarado, Arizona Daily Star, Tucson, Arizona
A Tucson company wants to send you someday on a sun-fueled ride from one end of the state to the other.
The idea of a high-speed train that runs on solar power is still in its early stage, but the project’s creators are pitching the idea to area cities and potential investors.
The idea is to start a train system that connects Tucson and Phoenix in a first phase. In the future it would extend north to Grand Canyon and south to Nogales. The cost for the first phase alone is estimated at $27 billion. It could start operating in 2018.
Retired civil engineer Bill Gaither and business partner Raymond Wright set up Solar Bullet LLC in Tucson in hopes of designing and building the 220 mph solar bullet train, which would run on four tracks. The innermost two tracks would be reserved for nonstop travel from Tucson to Phoenix, going 116 miles in a half hour, said Gaither. The other tracks would serve six intermediate stations in Chandler, Maricopa, Casa Grande, Eloy, Red Rock and Marana, extending the Phoenix-Tucson travel time to approximately 60 minutes, according to the project outline.
The rail could open up new opportunities for economic development in those cities, said Gaither. The train would require 110 megawatts of electricity and would operate with solar power generated from overhead panels. It would have a dedicated right-of-way.
Wright and Gaither met in 2008 during a Tucsonans for Sensible Transit meeting and worked together on the project. They are currently working independently. Wright has recently consulted with the engineering department at the University of Arizona to propose the system for federal funding. He figures his timing is right, given President Obama’s push for alternative energy transportation projects.
Gaither is looking to city officials at each of the intermediate stations and asking them to put up $5,000 toward the $35,000 needed for an economic and tax revenue analysis before the project moves forward. He is also organizing a workshop later this year for the intermediate cities.
A local transportation official said the solar-train idea may be worth further study but faces major obstacles.
“It’s a really fascinating concept. The price tag is quite high,” said Gary Hayes, executive director of the Pima Association of Governments and the Regional Transportation Authority.
Hayes said he’s met the solar-train organizers to talk about the concept, including the possibility of local government support for the economic analysis. He noted that a Tucson-Phoenix passenger train has been talked about for years, and the state Transportation Department is conducting a study of the concept under a U.S. grant. But Hayes said arranging the billions in government funding likely needed for the train would be tough, especially since the Tucson-Phoenix route was not on a list of priority high-speed rail corridors released recently by the Obama administration.
“First and foremost, you’d have to get on that list and then go from there,” Hayes said. Still, he’s not ready to dismiss the idea out of hand. “I would characterize it as, if you’re going to plan, plan big; if you’re going to dream, dream big,” Hayes said.
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With Earth Day now behind us, and Earth Week drawing to a close, I wanted to put a few thoughts out there on the subject. It’s not like it’s not been on my mind. This blog is the result of a conversation my friend Elke Heiss and I had last week, when we sat and talked about Earth Day – what it represents, the signs of maturity we’re seeing in the clean tech industry, what this maturity means for clean tech companies, and the need for continued outreach to and education of corporate and consumer buyers of clean tech products and services.
It’s almost 40 years since the advent of the first Earth Day. And since that first Earth Day, look at the shift in the role technology’s played: rather than being used as a way for us to consume more, more conveniently, and at an ever-accelerating pace, we’re now looking to technology to help us “conserve,” “preserve” and “reuse”.
One could even go so far as to say that, since that very first Earth Day, the clean tech sector as a whole has crossed that infamous “Chasm” – not as a single company, mind you, but as a collective. That said, though, the realist in me would also like to note that clean tech is not yet quite as big a part of mainstream consciousness as I’d like to believe. I watched Al Gore speak to the House Sub Committee on Energy this morning. Had you watched it, too, you’d understand what I mean. There are too many companies still struggling to get to the chasm, let alone cross it.
Over the long term, the energy efficiency gains and cost savings, health and environmental savings from deployed clean tech solutions should make any long-term thinking company with a rainy day fund realize that investing in such technologies now means they have a better chance of being around 10, 15, 40, 50 years down the road. You have to admit: “brand longevity” as a concept starts to look and sound a little different when you think about how high the cost to maintain “as is” truly is. But there are those disbelievers still. More dangerous and dark than that: ignorance. Those that choose to be ignorant and those that are through no fault of their own. But where it’s darkest, even a little light shined in can change everything.
So to all those companies (and behind them, the individuals), who have put money, time, sweat equity and brainpower into creating this generation of clean tech – it’s impossible to celebrate the promise of Earth Day, and Earth Week, without thanking you.
Elke and I believe it’s absolutely imperative that we continue educate the masses. People, en masse, eventually demand meaningful changes. Just look to the history books. We have gone through, and are still going through, some dark times. But at the same time, I’ve never seen such magical bright opportunity. It’s a time of incredible creativity, with incredible talent working on amazing solutions, and to boot – there’s a younger generation that wants in on the battle for Earth now. Young energy. They’ll continue to demand changes that only clean tech can provide. And just look around – there are more clean tech companies today than I can shake a stick at today – from environmental compliance software companies, to those that enable consumers to manage their energy consumption in real-time; from renewable energy solutions to alternative fuel vehicles; from electric cars to ecologically safe pesticides; from green building materials to next gen waste management companies, to carbon sequestration technologies; from biomass technologies to new water treatment technologies…the list is long. We’re witnessing the growth of new markets grow, companies being birthed while others are dying – and policy shifts that are taking progress to the next step. It’s clear that this fundamental shift is a tide that’s roaring in, and anything in its way isn’t going to make it out in one piece.
Clearly, this maturity of clean tech means both new opportunities and new challenges. For some in clean tech, the conditions are absolutely ideal. They’re in the right place at exactly the right time. However, even if that is the case, their long-term success will rest on their ability to actively educate and engage companies — whole communities, in fact — in dialogue about all the ways they (and the planet as a whole) will benefit from their products and services. And it’s taking each of us. Whether you’re volunteering to do so, or an employee in a clean tech company – we’re all needed to effectively spread the word about how clean tech addresses our long term prospects of survival.
The environmental challenges that we must collectively address are far more complex than they ever were back in the 1970s when this whole movement started in earnest. Because of this, the education process must continue, albeit at a different level.
It’s clear that “one size does NOT fit all” any longer. People expect conversations that are on target with their needs, not general messaging blasted from corporate megaphones. Moreover, policy and regulation changes are driving selling opportunities as much as buying behavior, and this will continue to have an impact on sales cycles. The implication is that the really big opportunities will accrue to companies that hire sales and marketing execs who are extraordinary strategists with a keen ability to filter information, who can deliver targeted messages about products that deliver real, immediate, seeable value to customers. You have to be able to articulate to your target customers all the benefits of your technologies – and where they’ll see the return, and how, and what that means for their business.
It’s also true that the baseline of knowledge corporate teams must now operate from is shifting; it’s more complex. A detailed understanding of what the new administration’s government credits, subsidies, and state and local incentive packages mean for your business is key. Right now, everyone I know is scurrying around, making sure they have a handle on where the stimulus package money is going, and trying to figure out how it’s going to flow out of municipalities, and how to get access to those funds at some level. You really have to do your homework; it will pay off.
You must target your messages, audience by audience, to maximize the return on your marketing and sales investments. At a more basic level, with the new channels out there, it’s easy for those who aren’t paying attention to miss a connection to a potential customer, simply because they haven’t explored these new channels. There are areas of opportunity hidden even in distressed sectors. Here’s a piece of unsolicited advice: assemble a strategic sales and marketing team focused on addressing the different market constituencies by filling in knowledge gaps. Take responsibility and assume you have to teach your customer or prospect what they need to know to be successful. The key is to assemble your partners, your suppliers and your customers, and go forward as a single, unified force. Let Earth Day, and Earth Week, remind you of how and why to go forward. It was a great grassroots initiative that gave Earth Day its foundation.
We must all continue the conversation – with our customers, employees, partners, investors and prospects. Properly engaged, armed with the right knowledge, corporate and consumer buyers will take this whole thing mainstream. Look at what’s happened with Earth Day: enhanced via social media to truly global proportions, Earth Day today is now an important annual event. And this one is special.
Keep the faith. Ask for help where you need it – it’s there – whether from your pr firm or otherwise. And stay focused.
Here’s hoping everyone has a great weekend – and happy hunting to all.
Elke, btw, is a VP with Sterling Communications. To contact her, call 415 350 5053.
About Sterling Communications, Inc.
Sterling Communications, Inc. — the Inside Agency(SM) — is an independent, full-service public relations agency that has a 20-year track record of generating visibility and enhancing the brands of technology companies across a variety of sectors. The Agency has worked successfully with industry pioneers in silicon, software, systems and ecosystems — from back- office IT solutions to global cleantech organizations. Sterling’s communications professionals take the time necessary to really understand not only the client’s product or service, but also the client’s overall business, the broader competitive landscape and the important market dynamics at play. Founded in 1989, the company is headquartered in Silicon Valley, with additional offices in San Francisco and Seattle. More information can be found at http://www.sterlingpr.com.
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It’s hot out here today. Yesterday was, too, for that matter. And from everything I hear, it gets really warm here in San Ramon in the summer, so I’m expecting much higher temps in a month or two. I don’t have a problem with that, but air conditioning in these temps is what makes it doable, in the summer, to be certain. I can’t imagine how the livestock survive the heat in the summer, as I’ve been out in Walnut Creek after meetings, when the thermometer in my car was 110+. But I digress. My point in writing about this today is the following: for all of you who are sweltering out there, looking for cooling solutions that are hyper energy efficient, you should take a look at Coolerado. It’s one cool (no pun intended) company with super energy efficient air conditioning. And it really caught my eye when it popped up on my radar screen.
Background
Coolerado is a Colorado based company that in 2004 was announced an R&D 100 Award winner. The company was also a 2006 Top 10 Green Building Product Green Spec Listed organization. And then and this year, the company was presented the Governor’s Excellence in Renewable Energy Award by Colorado Gov. Bill Ritter. (It’s actually one of a number of very cool Colorado-based cleantech companies that are out there – Tendril’s another.)
The technology behind Coolerado coolers is what makes it so interesting. And to discuss the technology, one alos has to understand more about the man behind Coolerado’s technology (which is otherwise known as the Maisotsenko Cooling Cycle) – Dr. Valeriy Maitsosenko. Valeriy’s an inventor as well as a scientist, and he is the inventor of the Maisotsenko Cooling Cycle, or “M-Cycle” as it’s otherwise known. If anyone can challenge conventional understanding of the laws of thermodynamics, Valeriy’s probably better qualified than anybody to do so. It’s certainly his passion. And his bio reads like he should be in a Bond/Jason Osbourne flick. The man is no slouch. He’s the former director of the Thermal Physics Research Laboratory in Odessa, in the Ukraine, and while in this capacity, was recognized by the government of the former Soviet Union as one of 11 top inventors in the USSR. Then in ‘92 he immigrated to the US and in ‘99 became a U.S. citizen. The man holds more than 125 heat-transfer and thermodynamics patents, earned a doctor of science degree in technology from the Moscow Civil Engineering Institute in 1988, obtained a candidate of science degree in technology (equivalent to a Ph.D.) from the Odessa Institute of Refrigeration Engineering in 1970, and received a Graduate Engineering Degree from the Odessa Institute of Refrigeration Engineering in 1963.
So it was Valeriy who first wrote me about his technology, and it was Valeriy who first pointed me to Coolerado. I was intrigued, and began to read more about what he was doing, and after exchanging some emails with Valeriy, I went to West Coast Green last year in part so that I could arrange time to connect with Coolerado’s CEO, Mike Luby, to talk about Coolerado’s application of Valeriy’s technology in the company’s heat exchanger product, as much as to learn more about its efficacy.
In a nutshell, here’s what Valeriy’s M-Cycle does inside a Coolerado air conditioner: It actually increases the cooling capacity (instead of decreasing the cooling capacity) of air when the incoming temperature of the air being cooled increases, using the M-Cycle. (Think of a heat and mass exchanger that divides an incoming air stream into a building into let’s say ‘product air’ and ‘working air’. The ‘product air’ remains separate from the ‘working air’ within dry channels the length of the core of the heat exchanger, rejecting its heat as ‘exhaust’ to the ‘working air’ through very thin plastic membranes. The ‘working air’ is blocked from entering the building, passed instead above and below the ‘product air’ stream in a cross-flow fashion, driving the heat that’s been transferred through the plastic film out of the heat exchanger. The heat gets rejected away from the supply air stream, which is pushed into the Coolerado Cooler heat exchanger with a single fan.)
What Are The Benefits?
The advantage of the Maisotsenko Cycle is that the working air is basically purged over and over again, so that initial conditions are essentially ‘reset’ as lower dry-bulb and web-bulb temperatures are established with each purge cycle. This allows the eventual supply air temperature to be below what the original conditions would indicate possible – below the thermodynamic wet bulb temperature. This key cycling feature is essentially what sets the Coolerado Air Conditioner apart from other indirect/direct evaporative cooling systems and enables greater cooling performance. Coolerado’s technologies reduce expensive peak demand charges, use up to 90% less electricity than a normal AC system, don’t require chemical refrigerants, and provide an extremely efficient heat recovery process. Coolerado air conditioners can even be ducted behind PV panels to improve their performance by more than 15 percent. Numbers I’ve been given by the company show that one Coolerado C60 (an HMX-only system) cools about 3000 square feet of space from a power draw of less than 600 watts. It provides 1400 CFM of conditioned air at ideal humidity, ideal humidity varying based on the temperature setting chosen. [Reference: Federal Energy Management Program (FEMP) study that was conducted by the National Renewable Energy Laboratory http://www1.eere.energy.gov/femp/pdfs/tir_coolerado.pdf]
Typical Installations?
These days Coolerado is replacing both Vapor Compression systems and failed indirect-direct evaporative coolers, and doing both residential as well as commercial installations successfully. They’re even putting their units side by side with Vapor Compression systems, cooling buildings for most of the season and allowing the traditional systems to kick in on the few days of the year when humidity (and wet bulb temperature) is too high. Nestle, in Modesto, California, and the Colorado School of Mines, along with at least one Gordon Biersch restaurant, a chocolate store and a transport company in the Netherlands all can claim to have a Coolerado somewhere on site. The air conditioners have been put on roofs, in attics, and even in basements.
What’s In A Coolerado AC System?
The HMXs are the heart of the system, representing almost 10 years of research and development, The basic components of a complete Coolerado HMX AC System are simple: the HMX(s), a fan, water delivery, and a box to hold it all together.
Who’s In Coolerado’s Sweet Spot?
Coolerado works best in areas with very low humidity, in buildings that generate large heat loads (think heavy machinery in enclosed spaces generating a lot of heat.). Coolerado units are saving 90% of the electric bill in these cases. The highest savings for any building are when humidity is low throughout the year, the cooling season is long, and the days are hot.
There you go. Check out Coolerado. And thank you, Valeriy, for the heads up on your very interesting technology…
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Interesting article by Jesse Berst – Courtesy of Smart Grid News
—–
With over $4 billion in Washington DC’s stimulus money now available for Smart Grid improvements and innovations, the burden now falls on the states to use these funds effectively and efficiently. The goal, as Smart Grid News’ Stimulus Scorecard makes clear, is to help consumers, utilities, the nation and the planet win.
Given that the world is moving to an Electricity Economy, modernizing the grid is one of the smartest things any state can do to ensure it will remain globally competitive. But which states have made the most progress? And which are now in the best position to deploy recently released stimulus dollars productively?
I asked a cross section of the brightest Smart Grid experts around the country for the ten “smartest” states in America. To my surprise, there was a strong consensus about who’s leading the charge toward a modernized electricity system. So, without further hesitation, here are the top ten smart grid states, as measured by their progress in policy, planning and implementation:
Tier 1
California: The Golden State is at the top of everyone’s list. On the policy side, regulators are out in front, pushing new Smart Grid practices. For their part, the state’s three big utilities – SCE, SDGE, and PG&E – have each developed best practice studies and frameworks that can help the rest of the country grasp the benefits of Smart Grid improvements. The three utilities are also rolling out smart meters to all of their customers. And, in terms of stimulus readiness, the state’s governor, Arnold Schwarzenegger, has vowed to get more stimulus money than any other state in the nation.
Texas: The Lone Star State is just behind California as the current Smart Grid leader. From a policy perspective, however, Texas is not quite as proactive as California. But three of its utilities – CenterPoint Energy, Oncor, and Austin Energy – are as progressive as any in the country, and they are well under way with smart meter rollouts. The next breakthrough here will be integrating a host of digital tools for the Smart Grid.
Tier 2
Florida: The Sunshine State has established a strong build out for the Smart Grid – especially in the area of load control and communications infrastructure. A major utility, FP&L, has many substantive programs and is planning a number of new rollouts that will advance Smart Grid efforts.
Illinois: The Prairie State has been cited for its collaborative approach to the Smart Grid. This involves and engages communities up and down and all across the state. Tight community linkage is crucial for optimal Smart Grid success.
Pennsylvania: The Keystone State is the nation’s leader when it comes to smart meter installation; a 2008 report from FERC indicates that advanced metering penetration has reached nearly 25 percent in Pennsylvania.
West Virginia: The Mountain State is about to unveil a fully integrated statewide Smart Grid plan. Experts are impressed by this comprehensive approach at such an early stage.
Ohio: The Buckeye State has a group of enlightened policy makers who have stressed smart grid education.
Tier 3
New Jersey: The Garden State’s guiding light on the Smart Grid, Commissioner Fred Butler, is a progressive pragmatist who also serves as the Chairman of the National Association of Regulatory Utility Commissioners (NARUC), where he is spearheading studies on standards and best practices for the Smart Grid.
Connecticut: The Constitution State is considered a Smart Grid policy and build-out leader. A supporter of Energy Improvement Districts, Connecticut has begun to increase use of distributed generation and demand response programs.
Colorado: The Centennial State has lots going for it in the Smart Grid world: First, Xcel’s 100,000-person Smart Grid city; second, the National Renewable Energy Laboratory in Boulder; and finally, Governor Bill Ritter, who is a big believer in Colorado’s new energy economy.
States to Watch
Michigan: DTE Energy is a forward-thinking utility that will enhance Smart Grid upgrades.
New York: Utilities in the state have done innovative research on the Smart Grid and how it would fare in dense urban areas.
Hawaii: The Department of Energy has selected Hawaii as a Smart Grid test case because of fossil-fuel dependence.
Indiana: Duke Energy’s plan for smart meter installation is currently under consideration by the state.
These informal Smart Grid rankings are a snapshot in time. Our electricity system is about to undergo major changes, thanks – in part – to federal stimulus funding.
In such a dynamic environment, it’s unclear who will be the Smart Grid leaders and followers in 2010. It’s also hard to say which states will be able to stay ahead in all three major smart grid categories – policy-making, planning, and implementation.
That said, there are already many lessons to learn right now – in how to plan, how to set policy, and even how to pursue stimulus dollars – from regulators and utilities in states like California, Texas, Florida, Pennsylvania, West Virginia, Illinois, Ohio, New Jersey, Connecticut and Colorado. These lessons will be invaluable if we are to keep pace with China, Europe and the Middle East, all of which are aggressively upgrading their electricity grids.
So, as we close the first quarter of a very eventful 2009, these are the country’s “smartest” states.
A version of this article previously appeared in GreenTech Media.
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Hey folks – The leading clean tech business plan competition, the Clean Tech Open, just keeps getting bigger and better. Call it aggressive expansion. Entrepreneurs, take note:
For clean tech start-ups, especially given current market conditions, this Competition’s a must-consider. And this year, the prize money just got bigger. Entrepreneurs will compete for more than $1 million in prizes. See below for more details.
125 startups have ALREADY participated in the short time this organization’s been around, and in total, generated 120 mio + in funding. That’s not a small number of start ups participating. And that doesn’t include those that applied and didn’t get into the competition, either. So get yourself, and your team, and get organized and enter. You’ll get fantastic support through the whole process, connections out the wazooooo, street cred that’s an immediate door-opener, and training that will benefit you through your lifetime in business. The Competition’s officially open as of yesterday, so hop to it. Entries are due by May 30, and final judging and awards will take place and be announced in San Francisco in October.
And btw – don’t expect The Clean Tech Open to just focus on the competition piece of the equation: With the announcement of the organization’s 100K Job Challenge, the organization’s Executive Director Rex Northen and CTO co-founders Mark Gottschalk and Michael Santullo are aiming for 100,000 jobs in 10 regions by 2015, while the organization continues to expand its reach. The Clean Tech Open has put a presence in both the Rocky Mountains, including Colorado, Montana, New Mexico, Utah and Wyoming; and the Pacific Northwest, including Washington, Oregon and Idaho.
And to all you entrepreneurs: San Jose’s Mayor Chuck Reed wants to generate 25,000 jobs of the 100,000 jobs targeted by the CTO in this job challenge. I think Reed’s clean tech team is doing all they can to support clean tech companies, so that should be a “note to self” for entrepreneurs who are considering launching manufacturing, production, or other operations in the San Jose area.
Happy Friday to all.
Competition details
Early stage startups are invited to enter in six competition categories: renewable energy, transportation, smart power, energy efficiency, green building, and air/water/waste management. More information on the competition is here: http://www.cleantechopen.com/competition.php?page=home
Startups will compete first for regional prizes-$100,000 in cash and services to each of six winners in California; cash and services worth $50,000 to each of the three winners in both the Pacific Northwest and Rocky Mountain regions. The 12 regional winners will then face off in a national competition, vying for the Grand Prize of $250,000 in cash and services. The competition is now open in all regions, and startups have until May 30, 2009 to submit entries. Semifinalists will be selected in each category and invited to participate in the Clean Tech Open Accelerator program, where they will be given hands-on training and experience in all aspects of starting and sustaining their businesses from national experts in venture capital, business, law, marketing and sustainability.
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I’ve written about Serious Materials before. I had to post this, because it’s so cool to see…you’ll want to watch this http://vimeo.com/3712470.
…Makes you proud of the Serious Materials team…and all the others out there doing similar things. Let’s keep it up.
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Interesting news…more here: http://gas2.org/2009/03/10/nissan-to-trial-fast-charge-electric-car-network-in-arizona/.
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Hey folks – a couple of notes for the day…while I’m here at home recuperating from some minor surgery in our as of yet still-somewhat-unpacked new abode, multi-tasking, trying to write a proposal while finishing this blog…
Clean Edge has come out with its 6th annual Clean Energy Trends 2009. You can download the report here: http://cleanedge.com/reports/reports-trends2009.php. No surprises from Clean Edge in the expectation that revenues from cleantech companies will be flat or slightly declining this year; but what was interesting for me yesterday morning was hearing the perspectives of the Clean Edge team. Micro-power and grid transmission technologies will make headlines this year; and utility scale energy storage is getting interesting. Perhaps not surprising, but I am particularly fascinated by micro power stuff. I had taken note a year or two a go when people started talking about micro-scale power, but it was so early, I didn’t really dig into the subject. But my ears perked up with interest to hear Joel’s comments about Walmart, which has 2 stores currently running on micro grids…taking the first steps to control its own power destiny. Whether Walmart will eventually become a power provider…we’ll see. Very interesting idea to think about though, considering that a few years ago, I remember thinking that utilities were going to look very different in the future from how they look today. There is much more to garner from the report, including Clean Edge forecasts for the wind, biofuels, and solar PV markets. The firm also provides an analysis of the American Recovery & Reinvestment Act of 2009, signed into law by President Obama. $70 billion in direct spending and tax credits for clean energy and transportation programs. Finally!
Next on my writing agenda: consider this a heads up: the 4th Annual Clean Tech Open Competition will kick of March 19 at San Jose City Hall. More here. I’ve provided a link to a discount code below for those of you who’d like to attend. Past winners of the Clean Tech Open are busy and if you’re looking for interesting cleantech businesses to fund-check out CTO companies. I’ve given some brief background on last year’s winners below. Through the CTO there are plenty of opportunities to speak with alums as they’re working on their ventures, and if you’re seriously interested in funding opportunities with any of these companies, you can contact them either through CTO staff or directly.
As a bit of background, to date, there are 125 alumni companies from 3 annual Clean Tech Open competitions that have taken place; 84% are still active; over 500 people have been employed by alumni companies, with 1248 projected employees by end of ‘09; all told, alums have secured $125 mio in private funding to date, and are serving almost 1000 customers already. So this morning when I sat on the 2nd Clean Tech Open Briefing call, it was great to see how the Clean Tech Open has taken even the next step in its growth. The organization has launched an Accelerator program for participating companies; and expanded even further, announcing they have expanded into the Northwest. Expect 3 rounds of elimination in this year’s competition – i.e. you can pass go, then you have to pass another round – the semi-finalist round, and then there’s the winner’s circle, if you’re lucky. Good luck. Good news: the CTO has volunteers working on translating what the federal monies mean in terms of opportunities for companies interested/looking to take advantage of federal funds. It doesn’t get better than that. Sign up now, while it’s cheap to do so, if you’re a start-up interested in participating.
A few details:
-Your team must have at least 2 members
-You must have no more than 300k in third party funding at registration
-All team members must be US citizens or legal residents
-You can register at www.CleanTechOpen.com
-Create a team online in one of six categories
-The cost is $125 until 3/31.
Just a note for those of you who may/may not be local, or haven’t really followed what’s happened with the CTO: The Clean Tech Open is really paving the way for entrepreneurs to work as closely with various influencers in the clean tech community as possible. Truly. I can’t really think of an organization more tightly intertwined with all the necessary moving parts that can achieve what the CTO is able to achieve. This morning, for example, the discussion was around how to work with investor owned utilities, and what to expect if a company is an emerging technology, in working with an IOU. You might think that’s sort of mundane, but in truth, the CTO has really created a forum for real entrepreneurship, Silicon Valley-style, that shows off the best of what Silicon Valley can do and make possible. The information shared this morning was invaluable; the discussion around IOUs should be a total giveaway as to just how important the topic of ‘smart grid’ has become around here. Panelists this morning included Robyn Zander Program Manager, Southern California Edison, Abdullah Ahmed, Emergin Tech Manager, SDG&E, and Joanne Medvitz, Sr. Program Manager, Tech Transfer, PG&E, and discussed was the IOUs’ proposed technology resource outreach incubator program (TRIO) for emerging technology vendors, as well as how emerging technology companies can engage with IOUs.
Ultimately, such coordinated efforts demonstrate that the goal is to speed the commercialization of energy efficient technologies, and what you’re witnessing by attending such CTO events is a view to the “all hands on deck” mentality making it happen now. The Clean Tech Open as an organization has this unique ability to get all the necessary participants to the table to make these sorts of things happen, bridging the gaps in the market where emerging technologies often have difficulty getting commercialized, whether between public and private sector parties or otherwise. Anyway, look for the next CTO briefing to include a panel of representatives from some of the local labs. It’ll be extremely educational, and give you a marvelous glimpse into the inner workings of Silicon Valley tech transfer as it happens between labs, entrepreneurs, and the money inbetween…
For a discount code – use: LaraLaunch to receive a 25% discount for the Clean Tech Open Launch on the 19th. You can register here: http://www.cleantechopen.com/app.cgi/events/view/62
And here’s my brief bit about the 2008 winners – for those of you who missed it – which included…
- Over the Moon Diapers (eco-friendly diapering)
- Viridis Earth (residential HVAC retrofit)
- BottleStone (ceramic stone surface material with lower carbon footprint)
- Focal Point Energy (Solar hot water and steam generation for industrial applications)
- Power Assure (on-demand energy efficiency)
- ElectraDrive (rapid, inexpensive adaptation of existing vehicles to electric drive)
About ElectraDrive
Winner of the Transportation Prize at the 2008 California Clean Tech Open, and just nominated for a Crunchie, ElectraDrive is commercializing technologies to bring plug-and-play functionality to vehicle electrification. ElectraDrive offers a fully-integrated extended-range electric drivetrain to replace a vehicle’s gas drivetrain. The company has created a common underlying platform possessing the capability to rapidly integrate a wide variety of supported electric drive components into a wide range of vehicles. Their products include: ElectraMount, a continuously adjustable mounting frame for electric drive components, which allows components to be rapidly installed into vehicles whose gas drivetrains have been removed; and ElectraCore, another one of ElectraDrive’s products, is a proprietary operating system and data architecture allowing diverse supported electric drive components to be integrated and controlled within a variety of vehicle platforms using plug-and-play functionality. It can be plugged into the mains to recharge, but it also can be charged on the go from an onboard generator. The range-extending generator removes any worry about running out of juice. By retaining the existing gas tank, a car can go more than 2000 miles between fill-ups in mixed driving, provided it is plugged in at night. Overall fuel consumption may be reduced by a factor of ten. An ElectraDrive system can equally convert an existing vehicle or electrify a new ‘roller’ (vehicle without drivetrain) off the production line. ElectraDrive’s core technologies take advantage of the modularity of electric drive components to provide many different ‘flavors’ of its drive system, configured to meet the needs of different vehicles (such as front-wheel-drive or rear-wheel-drive) and driving cycles (for example, urban vs. highway). Contact Ray Jenks (415) 609-3425 rnj@electradrive.net or Fraser Murison Smith, 415.425.9891, fdms@electradrive.net, for more information.
Viridis Earth
Viridis Earth’s HelioMist technology was awarded the CCTO’s 2008 Energy Efficiency Award. The product is commercialized by AC Research Lab, Inc., which is currently in residence at the San Jose Environmental Business Cluster. Viridis has devised a $350 retrofitting device for residential and small commercial air conditioners (think old AC units) that it says will pay for itself in a single season of use. Contact Tuyen Vo, at tvo@viridisearth.com for more information.
About Power Assure
Power Assure was the 2008 Smart Power Category Winner at the CCTO awards. The company aims to make the average data center 50-80 percent more efficient by offering a platform service drawing from multiple other vendors. The company’s key solution set, Pasergy, is an energy efficiency management software application that says it can provide a range of energy savings solutions for virtualized or conventional web server farms and data centers. Contact Donnie Foster , 650.302.3219, dkfoster@powerassure.com, for more information.
About Over The Moon Diapers
Currently in focus group tests, Over the Moon Diapers is largely still in stealth. Jennifer will tell you she fixated on diapers while pregnant…long story short – Over The Moon Diapers was born. For more information, I encourage you to connect with the company’s founder, Jennifer Billock. Contact Jennifer at 415.648.5147, or jen@billock.com for more information.
About Focal Point Energy
Focal Point Energy is a company whose founder, Allen Bronstein waited 17 years for the right market entry opportunity. Bronstein had to shelve his initial concept due to market conditions all those years ago, but Bronstein is back at it again today. Focal Point Energy provides process heat and steam for commercial applications using a solar hot water and steam generator. The company stretches a reflective membrane instead of bigger, more expensive mirrors, between steel frames to generate thermal steam. The resulting effect provides steam for about 10 hours a day, and is light enough to mount on rooftops. Contact Allen Bronstein, at 650.796.1065 or gosolar46@gmail.com for more information.
About BottleStone
BottleStone’s founder says he’s a ceramic artist with a scientific background, so BottleStone’s concept is no surprise. “I’m a recycler at heart,” Paul told the audience last week at the Commonwealth Club. “20 years ago, I was recycling brewer’s yeast in tiles and trying all kinds of different things. I finally developed Bottlestone, which is 80% waste glass from recycling.” It’s a beautiful product, if you haven’t seen it – or perhaps you have…the company’s had its products displayed in a Sunset design home. Bottlestone provides a green alternative to stone slabs while also meeting or exceeding all of the other heat, scratch and stain resistant characteristics of stone slabs, not to mention a wonderful array of colors. It’s eligible for LEED* credits and the waste glass the company uses is direct from post-consumer (glass bottles), and is generated in Northern California, requiring no further processing before its use in BottleStone. The company’s initial point of market entry is countertop slabs. For more information, contact Michael Looney at mike@bottlestone.com or 650 949 0999.
Finally – I promised Linda Holroyd that I would spread the word regarding FountainBlue’s next Clean Energy Entrepreneurs’ Forum – Topic: Working with the Utilities. Also great events to go to, the Fountainblue panel will feature Facilitator Craig Lobdell, Director, KPMG; Lee Cooper, Manager, Emerging Technologies, Customer Energy Efficiency Pacific Gas and Electric Company; Gerd Goette, Managing Partner, Siemens Ventures; Elise Zoli, Partner and Chair, Clean Energy Practice, Goodwin Procter LLC, and a panelist from Electric Power Research Institute, still to be confirmed
Date & Time: Monday, April 6 from 5:30 – 7:30 p.m.
Location: EPRI, 3420 Hillview Avenue, Palo Alto
Audience: Clean Energy Entrepreneurs, Intrapreneurs & Investors,
No Service Providers Please
Registration: http://www.acteva.com/booking.cfm?bevaid=162509 by Friday, April 3 at noon.
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For those of you who like/are interested in green gadgets…here’s the roundup from this year’s competition over at Greener Gadgets. More here.
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Today I wanted to write about a company whose customers are oil refineries because theirs is an interesting case of value creation to ponder. You’re probably wondering how ‘green’ this is, but bear with me – I’ll get to that part. Where I wanted to go with this for now is the following – and that is this: if you can’t provide some level of lasting value to the marketplace, (and today’s market is making it even harder for everybody – you really have to have something of value, of necessity, for the market to be supportive of it), you’ll be hard pressed to build business. You have to be able to create value. Nothing else is making the cut in today’s market. What do I mean by this?
Let’s look at one company targeting the oil industry, refineries in particular. The oil industry is actually a good a place to look for a case study in value creation, since we’re still not able to say we’re no longer hooked on oil, (no matter how fast many of us would like to say otherwise) – and the oil industry’s going through changes that make it interesting to consider for the purposes of this blog.
Refineries are as you probably know, increasingly looking to increase the value they can extract from every barrel of oil that comes through the door. This also means lowering the sulphur content of the oil they’re refining. I’m all for lowering the sulphur content of oil, as sulphur can be a source of acid rain; it can also deactivate the catalytic converter in your car. So, my thought is, if a refinery can theoretically use a barrel of oil and its corresponding petroleum products in a slightly more environmentally friendly manner, AND get to fuel more cost-effectively, enabling them to shave off some costs in the refining process, why wouldn’t they? This is what SulphCo’s technology is designed to do. And this is what they plan to do for refineries.
The company has been around a while, having gone public in 2001. I even briefly mentioned SulphCo in a blog note back in June of last year. After watching the press releases come in for a while, I decided to investigate further, and ended up speaking with SulphCo’s Chief Technology Officer, Dr. Florian J. Schattenmann late in the Fall. Briefly, a bit of background: headquartered in Houston, Texas, SulphCo was founded by Dr. Rudolf Gunnerman to develop and commercialize its Sonocracking™ technology, which utilizes high power ultrasound and is designed to reduce sulfur content in crude oil while simultaneously improving the overall quality of the crude. Basically, the technology is designed to upgrade sour crude oils into sweeter, lighter crude oils, producing more gallons of usable oil per barrel, while at the same time, desulfurizing crude oil and other oil related products.
“We can get to fuels more cost effectively, and get to fuels with less environmental impact as well (less sulphur compounds),” Schattenmann said to me in our phone call last month. “We’re trying to take the fuels and improve the quality of them – our goal being to take an existing fuel and clean it up, with much lower sulphur byproduct.”
The original premise SulphCo was operating under was that by using ultrasound alone, the company could create a higher quality of oil. Though in fact a bit more than that is actually required to make a better, cleaner oil, what’s useful for SulphCo about their original premise is that using ultrasound makes this process of creating a higher quality of oil commercially viable – viable at commercially interesting production rates, that is.
To further explain the science: the company’s original patent, by Professor Yen from USC, claims that you can basically take the sulphur that’s in the oil (chemically bound to some of the oil molecules), and oxidize it by using hydrogen peroxide (a classic oxidant) together with ultrasound. On a molecular level, the hydrogen peroxide donates one of its two oxygens to the sulphur to form water as the byproduct. The treated oil typically has less sulfur, lower viscosity and a higher API. In addition the remaining sulfur has been converted to a different type of sulfur species that can be separated much easier. The oil, the hydrogen peroxide solution and the catalyst essentially come into a reactor, where very intense mixing happens in a cavitation zone (the ultrasound). The reaction takes place in literally half a second or less. The water and oil separate, the water gets recycled, and new hydrogen peroxide is added to offset the used hydrogen peroxide in what is more or less a closed loop system.
“We use the hydrogen peroxide as an oxygen transfer agent – it sort of docks on to this catalyst structure and becomes a very labile structure, though it has some lifetime – so added to the best substrate (sulphur), it can create very good yields,” says Schattenmann. “The way we track this is we take a sample of the feed, look at it [in a gas chromatograph (GC)], and look at the peaks. We also take samples at the outlet of the reaction, and put those in a GC analytical instrument, and then see what happens with the sulphur. The result we see is that the original sulphur species are almost gone, and new peaks representing sulphur compounds with higher boiling points have been generated. So the compounds can be much more easily separated. Ultimately, we think the sulphur’s really working quite well as a substrate.”
SulphCo’s Advantage
The real advantage in all this? In addition to this being an energy-positive process, the resulting sulphur species after treatment have much higher boiling points (whereas the original sulphur species are very difficult to separate, being more soluble in the oil) – and if you do any fractionation and any separation that’s typically done by any refinery, you now have low-value bottoms (the gooey black stuff) and that’s where the sulphur stays. “So the sulphur’s not in the high value fractions, which is what our end customers want and use,” says Schattenmann.
The currently used method, Schattenmann explained to me, and SulphCo’s main competing technology, is hydro-treatment, which Schattenmann told me works well but is extremely expensive, especially for the many smaller refineries that use the hydro-treatment process. These smaller refineries don’t have the capability (and can’t add capability quickly) to refine more because the cost to do so is prohibitive. “So it’s for the smaller refineries that we can really add a lot of value,” says Schattenmann. “Plus, the compounds that are very good for our chemistry are very tough to take out with the current hydro-treating. So we can also help stretch the capacities of existing hydro-treating by employing our low-cost tech up front.”
SulphCo’s Sweetspot
“Every oil or petroleum product has a different sulphur content, so there are quite a few questions we have to answer to qualify an opportunity,” says Schattenmann. “As you would expect, the cost of the chemical additives directly correlates to the amount of sulfur to be removed. One sweet spot would be where the starting value of sulphur is already moderate or low – but where a customer needs to move it lower. For instance – we could treat diesel fuels and other middle distillate streams – a multi-million barrel per day segment – as well as certain crudes that have moderately low sulphur values. But even with higher sulphur oils there are opportunities – it all depends of the specific cost-benefit equation. Getting the sulphur moved to higher boiling points means that the lower boiling fractions have been changed (cleaned). Anything that pushes the sulphur content requirement lower, like new legislation for diesel fuel that requires 10~15 parts per million (ppm), rather than the old requirement of 500 ppm, is really good for us because then we can really help.”
Progress to Date
As for SulphCo’s progress to date, SulphCo is currently in the process of commercially validating their technology on a full-scale basis and has installations in Fujairah, UAE and at a testing site in conjunction with a validation partner in Europe. I just received a press release today, actually, announcing commencement of the firm’s full-scale field trials in Europe.
So – back to my original comments. Create real, lasting value for your customers, and the business will come. My guess is that business will continue to build for SulphCo. They’re focused on creating lasting value for their target customer base – and they’re dealing with a market with a real problem and the very real need to figure out how to get more value from a finite supply of product…a barrel of oil.
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Well, another year has come to a close and another begins. I hope everyone had a great holiday and I wish you all a very happy New Year.
For everyone buried in work at the end of Q4, I’ll just sum up the year by saying that it was a phenomenally fast-moving year on the cleantech front. Just trying to keep an eye on where the early stage stuff was getting moved through the chute – and how fast it was moving – and what money was moving what – was hard. Some really interesting things happened, too. You may have heard that the California Clean Tech Open announced a collaboration this last year with the National Lab system on green buildings; and that it is now expanding regionally, across the U.S. is significant in and of itself. And though it was late in ’07 that the DoE’s Commercialization Team announced it was putting entrepreneurs in residence in their labs to help identify and speed commercialization of novel cleantech IP, tightening and deepening their relationship with venture capital, this program really started to move forward more in ’08. And now that Steven Chu has been made Energy Chief – well, I was really pleased to hear that.
Other really cool things happened this year, too – everywhere I turned this last year, there was an opportunity to speak with companies building green businesses, clean technologies, eco-cities, smart building technologies and reinventing transportation options, as well as new water purification technologies being borne in labs, and – well, I could keep going. And the job creation possibilities from all this? Phenomenal. In the midst of such a spectacularly awful economic nosedive, it’s been clear to see that the old has been dying away, and is being replaced by the new.
That 2008 ended with a record number of cleantech funding deals closing the 4th quarter, rounding out another record year of cleantech funding from the venture capital community, isn’t surprising. That said, (as I’m sure you’re not surprised to hear) we’re likely to see vc investment in cleantech in ’09 decline somewhat, given the economic conditions of the moment. The decline in VC funding is, I’m guessing, likely to be offset somewhat by the amount of money one would expect to see coming into cleantech from government initiatives. We’ll see. From those companies that raised sufficient capital prior to Q3 ’08, to scale production and establish initial manufacturing facilities, we’ll probably see some very interesting growth activity in ’09. For those that aren’t holding 24 months of cash, we’ll have to see. VCs are getting very particular about which companies in their portfolios they will continue to support through this downturn, and investment dollars, as you all know, aren’t so easy to come by.
What’s now apparent, in the current economic climate, is that organizations that have been able to speed things cleantech through the hopper to commercialization and production are now, more than ever, really critical to a company’s success – and along with it – a company’s ability to execute.
What this means is that especially since operating cash isn’t so readily available or easy to come by, the speed with which a company can garner support for commercialization and production of its cleantech products and services is key. One thing investors can do is work with local/regional government entitites who can provide some level of growth support.
One city – the city of San Jose – is showing great support to companies going through its incubators. Towards the end of last year, I had a chance to speak with Collin O’Mara, the city of San Jose’s Clean Tech Strategist. Collin’s the strategic lead for Mayor Chuck Reed’s Green Vision, a 15-year plan to turn San Jose into the world’s epicenter for clean tech innovation. O’Mara and his team also happen to lead San Jose’s Clean Tech Strategy team, which is focused on development relationships with investors and companies the team can bring into the City of San Jose, where these companies can grow and develop and bring jobs to the city – - they work not only with their incubator staff teams, but with the vc community, universities, investors, and entrepreneurs as well as regional and national government.
“We can work with investors and companies at the speed of Silicon Valley in the way that no other government organization can. And we’ve been successful in going to the federal government to get guaranteed loans. We work closely with the DoE, the PuC, and venture capitalists, and we partner with experts to make sure to target those to go after (i.e. Tesla) – to put them into our incubator network to be successful. It’s not something we do in a vacuum to figure out if San Jose can be a fit for a company. And while a lot of communities have a “one size fits all” approach, we find it doesn’t make sense for us here. The best we can bring to the table is speed. That’s worth more to them than any million dollar incentive. And when as a clean tech company you need to conserve cash as long as possible, then you want speed – and speed then becomes most important.”
O’Mara clearly understands that the time is now to focus on adoption and realizing the promise of technologies with massive applications, so his team is running hard. While they’re happy the city can now count 40 clean tech companies within its boundaries now, O’Mara’s boss, Mayor Reed, has made it official that he wants to create 25,000 clean tech jobs within a decade, so O’Mara and his team are on the hunt to find, groom and grow the next potential cleantech stars. Already the city has partnered with the California Clean Tech Open to place top-ranked competitors in San Jose’s Environmental Business Cluster, the country’s top incubator for environmentally oriented startups. San Jose’s pushing new cleantech companies through the EBC and the San Jose BioCenter, helping develop the companies operationally, and where necessary, helping to secure funding options for the next step after the incubator.
What’s unusual about San Jose’s clean tech strategy team is that a) it exists, and b) it has fingers into pretty much all the high caliber venture capital firms and thought-leadership available in the Bay Area’s surrounding universities; and c) its speed to action. I have a friend who teaches at Kellogg, and not too long ago said to me that he loves how things get done out here, even compared to Chicago. “Things just seem to move faster in Silicon Valley,” he said. “People make things happen very fast.” Another friend from NY commented that things moved even faster than they do in NY. Honestly, I think they do, too.
When I asked Collin what he was most interested in, in terms of new business development opportunities, he told me he was interested in anything having to do with renewable energy, biofuels (particularly synthetic applications), advanced applications for transportation, green building controls as well as monitoring applications; smart metering technologies, lighting, hvac, heating and cooling systems. He also noted the incredible amount of innovation the city was seeing from small start ups in LEDs and taillights.
“We think we’re a great fit for high efficiency poly crystalline and concentrated pv, too,” he told me. “Same goes for advanced engineering around turbine design, including microtidal technologies,” O’Mara continued, “And for companies trying to evolve the car – and the infrastructure around it, including anything communications-related (rather than just adapting it), this is the sort of thing that’s right up the alley of a lot of San Jose and more so Silicon Valley entrepreneurs. There’s really just no better environment in which a clean tech company can test and demo new products.”
O’Mara’s boss (and San Jose’s mayor) Mayor Reed, has garnered solid support from the community for its initiative in making San Jose an epicenter of cleantech innovation that’s already recognized as such around the globe. A proponent of cleantech, Reed is considered to have a thorough understanding of the nature of the clean tech universe, and is therefore seen as a real asset to the investor community.
So while O’Mara and Reed know that many of the city’s goals will require monumental policy shifts (last year the team was already ramping up its efforts for ’09, aware that policy shifts had to take a front seat for this year), they’ve got the support of the community behind them.
So if you’re thinking you’re ready to engage the city in a discussion, here are some qualifiers to consider, as the city’s cleantech team will be looking at the same things in doing their due diligence on your investment…(and don’t be shy…the team doesn’t tend to shy away from initial conversations):
-Who are your competitors in the market?
-Is the technology scalable?
-Is it likely to be sustainable as an individual entity/taken over through an acquisition?
-Does the company have the ability to survive in the creative destruction that defines Silicon Valley?
To contact Colin, you can reach him at the City of San Jose’s Web site.
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Worth reading up on/watching the webcast. More here.
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In case you didn’t catch it, it’s Massachusetts’ Clean Energy Week, and this is probably THE regional event showcasing clean energy startup companies that you’ll want to go check out, if you’re in the area.
More on the conference here.
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I walked away from Always On’s Going Green Conference a couple of weeks ago with one fascinating company on my brain: Genomatica. I’ve been waiting sometimes patiently – and largely not so – for a company like Genomatica to show up on my radar, because I’ve wanted a bigger picture of how we’re really going to get off oil. That’s the truth. There are too many products within the retail chain that require oil as a feedstock in the manufacturing of them, for me to have had all my questions answered from the partial solution sets that have been put on the table, including wind and solar.
Then Genomatica popped on my radar. And I was really intrigued.
Genomatica’s figured out how to make a commodity chemical – 1,4-butanediol (BDO) – from a renewable (instead of petrochemical) feedstock. BDO, for those of you wondering, is one of the world’s most important commodity chemicals, with approximately 3 billion pounds produced annually from oil and gas, and it is a key precursor to specialty solvents, plastics, pharmaceuticals, fine chemicals, certain automotive components, electrical and elecronics components, and apparel fibers. So if you’re wearing it, sitting on it, drinking from it – there’s a good chance a petrochemical feedstock was used in the making of that “it”. So let me say this one more time, just so the enormity of the implication sinks in: the same commodity chemical that was used to produce your “it” can now be made withOUT a petroleum-based (i.e. Gas or oil) feedstock, AND it can be made at a lower cost than what manufacturers are paying for their current petroleum-based feedstock. [Currently, projected costs show that even with factoring in the cost of collecting the feedstock (cellulose to sugar), the process should be 30% cheaper than processes that use oil and natural gas.]
Not surprising to hear, Genomatica plans to offer a broad range of biologically produced industrial chemicals from a variety of renewable feedstocks, ultimately, though they’ve begun their process using sucrose and genetically engineered E. coli. (Yes, sugar and E. coli. No, not the kind of sugar on your kitchen counter. Industrial fermentation processes like Genomatica’s do not use the refined sugar that you have in your kitchen. Industrial fermentation uses what is commonly called “raw sugar.” And with Genomatica’s technology it is conceivable to use direct sugar cane syrup before it is even processed into “raw sugar.” It’s cheaper and less energy intensive; to create BDO a significant amount of energy as heat is required when using oil or gas.)
Genomatica’s new method using engineered bacteria is much less energy intensive because the BDO is made in fermentation tanks at normal temperatures below 105 degrees Fahrenheit or 40 degrees Celsius. The bacteria has been altered so that it can thrive in water with high concentrations of BDO, and this is interesting to know because the E. coli that Genomatica has genetically altered in this process secretes BDO – growing faster the more it produces more BDO. Even more interesting is that e. coli can only grow if it secretes BDO. The sugar water concentration, if you guessed, does indeed act to stimulate growth. The BDO is then purified, separated from the water.
I would expect this new method of creating BDO to become more and more conveniently available to the market; it theoretically should also dictate greater security of supply since customers shouldn’t face the same degree of sourcing challenges with sugar as a feedstock that they do with petroleum as a feedstock because the amount of sugar needed for the global chemicals market is very small relative to the global sugar market. For example, four world-scale BDO plants would represent about 1 percent of world sugar supply. Sugar is produced all over the world and can be grown in a wide range of places, so producers have the capacity to respond and increase production to match demand more easily than is the case with petroleum-based feedstock suppliers.
Granted, nothing’s a sure thing, and Genomatica is aware of the potential for market dynamics to shift such that sugar prices could rise significantly; I’ve been told that the company can re-engineer the micro-organism to use other more favorable feedstocks. That’s good.
I personally don’t think it’s going to take too long to convince BDO producers to use the process to create plastic. It’s a no-brainer for BDO producers, it seems to me, so prospective clients should be clamboring. The company just needs to execute flawlessly. And to that point, my sense is that Genomatica’s got a world-class CEO on board; and there’s something else special, too, obviously, as I’ve heard through the grapevine that people are begging to come work for the company, even if there’s no position open to fill. And the company has strong venture backing from vcs such as Mohr Davidow, Draper Fisher Jurvetson, and Alloy Ventures. This technology’s so disruptive from my humble perspective that even if there are a couple of other players in the market, Genomatica’s on its way. I expect this company to be a home-run for its investors, BDO producers and consumers, ultimately. It is, quite frankly, a company that gives me real hope for the future.
More on Genomatica here and here.
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More here.
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My friend Scott posted this the other day, originally for WorldChanging.com. I’m reposting, as I thought you might like to read…it’s also my way quiet of introducing the project Scott and I are working on together…
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To contact Lara, please email her at lara@laraabrams.com or call 415 613 1704.