Building the Ecosystems That Drive Commercialization of New Energy Technologies

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Building the Ecosystems That Drive
Commercialization of New Energy Technologies

• Jim Hurd
• Director
• NanoScience Exchange

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• Nanotechnology is about the ways in which the
  elemental forces in life move to form matter.
• India is one of the leading civilizations
  - over the last three millennium - to understand
  and direct the elemental forces of nature.
• It is time for India to find fundamental
  ways to lead in shaping the emerging nanotech
  infrastructure of the planet.

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Sources of Energy in U.S. 2003

• Coal 32
• Natural Gas 30
• Oil 18 - needed for transportation
• Nuclear 12
• Hydropower 5
• Renewables 1

• Source 2003 U.S. Department of Energy Report

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Sources of Energy in India 2003

• Coal 70
• Oil 25
• Renewables 3
• Nuclear 2
• Trend - the increasing need to import oil as
  consumption outgrows production in India

Source Report from Counselor for ST, Indian
Embassy in U.S.
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Building the Ecosystem of Collaboration full
participation of all groups is vital

• Corporations rd and funding
• Government and Military Research Labs rd and
  funding
• State Federal Government funding and tax
  incentives
• Start-ups hot-house environment
• Universities basic applied research
• Investors vcs, angels investment bankers

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Ways Indian Institutions Can Strengthen The
Knowledge Creation Ecosystem

• From Dr. Mashelkar, Director General of CSIR
• 3/20/06 interview in Red Herring Magazine

• Innovative public-private partnerships
• Visionary leadership
• De-bureaucratization
• True Autonomy
• Performance-based budgets
• Incentives at both individual and institutional
  levels

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Commercialization Realities Revenues of
leading Nanotech Start-ups

• As a generalization, major revenues for leading
  U.S. nanotech materials and device companies
  (revenues above a million dollars a year, and not
  including government research awards) - have been
  slow to develop.
• Examples of non-energy nanotech start-up
  companies with revenues include
• NeoPhotonics - 50 million in 05 for optical
  components with the majority of those revenues
  coming from a Chinese optical company that was
  acquired in June of 05
• Nanofilm between 10 and 20 million a year
  for the anti-scratch coatings on Carl Zeiss
  eyeglasses
• Zyvex - 8 million in 06 revenues, for its tools
  including nano-grippers and its nanotubes in
  hockey sticks, baseball bats and bicycle
  handlebars.

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Section 2 Energy Start-ups

• Solar Cells
• Catalysis
• Batteries
• Cleaner Coal
• Ethanol

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NanoMaterials in Flexible Solar Cells

• Konarka develops light-activated power plastic
  that is flexible, lightweight, lower in cost and
  much more versatile than traditional
  silicon-based solar cells. These new materials
  are made from conducting polymers and
  nano-engineered materials that can be coated or
  printed onto a surface in a process similar to
  how photographic film is made. The company
  acquired Siemens solar division in September, 04
  and has raised approximately 54 million in
  venture capital to date. Board of Directors
  includes DFJs Raj Atluru and two renowned Nobel
  Laureates, Alan Heeger and Arno Penzias.  Latest
  round, of 20 million, was led by 3i, the leading
  investment firm in Europe.
• NanoSolar has developed technology that makes it
  possible to roll-print thin-film solar cells that
  can be as efficient and durable as conventional
  silicon cells. The company has quietly amassed a
  world-class braintrust of solar experts. The
  solar market is already 5 to 7 billion in size,
  and its growing very rapidly. said Erik
  Straser, of the respected vc firm Mohr, Davidow
  Ventures, who led the recent round of 20
  million.

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Private-Public Collaboration on Non-flexible
Solar Cells

• U.S. Defense Advanced Research Projects Agency
  (DARPA) funded in Nov. 05 a major effort led by
  the U of Delaware to more than double the
  efficiency of terrestrial solar cells within the
  next four years.
• This collaboration will receive, upon achievement
  of milestones, up to 33.6 million from DARPA and
  another 19.3 million from U of Delaware and
  corporate team members. Partners include the
  NREL, MIT, Harvard, the U of New South Wales,
  Yale, Carnegie Mellon, the U of Rochester,
  Georgia Tech, Purdue U and UC Santa Barbara.
  Corporate members may include DuPont, BP Solar,
  Corning Inc., LightSpin Technologies and Blue
  Square Energy.
• The DARPA program calls upon the consortium to
  develop and produce prototypes that are
  affordable and that operate at efficiencies of at
  least 50 percent. Currently, high-end solar cells
  operate at a peak efficiency of 24.7 percent, and
  solar cells off the production line operate at
  15-20 percent efficiency.

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IPOs in Solar (non nano-scale
technologies)

• SunPower, spun out of Cypress Semiconductor, went
  public on Nasdaq in November, 05 and has a
  market cap of 2.3 billion. The company says its
  solar cells are approximately 20.5 percent
  efficient, meaning it converts about a fifth of
  the suns captured energy to power. That compares
  with an industry average of about 15 percent
  currently.
• Suntech Power Holdings, based in Wuxi, China
  became the number one IPO in the U.S. in 2005
  when it went public on the NYSE in December,
  raising 396 million. The company has a current
  market cap of 5 billion. In less than four years
  it has become one of the world's top 10
  photovoltaic cell manufacturers.

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NanoMaterials in Catalysis

• Catalysis is a very large market around the
  world. Nanotech-enhanced materials can have a
  fairly quick impact on this market in the next
  1-4 years.
• Nanostellar uses quantum mechanics principles and
  sophisticated simulation technology to design
  nano-alloys and materials. These are in beta
  testing today by major corporate customers. A
  primary application of this technology is in
  catalysis, where it can reduce the need for
  platinum in cars by up to 50. World market for
  platinum in cars currently is a 5 billion
  market. Some of the most successful investors in
  Silicon Valley have invested in this company.

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NanoMaterials in Batteries

• Altair, in its alternative energy division, has
  developed advanced materials including high
  performance batteries (a 42 billion industry),
  fuel cells and photovoltaics. Studies show the
  nano-sized lithium titanate spinel battery
  material exhibited charge rates and lifecycles 10
  to 100 times higher than materials used today.The
  company is looking to develop projects in India,
  China and Korea.
• Solicore produces ultra-thin, flexible, safe,
  high energy density lithium polymer batteries for
  smart cards, RFID devices and thin-film medical
  devices. The company is developing batteries
  that will be nearly as thin as food-wrap that may
  be able to cut with scissors and still use. The
  company has raised 40 million, with investors
  including DFJ, Rho Partners, Firelake Capital and
  Air Products and Chemical Inc, a leading
  corporate investor.

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Nanomaterials in Cleaner Coal

• HTI (Hydrocarbon Technologies, Inc) a division
  of publicly traded Headwaters, announced in
  October 04 of its contract with Oil India
  Limited to study the technical and economic
  feasibility of applying HTIs Direct Coal
  Liquefaction (DCL) Technology in India. HTIs DCL
  Technology was first licensed to the Shenhua
  Group of China in 02, for use in a 2 billion
  coal-to-liquids facility currently under
  construction in Majata, Inner Mongolia. HTI is
  led by CEO Theo Lee.
• CoalTek and GreatPoint Energy funded in part by
  DFJ

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Ethanol Fuels

• While not a nano-scale technology, ethanol is an
  important emerging solution. Major partnerships
  have developed on ethanol fuels between the
  Brazilian state of Bahia, the U.S. state of
  California and leading provinces in China.
• Also, 31 new fuel ethanol plants are currently
  under construction in North Americaa capital
  investment of over 1.6 billion. The ethanol
  industry now has the capacity to produce over
  four billion gallons each year.
• A third of the fuel Brazilians use in
  their vehicles is now domestically produced due
  to their investment in sugar-based ethanol
  industry. Half the new cars sold in Brazil are
  flexible fuel vehicles running on a combination
  of gasoline and ethanol.
• Source Venture Power Newsletter by
  Eric Wesoff, Dec. 05

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CTx GreEn local power in rural, off-grid areas

• - One of 5 technologies from around the world
  nominated for the Intel Environment Award at the
  2005 Tech Museum Awards, 11/7/05, in San Jose,
  CA.
• - Partnering with Gram Vikas in India in its
  Rural Health Environment Program
• - Received original funding from the World Bank
  Development Marketplace
• of 230,00 in 2003
• CTx GreEn has created a renewable energy system
  in rural tribal villages in the state of Orissa,
  where 90 of the villages are not connected to
  the electricity grid despite the fact that the
  state of Orissa has a net power supply surplus.
  Remote villages are not expected to be connected
  to the power grid in the next 10 to 20 years.  
  Basic water supply and sanitation infrastructure
  are severely lacking.  This project promotes the
  production of biodiesel fuel from vegetable
  oil.   Pedal-powered oil seed grinders and
  biodiesel reactors are distinctive aspects of the
  project, coupled with hand-powered oil presses.  
  
• There are several similar biodiesel applications
  under way in other parts of the world, but the
  Orissa project is unique in that it is at the
  smallest known scale of  production (5-20 liters)
  and is based on a pedal-driven bicycle drive. 
  These biodiesel-fueled pumps will expand daily
  water pumping capability substantially beyond the
  present rates at which villagers, mostly women,
  walk long distances to hand-pump household water
  each day.  Similarly, the application of
  small-scale, biodiesel-fueled generation sets
  will allow some electricity production for
  lighting and other uses.     These features,
  coupled with reliance on indigenous plant
  species, allow for continuing local production
  and use of biodiesel fuel in a sustainable,
  community-based program.  

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Working with Governmental Energy Policy

• The Set America Free Initiative in the U.S. is
  an excellent example of an think-tank initiative
  that is working toward practical and real change
  on energy policy. (www.setamericafree.org)
• One of their key efforts is on the use of
  methanol ethanol in cars. If new U.S. cars
  have an added 150 fuel-flex part installed, they
  can use up to 75 methanol or ethanol instead of
  gasoline. This can dramatically reduce the need
  to import foreign oil to the U.S.
• The U. S. has just 3 of the world's oil reserves
  yet accounts for 25 of world oil consumption.
  65 of the global oil supply rests in the Middle
  East. "It's time to focus on the real challenge
  reducing the oil we need to run a strong, healthy
  economy," said Ashok Gupta of the Natural
  Resources Defense Council."
• Co-ordinating closely with NATO in Europe.
• Looking to increase collaboration this year with
  Asian countries.
• Tom Friedman, author of the World Is Flat,
  talked about the work of Set America Free, in
  a NY Times column saying, "The technologies we
  need for a stronger, more energy independent
  America are already here. The only thing we have
  a shortage of now are leaders with the
  imagination and will to move the country onto a
  geo-green path."

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• Build the ecosystem,
• the active interaction and heartfelt
  collaboration of the essential partners of
  Indias nanotechnology program
• start-ups, government agencies,
• corporations, investors universities.
• The challenge is simple.
• The work will not be easy.
• Jim_at_NanoScienceExchange.org