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CLEANTECH MAPPING THE OPPORTUNITIES Cleantech USA Len La Vardera Finpro Stamford Tekes December 2, 2009 Cleantech Funding Overview Venture capital cleantech ... – PowerPoint PPT presentation

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  • Cleantech USA

Len La Vardera Finpro Stamford Tekes December
2, 2009
Topics Covered
  • What is the US Doing in Cleantech
  • The Opportunities
  • Energy Generation
  • Solar
  • Wind
  • Biofuels
  • Energy Efficiency
  • Transportation
  • Water Wastewater
  • Manufacturing Industrial
  • Cleantech Cities States

Executive Summary
  • US Government is playing an influential role in
    the growth of US cleantech market.
  • The American Recovery and Reinvestment Act of
    2009 provides 83 billion to
  • clean technology investments and 6 B to loan
    guarantees to shovel-ready projects.
  • The US Dept of Energy released more than 47
    million from the stimulus plan to
  • accelerate the completion of eight smart grid
    demonstration projects in seven states.
  • Michigan is providing GE with 74 M in tax
    incentves to build a 100 M advanced-
  • manufacturing center to develop renewable
    energy technologies near Detroit.
  • Cleantech investment during Q2 of 2009 saw more
    than 1.2 billion invested in 85
  • deals a 50 increase from 836 million in 59
    deals in Q1 of 2009
  • Technologies to promote energy efficiency got
    152 million.
  • The US still has a long way to go before it
    completely recuperates from the
  • recession that has lasted over18 months and
    has led to severe downturns in GDP.

Goals of The Cleantech USA Program
  • Funded by Tekes and carried out by Finpro USA,
    this investigation seeks to
  • Define the cleantech business in the US
  • Identify the drivers generating the impetus
    behind the
  • cleantech sector
  • Map the opportunities being created in both the
    public and
  • private sectors
  • Identify the key sources of funding
  • Develop recommendations for Finnish companies
    to gain
  • access to the US cleantech market

Cleantech is Wide Reaching
What is the USA doing in Cleantech
  • Cleantech is playing a central role in the US
  • national recovery agenda
  • On February 17, 2009, President Obama signed the
    American Recovery and Reinvestment Bill, placing
    cleantech as a key driver of economic
    stabilization and job growth. The 787 billion
    bill includes about 83 billion for cleantech
    spending and tax plans.
  • Cleantech industries are poised to benefit as an
    infrastructure play and job-growth driver in
    President Barack Obamas push for a new energy
    economy, boosting opportunities for cleantech
    investors, producers and adopters

American Recovery and Reinvestment Act
  • Key cleantech areas in the American Recovery and
    Reinvestment Act
  • 11 B towards smart grid
  • 6 B to subsidize loans for renewable energy
  • 6.3 B in state energy efficiency and
    clean-energy grants
  • 5 B to weatherize modest-income homes
  • 4.5 B to make federal buildings more energy
  • 2 B in grants for advanced batteries for
    electric vehicles
  • 8.4 B for mass transit
  • 9.3 B for construction of high-speed railways
  • 20 B in tax incentives credits for renewable
    energy, PHEVs energy efficiency
  • A number of recently passed policies to support
    the growth of clean-energy sectors include
  • an 8-year extension for the investment tax
    credit (ITC) for solar
  • a 3-year extension for the production tax credit
    for wind
  • new rules that allow utilities, for the first
    time, to participate in ITCs
  • a new provision that allows renewable energy
    developers to receive up to a 30
  • government grant instead of a tax credit

This policy-stimulus combination represents the
largest federal commitment in U.S. history for
renewables, advanced transportation, and
conservation initiatives.
Why is Cleantech Important in US?
  • Job growth, greenhouse gas reduction, and
    energy and fuel efficiency
  • Stimulus package aims to create up to 3.5 million
    jobs and signifies a long-term, comprehensive
    commitment to a national clean energy
  • The new energy economy will likely spur continued
    private investment in cleantech, and companies
    will likely find strategic opportunities as
    either adopters or investors or both.
  • Emerging convergences and alliances - such as
    automakers/utilities and agriculture/oil
    companies - will become increasingly crucial to
    building a new energy infrastructure.

Cleantech Funding Bounces Back
What sectors received the 1.2 B invested in
85 cleantech deals in Q2 09 ?
Source Venture Beat June 2009
The Cleantech Drivers
  • The Drivers for clean energy development are here
    to stay .
  • Volatile energy prices, climate change, national
    security, cleantech
  • innovation, population growth, consumer
    demand, job growth needs
  • Recession and capital markets turmoil have
    created headwinds but
  • will also result in strong green jobs
    stimulus programs
  • Opportunities abound in technology development
  • commercialization and building business and
    consumer markets
  • IT and biotech expertise can be utilized in
    clean energy smart grid,
  • green buildings, sustainable biofuels, demand
  • President Obama has outlined plans to spend 150
    billion over the
  • next decade to spur private companies to
    invest in clean technologies.
  • Clean energy can be a big industry and
    employer.but not yet

US Dept. of Energy
DOE Energy Efficiency and Renewable Energy Program
The 16.8 billion of the ARRA designated for the
DOE Office of EERE is divided across several EERE
programs. The final appropriations include
  • 5 billion for the Weatherization Assistance
  • 3.1 billion for the State Energy Program
  • 3.2 billion for Energy Efficiency and
    Conservation Block Grants
  • 2.5 billion for Applied Research, Development,
    Demonstration, and Deployment, including
  • 800 million for the Biomass Program
  • 400 million for the Geothermal Technologies
  • 350 million for the demonstration and research
    and development of geothermal energy
  • 50 million for geothermal heat pumps
  • 256 million for the Industrial Technologies
  • 117 million for the Solar Technologies Program
  • 100 million for facility and infrastructure
    improvements at the National Renewable Energy
  • 93 million to support wind energy projects
  • 50 million for Information and Communications
  • 41.9 million to spur the growth of Fuel Cell
  • 25 million for the Massachusetts Wind
    Technology Testing Center
  • 2 billion for Advanced Battery Manufacturing
  • 400 million for Transportation Electrification
  • 300 million for an Energy Efficient Appliance
    Rebate Program and ENERGY STAR
  • 300 million for an Alternative-Fueled-Vehicles
    Pilot Grant Program

Current US Energy Situation
U.S. Electricity Generation by Source, 2007
Source Energy Information Administration, 2009
The Opportunities
The Cleantech Opportunities Map
Source Cleantech Group LLC
Energy Generation
Energy Generation - Solar
In May 2009, President Obama committed
over 467 million to accelerate development
and deployment of geothermal and solar
energy resources across the U.S. The funding
represents new investment in technology,
far surpassing previous government
commitments to help accelerate widespread
deployment of solar technologies throughout
the U.S. Solar EnergySolar energy is a
rapidly expanding industry with a double-digit
annual growth rate in the U.S. DOE will provide
117.6 million in Recovery Act funding to
accelerate widespread commercialization of clean
solar energy technologies. These activities will
leverage partnerships that include DOEs national
laboratories, universities, local government, and
the private sector, to strengthen the U.S. solar
industry Photovoltaic Technology Development
(51.5 Million) DOE will expand investment in
advanced photovoltaic concepts and high impact
technologies, with the aim of making solar energy
cost-competitive with conventional sources of
electricity and to strengthen the competitiveness
and capabilities of domestic manufacturers.
Solar Energy Deployment (40.5 Million)
Projects in this area will focus on
non-technical barriers to solar energy
deployment, including grid connection, market
barriers to solar energy adoption in cities, and
the shortage of trained solar energy installers. 
Combined with new technology development, these
deployment activities will help clear the path
for wider adoption of solar energy in
residential, commercial, and municipal
environments. Concentrating Solar Power
Research and Development (25.6 Million) This
work will focus on improving the reliability of
concentrating solar power technologies and
enhancing the capabilities of DOE National
Laboratories to provide test and evaluation
support to the solar industry.
DOE Solar Program
  • Solar America Cities
  • The Solar America Cities awards are part of the
    Market Transformation activities of the U.S.
    Department of Energy (DOE) Solar Program. The
    research and development (RD) activities within
    the Solar Program focus on two primary solar
    technologies for electricity generation PV and
    concentrating solar power (CSP). These activities
    provide significant opportunities for
    collaboration among industry, university, and
    national-laboratory researchers to develop and
    improve solar energy technologies. RD activities
  • Novel PV and CSP devices and processes with
    potentially significant
  • performance or cost advantages
  • Prototype components and systems produced at
    pilot-scale that
  • demonstrate cost, reliability, or performance
  • Private/public partnerships to develop systems
    that are ready for
  • mass production and can provide
    cost-competitive solar electricity.

Leading Solar Companies in US
Energy Generation Solar (contd)
Investment in Solar by Technology in 2008
Within the solar sector, thin-film companies
raised nearly 1.6B (48 of solar total),
followed by concentrated solar thermal (CST)
companies at 645M (19), solar service providers
(systems) at 510M (15), crystalline PV vendors
(including polysilicon) at 487M (15), and
concentrated photovoltaic (CPV) startups at 92M
Source Cleantech Group LLC
Energy Generation - Wind
  • U.S. Wind Power Industry Overview - 2009 First
    Quarter Growth
  • The U.S. wind power industry installed more
    than 2,800 MW of new generating capacity in Q1 09
  • New wind power projects were completed in 15
    states, including the 400.3-MW first phase of the
    Fowler Ridge,
  • Wind Farm in Indiana (above left), making
    Indiana the state with the fastest growth in wind
    power capacity.
  • However, wind only received 19.4 M for six
    deals in VC funding in Q3 09.
  • As of July 2009, the total wind power generating
    capacity in operation in the U.S. was 31,109 MW
  • Looking ahead presents a less favorable view
    however, as the total installed capacity for 2009
    is estimated only to
  • reach 6,200 MW, a 26 drop from the record
    pace achieved in 2008..
  • Despite the uncertain outlook, a number of
    companies including Vestas, NextEra Energy
    Resources, Iberdrola and
  • Siemens are pressing ahead with efforts to
    build wind turbine manufacturing plants in the
    U.S. Vestas is also establishing a
  • research center in Houston, Texas.

Source U.S. Department of Energy - Energy
Efficiency and Renewable Energy Wind and
Hydropower Technologies Program
Energy Generation Wind (contd)
Top 20 States -Total Wind Power Capacities
(MW) 08/09
Source AWEA
Energy Generation Wind
Investment in Wind Technology by Year
In 2008, wind accounted for 6 of cleantech VC.
On a quarterly basis, wind share of total
cleantech VC has been historically lumpy. In
2008, the bulk of wind investments were made in
3Q08, totaling almost 400 million, while 4Q08
saw three investments, of which only one was
disclosed, for 2.5 M.
Source Cleantech Group LLC
Wind in Minnesota
  • More than 1400 wind turbines generate 1800 MW of
  • electricity providing 7.5 of the state's
  • Ranks fourth in US for installed wind power
  • 25 of the state's power must be provided by
  • renewables by 2025
  • To meet goal, Minnesota needs to install another
  • 5,000 MW of capacity over the next 15 years
  • Wireless communications already supports wind
  • farms in MN. Farms are part of one of the
  • nation's largest smart grid networks
  • High availability, high-speed, private network
  • built for Great River Energy and its member
  • Supports NIST communications and security

Energy Generation Biofuels
  • The U.S. ethanol fuel industry has boomed over
    the last few years. In 2007, production increased
    again to 6.5 billion gallons. The challenge is to
    ensure that all biofuels, whether traditional or
    "next-generation," are produced in ways that
    conserve natural resources To do that, it has
    been mandated that
  • By 2010, US fuel consumption must include 100
    million gallons of
  • "advanced biofuels that don't depend on corn,
    sugarcane, or other
  • food crops as feedstock.
  • By 2022, that mandate rises to 21 billion
    gallons per year.

Typically, that means using heat, acid, or
enzymes to break up the cellulose in plant matter
then fermenting the mixture into "cellulosic
ethanol. Scores of biotech startups have jumped
into the game, sometimes partnering with big oil
companies that also have their eyes on the
government mandates. Wood is a particularly
promising source of biomass if it is derived from
sustainably managed operations or reclaimed waste
products. In late 2008, the US Departments of
Energy (DOE) and Agriculture (USDA) released its
National Biofuels Action Plan detailing Federal
agency and private partnership efforts to
accelerate the development of a sustainable
biofuels industry. For more information , click
the link or use http//
Investments in Biofuels
Within the biofuels sector, cellulosic ethanol
companies raised almost 400M (44 of
the biofuels total), followed by algae biodiesel
companies which raised 195M (22), biomass
raised 150M (17), biodiesel vendors raised
125M (14), grain ethanol startups raised 21M
(2), while biogas raised 18M (2)
Source Cleantech Group
Algae as a Biofuel
  • Benefits of Algae Biofuels
  • Algae, or microalgae, has a much higher
    productivity potential than crop-based biofuels,
  • producing 24 times more oil per acre, on
    average, than the next leading feedstock--palm
    oil at
  • 635 gallons/acre/year.
  • Has inputs of only land, sunlight, water, carbon
    dioxide (potential for carbon credits) and
  • nutrients.
  • Very water efficient. Producing enough to make
    60 bgy of biodiesel could require as little as 16
  • trillion gallons of water. We use 4,000
    trillion gallons of water per year to grow corn
    in the US
  • Can grow in brackish, saline and wastewater,
    further reducing the amount of freshwater
  • needed to grow it
  • Can grow in temperatures ranging from below
    freezing to 158 degrees Fahrenheit
  • Not in direct competition with food crops

ExxonMobil and Synthetic Genomics the biotech
company headed by J Craig Venter recently
announced a 600 M deal to produce biofuel from
algae. ExxonMobil will invest 300 M into a new
lab and production facilities for Synthetic in
San Diego, CA including open ponds and
bioreactors, as well as investing 300 M in its
own research.
Biofuels The Reality
  • More than 200 companies from 12- person startups
    to oil giants are developing next-generation
  • using an array of technologies. But even as
    industry develops, most of these will probably
    not survive.
  • Industry executives feel we will fall short of
    the 2010 and 2022 mandates for creating biofuels
  • cellulosic materials. Hundreds of fuel
    facilities would need to be built at a cost of
    500 M or more each.
  • Everything will happen more slowly than many
    VCs say.
  • The business model that is likely to work best
    is demonstrating the technology and getting it
  • the hands of companies with major resources.
  • The economics will change rising biofuel
    production will drive up demand and prices for
    the new
  • material, just as the production of corn
    ethanol help raise the price of corn.
  • Laws of supply and demand replacing a
    significant amount of gasoline with biofuels
    would lower the
  • demand for gas, thus causing the price of gas
    to plunge making biofuels less competitive.
  • A major inhibitor is the lack of a price on
    carbon emissions - the industry is still a
    government creation.

Key US Biofuel Players
Algenol Biofuels Bonita Springs,
Florida Archer Daniels
Midland Decatur, Illinois Blue
Fire Ethanol Fuels Irvine, California www.bluefi BP Biofuels Warrenville, Illinois Codexis Redwood City,
California Coskata
Warrenville, Illinois Dupont
Danisco Cellulosic Itasca, Illinois Ethanol HR BioPetroleum La
Jolla, California OPX
Biotechnologies Boulder, Colorado www.opxbiotech Mascoma Lebanon, New Hampshire PetroAlgae Melbourne,Florida Poet Souix Falls, South
Dakota Range Fuels Broomfield,
Colorado Verenium
Cambridge, Massachusetts Vi
rent Energy Systems Madison, Wisconsin ZeaChem Lakewood, Colorado
Energy Efficiency
Energy Efficiency Overview
According to a July 2009 study by McKinsey Co.,
the US can slash its energy consumption by about
23 by 2020 if it maximizes its efficiency
potential for non-transportation uses. The full
report can be seen at http//
iency/ Energy efficiency covers a broad range of
areas stretching from residential home design and
building to commercial and industrial processes
to transportation to IT efficiency and much more.
Some specific areas include -Lighting -Energy
management systems -Systems that improve output
of power generating plants -Intelligent
metering -Solid state micro-refrigeration
-Control technology for HVAC systems
-Automated energy conservation
networks -Insulation Weatherization
techniques -Water efficiency techniques -Windows
doors -Green IT initiatives
Solid State Lighting
  • Where are the lighting opportunities?
  • Compact Fluorescent Lamps (CFLs) new sizes
    and styles, and longer life span
  • Improved Halogen Systems - high performance
    "Infrared" (IR) halogen lamps
  • Energy-Efficient Fluorescent Lighting Systems
    -T8 (1" in diameter) and T5 (5/8" in diameter)
  • lamps, offer improved efficiency, higher
    intensity, and potentially longer life
  • Energy-Efficient Electronic Ballasts- use up to
    30 less energy than magnetic ballasts.
  • Energy-efficient lighting fixtures fixtures
    that work to enhance lighting efficiency
  • Lighting Controls including bi-level
    switching, dimmers, occupancy sensors daylight
  • LED and OLED lighting developing general
    lighting uses
  • Induction or Electrodeless Fluorescent Lamps -
    improved efficiency over conventional fluorescent
  • designs and extremely long life (upwards of
    50,000 hours)

Energy Efficiency in Building
The DOE, through the Office of Energy Efficiency
and Renewable Energys (EERE) Building
Technologies Program works closely with the
building industry and manufacturers to conduct
research and development on technologies and
practices for energy efficiency. Building
America Program Building America forms research
partnerships with all facets of the residential
building industry to improve the quality and
energy efficiency of homes. The goal is to
develop cost effective solutions that reduce the
average energy use of housing by 40 to 100.
Ultimately, Building America research will lead
to net zero energy homes, which produce as much
energy as they use. The following links offer
resources related to energy-efficient homes.
Energy-Efficient Home Construction Information
Educational and Research Organizations
Government Resources Building Technologies
Program In partnership with the private sector,
state and local governments, national
laboratories, and universities, the DOE Building
Technologies Program works to improve the
efficiency of buildings and the equipment,
components, and systems within them. The program
supports research and development (RD)
activities and provides tools, guidelines,
training, and access to technical and financial
resources. For more information about the EERE
Building Technologies Program see http//
Green Building Energy Saving Applications
Site Planning -Sediment Control -Green Site
Building Mgmt -Reduced Site Disturbance -Stormwate
r Mgmt -Light Pollution Reduction
What is green building? Design and construction
practices that meet specified standards,
resolving much of the negative impact of
buildings on their occupants and on the
-Outside Air Exhaust -Asbestos/PCB
Removal -Increased Ventilation -IAQ Mgmt
Plan -Indoor Chemical Pollutant Source
Control -Controllability of Systems -Thermal
Comfort -Daylighting Views -Green Cleaning
WaterManagement -Minimum Water Efficiency
-Discharge Water Compliance -Water Efficiient
Landscaping -Innovative Wastewater Tech
-Water use Reduction
Indoor Environmental Quality
Energy -Minimum Energy Performance -Ozone
protection -Optimize Energy Performance -On/of
Site Renewable Energy -Building OM -Performance
Measurement -Documenting Cost Impacts
Material Use -Source Reduction Waste
Mgmt -Toxic material Reduction -Construction
Waste Mgmt -Use of Advanced Matreials -Use of
Alternative Materials -Sustainable Cleaning
Products -Occupant Recycling -Use of IAQ
Compliant Products -Use Recycled Content
Source US Green Building Council, 2007
Efficient Building Opportunities
  • Energy Modeling Software
  • Engineered building materials i.e. engineered
    wood for roof and floor trusses
  • Appliances - development of highly
    energy-efficient refrigerators, washers and
    dryers, water heaters and other appliances
  • Building Envelope - development of the building
    envelope in the areas of walls, roofs,
    foundations and windows and doors.
  • Indoor Air Quality - activities focusing on
    developing new ventilation strategies that
    simultaneously improve indoor air
  • quality and reduce the energy impact of
    increased ventilation.
  • Lighting - improvements in the efficiency,
    performance, lifetime, and quality of light from
    both organic and inorganic light
  • emitting diodes.
  • Water Heating - significantly lower cost Heat
    pump water heaters (HPWH)
  • Whole Building Design - systems engineering
    approaches that optimize efficiency for specific
    climate zones and
  • applications, while integrating efficiency with
    renewable energy technologies. Under WBD, the
    DOE is looking at

Vehicle Technology Program
  • The DOE Vehicle Technologies Program is
    developing more energy efficient and
    environmentally friendly transportation
    technologies that will enable America to use less
    petroleum. The aim is to develop "leap frog"
    technologies that will provide Americans with
    greater freedom of mobility and energy security,
    while lowering costs and reducing environmental
  • Recovery Act Funding Opportunities
  • In August, President Obama announced that the
    DOE is offering up to 2.4 billion in American
    Recovery and Reinvestment Act funds to support
    next-generation plug-in hybrid electric vehicles
    (PHEV) and their advanced battery components. The
    new awards cover
  • 1.5 billion in grants to US-based manufacturers
    to produce batteries and their components and to
    expand battery recycling capacity
  • 500 million in grants to US-based manufacturers
    to produce electric drive components for
    vehicles, including electric motors, power
    electronics, and other drive train components
  • 400 million in grants to purchase thousands of
    plug-in hybrid and all-electric vehicles for test
    demonstrations in several dozen locations to
    deploy them and evaluate their performance to
    install electric charging infrastructure and to
    provide education and workforce training to
    support the transition to advanced electric
    transportation systems.
  • More information about DOEs Vehicle technology
    Program and contacts can be found at
  • http//
  • Information about DOEs Plug-In Hybrid Electric
    Vehicle RD Plan is available at
  • http//

Clean Transportation Opportunities
  • Clean and Efficient Technologies are in Demand
  • A multitude of technologies are being sought to
    create cleaner, more efficient vehicles,
  • Aerodynamic designs and systems
  • Reduced rolling resistance
  • Lightweight materials
  • Improved powertrain efficiencies
  • Advanced transmissions     o Automated
  • variable dual clutch
  • Electric drive     o Battery-direct     o
    Hybrids     o Plug-in hybrids     o Fuel cells
  • Hybrids     o Hybrid Electric     o Hybrid
    hydraulic     o Plug-in hybrids
  • Higher combustion efficiency and fuel-optimized
    engines     o Digital valves    o Variable
    valve timing     o Variable compression    o
    Super and turbo-charging    o Homogeneous charge
    compression ignition (HCCI)     o Fuel-optimized
    combustion High efficiency auxiliary
    systems     o Electrically or hydraulically
    driven water pumps, fans,
  • brake systems     o High efficiency,
    electrically driven air conditioning systs
  • Energy recovery     o Turbo-compounding     o
    Bottoming cycle     o Thermo-electric power
    generation Idle reduction technologies     o
    Auxiliary power units     o Batteries     o
    Thermal storage

US Vehicle Battery Market
Panasonic dominates the American vehicle battery
market In December 2008, Panasonic (the top
battery manufacturer for automotive hybrid use)
acquired Sanyo, the second-ranked manufacturer.
The Cobasys batteries in the Saturn Vue are the
only batteries assembled in the United States
that have been used in mass-produced vehicles.
Even though the Ford Escape Hybrid and Saturn Vue
Hybrid are assembled at U.S. facilities, many of
their partsincluding batteries for the Escape
and motors for bothcome from Asia
Sanyo 6
Cobasys 2
Panasonic 92
Opportunities in Battery Technology
  • US demand for primary and secondary batteries
    will increase 2.5 percent annually to 16.8
    billion in 2012.
  • Growth will be supported by healthy demand for
    replacement batteries in a number of
    battery-driven electronic
  • products and a shift in the product mix toward
    higher-priced, better-performing batteries.
    Energy storage
  • technologies, especially batteries, are critical
    enabling technologies for the development of
    advanced, fuel-
  • efficient, light-and heavy-duty vehicles.
    Technologies being sought include
  • Batteries
  • Lead Acid batteries
  • Nickel-Metal-Hydride batteries for hybrid
  • Lithium-ion batteries
  • Battery Storage
  • Research is needed for advanced energy systems
    capable of providing electric vehicles with
    significantly increased range and performance.
  • Applied Battery Research
  • Battery system development and electrochemical
  • Battery testing and electrolyte development,
  • Spectroscopy and microscopy diagnostics,
    including X-ray diagnostics,
  • Abuse evaluation, accelerated-life test
    procedures and statistical analysis.
  • Long-Term Exploratory Research
  • Advanced cell chemistry,

The Players Opportunities
Lithium-ion Technology Most experts agree that
lithium-ion, which can be used to create
batteries that weigh far less and store more
power than those in todays hybrid cars, will be
the dominant technology. With 2 billion in
federal stimulus money up for grabs, more than
160 companies are jockeying for position to
produce the advanced batteries that will power a
new generation of hybrid and electric vehicles in
America. The Field is Getting Crowded Ener1
- 3.3M from DOEs Vehicle Technologies Program
A123 Systems - 118.5M from GE, Sequoia
Capital, Motorola Ventures others IPO in
Sept. 2009 and raised 380 M Johnson
Controls-Saft (currently the strongest US player)
- 95 M grant from EPA to construct
lithium-ion cell facility LG Chem-Compact
Power (Korean company with US production
facility) Sakti3 - 15 M from GM and seeking
an additional 15M grant from DOE Celgard- 49
M from DOE to expand lithium-ion manufacturing
facility BetterPlace raised significant
amounts from VCs for battery switching stations
In total, seven projects under the DOE Vehicle
Technologies Program were awarded contracts
ranging from 500,000 to 3.3 million and will be
conducted over the next three years.
Investments in Advanced Batteries
Source Cleantech Group
PHEVs and HEVs
Hybrid electric vehicles (HEVs) typically combine
the internal combustion engine of a conventional
vehicle with the battery and electric motor of an
electric vehicle. Below are some of the key
PHEVs and HEVs
Electric Vehicles
Despite the fact that gasoline prices that have
fallen considerably since the record high levels
of mid 2008, interest in electric cars is still
relatively strong, and efforts to come up with
viable technologies are accelerating. This goes
beyond GMs initiative to develop the Chevrolet
Volt in 2010.  Toyota also announced earlier
this year that it would be introducing a plug-in
version of the Prius in demonstrations starting
late this year and into 2010, with possible
commercial sales by 2012. Unlike the Volt, the
Prius plug-in will likely operate in a blended
mode where the gasoline engine is always
available to provide power assist when
needed. The DOE recently announced 8 billion in
its first conditional loan commitments to develop
advanced vehicle technologies, with the first
winners being 5.9 billion for Ford Motor, 1.6
billion to Nissan North America and 465 million
to Tesla Motors. Fisker Automotive the plug-in
hybrid developer became the fourth
automotive manufacturer to receive a loan from
the DOE to further develop advanced vehicle
technologies. The DOE awarded a low-interest loan
for 529 million to Fiskar, which plans to use
169.3 million to finish development of its
87,900 luxury sports sedan Karma. Finlands
Valmet Automotive plans to perform final assembly
of the vehicle, due in showrooms in summer 2010,
but the majority of suppliers are based in the
U.S. Tesla recently announced that they will
develop and manufacture electric vehicle
components in a renovated building in the
Stanford Research Park in Palo Alto. Tesla says
it will lease a 369,000-square-foot facility on a
23-acre parcel and will reportedly supply
all-electric powertrain solutions to Tesla Motors
vehicles and other automakers. Financing will
come in part from loans from the DOE. The DOE
didnt release the list of companies that didnt
receive funding this time around, as they could
still be in the running in the later rounds.
There were more than 100 applicants. As part of
the Advanced Technology Vehicles Manufacturing
program, the DOE plans to provide additional loan
guarantees from the remainder of the 25 billion
during the next several months to large and small
auto manufacturers, parts suppliers, and others
focused on achieving a more fuel efficient
Electric Vehicles in the US
With all of the financial and political problems
facing the domestic automakers in the US, it is
possible that smaller, more agile competitors
could bring a viable product to market even
Electric Vehicles in the US (cont)
Challenges Opportunities for Electric Drive

Water and Wastewater
US Water and Wastewater Facts
  • Over 90 of desalination projects have been
    announced in the last 3 years
  • GE and Siemens have been actively buying water
    companies since 2004
  • Purification is the biggest segment in water
  • Only 2 of the water that gets filtered and
    purified for human consumption actually needs to
    be clean enough to drink
  • 50 of urban water use goes to landscaping
  • 36 states will face water scarcity in the next
    few years
  • Price of water continues to climb. In the past 5
    years water cost have risen 29.7 nationwide
  • In 2008 the cost of water rose 14 in Los Angeles
  • 19 of the energy in California is consumed in
    processing and delivering water
  • ? Reducing water consumption will lead to reduced
    greenhouse gases

US Drinking Water Distribution Systems
  • Spanning almost 1 million miles in the US,
    distribution systems represent the vast majority
    of physical infrastructure for water supplies,
    and thus constitute the primary management
    challenge from both an operational and public
    health standpoint.
  • Public water supplies and their distribution
    systems range in size from those that can serve
    as few as 25 people to those that serve several
  • Of the 34 billion gallons of water produced daily
    by public water systems in the US, approximately
    63 percent is used by residential customers.
  • More than 80 percent of the water supplied to
    residences is used for activities other than
    human consumption such as sanitary service and
    landscape irrigation.
  • In addition to providing drinking water, a major
    function of most distribution systems is to
    provide adequate standby fire-flow.
  • Water infrastructure in the U.S. is aging and in
    need of replacement or repairs, with some water
    systems in urban areas 100 years old or more.

Alternatives for Clean Water
  • Seawater Desalination
  • Most of the interest in desalination is focused
    on developing cost-effective ways of providing
    fresh water for human use in regions where the
    availability of fresh water is limited. The
    largest desalination plant in the US is the one
    at Tampa Bay, Florida, which began desalinizing
    25 million gallons (95000 m³) of water per day in
    December 2007.
  • Stormwater Reuse
  • Stormwater reuse entails storing surface runoff
    from a surface pond or underground catchment
    device and then using it as a source of
    irrigation water. The philosophy behind the
    practice is that the lowest quality water should
    be used for the lowest quality need.
  • Water Recycling
  • Water recycling is reusing treated wastewater
    for beneficial purposes such as agricultural and
    landscape irrigation, industrial processes,
    toilet flushing, and replenishing a ground water
    basin (referred to as ground water recharge).

Water Technology Innovation
  • Purification Technologies and Companies
  • Desalination system that uses thermal
    distillation Altela, Albuquerque, NM
  • Forward osmosis (instead of osmosis/reverse
    osmosis) can
  • desalinate water for about half the cost of
    standard reverse osmosis
  • desalination - Oasys Water Inc, Cambridge, MA
  • Purifying water through gravity and imitating
    nature, using very
  • minimal energy Epuramat, Luxembourg
  • Chlorine Replacement - machines create small
    amounts of O3
  • (ozone molecule) and inject it into water -
    Purefresh , Fremont, CA
  • Disinfecting with iodine-infused rather than
    ozone Ioteq, Irvine, California
  • Chlorine Enhancements- uses electricity to
    convert salt into sodium
  • hypochlorite and mixed with oxidants and
    injected into water to purify it
  • Synthetic Biology - embeds proteins modeled
    after ones created by
  • living cells to regulate fluids in arrays in
  • Force purification - purifies water though
    centripetal force. A spiral
  • creates a vortex that forces impurities into a
    tight stream in the
  • center of the water flow. Impurities are
    sucked out from a vacuum
  • PARC (Palo Alto Research Center, Inc.)

Water Treatment Opportunities
  • Innovations for efficient water use, irrigation
    efficiency systems for landscaping rather than
    agriculture (Only about 30 of the crops in the
    US are artificially irrigated, market isnt that
  • Real-time water testing and monitoring ? There
    are new contaminants to worry about and low-level
    contaminants that were never previously detected
    such as traces from pharmaceuticals that are now
    showing up in drinking water supplies
  • Companies offering solutions to private sector
    have started to attract VCs, instead of
    slow-moving cash-strapped municipal water
  • In the water sector, VC money is largely going to
    companies serving the private sector
  • With the customer base in mind, purification,
    treatment and water management show the strongest
    prospects for opportunity and investment

Wastewater Treatment Opportunities
  • Wastewater treatment technologies have shown
    tremendous growth in the past decade and continue
    to grow. The focus of treatment technologies is
    to achieve higher levels of pollutant removal
    while minimizing the operation and maintenance
    costs of the treatment system.
  • Most of the treatment plants in the US were built
    more than twenty years ago and many need to be
    upgraded to improve capacity and treatment
    efficiency. Such upgrades are often
    opportunities to employ emerging technologies or
    established technologies in newer and better
    ways. EPA prepared a study in 2008 identifying
    the types of technologies being sought . These
  • Removal of Nutrients and Other Contaminants
  • Processes to achieve low total nitrogen and
    total phosphorus levels.
  • Recycle streams for bioaugmentation and enhanced
    nutrient removal.
  • MBR technology for anaerobic wastewater
  • Aerobic Granular Sludge Process (AGSP) for
    aerobic wastewater treatment.
  • Evaluate availability and effectiveness of new
    carbon sources for denitrification.
  • Identify refractory Dissolved Organic Nitrogen
    (rDON) and determine rDON bioavailability.
  • Improve online nutrient and toxic monitoring
  • Improve analytical methods for measuring very
    low levels of nitrogen and phosphorus.
  • Improve disinfection technologies for control of
    emerging pathogens of concern
  • (Cryptosporidium, Giardia, e-Coli-0157, etc.)
    without disinfection byproduct issues.
  • New technologies for cost-effective removal of
    EDCs, PhACs, PBDEs, Prions, PPCPs, etc.
  • (continued on next slide)

Wastewater Treatment Opportunities
  • Use of Smart Technologies
  • Biological process modeling and control by using
    process-modeling tools to control plant
  • operations and optimize treatment.
  • Process automation, improved efficiency, space
    needs, reduced OM costs, and reduced
  • energy usage.
  • Sensors and early warning devices to predict
    system upset.
  • Microbiology and molecular tools to better
    understand and resolve biological wastewater
  • treatment issues.
  • Microbial ecology study of reactors, metabolic
    pathways, and bioengineered systems.
  • Energy recovery improvement.
  • Security of Water Systems
  • Emergency preparedness of WWTPs to deal with
    pandemics, new strains of viruses and
  • bacteria, or spill incidents.
  • Mitigation strategies for treatment plants after
    natural calamities (i.e., Katrina).
  • Prevention and preparedness for bioterrorism.

Source Emerging Technologies for Wastewater
Treatment and In-Plant Wet Weather Management E
PA 2008
Sustainable Manufacturing
US Department of Commerce Definition Sustainable
manufacturing is defined as the creation of
manufactured products that use processes that are
non-polluting, conserve energy and natural
resources, and are economically sound and safe
for employees, communities, and consumers. In
order to offer effective and continued support to
U.S. companies in their sustainable manufacturing
efforts, Commerces Manufacturing Services unit
has launched a Sustainable Manufacturing
Initiative (SMI) and Public-Private Dialogue that
aims to a) identify U.S. industrys most
pressing sustainable manufacturing challenges
and b) coordinate public and private sector
efforts to address these challenges. For more
information on the US Commerce Departments
Sustainable manufacturing initiative see
ring/how_doc_defines_SM.asp The Department of
Energys Industrial Technologies Program
also focuses on reducing manufacturer's energy
requirements while stimulating economic
productivity and growth. Information can be
found at http//
Opportunities in the Manufacturing Area
  • Advanced Packaging
  • Cost-effective techniques for Improving the
    anti-counterfeiting properties of packaging.
  • Solutions to insure product traceability from raw
    material to finished product
  • Chemical coatings that inhibit growth of bacteria
    gases that reduce freshness of a packaged
  • Reversible glue systems, which use electricity
    provided by a paper battery to reverse the
    polarity of surfaces and effectively switch the
    glue on or off, makes for easy opening and
  • Oxygen scavengers, moisture controllers, and / or
    ethylene absorbers embedded in packages that
    reduce the pathogens and gasses that contribute
    to food spoilage
  • Printed electronic components in the form of RFID
    antennas, displays, sensors, thin film batteries,
    and photovoltaics that provide exciting package
    graphics, make products more secure, easier to
    use, and / or easier to track within the supply
  • Monitoring and Control
  • Control-integrated cycle-time and
    energy-efficient tools that analyze the motion
    sequences within machines and offer help in
    optimizing processes
  • Intelligent closed-loop control strategies and
    open-loop control concepts to optimize the
    movements and reduce the energy consumption in
    everyday manufacturing operations
  • Innovative, energy efficient components and
    intelligent closed-loop control systems to help
    reduce energy usage
  • Monitoring measurement tools for conducting
    energy audits and providing recommendations for
    corrective measures in carbon-emitting
  • Carbon footprint measurement and monitoring tools
    and applications to assist companies to achieve
    carbon footprint neutrality
  • Process-based Life-Cycle-Assessment methods that
    provide detailed documentation
  • Technologies that increase heating/cooling system
    performance and efficiency

Opportunities in the Manufacturing Area
  • Smart Production
  • Intelligent sensor and automation technologies
    as well as next generation controls, information
  • processing, robotics, and wireless technology
    that improve process efficiency
  • Sustainable manufacturing technology that will
    enable factories to function in an enduring
  • manner by abolishing waste, using resources
    efficiently, eliminating harmful emissions and
  • manufacturing products that are kind to the
  • Microfabrication technology to enable the
    cost-effective manufacture of microsystems
  • in large quantities in an autonomous factory
  • Re-configurable manufacturing technology to
    help meet increased customizability
  • requirements. Adaptable hardware and software
    components, modules, machine tools and
  • robots that can be easily reconfigured to
    address a wide range of customer needs for
  • products, features, and services.
  • Next generation material processing technology,
    together with improved co-operation between
  • materials development and manufacturing,

The Cleantech States Cities
Renewable Portfolio Standards
  • Which States Have Established Renewable Portfolio
  • As of March 2009, RPS requirements or goals have
    been established in 33 states plus the District
    of Columbia . A RPS provides states with a
    mechanism to increase renewable energy generation
    using a cost-effective, market-based approach
    that is administratively efficient. An RPS
    requires electric utilities and other retail
    electric providers to supply a specified minimum
    amount of customer load with electricity from
    eligible renewable energy sources. The goal of an
    RPS is to stimulate market and technology
    development so that, ultimately, renewable energy
    will be economically competitive with
    conventional forms of electric power.

Source USEPA
State Renewable Portfolio Standards (RPS)
  • Summary of State Renewable Portfolio Standards
  • The following table gives a rough summary of
    state renewable portfolio standards and links to
    organizations that are administering these
    standards. Percentages refer to a portion of
    electricity sales and megawatts (MW) to absolute
    capacity requirements. The date refers to when
    the full requirement takes effect.

Five states, North Dakota, South Dakota ,Utah
,Virginia, and Vermont, have set voluntary goals
for adopting renewable energy instead of
portfolio standards with binding targets. Source
US Dept of Energy
2008 US City Sustainable Rankings
Source SustainLane 2008 US City Sustainability
Top 5 US Cities for Cleantech Incubation Clusters
Which cities are leading the Cleantech economic
revolution in the US?
Source SustainLane
Sources of Funding
Cleantech Funding Overview
  • Venture capital cleantech investment hit 4.1
    billion in all of 2008. However, cleantech
    investing, like the rest of the US economy,
    dropped considerably in the first quarter of
    2009, compared with recent quarters
  • Now things have started to turn around, as VC
    investment in cleantech rebounded in the second
    quarter with more than 1.2 billion invested in
    85 startups - a 50 increase. This is up from
    836 million in 59 deals in the first quarter of
  • After California and Massachusetts, the
    states with the most cleantech venture activity
    are Texas, Washington, New York, Colorado, and
    North Carolina.
  • Continuing a trend that began last year,
    investment is increasingly flowing toward
    technologies that boost energy efficiency or
    energy storage, a less capital-intensive option
    for many VCs. Energy storage was the big winner
    in the first quarter, more than doubling to 114
    million from 50 million one year ago.
  • In the second quarter of 09, solar power was
    once again the leading investment segment at more
    than 330 million. Unlike previous quarters - the
    second quarter saw a much more balanced
    distribution across the various sectors with a
    marked increase in automotive (more than 202
    million) and energy storage (more than 180
  • What is the outlook for cleantech investing? Just
    like more mature segments of the clean-energy
    industry, cleantech is waiting for Washington to
    release the stimulus funding.
  • According to Joseph A. Muscat, Ernst Youngs
    Americas Director of Cleantech While the timing
    of the receipt of government funding is
    uncertain, we expect that loan guarantees and
    other government financing structures, as well as
    corporate adoption rates of clean technologies,
    will be early indicators of an upward investment

Cleantech Funding (contd)
  • Cleantech Sector VC Investments Q1 2006 Q2 2009

Source PWC/NVCA MoneyTree Report Thomson
Reuters May 2009
Top Cleantech sub-sector Investments
  • ( in millions)

Pollution and Recycling (incudes water technology)
Top 10 States for Cleantech Investment
Top 10 states attracting venture capital
investments in companies in the clean energy
economy, 2006-2008. In millions.
Top 10 states in clean technology patent
registration , 1999-2008.
Source Pew Charitable Trusts, 2009, based on
data from The Cleantech GroupTM LLC analysis by
Pew Center on the States and Collaborative
Top Cleantech VC Firms in California
Top Cleantech VC Firms in Massachusetts
What are VCs Looking For?
  • US Venture Capitalists are looking for companies
    that provide
  • Energy efficiency technology to improve
    optimize the built environment (home,
  • commercial, federal buildings industrial)
    i.e. lighting and control intelligence
  • Technology to monitor energy demand, i.e.
    software that tracks and regulates a
  • buildings energy use
  • Energy intelligence and smart grid related
  • Demand side distribution technology
  • Water technologies that have an environmental
    impact i.e. forward osmosis,
  • desalination water capture and reuse
  • Energy storage technology to offset the
    intermittancy of solar wind
  • Battery storage technology for vehicles

Next Steps for Finnish Companies
What Finnish Companies Should Do
  • Establish an office in the US with a partner, as
    a subsidiary company or through an
  • acquisition.
  • Develop relationships with US partners
  • Understand what VCs are looking for and the
    criteria you are expected to meet.
  • Utilize local consultants to assist with
    understanding the requirements for doing
  • business in the cleantech marketplace
    particularly at the federal and state level
  • Get to know the various DOE technology programs
    and the requirements before
  • applying for funding.
  • Investigate the various state and state program
  • Get to know the key development persons at the
    DOE National Labs.
  • Focus on opportunities in your niche area and

Next Steps Followup Programs
  • Explore the potential of partnering with a US
    Cleantech organization such as the
  • Cleantech Group LLC, the New England Clean
    Energy Council or other organizations to
  • help showcase Finnish technologies companies
    for a US audience.
  • Identify focused trade shows or seminar events
    where Finnish companies may have
  • an opportunity to present their technologies
    and meet with potential partner companies
  • One will be the Nordic Green event in Silicon
    Valley April 27-28, 2010.
  • Arrange roadshows within a specific segment of
    the Cleantech industry for Finnish
  • companies to meet with various city and state
    officials and/or private companies
  • Arrange for a targeted group of US companies to
    travel to Finland to meet with Finnish
  • companies to discuss potential business
  • Homework done by Finnish companies and Finpro to
    identify specific areas for initiating
  • business development activities.

Contact Information
Thank You To discuss this report in more detail
or for more information, please contact Len La
Vardera Sr. Consultant Finpro USA Stamford,
Connecticut Tel 1 203-524-2050 leonard.lavarder