Slide 1: Pacific Green Energy Initiative Summary Presentation January - 2008 PGEI Initial Funding from: NRC, BC Ministry of Energy – Alternative Energy Branch, Globe Foundation, The Baron Group (Hong Kong based merchant bank), The Cascadia Institute
Slide 2: Pacific Green Energy Initiative (PGEI) Purpose: Realize the economic potential of BC’s energy technology sector Strategy: Harness the Province’s GHG Emissions Targets to establish British Columbia as a World Centre for Green & Clean Energy Technology Development In other words to link BC’s GHG reduction agenda to an economic development agenda centered on energy technologies. PGEI role: Build consortia for major demonstrations and help establish P3’s to fund them… 1 Pacific Green Energy Initiative
Slide 3: Pacific Green Energy Initiative (PGEI) Consultations PGEI is a collaborative initiative based on consultations with over 100 organizations and practical testing of the concepts presented carried out during 2007. PGEI is operated by the not-for-profit Cascadia Institute. Key Consultations (no order): J. MacDonald – Day 4 Energy K. Dobell – Dobell Business J. Wiebe – Globe Foundation M. Umalady – Premiers Tech. Council M. Veljkovic – National Research Council IFCI Y. Yogendran – National Research Council IFCI W. Majcher – Baron Group – Hong Kong D. Eaton – Baron Group - Vancouver R. Bick – Baron Group - Vancouver C. Kelly – Cascadia Institute G. Feller – Urban Age – San Francisco M. Pinto – SFU J. Hepburn - UBC J. Robinson – UBC CIRS R. Thring – UNBC M. Taylor - UVic R. Marchant – Powertech Labs Key Organizations Consulted: Baron Canada, Baron International BC Hydro – Conservation Innovation BC Hydro – VP Technology BC Hydro Powertech labs BC Nano-tech BCIT CIRS City of Prince George Crysalix Day 4 Energy Delta Q Fireplace International Globe Foundation Hypod (business plan) Longview Capital Lumeloid (business plan) Ministry of Community Development Ministry of Energy, Mines and Petroleum Resources Ministry of Transportation Nexterra Northern Corridor: Town of Kitimat, Town of Terrace, City of Prince Rupert Northern Trust Development Initiative NRC IFCI NRC IRAP – ITA’s Prince George Power Technology Alliance Premier’s Technology Council Progress House Project - Vanderhoof SFU Stantec Engineering Streetlight Intelligence Stuart Nechako Community Futures Development Corporation TransLink UBC University of Northern BC UVic Pacific Green Energy Initiative 2
Slide 4: Global Green / Clean Energy Revolution… Today’s Technologies Transportation Gasoline & Diesel Green Energy Technologies Hybrid Vehicles Bio-fuels - Ethanol, bio-diesel Plug-in Hybrids & All Electric Vehicles Electricity Generation Nearly all power supplied by the Grid Coal, Hydro, Gas & Nuclear Plants Batteries – large & small Distributed generation plays a much larger role Wind, geothermal, solar, ocean systems Local waste to energy, co-generation, solar Clean Coal & carbon sequestration Fuel Cells, Hydrogen, new Battery technologies Space & Water Heating Natural Gas Electricity Biomass (wood) Green building technologies Building integrated energy supply systems Geo-exchange, solar PV, solar heating, Fuel Cells District Scale CHP and Heating Systems waste to energy, geothermal, biomass Supported by a growing range of new energy control systems and energy saving technologies in all sectors of the economy 4 Pacific Green Energy Initiative
Slide 5: Green / Clean Energy Technology Firms… With the know-how and business connections to: • Solid R&D Capabilities Strong Intellectual Property Rights Design, build, test and demonstrate competitive, reliable products and systems Build effective partnerships for manufacture, sales and distribution with Asia Pacific partners Attract sufficient capital to commercialize products and systems in Global markets Manufacture and deliver reliable, competitive products and systems to world markets Sound Financial Fundamentals With 3 Year Track Record • • Mid-to-Late Stage with High Growth Potential Experienced Management Team Competitive Edge In the Industry • Will succeed in the Energy Revolution…. 5 Pacific Green Energy Initiative
Slide 6: BRITISH COLUMBIA One of the few regions on earth with the potential to be 100% sustainable from indigenous renewable energy sources. Green Energy Technology firms Green Energy R&D and Test Facilities Heritage Dam System BC Policy Initiatives Energy Plan Climate Change GHG Reduction Goals Innovative Clean Energy Fund Biomass Energy Plan Buildings Energy Efficiency Strategy Premier’s Technology Council Commercialization Recommendations Hydro Wave / Tidal Wind Solar Geothermal Biomass Pacific Green Energy Initiative 6
Slide 7: Systemic Challenge #1 The Commercialization Gap “Mind the Gap” Production & Global Sales Applied R&D & Prototypes Demonstrations then Major Expansion Primarily Public Funding Mix Public / Private Primarily Private Capital We are very good at R&D, testing and verification BUT we have not capitalized on the potential of P3’s for major demos Consequently we are not good at attracting large scale private capital to commercialize BC technologies in world markets Leads to a plethora of small, underfinanced firms with good technologies competing for government grants – the present situation 7 Pacific Green Energy Initiative
Slide 8: Systemic Challenge #2 The Technology Commercialization System in Canada Working Prototypes (unconnected) Re-circulating Meetings Tank Business Plan Review Circuit Hopes & Dreams Pipe New Venture Connection IP valve Venture Capital Grinder Public Sector Assistance Pipes By-pass Pipe Paper Flow Government Policies IN Only change since the 1970’s is that public sector diligence processes are more complex and even less connected to the real world 8 Pacific Green Energy Initiative
Slide 9: Systemic Challenge #3 A Reactive Policy Environment Characteristics of the Canadian Policy Environment surrounding commercialization of GCET’s Fear of being first (or fear of being too successful)… Leads to studies, generates reports and conferences BUT NO ACTION Fear of connecting the dots (GHG reductions ……… Economic Growth) Focus on macro-economic remedies… Yet no matter what regulatory and carbon trading schemes are put in place, the commercialization gap and the commercialization system in Canada that creates it remain … 9 Pacific Green Energy Initiative
Slide 10: Solutions “Virtual Centre” to marshal and focus British Columbia’s human and technological capital for the development and demonstration of High Potential* Green Clean Energy Technologies (GCET’s) in BC for global markets. “Commercialization Accelerator” To accelerate the commercial demonstration of GCET’s in BC and provide a steady flow of “fund ready” GCET businesses with global market potential to large private capital pools. * High potential for GHG reduction and global markets 10 Pacific Green Energy Initiative
Slide 11: “Virtual Centre” Concept based on Solid Foundations Premier’s Technology Council BC Hub “Living Lab” Concept Globe Centre for Clean & Continuous Energy Assume a world mandate for Clean Energy development and market a BC brand internationally H2 / FC Innovation Hub A Project Network to serve as a virtual one-stop shop for projects that simultaneously advance the energy system and grow the sector. A province-wide network to accelerate the profitable and sustainable commercialization of technology Establish BC’s energy system as the world’s test bed for clean energy technology innovation Collaborative Network of Nodes to advance H2 and FC technologies Green & Clean Energy Technology (GCET) “Virtual Centre” Concept 11 Pacific Green Energy Initiative
Slide 12: What a “Virtual Centre” Must Do 1 Provide an integrated and full range of world class Green & Clean Energy Technology (GCET) development services and “Brand” them internationally Alpha Testing Test & Certify technologies prior to deployment Beta Testing Demonstrate performance & reliability of technologies in full scale real life applications Establish critical mass HQP R&D, testing, development, operations and maintenance, management and business Advanced Technology Acknowledged R&D capacity in specific areas and tech. transfer know-how 2 3 4 5 12 Establish priorities for funding and support them Attract capital to Green & Clean Energy Technology developments Attract a continual flow of innovative, clean energy enterprises able and willing to pay for services Showcase Results & Market the BC “Brand” Create international awareness and partnerships - focus: Asia Pacific Pacific Green Energy Initiative
Slide 13: “Virtual Centre” Concept Developed August 7, 2007 Autonomous BC-wide Nodes Collaborating as a “Virtual Centre” Coordinated by Pacific Green Energy Initiative Demonstration Consortia Building & Capital Acquisition Cascadia Institute, others Alpha Test Certification eGeneration Powertech NRC IFCI U’s, others Biomass Energy Prince George FPI., U’s, others Beta Test Sites CIRS Micro-grid H2 Highway Dockside Green others High Growth Node Brand Marketing Showcasing International connections Globe, others Technician Technologist Training BCIT, VCC UCFV, others Advanced Technology R&D & Transfer NRC, U’s, Fuel Cells/H2 Smart grid Nanotech Bioenergy others Policy & Economics Climate Change modeling U’s, others Central Data Management Networking MITACS, BC Net, NRC others Primary Nodes relating to test, certification and demonstration of specific extant technologies Supporting nodes – others may be added The outputs of the “Virtual Centre” are High Profile demonstrations that BC GCET firms are able to design, build, test and demonstrate competitive, reliable products and systems 13 Pacific Green Energy Initiative
Slide 14: “Virtual Centre” – Case Study Urban Micro-Grid – CIRS Proposal 14 Pacific Green Energy Initiative
Slide 15: What a Commercialization Accelerator Must Do Focus on high potential technologies Help build consortia for high profile GCET demonstrations (Host organizations, Prime Contractors, GCET firms and suppliers) Issue RFP’s to define the engineering and economics for commercial demonstrations (essential to convince host organizations and accelerate public sector diligence processes) Help arrange funding for demos that incorporates the services provided by the “Virtual Centre” (also essential to accelerate diligence processes) Help build effective partnerships for manufacture, sales and distribution with Asia Pacific and Cascadia Region partners Assist GCET firms engaged in “Virtual Centre” Demonstrations to obtain sufficient capital to gear up for and enter global markets 15 Pacific Green Energy Initiative
Slide 16: PGEI Commercialization Accelerator Linked to “Virtual Centre” “Virtual Centre” Pacific Green Energy Initiative Demonstration Consortia Building & Capital Acquisition Cascadia Institute, others Other Nodes Other Nodes Other Nodes High Potential GCET’s Assess Potential Agree on Enterprise Strategies Add Professionals Strengthen Management Teams Add Strategic Partners Qualify the Business Plans Fund Ready Businesses Introduced to global Private Capital Pools 16 Pacific Green Energy Initiative
Slide 17: PGEI Commercialization Accelerator Linked to China and Cascadia Region Pacific Green Energy Initiative – Cascadia Institute Beijing Strong High-Tech Development Corporation Beijing Strong High-Tech (BSHTDC) is the Chinese government agency responsible for developing and managing the Zhongguancun Science Park in the Haidian District of Beijing. BSHTDC is an independent arm of the Central Government mandated to manage, develop, and incubate high growth potential companies operating within the Science Park. Pacific Green Energy Initiative (PGEI) operates under the auspices of the Cascadia Institute, with high level business and governmental connections in the Cascadia Region and beyond. 17 Pacific Green Energy Initiative
Slide 18: Assisting GCET Firms to Attract Capital Pacific Green Energy Initiative positioned to provide First Pass Diligence Services for Large Private Capital Funds Green & Clean Energy Enterprises Assess Potential Agree on Enterprise Strategies Add Professionals Strengthen Management Teams Add Strategic Partners Qualify the Business Plans Fund Ready Businesses Introduced to large Private Capital Pools 18 Pacific Green Energy Initiative
Slide 19: PGEI Linkage to the Baron Green Fund The Baron Group is a Hong Kong based merchant bank that is establishing a major private equity fund to invest in GCET. The fund will be based in Vancouver. Baron views the Pacific Green Energy Initiative (PGEI) as a “value-added” deal flow funnel that assesses and qualifies referrals to the Fund. PGEI is linked to an emerging umbrella organization in British Columbia established by the Baron Group, the National Research Council (NRC) in British Columbia, and the BC Ministry of Energy, Mines and Petroleum Resources as partners to accelerate the growth of BC’s growing Green Energy Technology (GET) sector and so help commercialize companies in world markets. There are some 200 GET enterprises in BC alone. A key strategy is to build government investments in GET demonstrations into the business plans of candidates to the Pacific Green Energy Fund. A coalition has already been formed with four major British Columbia universities, NRC and BC Hydro Labs to expand Green energy R&D, testing, certification and GET demonstrations in BC. Pacific Green Energy Fund CONFIDENTIAL DOCUMENT 19 Pacific Green Energy Initiative
Slide 20: PGEI – Test Program 2007 results Actively Source GCET firms Initial Assessment Interview Deal Packaging Interviews Deal Presentation Preparation TEST RESULTS June to October 2007 • 10 deals Initial Assessment • 1 Deal packaging • 1 Presentation 20 Presentations to Money Pacific Green Energy Initiative
Slide 21: About PGEI PGEI is operated by The Cascadia Institute a Vancouver (BC) based federally registered charitable society established in 1991 for non-profit policy research and public education. PGEI is based on: NRC IRAP funded study on potential energy tech employment in BC ~ 21,000 (2005 employment ~ 3,100) Premier’s Technology Council Vision for BC as a world centre for energy technology development - 2006 Endless Energy report – facts based, complete picture of BC’s energy economy Commenced 2005 – published 2007 (17,000 downloads Feb through June 2007) Defined potential for energy supply and conservation to 2025 (300 interlinked Excel spreadsheets) •Energy conservation measures can reduce rate of growth (consumption) to zero •Shift from fossil fuels to renewables can be accomplished •District scale (micro-grids) energy supply potential ~ 140 PJ •Unit scale (e.g. building integrated systems) potential ~ 80 PJ Pacific Green Energy Initiative formed 2007 Initial funding: Baron Group (Hong Kong based Merchant Bank), NRC, MEMPR, Globe Foundation •Defined barriers to the sector’s growth •Developed strategy to overcome the barriers •Established business linkages with Global capital pools, with China and Cascadia Region 10 Pacific Green Energy Initiative