Download - CleanTech Road
CleanTech Road
Harvesting renewable energy from the roadways for electrical power
24 May 2010 1
Ian Martin, CEO Teresa Kruckenberg, CTO, R&DGeoff Gilmore, Product DevelopmentSiva Veerepalli, Sales & MarketingBryan Clement, CFO and PPA’s
CleanTech Road
Our Mission:Harvesting renewable energy from the roadways for electrical power
(I-5 from SD to LA, with 8 lanes for 124 mi can power 400,000 homes)
24 May 2010 2*Assume medium day use (3000 cars/hr)
State Green Energy Mandates
24 May 2010 3
2010 2015 2020 2025California 20% (at 14) 33%Colorado 30%Nevada (at 6) 20%Illinois 25%Minnesota 25%Federal* ~20 to 25%
*Estimates of range
The ProductEnergy Harvesting Slab
• Piezoelectric devices embedded in slab under asphalt
• Deflection of asphalt typically wasted as thermal energy
• Deflection creates compressive strain on piezoelectric device –convert to electrical energy
• Connect to grid, and/or store energy in battery, super-capacitor
Normal road deflection less than ¼” deflection
Device stiffer than road
Thermal waste
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CleanTech Road Value Proposition
• Converts 65% of energy to power• Comparable to solar in cost• Doesn’t require new space –
embedded into new or existing roads
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Component Solar Direct Manufacturing Cost ($/m2), 20% efficiency
CleanTech Direct Manufacturing Cost ($/m2),
65% efficiency
Total direct manufacturing $90/m2 $287/m2
Cost per power conversion efficiency $450/m2 $441/m2
How & Why
To Power GridConnectionDC AC
24 May 20106
I5 San Diego to LA, 124 mi would yield 8GWh/day, $1.6B system installation cost yields
$320M profit from device padsRevenue $1.6M / day @ $.20 / kWh$ 584 Million / year
$ 7.0 Billion after initial expenses over 15 years*
*3500 pads/mile, 335kWhr/mile, $60 mil for maintenance
Net metering
CleanTech Road
CleanTech Manufacturing
CleanTech Installations
Power PurchaseAgreement (PPA)
Customer
Incentives/rebatesDevelopment and Installation Fee
Maintenance FeeProfits
Re-sell PPAs to investors
R&D and Manufacturing of Piezo Electric Modules
Customers sign a PPA with CleanTech;
Cleantech finances the installations by repackaging the PPAs and selling to institutional investors seeking low risk and steady returns
CleanTech gets development, installation and maintenance fees
Biz Model
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UtilityCo.
PPA Economics
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PPA value (cents per
kWh)
PPA Face Value
PPA Duration (years)
SellingPrice
CleanTech Profit
Investor Profit
.20 $5.87M 10 $3.9M $903,800 $1.97M
.15 $6.6M 15 $3.6M $603,800 $3M
4-8% ROI for investors, per mi financials no credit offsets included
Based 8MWhr/day @ 3000 vehicles/hr avg
How Traffic affects Revenue
24 May 2010 9Dollar/kWh
Revenue per mile, single lane, per year
Rev
enue
Barriers to Adoption
• High initial startup costs– Creative financing
• Ownership conflicts – government owned roads.– State of Calif PR from use, as publicly the generator of the power
• Cost savings by being seller off power to distributors.
• Roadway construction is very complex and disruptive. – Retrofit – Install process would be to done lane/section running. Overnight installs
• Unproven in the US – Current demo system in Israel – Innowattech– 10m yielded 2kWhr
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Competition
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• Current Competition There are three potential competitors that currently exist on the market.
• Highway Energy Systems (HESL)- A research company based in UK. formed by Peter Hughes that are focusing on electro-kinetic road ramps
• Innowattech – is a privately held company based in Israel develop an alternative energy system that harvests mechanical energy imported to roadways, railways and runways.
• Powerleap Inc.- is a company that develops floor solutions that
generate electricity from pedestrian and vehicular traffic. The company is based in Michigan, USA and was formed in 2008.
Intellectual Property• Open freedom to operate • Expect new IP generation for “system”, expect new IP
with nanotechnology for piezo devices with reduced cost– Smaller – Requires much less deformation– More rugged (wider range of supported loads)– Lower manufacturing cost– Lower installation
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Phased Funding2011-2012 2013-2015 2016-2019
Phase 1 - Short stretch, University Property,
$2-$3M for road demo and R&D of the devices
Phase 2 - HOV / high use lanes 3-5 mile stretch, tie into local grid,
VC and grant funding
$10-$15M for initial start-up and facility
Phase 3 - Full production, freeway installations VC funding – PPA purchase agreements, scale-up
Round 1 VC payback
$25-$30M
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenue ($M) 3.25 4.39 5.54 16.42 21.01 25.59 36.67 43.55 56.92 66.09 81.75
Expenses ($M) 4.00 4.00 4.00 17.10 16.13 16.77 23.23 25.65 34.19 37.42 46.77
Gross Margin (%) 0.00 8.94 27.78 0.00 23.23 34.46 36.67 41.11 39.93 43.38 42.79
Profit ($M) before taxes -0.75 0.39 1.54 -0.67 4.88 8.82 13.45 17.91 22.73 28.67 34.98
Cum Net Profit before taxes ($M) -0.75 -0.36 1.18 0.51 5.39 14.21 27.65 45.56 68.29 96.96 131.9
Profit and Loss Statement
33 mi, 4 lane completed,
20cent/kWh
PPA over 10 years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023-5
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Prof
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M) B
efor
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CleanTech Road
CleanTech Manufacturing
CleanTech Installations
Because we believe we have the capability to
succeed
Because we hold the economical, technologically
advanced solution for clean energy
Because there is great potential
for future growth
Because we offer a Unique Differentiated
and Effective
solution
So Why Us?
Summary
24 May 2010 16
End of Presentation
Thank You
Back up Slides
24 May 2010 17
• Geoff, 6 sigma, lean principles, black belt• Siva –
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24 May 2010 19
Competing Technologies
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Energy Source Solar Wind Geothermal Fossil
Oil /Gas Kinetic
Company Soltec Windo Ohm BBQ XON Clean-Tech
COST Cts/KWhr 5-20 5-10 2-10 8-10 8-16 5-20
Payback Yrs 5-20 10-20 10-20 5-10 5-10 5-10
Additional space req’d ? Yes No Yes Yes No
Reliability 6 5 9 9 9 9
Green/ Clean Y Y Y N N Y
In addition to traditional renewable energy sources and techniques such as solar, wind, hydroelectric, and bio, utilities companies are considering new sources and advanced technologies to increase generation from renewable sources
Summary
Green Energy is big business, and power requirements are increasingCleanTech Roads can provide a low maintenance, 20 yr duty solutionThe power from instrumented roads in San Diego county alone could support 500,000 homes with a revenue over a million dollars a day.
CleanTech Road
CleanTech Manufacturing
CleanTech Installations
Value Prop/Mkt/Adoption
• Macro level – California is single largest provider and consumer of green energy– San Diego county is largest solar market– Expected 2010 energy is $20B market in Calif.– Energy use continues to rise– Green Energy requirements are increasing (Calif law to increase by 1% per year)– Average CA home uses 587 kWh per month.(~20/day) (highest is TN 1302 kWh/mo)– Avg cost $0.13- $0.29 per kW resulting in avg cost of ~$100 / mo.
• Other Factors– Many Cities and States are in financial trouble; looking for additional non-tax moneys– Federal grants available– Cities and States own the roads
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Major Companies
Clean Tech Mangement
Clean Tech Manfacturing, Inc
Road Install Sub(e.g. Irish Inc)
Construction Mgmt Sub
Performs overall mgmt functionsLobbies State & City Governments, Media
Manufactures Device install pkg,
Manages all construction sub-contractors,Permits & Planning interface
Installation company on existing roads
Road Install Sub(e.g. Daley Corp)
Installation company on new roads
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Market
• In addition to traditional renewable energy sources and techniques such as solar, wind, hydroelectric, and bio, utilities companies are considering new sources and advanced technologies to increase generation from renewable sources
• High Demand - Utilities are not on a trajectory to meet the mandates set by states– Looking for a portfolio of alternative means
and technologies– For example, PG&E in CA is committed to
buying from Solargen, which plans to generate energy by beaming solar energy from outer space
– Cleantech would provide a very viable and competitive solution for renewable energy generation
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Road Construction
• Irish Co, Penhall Co, Daley Corp – installers
• Installed during low traffic periods (nightly), road has full use during other times.
• High use ~1Mwh/hour/mi @ 5000 volts, 200 amps 0 gauge wire required (typical size run to modern home)
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Road ModuleManfs.
Peizo- electric
PPA
Road Const.Co. Sales
Force
Install, Integrate &ManagePPAs
PPAs
Low –RiskInvestments
Install, Integrate &ManagePPAs
City Governments
Institutional& PrivateInvestors
InstallationFees
AcquiringPPAs &Investors
AcquiringPPAs &
Investors
ManagementFees
Peizo- electricEnergy
Cleantech Business Model Canvas
Dedicated
Personal
Assistance
24 May 2010 26
Presentation Advice
• Sound very confident• Dazzle xxxx show how huge the market is
– BUILD it up! Show a giant market– Don’t use swarzenager
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Funding
• How do initial VCs make serious money back?????? - VERY Weak– Liked manufacturer idea
• 2 sets of VC runs– Second is deep pocket, dilutes yes but this will
move us towards an IPO and fund initial major manufacturing
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Areas to Work
• No Loop holes – No Magic– Power to grid question– Highlight how transferred to grid – MUST BE
REAL• Where is first money coming from
– Self, family, friends, local-groups, grants• MUST SHOW COMMITMENT• Why is our commitment believable?• Then VCs 24 May 2010 29
Weak Areas
• How power is getting to grid• How we defend against large corps &
capital• Must name a CEO = must be ready to
commit.• What happens if our costs go up / relative • Phased approach (univ 30, HOV demo,
freeway)• Follow the dollar,..,…. 24 May 2010 30
Avg Cars per day
• http://www.cahighways.org/stats3.html• I405 ~ 50mil 325k cars/day (1993) • I8 ~98miles, 250k cars per day (1993)• I10 ~160miles* 363k cars/day (1993)
• 55K-150K cars per mile / day busy areas
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Competition
Competitive Advantage
• CleanTech - unique features that benefit the generation of renewable green energy, providing increased value to our customers giving clear advantage over our competitors:
• Existing technology – with quick growth
• Clean – no bio-hazard by products
• Market ready - Californian road ways/building developers, major cities
• Unaffected by weather
• Uses existing space converts more energy to power – void sight pollution
• Bigger investment but faster payback than traditional alternative energy
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