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Sustainable Future – Building A New World
ATONRÂ PARTNERS SA 7, rue de la Croix d’Or - 1204 GENEVA – SWITZERLAND - Tel: + 41 22 906 16 16 www.atonra.ch
February 2020
SUSTAINABLE FUTURE CERTIFICATE
Investment Case
➢ Climate change, a growing world population and an increasing world’s electrification have started to sparkmajor changes in our living habits and the adoption of sustainable behaviors
➢ Sustainable development is defined as “development that meets the needs of the present withoutcompromising the ability of future generations to meet their own needs”
➢ Our Sustainable Future theme will capture the growth (estimated above 20% on average) in all industriesbenefiting from the sustainable development of our planet
➢ We invest in pure players in renewable energies, energy storage, smart transportation, water & wastewatertreatment, the digitalization of energy systems and integration of smart technologies
Details
✓ Issuing bank: JP Morgan, Calculation agent: JP Morgan
✓ ISIN: XS1668108175 (USD), XS1668108506 (EUR)
✓ Currency: USD, EUR
✓ Fees: 1.5% management fee + 15% performance fee, high water mark
✓ Bloomberg tickers: JMLNARSF (USD), JMLNARSE (EUR)
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…and it’s affecting our lives in many different ways
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Climate Change Is A Fact…
To Survive, Human Beings Are Reacting To That Change
Adaptation
Mitigation
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&
Technology is the Answer!
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Fossil Fuel Scarcity?
Growing Water Needs?
Increasing Electricty Demand?
Food Shortage?
Extreme Pollution?
Traffic Congestion?
Energy Storage
Algea Biofuel
Micro-Irrigation
Hydrogen Train
Hyperloop
Smart City
Water & Wastewater Treatment
Solar & Wind
Energy Storage
Smart Agriculture
Smart Transportation
Smart Grid
Smart Cities & Buildings
Energy Efficiency
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Source: Marketresearch, Zion Market Research, Allied Market Research, Grand View Research, Transparency Market Research, Global Market Insights, Research and Markets, Hexa Research
SUSTAINABLE FUTURE CERTIFICATE
A $3.6 Trillion Market By 2024
CAGR 2018-2024
Electric Vehicles ($464B)
Solar Energy ($633B)
Stationary Energy Storage ($10B)
Smart Transportation ($285B)
Smart Buildings ($62B)
Smart Agriculture ($21B)
38%
34%
23%
14%
22%
24%
Wind Energy ($170B) 13%
4.3%
AtonRâ Sustainable Future
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Water Treatment ($664B) 4%
Li-Ion Batteries ($80B) 17%
Energy Efficient Devices ($1T) 22.3%12%
Drivers
Declining prices for Renewables and Storage
General environmental concerns
Rising Electricity demand
Depleting natural resources
Growing Population
Risks
Lower Fossil fuel prices
Fiscal Austerity
Unsupportive Regulation
Hydrogen ($206B) 6%
~1800 AD
Energy & History
SUSTAINABLE FUTURE CERTIFICATE
➢ Our society has historically not been relying on fossil fuels
➢ The renewable energy transition is already on its way
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Sustainable Energy EraEnergy Used is Clean and RenewableFossil Fuels Era
?
When? To end of humankindTo beginning of humankind
What shape will have that transition?
200 years
Question: How much of total world electricity consumed is produced by wind and Solar PV
combined?
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A
B
C
D
7%
17%
27%
37%
Power Generation: A Clear Shift Towards Solar and Wind
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2050
Coal
Gas
Oil
Nuclear
Hydro
Wind
Solar
Other
1970 1980 1990 2000 2010 2020 2030 2040
0%
100%
90%
80%
70%
50%
40%
60%
30%
20%
10%
NEO 2018 power generation mixHistorical world power generation mix
& 48% solar and wind
64% renewables by 2050
29% fossil fuels by 2050
Power Generation Mix
Source: Bloomberg NEF; IEA
➢ If we continue to deploy PV panels at the same pace, PV power capacity will exceed today’s total power needs (incl. coal, gas, oil, etc.) within 10 years!
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
PV - Installed Capacity (MW)
Total Capacity (2017):
7’343’000 !
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Solar Installations Taking Off
Source: IEA
The take-off is now!
CAGR18-29: 30%
SUSTAINABLE FUTURE CERTIFICATE
Solar: Many Different Technologies And Applications
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Solar: Innovation Sparks Cost And Yield Efficiencies
➢ Large variety of PV cells type: crystalline, multijunction, thin-film, organic, etc.
➢ Growing cell efficiencies for all types
➢ While efficiency grows, costs continue to decline
➢ Cumulative production x 2 → Price -24%
Solar Cell Efficiencies
Source: Fraunhofer ISE
Mimicking Moore’s Law
Solar cells into roof tiles
Solar cells into building’s facades
✓ Improved look compared to traditional solar panels
✓ Improved overall cost of roof + PV modules
✓ Maximize exploitation of solar energy on buildings
✓ Transparent cells perfectly integrates into architecture
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✓ Inflexibility
✓ Infrastructural Problems
✓Network Congestion
✓ Lack Of Transparency
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Electric Grid Needs A Major Upgrade
➢ The traditional grid is facing a multitude of challenges that can be outlined in the following categories:
SUSTAINABLE FUTURE CERTIFICATE
By 2040, 11B smart appliances are expected to be deployed in the smart grid worldwide
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Smart Grid: Flexibility, Efficiency, Reliability
Provide 185 GW of system flexibility and save $270B in electricity infrastructure.
A network of integrated microgrids
Sensors: detect disturbances and can signal for areas to be isolated
Processors: execute special
protection schemes in
microseconds
Smart appliances: can shut off in response to frequency
fluctuations
Demand management: use can be shift to off-peak
times to save money
Generators: energy from small generators and solar panels can reduce overall demand on the grid
Storage: energy generated at off-peak times could be stored in batteries for later use
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Smart Grid: A Wide Array Of Technologies
Smart Appliances
Energy Management Systems
Phasor Measurement Units
Transmission Enhancement
Renewable Generation Integration
Distribution Grid Management
Advanced Metering Infrastructure
SUSTAINABLE FUTURE CERTIFICATE
Country EV Policy Announcements
China 5mio EV by 2020, 20% EV sales by 2025
France 100% EV sales by 2040
United Kingdom 100% EV sales by 2040
India 100% EV sales by 2030
Thailand 1.2 mio EV stock by 2030
Poland 1 mio EV Stock by 2025
New York City 20% EV sales by 2025
➢ Electric Vehicle market is projected to benefit from a significant growth in the coming years (CAGR of 22.5%).
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Smart Transportation: EVs In The Spotlight
EV batteries
Charging stations
Electricity supply
Electrical Grid
➢ Several industries will be affected:
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Smart Transportation: EV Batteries Evolution
Trend➢ Reduction of Cobalt Content (~20% to ~6%)➢ Improvement of anode graphite structure
(addition of silicon) to improve charging rates➢ Development of gel-like electrolyte material
Objectives➢ Reduce cost➢ Increase energy density➢ Improve charging rates➢ Improve battery safety
Sources: IEA analysis based on Meeus (2018); Nationale Plattform Elektromobilitat (2016); NEDO (2018); Howell (2016); Pillot (2017).
SUSTAINABLE FUTURE CERTIFICATE
EVs act as batteries with bidirectional flow of energy from and to the grid
✓ Peak load Leveling
✓ Emergency Backup
✓ Frequency Regulation
✓ Renewable Energy Storage
➢ At any instant, 95% of all cars are parked and unused
➢ Car batteries can be used to store electrical energy and give it back to the grid when needed
➢ V2G revenue can offset an average 10% of total cost of EV ownership
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Smart Transportation: EVs To Turn Into Home Batteries
Source: Cenex
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Smart Transportation: Shaking-up all Transport Modes
Shipping
➢ IMO 2020: Limit sulphur content in all marine fuels from 3.5% to 0.5% by 2020
➢ IMO 2050: Reduce GHG emissions by 50% by 2050 (2008 baseline)
Aviation
➢ CORSIA: Carbon-neutral growth from 2020➢ IATA: reach 1 billion passengers to fly on sustainable
biofuels by 2025
Rail
➢ Most efficient mode of transport: 9% of activity but only 1% of transport energy demand
➢ Rail technology breakthrough to facilitate transport shift from cars, trucks, and planes to train.
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Energy Storage: A Major Challenge, A Major Opportunity
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Question: What is the most widely used energy storage technology (in term of energy stored)?
A
B
C
D
Li-Ion Batteries
Pumped-Hydro
Compressed Air
Flywheels
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Energy Storage: Pumped-Hydro Dominates The Game
➢ Representing over 95% of world storage capacity
Overall Cost
Lifespan
Discharge Time
Energy & Power Density
SUSTAINABLE FUTURE CERTIFICATE
➢ Electric Vehicles to drive the Lithium-Ion battery demand
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Energy Storage: Li-Ion On The Rise
➢ For each storage need, there will be a storage technology:
SUSTAINABLE FUTURE CERTIFICATE
Sustain a critical load during grid outages Lowers demand during system peaks
Buy energy & store it in off-peak hours and consume/ sell it during peak hours
Stabilize frequency in real time
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Energy Storage Unlocks Various Benefits
Resiliency/ Back-up Power Demand Response
Energy Arbitrage Frequency Regulation
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Question: Which of the following sector is responsible for the majority of world’s water usage?
A
B
C
Agriculture
Industrial
Municipalities/ Households
SUSTAINABLE FUTURE CERTIFICATE
70% !
Every year, about 100’000 km3 of water falls on earth… Only 10% of that can be used for agriculture, industry, and drinking
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Water: A Commodity That Needs To Be Preserved
Source: focusingfuture.com
SUSTAINABLE FUTURE CERTIFICATE
Water
Innovation
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Water: New Technologies To Enhance Distribution And Treatment
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Question: Which of the following requires more water to be produced?
A
B
C
D
1 kg of Rice
1 kg of Chocolate
1 kg of Beef
1 L of Biofuel
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Water Footprint Beyond Expectations
17’000 Liters1 kg of Chocolate
15’000 Liters1 kg of Beef
2’500 Liters1 kg of Rice
2’500 Liters1 L of biofuel
Water management Livestock Monitoring
Drilling, Seeding and Spraying
Aerial Crop Monitoring
Fertigation
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Smart Agriculture, Or How To Better Feed A Growing Population
✓ High precision positioning systems
✓ Sensors and remote sensing
✓ Integrated electronic communications
✓ Understand feeding and drinking habbits
✓ Help fend off disease or infections
✓ Protects Animals
Precision Farming
Livestock Monitoring
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Smart Agriculture, Or How To Feed A Growing Population
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COMPANY
SolarEdge Technologies INCNASDAQ:SEDGIPO: March 2015Market Cap: $2.15 B
Provider of Power Optimizers & Solar Inverters
MARKETModule Level Power Optimizer:$650M (2018) to $1.46B (2’24), CAGR: 15%
DRIVERS
Falling prices of PV Modules and Home Batteries → Fast Deployment
Every Panel needs an Inverter
Key component for various new applications (smart grid, EV, etc.)
STRENGHTS
Most efficient Inverter Technology
Only a few players on the residential segment
Diversifying its offer to capture other adjacent growth markets (Storage, Home EnergyManagement, e-Mobility)
Conclusion
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Water & Wastewater Treatment
Solar & Wind
Energy Storage
Smart Agriculture Smart Transportation
Smart Grid
Smart Cities & BuildingsEnergy Efficiency
20-25% average growth
➢ The inflection point is now!
Grid parity
Technology breakthrough, just the beginning!
Renewables: now viable without subsidies → fossil fuel need subsidies to survive
World’s Electrification: data centers, EV, smart transportation, digitalization, etc.
Invest In The Future Of Our Planet
SUSTAINABLE FUTURE CERTIFICATE 36
➢ A long term opportunity impacting every aspect of our life: energy, transportation, food, water, environment…
➢ Rather than passively endure climate change, be part of a more sustainable future
➢ Launching date: 22.10.2018
➢ ISIN: XS1668108175 (USD), XS1668108506 (EUR)
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