OVERVIEW: Panelists slides

Transcription

1 OVERVIEW: Panelists slides Financing the Clean Tech Revolution Christopher Ailman Page Chief Investment Officer California State Teachers Retirement System (CalSTRS) Raj Altluru Managing Director Draper Fisher Jurvetson Northon Melo (Moderator) Director, Cleantech Practice Calyon Securities David Pearce President and CEO Miasolé Rodrigo Prudencio Partner Nth Power Page Page Page Page 68-77

2 What is Clean Tech? A brief definition CLEAN TECH is generally defined as KNOWLEDGED- BASED PRODUCTS OR SERVICES that improve operational performance and productivity reduce costs, inputs, energy consumption, waste, or pollution. Source: Accessed on

3 Clean Tech Is An Emerging Asset Class and NOT the actual technology The CLEAN TECH investment focus includes: Water purification Eco-efficient production techniques Renewable energy Green Technology Sustainable Business Source: Accessed on

4 SAMPLE MATRIX OF ASSET CLASSES AND ENVIROMENTAL ISSUES E n v i r o n m e n t a l I s s u e s Climate Change Energy Water Biodiversity Conservation Pollution Agriculture Sustainable Development Public Equity Private Equity Bonds Loans Shareholder dialogue Best in class screening Equity Alternative energy VC Bio-prospecting VC Biotech VC Tax exempt green bonds Screened corporate bonds Tax exempt private water filtration plant bonds Tax exempt green bonds Municipal bonds for smart growth ASSET CLASS Fixed Income Community development loans Credit Enhancement Alternative energy project finance guarantees Water treatment project finance guarantees Sewage treatment project finance guarantees Loan insurance Brownfield development portfolio insurance New Approaches CO2 trading Wetland banks Carbon sinks Nutrient trading; SOx trading Carbon sinks Raw Materials Usage Best in class screening Screened corporate bonds

5 A Myriad Of Opportunities Clean Tech Opportunities Apply to all Stages In the Life Cycle Source: School of Chemical Engineering and Advanced Materials, Newcastle University

6 Converging Forces Create Opportunity The rise of clean tech Technology Markets/ Customers Cleantech Management Exits/Profits Source: Expansion Capital Partners, LLC

7 Clean Tech VC Investment Is Growing U.S. and Canadian Cleantech Venture Deals by Quarter (by amount & # of Deals), Q total = $1,632 $US m 2006 total = $2,290 $US m $ US m 1, Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q3 0 Source: cleantech Group, LLC

8 Energy VC Investment Is Growing Rapidly Cleantech Energy Segment Investment: 2002-Q Amount $mm 1670 $US m 1, $US m 344 $US m 499 $US m $US m $mm Source: cleantech Group, LLC

9 U.S. Private Sector Energy R&D Investments Are Declining Sharply Millions of dollars ($2000) Fossil fuels Renewable & Conservation Nuclear All Others Source: National Science Foundation/Division of Science Resources Statistics

10 Clean-Energy Investments in the First Quarter of 2006 and 2007 Tallying private investments, declining public investments , Q1 2007, Q PE/VC Investments Public Markets Source: New Energy Finance, 2007

11 Global Investment in Clean Energy Worldwide overview, Source: New Energy Finance, 2007

12 Measuring Investments In Clean Energy WilderHill New Energy Global Innovation Index (NEX), WilderHill New Energy Global Innovation Index Source: New Energy Finance, 2007

13 Investors Flock To Clean Energy Latest trends, First Quarter 2007 The NEX index of clean energy companies rose 17.6 %, while S&P 500 increased by 0.2% and NASDAQ increased by 0.3 %. The wind sector rose 35.4%. The public markets for solar groups was 28.8 % up on the start of Biofuels declined, as investors question the viability of the technology and its role in pushing up food prices. Source: FT, April 9, 2007, The Economist (March 2007)

14 Global VC and PE Investments In Clean Energy Hit $ 7 Billions in 2006!! Number of deals in brackets Source: New Energy Finance, 2007

15 Global Public Market Equity Investments In Clean Energy Hit $10 billions in 2006!! Number of deals in brackets Source: New Energy Finance, 2007

16 Global Asset Financing Of Clean Energy By sector, Source: New Energy Finance, 2007

17 US Clean Tech Regions 2005 Millions of dollars of 2005 clean tech VC investment Source: Cleantech Venture Network

18 Increase In Clean Tech VC Investment By region, Source: Cleantech Venture Network

19 Energy-technology investments As percent of total U.S. venture capital Source: The Economist, 2006

20 Great Prospects For Clean Energy Clean energy trends for 2016 Source: Clean Energy Trends 2007

21 Innovative Investments & HNWIs High-Net-Worth-Individuals (HNWI) Assets by class, F Source: Unlocking values The scope for environmental, social and governance issues in private banking, UNEP FI, 2007

22 Forget Cheap Energy Illustrative Costs Of Emissions-Reducing Technologies Source: The Economist, 2006

23 U.S. Energy Consumption By Fuel (projected), quadrillion BTU Projections Liquids Natural Gas Coal Nuclear Hydropower Renewable excluding Hydro Source: Energy Information Administration 2007

24 Oil Alternatives Costs and Emissions Fossil fuels with $20 CO 2 price Subsidized biofuels Source: Richard Newell, Resources for the Future

25 U.S. Energy Supply and Consumption Quadrillion BTU, 2005 Source: Energy Information Administration, Annual Energy Review, BTU = kcal = kw.h

26 Transportation Primary Source of Carbon Dioxide Emissions 2200 Transportation Commercial Million Metric Tons Industrial Residential Transportation Source: Energy Information Administration, Annual Energy Review, 2006

27 VC Investments In Energy Generation Exploded in 2005 & 2006 Clea nte ch Ve nture Inve stm e nt by Energy Se gme nt: 2002-Q Energy Efficiency Energy Generation Energy Infrastructure Energy Storage $mm Source: cleantech Group, LLC

28 Financial Map for Biofuels Source: cleantech Group, LLC

29 Financial Map for Hydrogen FORMAT Source: Monitor Group

30 Financial Map for Hydrogen Create the Hydrogen Highway Finance Authority (HHFA) Initiate the Hydrogen Market through the Hydrogen Highway Initiative Clearly Define Government Standards Coordinated with Hydrogen Highway Goals Leverage Federal and State Facilities Transition from Clean to Green (Renewable) Energy Sources for Hydrogen Quantify Societal and Health Benefits Source: Milken Institute

31 Map for Hydrogen Stations Source: Department of Energy, EERE, Alternative Fueling Station Locator, 2006

32 Map for Biodiesel Fueling Stations Source: Department of Energy, EERE, Alternative Fueling Station Locator, 2006

33 Map for E85 Fueling Stations Source: Department of Energy, EERE, Alternative Fueling Station Locator, 2006

34 Major barriers to CTL (Coal-to-Liquid) Fuels Abundance of US coal reserves Source: The New York Times

35 Panelists slides Financing the Clean Tech Revolution Christopher Ailman Chief Investment Officer California State Teachers Retirement System (CalSTRS)

36 Who are we? California Educators (K-12 and community colleges) Assets - $165 Billion Largest teachers retirement system in the country 800,000 members and benefit recipients 93 year old pension system Source: CalSTRS

37 Our Mission Securing the financial future and sustaining the trust of California s educators Source: CalSTRS

38 CalSTRS takes a Portfolio Wide Approach PRIVATE EQUITY CORPORATE GOVERNANCE REAL ESTATE PUBLIC EQUITY Source: CalSTRS

39 Alternative Investments In 2004 formed the CalSTRS Clean Tech Advisory Board with industry leaders Initially allocated $250 Million CalSTRS & CalPERS co-hosted a Clean-Tech conference in San Jose on March 29, Over 320+ in attendance In concert with Cambridge Associates research the universe of managers and commence due diligence Source: CalSTRS

40 Current Commitments of $215 Million NGEN Partners: venture investments in companies with strength in material sciences Vantage Point CleanTech: new technologies addressing resources needs in energy, water and materials industries HgCapital: wind farms New Energy Capital: renewable energy Source: CalSTRS

41 Real Estate Audited the energy use in all our office buildings. Promoted the Energy Star program with each property manager. Joined a national energy challenge among office property investors. Testing a water saving device for assets with significant landscaping. Source: CalSTRS

42 Public Equities Allocated $350 million to 4 investment managers that focus on environmental tack records in their stock selection. Included environmental exposure in our emerging markets risk factors Request that our investment managers become informed on the issue and include climate change as a risk factor Source: CalSTRS Ask our investment managers to raise the level of analysis on the opportunity and risk assessment with Wall Street analysts and Credit Rating Agencies.

43 Corporate Governance Climate Risk Disclosure Initiative develop investor standard for corporate climate risk disclosure. Participating in the Carbon Disclosure Project (involving 1,800 largest companies) Source: CalSTRS

44 Investor Network On Climate Risk Two dozen leading U.S and European investors with $3 trillion in assets At UN Investor Summit in 2005 announced 10-point action plan including: Investing $1 billion in companies with clean tech Rank 100 of the world s largest companies on their actions for reducing climate risk Require investment mgrs to describe strategies for assessing risks Source: CalSTRS

45 Panelists slides Financing the Clean Tech Revolution Raj Altluru Managing Director Draper Fisher Jurvetson

46 Draper Fisher Jurvetson Early Stage Technology Venture Capital Source: DFG

47 The DFJ Network Source: DFG

48 DFJ s Cleantech Portfolio Source: DFG

49 Panelists slides Financing the Clean Tech Revolution Northon Melo (Moderator) Director, Cleantech Practice Calyon Securities

50 Financing The Cleantech Revolution Christopher Ailman Chief Investment Officer California State Teachers' Retirement System (CalSTRS) Martin Eberhard Co-Founder and CEO Tesla Motors Raj Atluru Managing Director Draper Fisher Jurvetson David Pearce President and CEO Miasolé Rodrigo Prudencio Partner Nth Power Northon Melo Director, Cleantech Practice Calyon Securities Credit Agricole Group

51 The Crédit Agricole Group World s 6 th largest bank 55 Countries

52 Cleantech Expertise Commodity and financial brokerage 60 exchanges, 16 offices Global research 27 analysts 35 stocks & growing 13 in-depth thematic Global & Broad Cleantech Practice Thematic cleantech research Private equity & venture capital

53 Solar Biofuels

54 Wind Energy Efficiency

55 Advanced Storage & Fuel Cells Cleantech Primer

56 World Energy Consumption Quadrillion Btu 800 History Projections OECD Non-OECD Source: International Energy Outlook EIA 2006

57 US Energy Consumption by Source Quadrillion BTU, 2005 Nuclear 8% Renewable 6% Source: International Energy Outlook EIA 2006 Fossil Fuels 86%

58 Selected Global Growth Rates 2006 Biodiesel Energy Efficiency Clean Coal Advanced Storage 1.7 GW 15.2 GW 13.5 Bln Gallons Source: Solarbuzz, Global Wind Energy Council, Renewable Fuel Association.

59 Global Investments in Alternative Energy ($ in Bln) Source: New Energy Finance

60 Methods of Financing (2005, $ in Bln) Venture Capital & Public Markets Corporate R&D Govt R&D Technology & Equipment Asset Finance Small-scale Projects Total Investment Private Equity Source: New Energy Finance

61 Public Markets Capital Raising ($ in Mln) 8, , ,000 2, Source: New Energy Finance IPO Secondary Convertible and other

62 Panelists slides Financing the Clean Tech Revolution David Pearce President and CEO Miasolé

63 Source: Miasolé Miasolé s s Financing Roadmap

64 Miasolé s Solar Paradigm Shift 156mm silicon replacement Thin-film Cells Flexible Modules Building Integrated Photovoltaic Benefits Cost & Simplified Assembly Cost & New Applications Competes with Grid $0.06-$0.10/kWh Source: Miasolé

65 Venture Investors Miasolé Source: Miasolé DAG Ventures Pinnacle Ventures New Island Capital

66 Historical Financings Date Raise Lead Investor Nov 2001 $1.5M Management Feb 2004 $5.4M Vantage Point Ventures Jun 2005 $16.0M Kleiner, Perkins Oct 2006 $35.0M 4 new VCs plus existing VCs Source: Miasolé $10M warrant based equipment financing $5M non-warrant based general credit line $20M federal grant in process

67 Potential Future Financings Pre-IPO mezzanine round ~ $50-75 million Initial Public Offering $100 - $300 million Variety of non-equity options Equipment financing Bank working capital lines Federal loan guarantees Offshore capital grants State or local development bonds Source: Miasolé

68 Panelists slides Financing the Clean Tech Revolution Rodrigo Prudencio Partner Nth Power

69 Nth Power VC firm committed to energy technology since 97 Experienced over 35 portfolio investments $400 million under management Broad view across energy technologies Backed by financial investors and key strategic corporations Recent exit: Comverge (COMV) Source: Nth Power

70 Energy: Technologies and Markets Advanced Materials Energy Infrastructure Efficiency Industrial Tech Oil Gas Power Services Clean Fuels DG/ Renewables Consumer Devices Source: Nth Power

71 Energy and Total VC $3,000 U.S. Energy VC Investments, (in Millions of US Dollars) 10.00% $2,500 $2,000 Annual Energy VC Investments % of Total US VC $2, % 8.00% 7.00% 6.00% $1,500 $1, % $1,000 $500 $0 $932 $966 $741 $566 $547 $468 $128 $161 $15 $ % 3.00% 2.00% 1.00% 0.00% Source: Nth Power

72 Average and Median Investments Median and Average US Investment Per Energy VC Deal (in Millions of US Dollars) $16.82 Median US Investment per deal Mean US Investment per Deal $17.08 $10.63 $11.37 $11.23 $2.87 $4.74 $6.25 $8.20 $6.68 $6.00 $8.31 $3.65 $6.21 $6.40 $8.52 $7.10 $ Source: Nth Power

73 Investments by Subsector 2006 by Sub Sector Transportation 40% Distributed Energy 24% Materials &Nanotech 6% Power Reliability 11% Related Services 2% Energy Intelligence 20% Source: Nth Power

74 Investments by Subsector: Distributed Energy $500.0 $450.0 $400.0 Distributed Energy Investments Fuel Cells Hydrogen Solar Engines $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $- Source: Nth Power

75 Investments by Subsector: Energy Intelligence $500.0 $450.0 $400.0 Energy Intelligence Investments Sensors Metering Grid Management End Use Management IT & Software $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $ Source: Nth Power

76 Investments by Subsector: Power Reliability Power Reliability Investments $200.0 $180.0 $160.0 Power Quality Flywheels Super Capacitors Batteries $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $ Source: Nth Power

77 Portable Power $140.0 Portable Fuel Cells v. Batteries Fuel Cells Batteries $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $ Source: Nth Power

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