60HertzEnergy.com Piper Foster Wilder, Founder

Transcription

1 60HertzEnergy.com Piper Foster Wilder, Founder

2 All images by Nathaniel Wilder

3 WHAT IS A MICROGRID? Alaska: World leader in renewable-diesel grids

4 Diantha

5 Ron

6 COMPANY VISION Connect capital to need Address energy poverty Reduce diesel consumption by 30% Extend asset life by 1/3 Norak

7 PRODUCTS 1 PROJECT FINANCE FOR RENEWABLE INFRASTRUCTURE 2 SOFTWARE FOR ISLANDED GRID OPERATORS

8 Engineering, Procurement, Construction (EPC) partners 60Hertz does not engineer 60 Hertz will partner with blue-chip engineering firms who can design template solutions for rural sites, provide a performance guarantee, and manage procurement and construction.

9 MARKET TRACTION: LOANS 15 applications received in first 30 days $33MM in deal flow $10MM in private equity

10 SAMPLE PROJECT: BIOMASS FOR AMBLER, ALASKA Loan made from $10MM Project Finance Fund Biomass for Ambler, AK Loan Requested: $464,267 Saves annually: $38,676

11 MARKET TRACTION: 6 VILLAGE OPERATOR SOFTWARE PILOTS IN 2018 MVP Pilot Partners Back Next

12 IMMEDIATE FOCUS: MARKET SIZE $47B GROWTH:

13 ANALYSIS OF THE COMPETITION Blended portfolio of sites Acts as integrator Innovative/diverse capital stack Risk mitigation mechanisms Human-centered Icon based Culturally appropriate Serves developing country markets

14 TEAM Piper Foster Wilder CEO Deputy: Renewable Energy Alaska Project; VP Amatis Controls; German Chancellor Fellow Whitney Gantt COO Grameen Foundation UN Int l Fund for Agricultural Development; Tonya James VP Business Founder, YK Energy US veteran; Calista Shareholder Kathy Cronen CFO Charter North Star Health Care Alaska Pacific University Danny Powers Analyst White House; ARENA fellow Cold Climate Housing Resource Center Laura Wilcox Technical Manager Marine Diesel Engineer; 15 years as Chief Engineer ocean vessels Anthony Lekanof Business Associate Director, St George Tanaq Corp; Aleut Shareholder

15 BUSINESS MODEL: HOW DO 60HERTZ INVESTORS EARN REVENUE? Project Finance Development fee: 7% Management fee: 2%/yr Finders fee paid by EPC firms: 1%/ deal Software Solution Software License: $2,500 $50,000 based on client size Training and configuration fee: $1,300 - $26,000 Exit: Sell to

16 FINANCIALS Key financials $5.5M 2020 revenue $195K raised + prizes $750,000 now raising $10MM private equity for Fund $13.8MM tax credits available in Fund One 10,000 through Indiegogo by Dec 13th

17 INCREASING POWER REDUCING DEPENDENCE 60hertzenergy.com Diantha, Point Hope

18 Appendix

19 Risk Mitigation on Default Risk Assessment Credit underwriting examines: 5Cs of Credit + DCRA s capacity matrix 990s if available Quick ratio; debt: equity ratio; Cash on hand; 8a SocioEconomic underwriting examines: Local Government Specialist review Diesel loan repayment history Village council vs City Council politics Demographics: population; school enrollment Climate threat (relocation) PCE history: Utilization: 100%? 3 year-lookback of filing Value of subsidy Age, condition, maintenance of existing generators Default Risk Mitigation Separate dropdown LLCs per project Reduce risk of portfolio loss Contain default if occurs Administrative ease Direct Deposit all monthly payments Stretch delinquent claims to 90 days Follow DCRA s collections approach Loan Guarantee from Philanthropic entity Gates Foundation, etc. Annuitize operating losses Sell to equity partner with excess profits and tax liability Pledge PCE or Community Revenue Sharing 60Hertz O&M Software Diverse basket of sites Energy Investment Trust : REIT

20 Conducted user research to design a human oriented solution to A Unique Solution for complement operators innate ingenuity and capacity Unique Users We interviewed 48 people in Alaska and Canada at: 6 Commercial entities 7 Multi-site utilities 6 4 Village power plants Research institutes 7 Government & non-profit services providers 60Hertz Microgrids

21 PROJECT FINANCE FUND EXAMPLE: POWER PURCHASE AGREEMENT Kwethluk Solar Microgrid 400 KW Total Capital Cost $2,123,240 Solar: $4/watt Inverter: $120/kWh cap BESS: $500/kWh storage Diesel Reduction 28% Solar contribution to grid 40% PPA Type PPA duration Max PPA Contract Price per kwh Cost savings over term Levelized Cost of Electricity Leveraged Partnership Flip 25 years $0.36 ct/kwh $0.16 ct/kwh $0.29 ct/kwh

22 Summary Graphic