Ohio Energy Luncheon Keynote: The Energy Revolution Accelerating Clean Energy Technology & Innovation in the Midwest Erik G. Birkerts, Chief Executive Officer, Clean Energy Trust, Chicago, IL Tuesday, February 20, 2018 12:30 p.m. to 1:15 p.m.
Biographical Information Erik G. Birkerts, Chief Executive Officer Clean Energy Trust 20 North Wacker Drive, Suite 734, Chicago, IL (224) 554 9137 erik@cleanenergytrust.org Erik Birkerts has over 25 years of operational and general management experience, including project financing and strategy development for energy efficiency and clean technology companies. Erik is CEO of Clean Energy Trust, responsible for leading the overall organization in its mission of fueling clean energy innovation and commercialization. Birkerts has been on the senior management teams for two IPOs of venture capital backed companies, including serving as Executive Vice President and Chief Operating Officer of publicly-traded Orion Energy Systems as it scaled from $12 million in revenues to over $80 million. Erik currently serves on the Board of Directors for Milbank Manufacturing, the largest manufacturer in the U.S. of electrical metering housings and related equipment, including electric vehicle charging equipment and smart grid technologies. Erik also serves as a senior advisor to Metrus Energy (energy efficiency finance), and a board observer for Aker (precison agriculture), GoElectric (smart grid), SiNode Systems (advanced materials), Nexmatix (industrial efficiency) and Intellihot (energy efficiency). Erik is the lead author of the CalCEF report Leveraging Impact Investment for Small and Mid-Size Commercial Energy Efficiency Projects. His work has also been featured in The Deal, Mergers & Acquisitions, The Daily Energy Report, Chicago Tribune, Chicago Sun Times and cited by the USDA. He guest lectures at the Booth School of Business at the University of Chicago and at Northwestern s Kellogg School of Management. Erik earned his MBA at the University of Chicago Booth School of Business and his BA with honors in Economics and International Relations from Tufts University. Page 1
Investments Clean Energy Trust makes direct investments, provides venture development services, and works to strengthen the Midwest ecosystem Venture Development Services THE 501VC MODEL Ecosystem Building
Source: GTM Researc
Types of innovation Required Capital Investment Business Model Software Hardware Foundation al Time To Market
Types of innovation Time To Market Required Capital Investment
The Journey to Market
The Challenges Encountered PRIMARY BARRIER FOR CLEANTECH COMPANIES 45% Access to Funding 17% Access to Customers 14% Proof of Product 3% Operating Costs 7% High Capital Costs 2% Lack of Standards 5% Lack of Public Procurement 7% Regulatory Uncertainty Source: The Handbook of Research on Energy Entrepreneurship
SECTOR SPENDING ON R&D AS % OF SALES Pharmaceutical s Computers & Electronics The Energy industry invests less than 1% of sales in R&D Software Aerospace Energy <1%
Venture capital has stepped away $6B 5 4 3 2 1 US Clean Energy Venture Capital Investment ($B of 2014 USD) Percentage of Total US VC Investment 25% 20 15 10 5 2006 2010 2015 Source: CB Insights
Cleantech Venture Investment Outcomes Venture Investment: A-Round Outcomes (2006 2011) Source: Drs. Gaddy, Sivaram, O Sullivan
Traditional venture capital is the wrong model for most cleantech VCs Require Cleantech Deals Low capital requirements Require significant investment Ability to scale quickly Have long development timelines BUT Short timelines to exits Sell into commodity markets Large payoffs Lack corporate acquirers willing to pay premiums
Critical funding gaps emerge as capital migrates towards later stages and towards software from hardware and deeptech Research Grants Angel & Seed Investment Venture Capital Project Finance Private Equity Debt Valley of Death
A network of entrepreneurial support organizations have emerged to support commercialization Business Plan Competitions Physical Incubator Funding & Venture Development Testing National Lab Access Pilots & Demonstrations
Array of Support Offerings Startup Creation Physical Space Mentorship & Training Research Facilities Capital Lab/Prototype Facilities Accelerator Programs Pilot Testing Facilities Incubation Programs Connections & Access Competitions
It Takes A Village
The Midwest has fertile soil for innovation 3 of Top 5 research institutions in the nation in terms of Science & Engineering Doctorates earned 3 National Labs Top 4 manufacturing states as share of employment WISCONSIN MICHIGAN INDIANA IOWA 6 of Top 25 producing Patent Institutions 28% of Fortune 500 company headquarters
Serving The Midwest CET is the only organization working across the span of the Midwest to support cleantech startups
Investment Portfolio Solar Sun Number (MN) Greenlancer (MI) Energy Access Novomoto (WI) Energy Storage Allcell Technologies (IL) NETenergy (IL) SiNode Systems (IL) Ampy (IL) Design Flux Technologies (OH) Agtech & Bioproduct Aker (IL) Glucan Biorenewables (MO) Built Environment Igor (IA) Intellihot (IL) Transportation SPLT (MI) Idle Smart (KS) FGC Plasma (IL) Energy Management Agentis (IL) Metergenius (IL) Water Technologies PowerTech Water (KY) Lotic Labs (IL) EP Purification (IL) Advanced Manufacturing Nexmatix (MO) NuMat Technologies (IL) Advanced Grid GoElectric (IN)
May 23 rd : New Investments Unveiled Co_Invest Cleantech Keynote speakers: Governor Jennifer Granholm, 2-Term Governor of Michigan Ryan Popple, CEO, Proterra
Breakthrough Innovations Required to Keep Warming Below Critical Thresholds Technological innovation will be required to remove 70 GtCO 2 per year by 2050 to stay below the critical 2 C warming threshold 70 50 GtCO 2 e 30 10 34 CURRENT TREND 48 TARGET 80 10 Scaling Up Existing Technologies & Incremental Innovations Breakthrough Innovations 1990 2010 2050 Source: Breakthrough Energy Ventures
Technologies With Potential to Reduce 1/2 Gigatons of Greenhouse Gases Annually
If All Else Fails
Thank you! Erik G. Birkerts CEO CLEAN ENERGY TRUST erik@cleanenergytrust.org (224) 554.9137 cleanenergytrust.org