Framework for Clean Technologies in China
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Dr. Patrick Berbon gave a presentation about clean technologies in China. He discussed China Materialia, a venture capital firm based in Shanghai that invests in cleantech startups. The presentation covered successful implementations like reducing acid rain and hybrid vehicles. It also discussed opportunities and limitations in clean energy, as well as China's fuel mix and the potential for green jobs. Dr. Berbon encouraged the audience to position themselves to take advantage of opportunities in clean technologies.
Framework for Clean Technologies in China
- 1. Green Drinks August 2011 Dr. Patrick Berbon Framework for clean technologies in China Looking to invest in teams with solutions 遨问) 遨问 China Materialia (遨问 Shanghai and Wuxi, China California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 2. Dr. Patrick Berbon Engineering degree Ecole Centrale Lyon, France, Tsinghua University, Beijing, China Ph.D. Materials Science, USC, Los Angeles Aerospace research Rockwell Start-up in Nanotechnology Technology Transfer / Innovation / Performance Improvement Clean Technologies Shanghai and Wuxi, China California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 3. Successful Implementations • Acid Rains （酸雨） • Hybrid electric vehicles （混合动力车） California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 4. Acid Rains and Catalytic Converters (酸雨 和 催化转换器) Mainly sulfonic acid and nitric acid formed when sulfur dioxide (SO2) and nitrogen oxides (NOx) react with water and oxygen in the atmosphere. These pollutants come from primarily manmade activities: burning of fossil fuels for cars, power plants and buildings. The issue was tackled by using catalytic converters in cars and scrubbers in power plants. Acid rains were critical to build awareness to environmental damage done by population growth and un- checked industrial production. EPA regulations under the Clean Air Act. California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 5. Hybrid vehicles (混合动力车) Fastest growing segment of US vehicle market; Toyota and Honda have taken an early lead. US manufacturers working hard to catch up (on Your dime); Note that the 800K Toyota Prius in the US save about 2.3M tons CO2 / year, equivalent to ONE coal plant! “Some firms, in the process of addressing climate change, will find opportunities to enhance or extend their competitive positioning by creating products (such as hybrid cars) that exploit climate-induced demand”, Michael Porter and Forest Reinhart, “A Strategic Approach to Climate”, Harvard Business Review, October 2007. The Honda Civic Hybrid engine features i- VTEC and IMA (integrated motor assist) technology, enabling electric motor run. Presented by Honda Motor Senior Managing Director Motoatsu Shiraishi. California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 6. China Materialia is a Shanghai-based Venture Capital Investment and Innovation Advisory Company Venture Capital Venture Capital Advisory Investment Shanghai Yangpu Venture International Technology incubation Transfer Incubation Center California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 7. China Materialia Venture Capital Fund is dedicated to helping foreign companies to grow in China market 150 million RMB (~ $23 million), $ 2-3 million per investment At least 50% of the Fund will invest in Sino-foreign joint-ventures with international technology companies Core industry focus Advanced materials and enabled applications Clean-tech/Energy Electronics and controls Medical devices California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 8. Why you would be interested in China – lower cost, bigger market, more capital Availability of capital Technology content Maximize Value Cost of commerciali of zation Innovation Market potential California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 9. Clean Energy Limitations – Policy Decisions / Economic factors（局限性－政策规定／经济因素） • Need adoption of international conventions; • Entrenched large businesses and government administrations; • Complexity of Intellectual Property positions as many new clean technologies are at the cross-roads of various technological fields; • Renewable energy projects require large capital expenditures (pay for fuel upfront); • Investors not yet convinced of good ROI; California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 10. Marginal Cost of Abatement（减少的边际成本） California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 11. Marginal Cost of Abatement（减少的边际成本） 50 Cum Gt CO2 eliminated €/t CO2 0.50 1.0 1.5 2.0 2.5 3.0 3.5 4.0 0 -50 Fridges / freezers Retrofit facade -100 Appliances -150 Lighting A/C Water heating Retrofit Building envelope floor/roof Heaters -200 Washers/ dryers Retrofit floor/ roof Windows Other (slide from Marc Porat, investor, California) New-build insulation appliances …many are green building materials & technologies California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 12. International agreement – Fundamental issue COP 16: ONE FUNDAMENTAL ISSUE US 20 tons CO2 / year / person China 1 ton CO2 / year / person California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 13. World emitters: Everyone! US and Germany due to energy intensity, China and India due to size of population, Russia due to oil and gas, Brazil and Indonesia due to burning of the rain forest. California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 14. Fuel Mix for Electricity Generation in the US in 2007 （２００７年美国发电的类型） Total generation 4,200 BkWh (AIE Outlook) California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 15. Fuel Mix for Electricity Generation in China in 2007 （２００７年中国发电类型） Total generation 3,042 BkWh (source: US EIA) California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 16. Fuel Mix for Electricity Generation in the World 2006 （２００６年全球发电类型） Total generation 18,930 BkWh (source: IEA) California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 17. Fundamental Opportunity – Green Jobs （清洁能源的机会－绿色工作） “Some firms, in the process of addressing climate change, will find opportunities to enhance or extend their competitive positioning by creating products (such as hybrid cars) that exploit climate-induced demand”, Michael Porter (2007). Thomas L. Friedman, NY Times foreign affairs columnist, “Mr. Conventional Wisdom”, author of “The World is Flat” (2005) and “Hot, Flat, and Crowded” (2008). President Barack Obama speeches and stimulus package (2008 and 2009). California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 18. Your Opportunity – You (你的机会 - 你自己) • LOTS OF opportunities; • HUGE opportunities; • Position YOURSELF; • Vinod Khosla: “This is bigger than the internet” • Mark Porat: “Of the next 10 Google, 8 will be in cleantech” California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 19. We look for technology solutions to large pain-points in the marketplace, coming with a solid team and a business model Market Pain Validated market opportunity Growing at > 30%/yr in China LARGE pain- Technology point in the Technology Solution marketplace in SOLUTIONS China Technology solution Target Beyond proof-of-concept and projects beyond small-scale trial Business model Business model showing you can solve the problem at a profit Profittable, Capital efficient, Return < $2 M to reach significant potential milestones and first sale California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 20. What we would like to see in your proposal • Problem What is customer pain that your technology addresses Outline how the customer addresses the issue today • Solution Describe your technology and your products line-up Describe your IP Demonstrate your value proposition to the customers Your product development roadmap • Market Size Identify/profile the customer you cater to Estimate of market size and what do you believe as market potentiaal • Competition List competitors List competitive advantages of your technology and products
- 21. What we would like to see in your proposal • Why Now Set-up the historical evolution of your category Define recent trends that make your solution possible • Business Model Revenue model Pricing Average account size and/or lifetime value Sales & distribution model Customer/pipeline list • Team Founders & Management for US company and for the Chinese entity Board of Directors/Board of Advisors
- 22. Your Opportunity – The Future is Here（机会－未来就在这里） • 4/2009: Abengoa Solar puts the largest Concentrated Solar Tower into operation near Seville, Spain; • Meet the PS20: 20 MW, 1,255 heliostats, 531 ft tower; California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China
- 23. Merci pour votre attention. Thank You for your attention. 谢谢大家. Dr. Patrick Berbon 187-6262-4010 (China) California Clean Technologies, San Francisco, California, and China Materialia, Shanghai, China