Next Generation Cleantech Doing Even More, With Even Less… …Costs …Resources …Damage to our Air, Water, and Land January 2018 The Original and Trademarked Cleantech Idea/Theme is Still Relevant Clean is more than green. Clean technology, or “cleantech”, should Cleantech spans many not be confused with the terms environmental technologies or industry verticals and is “green tech” popularized in the 1970s and 80s. Cleantech is new defined by the following technology and related business models offering competitive eleven segments returns for investors and customers while providing solutions to global challenges. Where greentech , or envirotech, represents the ▪ Energy Generation highly regulatory driven, “end-of-pipe” technology of the past with ▪ Energy Storage limited opportunity for attractive returns, cleantech is driven by ▪ Energy Infrastructure market economics therefore offering greater financial upside and ▪ Energy Efficiency sustainability. ▪ Transportation The concept of cleantech embraces a diverse range of products, ▪ Water & Wastewater services, and processes across industry verticals that are ▪ Air & Environment inherently designed to, ▪ Materials ▪ Manufacturing/Industrial ▪ Provide superior performance at lower costs ▪ Greatly reduce or eliminate negative ecological impact ▪ Agriculture ▪ Improve the productive and responsible use of natural ▪ Recycling & Waste resources 2 Living on Borrowed Time: Old Industries are on Notice Hard to find an incumbent company or established industry which is not exercised by what an enduring (sustainable) future looks like. Trillions of $’s of market value are at stake. That is why we are all here, no? Transportatio n & Logistics Industrial & Resources & Manufacturin Environment g Energy & Materials & Agriculture & Power Chemicals Food 3 A Perfect Storm of Systemic Innovation? How to deal with the potent mix of opportunity, threat and disruption, from a series of convergent drivers and accelerators? “Cleaner” is an important one, but does not sit “stand-alone”. Transportatio n & Logistics Industrial & Resources & Manufacturin Environment g Energy & Materials & Agriculture & Power Chemicals Food 4 Transport: ready for such a Perfect Storm in the 2020’s? Could such change and disruption in the Transport sector “drag along” and accelerate change in other segments – like Energy and Power? Transportatio n & Logistics 5 Transport: ready for such a Perfect Storm in the 2020’s? Could such change and disruption in the Transport sector “drag along” and accelerate change in other segments – like Energy and Power? Transportatio n & Logistics 6 Transport: ready for such a Perfect Storm in the 2020’s? Could such change and disruption in the Transport sector “drag along” and accelerate change in other segments – like Energy and Power? Transportatio n & Logistics 7 A Perfect Storm of Systemic Innovation? How to deal with the potent mix of opportunity, threat and disruption, from a series of convergent drivers and accelerators? “Cleaner” is an important one, but does not sit “stand-alone”. Transportatio n & Logistics Industrial & Resources & Manufacturin Environment g Energy & Materials & Agriculture & Power Chemicals Food 8 AI impacts across the entire energy and power value chain Project development/ Transmission & Consumption/ Retail Generation Customer acquisition Distribution Energy ▪ Marketing and sales ▪ Predictive maintenance ▪ Grid optimization ▪ Optimized building of DER of generation assets ▪ Microgrids and VPP management ▪ Meteorological ▪ Performance management ▪ Smart home models for optimized improvement ▪ Storage-based flexibility ▪ Consumption asset location ▪ Intermittency forecasts ▪ Predicting demand Disaggregation ▪ Optimized design and ▪ Distribution Automation ▪ Transactive Energy Key use Key use cases engineering and Control (DMS) Example Example Innovator 9 Our Blockchain in Energy And Industry Time-Line: Warming Up For the 2020’s $3m pre-ICO $34m ICO $500k $3m Series A seed $7.6m €3m $29m pre-ICO $5m $2m $4.5m Investments 2015 2016 2017 $2.5m private coin offering Partnerships 10 Space: the next Frontier and Platform for Next Generation Industries? AI Decentralization Advanced Reusability Manufacturing Innovation in many of the ‘next-gen’ areas we examine is driven by a convergence of several underlying key drivers/enablers. • Satellite Networks: Smarter, Cheaper, Reusable? • Geospatial Analytics: Seeing is believing • The Next-Generation: Some manufacturing shifts to space 11 Living on Borrowed Time: Old Industries are on Notice Hard to find an incumbent company or established industry which is not exercised by what an enduring (sustainable) future looks like. Trillions of $’s of market value are at stake. That is why we are all here, no? Transportatio n & Logistics Industrial & Resources & Manufacturin Environment g Energy & Materials & Agriculture & Power Chemicals Food 12 Disruption Intensity: who’s feeling it most right now? where’s the momentum? Utilities exhibit a long, steady burn, but the real intensity in growth rates of open innovation are today found around Transportation & Logistics, and Ag and Food. 2,000 Growth of Innovation Rates and Corporate Reaction Rates 1,800 for Agriculture & Food, Transportation, and Utilities, 2007-2017 1,600 1,400 1,200 1,000 800 600 400 200 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Agriculture Innovation Rate Agriculture Corporate Reaction Transportation Innovation Rate Transportation Corporate Reaction Utilities Innovation Rate Utilities Corporate Reaction 13 Living on Borrowed Time: Old Industries are on Notice How to deal with the potent mix of opportunity, threat and disruption, from a series of convergent drivers and trends – “cleaner” is an important one, but does not sit “stand-alone”. $1.6>$8.7bn (2013-2017) Transportatio n & Logistics $0.6>$4.2bn $1.4>$1.5bn (2013-2017) (2013-2017) Industrial & Resources & $3.7>$2.4bn Manufacturin Environment $0.6>$2.7bn (2013-2017) g (2013-2017) Energy & Materials & Agriculture & Power Chemicals Food $0.9>$0.9bn (2013-2017) Source: Cleantech Group’s Quarterly Investment Monitor, Q4 2017 14 Next Generation Cleantech Doing Even More, With Even Less… …Costs …Resources …Damage to our Air, Water, and Land January 2018 Dry Powder is Returning: a stronger year for cleantech-related fundraising ~€60 million $354 million European Smart Energy software, hardware, energy, automation, life join ~$40 million sciences and chemistry Advanced materials $150 million energy, electronics, robotics, manufacturing, health, and sustainability. ~€106 million biotech, energy Energy technology, clean ‘Dedicated to renewable $191.9 million digital technologies, and chemisty’ World Positive: utility of the future Sustainable Systems, Healthy Living… 2017 Jan Feb Mar Apr May Jun 2017… $400 million Integrated Deployment Qingdao Capital for solutions not Chengtou Haisi $42 million complications Cycle Equity Fund Investing in new mobility €240 million $180 million Energy Transition & , All Things Food. Investing Mobilities of the Future RMB600 million $168.3 million from ‘soil to shelf’ Industrial technology transformative solutions startups for cybersecurity Jul Aug Sep Oct Nov Dec 2018 16 The arrival of the billion dollar club is significant for next generation cleantech Investor Size Investment Orientation/Language Illustrative Portfolio Companies $93 Billion “Enabling the new age of innovation” “achieving social and environmental impact alongside $2 Billion competitive financial returns” TPG Rise Fund “technologies that have the potential to significantly $1 Billion reduce greenhouse gas emissions” $1 Billion “Building clean, affordable and safe cars for everyone” Alliance Ventures “Ensure…standard of living, including basic electricity, healthy $1 Billion food, comfortable buildings, and convenient transportation, First Announced Investments Expected in H1-2018 without contributing to climate change.” “innovation that can disrupt industries and create new €1 Billion markets” Access to “Committed to transforming economies, growing middle class many billions income populations, deepening comparative advantages, and of AUM invest in emerging champions” “promoting equitable diffusion of technology and Undisclosed sustainable modernization ” 17 Next Generation Cleantech Doing Even More, With Even Less… …Costs …Resources …Damage to our Air, Water, and Land January 2018 Next Generations: Significant Change is Afoot “With an estimated $4tn expected to be passed down within a generation in the UK and North America alone, according to a wealth transfer report earlier this year by Royal Bank of Canada, private banks are in a race to retain the millennial children of wealthy families and improve their offerings to entice those in their 20s and 30s to sign up.” “What is very clear to me is that millennials’ values are distinctively focused on making the world a better place, using financial capital for social return, having an impact and supporting sustainable development,” says Burkhard Varnholt, deputy global chief investment officer at Credit Suisse. 19 Next Generations: Significant Change is Afoot “Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society” Excerpt from the annual letter to S&P500 CEO’s from Larry Fink, CEO of the world’s largest asset manager ($6.3 trillion), BlackRock 20 Next Generation Cleantech Doing Even More,