Konarka Technologies, Inc. From Light to Power Enabled by Nanotechnology Innovator of polymer photovoltaic products in a variety of form factors for commercial, industrial and consumer applications Flexible Lightweight Indoor/Outdoor September, 2003 Mission-Designed Low cost © 2003, Konarka Technologies, Inc. September, 2003 Financing Completed $13.5 Million B round, Fall ‘02 Lead: Draper Fisher Jurvetson ~ $18 million in total financing to date Late 2004 C Round Mid-stage institutional equity investors 2 © 2003, Konarka Technologies, Inc. September, 2003 Experienced Leadership and Technical Excellence 30 years as executive with extensive marketing and technology leadership; Western Electric, Motorola, Hadco, Sanmina-SCI Dr. Bill Beckenbaugh President and CEO Randolf Chan Dr. Russell Gaudiana Dr. Erhard Glotzl Howard Berke VP VP Managing Director Kevin McGuire VP (Acting) of Manufacturing and Research and (acting) Controller Business Engineering Development Konarka Austria Development 16 years in high 28 years in R&D CEO volume graphics 20 years in financial leadership in Linz AG and electronics management in high technical coatings Electricity and Gas Avery Dennison, volume electronics 36+ Patents regional utility Raychem, E Ink 3 © 2003, Konarka Technologies, Inc. September, 2003 Expert Advisors 15 world-class technical advisors, including: Dr. Alan Heeger, Nobel Laureate, all-polymer PV Dr. Michael Graetzel, EPFL, dye-based cells Dr. Alan Bard, University of Texas Dr. Serdar Sariciftci, Linz Inst. for Organic Solar Cells Dr. Jack Hanoka, CTO-Evergreen Solar Dr. Elliot Berman, founder SPC, CTO-Arco Solar Dr. Merrill Cohen, GE (retired) Dr. Jayant Kumar, University of Massachusetts Dr. Joan Vrtis, Rose Street Labs, Intel Dr. Frank Shemansky, Consultant, Orchid BioSciences, Motorola, Bruce Anderson, IGNITE! Startups Paul Wormser, Consultant, PV Products Market 4 © 2003, Konarka Technologies, Inc. September, 2003 People & Skills Board of Directors Raj Atluru Partner, Draper Fisher Jurvetson, Redwood City, CA Director / Comp Dr. Bill Beckenbaugh President, CEO, Konarka Technologies Director / Audit Howard Berke 25+ year Executive & Founder of 12 technology Chairman / Audit / Comp companies Dr. Alan Heeger Nobel Laureate in Chemistry for conducting polymers Director in OLEDs and photovoltaics (2000), Uniax founder, University of California Bic Stevens Managing Director, Zero Stage Capital, Cambridge, Director / Audit / Comp MA 5 © 2003, Konarka Technologies, Inc. September, 2003 Organization Operating Structure Konarka Technologies, Inc. Headquarters Business Development Product Development Pilot Manufacturing Cell Process Optimization Form Factor Development Konarka AG (Switzerland) Konarka Austria GmbH Business Development Polymer Cell R&D Focus Technology Liaison Third Party R&D Cost Sharing-EU EU R&D Funding / Grants 6 © 2003, Konarka Technologies, Inc. September, 2003 Global Demand for Energy 100,000 Wh) k ( a it U.S. p a c r 10,000 Global Average (2050 Target) ion pe pt Minimum Consumption China um (2050 Target) ns 1,000 o C y it India ic r t c e l E 100 1985 1990 1995 2000 2005 2010 2015 2020 2025 Year 7 Source: EPRI, US DOE 2000 © 2003, Konarka Technologies, Inc. September, 2003 Photovoltaics (“PV”) The conversion of light into electricity Silent, no maintenance, no fuel, no emissions The lowest cost option for remote applications Recognized as part of the solution to the global need for electricity and clean energy Generator of Choice for >2 billion people Option for all of us 8 © 2003, Konarka Technologies, Inc. September, 2003 Markets & Applications PV Production in Megawatts Representing a global market of $7 Billion 520 Rest of World 550 390 500 Europe 450 Japan 288 400 United States 350 201 300 Total 155 250 126 60 69 78 89 200 34 40 47 55 58 150 100 50 0 8 0 2 4 6 8 0 2 8 9 9 9 9 9 0 0 9 9 9 9 9 9 0 0 1 1 1 1 1 1 2 2 35% growth – 2001 to 2002 9 Source: PV News, Paul Maycock, editor © 2003, Konarka Technologies, Inc. September, 2003 Goals and Strategy Konarka’s Story What: Energy conversion of light Æ electricity Based on nanomaterials and conductive polymers High-speed roll-to-roll manufacturing on plastic & metal foils Unique product benefits for new applications Why: Growing existing market / enable new markets World market solar industry CAGR > 35% Who: Superior team 31 staff, 15 advisors, experienced Board How: Blocking and enhancing IP 20+ patents issued and pending Supporting IP from UMass (exclusive), EPFL (sole US licensee), JKU- Linz (exclusive) Strategic investors & partners - Chevron Texaco and Eastman Chemical 10 © 2003, Konarka Technologies, Inc. September, 2003 Technology & IP PV Technologies Crystalline Silicon on Glass 1st generation (developed in the 70s) semiconductor wafer in glass, complex manufacturing process Thin Film (majority on glass) 2nd generation (developed in the 80s) requires low-pressure, high-temperature film deposition, expensive packaging, complex manufacturing process Polymers & Nanomaterials 3rd generation (developed in the 90s) uses photoactive dyes, conducting polymers, high- speed manufacturing process at low temperature, low cost materials, scaleable 11 © 2003, Konarka Technologies, Inc. September, 2003 Photovoltaic Nanotech Companies Nanosolar – nanoparticles (20 - 40nm) Titania - dye sensitized Hitachi-Maxell Titania – dye sensitized Nanosys – quantum dots (<10nm) CdSe, PbS Evident Technologies – quantum dots (<10nm) CdSe, PbS 12 © 2003, Konarka Technologies, Inc. September, 2003 Technology & IP KTI’s Vision: Light-weight, Flexible Photovoltaics Plastic Transparent Conductor Active Layer 0.010 inches Counter Electrode Plastic or Metal foil 13 © 2003, Konarka Technologies, Inc. September, 2003 Dye Cell Principle of Operation Transparent Conductor TiO2 Dye Electrolyte Cathode Injection S* -0.5 Maximum voltage 0.0 hυ vs NHE (V) E Red Ox 0.5 Mediator Interception Diffusion 1.0 So/S+ 14 © 2003, Konarka Technologies, Inc. September, 2003 SEM of Nanostructured Titania 15 © 2003, Konarka Technologies, Inc. September, 2003 Technology & IP Polymer Cell Schematic Transparent substrate Transparent substrate Light 16 © 2003, Konarka Technologies, Inc. September, 2003 Technology & IP Fullerenes Carry Electrons Fullerenes are carbon molecules Electrons can freely move around the molecule and “hop” to adjacent fullerene Fullerene (60 atoms of carbon) 17 © 2003, Konarka Technologies, Inc. September, 2003 Technology & IP Fullerene / Polymer Function 18 © 2003, Konarka Technologies, Inc. September, 2003 Increasing Performance: Matching the Solar Emission 1. Increase absorption • Higher absorption coefficient; Higher charge carrier mobility 2. Shift of the absorption to red • Low Band Gap Polymers 19 © 2003, Konarka Technologies, Inc. September, 2003 Technology & IP Complementary Materials Platforms Dye-Sensitized Conducting Titania Hybrid Polymers (Go-To-Market) (R&D) 20 © 2003, Konarka Technologies, Inc. September, 2003 Dye vs. Polymer Attributes Dye Polymer Efficiency + Absorbs broad spectrum - Low efficiency (today) + Thin (but absorbs more light) - Too thin to absorb all light + High electron mobility + Potential for multi-layer junctions Lifetime > 10 years Undetermined Cost - Multiple coating steps + Single layer (no catalyst or - Catalyst cost electrolyte) + Single coating step Features +Thin +Thin + Light weight + Light weight +Flexible + Increased Flexibility + Colors (sacrifice efficiency) + Unique form factors 21 © 2003, Konarka Technologies, Inc. September, 2003 Choice of Materials & Process Material Purpose Advantage Disadvantage TiO2 Absorb light, Semiconductor, Only works with UV convey abundant, low electron cost Dye Absorb light, Bonds to TiO2, Too thin to absorb inject electron absorbs broad all available light into TiO2 spectrum of light Nanoscale TiO2 Increase Commodity (low Requires sintering surface area cost) 100x 22 © 2003, Konarka Technologies, Inc. September, 2003 Product Attributes CostCost Flex FormForm Trans-Trans- ColorColor WeightWeight Indoor,Indoor, FactorFactor missiomissionn OutdoOutdooror Eff Use Konarka 3rd generation Thin Films 2nd generation Crystalline 1st generation Signifies significant competitive advantage Signifies moderate competitive advantage Signifies distinct disadvantage 23 © 2003, Konarka Technologies, Inc. September, 2003 Features Open Opportunities Increasing capability and opportunity 2001 TAM Battery 2010 TIM Char ging 24 TAM per PV Ne Off-Grid Residential id r 40 MW Disposable ff G ws; TIM per EPIA Forecast (Mil. By KTI) Military 200 Portable Electronics Distributed DC Grid 10 MW Industrial O Distributed AC Grid 25 50 MW 400 100 MW 700 300 MW © 2003, Konarka Technologies,1200 Inc. September, 2003 First Products 25 © 2003, Konarka Technologies, Inc. September, 2003 Markets & Applications Portable Applications Personal LAN Appliances Self-charging battery Wireless instrumentation 26 © 2003, Konarka Technologies, Inc. September, 2003 Military / Civil / Emergency Wearable Power Flexible Light-weight Charger PowerCloth™ 27 © 2003, Konarka Technologies, Inc. September, 2003 Technology & IP Conductive Core Dyed, sintered Titania Solid State Electrolyte Product Vision- Transparent Cathode Photovoltaic Fibers* Transparent Insulator POS NEG POS *Patents applied for in 2002 NEG POS NEG 28 © 2003, Konarka Technologies, Inc. September, 2003 Coating Production Process Applicable to all Materials Platforms “Roll-to-roll” on plastic Continuous coating Utilize existing plants