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CleanTech Road Harvesting renewable energy from the roadways for electrical power 24 May 2010 1 an Martin, CEO eresa Kruckenberg, CTO, R&D eoff Gilmore, Product Development iva Veerepalli, Sales & Marketing ryan Clement, CFO and PPA’s

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CleanTech Road. Harvesting renewable energy from the roadways for electrical power. Ian Martin, CEO Teresa Kruckenberg, CTO, R&D Geoff Gilmore, Product Development Siva Veerepalli, Sales & Marketing Bryan Clement, CFO and PPA’s. CleanTech Road. Our Mission: - PowerPoint PPT Presentation

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Page 1: CleanTech Road

CleanTech Road

Harvesting renewable energy from the roadways for electrical power

24 May 2010 1

Ian Martin, CEO Teresa Kruckenberg, CTO, R&DGeoff Gilmore, Product DevelopmentSiva Veerepalli, Sales & MarketingBryan Clement, CFO and PPA’s

Ken
better description than "waste energy"?
Page 2: CleanTech Road

CleanTech Road

Our Mission:Harvesting renewable energy from the roadways for electrical power

(I-5 from SD to LA, with 8 lanes for 124 mi can power 400,000 homes)

24 May 2010 2*Assume medium day use (3000 cars/hr)

Page 3: CleanTech Road

State Green Energy Mandates

24 May 2010 3

2010 2015 2020 2025California 20% (at 14) 33%Colorado 30%Nevada (at 6) 20%Illinois 25%Minnesota 25%Federal* ~20 to 25%

*Estimates of range

Page 4: CleanTech Road

The ProductEnergy Harvesting Slab

• Piezoelectric devices embedded in slab under asphalt

• Deflection of asphalt typically wasted as thermal energy

• Deflection creates compressive strain on piezoelectric device –convert to electrical energy

• Connect to grid, and/or store energy in battery, super-capacitor

Normal road deflection less than ¼” deflection

Device stiffer than road

Thermal waste

24 May 2010 4

Ken
next 3 slides into one, use animation if needed, to describe basic product.
Page 5: CleanTech Road

CleanTech Road Value Proposition

• Converts 65% of energy to power• Comparable to solar in cost• Doesn’t require new space –

embedded into new or existing roads

24 May 2010 5

Component Solar Direct Manufacturing Cost ($/m2), 20% efficiency

CleanTech Direct Manufacturing Cost ($/m2),

65% efficiency

Total direct manufacturing $90/m2 $287/m2

Cost per power conversion efficiency $450/m2 $441/m2

Ken
need economic model first before value prop.
Page 6: CleanTech Road

How & Why

To Power GridConnectionDC AC

24 May 20106

I5 San Diego to LA, 124 mi would yield 8GWh/day, $1.6B system installation cost yields

$320M profit from device padsRevenue $1.6M / day @ $.20 / kWh$ 584 Million / year

$ 7.0 Billion after initial expenses over 15 years*

*3500 pads/mile, 335kWhr/mile, $60 mil for maintenance

Net metering

Page 7: CleanTech Road

CleanTech Road

CleanTech Manufacturing

CleanTech Installations

Power PurchaseAgreement (PPA)

Customer

Incentives/rebatesDevelopment and Installation Fee

Maintenance FeeProfits

Re-sell PPAs to investors

R&D and Manufacturing of Piezo Electric Modules

Customers sign a PPA with CleanTech;

Cleantech finances the installations by repackaging the PPAs and selling to institutional investors seeking low risk and steady returns

CleanTech gets development, installation and maintenance fees

Biz Model

24 May 2010 7

UtilityCo.

Page 8: CleanTech Road

PPA Economics

24 May 2010 8

PPA value (cents per

kWh)

PPA Face Value

PPA Duration (years)

SellingPrice

CleanTech Profit

Investor Profit

.20 $5.87M 10 $3.9M $903,800 $1.97M

.15 $6.6M 15 $3.6M $603,800 $3M

4-8% ROI for investors, per mi financials no credit offsets included

Based 8MWhr/day @ 3000 vehicles/hr avg

Page 9: CleanTech Road

How Traffic affects Revenue

24 May 2010 9Dollar/kWh

Revenue per mile, single lane, per year

Rev

enue

Page 10: CleanTech Road

Barriers to Adoption

• High initial startup costs– Creative financing

• Ownership conflicts – government owned roads.– State of Calif PR from use, as publicly the generator of the power

• Cost savings by being seller off power to distributors.

• Roadway construction is very complex and disruptive. – Retrofit – Install process would be to done lane/section running. Overnight installs

• Unproven in the US – Current demo system in Israel – Innowattech– 10m yielded 2kWhr

24 May 2010 10

Ken
Page 11: CleanTech Road

Competition

24 May 2010 11

• Current Competition There are three potential competitors that currently exist on the market.

• Highway Energy Systems (HESL)- A research company based in UK. formed by Peter Hughes that are focusing on electro-kinetic road ramps

• Innowattech – is a privately held company based in Israel develop an alternative energy system that harvests mechanical energy imported to roadways, railways and runways.

 • Powerleap Inc.- is a company that develops floor solutions that

generate electricity from pedestrian and vehicular traffic. The company is based in Michigan, USA and was formed in 2008.  

Page 12: CleanTech Road

Intellectual Property• Open freedom to operate • Expect new IP generation for “system”, expect new IP

with nanotechnology for piezo devices with reduced cost– Smaller – Requires much less deformation– More rugged (wider range of supported loads)– Lower manufacturing cost– Lower installation

24 May 2010 12

Ken
don't get the point.You have new tech to apply for IP? Tech already commercially available, don't need any?
Page 13: CleanTech Road

Phased Funding2011-2012 2013-2015 2016-2019

Phase 1 - Short stretch, University Property,

$2-$3M for road demo and R&D of the devices

Phase 2 - HOV / high use lanes 3-5 mile stretch, tie into local grid,

VC and grant funding

$10-$15M for initial start-up and facility

Phase 3 - Full production, freeway installations VC funding – PPA purchase agreements, scale-up

Round 1 VC payback

$25-$30M

Page 14: CleanTech Road

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Revenue ($M) 3.25 4.39 5.54 16.42 21.01 25.59 36.67 43.55 56.92 66.09 81.75

Expenses ($M) 4.00 4.00 4.00 17.10 16.13 16.77 23.23 25.65 34.19 37.42 46.77

Gross Margin (%) 0.00 8.94 27.78 0.00 23.23 34.46 36.67 41.11 39.93 43.38 42.79

Profit ($M) before taxes -0.75 0.39 1.54 -0.67 4.88 8.82 13.45 17.91 22.73 28.67 34.98

Cum Net Profit before taxes ($M) -0.75 -0.36 1.18 0.51 5.39 14.21 27.65 45.56 68.29 96.96 131.9

Profit and Loss Statement

33 mi, 4 lane completed,

20cent/kWh

PPA over 10 years

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023-5

0

5

10

15

20

25

30

35

40

Prof

it ($

M) B

efor

e Ta

xes

Page 15: CleanTech Road

24 May 2010 15

CleanTech Road

CleanTech Manufacturing

CleanTech Installations

Because we believe we have the capability to

succeed

Because we hold the economical, technologically

advanced solution for clean energy

Because there is great potential

for future growth

Because we offer a Unique Differentiated

and Effective

solution

So Why Us?

Summary

Page 16: CleanTech Road

24 May 2010 16

End of Presentation

Thank You

Page 17: CleanTech Road

Back up Slides

24 May 2010 17

Page 18: CleanTech Road

• Geoff, 6 sigma, lean principles, black belt• Siva –

24 May 2010 18

Page 19: CleanTech Road

24 May 2010 19

Page 20: CleanTech Road

Competing Technologies

24 May 2010 20

Energy Source Solar   Wind   Geothermal   Fossil  

Oil /Gas   Kinetic

Company   Soltec   Windo   Ohm   BBQ   XON  Clean-Tech

COST Cts/KWhr   5-20 5-10   2-10   8-10   8-16   5-20 

Payback Yrs   5-20 10-20   10-20   5-10   5-10   5-10

Additional space req’d   ? Yes   No   Yes   Yes   No

Reliability   6   5   9   9   9   9

Green/ Clean   Y Y   Y   N   N   Y

In addition to traditional renewable energy sources and techniques such as solar, wind, hydroelectric, and bio, utilities companies are considering new sources and advanced technologies to increase generation from renewable sources

Ken
how are you most expensive in KWh but quickest payback?
Page 21: CleanTech Road

Summary

Green Energy is big business, and power requirements are increasingCleanTech Roads can provide a low maintenance, 20 yr duty solutionThe power from instrumented roads in San Diego county alone could support 500,000 homes with a revenue over a million dollars a day.

CleanTech Road

CleanTech Manufacturing

CleanTech Installations

Page 22: CleanTech Road

Value Prop/Mkt/Adoption

• Macro level – California is single largest provider and consumer of green energy– San Diego county is largest solar market– Expected 2010 energy is $20B market in Calif.– Energy use continues to rise– Green Energy requirements are increasing (Calif law to increase by 1% per year)– Average CA home uses 587 kWh per month.(~20/day) (highest is TN 1302 kWh/mo)– Avg cost $0.13- $0.29 per kW resulting in avg cost of ~$100 / mo.

• Other Factors– Many Cities and States are in financial trouble; looking for additional non-tax moneys– Federal grants available– Cities and States own the roads

24 May 2010 22

Ken
next 3 sldies combined t make these points:1. everyone knows power demand, no need to talk about it. This is all about competing renewables and adoption economics/ecosystem.So this slide talks about the positive adoption factors: mandates, utils/cities looking for it, subsidies etc.
Page 23: CleanTech Road

Major Companies

Clean Tech Mangement

Clean Tech Manfacturing, Inc

Road Install Sub(e.g. Irish Inc)

Construction Mgmt Sub

Performs overall mgmt functionsLobbies State & City Governments, Media

Manufactures Device install pkg,

Manages all construction sub-contractors,Permits & Planning interface

Installation company on existing roads

Road Install Sub(e.g. Daley Corp)

Installation company on new roads

24 May 2010 23

Page 24: CleanTech Road

Market

• In addition to traditional renewable energy sources and techniques such as solar, wind, hydroelectric, and bio, utilities companies are considering new sources and advanced technologies to increase generation from renewable sources

• High Demand - Utilities are not on a trajectory to meet the mandates set by states– Looking for a portfolio of alternative means

and technologies– For example, PG&E in CA is committed to

buying from Solargen, which plans to generate energy by beaming solar energy from outer space

– Cleantech would provide a very viable and competitive solution for renewable energy generation

24 May 2010 24

Page 25: CleanTech Road

Road Construction

• Irish Co, Penhall Co, Daley Corp – installers

• Installed during low traffic periods (nightly), road has full use during other times.

• High use ~1Mwh/hour/mi @ 5000 volts, 200 amps 0 gauge wire required (typical size run to modern home)

24 May 2010 25

Page 26: CleanTech Road

Road ModuleManfs.

Peizo- electric

PPA

Road Const.Co. Sales

Force

Install, Integrate &ManagePPAs

PPAs

Low –RiskInvestments

Install, Integrate &ManagePPAs

City Governments

Institutional& PrivateInvestors

InstallationFees

AcquiringPPAs &Investors

AcquiringPPAs &

Investors

ManagementFees

Peizo- electricEnergy

Cleantech Business Model Canvas

Dedicated

Personal

Assistance

24 May 2010 26

Page 27: CleanTech Road

Presentation Advice

• Sound very confident• Dazzle xxxx show how huge the market is

– BUILD it up! Show a giant market– Don’t use swarzenager

24 May 2010 27

Page 28: CleanTech Road

Funding

• How do initial VCs make serious money back?????? - VERY Weak– Liked manufacturer idea

• 2 sets of VC runs– Second is deep pocket, dilutes yes but this will

move us towards an IPO and fund initial major manufacturing

24 May 2010 28

Page 29: CleanTech Road

Areas to Work

• No Loop holes – No Magic– Power to grid question– Highlight how transferred to grid – MUST BE

REAL• Where is first money coming from

– Self, family, friends, local-groups, grants• MUST SHOW COMMITMENT• Why is our commitment believable?• Then VCs 24 May 2010 29

Page 30: CleanTech Road

Weak Areas

• How power is getting to grid• How we defend against large corps &

capital• Must name a CEO = must be ready to

commit.• What happens if our costs go up / relative • Phased approach (univ 30, HOV demo,

freeway)• Follow the dollar,..,…. 24 May 2010 30

Page 31: CleanTech Road

Avg Cars per day

• http://www.cahighways.org/stats3.html• I405 ~ 50mil 325k cars/day (1993) • I8 ~98miles, 250k cars per day (1993)• I10 ~160miles* 363k cars/day (1993)

• 55K-150K cars per mile / day busy areas

24 May 2010 31

Page 32: CleanTech Road

Competition

Competitive Advantage

• CleanTech - unique features that benefit the generation of renewable green energy, providing increased value to our customers giving clear advantage over our competitors:

• Existing technology – with quick growth

• Clean – no bio-hazard by products

• Market ready - Californian road ways/building developers, major cities

• Unaffected by weather

• Uses existing space converts more energy to power – void sight pollution

• Bigger investment but faster payback than traditional alternative energy

24 May 2010 32