Embed Size (px)
Citation preview
Making business sense of climate change
UK Energy Programmes
Ian Behling
2nd April 2007
Overview
What is the Carbon Trust?
Carbon Trust’s business areas:
– Solutions
– Innovations
– Investments
– Enterprises
– Insights
AEA Energy & Environment
The Carbon Trust
Independent company set up in 2001 under the UK Government’s Climate Change programme.
“accelerate the transition to a low carbon economy by helping organisations reduce
their carbon emissions and develop commercial low carbon technologies”
Advisory services- Carbon Management for corporates, Local Authorities and Higher Education- On site energy efficiency advice- Buildings Design Advice- Advice lines, publications and training events - Raising awareness of climate change as a business issue
Financial products- SME interest-free loans- Local Authority financing (Salix)
Research support- Carbon Vision (EPSRC JV)- Applied research (mainly SMEs)- Research accelerators
Technology demonstration- Marine Energy Challenge and EMEC- Micro-CHP & smart metering trials - Low Carbon Buildings - Biomass for heat
Business incubation- 4 dedicated low carbon incubators Imperial Innovations; ISIS Innovations, TTP and Angle Technology
Five low carbon business areas
Investments(Private £ with public sector seed funding)
Innovations(Public £ with private co-funding & support
Solutions(Public £ with
some co-funding)
Enterprises(Private £ with public sector seed funding)
Early stage investing- In-house investment portfolio - Venture capital fund creation- 3rd party investment funds
Development of new businesses- Connective Energy (heat partnerships)- Partnerships for Renewables- Insource Energy - waste to energy
For Investors, policy makers, researchers and businesses…
Low Carbon Technology Assessment, (Dec 2002; updated February 2007)
EU ETS: Implications for Industrial Competitiveness, April ‘04
Brand Value at Risk from Climate Change,March ’05
Biomass Sector Review,October ’05
Policy Frameworks for Renewables, July ’06
InsightsPublic £
Low carbon policy insights
Carbon Trust business areas tackle technical and market barriers to reducing CO2 emissions
Develop technologies Deploy technologies
Ba
rrie
rs
tech
nolo
gic
al
ma
rke
t
Research Development Deployment
pre-commercial commercial
Innovation R&D
InnovationTechnology accelerators Enterprises
Early stage investments
Innovation incubator support
Solutions
Overview
What is the Carbon Trust?
Carbon Trust’s business areas:
– Solutions
– Innovations
– Investments
– Enterprises
– Insights
AEA Energy & Environment
Solutions works with business and the public sector to deliver energy, cost & CO2 savings cost-effectively
Carbon Management Detailed Surveys Technical Feasibility Studies Strategy & Policy
Development Monitoring & Targeting Awareness and Training Innovative pilots
Site Surveys Technical Advice Helpline Website
Helpline Website Publications Loans
Large Medium Small
Products Offered
Description Deep relationship with flexible service offering
50/50 funding
Direct on-site interventions using standard products
Remote provision of lower cost services to mass market
Customerenergy bill
> £ 3m £ 50k – 3m < £ 50k
Energy bill range
Market size (# of Orgs)
Cost effective services
Activity (05/06)
£1m+ ~2,800
£50k - £1m ~28,000
£10k - £50k ~106,000
£0 - £10k ~1.79m
Carbon Management
175 Orgs
Site Surveys 3,700 Orgs (5,400 visits)
Loans 266 loans
Helpline, website
20,000 calls350,000 web visitors
Source: CT impact assessment 2005/06, ONS, CT analysis
Carbon Trust Solutions
Identified 3.9 MtCO2 that could
save £390 million on annual energy bills. 1.6MtCO2 saved so far.
Solutions works with business and the public sector to deliver energy, cost & CO2 savings cost-effectively
The five step Carbon Management process
Step 1:Mobilise the organisation
Step 2:Evaluate the
business case
Step 3:I dentify
opportunities
Step 4:Develop
implementationplans
Step 5:Manage
implementation
Step 1:Mobilise the organisation
Step 2:Evaluate the
business case
Step 3:I dentify
opportunities
Step 4:Develop
implementationplans
Step 5:Manage
implementation
• Secure commitment from organisation at highest level
• Define roles and responsibilities
• Identify risks and opportunities
• Calculate value at stake
• Develop detail picture of company wide emissions
• Identify cost-effective emission reductions opportunities
• Prioritise opportunities according to cost-effectiveness and own corporate criteria
• Develop an emissions reduction plan with budgets targets and assigned roles and responsibilities
• Monitor progress and effectiveness of plan
• Re-assess priorities and include new ideas/actions
Selection of Carbon Management clients
Not just big companies can save energy, money and CO2
Aims: To encourage businesses to upgrade or replace equipment
with energy efficient versions To support implementation of energy saving projects To save money and deliver carbon savings on site
Benefits Interest-free Unsecured No arrangement fees Borrow up to four years Repayments match savings Multiple loans
Energy Efficiency Loan Scheme: aims and benefits
Energy Efficiency Loan Scheme: statistics
Over 840 organisations have received loan offers
worth £28M;
Small and medium size businesses invested over
£40m in energy-saving projects;
Over 80ktonnes pa CO2 emissions abated;
Over £10m pa saved in fuel cost.
Overview
What is the Carbon Trust?
Carbon Trust’s business areas:
– Solutions
– Innovations
– Investments
– Enterprises
– Insights
AEA Energy & Environment
Innovations: Carbon Trust Applied Research 2007
Commitment by technology category: Carbon Trust contribution £16.6M
Total portfolio value £39.1M
Innovations: Technology Accelerator Projects
To develop and/or progress new low carbon technologies; and overcome barriers to market entry of existing low carbon technologies.
– Marine Energy Challenge – published Jan 2006;– Micro-chp trials – interim results published Nov 2005;– Smart metering for the sub-100kW market – mid-term
update published Nov 2005;– Low carbon non-domestic building refurbishment;– Biomass for heat off the gas grid.
Angle
Imperial
Innovations
ISIS
Innovations
TTP
Innovations: Carbon Trust Incubator Network
Opportunities
CT/Shell Seed Fund
Carbon Trust Investments Limited
VCs
Hedge Funds
Business Angels
‘Investment Readiness’
CT Incubators
Plus specialist suppliers & experts
University spin-outs
SMEs
Start-ups
Entrepreneurs
Corporate spin-outs
Through networks, R&D open call & active marketing
Investors
Investor conferences
Workshops
Incubator support – up to £60K over 1-2 years
Technology
Intellectual Property protection
Product development and engineering
Commercial potential
Identifying & engaging customers and partners
Market sizing and risk
Route to market
Management team
Competencies and gaps
Finding experienced directors and non-execs
Mentoring
Funding
Sources of funds
Profitable business model
Investment focus
The Incubator Programme has helped many companies attract private funding
40 companies supported 20 have raised £14M private investment (excluding
AIM listings)– Carbon Trust has invested in 3 of the 20– 3 have listed on AIM (CMR, Oxford Catalyst and ITM
Power) 3 licence agreements put in place 15 of those incubated have also received Carbon
Trust R&D funding 2 have taken part in Technology Accelerators
Since the start of the programme in April 2004:
Overview
What is the Carbon Trust?
Carbon Trust’s business areas:
– Solutions
– Innovations
– Investments
– Enterprises
– Insights
AEA Energy & Environment
Total Funding £750,000
£250,000Working capital
Sales growthBiomass CHP
Lead Investor
Total Funding undisclosed
£1,000,000Working capital
Technology developmentSOFC Fuel Cell
Co-lead Investor
Total Funding £800,000
£400,000Working capital
Sales growthInnovative Building Materials
Co-lead Investor
Total Funding £719,000
£300,000Working Capital
Technology developmentConcentrated PV Solar
Lead Investor
Total Funding undisclosed
£650,000Start-up
Technology developmentMixed Reactant Fuel Cell
Co-lead Investor
Total Funding £7,000,000
£1,500,000Working Capital
Technology developmentOffshore Wave Generator
Syndicate Investor
Investments: £7m venture capital investment has leveraged over £68m over last 4 years
Overview
What is the Carbon Trust?
Carbon Trust’s business areas:
– Solutions
– Innovations
– Investments
– Enterprises
– Insights
AEA Energy & Environment
Carbon Trust Enterprises portfolio of new business ventures to meet needs for low carbon solutions
pro-actively developing new ventures;
targeting emerging customer demands for low carbon solutions that are not being met by the private sector.
partnering to create value;
bringing together the right mix of people, finance, assets and technologies drawn from all sectors.
Carbon Trust Enterprises: commercialisation stage-gate process selects the most promising options
New ideas
Opportunity Evaluation
Commercial Proposition“Scope”
Business Case
“Develop”
Proof of Concept“Build”
Establish Business
“Launch”
Decision Gates
Stranded Credits
“Waste4Energy”
Advisory Group
CTEL Board ExternalInvestment
“CT Pipelines”
“Partnerships for Renewables”
Opportunity Bank
Idea Screening
Projects Implementation services
Enterprises: catalysing the development of the low carbon economy through creation of new low carbon ventures
Connective Energy: Business launched Waste heat pipelines business targeting a core market worth up to £1bn a year in the
UK and an annual carbon saving potential of 2MtC Joint venture with Mitsui Babcock Energy Limited and Triodos Renewables. Anticipated
direct leverage of 20:1
Partnerships for Renewables: Under development Develop and manage onsite renewable energy projects for public
sector bodies Targeting 500MW of installed capacity with potential to catalyse
market worth up to 3GW PfR can save 0.2MtC per annum directly and catalyse up to 1MtC £10m seed funding from Defra: aim is to catalyse up to £500m of
private sector investment
Further opportunities Insource Energy under development: utilisation of food waste for energy; in addition
contributes to wider resource efficiency and nitrates directive objectives Potential to leverage large scale direct funding and catalyse major investment in low
carbon industries Established network of investors, partner companies and contacts
Overview
What is the Carbon Trust?
Carbon Trust’s business areas:
– Solutions
– Innovations
– Investments
– Enterprises
– Insights
AEA Energy & Environment
Insights and strategic activities
Developing new customer services – eg, carbon management; carbon labelling;
Developing understanding of the ways in which low carbon policy interventions impact on markets – eg renewables study; studies on the EU Emissions Trading Scheme;
Extending knowledge about low carbon technologies and their value chains;
Working to inform Government about policy options, effectiveness and impacts – eg low carbon buildings strategy;
Working with leading corporates (eg, BT, Tesco, etc) to share insights on the pathways to a low carbon economy.
The Carbon Trust’s strategic activities
Overview
What is the Carbon Trust?
Carbon Trust’s business areas:
– Solutions
– Innovations
– Investments
– Enterprises
– Insights
AEA Energy & Environment
AEA Energy & Environment
Delivery Partner to the Carbon Trust– Programme management– Technical support and advice– Grant management– Due diligence– Product development– Analysis and measurement
Define, Develop, Deliver & Document Succes
