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CleanTech Road

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:

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CleanTech Road

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  1. 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

  2. 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) *Assume medium day use (3000 cars/hr)

  3. State Green Energy Mandates *Estimates of range

  4. 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 The ProductEnergy Harvesting Slab Thermal waste Normal road deflection less than ¼” deflection Device stiffer than road

  5. 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

  6. How & Why To Power Grid Connection DC  AC I5 San Diego to LA, 124 mi would yield 8GWh/day, $1.6B system installation cost yields $320M profit from device pads Revenue $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

  7. Biz Model Utility Co. Customer Cleantech finances the installations by repackaging the PPAs and selling to institutional investors seeking low risk and steady returns Power Purchase Agreement (PPA) CleanTech Road Customers sign a PPA with CleanTech; R&D and Manufacturing of Piezo Electric Modules CleanTech Manufacturing Re-sell PPAs to investors CleanTech Installations CleanTech gets development, installation and maintenance fees Development and Installation Fee Maintenance Fee Incentives/rebates Profits

  8. PPA Economics 4-8% ROI for investors, per mi financials no credit offsets included Based 8MWhr/day @ 3000 vehicles/hr avg

  9. How Traffic affects Revenue Revenue per mile, single lane, per year Revenue Dollar/kWh

  10. 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

  11. Competition 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.

  12. 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

  13. Phased Funding Phase 3 - Full production, freeway installations VC funding – PPA purchase agreements, scale-up Round 1 VC payback $25-$30M 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

  14. Profit and Loss Statement 33 mi, 4 lane completed, 20cent/kWh PPA over 10 years

  15. CleanTech Road CleanTech Manufacturing CleanTech Installations Summary • Because we offer a • Unique • Differentiated and • Effective solution So Why Us? 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

  16. End of Presentation Thank You

  17. Back up Slides

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

  19. Competing Technologies 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

  20. CleanTech Road CleanTech Manufacturing CleanTech Installations Summary Green Energy is big business, and power requirements are increasing CleanTech Roads can provide a low maintenance, 20 yr duty solution The power from instrumented roads in San Diego county alone could support 500,000 homes with a revenue over a million dollars a day.

  21. 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

  22. Major Companies Performs overall mgmt functions Lobbies State & City Governments, Media Clean Tech Mangement Manufactures Device install pkg, Clean Tech Manfacturing, Inc Construction Mgmt Sub Manages all construction sub-contractors, Permits & Planning interface Road Install Sub (e.g. Irish Inc) Installation company on existing roads Road Install Sub (e.g. Daley Corp) Installation company on new roads

  23. 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. 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)

  25. Cleantech Business Model Canvas Install, Integrate & Manage PPAs Peizo- electric PPA Peizo- electric Energy Road Module Manfs. Road Const. Co. Low – Risk Investments Acquiring PPAs & Investors Institutional & Private Investors Dedicated Personal Assistance Sales Force City Governments PPAs Install, Integrate & Manage PPAs Acquiring PPAs & Investors Management Fees Installation Fees

  26. Presentation Advice • Sound very confident • Dazzle xxxx show how huge the market is • BUILD it up! Show a giant market • Don’t use swarzenager

  27. 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

  28. 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

  29. 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,..,….

  30. 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

  31. 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

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