Innovators Example

Report
Innovation in UK Energy Technologies
An introduction to the Carbon Trust’s innovation activities
David Sanders, 9 October 2014
The Carbon Trust - Our mission is to accelerate the
move to a sustainable, low carbon economy

Created in 2001 by the UK government; now a fully independent private
company

We are an independent, expert partner of leading organisations internationally
- We help develop and deploy low carbon technologies and solutions, from
energy efficiency to renewable power
- We advise businesses, governments and the public sector
- We measure and certify environmental footprints

Team of 180 experts including scientists, entrepreneurs, financiers,
consultants, policy specialists, and project managers

Offices in the UK, Beijing and Mexico. Particularly active in the EU, Japan,
South Korea, China, South Africa, Mexico and Brazil
2
Our innovation activities uniquely combine technical,
commercial and public sector expertise in energy and
resource efficiency
1. Innovators



4. Corporates

Run an incubator
Create start-ups
Make direct investments
Carbon
Trust
Innovation
Support strategy
development and
execution
3. Industry

Run joint industry projects
with corporates and
universities to solve
technical challenges
2. Government


Design and implement
innovation policy
Run tech development and
demonstration programmes
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1. Innovators
We identify, incubate and invest in early stage
companies to fast track their commercialisation
Business Incubation
Venture Capital

Supported more than 300 low
carbon technologies and
projects

Since 2001, we have invested
around £60m in innovative
cleantech companies

Support is customised to address
gaps in the venture in 3 core
areas:
- commercial advice
- networking support
- tech development funding

Created our own businesses,
invested in 26 technology
businesses

Today we have 15 active
investments and joint ventures

16 energy technology companies
in our incubator today
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Innovators Example: Artemis
We supported Artemis when it was a start-up, prior to
its acquisition by Mitsubishi Heavy Industries

Artemis started out developing hydraulic
transmission system for automotive applications at
University of Edinburgh

We worked with Artemis to identify a quicker,
lower risk route to market in stationary applications
(wind power)

Carbon Trust support helped to develop the
product for the wind market

Acquired by Mitsubishi Heavy Industries in
November 2010
“The Carbon Trust really helped to show
that we as a company and our technology
are credible … The projects made us focus
and set clear milestones to report against
… The Carbon Trust is very important to a
small early stage company, particularly
considering the risks associated with
introducing a new technology into wind
turbines”
Win Rampen
Managing Director, Artemis
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Source: Artemis
Innovators Example: Amantys
Amantys
Bringing electrical power switching technology to market
Opportunity
 Established by former ARM executives in 2010 building

on world leading research at Cambridge University
Innovative power switching technology enabling
efficient switching between medium and high voltages
Carbon Trust support
 Market analysis and marketing collateral
 Independent validation of key technical claims
 Created a compelling presentation to investors and
targeted suitable investor groups
Outcomes
 $7m investment in July 2011 from Moonray Investors


and ARM and a further $8m in November 2012
Successful launch of multiple disruptive products into
the power switching market
Member of Global Cleantech 100 in 2012 and 2013
“We have specified a package of work which has greatly
helped us to refine our story and put us into contact with
companies who are working in the field”
Bryn Parry
Managing Director of Amantys
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Innovators Example: Heliex
Heliex Power
Novel rotary screw expander for waste heat recovery
Opportunity
 An estimated 40,000GWh of energy is lost in the form of


waste steam worldwide
Heliex Power’s innovative steam screw expander
technology, developed at City University London,
converts this waste heat into electricity
Needed to accelerate product development and raise
significant funding to support commercialisation
Carbon Trust support
 IP review and strategy
 Risk analysis and business planning
 Helped secure corporate investment
Outcomes
 Raised £2m from BP in late 2010 and subsequently £5m

in a round led by ESB Novusmodus in 2012
Opened the Heliex Test Facility based at the Energy
Technology Centre, Scottish Technology Park
"We prepared the business proposal to enter the Carbon
Trust incubator, and we hit that important target… A few
months later we secured a large investment in the project
from a corporate investor!“
Marco Iezzi
Chief Technical Officer of Heliex Power
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Innovators Example: Lontra
Lontra
Delivering step change improvements in wastewater aeration
Opportunity
 Roughly 10% of electricity consumption in Europe is

used to compress air
Lontra's Blade Compressor increases energy efficiency of
air compression by around 20%
Carbon Trust support
 Provided funding to prove concept and demonstrate


their energy efficient compressor at scale
Advised on fundraising and paid for interim
management to build customer traction
Provided PR and awareness raising support
Outcomes
 Partnership with Severn Trent Water to demonstrate

Blade Compressor technology at scale and initial orders
for 10 units
Secured global license deal from Sulzer, a major
compressor manufacturer
“The Carbon Trust is not just about money; it’s
about skills, it’s about connections. Working
with the Carbon Trust is a very valuable to us
in terms of credibility as a small company”
Simon Hombersley
Business Development Director, Lontra
“It would have been difficult to do this without the Carbon
Trust. A new technology like this is hard to sell to people
before it reaches a level where it has proved itself. That’s
where The Carbon Trust came in to develop the initial idea
to a functioning prototype”
Clive Hudson
Chief Development Engineer, Lontra
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2. Governments
We engage governments and funding bodies around
the world to realise entrepreneurial approaches

The Carbon Trust supports development of UK low carbon
innovation strategy to co-ordinate and guide future public
sector funding across low carbon technologies

Develop policy solutions for the governments of China,
South Korea, Mexico, Brazil and South Africa. Delivered
projects for the World Bank and International Climate Fund
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3. Joint industry projects
We manage many projects which support collaborative
technology development
Project Example
Description
Offshore Wind Accelerator
A £60m project, with 9 major developers, that leverages
government funding to reduce cost of offshore wind
Marine Renewables
Commercialisation Fund
Part of our £50m marine energy innovation programme
working with Scottish Government, DECC and Industry
Polymer Fuel Cells Challenge
A 5 year, £7m programme targeting a >30% reduction in
automotive fuel cell costs
Industrial Energy Efficiency
Accelerator
A £15m programme to maximise sector deployment of
innovations in targeted sectors
Advanced Biofuels Challenge
Large-scale R&D programme with current focus on proving the
viability of pyrolysis-based drop-in biofuels
Grid-Scale Energy Storage
Project currently being set up together with 5 European wind
developers
We have also run similar research accelerators and technology demonstration projects in other
areas of energy and resource efficiency including micro CHP, advanced metering, next generation
PV and buildings energy efficiency
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Example: Offshore Wind
Offshore Wind Accelerator
Objective: Reduce cost of energy by 10% in time for Round 3
Joint industry project involving 9
developers + Carbon Trust
Only developers are members
– Aligned interests
– Commercially-focused
– Preferential access to new
technology
£45-60m programme (7.8b – 10b yen)
– 2/3 industry, 1/3 public
(government)
72% (31GW) of licensed
Offshore Wind Accelerator
capacity in UK waters
Focus on overcoming near-term
technical challenges
Example: Offshore Wind
Offshore Wind Accelerator (OWA) focuses targets
areas where it can have the largest impact
Access systems, cable installation, electrical, foundations, wakes, environment
Levelised Cost of
Energy Breakdown
Cost
Focusing on everything but the turbine, representing roughly 70% of offshore wind costs
Source: Navigant (offshore)
Foundations
Foundation Competition
Objective: Reduce lifecycle costs by 30% in 30-60m depths
Competition for
novel foundations in
2009
- 104 entries
- 7 shortlisted
- 4 finalists
- 2 demonstrated with
met masts
Next step
- £18m fund to
incentivise
demonstration of
three novel
foundations with
turbines
Universal Foundation
- Dogger Bank 2013,
150km offshore,
25m depth
Image: Universal Foundation 2013, Mainstream Renewable Power 2011
Keystone ‘twisted
jacket’
- Hornsea 2011,
100km, 30m
4. Corporate customers
We work with corporates providing a range of
services to meet their innovation needs
Strategy
Delivery
SELECTED EXAMPLES
SELECTED EXAMPLES
 Assessed and prioritised opportunities in

Set up an incubator and identified
innovative companies across Europe
low carbon technologies

Developed options for low carbon market
entry strategies

Set up and ran competitions, pilots and
technology demonstrations

Strategies and business cases for
operational resource efficiency and lowcarbon growth

Supported development of resourceefficient product design innovations

Implemented supply chain engagement
and collaborative procurement processes

Innovation partner for large corporates

Developed strategies to address supply
chain risks
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Example: GE
Our partnership with General Electric leveraged
complementary strengths of start-ups and corporates
›
›
›
We launched $5 million pilot partnership with
General Electric to find, assess and incubate startups across Europe in infrastructure application
areas1 in 2012
Partnership launched at a time when low carbon
technology start-ups in Europe are finding it
increasingly difficult to raise early stage funding
Incubation partnership has potential to accelerate
development and deployment of novel low carbon
technologies by leveraging complementary
strengths of start-ups and corporates
$5m
GE-CT Partnership1
3,500
Start-ups assessed
€130m
Invested within a year
of our support
13 to 1
Private investment
leveraged
Sources: 1 http://www.gereports.com/carbon-trust-and-ge-partner-to-pump-up-europes-clean-tech-sector/
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Thank You!
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