The November CORE Colorado CleanTech Initiative kicked off with a presentation from Stephen Miller on efforts to expand the support for clean-tech entrepreneurs in Colorado and the Rocky Mountain Region, focusing on two specific programs – the Colorado Clean Tech Incubator and the Rocky Mountain Clean Tech Open. Four sites are currently under consideration for the Clean Tech Incubator offering between 15,000-25,000 square feet of office and flex space. The facility will offer turnkey office space, shared facilities and the opportunity for entrepreneurs to be in close proximity to others facing similar challenges. The incubator is looking to support early-stage (or as Miller put it – “mad scientists in a bathroom”), pre-revenue (3-12 months from launch), and early revenue companies. Miller noted that the incubator is intended to support both companies inside its walls as well as those who choose to work elsewhere in the state with services ranging from business development, legal services, capital formation and strategic partnerships.
Miller handed off to Dick Franklin for an overview of the Rocky Mountain Clean Tech Open. The RMCTO is the first spin-off of a program started in California that hopes to go national in the next several years. The RMCTO seeks to attract business plan submissions from at least 48 companies from which 12 finalists will be selected in its first year, with winners to be announced in October. Along with the “Startup-in-a-Box” cash and services valued at up to $100,000 that will go to the winners, the competition will provide workshops and mentoring support to all competing companies. Franklin noted that the competition intends to attract very early stage ideas relative to other competitions like NREL Industry Growth Forum Venture Competition. The program is looking for both interested companies and volunteer support. More information can be found at the RMTCO website.
The next two presentations followed the meetings standard form with each company offering a 15 minute presentation followed by comments and critique from a panel of experts. The evening’s critiques were offered by:
- John Anderson of Clean Energy Solutions
- Larry Fenster, an angel investor and aviation enthusiast
- Dave Gold of Access Venture Partners
- Jeffrey Nathanson, Executive Director of Business Development at National Jewish Health (who offered a quick plug for Family Air Care, an advanced home air quality test)
Bill Matvichuk of trulite offered the first company presentation about his company’s portable hydrogen fuel cell generator. The product is about the size of a normal small generator and requires two of the company’s Hydrocell Fuel Cells and water to operate. The business model is a printer/cartridge one with trulite selling both the portable power station and the Hydrocells. Potential applications are numerous and include emergency generation, radio communications, camping/RVing, and powering portable tools at construction sites. Mativichuk ran quickly through a variety of very dense slides outlining projections and comparisons to other technologies, noting that by 2012 the company expects the product to be less costly than light acid batteries with the hydrogen generator’s average selling price falling precipitously (from $2500 today to $1500 in 2010). Of note, Matvichuk brought a working version of the company’s current product, the KH4, which sat on the table throughout the presentation. The company is seeking an equity investment of $15M that could be broken into two stages.
Panelists critique focused on limiting the amount of information presented per slide but offering more granularity on important metrics like capital costs for the initial investment (cost/KW) and the ongoing costs of operation (cost/KWH) compared to alternative technologies and expected sales channels. There was also some concern over the size of the investment required and relative lack of detail on the use of proceeds. The panel was impressed by a working product, but ever the skeptics, they wanted to see it actually create some electricity. Matvichuk assured them the unit worked and offered to provide a demonstration after the event.
Bye Energy, presented by CEO George Bye, is seeking to bring clean energy to the aviation industry. While the aerospace industry may be thought of as being on the cutting edge of technology, many smaller planes actually incorporate engine technology that is up to 50 years old. With such old technology, the new green energy movement has largely passed by the non-commercial segment of aviation. Bye Energy hopes to apply current and future clean technologies to light planes. Bye sees his company serving as an “integrator”, selecting and adapting technologies to apply to light planes. The company is focused on electric motors for small planes (<250 horsepower). For larger business jets (>250 hp), the company is focused on biofuels. Key challenges in the biofuel space include weight concerns that will necessitate high energy density fuel and the more stringent fuel certification requirements applied in aviation. The company is seeking investment of $25M, $10M for electric plane development and $15M for biofuels.
The entire panel seemed somewhat unclear on what the role of “integrator” actually meant, not understanding exactly where Bye Energy would fit into the process of bringing an alternative energy-based plane to market. Panelists, led by Fenster, also noted some of the technical concerns about use of alternative energy in planes, including aircraft weight and range with electric batteries and the need to retrofit to reach a substantial portion of the market given limited sales of new planes.
The next CORE Colorado CleanTech Initiative meeting will take place the fourth Tuesday in January. CORE is the oldest and largest trade association in the Rocky Mountain Region dedicated to promoting sustainable business practices and a more responsible global economy. For more information on the organization and other CORE programs, visit their website.
