Sparrho Blog Clean Tech v2: How to build an energy venture (Part 1)

-Nadine Upton, PhD, Sparrho Community ManagerHighlights from the second session of the Opportunity Series held by Deep Science Ventures, a partner of SparrhoDeep Science Ventures (DSV) is an exciting venture builder that supports early career scientists and engineers to build companies from scratch at the interface of science and engineering.Discussion Buzzwords - #CleanTech #Infrastructure #Solarwonthewar #CrystallineSilicon #emobilty #BeeBox #globalbutlocalDSV hosted another fantastic evening last night and on a very interesting topic discussed by 5 admirable panellists - Dr Ned Ekins-Daukes, Jessica Dick, Dr John Hammond, Arnab Chatterjee and Alistair Furey http://deepscienceventures.com/cleantech. Keep on reading for main highlights, live tweets and key research papers brought to you by Sparrho - partners of DSV.https://twitter.com/sparrho/status/827217539000332289DSV's Mark Hammond: kicked off the session by asking panellists:Q: "Why is Clean Tech moving so slowly, what's the delay?"John Hammond - Reader in Physics from Imperial College and founder of multiple Clean Tech companies bounced back with: · Clean Tech is actually going as fast as it possibly can· It's the associated required changes in Infrastructure that takes timehttps://twitter.com/sparrho/status/827228916494508033Dr Ned Ekins-Daukes - Reader in Solid State Physics from Imperial College and expert in solar power ventures pointed out · Clean Tech feels like it's moving slow here in London as we can't see it on our doorsteps - but it is!· It's creeping in but we just don't realise it!o E.g. energy saving LED light bulbs!Arnab Chatterjee - Strategy manager at Shell (Hydrogen group) and trained chemist and chemical engineer then provided us with insight into the important role of Synthetic Biology & Biotech in Clean Tech growth.https://twitter.com/sparrho/status/827229968476299265 · Would be surprised if Synthetic Biology does not take off!· Capital Costs are high for Biotech· Achieving the required scale from bacteria is a challenge· Technical and economic challenges are associated with enzymatic hydraulics· Carbohydrate-powered fuel stationshttps://twitter.com/sparrho/status/827230704631238656 · Feedstocks are proving highly efficient· emobility is also upcoming but in need for further scientific developments See this great review on "From first generation biofuels to advanced solar biofuels" http://sparrho.com/i/4d7821/ Alistair Furey - Strategy and Business Development Manager at Reaction Engines encouraged the audience· "There's loads of opportunities left"· "It's a highly dynamic place to be!"The conversation then moved onto discussions about the major existing barrier in Clean Tech - disrupting traditional infrastructures, inspired by a question from the audience:Q: "How can a small start-up compete with big players and traditional infrastructures?Jessica Dick -· It can be scary for investors to invest in potentially "disruptive" start-ups and supporting regulations.· Seed core funding "Angel funds" (~$200k) can be easier to obtain but it's tough to get to the next stage (>$1M).https://twitter.com/sparrho/status/827231727055728641Dr John Hammond - agreed with Jessica and advised the audience of entrepreneurs· "Go for high value in niche markets"· "Green is not enough; you need to get the economics right"This inspired a question from the audience about potential opportunities to venture outside the UKhttps://twitter.com/sparrho/status/827232580986667008Q: "Should we be looking outside the UK markets for Clean Tech Start-ups?"All panellists seem to agree this may be the way to go:https://twitter.com/sparrho/status/827233326113161216Jessica Dick - described a great example for how a great idea may not be as impactful here in the UK but a life changer in areas of Africa · BBbox - provides clean energy to off grid communities in the developing world· This doesn't require traditional infrastructures to implement in Africa and is a successful example· Makes economic sense "replacing dirty with clean solutions"Jessica then provided the audience with great advice on choosing investors · Make you're your investors really understand your product and the science behind it· And the economic potential and risksAlistair backed up Jessica and advised· "Focus on solving a need for someone, who will be able to pay for it"· Plunging into a competitive/saturated markets will not succeedThe conversation progressed into speaking more about solar technologiesNed - provided us with a useful overview of the current status· Crystalline silicon has locked itself into the market· Holds 90% of the market!· Following investments in the $500 billion mark!· It's very difficult to compete with this!https://twitter.com/sparrho/status/827234069343793154A cheeky but appropriate question from the audience followed:Q: "Why can't Shell and BP just pump more money in to make the industry Greener?"Arnab - Strategic manager at Shell pointed out· It is essential to have a strategic goal· Larger companies need to meet requirements of their shareholders· Shell, BP aren't the only ones progressing in this field, other specialists are also relevant and essential:o Governmento Micro electricso Glasso RWE/UtilityQ: "Is there any space for small scale start-ups in Clean Tech?"Ned -· Yes. There are major opportunities for alternative and improved business models to exploreJohn -· Major advantages of smaller companies are their agility and ability to make decisions quickly which may not work in larger companies.Jessica - · There is a race for new business models applicable to meet home users' needs· Data Analytics is key for this - to understand e.g. home usage patternshttps://twitter.com/sparrho/status/827235862870102016Q: "Are there any gaps in the market?"Ned - · There is a strong bias to SMART everything, however they key os to figure out how to navigate each technology (SMART, battery storage, hydrogen etc.)https://twitter.com/sparrho/status/827237235854540801Alistair -· "The Grid is not homogenous"· There are opportunities for battery banks for example in remote areas out of national grid region e.g. farms for solar panellingJohn -· There are niches everywhere, don't assume they haven't been done yet!