Clean Energy Trust

July 27, 2010

Organization

Ecosystem

Discussion

Agenda

Mission and Purpose

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• Mission: To accelerate the development of clean energy technologies and businesses in the State of Illinois

• Vision o Clean energy will define the future. Regions with industrial

strength in this sector will be the most competitive and have the highest quality of life for their citizens. Illinois can be a global leader in clean energy.

• Purpose: o Facilitate new companies and expansion of existing businesses in

the sector

• Desired Outcomes o New businesses that will produce long term job growth

o New clean energy-friendly business environment and policy

o Alignment of regional stakeholders

Founding Board

• Michael Polsky, Invenergy

• Nick Pritzker, Hyatt Corporation

• Paula Crown, Henry Crown & Company

• Richard Sandor, Chicago Climate Exchange

• Tim Schwertfeger, ex-Nuveen

• Antonio Gracias, Valor Equity Partners

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Civic leaders and business professionals with a

passion for Illinois and clean energy

Offerings and Sector Focus

• Offerings: o Business development support to clean energy start-ups

o Financial assistance: grants, loans, equity

o Education and advocacy: help advance policy conducive to clean energy

• Customer segments: o Ecosystem development

o Technology transfer

o Start-up companies

• Energy sectors of interest: o Renewable energy

o Next generation transportation

o Energy efficiency

o Smart grid and energy IT

o Carbon abatement and environmental finance

• What has been completed to date: o Funded and staffed Clean Energy Trust; incorporated as non-profit, awaiting IRS

approval on 501(c)3 tax-exempt status

o Begun providing business services and advocacy support

o Developed support and momentum from numerous stakeholders: City, State, foundations, corporations, investors, trade groups

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DOE Grant: Innovation Ecosystem Development Initiative (FOA 356)

• The purpose is to help create or enhance an environment to accelerate the commercialization of energy efficiency and renewable energy technologies developed at universities.

• Fund the creation of new programs or the expansion of existing, successful programs

Estimated Total Funding Per Grantee $1,050,000

Grant Period 3 years

Cost Share Minimum 20%

Expected Number of Grantees 5

Proposed Cluster Strategy

• Leverage and scale 4 existing initiatives at the Clean Energy Trust

o Clean Energy Business Plan Competition

o Clean Energy Boot Camp

o Business Development Support

o Regional Education and Awareness

• Drive financial and programming support from a diverse group of stakeholders

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FY1 FY2 FY3 Total

Clean Energy Trust 86,667$ 86,667$ 86,667$ 260,000$

+Trade Groups 87,461$ 87,461$ 87,461$ 262,384$

+Illinois Venture Capital Community 30,000$ 30,000$ 30,000$ 90,000$

+Corporations 44,167$ 44,167$ 44,167$ 132,500$

+Foundations 18,333$ 18,333$ 18,333$ 55,000$

+State of Il and City of Chicago 31,667$ 31,667$ 31,667$ 95,000$

+Illinois Labs and Universities 203,000$ 203,000$ 203,000$ 609,000$

=Total Contribution from Cluster Members 501,295$ 501,295$ 501,295$ 1,503,884$

+ Total DOE Contribution from Grant 350,000$ 350,000$ 350,000$ 1,050,000$

Total Cluster Contributions 851,295$ 851,295$ 851,295$ 2,553,884$

Organization

Ecosystem

Discussion

Agenda

Candidate Technology Platforms for This Region

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• Renewable Energy Production and Distribution o Biomass/Biofuels and other alternative fuels

o Growing wind cluster for installation, manufacturing

o Solar ramp-up

• Smart grid Development and Deployment o New software and hardware and other system integration opportunities

• Building technologies and Industrial process improvement o Combined Heat and Power

o Significant install base with existing architectural assets

o Strong corporate representation including Siemens Building Technologies

• Energy Storage Technologies o Battery expertise from Argonne

o Johnson Controls-Saft (Advanced Battery Manufacturing) Awarded $300M from DOE

$169M in tax credits and other incentives from State of Michigan

• Electrification and vehicle charging o Build upon Chicago’s RFP

• Advanced manufacturing o Propulsion Technology Strategy which leverages our proximity to automotive supply chain (Michigan,

Indiana and Wisconsin) as well as the existing Illinois' manufacturing capacity of Deere, Cat and Navistar

Renewable Energy Production and Distribution

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• Illinois is rich in biomass assets which can be used for energy generation and transportation fuels

• Illinois is now home to an existing wind cluster of developers, manufacturers and investors

• While Illinois’ solar generation capacity will remain limited there is still a reasonable amount of activity o Exelon City Solar

$60M project

10MW

o ComEd currently installing PV panels on 100 homes Include battery storage

Includes webportal to display consumption information, renewable energy produced, hourly pricing and battery capacity

o Solar Ramp Up – “ramps up” installed solar capacity to 750 MW by 2015 to meet the 6% RES solar carve out

Recovery Act: Batteries and Electric Vehicles

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• $12 Billion Dollar investment in advanced vehicle technologies o 30 new electric vehicle battery and component manufacturing plants

2009 US Manufacturing Capacity for advanced batteries was 2%

2010 predicted to be 20%

2015 predicted to be 40%

o Support large electric vehicle demonstration projects

o $2.6B in Advanced Technology Vehicle Manufacturing (ATVM) loans to Nissan, Fisker and Tesla

o 3 new Michigan facilities to produce advanced batteries for vehicles, grid storage, and other applications

o $90M awarded to Indiana based Delphi Automotive Systems to build a power electronics manufacturing facility Capacity for 200,000 electric drive vehicles by 2013

• DOE is “invigorating a nationwide advanced vehicle supply chain centered in the Midwest” (source Whitehouse)

• 14 Vehicle awards went to Michigan o Several large battery factories (A123, GM, Johnson-Controls, Dow & LG)

o Electric drive component factories (GM, Ford, Magna)

o Workforce training programs

Electrification Ecosystems: Electrification Coalition

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• Non-profit comprised of 14 companies including automakers, battery manufacturers, utilities, smart grid companies and investors

• Electrification Roadmap: Proposes a set of policies in which geographic areas would compete to be selected as electrification deployment communities and receive amplified incentives for consumers, infrastructure and utilities o Electric Vehicle Deployment Act of 2010 – Senate Bill

Overwhelming bipartisan support (19-4 vote) by the Senate Energy and Natural Resources Committee on July 21

Concern, however, that this may not be included in the Energy Bill

Provides up to $250M per community

o Electric Drive Vehicle Deployment Act of 2010 – House Bill Provides up to $800M per community

• Biggest challenges o Cost of the vehicles: excess battery capacity and the price of batteries drive up the cost

o Charging Infrastructure: current business models do not present profitable strategies

o Electric power sector interface: smart grid capabilities needed for large deployment

o Consumer acceptance: acceptable substitutions needed for either cost or performance

• Overcome these challenges by developing policy which creates programming to support Electrification Ecosystems

Electrification Ecosystems: City of Chicago

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• Chicago Clean Cities Grant Project o $15M for alternative fuel vehicles and infrastructure

o Deploy 554 alternative fuel and hybrid vehicles

o Install 149 alternative-fuel fueling and electric vehicle charging stations throughout Chicago region

• Competitive sub-grant “Plug-In Electric Vehicle Charging Infrastructure Project” o $2M RFP for public charging infrastructure

o Level II chargers

o Quick chargers

o Distribution to support current car-sharing fleets including I-Go and Zip

o All stations must be installed by December 2011 and operational for 3 years

Electrification Ecosystem: ComEd

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• EPRI Electric Transportation Program

oGM Collaboration

o PHEV truck demonstration

o PHEV impacts on the grid

o Infrastructure Working Council

• PHEV Demonstration

o 10 PHEVs in fleet with integrated smart charging technology and dynamic charge management

Nationwide: Electric Vehicles and Charging

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• Nissan Leaf and Electric Transportation Engineering (charging station maker) o Through partner, Electric Transportation Engineering, installing

11,000 charging stations in Arizona, California, Oregon, Tennessee and Washington, using $100M from DOE

• General Motors (Volt) o Electric Power Research Institute (500 experimental public

charging stations)

$30 M Federal Grant

Focus on charging at home

Partners include PG&E, Sacromento Municipal Utility District

• Better Place (San Francisco, San Jose and Oakland)

• Coulomb Technologies: Charging station maker o 6 installed in Michigan for study funded by Michigan Public

Service Commission

• Customers include municipalities, fleets, retailers, home owners, and corporations

Energy Systems Network (ESN)

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• An initiative of the Central Indiana Corporate Partnership (CICP) which brings together the CEOs of Indiana’s largest employers

• The companies include those which produce advanced batteries, engines, transmissions and electronics for hybrid and electric vehicles

• Current Project Portfolio o Cooperative partnership between Cummins, Delphi, Allison Transmission,

Remy International and Duke Energy seeking to develop fully integrated hybrid power train systems

o Commercial scale pilot of plug-in electric vehicles and smart grid technology working together to demonstrate an energy efficient transportation system

o Distributed power generation microgrid system to provide scalable power for military and commercial markets

• Recently hosted US China Advanced Technology Vehicle Summit which brought together 100 executives from Chinese auto manufacturing companies and the automotive suppliers from this cluster

• We know them well through GLASER

Stimulus Funds: Smart Grid and Smart Meters

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• $3.4B in overall ARRA funding to smart grid

o Illinois received $11M (Naperville)

Deploy 57,000 smart meters and install

infrastructure and software necessary to support

and integrate various smart grid functions and the

two-way flow of information between the utility and

the customers

o $17.2M to Midwest Independent Transmission

System Operator (includes 10 states)

Statewide Smart Grid and Smart Meter Efforts

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• ComEd o Installed AMI smart meters in nine towns

o In some cases have installed in-home devices to view real-time electricity usage data and real time pricing

o Behavioral analysis through different pricing plans

• Real time pricing o CNT, Ameren, ComEd

• Galvin Electricity Initiative o The development of a perfect microgrid on the IIT campus which

generates, distributes and regulates local flow of electricity

• Illinois Smart Grid Initiative o Public private working group to examine the nature and benefits of grid

modernization and development of policy initiatives

• State of Illinois - Republic of Korea o $20M investments in building technologies for energy efficiency

technologies in downtown Chicago buildings

o $25M in smart grid R&D

Regional Advanced Manufacturing and Logistics Platforms

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• All power propulsion technologies including hybrids, internal combustion engine and transmission improvements (Navistar, Deere, Caterpillar)

• Biomass and waste to energy turbines (Caterpillar)

• Smart grid components (S&C Electric)

• Alternatives fuel technologies (UOP, GTI, ADM)

• Building technologies (Siemens)

• Original equipment manufacturers (Tenneco, Anixter)

Local Efforts

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• The Clean Energy Trust is strongly

supported at state and local levels

o ICC Chairman Mannie Flores

o Scheduled to meet with a few of the most

tenured alderman

oClose allies in both the DCEO and Governor

Quinn’s office

Other Regional Energy Consortia

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• New England Clean Energy Council

• NIREC

• Colorado Collabatory

• GLASER

Organization

Comparison

Discussion

Agenda

Example Questions

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• What is in Federal funding pipeline that we can organize around?

• What type of advanced manufacturing could exist here to support various sub-sectors of energy?

• How can the Clean Energy Trust support your organizations?

• What are some potential candidates for public/private partnerships?