funding innovation in the nordics - erik olsson - swedish energy agency - april 2010
DESCRIPTION
Talk by Erik Olsson at Nordic Green II ConferenceTRANSCRIPT
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Nordic Green II,
Funding Innovation in
the Nordics
Erik Olsson
Department of Business
Development and New Venture
Projects
The Swedish Energy Agency
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The Swedish Energy Agency
• Established in 1998
• Main Swedish Government Agency for implementing energy policy
• Facilitates the transformation towards a sustainable energy system
• Promotes new energy technology and energy efficiency, administers Energy R&D programs and disseminates knowledge and information
• Mission is to promote the development of Sweden’s energy system so that it will become ecologically and economically sustainable… a smarter use of energy.
• 250 employees at the Agency.
• Budget 2010: 2.5 Bkr (~ 350 M$)
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International
• The Swedish Energy Agency is working to promote development in the fields of energy and climate in selected countries
• Through bilateral agreements the Agency cooperates, among others, with Brazil, China, India, Ukraine, Poland and the United States on research in the field of energy
• ”SAGA”, the Swedish-American Green Alliance
• MOU with California
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Six Focus Areas
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Swedish Energy Agency
Policy
Research
Innovation
Primary Energy Resources
Energy Carriers
Energy Recycling
Energy
Transformation
Distribution
and storage
Energy Services
The Energy System Sustainable use
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Policy incentives for energy technology development in Sweden
• High carbon taxes for heating since 1991
• Deregulated electricity market since 1996
• Trading certificates based on quotas for use of electricity from renewable production sources since 2003
• Tradable emission permits for CO2 since 2005
• A high system know-how from a policy and technology perspective
• Technology solutions that are based on integrated system thinking
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BNP in relation to emissions
0
20
40
60
80
100
120
140
160
1990
1991
1992
1993
1994
1995
1996
1996
1998
1999
2000
2001
2002
2003
2004
2005
2006
Year
Ind
ex y
r 1990=
100 CO2e
GDP, fixed prices
SO2
NOx
VOC
GDP in relation to emissions
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SOLOUTIONS
FOR FINANCE
MARKET &
ECONOMY
Our offer to the start-up companies
Offer
• Financing
• Business Development
• Network
• ”Packaging”
Tools
• Soft loans
• Competence
• Network
TEAM
Financing of Energy Innovations
• Supports Research & Development & Demonstration
• International mechanisms like emissions trading and CDM/JI
• Public procurement
VERIFIED
UNIQUE
TECHNOLOGY
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Good early dealflow
- 100 Companies/year - DD
- About 15 investments/year
Results - Examples
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Tanks for your attention!
Erik Olsson
www.energimyndigheten.se
www.swedishenergyagency.se
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Three of the major challenges in Sweden today:
• “The Swedish Paradox”
• Lack of VC Capital for
early stage companies
• The need of larger
amount of money in a
early stage
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1. “The Swedish Paradox”
• The Good News:
– Sweden tops the Innovation
Capacity Index Rankings 2009-
2010 (Innovation for
Development Report)
• Huge investments in R&D and
high tech companies do not lead
to more innovation, productivity
or profit
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- “The Swedish Paradox”
• R&D is only one of many factors underpinning the
knowledge based society
• R&D is important, but the objective must be
company learning, not more R&D in and for itself
• Companies that are able to find, understand and
make use of new technology successes
• Policy makers must scrutinize all policies that
influences learning and innovation in firms,
including general framework conditions
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2. Lack of VC capital for early stage companies
Critical sector
Close the gap!
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EBAN -“Business Angel investing across Europe”, 2009-11-21
Capital Needs
RiskFriends,
Family &
Founders
Business
Angels
Venture
Capital
Funds
IPO
Early stage
and seed
venture
funds
The Agency’s soft loans
Later stage and
less investments!
Concentrate
on!
- Finding other investors!
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3. The need of larger amount of money in early stage
• <1 M$ for lab verification
• >10 M$ for full-scale demonstrations
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- The call for second-generation biofuels and other energy technologies
• ~ 40 applications
• 5 companies assigned (Chemrec, Södra Cell, GoBiGas, Volvo, Seabased)
• Governmental funding total ~100 M$
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- Continue the education of the investment community
• Hosting seminars and investment forums
• Branch building/Networking
• Risk sharing initiatives
• Publications