Technology Management, Inc. 9718 Lake Shore Blvd Cleveland, Ohio 44108 Technology Management, Inc. 9718 Lake Shore Blvd Cleveland, Ohio 44108(216) 541-1000

Technology Management, Inc. Technology Management, Inc. 9718 Lake Shore Blvd Cleveland, Ohio 441089718 Lake Shore Blvd Cleveland, Ohio 44108(216) 541-1000 [email protected] 1

Aligning Business and Philanthropy to Drive Aligning Business and Philanthropy to Drive Sustainable Social Change: The Fuel Cell Sustainable Social Change: The Fuel Cell

OpportunityOpportunity

Benson P. Lee, PresidentBenson P. Lee, PresidentTechnology Management, Inc.Technology Management, Inc.

Cleveland, OhioCleveland, Ohio

Finding Philanthropies Sweet Spot Symposium

May 16, 2006Dahesh MuseumNew York , NY

Stanford Social Innovation Review & Rockefeller Philanthropy Advisors


VisionVision Business mission leveraged by foundations Business mission leveraged by foundations

and NGOs to further their social missionsand NGOs to further their social missions Fuel cells in the Third WorldFuel cells in the Third World

1 kW solutions, starting with clean water 1 kW solutions, starting with clean water Technology + Philanthropy + Business Technology + Philanthropy + Business

““Do better by doing good”Do better by doing good”

Technology Management, Inc. (TMI)Technology Management, Inc. (TMI)


Fuel CellsFuel Cells

Chemical process converts fuel into electricity Chemical process converts fuel into electricity and heatand heat

Twice as efficient as today’s power plantsTwice as efficient as today’s power plants Clean energy, non-polluting Clean energy, non-polluting In use since the ’60sIn use since the ’60s Commercial systems must be efficient and Commercial systems must be efficient and

affordable, at NASA levels of dependabilityaffordable, at NASA levels of dependability Now at the demonstration stage Now at the demonstration stage


Three I,000 Watt SystemsThree I,000 Watt Systems

Developed at Developed at SOHIOSOHIO

Acquired technology Acquired technology and technologists in and technologists in 19901990

3-5 years from 3-5 years from shipping productshipping product Brutal field testingBrutal field testing Engineer for volume Engineer for volume

productionproduction


TMI System EvolutionTMI System Evolution

2006-7Field Test System

2002Demonstration

•Virtually any fuel:•Natural gas, propane, kerosene, blends•Ethanol, vegetable oil•Biogas

•Ease of maintenance•Scalable by adding systems•Full production: ~$500.

~50-60 lbs.

42” X 15” x 15”~100 lbs.

29” X 12” x 12”


Fuel Cell SystemsFuel Cell Systems

Core advantage: grid independentCore advantage: grid independent One time opportunityOne time opportunity

Distributed generation – on-site alternative to utility gridDistributed generation – on-site alternative to utility grid Bypass dependence on foreign oilBypass dependence on foreign oil Head off oil, gas, and coal consumptionHead off oil, gas, and coal consumption Advance renewable biomass energy sourcesAdvance renewable biomass energy sources Third World can lead reduction of greenhouse gasesThird World can lead reduction of greenhouse gases

New Partnerships can drive change New Partnerships can drive change Local controlLocal control Social change and business creation Social change and business creation

Electricity infrastructure – common goal Electricity infrastructure – common goal Technologists, entrepreneurs and foundations Technologists, entrepreneurs and foundations


Scenario – Rural Village in IndiaScenario – Rural Village in India

Loan to self-help group for fuel cell Loan to self-help group for fuel cell systemsystem Power for water purifiers and pumpsPower for water purifiers and pumps Education on clean water and healthEducation on clean water and health Cooking, refrigeration, lighting, Cooking, refrigeration, lighting,

telecommunicationstelecommunications Businesses created, Businesses created, Social and economic infrastructureSocial and economic infrastructure

Repay loan, replicateRepay loan, replicate


4 Billion People: A Transformative Opportunity4 Billion People: A Transformative Opportunity

Enormous business opportunityEnormous business opportunity Two critical challenges:Two critical challenges:

Financing to bring to scaleFinancing to bring to scale Partnerships on the groundPartnerships on the ground


First World MarketsFirst World Markets

Early adopters -- performance/features Early adopters -- performance/features provide more value than low priceprovide more value than low price Natural gas pipelines and telecom towersNatural gas pipelines and telecom towers Military, many mobileMilitary, many mobile Truck APUs (Auxiliary Power Units) Truck APUs (Auxiliary Power Units)

TMI’s partnership model:TMI’s partnership model: Market knowledge, market delivery Market knowledge, market delivery

capabilities, end user relationshipscapabilities, end user relationships


Third Third World Markets

No templates to followNo templates to follow Planning … requires a process of Planning … requires a process of

discoverydiscovery New kinds of partnershipsNew kinds of partnerships

NGOs, foundations, governments, NGOs, foundations, governments, and/or businessesand/or businesses

Local stakeholdersLocal stakeholders


Program Related Investment (PRI)Program Related Investment (PRI)

“… “… if foundations are willing to take on the if foundations are willing to take on the risk and complexity of pioneering financial risk and complexity of pioneering financial solutions to these market gaps, they can solutions to these market gaps, they can achieve program objectives while still creating achieve program objectives while still creating investments that earn market-comparable investments that earn market-comparable returns.”*returns.”*

Unique opportunity forUnique opportunity for Convergence of for-profit missions with social Convergence of for-profit missions with social

missions to alleviate Third World problemsmissions to alleviate Third World problems

* p.18 * p.18 Investing for Impact – Managing and Measuring Proactive Social Investing for Impact – Managing and Measuring Proactive Social InvestmentsInvestments Foundation Strategy Group (January 2006) Foundation Strategy Group (January 2006)


Accelerate Accelerate SustainableSustainable Social Changes Social Changes

Significant financial returns possible Significant financial returns possible Electric infrastructure, based on fuel Electric infrastructure, based on fuel

cells, offers a sustainable, systemic cells, offers a sustainable, systemic approachapproach

Alignment … impossible can become Alignment … impossible can become natural and inevitablenatural and inevitable

Documents

Technology Management, Inc. 9718 Lake Shore Blvd Cleveland, Ohio 44108 Technology Management, Inc. 9718 Lake Shore Blvd Cleveland, Ohio 44108(216) 541-1000