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Sustainable Technologies Capital, LP
TBLI Presentation November, 2006
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Topics
Sustainable Technologies Capital
Sector Focus and growth
Why Now?
US compared to Europe
Applying a Sustainability Perspective
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Introduction
Sustainable Technologies Capital, LP, working together with Sustainable Technology Partners AB, an early stage private equity manager.
We seek investment opportunities in what we call “Sustainable Technologies”, also referred to as “Clean Technologies” or “Cleantech”.
We look for small and medium sized growth companies (€ 0-30 million in sales) in Europe with a special focus on the Nordic countries.
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Andre Heinz, Investment Director
• Founder of Sustainable Technologies Capital LP
• Co-founder of The Natural Step International and Director of International Affairs
• Researcher and analyst to Paul Hawken on the book “Natural Capitalism”
• Researcher and analyst to green architect Bill McDonough
• Board and Finance Committee member on Vira I. Heinz Endowment, a 450 MUSD foundation
• Masters in Environmental Management, Yale University
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Investment focus Renewable energy generation
Energy efficiency
Energy transmission
Energy storage
Bio fuels
Sustainable materials and chemicals
Recycling and waste management
Water, soil and air purification
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Growing investment category
In the US, Cleantech has become the third largest venture investment category.
A record $ 843 million was invested in Q2 2006, a 129% increase from Q2 2005.
$ 594 million was invested in energy related investments.
During Q1-Q3 $ 1,4 billion has been invested in Cleantech, up 99% from 2005.
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Sign of the timesMay 2006 July 2006 May 2006
September 2006
July 2006August 2006
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Why now?
Higher energy prices
Resource security
Global Climate Change
Rapidly Developing Countries
Technological improvements
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Source: NREL Energy Analysis Office (www.nrel.gov/analysis/docs/cost_curves_2005.ppt)1These graphs are reflections of historical cost trends NOT precise annual historical data. DRAFT November 2005
Renewable Energy Cost Trends
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Strong growth in renewable energy
Source: World Watch Institute, 2006
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US compared to Europe
More activity in the US (More funds, larger funds, more deals e t c)
Signs of over allocation in the US
An increasing activity in both East Asia and Europe
Energy by far the largest sector in both US and Europe
Still relatively little activity in Nordic countries
Nordic countries are however seen as a future “hot” spot in Cleantech
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Why Nordic countries?
Country rankings according to the 2005 Environmental Sustainability Index (ESI) and OECD
World leaders in many Cleantech technology fields: Wind, solar and wave Bio fuels Geothermal Recycling Purification Energy efficiency District heating/cooling
Long consistency in political initiatives to support growth
The 4 most active acquirers of Cleantech companies worldwide are German and Swedish (ABB, Danaher, Siemens and Schneider)
Large pool of small- and medium sized cleantech companies
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Company Database
Country EnvironmentEnergy
GenerationEnergy
Efficiency Materials Water Total
Sweden 100 72 34 7 25 238
Finland 19 6 0 3 1 29
Denmark 13 26 2 0 3 44
Norway 13 15 1 1 3 33
Germany 42 76 2 6 15 141
Total 187 195 39 17 47 485
An estimated 1000-1200 Cleantech companies in Nordic countries
Certain Cleantech Clusters are being formed in university cities such as Gothenburg, Lund and Uppsala
Intense activity in geothermal, energy efficiency and bio fuels
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Investment approach
Sustainability Analysis• Thermodynamics• System conditions• Back Casting perspective• Resource scarcity and toxicity
Invest in Nordic region – Grow in the US and China
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Thank You !
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