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Fuel Cell Startups in the UK - SB Cha ACAL Energy Stanford Apr1309
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Fuel Cell Startups in the UK - SB Cha ACAL Energy Stanford Apr1309

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fuel cell, hydrogen, carbon trust, energy, seed, startup, uk, stanford, burton lee

fuel cell, hydrogen, carbon trust, energy, seed, startup, uk, stanford, burton lee

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  • 1. ACAL Energy Company Presentation Dr. Sukbae Cha, CEO Stanford Program on European Entrepreneurship & Innovation April 13, 2009 Private and Confidential © 2009
  • 2. ACAL Energy  Developing a new low cost, reliable ‘big’ PEM Fuel Cell architecture thru better chemistry  Will enable Fuel Cells to replace IC engines in stationary, auto and micro-CHP applications  Experienced Management Team and Board  AIM, NASDAQ listing successes, over $.7B generated for investors  Total investment into the company about £7M, combination of pubic and private funds  £4M raised December 2008 from UK VCs, European and Japanese Corporations Private and Confidential © 2009
  • 3. Company Founded in 2004 by Former Unilever and ICI Employees Dr. Andrew Creeth, Ms Amanda Lyne Private and Confidential © 2009
  • 4. ACAL Team – Many Years of Business Creation Experience  SB Cha – Chief Executive Officer  CDT, Philips, BCG, Texaco  Bob Longman – VP Engineering  Co-founder Plasmon, Cambridge Consultants  Bob Pettigrew – Non Exec Chairman  Co–founded Generics, 20 business creation experience.  David Fyfe – Non Exec Director  Chair and CEO of CDT Ltd, CEO of Harris Speciality Chemicals  James Wilkie–Npn Exec Director  Birmingham Univ., Technical Director JM Fuel Cell  Strong technical, commercial support from corporate investors Private and Confidential © 2009 4
  • 5. Financing History  ERDF Loan £10k  Carbon Trust Incubator Fund £40k  One North East Cluster support £5k ₤1.6M Investment by 4 UK VCs One North East Cluster support £5k KTP with Univ. of Manchester £70k ₤4M Investment by UK VCs, European & Japanese Corporations TSB Collaborative research project £313k Carbon Trust Investment Grant for R&D £250k Private and Confidential © 2009
  • 6. Fund Raising Timeline  August - October 2007: Rebuild business strategy, move away from small portable applications to larger applications  October – December 2007: Build detailed business plan, begin adding more technical resource  January- February 2008: Select corporate finance advisor, legal advisor, prepare supporting documents  February 2008: Kick-off process, start meeting potential investors  March 2008: First potential lead investor emerges, begin preparing for due diligence  April - July 2008: Corporate investors emerge, existing investors make commitments, it looks like we have a deal  August 2008: Lead investor pulls out, CTI step in  September – December 2008: Finish DD, legal documents, final close Private and Confidential © 2009
  • 7. ACAL Energy Today  Located at the Heath Technical Park, Runcorn, UK  Occupy about 4,000 sq. ft lab and office space  Have grown in 18 months from 5 people to 23 total employees, mostly engineers and chemists Private and Confidential © 2009
  • 8. Fuel Cells Offer Potential for Clean, Renewable Power The Opportunity: Clean Quiet Efficient The Challenge: x Too expensive x Poor performance x Not yet commercial Private and Confidential © 2009
  • 9. ACAL PEM Cell Conventional Pt Cathode Reduced e- Catholyte PEM Cell Solution, Heat Air, Water Vapour & Excess Heat Air, H+ Fuel Out Water Aerator Vapor, Membrane H+ ACAL Cathode, Heat No Platinum Catalyst Air H+ Oxidized Fuel In Catholyte Solution Humidification Air system Pt Anode Confidential Page 9
  • 10. 10 Cell Stack 50W System Private and Confidential © 2009
  • 11. ACAL Core Technology Catalyst/Mediator Chemistry Current Generation System Next Generation System Polyoxometallate Transition metal-ligand Inorganic association complex complex Very stable and robust Power density approaching Pt Higher potential catalyst Power density to beat Pt X X X T M X X Y Can deliver 0.6-0.8+W/cm2, ready today for back-up power and remote Will deliver up to 1W/cm2, ready power applications. end of 2009 for larger remote power, transport applications Private and Confidential © 2009
  • 12. Peak Power Increasing Rapidly 1000 900 Power Density, mW/cm2 800 2009 700 Target 600 500 400 Actual 300 200 100 0 Sep-05 Mar-06 Oct-06 Apr-07 Nov-07 Jun-08 Dec-08 Jul-09 Jan-10 Jan, 05 Jan, 06 Jan, 07 Jan, 08 Jan, 09 Private and Confidential © 2009
  • 13. Substantial Cost Reduction Possible  Very low cost stack  Eliminates Pt from Cathode, simple graphite cathode  Simple bi-polar plate design, will enable low cost, high volume manufacture  Hydrocarbon membrane work well, lower cost than nafion  Large net balance of plant cost reduction  Eliminates air and fuel hydration equipment,  Eliminates high pressure compression  Liquid cathode system replaces liquid cooling system – more efficient heat removal Private and Confidential © 2009 13
  • 14. ACAL System Could 40% Less Expensive Cost Estimate of 5kW Fuel Cell System 12,000 Total = $10,238 10,000 8,000 Total = $6,282 Cost, $ 6,000 Assembly 4,000 Other Mechanical Balance of Plant 2,000 Stack 0 Conventional System 1 ACAL System 2 System Cost ($) for 5kW Back-up Power Application – Conventional System is non-pressurized liquid cooled system Private and Confidential © 2009
  • 15. ACAL Technology More Reliable and More Robust  Eliminates membrane dehydration  Eliminates cathode oxidation  Eliminates peroxide formation  Eliminates cathode catalyst agglomeration  1-100kW+ units possible  0-100% operating range, rapid response  Flexible thermal management  0-100% air humidity air  More resistant to air contaminants  Simpler water management  Catholyte replaceable, system repairable Private and Confidential © 2009 15
  • 16. ACAL Technology Removes Most Barriers toMass Commercialisation Market Need ACAL’s Technology Delivers Reduction of the amount of √ expensive catalyst Less severe operating conditions √ Catalysts that last longer √ No need to pressurise √ Lower maintenance costs √ Simple mechanism to control √ temperature Simple method to manage water √ Improved security of supply √ Private and Confidential © 2009
  • 17. ACAL Business Strategy Summary  Simpler business model: Sell fuel cell modules and chemicals  IP based competitive advantage – 15+ filings to date  Core capabilities: chemistry, module engineering.  Aggressive drive to cost down – less than $500/kw module in 5 years  Market targets  Pre 2012: H2 fueled 1-5kW stationary power module, followed by reformate fueled module for stationary power and CHP.  Post 2012 products: Larger stationary power (20kW+), expand to automotive with an auto partner  Build partnerships with key supply chain companies and OEMs  Module production JV, chemical supply, lead system OEM, automotive 17 Private and Confidential © 2009
  • 18. Development Pipeline 2007 2008 2009 2010 Proof of Concept Engineering System Product Demo Application Testing demonstrated Proven Delivered Complete 50 W 50 W 1 kW System Stack Unit Demonstrator Modules Private and Confidential © 2009
  • 19. Partnership Strategy Electrode Mediator Catalyst Air/O2 e- Medox Cat O2,H+, a ahd tc t oe Med Catox H2O Chemistry and Cell, System Design Chemicals Production Engineering Key Components, inc Design and non-PT anode Build Private and Confidential © 2009
  • 20. Market Applications Short Term Diesel Genset replacement for back up, UPS and auxiliary power (Up to $10billion market) Fuel Cells are: Quieter: 70db at 1m (typical FC) vs. 70 db at 7m (diesel)  Cleaner: No NOx, SOx, PM10, unburned HCs  Cooler operation  Smaller & lighter Private and Confidential © 2009
  • 21. Market Applications Longer Term Reduction of CO2 emissions and moving away from fossil fuels Replacement of ICE in transport applications Micro CHP for small scale industrial and domestic distributed energy Private and Confidential © 2009
  • 22. Cost Barrier is Challenging Diesel Generator Cost Vs. Size 700 $/kW Cost: Diesel Generator 600 500 400 300 200 100 0 0 50 100 150 200 250 Generator Size, kW Private and Confidential © 2009 22
  • 23. Key Milestones Over Next 18 Months  Chemistry ready for first products  First commercial products available  Alfa, beta 1kW demos  Evaluation Kit for sale  Production Partnerships  POM commercial capacity mid 2010  First production capacity for evaluation kits by end 2009  Commercial engagement  Evaluation kit sales 2010  Lead module customer by end 2010  Fund raising to start again in early 2010 Private and Confidential © 2009
  • 24. ACAL Energy Profitable 2013 Revenue Cash Flow 160,000 70,000 140,000 60,000 120,000 50,000 100,000 40,000 GBP, 000s GBP, 000s 80,000 30,000 60,000 20,000 40,000 10,000 20,000 0 0 -10,000 2008 2010 2012 2014 2016 2018 2008 2010 2012 2014 2016 2018 Year Year Private and Confidential © 2009
  • 25. Some Takeaways from ACAL Experience  There some great ideas and very talented people in UK and the rest of Europe  Seed funding available but development funding more difficult, gap in the ‘middle’  Smaller VCs don’t have the resources, larger VCs looking for revenues  Grants help but public sector funding also lacking at this stage  New environment and energy technologies are expensive and take longer to become self sustaining business  Government policy often most important driver  International opportunity, some regions have invested in certain sectors for many years  Partnerships, linkages can make a significant difference 25 Private and Confidential © 2009
  • 26. Thank you for your time! Private and Confidential © 2009