1. Total Contacts: 96
Red Ox’s Electrochemical Desalination Cell
1. desalinates brine, a waste product from oil & gas and other industries
2. generates electricity quietly and
3. produces bulk inorganics that can be sold as commodities.
André Taylor (PI) David Kohn (EL) Tom Livingston (IM)
National Science Foundation Innovation Corps Program May 23, 2012
2. André D. Taylor
Co-inventor of the EDC, his research focuses on nanomaterial synthesis and assembly for
electro chemical systems. He is a recent recipient of a Presidential Early Career Award for
Science and Engineering. He will advise on electrocatalysis and electrode design.
David Kohn
As lead inventor of the EDC, David brings passion and know-how to the Red Ox team. After
receiving his B.S. in Engineering last year, the Connecticut Technology Council sponsored a
Post-Graduate Fellowship at Yale so he could continue to develop the EDC. He will focus on
technological development and strategy.
Thomas Livingston
Former Vice President and Secretary of Applied Biosystems Inc. He has recently
served as a key mentor to two successful ventures licensing Yale technology. He will
advise on legal affairs and general business strategy.
2
3. Co-Founder Co-Founder & Advisor-Desalination Advisor-Sustainability
Claire Henly Meny Elimelech Marian Chertow
Claire just received a B.S. in Co-inventor of the EDC, his Her research focuses on
Environmental Engineering at Yale. research focuses on osmotic Industrial Ecology. She is a
She brings a unique mix of business processes for desalination. former president of the
and scientific rigor to the Red Ox He helped found and Connecticut Resources
has continued to advise Oasys Water, a Recovery Authority and has advised ventures
team. She previously worked for McKinsey &
low energy forward osmosis desalination in the waste to value space. She will advise
Company, Goldman Sachs, and BHP Billiton.
company. He will advise on desalination Red Ox on monetization of waste recovery
She will focus on day to day operations &
markets and membrane technology. and sustainable business development.
business and customer development.
Mentor-Chemical Markets Mentor-Strategic Partnerships Mentor-Finance
Neil A. Burns Christopher McLeod Joseph Lane
Currently CEO of P2 Former President of Principal at Sinter
Science, he brings 20 454 Life Sciences, Partners and former
years of experience in he brings a strong President of IBM
the chemical industry. background in Credit Corp and IBM
He will advise on issues relating technology development and Global Financing
to marketing, licensing and scaling. He will advise on he brings decades of financial
developing the EDC and related strategic partnerships and expertise and will advise on
products. technology design for scale-up. funding and marketing.
4. What we thought: PROBLEM
Problem 1:
59 kg of CO2 are
released to make
electricity to produce
100 m3 potable water
Problem 2:
Desalination
produces
environmentally
harmful brine waste
Problem 3:
Valuable salts from
brine waste streams
are not recovered
2 Please Keep Confidential
5. What we thought: SOLUTION
Solution 1:
55 kg of CO2 are
consumed to make
electricity to produce
100 m3 potable water
Solution 2:
The EDC produces no
waste
Solution 3:
Valuable salts are
produced using brine
waste streams as
feedstock
4 Please Keep Confidential
6. What we thought
1. Desalination 2. Oil and gas production
Photo 1: Kay Bailey Hutchison desalination plant Photo 2: a hydraulic fracturing site near
in El Paso Tx. Morgantown Pa.
6
Please Keep Confidential
8. What we learned:
1. Desalination 2. Oil and gas production
Photo 1: Kay Bailey Hutchison desalination plant Photo 2: a hydraulic fracturing site near
in El Paso Tx. Morgantown Pa.
8
Please Keep Confidential
9. Key Partners Key Activities Value Customer Customer
-R & D Propositions Relationships Segments
-Manufacturers -Engineering -Turns waste cost -Service -Inland desalination
-Utilities customization into revenue -Customization plants
-Regulators -Decreased input -Link to value add -Industrial brine
-Learn regulatory
-Utility Commissions costs / volatility in industrial producers
landscape
-Quiet electricity ecosystem -Hydrofracking
-Inland and coastal -Foster relationships
on-site -Improve public operations
desalination plants with stakeholders
image
-Industrial brine -Hiring & retention
-Decreased liability -Chemical
producers
Key Resources -Better public Channels distributors
-Hydrofracking
image -Chemical End Users
operations -People
-Decreased -B2B marketing -Chemical Producers
-Intellectual
permitting time -Service
property
-Chemical agreements
-CO2 sequestration -Licensing
distributors -Brand -Utilities
-Energy efficiency arrangements
-Chemical Producers -Relationships with -Fuel Cell Mfgs
stakeholders and
partners
Cost Structure Revenue Streams
-People -Manufacture / Capital -Royalties from licenses -Chemical sales
-R & D -Operation and -Service contracts -Electricity sales
–Prototyping maintenance -Engineering consulting -REC sales
-Legal fees (IP, Licensing, -Sales and Marketing fees -Brine treatment
Regulatory) -Strategic Partnerships contracts
10. Key Partners Key Activities Value Customer Customer
-R & D Propositions Relationships Segments
-Manufacturers -Engineering -Turns waste cost -Service -Inland and coastal
-Utilities customization into revenue -Customization desalination plants
-Regulators -Decreased input -Link to value add -Industrial brine
-Learn regulatory
-Utility Commissions costs / volatility in industrial producers
landscape
-Quiet electricity ecosystem -Hydrofracking
-Foster relationships
-Inland and coastal on-site -Improve public operations
with stakeholders
desalination plants image
-Hiring & retention
-Industrial brine -Decreased liability -Chemical
producers Key Resources -Better public Channels distributors
-Hydrofracking image -Chemical End Users
-People
operations -Decreased -B2B marketing -Chemical Producers
-Intellectual
permitting time -Service
property
-Chemical agreements
-CO2 sequestration -Licensing
distributors -Brand -Utilities
-Energy efficiency arrangements
-Chemical Producers -Relationships with -Fuel Cell Mfgs
stakeholders and -DOESN’T CAUSE
partners EARTHQUAKES
Cost Structure Revenue Streams
-People -Manufacture / Capital -Royalties from licenses -Chemical sales
-R & D -Operation and -Service contracts -Electricity sales
–Prototyping maintenance -Engineering consulting -REC sales
-Legal fees (IP, Licensing, -Sales and Marketing fees -Brine treatment
Regulatory) -Strategic Partnerships contracts
11. Key Partners Key Activities Value Customer Customer
-R & D Propositions Relationships Segments
-Manufacturers -Engineering -Turns waste cost -Service -Inland and coastal
-Utilities customization into revenue -Customization desalination plants
-Regulators -Decreased input -Link to value add -Industrial brine
-Learn regulatory
-Utility Commissions costs / volatility in industrial producers
landscape
-Quiet electricity ecosystem -Hydrofracking
-Foster relationships
-Inland and coastal on-site -Improve public operations
with stakeholders
desalination plants image
-Hiring & retention
-Industrial brine -Decreased liability -Chemical
producers Key Resources -Better public Channels distributors
-Hydrofracking image -Chemical End Users
-People
operations -Decreased -B2B marketing -Chemical Producers
-Intellectual
permitting time -Service
property
-Chemical agreements
-CO2 sequestration -Licensing
distributors -Brand -Utilities
-Energy efficiency arrangements
-Chemical Producers -Relationships with -Fuel Cell Mfgs
stakeholders and -DOESN’T CAUSE
partners EARTHQUAKES
Cost Structure Revenue Streams
-People -Manufacture / Capital -Royalties from licenses -Chemical sales
-R & D -Operation and -Service contracts -Electricity sales
–Prototyping maintenance -Engineering consulting -REC sales
-Legal fees (IP, Licensing, -Sales and Marketing fees -Brine treatment
Regulatory) -Strategic Partnerships contracts
12. Key Partners Key Activities Value Customer Customer
-R & D Propositions Relationships Segments
-Manufacturers -Engineering -Turns waste cost -Service
-Utilities customization into revenue -Customization -Hydrofracking
-Regulators -Decreased waste -Link to value add operations
-Learn regulatory
-Utility Commissions costs in industrial -Inland and coastal
landscape
-Decreased input ecosystem desalination plants
-Foster relationships
-Inland and coastal costs / volatility -Improve public -Industrial brine
with stakeholders
desalination plants -Quiet electricity image producers
-Hiring & retention
-Industrial brine on-site
producers Key Resources Channels - Electric Utilities (for
-Decreased liability energy efficiency
-Hydrofracking -Better public
-People investments)
operations image -B2B marketing
-Intellectual
-Decreased -Service
property
-Chemical permitting time ? agreements
-Chemical
distributors -Licensing
-Brand distributors
-Chemical Producers -Relationships with -DOESN’T CAUSE arrangements
-Chemical End Users
stakeholders and EARTHQUAKES -Chemical Producers
partners
Cost Structure Revenue Streams
-People -Manufacture / Capital -Royalties from licenses -Chemical sales
-R & D & Prototyping -Operation and -Service contracts -Electricity sales
-Legal fees (IP, Licensing, maintenance -Engineering consulting fees -REC sales
Regulatory) -Sales and Marketing -Strategic Partnerships -Brine treatment
contracts
13. Market
Source : Global Water Intelligence
TAM: $5 bn/yr
SAM: $3 bn
Target: $0.5 bn
14. Traditional methods to dispose of saline brine include:
Deep well injection Evaporation Pits
Photo 4: a small deep well injection rig Photo 5 : a typical wastewater evaporation pit
14
Please Keep Confidential
15. Thought: Problem in the Marcellus
Texas:~50,000 Class II Disposal Wells (at least
80% for enhanced recovery)
Pennsylvania: 8 Class II Disposal Wells
16. Did: Holy Shit Moment
$3.95/bbl if you take NaCl brine back with you
$7.95/ bbl if you don’t
18. Learning…
Freshwater
Flowback Produced
Water Water
Onsite Primary
Treatment Water
and Reuse Treatment
Disposal Well /
Evaporation
Pond /
Evaporator
Secondary
Treatment Discharge
20. Key Partners Key Activities Value Customer Customer
-R & D Propositions Relationships Segments
-Manufacturers -Engineering -Turns waste cost -Service -Hydrofracking
MEMBRANE customization into revenue -Customization operations
-Utilities -Decreased -Link to value add -Water Treatment
-Know regulatory for Hydrofracking
-Regulators disposal costs in industrial
landscape (Especially
-Engineering firms -Decreased input ecosystem
-Foster relationships Produced Water)
-Inland and coastal with stakeholders costs / volatility -Improve public
-Quiet electricity image -Inland and coastal
desalination plants -Hiring & retention
on-site desalination plants
-Industrial brine
Key Resources Channels -Industrial brine
producers -Decreased liability producers
-Hydrofracking -People -Better public
operations image FOR -B2B marketing - Electric Utilities (for
-Intellectual
CLIENTS -Possibly energy efficiency
-Chem. distributors property
-Decreased distributors/ investments)
-Chemical Producers conferences
-Brand permitting time ? -Chemical
-Service
-Relationships with distributors
-Other frac water -DOESN’T CAUSE agreements
stakeholders and -Chemical End Users
treatment startups partners EARTHQUAKES -Licensing
-Chemical Producers
arrangements
Cost Structure Revenue Streams
-People -Manufacture / Capital -Royalties from licenses -Chemical sales
-R & D & Prototyping -Operation and -Service contracts -Electricity sales
-Legal fees (IP, Licensing, maintenance -Strategic Partnerships -REC sales
Regulatory) -Sales and Marketing -Brine treatment
contracts
21. Key Partners Key Activities Value Customer Customer
-R & D Propositions Relationships Segments
-Manufacturers -Engineering -Turns waste cost -Service -Water Treatment
-Membrane Mfgs customization into revenue -Customization for Hydrofracking
-Utilities -Decreased -Link to value add (Especially
-Know regulatory Produced Water)
-Regulators disposal costs in industrial
landscape -Inland and coastal
-Engineering firms -Decreased input ecosystem
-Foster relationships desalination plants
-Inland and coastal with stakeholders costs / volatility -Improve public
-Quiet electricity image -Industrial brine
desalination plants -Hiring & retention
on-site producers
-Industrial brine
producers Key Resources -Decreased liability Channels
- Electric Utilities (for
-Hydrofracking -People -Better public
-B2B marketing energy efficiency
operations -Intellectual image FOR
-Possibly investments)
-Chem. distributors property CLIENTS
-Decreased distributors/
-Chemical Producers -Chemical
permitting time ? conferences
-Brand distributors
-Service
-Relationships with -Chemical End Users
-Other frac water -DOESN’T CAUSE agreements
stakeholders and -Chemical Producers
treatment startups partners EARTHQUAKES -Licensing
arrangements
Cost Structure Revenue Streams
-People -Manufacture / Capital -Royalties from licenses -Chemical sales
-R & D & Prototyping -Operation and -Service contracts -Electricity sales
-Legal fees (IP, Licensing, maintenance -Strategic Partnerships -REC sales
Regulatory) -Sales and Marketing -Brine treatment
contracts
22. Key Partners Key Activities Value Customer Customer
-R & D Propositions Relationships Segments
-Service
-Manufacturers -Engineering -Turns waste cost -Customization -Water Treatment
-Link to value add in
-Integrators customization into revenue industrial ecosystem for Hydrofracking
-Improve public image
-Membrane Mfgs -Decreased Oil and Gas
-Know regulatory (Especially
-Engineering firms disposal costs and -Make it easy for
landscape Produced Water)
-Utilities volume them to get rid of
-Foster relationships -Service Providers
-Decreased input their waste
-Hydrofracking with stakeholders for Oil and Gas
costs / volatility -Brand = good PR
operations -Hiring & retention -Oil and Gas
and freshwater
-Service providers Owner/Operators
Key Resources volume Channels
for oil and gas
-Quiet electricity
industry -People
-Intellectual -B2B marketing -Chemical
-Chem. distributors -Better public
property -Possibly distributors
-Other frac water image for clients distributors/ -Chemical End Users
treatment startups -Brand -Decreased conferences -Chemical Producers
-Relationships with permitting time -Oil &gas well
-Environmental stakeholders and service providers
Groups/Regulators partners -DOESN’T CAUSE
EARTHQUAKES
Cost Structure Revenue Streams
-People -Manufacture / Capital -Royalties from licenses -Chemical sales
-R & D & Prototyping -Operation and -Service contracts -Electricity sales
-Legal fees (IP, Licensing, maintenance -Strategic Partnerships -REC sales
Regulatory) -Sales and Marketing -Brine treatment
contracts
23. Met/called or scheduled
Doing… Have connections waiting til connection made
Called no return NEED CONNECTION if you have
please help!
Gas/oil well service providers, engineering
Gas/oil well owner operators
firms and smaller treatment plants/services
What’s in it for them? They want to
What’s in it for them? They want lower costs
lower costs and be on cutting edge of
and to be able to take the market for water
technology, some good for PR, mostly
services/offer better services to clients. They
want a service agreement
want to license/own the technology. Some
Range Resources
plants want a service.
EQT
Hess Corporation Hart Resources
Carrizo Oil and Gas HydroRecovery
Talisman Energy Schlumberger
Chesapeake Energy Chester Engineers
BP Halliburton
Chevron Process Plants Corporation
Exxon Mobil Integrated Water Technologies
CONSOL Energy Aquatech
WPX Venture Engineering
Energy Corp of America
24. Met/called or scheduled
Doing… Have connections waiting til connection made
Called no return NEED CONNECTION if you have
please help!
Membrane and Technology
Developers/Providers Fuel Cell Manufacturers / Developers
What’s in it for them? They want to What’s in it for them? They want to get into a
offer a better/more integrated / cheaper new market, and want a cut of profits /
solution. Likely want to own/license the manufacturing contract / license or own
technology. technology.
Oasys
Lesico
PWA ProFlow
Hart Resource Tech Fuel Cell Energy
Asahi Glass Co. Ballard
Tokuyama UTC Power
MiOx GE Power
GE Water and Power Other OEM’s for these companies in
NanoH2O the area
Veolia Water
Siemens
Aquatech
Ecosphere Technologies
Altela/Casella
25. Learning…
From talking with owner operators this
week:
1. Learned more about pricing
1. TRANSPORT COSTS HUGE
2. Reuse may be dominant for a
few years for many, but looking
ahead
2. Learned about how they deal with
new tech
1. Often want service agreement
which can help with getting
capital
2. Sometimes will put up own
capital
3. Often a little skittish about
talking
3. Would like a full solution…need to
integrate
27. Key Partners Key Activities Value Customer Customer
-R & D Propositions Relationships Segments
-Manufacturers -Engineering -Turns waste cost into -Water Treatment
-Integrators customization revenue -Make it easy for for Oil and Gas
-Membrane Mfgs -Decreased them to get rid of (Especially
-Know regulatory disposal costs and their waste Produced Water)
-Engineering firms
landscape volume -Brand = good PR -Service Providers
-Foster relationships -Decreased for Oil and Gas
-Hydrofracking
with stakeholders transport costs -Oil and Gas
operations
-Hiring & retention -Decreased input Owner/Operators
-Service providers
for oil and gas costs / volatility and
Key Resources Channels
industry freshwater volume
-Oil and Gas -People -Quiet electricity
Owner/Operators -Intellectual -B2B marketing -Chemical
property -Better public -Possibly distributors
-Other frac water image for clients distributors/ -Chemical End Users
treatment startups -Brand -Decreased conferences -Chemical Producers
-Relationships with permitting time -Oil &gas well
-Environmental stakeholders and service providers/
Groups/Regulators -Doesn’t Cause
partners Earthquakes manufacturers
Cost Structure Revenue Streams
-People -Manufacture / Capital -Royalties from licenses -Chemical sales
-R & D & Prototyping -Operation and -Service contracts -Electricity sales
-Legal fees (IP, Licensing, maintenance -Strategic Partnerships -REC sales
Regulatory) -Sales and Marketing -Brine treatment
contracts
28. Next few slides are what we
learned the last few weeks and
where we go from here (ie new
BMC’s and new knowledge from
much more in depth meetings
with folks). End with several
BMC’s that represent different
options for different stages of
the company and development.
