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SDTC Presentation, John Adams - ONEIA EBOB January 26, 2012


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Presentation provided by John Adams, SDTC during the ONEIA breakfast meeting on January 26, 2012.

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SDTC Presentation, John Adams - ONEIA EBOB January 26, 2012

  1. 1. Ontario Environment Industry Association January 26, 2012 John Adams, Director – Applications, SDTC
  2. 2. Mission “The Foundation will act as the primary catalyst in building a sustainable development technology infrastructure in Canada.”January  26,  2012   2
  3. 3. Mandate •  SDTC is a policy instrument of the Government of Canada to deliver environmental and economic benefits to Canadians. •  As a delivery agent, we foster the development and demonstration of technological solutions that address: •  Clean Air; •  Climate Change; •  Clean Water; •  Clean Land. •  Forge innovative partnerships and build a SD technology infrastructure. •  Ensure timely diffusion - increase number and rate of uptake of technologies into the marketplace across Canada, providing national benefits.January  26,  2012   3
  4. 4. Governance •  SDTC was created by the Government of Canada •  Registered as a not-for-profit, non-share capital corporation under the Canada Business Corporations Act •  Operates as an arm’s length independent organization •  Funding allocation of $1.09B from Government of Canada •  Accountable to Parliament through the Minister of Natural Resources •  15 Directors on the Board, 7 appointed by Canada •  Member Council (15) – proxy for shareholders •  International recognition for this Canadian initiativeJanuary  26,  2012   4
  5. 5. SDTC Snapshot•  SDTC operates two funds: •  $590 million SD Tech Fund™ launched on April 4, 2002. •  Aimed at development and demonstration of emerging clean technologies. •  $548 million allocated to 223 projects. •  $500 million NextGen Biofuels Fund™ was launched on September 12, 2007. •  Aimed at establishment of large demonstration-scale facilities for next-generation renewable fuels and co- products. •  First application currently in due diligence process. The funds are complementary and address different gaps in the Innovation Chain. 5
  6. 6. SD Tech Fund The SD Tech Fund is positioned to address the Pre-Commercial Gap in the Innovation ChainJanuary  26,  2012   6
  7. 7. SDTC Pre-Commercial Validation The SD Tech Fund™ is structured to increase the success rate of pre-commercial, unproven technologies ü  Provides pre-Venture Capital investment into the development and demonstration phases ü  Allows a business to allocate existing resources to run their core business ü  SDTC typically contributes about 33% of eligible project costs ü  Contributions typically range from several hundred thousand to several million ü  Cash contributions are non-repayable and requires no equity ü  Prevents or defers equity dilution financing while building up value ü  Business often becomes venture grade or bankable at the end of the projectJanuary  26,  2012   7
  8. 8. Staged Funding Process The SDTC funding process is structured to facilitate other funding and commercial partnerships: Statement of Proposal Contract Interest SOI Competitive Due Diligence, Investment Review Process Committee & Board Funding Decisions Key Activities: Key Activities: Key Activities:•  Applicant: •  Applicant: •  SDTC works with lead applicant to define • Debrief SDTC on potential project • Applicant uses successful SDTC SOI to get project milestones against which SDTC letters of commitment from consortium payments will be tied • Complete and submit Statement of Interest partners and investors •  Agreement or other binding obligation in •  SDTC: place between project lead and consortium•  SDTC: • Works with applicant to develop full •  Lead applicant and SDTC sign SDTC • Provides feedback on project Contribution Agreement (Contract) proposal • Helps to define project scope •  SDTC disburses first payment (less 10% • Possibly suggests / brokers intros to • Possibly suggests consortium partners consortium partners holdback) Applicant Status: Applicant Status: Applicant Status:•  Proof of concept complete with validation •  Advanced discussions with potential partners •  All project partners and investors formally and investors agree to contributions as set forth in the full•  Patents / IP protection strategy in proposal development •  Commercial and IP agreements in progress •  Commercial and IP agreements are finalized•  Agreement “in principle” from partners & •  Secured letters of commitment investors to participate in the project •  Contract signed, applicant receives first payment January  26,  2012   8
  9. 9. Size of Canadian Opportunity Applications to Date (19 Rounds) • 2,006 applications (>6100 entities) • 90% industry-led • $5 Billion in funding requests • $19.2 Billion in total project value Strong Demand Rate of SOIs remains strong Number of applications constant over last 4 years (+/-10%) Projects Approved (18 Rounds) • 223 projects • $548 Million from SDTC • $1.9 Billion in total eligible project value Numbers as of June 2011 There is significant capability to develop clean technologies and a strong demand in Canada for support from SDTC for the associated companies.January  26,  2012   9
  10. 10. Summary of Project Evaluation Criteria Summary of Key Elements of a Successful SD Tech Fund™ SOI: •  Level of Innovation •  Environmental Co-benefits •  Industry leverage & partnerships (consortium) •  Potential for broad and rapid market diffusion •  Generation of (defendable) intellectual property •  Strategies on how to handle intellectual property •  Inherent technical and / or markets risks •  Strategies to mitigate technical and / or market risks •  Existing SDTC investments (portfolio saturation)January  26,  2012   10
  11. 11. 2012A Call for Applications SDTC is accepting Statements of Interest from February 22nd to April 18th, 2012 •  SDTC supports technologies that address the challenges of Climate Change, Clean Air, Soil and Water, including technology solutions focused on these current priority areas: •  Natural Resources •  Clean Energy •  Agriculture •  Northern/Remote Communities •  Packaged SolutionsJanuary  26,  2012   11
  12. 12. 2012A Webinars The SDTC Applications team will be facilitating a series of webinars in the coming weeks to provide additional information to prospective applicants. I.  SDTC Investment Priorities •  Friday February 17, 11:00am – 1:00pm EST •  Keynote Speaker: Rick Whittaker, Chief Technology Officer, SDTC II.  Regional Webinars •  Dates to be announced (February – March 2012) •  SDTC Applications team to provide details on preparing a winning SOI •  Guest Speakers from government, industry associations or clean tech accelerators to discuss other regional funding opportunities. III.  Tutorial Webinars •  Dates to be announced (March 2012) •  SDTC Applications team to discuss Frequently Asked Questions and respond to selected questions from webinar participants. IV.  Sector Webinars •  Dates to be announced •  Focus on specific industry sectors such as oil & gas and clean transportation •  Speakers to include SDTC Screening and Evaluation team members and guest subject matter experts.January  26,  2012   12
  13. 13. Talk to us before you apply: John Adams David Minicola Director, Applications Manager, Applications 613 234 6313 x234 613 234 6313 x310 Sustainable Development Technology Canada 45 O’Connor Street, Suite 1850 Ottawa, Ontario K1P 1A4 www.sdtc.caJanuary  26,  2012   13
  14. 14. Questions & AnswersJanuary  26,  2012   14