Certification Center forAlternative Energy Applications Presented by Ali Ebadian, Ph.D. CEO, Phiston Technologies, Inc. In Coordination with Chuck Harre, Ph.D. Vice President, CAS – Wyle 25 October 2011
Presentation Overview Certification Center for Alternative Energy Applications • Evolution of Idea for Center • Why the PDN Border Region • Purpose, Goals and Objectives of Center • Business Model • Center Feasibility Study
Evolution of Idea for Center Target Clean US-Mexico April 2010: Presidents Energy, Socio- Calderon and Obama Economic Bilateral outlined Framework Development & Crime Cooperation for Cooperation Reduction for Border Regions Achieve economic growth, while Reduce Crime through Goals for addressing climate Socio-Economic Region change challenges and Development and Job increasing energy Creation security Continue to strengthen existing Rebuild economies civilian and military of communities Strategy law enforcement to crippled by poverty battle organized and crime crime
Evolution of Idea for Center … cont’d. • Expand Region’s Industries, and Create New Ones • Focus on Industries with a Future and Resilience The Needs • Invest in Industries and Jobs of the Future • Create Technology-Driven Jobs of the Future • Take advantage of Region’s Vast Resources and Infrastructure (Immense Alternative Energy Potential, Technical and Manufacturing Decision Capacity, Partners’ Needs) • Alternative Energy Technologies • Evolving Green Economy
Why the PDN Region? SYNERGY: The Perfect Combination of ResourcesAbundant Natural Resources • solar irradiation (among the top 10 in USA) • untapped geothermal resources • good wind & vast land resourcesPremier Academic & Research Institutions • with vibrant alternative energy science & technology programsProximity to US Military Test & Evaluation Facilities • Fort Bliss and White Sands Missile RangeAdvanced Industrial and Manufacturing Hub • border region: one of most globally competitive locations in world
Our Niche:Alternative Energy Certification Center Purpose • Evaluate and certify alternative energy technologies • Provide reliable, trusted technology evaluation and certification • Become repository for alternative energy technology information and data • Facilitate business decisions for commercializing technologies Goals • Attract high tech companies to region & retain regional intellectual capital • Stimulate regional economic development and job creation • Develop profitable business lines for Center to be self-sufficient in 3 years. • Evaluate whether technology meets expectations in performance, cost, benefits and regulatory acceptance Objectives • Assess commercialization potential • Synchronize and integrate the Centers alternative energy initiatives with DoD regional initiatives Conduct performance- and regulatory-based Testing and Certification of Mission Center Alternative Energy technologies that will become the cornerstone for the Region’s clean energy industry by: influencing energy technology policy, inspiring new business development and jobs, encouraging further technology R&D, raising skills of the workforce, attracting youth and untrained workers to prepare for clean energy jobs that provide long-term livelihood and support economic development in the region.
Center Consortium Partners Local Spearheaded by PDNG Businesses Directed by Public & Local Academic Private Sector Members Municipalities Institutions Support from Federal Agencies and Congress Regional Initiative Certification Regional NGOs Econ. Dev. Regional Effort Center Orgs. Regional Benefits Regional Economic Development & Jobs Federal Local National and Agencies Utilities International Impact Federal Facilities
Organizational Structure of the Center• The Center will be led by a Director who will report to an Advisory Board that will be appointed by Center Partners.• The Center will be structured to support its core mission and its principal business units.• R&D will be conducted at partner research facilities and will be independent of the technology certification Center to avoid any real or perceived conflicts of interest. Independent R&D Center Advisory Center Director at Universities Board Technology Workforce Technology Energy Center Center Assessment Training and Transfer & Policy, Legal & Operations Marketing & and Development Commercialization Legislative Management Business Dev. Certification Officer
Business Model • Center Mission • Stakeholders: • Socio Economic Objectives Clients, Workforce, Inventors, EntreprActivities Customers eneurs, Other Targeted Populations • Center Partners: Public/Private • Business Processes: Test, R&D, Demo Sector, Academia, Municipalities, Util and Transfer Techs, Train ities, Economic Development Workforce, Grow Businesses, Create Organizations. Business Jobs, Disseminate Tech InfoPartners Processes • Desired Outcomes/Value Added: • Regional Assets and Resources: Technologies Certified , Workforce Solar, Wind, Land, Industry, Intellectu Developed, Business Growth, Jobs al Capital, Industry, WorkforceResources Outcomes Created, Center Self-Sufficient
Funding for the CenterStartup Funding for the initial three The Center will becomeyears of the Center will be sought Financially Self-from Federal Agencies including: Sufficient by the end of the initial three-year period by developing• DOE: Office of Energy Efficiency and Renewable profitable business Energy - Facilities and Infrastructure Program or a lines for products and Congressionally Directed Project services• DHS: Research, Development, Acquisition, and Operations – Laboratory Facilities• USAID: Economic Growth and Trade• DoD• Other
Center Revenue-Generating Business Units• Supporting •Provide service for Intellectual Property Protection, Trademarking, Patenting Business •Certify Technologies; Manage Repository for Performance Data; Set Processes Standards, Policies •Perform R&D, Engineering to improve technology to meet certification Technologies standards Center tested, improved, certified by Center; Regulatory & Outcomes industry acceptance; IP protected Public & Private Sector Technologies Orgs, educators, workforc demonstrated by public & e investment private sector partners and boards, collaborate on gain consumer recognition; •Work with Tech provider to•Secure Federal, State, Private Sector training and development funding for workforce training Tech Transfer commercialize product, secure strategy for region•Develop and deliver curricula for green funding, grants, GSA workforce training and development •Stage and Administer Large Scale•Work with EconDev Technology Deployment and Orgs, WIBs, Employers to develop Demonstration Project workforce development strategies •Assist with domestic & intl tech transfer, trade shows, conferences, trade missions
Center Revenue-Generating Business Units … cont’d.• To achieve the Business Model outcomes, The Center will implement Technology Technology R&D, Demonstration, Deployment, T several business Optimization, Efficiency processes ransfer, Commercialization• Business processes may Technology Testing & become revenue- Certification, Technology generating business Information Systems units• Business units will be Workforce Training and Policy, Legal, Legislative Development the basis for the Center’s financial self- sustainability after the first 3 years of operation
Alternative Energy Focus Areas Solar Wind Geothermal Smart Grid and Grid Security Energy Efficiency Algae Biomass and Biofuel Landfill Gas Energy Security Carbon Capture Energy Conservation Energy Storage Waste to Energy
Market Feasibility • Is there a need and market for AE Technology Certification? • What is the future of the A/E industry and market? • Who is the Center’s competition? • Does the Center have a competitive advantage? Risk Assessment: Low Increasing trend in long-term investments by government and private sector in AE projects and technology R&D. Financial incentives and government policies encourage expanded use of AE. Investments in Alternative Energy Research and Development (2008-20011). Spike in 2009 reflects additional allocations from ARRA.
Market Feasibility … cont’d. Change Organizations that have received R&D funding Program FY 2011 FY 2012 from FY % Change for 2010 2011ARPA-E 200 250 +50 +25Geothermal 55 34 -21 -38 Solar Private Univer-Innovative Energy Loan Guarantees 380,000 200,000 180,000 -19 sector sitiesNuclear Energy Loan Guarantees 34000 36000 +2000 +6 54% 22%Smart Grid Technologies 39.3 24 -15.3 -39Solar Energy 272 290 +18 +7 NationalWater Power 60 34 -26 -43 LabsWind Energy 123 80 -43 -35 24%Biomass and Biorefining 220 180 -40 -18 Bio-Fuels Geo-Thermal WindPrivate Univer- Private Univer- Private Univer-sector sities sector sities sector sities 35% 36% 27% 17% 20% 34%National National National Labs Labs Labs 29% 56% 46%
Market Feasibility … cont’d. States, Federal Agencies, Municipalities: committed to Renewable Energy Portfolio Standards, Sustainability Plans, Financial Incentives. Breakthroughs in basic science creating growing pipeline of innovative technologies with improvements in conservation, efficiency and generation capacity, cost reduction. Need for technology certification and technology transfer services will expand. Center competitive advantage: Perfect combination of resources within region. Center becomes hub linking technology R&D, Natural Resources, broad base of clients, workforce, manufacturing capacity.
Strategic Feasibility • Will pivotal partners support the Collaborative Center concept? Risk Assessment: Low Starting in July 2010, met with potential partners to get input and gauge interest in Center. Overwhelmingly, the Center was perceived as adding positive value to the region’s expanding alternative energy industry. Border Environmental Cooperation Commission Fort Bliss City of El Paso REDCo Colegio de la Frontera Norte MVEDA Comission Federal de Electricidad NMSU Congressman Reyes and legislative staff Senator Bingaman’s Energy Staff Department of Energy International and Policy Tecnologico de Monterrey Office UACJ Department of Energy Office of Small Business and UTEP Utilization White Sands Missile Range El Paso Electric
Financial Feasibility • Can funding for the Center be secured? • What will the strategy be? • What are possible sources, amounts, and timing? Risk Assessment: MediumPursuing funding for Congressionally Directed Project (CDP).Aggressive legislative strategy in place to improve chances. •Department of Energy (DOE, Office of Energy Efficiency and Renewable Energy - Facilities and Infrastructure Program •Department of Homeland Security (DHS), Research, Development, Acquisition, And Operations – Laboratory Facilities •Department of Defense (DoD)Energy Management in Fixed Installations under Energy and Reliance on Fossil Fuels program •US Department of Labor, Employment and Training Administration •US Agency for International Development ( USAID)Diversified funding base needs to be pursued.Funding challenge for Mexico R&D and projects. •Possible sources include USAID as well as other Mexican Federal and State agencies.
Technical Feasibility • Can the essential technical components of the Center be created.? • Are necessary resources available? Risk Assessment: Medium-High Region rich in natural resources (solar, wind, geothermal). Partners bring wealth of technical expertise. Motivated entrepreneurs and workforce due to emerging business opportunities. Large cadre of trainable workers for new clean energy industry. Security in Mexico presents risk to business development. Risk of businesses relocating from area; fear to relocate to area. However, perceived as improving situation.
Organizational Feasibility • Business, legal, organizational structure? • Will it be possible to attract persons with the right skills and experience to staff the Center. Risk Assessment: LowEl Paso region makes sense as all components and resources are in place; only physical facilities are needed for theCenter.Center will be established as a non-profit organization.Region has strong business and industrial infrastructure.Center will need to acquire expertise in technology-based business development and project management.Security situation in Mexico will present challenges for cross-border collaboration, but situation not seen aspermanent.Highly skilled science and engineering resources available to Center.
Engineering Feasibility• Can facilities to house the Center be acquired (purchased, rented or built)?Risk Assessment: Low Large inventory of suitable commercial properties and property owners motivated to negotiate. Possibility of obtaining land and/or facilities from Army. El Paso is central to the region, convenient to major clients and partners, has good modes of transportation, and is appropriate for locating the Center.
Operational Feasibility• How well will the proposed Center and associated processes contribute to solving Socio- economic problems in the region?• Can the desired socio-economic benefits to the region be attained?• Are the benefits greater than the cost?Risk Assessment: MediumBusiness model maintains focus on creating attractive business environment for entrepreneurs throughproduct and service development, incentives and workforce training.The emerging clean energy industry will attract eager entrepreneurs, small businesses, and investors tocompete in this new arena.Security may be inhibitor on Mexican side of border which is key to manufacturing and international trade.Economic impact in terms of $$$ and jobs created, to be determined.
Schedule Feasibility• How reasonable is the project schedule?Risk Assessment: Medium Risk to project schedule is securing funding in a timely manner. Also risk of not being “first-to-market”. For Congressional funding, including a CDP, the earliest money would be available would be during FY 2012, which begins on 1 Oct 2011. For other sources, money may be available earlier. Until federal funding is available, it will be necessary to find seed money to keep the process and momentum of establishing the Center on track. PDNG will continue to work with USAID to provide such money. Within USAID, there is a program, Economic Growth and Trade. Other sources that can be pursued include: Department of Defense, Test bed technologies program as well as Department of Energy, Advanced Research Projects Agency (ARPA–E) .
Center Creation Timeframe • Feasibility Study (3 months) Assess the Viability and Potential for Success of Center, including identifying potential partners and sources of Phase 1 funding for the Center • Implementation Plans (6 months) Develop Plans for Critical Activities to Create Center Phase 2 (Market, Technical, Financial, Organizational and Strategic) • Mobilization (4 months) • Begin Implementation • Acquire Key Hires Phase 3 • Initiate Construction of Center
The Next Steps Phase II Phase III Subsequent Phases Pursue Funding Mobilize Resources Construct Center Prepare Business Plan Obtain Accreditation Center Form Partnership(s) Begin Technology Testing Prepare Marketing PlanBegin Hiring Key Personnel Prepare Site Plan(s)
Contact Information Ali Ebadian, Ph.D., CEO Chuck Harre, Ph.D., Vice President Phiston Technologies, Inc. CAS – Wyle 3300 NW 112th Avenue, 13 Founders Boulevard, El Paso, TX 79906 Suite # 3 Miami , FL 33172 (915) 903-779-6458 Chuck.Harre@Wyle.com (786-325-4577) AliEbadian@Phiston.com