Funding Innovation in the Nordics - Erik Olsson - Swedish Energy Agency - April 2010

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Talk by Erik Olsson at Nordic Green II Conference

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Funding Innovation in the Nordics - Erik Olsson - Swedish Energy Agency - April 2010

  1. 1. Nordic Green II, Funding Innovation in the Nordics Erik Olsson Department of Business Development and New Venture Projects The Swedish Energy Agency
  2. 2. The Swedish Energy Agency • Established in 1998 • Main Swedish Government Agency for implementing energy policy • Facilitates the transformation towards a sustainable energy system • Promotes new energy technology and energy efficiency, administers Energy R&D programs and disseminates knowledge and information • Mission is to promote the development of Sweden’s energy system so that it will become ecologically and economically sustainable… a smarter use of energy. • 250 employees at the Agency. • Budget 2010: 2.5 Bkr (~ 350 M$)
  3. 3. International • The Swedish Energy Agency is working to promote development in the fields of energy and climate in selected countries • Through bilateral agreements the Agency cooperates, among others, with Brazil, China, India, Ukraine, Poland and the United States on research in the field of energy • ”SAGA”, the Swedish- American Green Alliance • MOU with California
  4. 4. Six Focus Areas
  5. 5. Swedish Energy Agency Primary Energy Resources Energy Carriers Distribution and storage Policy Research Energy Transformation Innovation Energy Services Energy Recycling The Energy System Sustainable use
  6. 6. Policy incentives for energy technology development in Sweden • High carbon taxes for heating since 1991 • Deregulated electricity market since 1996 • Trading certificates based on quotas for use of electricity from renewable production sources since 2003 • Tradable emission permits for CO2 since 2005 • A high system know-how from a policy and technology perspective • Technology solutions that are based on integrated system thinking
  7. 7. GDP in relation to emissions BNP in relation to emissions 160 140 120 CO2e Index yr 1990=100 100 GDP, fixed prices SO2 80 NOx 60 VOC 40 20 0 90 91 92 93 94 95 96 96 98 99 00 01 02 03 04 05 06 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 Year
  8. 8. Financing of Energy Innovations • Supports Research & Development & Demonstration • International mechanisms like emissions trading and CDM/JI • Public procurement Our offer to the start-up companies Offer Tools • Financing • Soft loans • Business Development • Competence • Network • ”Packaging” • Network VERIFIED MARKET & SOLOUTIONS UNIQUE TEAM ECONOMY FOR FINANCE TECHNOLOGY
  9. 9. Good early dealflow - 100 Companies/year - DD Results - Examples - About 15 investments/year
  10. 10. Tanks for your attention! Erik Olsson www.energimyndigheten.se www.swedishenergyagency.se
  11. 11. Three of the major challenges in Sweden today: • “The Swedish Paradox” • Lack of VC Capital for early stage companies • The need of larger amount of money in a early stage
  12. 12. 1. “The Swedish Paradox” • The Good News: – Sweden tops the Innovation Capacity Index Rankings 2009- 2010 (Innovation for Development Report) • Huge investments in R&D and high tech companies do not lead to more innovation, productivity or profit
  13. 13. - “The Swedish Paradox” • R&D is only one of many factors underpinning the knowledge based society • R&D is important, but the objective must be company learning, not more R&D in and for itself • Companies that are able to find, understand and make use of new technology successes • Policy makers must scrutinize all policies that influences learning and innovation in firms, including general framework conditions
  14. 14. 2. Lack of VC capital for early stage companies Critical sector Close the gap!
  15. 15. - Finding other investors! Capital Needs IPO Venture Capital Concentrate Funds Early stage on! and seed venture Business funds Angels Later stage and Friends, less investments! Family & Risk Founders The Agency’s soft loans EBAN -“Business Angel investing across Europe”, 2009-11-21
  16. 16. 3. The need of larger amount of money in early stage • <1 M$ for lab verification • >10 M$ for full-scale demonstrations
  17. 17. - The call for second-generation biofuels and other energy technologies • ~ 40 applications • 5 companies assigned (Chemrec, Södra Cell, GoBiGas, Volvo, Seabased) • Governmental funding total ~100 M$
  18. 18. - Continue the education of the investment community • Hosting seminars and investment forums • Branch building/Networking • Risk sharing initiatives • Publications

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