1. # of customers: ~85 people
Hydrogen sensors in Chlor-alkali
Dr. Jason Gu
Co-founder / CEO
jasongu.sensevere@gmail.com
412-370-8293
1
2.
3. Founding Team 3
Dr. Jason Gu Principal inventor
CEO and Entrepreneurial Lead
Dr. Peter Foller Former Director of R&D Chemical and Optical, PPG Industries
Market Exploration and Acquisition
Prof. Robert F. Davis Professor of Materials Science, CMU
National Academy of Engineering
Advisor and Mentor
Prof. Lisa M. Porter Professor of Materials Science, CMU
Technological Development and Principal Investigator
Mr. Jacob Melby Graduate Student, Carnegie Mellon University
Principal Engineering Specialist
4. Major Commodity Market – Chlorine Production
4
Thorn in the lion’s paw (184 incidents in Europe, 4yrs)
Plant cost: $1B
Co-produced
H2 + Cl2 =
5. [Current Standard-Operating Procedure]
Once a week monitoring 5
VS
[Innovation]
Real-time data
[H2]
Licensed Novel technology
Hazardous Industrial Environments
6. Partnership with dominant technology provider in C/A.
6
Product development 66% completed.
Customer pilot plant test approved. Plant visits.
Market survey sent out to C/A plant managers
7. Explored Item
Contract Design Product 7
H2/HC Monitoring Provide Severe
Shops Development
In Severe infrastructure Environment
Suppliers/ Production Environments Operators
Component
Manufacturers Applications
sourcing
Efficiency
Research
Chlorine
Institutes and Regulatory/Insuran
Production
Journals ce
Domain Suppliers
IP and Expertise Direct
Regulatory and
Government Capital Assets Domain Specific
Suppliers
Distributors
Supplier Monitoring
Fixed Economics Sensor Sales Services
Sales and
Royalties
Marketing
8. Value Propositions 8
‘Need-to-have’s ‘Nice-to-have’s
Detects specific species (typically ratio Extreme kinetics and sensitivity
of species) Wireless (if low volumes)
Sufficient kinetics and sensitivity Low-cost
Signal reliability (no false Extremely Long-lasting
positives/negatives) Detection of other species
Wireless (if high volumes) Low-power
User interface (if software)
Visualization of data
Can be display on sensor or even
warning LEDs
Sensor lifetimes matching replacement
cycle of another more crucial part
It only has to work, and be easy to use.
9. Accepted Explored Item
Contract Design Product 9
H2/HC Monitoring Provide Severe
Shops + Development
In Severe infrastructure Environment
Suppliers/Manufa Operators
Production Environments Component
cturers
sourcing Domain Specific
Research Efficiency
Suppliers
Institutes and Regulatory/Insuran (especially if R&D
Journals ce is needed)
Domain Suppliers, Applications
Minimum Viable
Regulatory and
Product
Government IP and Expertise Direct Chlorine
Reliably detect Production
Capital Assets species of interest Domain Specific
Suppliers …
Easy to use
Sync with other
Distributors
cycle
Wireless(if volume)
Supplier Monitoring
Fixed Economics Sensor Sales Services
Sales and
Royalties
Marketing
10. Channel Interviews 10
1. C/A Partner
1. Regional
1. Director of R&D
2. Director of Marketing Emerging Markets Interviews
3. Director of Product Service
1.Jonathan Levine, Hydrate Researcher
4. Senior Acct Managers
5. R&D Engineers 2.NETL Methane Hydrate RG
2. Global 3.Berkeley sensors group
1. CTO
2. Jeff Farbacher, CEO Accutran
3. Charles Noll, Marcellus Shale Development Group
4. Former GE Employee
5. Tim Fogarty, Director of IW Energy
6. Ed Faust, Global Marketing, Siemens
7. Dr. Bob Lad, President of Environetix
11. Understand Economics of Plant + Sensors Industrial Plants
Understand Economics of Technology Supplier Plant #1
Plant #2
Plant #3
Technology Supplier
Who does this?
12. Accepted Explored Item
Contract Design Product 12
H2/HC Monitoring Provide Severe
Shops + Development
In Severe infrastructure Environment
Suppliers/Manufa Operators
Production Environments Component
cturers
sourcing Domain Specific
Research Efficiency
Suppliers
Institutes and Regulatory/Insuran (especially if R&D
Journals ce is needed)
Domain Suppliers, Applications
Minimum Viable
Regulatory and
Product
Government IP and Expertise Direct Chlorine
Reliably detect Production
Capital Assets species of interest Domain Specific
Suppliers …
Easy to use
Sync with other
Distributors
maint. cycle
Wireless(if volume)
Supplier Monitoring
Fixed Economics Sensor Sales Services
Sales and
Royalties
Marketing
13. 13
Diaphragm Membrane
$240/MT Cl2
Operational conditions
Capital cost per incident
Downtime per incident
# of cells protected Cost of damages + downtime per incident per year
Time between incidents
Number of cells, US and worldwide
Value per unit per year
Diaphragm Membrane Membrane Header
$2,500 $270 $10,600
14. Soft product launch projected for Q1-Q2 2012 14
General launch projected for Q4 2012
Diaphragm Membrane Membrane Header
$2,500 $270 $10,600
Year Type % Revenue [/year]
1 Innovators (US) 2.5 $271,500
Operating costs for 1st year projected to be $350,000
2 Early Adopters 16 $15,040,000
3 Early Majority 50 $47,000,000
4 Late Majority 84 $78,960,000
Full Penetration 100 $94,000,000
15. Fragmented technologies and market
15
ensors market
2011: $5.6B (US) $15B (World)
2014: $6.1B (US) $20B (World)
Hydrogen in Chlorine: $94M
Hydrogen in [Fluorine, Bromine, Iodine]
Hydrocarbons in high pressure (methane hydrate exploration)
Hydrogen + hydrocarbons in high temperatures (refineries)
Wireless transmission of temperature data at high temperatures (quality assurance)
pH and temperature in acidic solutions (steel making)
Hydrogen + hydrocarbons in anaerobic conditions (transformer gas monitoring)
…..
16. Next Steps 16
• NSF SBIR Phase 1 Submitted
• Product launch in chlor-alkali market
• New markets
• Grow, Grow, Grow….
18. Sensors for improved
process control in
Idea severe environments 18
Deployment of sensors
in severe environments is very
difficult.
represents severe environment sensing
technologies and products aimed to serve
energy production/generation and
commodity chemicals
20. Low Volume / High Customization
Where do they get their sensors?
Specialized systems distributors
Will fund R&D
Existing channel into markets
Specialized sensor providers
Industry technology providers
Will fund R&D
Excellent channel into specific market
Current Chlor-alkali Partner
21. Direct Sales Distribution Partnership Licensing
Direct Marketing Specific industry supplier Specific industry supplier
Possible if localized [Chosen path for H2 in C/A] Depends on product 21
customer base – Very If no overlap in product control
difficult offering, then great deal If no control, then bad
Very difficult to gain Will fund research and arrangement. No
internal approval for development to add to their guarantee on service
infrastructural product offering or QC
applications Generally no desire to enter If control, then can be
broader market a good arrangement
Sourcing Agency Strong ties with market
Not possible if there is
competition from a Sensor distributor Sensor distributor
larger supplier Potential source of Potential source of
Agency will not risk competition if marketing direct competition
relationship with bigger similar product If allow them to access
firm if only for a If allow them to access different branch of
marginally better different branch of market, market, then OK
product then OK
End Users
22. Value Add Interviews 22
• Industry clients
– Chlor-Alkali Partner
– Dr. Peter Foller, Former Director of R&D, PPG
– Former C/A plant employees
• Domain Experts
– Prof. Ruby Ghosh
– Prof. Anita Spetz
– John Matsumura
– John Crofton
– Former employee of hydrogen sensors company
– Dr. Harpreet Gulati
– I2T Consulting Services
– Chevron Advanced Technologies
23. Interviews 23
1. C/A Partner
1. Global Director of Technology Seek,
2. Regional Engineers, Senior C/A
Client Manager
2. Dr. Peter Foller, Former Director of
R&D chemical and Optical, PPG
3. Tim Fogarty, Former Director of IW
Energy Emerging Markets Interviews
4. Ann Truschel, Corporate Insurance 1.Dr. Gary Hunter, NASA Glenn
Broker Research Center
5. Gerald Driggs, Ground Floor 2.Frank Stienke, Schlumberger
Consulting Affiliate
6. Custom semiconductor grower 3.Eilis Rosenbaum and Jonathan
7. Funding organization Levine, Hydrate Researchers
4.Pine Liu, Entrepreneur in Smart
Sensor Monitoring
5.Jim Miller, CMU Researcher
24. Each step process has different risk premium associated
Detection limit of the sensor required is different for each
step of the process. Discussions are in cell technologies
#GOAL
Price the same product differently based on what we protect as opposed
to an agglomerate value add.
Cell Technologies
Liquifaction
Current Measurement
Gas chromatograph
Drying Towers
25. Contract Design Product 25
H2/HC Monitoring Provide Severe
Shops Development
In Severe infrastructure Environment
Suppliers/ Production Environments Operators
Component
Manufacturers Applications
Safety sourcing
Research Chlorine
Institutes and Efficiency Production
Journals
Environmental
Domain Suppliers
IP and Expertise Direct
Regulatory and
Government Capital Assets Domain Specific
Suppliers
Distributors
Supplier Monitoring
Fixed Economics Sensor Sales Services
Sales and
Royalties
Marketing
26. Potential Product Offerings 26
Diaphragm Membrane Membrane Header
Sensitivity 0.1 vol.% 0.5 vol.% ?
Response Time < 5 sec. < 30 sec. ?
Data Transmission Wireless N/A ?
Power Supply Scam + Batteries External ?
Display LCD LED Indicator ?
Longevity 1 year 1 year ?
Assay H2, H2O H2 ?
Price $2,000 $250 $8,000
27. C/A Distribution Partner Margin = 20%
27
Total Revenue for
is $58,600,000
Diaphragm Membrane Membrane Header
Price $2,000 - $2,000
World (include US) 26,400 - 2,900
Year Type % Revenue [/year]
1 Innovators (US) 2.5 $271,500
Operating costs for 1st year projected to be $350,000
2 Early Adopters 16 $9,376,000
3 Early Majority 50 $29,300,000
4 Late Majority 84 $49,224,000
28. #KILLER APP
Chlorine production
#GOAL
Achieve sales in both ends of the spectrum and all other applications fall within
possible demonstrated capability
Laboratory Industrial
1. Hydrate research 1. C/A
2. Micro-temperature 2. Transformer gas
measurement and monitoring
heating 3. Wireless smart building
3. Wireless smart control
building control
29. Contract Design Product 29
H2/HC Monitoring Provide Severe
Shops Development
In Severe infrastructure Environment
Suppliers/ Production Environments Operators
Component
Manufacturers Applications
Safety sourcing
Research Chlorine
Institutes and Efficiency Production
Journals
Environmental
Domain Suppliers
IP and Expertise Direct
Regulatory and
Government Capital Assets Domain Specific
Suppliers
Distributors
Supplier Monitoring
Fixed Economics Sensor Sales Services
Sales and
Royalties
Marketing
30. Contract Design Product 30
H2/HC Monitoring Provide Severe
Shops + Development
In Severe infrastructure Environment
Suppliers/Manufa Operators
Production Environments Component
cturers
sourcing Domain Specific
Research Efficiency
Suppliers
Institutes and Regulatory/Insuran (especially if R&D
Journals ce is needed)
Domain Suppliers, Applications
Minimum Viable
Regulatory and
Product
Government IP and Expertise Direct Chlorine
Reliably detect Production
Capital Assets species of interest Domain Specific
Oil and Gas
Easy to use Suppliers
Power
Sync with other
Distributors Infrastructure
cycle
Wireless(if volume) …
Supplier Monitoring
Fixed Economics Sensor Sales Services
Sales and
Royalties
Marketing
31. Contract Design Product 31
H2/HC Monitoring Provide Severe
Shops + Development
In Severe infrastructure Environment
Suppliers/Manufa Operators
Production Environments Component
cturers
sourcing Domain Specific
Research Efficiency
Suppliers
Institutes and Regulatory/Insuran (especially if R&D
Journals ce is needed)
Domain Suppliers, Applications
Minimum Viable
Regulatory and
Product
Government IP and Expertise Direct Chlorine
Reliably detect Production
Capital Assets species of interest Domain Specific
Oil and Gas
Easy to use Suppliers
Power
Sync with other
Distributors Infrastructure
maint. cycle
Wireless(if volume) …
Supplier Monitoring
Fixed Economics Sensor Sales Services
Sales and
Royalties
Marketing