Australia has a strong foundation in clean technology research but faces challenges in commercialization, leading to reliance on investment from other countries like China, which dominates the clean energy market. Key opportunities for Australian firms include solar, biofuels, and water technologies, despite a historical lack of funding and entrepreneurial activity. Collaborative efforts and initiatives like the Clean Tech Business Accelerator (CTECHBA) aim to bridge these gaps and harness synergies within the clean tech sector for growth in both local and international markets.

1. China and clean technology implications for Australia Nigel Hennessy

2. Innovation Challenge

3. Australian Commercialisation LandscapeSource: OECD, Main Science & Technology Indicators, Vol 2010/1

4. Australian Commercialisation Landscape (2)Source: a. OECD, Main Science & Technology Indicators, Vol 2010/1b. OECD, Measuring Innovation: A New Perspective, 2010Source: a. OECD, Main Science & Technology Indicators, Vol 2010/1b. OECD, Measuring Innovation: A New Perspective, 2010

5. An Innovation Challenge exists for Australian firms:Australia is comparatively strong in R&DSystemic lack of funding in the seed stageLack of fundingLack of EntrepreneursThe Innovation Challenge

6. CleanTech Commercialisation Challenge

7. 42% of global emissionsUnilateral Climate Policies

8. The CleanTech OpportunitiesGlobal Clean-tech Needs for a Low-carbon EconomyLow carbon materials/plastics/carbon fibre, low carbon steelBiofuels, waste recycling, efficient home design, Agricultural/food seeds and technologiesEfficient Transport/Logistics - cars, planes, trains, shipsClean energy (biomass, geothermal, wind, solar, thermal, wave/tidal) Energy storage technology, advanced battery technologyInfrastructure for low carbon economy (rail, roads, gas networks, transmission grids..) Water purification technology, energy efficiency/automated systems/IT softwareCarbon financial markets

9. Carbon CycleAustralia is one of the biggest carbon producers in the world, BUT it is a nation that is uniquely placed to lead the world in clean and sustainable technologies:-Australia has some of the longest hours of sun shine – solar powerAustralia is constantly under threat of drought – water technologiesAustralia is big and surrounded by oceans – tidal/wave energy sources.One of the biggest producers of Agricultural products - BiofuelsAustralia is a major producer of coal – remove dependency on carbon fuelsAustralia has some of the best research in the world in sustainability.9

10. Australian CleanTech is world leading …BUT… we are falling behind!We don’t turn R&D into commercial products very wellBig investment in R&D but little in commercialisation Only 8 companies achieved funding through VC’s in 2009 in the clean space.Most investment, when it does occur, is in INFRASTRUCTURE and not commercialisation of technology.China’s Clean Technology

11. China’s CommitmentsObjective: 45% carbon intensity reduction by 2020Carbon intensity = carbon emissions per unit of GDPBackground: Since 2003 China’s carbon intensity was going up - meaning carbon was growing faster than economy!How are they to achieve this?15% renewable energy target

12. Just became 2nd largest wind power producer and among the top solar producers

13. First electric car company

14. Diversify away from coal (renewables, hydro, gas and nuclear)China Surges Ahead in Private Clean Energy Investment$US billionsChina ($34b)Chinese clean energy surged 53%in 2009 to $35b China investment double that of the US ($18b)

15. China’s Current StatusEnormous investment by China and change in directionLeads the world in clean-energy investment growthCurrently at $35billion pa, 53% growth in 2009Ambitious 2020 carbon intensity target (45% reduction)40GW of carbon-neutral energy built in 2009 (Australia’s entire energy supply +30%)Electric cars expansion and carbon neutral cities

16. China/Australia R&D ComparisonSource: OECD, Main Science & Technology Indicators, Vol 2010/1Australia spends proportionally 6 times more on Basic Research. Correspondingly, China spends significantly more money on DEVELOMENT as opposed to RESEARCH compared to Australia. Around 80% of all funding in R&D in China is on DEVELOPMENT.

17. Opportunities in ChinaGlobally No. 1 largest market for renewable energy investment PV, wind turbine, ethanol biofuel, solar water system productionsHydro powerCDM projects, Super-critical and ultra super-critical (high efficiency) thermal coal plants constructedHuge investment proposed for environmental protection water treatment (sewage/river courses/lakes) garbage treatment air pollution control environmental monitoring for pollution emissions/water quality

18. 10 KEY Energy Efficiency Programs of Chinese GovernmentUpgrade coal-burning industrial boilers (kilns) Local cogenerationMake use of exhaust heat and pressure Save and replace petroleum Energy conservation in electrical motors Optimization energy system-through system optimization design, technical renovation and improved management, to reach energy efficiency in key energy intensive industriesEnvironment-friendly lighting-candescent lamp to light emitting diode (LED) and high intensity discharge (HID) lamps. Energy conservation in governmental departments Energy conservation in buildings -50 percent energy saving in residential buildings and public structuresBuild energy monitoring and technical service system

19. Future CleanTech Investments

20. Clean Tech?The Accidental EnvironmentalistCleanTech InvestmentsThe world is accelerating towards a low-carbon economy. China is today in the driving seat.IF Australia doesn’t try and take advantage of the new technologies we will be left behind.

21. CleanTech Business Accelerator (CTechBA)

22. Formation of CTechBAThe Australian market suffered with:-Lack of InvestmentLack of capabilitiesLack of understandingLack of commitmentRecognising the problems, CTechBA was formed by a group of concerned senior executives with skills in:-Clean TechnologyExecutive ManagementInternational Sales and MarketingInvestment Banking

23. Our Differentiators

24. Typical Problems facing an Emerging Company BEFORENo ImprovementsNo MoneyNo PlansNo TimeNo KnowledgeGlobal OpportunitiesCompetition

25. Typical Development PhasesCritical Phases for SuccessTraditional Funding Arrangements3F’s and GrantsAngelsVC’sPE’sVC’s taking lower risks and Angels less willing or able to invest larger sums has created a gap – the “Valley of Death” Current Funding Arrangements3F’s and GrantsAngelsPE’sVC’sStart-UpNew Idea

26. 3 F Funding

27. No revenueTime

28. Typical Problems facing an Emerging Company AFTERNo ImprovementsBusiness DisciplinesNo MoneySource FundingAndSalesPlanningAndStrategyNo PlansResourcesNo TimeMarket ResearchMarketingNo KnowledgeGlobal OpportunitiesCompetition

29. Some Client Examples…All of these will be looking towards China for investment, sales and partners.

30. Solar PaintOrganic PV (OPV) material can be made into a paint or into a thin film. As a film it can be used to tint windows and create energy at the same time. Expected cost will be around $0.15 per kwh compared to $0.70 for silicon based PV.Current market for PV is $32B per year.Product is still at prototype stage and is pre-commercial

31. BSmartRecycled Bricks and Pavers. Takes rubbish from a building site and creates bricks or pavers locally.Prototype built and has made several thousand bricks on a commercial basis. Smart water fund with Melbourne water to use dried processed sewage to make bricks.Currently looking at using pavers to store hazardous products such as lead dust.

32. Average cost of bricks and pavers are lower than standard bricks and pavers WindesalInnovative Wind and diesel driven RO based Desalination system.Hybrid power control system using wind and a diesel motor reduces carbon emissions by as much as 85% compared to conventional desalination systems. Current test site is expected to create drinking water from an aquifer at a rate of 3-5GL per year.With water security an issue world wide, Windesal provides a localised solution.

33. PixaluxLED based lighting for Advertising Boards and specialty lighting.Unique lighting solution based on 12V LED lights and acrylic with a diffuser matrix printed on the surface provides homogenous lighting panels ideal for display boards as well as shelving and back-panels for desks and furniture.Already sold products to the Australian Museum and have a number of other clients and partners under discussion.

34. CTechBA’s ‘Real Value’Since we manage a diverse and varied portfolio often we get synergies between own clients which can be exploited:-We are speaking to a biofuels company using algae. Windesal can use brine from the discharge of their RO system to feed an algae lake to make biofuels.We are using Bsmart and Pixalux in a proposal for eco-housing design. We also have a ‘green’ cement company in our portfolio as well. Later, we shall include Solar Paint and another client in Water Storage.As our portfolio gets bigger we look for synergies and opportunities for all our clients to create ‘total solutions’.China we see as an important part of our overall strategy for developing the businesses as well as sourcing capital.

35. SummaryHistorically not been good at commercialisation, although CTechBA will make progress in this area.Clean Technology provides a new opportunity for Australian technology and for entrepreneurs to develop world-leading technology markets.China is a substantial player in the clean technology space which is likely to grow a lot more than the rest of the world over the next 10 years and more.Therefore there are GOOD opportunities for Australian Clean Technology companies in China and for cooperation with Chinese companies BUT we cant afford to be complacent.