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Entrepreneurship
September 27, 2016
Carbon Footprint for Energy
Management Systems
Carol J. Miller, PhD, PE
Co-Founder, E2i
Professor, WSU
Civil and Env. Engineering
Guoyao Xu,
PhD
Candidate
Dr. Wang,
ECE - WSU
Todd Sykes, LEED
MSCE Candidate
Stephen S. Miller, PE
Co-Founder, E2i
Section Manager,
Commonwealth Assoc.
Loch McCabe
Co-Founder, E2i
President, Shepherd Advisors
Problem description
• Businesses and municipalities want to
manage/reduce their carbon footprint
• Management requires accurate and timely
carbon emissions data
• Carbon emissions data is unavailable
Therefore,
• It is currently impossible to manage carbon
footprint
The solution/product
• LEEM is the Locational Emissions
Estimation Methodology
• LEEM produces a data stream of real-time
emissions specific to the real-time energy
consumption of the business or
municipality
• LEEM data stream is licensed to the user
• Energy/Emissions Intel for Building Energy
Management (and MORE)
E2i
How it works
The customer segment
• Primary customer segment: Energy
Management Systems (EMS) Market
– Specifically, EMS for building owners and
facility managers
• Focus on innovators and early adopters
of EMS for emissions management
– Watt Time, HEPTA/IoT Warez
The value proposition
• EMS companies that use LEEM will be
able to charge more for their management
services. (3-10% upcharge)
• Building owners that use LEEM will be
able to charge more per sq. foot of rental
space to green tenants. (2-5% upcharge)
Competition
• Competition #1: Do nothing; do not
evaluate carbon footprint
• Competition #2: Approximate, inaccurate,
non-specific methods (WattTime)
• Competition #3: Emerging emissions
estimation technologies (OhmConnect)
that rely on historical data and can not be
used for real-time control
Market size
• The EMS market is expected to grow from
$23B in 2015 to nearly $60B in 2020
www.marketsandmarkets.com
• The US carbon management industry is
estimated to be nearly $2B in the US in
2015 www.navigantresearch.com
• The number of corporate
sustainability reports
filed has doubled in past
five years
Commercialization vision
• License data stream
• “Software as a Service”
Development status
• Current development stage: Market Testing and
Validation
• Invention disclosure has been filed with WSU OTC
• Option Agreement and EULA with WSU OTC
• 2 Customers (American Water Works Association
and WattTime)
• 1 Customer in discussion (Hepta/IoT Warez)
Pilot: HCS and IoT WAREZ
• Chrysler House –Detroit
– One of over 50 Bedrock Real Estate Buildings
• Carbon Footprint & Carbon Mgt
1912; 23
Stories
Our commercialization plan
• Stages completed or in process:
– Company formed (E2i)
– Options agreement with WSU
– Initial pilots in place
• Milestones over next year:
– Sign up five paying “try-then-buy” EMS companies
– Develop five Use Cases that demonstrate positive
ROI for building owners and managers
– Secure external validation of LEEM data accuracy
by at least one reputable independent technical
body (Pacific Northwest National Lab – PNNL)
– Develop fully-secured interface for LEEM data
Funding request
• Request of Anderson Institute: $20,000
• Sign up five "try then buy" clients and deliver
use case ROI. Hire Graduate Student 1: Mr. Todd
Sykes, CEE Graduate Student, Expert in LEED
Certification, Energy Management, and Building
Systems. ($10,000)
• Develop fully secured interface for LEEM data.
Hire Graduate Student 2: Mr. Guoyao Xu, ECE
PhD Candidate, Big Data Expert. ($10,000)
Carbon Footprint for Energy
Management Systems
Thank you!
LEEM: Locational Emissions Estimation
Methodology
What it does: LEEM is the first product that can provide a
transparent connection between energy consumption and
emission.
Who cares: Government/regulators (e.g. States; US EPA;
US DOE ) and the regulated industry (power utilities,
manufacturing plants, data warehouses, municipalities,
….any large energy consumer)
LEEM: Locational Emissions Estimation
Methodology
Emission (Carbon) Trading Programs lack a method to convert
known energy consumption to equivalent emission units. The
new emissions market requires these robust tools for power
grid eco-system.
kWh Pounds $$$
LEEM: Locational Emissions Estimation
MethodologyWhy it matters:
• Businesses are increasingly interested in meeting consumer
interest for green energy
• Businesses have a financial $$ incentive to reduce emissions
(Clean Power Plan, Carbon Trading)
• LEEM emissions data can be used time-shift energy use to
times of lower emissions (Water Systems and STORAGE)
• LEEM emissions data can be used space-shift energy use to
regions of lower emissions (DATA WAREHOUSES)
Carbon Trading Market
Potentially huge opportunity in carbon trading
market.
However….even now…..there is a lack of a transparent
link between energy consumed and emissions
generated. This STYMIES the trading market.
Carbon Trading Market - GAP
LEEM Completes Trading Market
ONLY LEEM provides location-
specific and time-specific emissions
Carbon Trading Market Electricity Market
Power Network
Various sources
Different emission rates
Metered
Quantified
LEEM
Energy
Emission
Tracing
Verified
Generation
Side
Demand
Side
0
20
40
60
80
100
120
140
160
180
0:00
1:12
2:24
3:36
4:48
6:00
7:12
8:24
9:36
10:48
12:00
13:12
14:24
15:36
16:48
18:00
19:12
20:24
21:36
22:48
0:00
PollutionEmission(lb)
Date/Time
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0:00
1:12
2:24
3:36
4:48
6:00
7:12
8:24
9:36
10:48
12:00
13:12
14:24
15:36
16:48
18:00
19:12
20:24
21:36
22:48
0:00
PollutionEmission(lb)
Date/Time
NOx & SOx Emission (lb)
NOx
SO2
0
0.000002
0.000004
0.000006
0.000008
0.00001
0.000012
0.000014
0.000016
0:00
1:12
2:24
3:36
4:48
6:00
7:12
8:24
9:36
10:48
12:00
13:12
14:24
15:36
16:48
18:00
19:12
20:24
21:36
22:48
0:00
PollutionEmission(lb)
Date/Time
Hg & Pb Emission (lb)
HG
Pb
Chrysler House Pollution Emission (lb)
Carbon
LEEM Going Forward
• Expanding Geographic Coverage
• Expanding Market Segment
• LEEM as Government/Regulatory Standard

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Miller_Sept27_2016AI

  • 2. Carbon Footprint for Energy Management Systems Carol J. Miller, PhD, PE Co-Founder, E2i Professor, WSU Civil and Env. Engineering Guoyao Xu, PhD Candidate Dr. Wang, ECE - WSU Todd Sykes, LEED MSCE Candidate Stephen S. Miller, PE Co-Founder, E2i Section Manager, Commonwealth Assoc. Loch McCabe Co-Founder, E2i President, Shepherd Advisors
  • 3. Problem description • Businesses and municipalities want to manage/reduce their carbon footprint • Management requires accurate and timely carbon emissions data • Carbon emissions data is unavailable Therefore, • It is currently impossible to manage carbon footprint
  • 4. The solution/product • LEEM is the Locational Emissions Estimation Methodology • LEEM produces a data stream of real-time emissions specific to the real-time energy consumption of the business or municipality • LEEM data stream is licensed to the user
  • 5. • Energy/Emissions Intel for Building Energy Management (and MORE) E2i How it works
  • 6. The customer segment • Primary customer segment: Energy Management Systems (EMS) Market – Specifically, EMS for building owners and facility managers • Focus on innovators and early adopters of EMS for emissions management – Watt Time, HEPTA/IoT Warez
  • 7. The value proposition • EMS companies that use LEEM will be able to charge more for their management services. (3-10% upcharge) • Building owners that use LEEM will be able to charge more per sq. foot of rental space to green tenants. (2-5% upcharge)
  • 8. Competition • Competition #1: Do nothing; do not evaluate carbon footprint • Competition #2: Approximate, inaccurate, non-specific methods (WattTime) • Competition #3: Emerging emissions estimation technologies (OhmConnect) that rely on historical data and can not be used for real-time control
  • 9. Market size • The EMS market is expected to grow from $23B in 2015 to nearly $60B in 2020 www.marketsandmarkets.com • The US carbon management industry is estimated to be nearly $2B in the US in 2015 www.navigantresearch.com • The number of corporate sustainability reports filed has doubled in past five years
  • 10. Commercialization vision • License data stream • “Software as a Service”
  • 11. Development status • Current development stage: Market Testing and Validation • Invention disclosure has been filed with WSU OTC • Option Agreement and EULA with WSU OTC • 2 Customers (American Water Works Association and WattTime) • 1 Customer in discussion (Hepta/IoT Warez)
  • 12. Pilot: HCS and IoT WAREZ • Chrysler House –Detroit – One of over 50 Bedrock Real Estate Buildings • Carbon Footprint & Carbon Mgt 1912; 23 Stories
  • 13. Our commercialization plan • Stages completed or in process: – Company formed (E2i) – Options agreement with WSU – Initial pilots in place • Milestones over next year: – Sign up five paying “try-then-buy” EMS companies – Develop five Use Cases that demonstrate positive ROI for building owners and managers – Secure external validation of LEEM data accuracy by at least one reputable independent technical body (Pacific Northwest National Lab – PNNL) – Develop fully-secured interface for LEEM data
  • 14. Funding request • Request of Anderson Institute: $20,000 • Sign up five "try then buy" clients and deliver use case ROI. Hire Graduate Student 1: Mr. Todd Sykes, CEE Graduate Student, Expert in LEED Certification, Energy Management, and Building Systems. ($10,000) • Develop fully secured interface for LEEM data. Hire Graduate Student 2: Mr. Guoyao Xu, ECE PhD Candidate, Big Data Expert. ($10,000)
  • 15. Carbon Footprint for Energy Management Systems Thank you!
  • 16. LEEM: Locational Emissions Estimation Methodology What it does: LEEM is the first product that can provide a transparent connection between energy consumption and emission. Who cares: Government/regulators (e.g. States; US EPA; US DOE ) and the regulated industry (power utilities, manufacturing plants, data warehouses, municipalities, ….any large energy consumer)
  • 17. LEEM: Locational Emissions Estimation Methodology Emission (Carbon) Trading Programs lack a method to convert known energy consumption to equivalent emission units. The new emissions market requires these robust tools for power grid eco-system. kWh Pounds $$$
  • 18. LEEM: Locational Emissions Estimation MethodologyWhy it matters: • Businesses are increasingly interested in meeting consumer interest for green energy • Businesses have a financial $$ incentive to reduce emissions (Clean Power Plan, Carbon Trading) • LEEM emissions data can be used time-shift energy use to times of lower emissions (Water Systems and STORAGE) • LEEM emissions data can be used space-shift energy use to regions of lower emissions (DATA WAREHOUSES)
  • 19. Carbon Trading Market Potentially huge opportunity in carbon trading market. However….even now…..there is a lack of a transparent link between energy consumed and emissions generated. This STYMIES the trading market.
  • 22. ONLY LEEM provides location- specific and time-specific emissions
  • 23. Carbon Trading Market Electricity Market Power Network Various sources Different emission rates Metered Quantified LEEM Energy Emission Tracing Verified Generation Side Demand Side
  • 24. 0 20 40 60 80 100 120 140 160 180 0:00 1:12 2:24 3:36 4:48 6:00 7:12 8:24 9:36 10:48 12:00 13:12 14:24 15:36 16:48 18:00 19:12 20:24 21:36 22:48 0:00 PollutionEmission(lb) Date/Time 0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0:00 1:12 2:24 3:36 4:48 6:00 7:12 8:24 9:36 10:48 12:00 13:12 14:24 15:36 16:48 18:00 19:12 20:24 21:36 22:48 0:00 PollutionEmission(lb) Date/Time NOx & SOx Emission (lb) NOx SO2 0 0.000002 0.000004 0.000006 0.000008 0.00001 0.000012 0.000014 0.000016 0:00 1:12 2:24 3:36 4:48 6:00 7:12 8:24 9:36 10:48 12:00 13:12 14:24 15:36 16:48 18:00 19:12 20:24 21:36 22:48 0:00 PollutionEmission(lb) Date/Time Hg & Pb Emission (lb) HG Pb Chrysler House Pollution Emission (lb) Carbon
  • 25. LEEM Going Forward • Expanding Geographic Coverage • Expanding Market Segment • LEEM as Government/Regulatory Standard