Copenhagen Round Up

After two weeks of talks the Copenhagen Climate Change Summit slumped to an unimpressive finale as countries failed to sign a legally binding contract to replace the Kyoto Agreement. What was produced in place of this was the 'Copenhagen Accord' an agreement backed by a majority of countries that constitutes an immediate move towards combating climate change. Commitments of the accord include

o Backing for an overall limit on global warming of 2 degrees Celsius
o Agreement that all countries need to take action on Climate Change
o Provide $30 billion of immediate short term funding from developed countries over the next three years to kick start emission reduction measures and help the poorest countries adapt to the impact of climate change.
o Commit developed countries to work to provide long term financing of $100 billion a year by 2020, a figure first put forward by Prime Minister Gordon Brown in June of this year.

On the night discussions ended Prime Minister Gordon Brown vowed that the UK would be leading the efforts to reach a legal treaty as early as possible in 2010. As parliament has now risen for Christmas no statement can be made to the house until January. UN Secretary General Ban Ki-moon agreed in the importance of generating a legally binding agreement stating that one must be signed next year.

So what went wrong? The majority of fingers are being pointed at China who vetoed agreements for a 50% reduction in global emissions by 2050 and 80% reductions from developed countries. China's Foreign Minister, Yang Jiechi, attributed this to differences in basic national characteristics and development stages.

Lines were drawn between developed and developing stages throughout the conference with proceedings stopping and starting and Danish officials being accused of bias. The outcome from the two sides has also been welcomed very differently: Developing countries such as China and Indonesia - said by the BBC to be the worlds third largest emitter after USA and China if deforestation is accounted - have praised the accord with AFP reporting Indonesia's president, Susilo Bambang Yudhoyono commenting, 'Indonesia is pleased as [we have] taken a wholehearted stance to save our Earth to save the children in our country'.

Developed countries have quite different views on the outcome. Ed Milliband, Minister for Energy and Climate Change is reported by the BBC and Guardian to have referred to the talks as a chaotic process and to have accused countries such as China, Sudan and Bolivia of holding the world to ransom.

But what does the Accord mean for the CleanTech Sector? The need for a transition to a low carbon future has been agreed and new technologies will be needed in order to achieve this. The $30 billion investment into immediate short term funding and help for poorer countries will be used in part to provide economically underdeveloped countries with the technology required in order to reduce their emissions, creating opportunities for the providers of such technologies. This will in turn provide companies with the revenues required to invest in the development of their technologies. And the investment will not stop there the $100 billion a year from 2020 will not only go towards the installation of existing technology but the development of new devices having a positive impact on the sector as a whole.

ANGLE Plc are a Carbon Trust incubator partner based in Guildford but who assist start-up organisations throughout the UK develop there low carbon innovations via their virtual portal. Always on the look out for companies that have the potential to be included in their Carbon Trust funded incubator scheme. We speak to Michael O'Brien to discover more about the company and how they may be able to help innovators facing the obstacle of attracting early stage funding.

When was ANGLE Plc founded and what are the various activities it's involved in?

Founded in 1994, ANGLE is an international venture management company focusing on the commercialisation of technology and the development of technology-based industry. ANGLE creates, develops and advises technology businesses on its own behalf and for its clients.

ANGLE's specialist Management services business provides consultancy and programme management services to major public and private sector clients, primarily in UK, US and Middle East. This work involves new venture creation and incubation, SME innovation and business growth support programmes, IP commercialisation, and the planning, establishment and operation of science & technology parks.

ANGLE also owns a portfolio of IP based companies with high growth potential in the medical and technology sectors in both the UK and the US. These have been developed whilst subsidiaries of ANGLE. ANGLE retains a substantial shareholding in these companies with a view to ongoing returns from dividend, milestone, royalty and capital returns.

When did it become a Carbon Trust Incubator Partner and how did this come about?

ANGLE has delivered incubation support services for the Carbon Trust since 2004/5 following successfully competitive bids to be an incubator delivery partner. ANGLE has also won other projects advising the Carbon Trust on IP and technology commercialisation before and during this period.

How many businesses are currently progressing through the incubator scheme?

We have around 9 businesses within the (virtual) incubator, all at different stages, and therefore requiring different kinds and levels of support with about half having received the bulk of the allocated support. In addition we have 3 new companies accepted pending admission.

What is your specific role in the development of companies?

ANGLE will provide consulting support for technology commercialization in a number of areas from assistance with market investigation and engagement through to preparation for fund raising. All our support aims to help companies grow and commercialise their technology. This may be to progress toward a significant licensing deal, market entry or early expansion, or to reach a point where they are 'investor ready' and able to raise funds (generally venture capital).

A solid understanding of the market opportunity and prospective clients or partners is one of the most critical areas for any new technology based business and an area where we often help. This can involve identifying a range of opportunities open to the technology, a broad look at the potential value added in each area, and then in-depth investigation into one or two areas where we see the most potential including understanding the supply chain, opportunities for value capture, and points for market entry.

Aside from market investigation and engagement, other support can include areas such as IP (assessing risks and opportunities); commercial strategy, business and resource planning (creating a roadmap for growth); funding strategy (how much to raise, milestones, investor targeting).

Do ANGLE specialise in certain areas of low carbon technologies?

ANGLE has experience in most 'low carbon' technologies on both the demand side and generation side. This includes industrial processes, energy efficiency, low-carbon materials, energy efficient buildings & construction techniques, waste treatment, renewable energy: wind, marine, biomass, biofuels, fuel cells, and solar. We have considerable experience in-house, but complement that through our network of associates. We will source further specific expertise, if appropriate, for a specific client.

What can an innovator expect from involvement in the incubator?

Innovators are tapping into a wealth of experience, not just with low carbon technologies, but probably more importantly, early stage technology companies. ANGLE has created a number of its own early stage technology companies (our 'ventures' arm) and successfully support them through to market entry or involvement of new funders and commercial partners. Hence we have first hand experience of building successful technology companies from scratch.

ANGLE likes to ensure that support we provide is of direct practical use to companies. We provide a mix of formal consulting reports and hands-on support work for the management team of the ventures we work with - we don't just advise we aim to deliver work which moves the company forward. For example, were appropriate we use our market research activity to find trial site or prospective "first client" opportunities for companies in the incubator.

When assessing applications to join the incubator what is the single most important thing you're looking for?

The Carbon Trust has a number of criteria for entry into the incubator. These include having a protectable innovation (i.e. preferably patented) with significant commercial potential, a strong long term 'carbon case', and a solid team behind it. All of these are important - although the right team is probably the area where we look most closely. It is worth noting that a company which recognises it needs to develop the right team and wants support with these changes, will also be considered.

Do the various incubators work together or is there a competitive element between them?

To some extent we compete to find the best companies to join our incubators, but for the most part we are collaborative and share ideas. We have worked together on projects to ensure that the most appropriate experience is provided to the incubatee.

Does each incubator take on a different role and would innovators with particular needs be better suited to a specific provider?

The incubator delivery partners are slightly different. The Carbon Trust has looked to ensure that incubators have a range of skills to meet the broad requirements of all potential low-carbon incubatees. ANGLE expertise is probably most focused on market assessment, commercial strategy, business planning, and support for fund raising. While we are less likely to provide design help to develop new products, we will advise on the product development process and design for manufacture considerations. I'd suggest innovators just give us a ring and we can talk through their challenges.

How many companies have graduated from the ANGLE Carbon Trust Incubator?

ANGLE has worked with over thirty clean-tech ventures in renewable energy, industrial process efficiency, materials, biofuels, and built infrastructure sectors. These ventures raised over £40M private funding (during or within 12 months of incubation).

What involvement do you have with organisations once they have graduated from the scheme?

We look to take companies to the point where they are investor ready - and able to raise investment to fund their growth. We like to stay in contact with companies once they graduate and continue to provide introductions and referrals where appropriate, but we don't necessarily have any specific involvement with them beyond that point. Some incubatees go on to receive investment from Carbon Trust Investments Limited (among other investors), however their investment process is independent of the incubator scheme and we are not involved in this.

Is networking outside of ANGLE important for the continued growth of a company? If so how is this done?

Building a strong network is very important to early stage companies. A strong network can assist at all stages of company growth - product development, finding customers, finding investment, building the team. Attending/presenting at the right conferences to get exposure for yourself and your company is one way to achieve this. However there is no substitute for direct contact and discussions with prospective clients or other players in your intended supply chain. The network of Carbon Trust incubator delivery and network partners can help companies accepted into the scheme extend their networks.

What has been the incubators biggest success story to date?

In 2008, we supported a tidal device developer who went on to raise more than £6m in investment and continues to show promise in what is an extremely difficult but exciting market. We also worked with a 2nd generation biofuels company which went on to raise £1.5m and to develop pilot opportunities for their process overseas. Overall the companies ANGLE supported on the scheme have raised over £40M private funding during or within 12 months of incubation. We are working with several companies at the moment with novel, economic low-carbon technology solutions who we are confident will be successful in the coming years.

In your opinion which types of low carbon businesses / innovations have the greatest potential to generate the greatest success?

The renewables and smart grid technologies are widely covered and have great potential to deliver more diverse, independent, and lower cost energy. Industrial processes is probably not the most high profile, but is an area where there is huge potential to make a big difference. We are working with several very interesting companies in this area. Building design and construction technology is probably another area which can make a huge difference - particularly in simplifying low-energy building retrofits - driven by the fact that buildings account for such a large proportion of our energy use and the fact that regulation is driving change in this sector.

Open DECC Consultations

21 December 2009 - 14 March 2010: Extending the Carbon Emissions Reduction Target
21 December 2009 - 15 February 2010: Second consultation on the form and content of Climate Change Agreements
11 December 2009 - 5 March 2010: Consultation on second stage transposition of EU Directive (2008/101/EC) to include aviation in the EU Emissions Trading System (EU ETS)
9 November 2009 - 22 February 2010: Consultation on draft National Policy Statements for Energy Infrastructure

More about how to have your say in these can be found at http://decc.gov.uk/en/content/cms/consultations/consultations.aspx

Carbon Trust Applied Research Grant

The Carbon Trust provides assistance to start-up organisations in a range of ways. In past editions of the bulletin we have spoken about incubation services that are available. This piece focuses on the funding that can be applied for to assist in the development of technologies.

The amount of funding that can be applied for varies from project to project. The Carbon Trust refer to a maximum of £500,000 but the maximum for your own specific project may differ from this. The complexities arise as the grants are subject to EU state aid limits. The limits vary depending on whether the work is classified as industrial research or experimental research, the size of your company and on who is working collaboratively. More about the structure of this can be seen on the webpage - a link is included at the bottom of the article.

The assessors of applications are looking for a variety of factors that make up a successful application. Firstly and perhaps most importantly it has to show the potential to substantially reduce carbon dioxide emissions. They are looking for projects that will display the following characteristics:

Innovation - The project should be unique, distinctive and advance the current state-of-play

Technical feasibility - It should build on "proof of concept", be based on sound scientific principles and display the potential to lead to substantial carbon dioxide emission reductions

Commercial viability - Applications need to illustrate; that the target market has been understood and demand for the technology has been demonstrated, that the generated results will deliver benefit to UK, that a plan for Communication of results has been planned (who needs the results and how they should be communicated) and finally how Intellectual Property will be developed, protected and exploited by project.

However its not just the project itself that is assessed but also the team carrying it out: within the team there needs to be a mix of stakeholders and expertise with the assessors looking at whether the project can be undertaken by the team with regards to how realistic the finances and objectives are.

Grants do not cover the complete cost of any project and not all costs are eligible to be covered by the grant - more information with regards to this can be seen through the link at the bottom of the article. Furthermore the Carbon Trust cannot fund projects that are involved in:

o 'Blue sky' research o Fundamental research
o Training and information dissemination o Installing readily available technology
o Developing a business, rather than a technology
o Any illegal activities

All applications are judged separately but the Carbon Trust offers the following advice to help improve the chances of a projects success.

Funding requested - We give preference to applicants who ask for the minimum amount of funding they need to make their project viable.

Project budget -Projects with a total value of less than £50,000 are unlikely to be cost effective. They are also unlikely to result in significant progress in the commercialisation of technology.

Collaborative projects -We encourage technology providers and exploiters (end-users) to work together where this is likely to lead to the more effective commercialisation of technology.

Investment -We expect you to have leveraged a high proportion of non-Carbon Trust funds. We would also want those who stand to directly benefit from the work to contribute to its funding.

If you think the grant would be beneficial to you the only way to apply is online via the carbon trust web page. The process consists of 6 stages which begin with an application that can be accessed at http://www.carbontrust.co.uk/emerging-technologies/help-develop-my-technology/pages/how-to-apply.aspx. We'd love to hear about any success stories. Good Luck!

EC Funding Opportunity for innovative sources of renewable energy

There is an EC Funding Opportunity for "Joint exploration, at the transnational level, of the potential of innovative sources of renewable energy, for example sea current, tidal or wave energy"
The project area is the Atlantic seaboard of Scotland, Wales, England, France, Spain, and all of Ireland and mainland Portugal.
The requirement is for a partnership project, with a public sector body as the lead partner.
The application deadline has not yet been announced, but is likely to be end May/ early June.
A successful project would need a fairly long lead–time, so if you are interested, we would need to start developing the project partnership ASAP.

Richard Jones, of RDJ Consultants says: “The successful applicants are likely to be a group of innovators who come together to develop a good, sound business case. They will need the involvement of business and public sector Research Establishments, demonstrating innovative ideas for using sources of renewable energy/ technology.”

Richard Jones, Principal Consultant at RDJ Consultants can be contacted at Richard@RDJConsultants.com