May 2008
Australian CleanTech has launched a Technology Commercialisation service to help companies bring new cleantech technologies to market both in Australia and internationally
Technology Commercialisation
The technology commercialisation services offered include:
· Technology valuation
· Intellectual Property protection strategies
· Marketing strategy development
· Business Plan preparation
· R&D Tax Concession assistance
· Grant application preparation
Basic Commercialisation Package – to assist early stage companies bring their products to market, Australian CleanTech offers an economic commercialisation service consisting of:
· Half-day workshop to develop strategy and guide the preparation of the business plan
· Review of draft documents.
· Distribution to targeted investors both in Australia and internationally.
· The charge for this package is a flat rate to the client of $2,000.
Australian CleanTech can also provide more extensive assistance tailored to meet specific commercialisation needs.
Companies looking for assistance in commercialising their technologies should contact us at john.obrien@auscleantech.com.au or 0419 826 372
Wednesday, May 14, 2008
Sunday, May 4, 2008
The Unstoppable Growth of Cleantech
May 2008
The Clean Technology sector will be the success story of the next 20 years. Its global revenue has grown exponentially over the last few years and this growth is forecast to continue for many years to come.
Some commentators have dismissed the phenomenon as being a mere ‘green bubble’, similar to the IT bubble of the turn of the century. However the drivers behind cleantech’s growth are significantly different. Firstly, there are many real assets being constructed to provide core services such as power, water, waste and recycling. Secondly, the demand for these core services is growing due to population growth and increasing wealth. Thirdly, as the world continues to use and deplete its natural resources there is increasing pressure on communities to act sustainably. Finally there is the recognition of climate change and consequent regulatory regimes. This is a separate driver from those above and, whilst it will result in additional growth in some cleantech sub-sectors, it does not underpin the cleantech sector as a whole. As a result, the growth of cleantech will be unstoppable.
Research and forecasts by Clean Edge indicate that the clean energy sector alone had global revenues of US$77.3Bn in 2007 and this is forecast to rise to over US$250Bn by 2017.
In Australia, the definitive measure of cleantech performance is the ACT Australian CleanTech Index. This tracks 73 cleantech companies listed on Australian exchanges with combined forecast FY08 revenues of over A$13Bn and a combined market capitalisation at the end of April 2008 of over A$15Bn. The ACT Index outperformed both the S&P/ASX200 and the S&P/ASX Small Ordinaries during the 2006-07 financial year with a gain of 42.9%. Over the first four months of 2008, the ACT Index has again outperformed both of its benchmarks. If the Australian growth matches the global forecasts, annual revenue for the Australian cleantech sector could exceed $40Bn within the next 10 years.
The future for cleantech, both here and abroad, is bright. It has multiple global drivers and government backing which makes it stand out from previous growth industries. As it grows, mainstream corporate Australia will buy in through purchasing and acquisition decisions and this will enable the entire economy to move towards sustainability. By combining industry with investors, the cleantech sector will underpin and be essential for the transition to a sustainable world.
This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au
The Clean Technology sector will be the success story of the next 20 years. Its global revenue has grown exponentially over the last few years and this growth is forecast to continue for many years to come.
Some commentators have dismissed the phenomenon as being a mere ‘green bubble’, similar to the IT bubble of the turn of the century. However the drivers behind cleantech’s growth are significantly different. Firstly, there are many real assets being constructed to provide core services such as power, water, waste and recycling. Secondly, the demand for these core services is growing due to population growth and increasing wealth. Thirdly, as the world continues to use and deplete its natural resources there is increasing pressure on communities to act sustainably. Finally there is the recognition of climate change and consequent regulatory regimes. This is a separate driver from those above and, whilst it will result in additional growth in some cleantech sub-sectors, it does not underpin the cleantech sector as a whole. As a result, the growth of cleantech will be unstoppable.
Research and forecasts by Clean Edge indicate that the clean energy sector alone had global revenues of US$77.3Bn in 2007 and this is forecast to rise to over US$250Bn by 2017.
In Australia, the definitive measure of cleantech performance is the ACT Australian CleanTech Index. This tracks 73 cleantech companies listed on Australian exchanges with combined forecast FY08 revenues of over A$13Bn and a combined market capitalisation at the end of April 2008 of over A$15Bn. The ACT Index outperformed both the S&P/ASX200 and the S&P/ASX Small Ordinaries during the 2006-07 financial year with a gain of 42.9%. Over the first four months of 2008, the ACT Index has again outperformed both of its benchmarks. If the Australian growth matches the global forecasts, annual revenue for the Australian cleantech sector could exceed $40Bn within the next 10 years.
The future for cleantech, both here and abroad, is bright. It has multiple global drivers and government backing which makes it stand out from previous growth industries. As it grows, mainstream corporate Australia will buy in through purchasing and acquisition decisions and this will enable the entire economy to move towards sustainability. By combining industry with investors, the cleantech sector will underpin and be essential for the transition to a sustainable world.
This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au
2020 Ideas
April 2008
I’ve put together some thoughts on climate change policy and actions. They are split into two groups with the first focussing on how to enable the general public to be ‘part of the solution’ and the second on steps the Government can take if it has the courage to face down its detractors.
Being Part of the Solution
To achieve widespread involvement and adoption of climate friendly products and activities, there needs to be an alignment of individual economic benefits with behavioural changes that speed the transition to a low carbon economy. This can be achieved by costing in externalities and encouraging efficient resource use. The proposed Emissions Trading Scheme (ETS) will achieve this to some extent for power and manufactured materials and there other emerging schemes that will achieve this for water.
I’ve put together some thoughts on climate change policy and actions. They are split into two groups with the first focussing on how to enable the general public to be ‘part of the solution’ and the second on steps the Government can take if it has the courage to face down its detractors.
Being Part of the Solution
To achieve widespread involvement and adoption of climate friendly products and activities, there needs to be an alignment of individual economic benefits with behavioural changes that speed the transition to a low carbon economy. This can be achieved by costing in externalities and encouraging efficient resource use. The proposed Emissions Trading Scheme (ETS) will achieve this to some extent for power and manufactured materials and there other emerging schemes that will achieve this for water.
A more direct, and possibly more successful, involvement in the solution can be through enabling the general public to profit from the growth in clean technology solutions:
- Dedicating, or even mandating, a proportion of superannuation savings to investment in companies that are providing the solutions would certainly spur growth.
- A simple option to encourage take up of household technologies such as solar panels and water tanks, would be for the high street banks to facilitate the costs of such purchases to be added to an existing mortgage.
- Perhaps more interesting are community funded projects such as Hepburn Wind Co-operative in Victoria. Such projects benefit not only the environment but the communities involved as well.
Courage
Australia’s extensive coal reserves lend support to the proposal that it lead global efforts into making carbon capture and storage (CCS) a viable economic and environmental option. However, the doubtful sustainability of filling up reservoirs to store sequestered carbon and the question of large scale cross country liquid carbon pipelines seems to limit the long term viability of CCS.
There are two large scale projects that the Government could pursue that would have significant impacts on reducing the source of emissions as follows:
- In his interim report, Garnaut discussed using the proceeds of the ETS auctions for publicly funded infrastructure to facilitate the uptake of low emissions technologies. To encourage utility scale development utilising Australia’s best resources, a DC power cable network could be laid starting near Ceduna in SA, running through the prime locations for geothermal and solar thermal and connecting into the NSW grid somewhere in the west of the state.
- Given Australia has much of the world’s uranium that we are happy to dig up and sell to the world for use in nuclear power stations, it is difficult to argue against the development of a world’s best practice nuclear plant with an on-site integrated uranium supply and disposal chain.
These are brave calls on long term infrastructure projects that would fundamentally change the country. Will the Government have the courage to follow through and establish the infrastructure to allow the long term exploitation of its greatest sustainable assets of natural nuclear power, wind and solar rather than backing an ‘end of the pipe’ solution for the power source of the industrial revolution?
This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au
The Battle for Emissions Trading Profits
March 2008
The debate on the design of the Australian Emissions Trading Scheme (ETS) has only just begun. There have been a few opening salvos but, as yet, the battle has hardly started. The fight will be hard because the design of the ETS will make or break individual companies and maybe even entire industries. We should expect the fight to get nasty!
One of the most contentious issues is whether or not emissions intensive industries should be given free permits. This was the approach adopted when the European Union ETS was introduced in an attempt to appease industry and get the scheme approved. Europe however is now back tracking. By their nature, the emissions intensive industries are the very ones that need to change the most for any serious emissions targets to be met. If market mechanisms are implemented that exempts these companies, then an ETS cannot possibly achieve its optimum outcome.
A system that is designed to reduce emissions must of course affect those that produce the most emissions.
The industry groups of the high emitters such as the Australian Industry Greenhouse Network have valid arguments. Why should regulations intervene in a free market? If consumers want to change to other products of better quality or lower price then that is a valid market risk. If Government intervenes, that is regulatory risk and there should be compensation for any losses.
The extent to which profits will be affected will be proportional to the extent to which individual companies have prepared for this moment. Emissions trading will not be a shock to any large company. The world has been moving towards it for many years and the well run companies will have recognised this risk and put contingency plans in place.
There should be no pretence that the introduction of an ETS will not have a dramatic impact on the Australian economy. There will be winners and losers and there is big money at stake. The aim of the scheme is to enable a transition to a low carbon economy with the least pain along the way. However, it is inevitable that there will be some local discomfort. However, the birth of the new economy will be eased by wisely spending the significant funds raised from the auction of the permits.
To provide the best outcome for Australia, and to demonstrate the most effective ETS for the world, the Government must adhere to its goal of achieving emissions targets in the most efficient way. It matters not in this context whether profits are lost by large emissions intensive industrial companies or are gained by investors in innovative low emissions companies. In addition, a long term solution requires that threats to jobs in specific sectors or regions have no impact on the policy framework. These emotive arguments must be ignored for the greatest benefit to all.
This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au
The debate on the design of the Australian Emissions Trading Scheme (ETS) has only just begun. There have been a few opening salvos but, as yet, the battle has hardly started. The fight will be hard because the design of the ETS will make or break individual companies and maybe even entire industries. We should expect the fight to get nasty!
One of the most contentious issues is whether or not emissions intensive industries should be given free permits. This was the approach adopted when the European Union ETS was introduced in an attempt to appease industry and get the scheme approved. Europe however is now back tracking. By their nature, the emissions intensive industries are the very ones that need to change the most for any serious emissions targets to be met. If market mechanisms are implemented that exempts these companies, then an ETS cannot possibly achieve its optimum outcome.
A system that is designed to reduce emissions must of course affect those that produce the most emissions.
The industry groups of the high emitters such as the Australian Industry Greenhouse Network have valid arguments. Why should regulations intervene in a free market? If consumers want to change to other products of better quality or lower price then that is a valid market risk. If Government intervenes, that is regulatory risk and there should be compensation for any losses.
The extent to which profits will be affected will be proportional to the extent to which individual companies have prepared for this moment. Emissions trading will not be a shock to any large company. The world has been moving towards it for many years and the well run companies will have recognised this risk and put contingency plans in place.
There should be no pretence that the introduction of an ETS will not have a dramatic impact on the Australian economy. There will be winners and losers and there is big money at stake. The aim of the scheme is to enable a transition to a low carbon economy with the least pain along the way. However, it is inevitable that there will be some local discomfort. However, the birth of the new economy will be eased by wisely spending the significant funds raised from the auction of the permits.
To provide the best outcome for Australia, and to demonstrate the most effective ETS for the world, the Government must adhere to its goal of achieving emissions targets in the most efficient way. It matters not in this context whether profits are lost by large emissions intensive industrial companies or are gained by investors in innovative low emissions companies. In addition, a long term solution requires that threats to jobs in specific sectors or regions have no impact on the policy framework. These emotive arguments must be ignored for the greatest benefit to all.
This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au
Emissions Trading - A Question of Courage
March 2008
Australia is poised to move from global laggard on climate change policy to trailblazer, setting the benchmark on emissions trading and innovative policy implementation. Australia’s unique position of inaction and isolation presents it with the opportunity to build the world’s best emissions trading scheme (ETS). The year ahead will determine whether it has the courage to deliver on this potential.
The introduction of an ETS will have a major impact on the Australian economy and there will be big winners and big losers. As a result intensive lobbying efforts will be made by all sides. The best outcome for the nation will be achieved if Rudd ignores the vested interests and listens only to the economists and the political strategists. Australia’s inaction to date presents an opportunity to use the experience gained elsewhere to design the world’s most effective ETS. By demonstrating an innovative and courageous system, the world will have a pilot scheme on which to base the emerging global system. Australia could perform a huge service to the world by focussing on the ideal system and ignoring purely local perspectives.
His current world trip is the perfect forum perfectly timed for Rudd to become the travelling salesman for an effective solution to climate change. Australia can lead the way for the world on how to best deal with emissions but needs the world’s support to overcome local resistance to structural change. He stands to gain the world’s support and a position of strength from Australia will benefit. Returning home a hero, he would be emboldened with the strength to resist those who wish to lead him from his path. The opportunity awaits.
Australia is poised to move from global laggard on climate change policy to trailblazer, setting the benchmark on emissions trading and innovative policy implementation. Australia’s unique position of inaction and isolation presents it with the opportunity to build the world’s best emissions trading scheme (ETS). The year ahead will determine whether it has the courage to deliver on this potential.
The introduction of an ETS will have a major impact on the Australian economy and there will be big winners and big losers. As a result intensive lobbying efforts will be made by all sides. The best outcome for the nation will be achieved if Rudd ignores the vested interests and listens only to the economists and the political strategists. Australia’s inaction to date presents an opportunity to use the experience gained elsewhere to design the world’s most effective ETS. By demonstrating an innovative and courageous system, the world will have a pilot scheme on which to base the emerging global system. Australia could perform a huge service to the world by focussing on the ideal system and ignoring purely local perspectives.
His current world trip is the perfect forum perfectly timed for Rudd to become the travelling salesman for an effective solution to climate change. Australia can lead the way for the world on how to best deal with emissions but needs the world’s support to overcome local resistance to structural change. He stands to gain the world’s support and a position of strength from Australia will benefit. Returning home a hero, he would be emboldened with the strength to resist those who wish to lead him from his path. The opportunity awaits.
An earlier version of this article was published in the London-based CARBONfirst journal that is published by IDEACarbon, a consultancy group co-founded by Sir Nicholas Stern.
This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au
GPAus Windpower
April 2008
Creative Destruction
GPAus Windpower’s simple and wonderfully innovative business model allows local communities to invest in local wind farms and buy power from the same facility.
The business model involves the creative destruction of the downstream energy industry by allowing customers to become investors directly in generation assets. By rolling the model out in multiple countries, it has the potential to change the global energy industry.
One of the challenges with the concept is that it only requires a fairly modest corporate investment to get it started. Without the need for further investment and the consequent balance sheet benefits, listed energy companies find it difficult to get excited about the potential opportunities. Listed companies are also reluctant to dilute their equity and share ownership with communities in the way that this model envisages. In Australia, we have canvassed the major energy companies without success as it appears to not provide them with the right benefits and holds the threat of changing the dynamics of the whole industry and threatening entrenched strategies.
Engaging Millions of People
By enabling 1,000 community investors to ‘own’ each 2MW turbine, the community become part of the solution. Through the refinancing of each wind farm, the development of additional assets and the repetitive refinancing, the community engagement potential is huge.
In developing countries, the community investment model can be restructured and, in conjunction with micro-finance, can enable economic development for the bottom on the pyramid. We will have the answer to “ Its such a big problem, what can I do!”
For more information on this exciting project, contact Australian CleanTech
Creative Destruction
GPAus Windpower’s simple and wonderfully innovative business model allows local communities to invest in local wind farms and buy power from the same facility.
The business model involves the creative destruction of the downstream energy industry by allowing customers to become investors directly in generation assets. By rolling the model out in multiple countries, it has the potential to change the global energy industry.
One of the challenges with the concept is that it only requires a fairly modest corporate investment to get it started. Without the need for further investment and the consequent balance sheet benefits, listed energy companies find it difficult to get excited about the potential opportunities. Listed companies are also reluctant to dilute their equity and share ownership with communities in the way that this model envisages. In Australia, we have canvassed the major energy companies without success as it appears to not provide them with the right benefits and holds the threat of changing the dynamics of the whole industry and threatening entrenched strategies.
Engaging Millions of People
By enabling 1,000 community investors to ‘own’ each 2MW turbine, the community become part of the solution. Through the refinancing of each wind farm, the development of additional assets and the repetitive refinancing, the community engagement potential is huge.
In developing countries, the community investment model can be restructured and, in conjunction with micro-finance, can enable economic development for the bottom on the pyramid. We will have the answer to “ Its such a big problem, what can I do!”
For more information on this exciting project, contact Australian CleanTech
Launch of the Adelaide CleanTech Network
April 2008
The Adelaide Cleantech Network will establish South Australia as a leading national and international provider of Clean Technology services, products and innovation. The concept has been developed and will be launched by Australian CleanTech in association with industry and State Government partners. The Adelaide Cleantech Network will be officially launched at the Beyond Carbon 2008 Conference on 3 June 2008 in Adelaide.
The Value of a Cleantech Network
Whilst the concept of industry clustering is not new, one of the components that has often been missing is the active participation of financial institutions. Commonly, clusters have been formed to facilitate participants to grow through knowledge banks and knowledge transfer and enabling the opportunity to form bidding/buying groups. The inclusion of financial participants however creates additional opportunities to commercialise technologies and obtain funding for business growth. Through regular gatherings and communication, the Adelaide Cleantech Network will enable South Australia’s companies to keep ahead of the overall growth of the cleantech sector.
Investor Interest
The proposition to investors is highly attractive. The participating companies are all involved in high growth industries, have strong reputational capital and offer a positive outlook. The global industry growth is being driven not only by climate change concerns, but also by population growth and increasing wealth leading to both increased strain on environmental resources and an increased ability to pay for the solutions. Investor involvement will range from angel investors and venture capital companies that can provide early stage capital through to larger financial institutions able to fund major infrastructure projects. Additionally, more traditional debt and equity providers will provide advice and offer assistance to the industry participants.
Industry Participants
A diverse range of industry participants have expressed an interest in being involved in the Adelaide Cleantech Network. Industry associations for the water, waste management, environmental, renewable energy and remediation industries; Government departments covering recycling, natural resources and economic development; and University innovation and commercialisation departments.
In addition, the Adelaide Cleantech Network will provide connections to global cleantech investors and companies through a range of international affiliated organisations. This will present opportunities for both inbound and outbound cleantech investment.
To attend the launch of the Adelaide Cleantech Network book through CEDA at http://ceda.com.au/public/events/29100.html
The Value of a Cleantech Network
Whilst the concept of industry clustering is not new, one of the components that has often been missing is the active participation of financial institutions. Commonly, clusters have been formed to facilitate participants to grow through knowledge banks and knowledge transfer and enabling the opportunity to form bidding/buying groups. The inclusion of financial participants however creates additional opportunities to commercialise technologies and obtain funding for business growth. Through regular gatherings and communication, the Adelaide Cleantech Network will enable South Australia’s companies to keep ahead of the overall growth of the cleantech sector.
Investor Interest
The proposition to investors is highly attractive. The participating companies are all involved in high growth industries, have strong reputational capital and offer a positive outlook. The global industry growth is being driven not only by climate change concerns, but also by population growth and increasing wealth leading to both increased strain on environmental resources and an increased ability to pay for the solutions. Investor involvement will range from angel investors and venture capital companies that can provide early stage capital through to larger financial institutions able to fund major infrastructure projects. Additionally, more traditional debt and equity providers will provide advice and offer assistance to the industry participants.
Industry Participants
A diverse range of industry participants have expressed an interest in being involved in the Adelaide Cleantech Network. Industry associations for the water, waste management, environmental, renewable energy and remediation industries; Government departments covering recycling, natural resources and economic development; and University innovation and commercialisation departments.
In addition, the Adelaide Cleantech Network will provide connections to global cleantech investors and companies through a range of international affiliated organisations. This will present opportunities for both inbound and outbound cleantech investment.
To attend the launch of the Adelaide Cleantech Network book through CEDA at http://ceda.com.au/public/events/29100.html
Thursday, May 1, 2008
ACT Australian CleanTech Index
March 2008
The ACT Australian Cleantech Index provides a measure of the performance of the Australian listed stocks in the Cleantech sector. With over 70 companies following under the coverage of the index and with a combined market capitalisation of over $15Bn, the index presents for the first time a picture of the industry’s growth in a single measure.
The index is weighted by market capitalisation and is benchmarked against both the S&P/ASX200 and the S&P/ASX Small Ordinaries.
The rules for the formulation and management of the index have been developed with reference to global best practice.
Organisations interested in using the ACT Australian Cleantech Index should contact us for more information
11 March 2008 - ACT Australian Cleantech Index launch media release
2 April 2008 - 3Q08 Performance Report
1 May 2008 - April 2008 Performance Report.pdf
1 June 2008 - May 2008 Performance Report.pdf
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