Ali Ebadian, Certification Center Presentation

1. Certification Center for
Alternative Energy Applications
Presented by
Ali Ebadian, Ph.D.
CEO, Phiston Technologies, Inc.
In Coordination with
Chuck Harre, Ph.D.
Vice President, CAS – Wyle
25 October 2011

2. Presentation Overview
Certification Center for Alternative Energy
Applications
• Evolution of Idea for Center
• Why the PDN Border Region
• Purpose, Goals and Objectives of Center
• Business Model
• Center Feasibility Study

3. Evolution of Idea for Center
Target Clean
US-Mexico April 2010: Presidents Energy, Socio-
Calderon and Obama Economic
Bilateral outlined Framework Development & Crime
Cooperation for Cooperation Reduction for Border
Regions
Achieve economic
growth, while Reduce Crime through
Goals for addressing climate Socio-Economic
Region change challenges and Development and Job
increasing energy Creation
security
Continue to
strengthen existing Rebuild economies
civilian and military of communities
Strategy law enforcement to crippled by poverty
battle organized and crime
crime

4. Evolution of Idea for Center … cont’d.
• Expand Region’s Industries, and Create New Ones
• Focus on Industries with a Future and Resilience
The Needs • Invest in Industries and Jobs of the Future
• Create Technology-Driven Jobs of the Future
• Take advantage of Region’s Vast Resources and
Infrastructure (Immense Alternative Energy
Potential, Technical and Manufacturing
Decision Capacity, Partners’ Needs)
• Alternative Energy Technologies
• Evolving Green Economy

5. Why the PDN Region?
SYNERGY: The Perfect Combination of Resources
Abundant Natural Resources
• solar irradiation (among the top 10 in USA)
• untapped geothermal resources
• good wind & vast land resources
Premier Academic & Research Institutions
• with vibrant alternative energy science & technology programs
Proximity to US Military Test & Evaluation Facilities
• Fort Bliss and White Sands Missile Range
Advanced Industrial and Manufacturing Hub
• border region: one of most globally competitive locations in world

6. Our Niche:
Alternative Energy Certification Center
Purpose • Evaluate and certify alternative energy technologies
• Provide reliable, trusted technology evaluation and certification
• Become repository for alternative energy technology information and data
• Facilitate business decisions for commercializing technologies
Goals • Attract high tech companies to region & retain regional intellectual capital
• Stimulate regional economic development and job creation
• Develop profitable business lines for Center to be self-sufficient in 3 years.
• Evaluate whether technology meets expectations in
performance, cost, benefits and regulatory acceptance
Objectives • Assess commercialization potential
• Synchronize and integrate the Center's alternative energy initiatives with
DoD regional initiatives
Conduct performance- and regulatory-based Testing and Certification of
Mission
Center
Alternative Energy technologies that will become the cornerstone for the
Region’s clean energy industry by: influencing energy technology
policy, inspiring new business development and jobs, encouraging
further technology R&D, raising skills of the workforce, attracting youth
and untrained workers to prepare for clean energy jobs that provide
long-term livelihood and support economic development in the region.

7. Center Consortium Partners
Local
 Spearheaded by PDNG Businesses
 Directed by Public & Local Academic
Private Sector Members Municipalities Institutions
 Support from Federal
Agencies and Congress
 Regional Initiative Certification Regional
NGOs Econ. Dev.
 Regional Effort Center Orgs.
 Regional Benefits
 Regional Economic
Development & Jobs
Federal Local
 National and Agencies Utilities
International Impact Federal
Facilities

8. Organizational Structure of the Center
• The Center will be led by a Director who will report to an Advisory Board that will be appointed by
Center Partners.
• The Center will be structured to support its core mission and its principal business units.
• R&D will be conducted at partner research facilities and will be independent of the technology
certification Center to avoid any real or perceived conflicts of interest.
Independent R&D Center Advisory
Center Director
at Universities Board
Technology Workforce
Technology Energy Center Center
Assessment Training and
Transfer & Policy, Legal & Operations Marketing &
and Development
Commercialization Legislative Management Business Dev.
Certification Officer

9. Business Model
• Center Mission • Stakeholders:
• Socio Economic Objectives Clients, Workforce, Inventors, Entrepr
Activities Customers eneurs, Other Targeted Populations
• Center Partners: Public/Private • Business Processes: Test, R&D, Demo
Sector, Academia, Municipalities, Util and Transfer Techs, Train
ities, Economic Development Workforce, Grow Businesses, Create
Organizations. Business Jobs, Disseminate Tech Info
Partners
Processes
• Desired Outcomes/Value Added:
• Regional Assets and Resources:
Technologies Certified , Workforce
Solar, Wind, Land, Industry, Intellectu
Developed, Business Growth, Jobs
al Capital, Industry, Workforce
Resources Outcomes Created, Center Self-Sufficient

10. Funding for the Center
Startup Funding for the initial three The Center will become
years of the Center will be sought Financially Self-
from Federal Agencies including: Sufficient by the end of
the initial three-year
period by developing
• DOE: Office of Energy Efficiency and Renewable profitable business
Energy - Facilities and Infrastructure Program or a lines for products and
Congressionally Directed Project services
• DHS: Research, Development, Acquisition, and
Operations – Laboratory Facilities
• USAID: Economic Growth and Trade
• DoD
• Other

11. Center Revenue-Generating Business
Units
• Supporting •Provide service for Intellectual Property
Protection, Trademarking, Patenting
Business •Certify Technologies; Manage
Repository for Performance Data; Set
Processes Standards, Policies
•Perform R&D, Engineering to improve
technology to meet certification
Technologies standards
Center tested, improved, certified
by Center; Regulatory &
Outcomes industry acceptance; IP
protected
Public & Private Sector
Technologies
Orgs, educators, workforc
demonstrated by public &
e investment
private sector partners and
boards, collaborate on
gain consumer recognition; •Work with Tech provider to
•Secure Federal, State, Private Sector training and development
funding for workforce training Tech Transfer commercialize product, secure
strategy for region
•Develop and deliver curricula for green funding, grants, GSA
workforce training and development •Stage and Administer Large Scale
•Work with EconDev Technology Deployment and
Orgs, WIBs, Employers to develop Demonstration Project
workforce development strategies •Assist with domestic & int'l tech
transfer, trade shows, conferences, trade
missions

12. Center Revenue-Generating Business
Units … cont’d.
• To achieve the Business
Model outcomes, The
Center will implement Technology
Technology R&D, Demonstration, Deployment, T
several business Optimization, Efficiency
processes ransfer, Commercialization
• Business processes may Technology Testing &
become revenue- Certification, Technology
generating business Information Systems
units
• Business units will be Workforce Training and
Policy, Legal, Legislative Development
the basis for the
Center’s financial self-
sustainability after the
first 3 years of operation

13. Alternative Energy Focus Areas
Solar
Wind
Geothermal
Smart Grid and Grid Security
Energy Efficiency
Algae
Biomass and Biofuel
Landfill Gas
Energy Security
Carbon Capture
Energy Conservation
Energy Storage
Waste to Energy

14. Market Feasibility
• Is there a need and market for AE Technology Certification?
• What is the future of the A/E industry and market?
• Who is the Center’s competition?
• Does the Center have a competitive advantage?
Risk Assessment: Low
Increasing trend in long-term
investments by government and private
sector in AE projects and technology
R&D.
Financial incentives and government
policies encourage expanded use of AE.
Investments in Alternative Energy Research and Development (2008-20011). Spike
in 2009 reflects additional allocations from ARRA.

15. Market Feasibility … cont’d.
Change Organizations that have received R&D funding
Program FY 2011 FY 2012 from FY % Change for 2010
2011
ARPA-E 200 250 +50 +25
Geothermal 55 34 -21 -38 Solar
Private Univer-
Innovative Energy Loan Guarantees 380,000 200,000 180,000 -19
sector sities
Nuclear Energy Loan Guarantees 34000 36000 +2000 +6
54% 22%
Smart Grid Technologies 39.3 24 -15.3 -39
Solar Energy 272 290 +18 +7 National
Water Power 60 34 -26 -43 Labs
Wind Energy 123 80 -43 -35 24%
Biomass and Biorefining 220 180 -40 -18
Bio-Fuels Geo-Thermal Wind
Private Univer- Private Univer- Private Univer-
sector sities sector sities sector sities
35% 36% 27% 17% 20% 34%
National National National
Labs Labs Labs
29% 56% 46%

16. Market Feasibility … cont’d.
States, Federal Agencies, Municipalities: committed to Renewable Energy Portfolio
Standards, Sustainability Plans, Financial Incentives.
Breakthroughs in basic science creating growing pipeline of innovative technologies with
improvements in conservation, efficiency and generation capacity, cost reduction.
Need for technology certification and technology transfer services will expand.
Center competitive advantage: Perfect combination of resources within region. Center
becomes hub linking technology R&D, Natural Resources, broad base of
clients, workforce, manufacturing capacity.

17. Strategic Feasibility
• Will pivotal partners support the Collaborative Center concept?
Risk Assessment: Low
Starting in July 2010, met with potential partners to get input and gauge interest in Center.
Overwhelmingly, the Center was perceived as adding positive value to the region’s expanding
alternative energy industry.
Border Environmental Cooperation Commission Fort Bliss
City of El Paso REDCo
Colegio de la Frontera Norte MVEDA
Comission Federal de Electricidad NMSU
Congressman Reyes and legislative staff Senator Bingaman’s Energy Staff
Department of Energy International and Policy Tecnologico de Monterrey
Office UACJ
Department of Energy Office of Small Business and UTEP
Utilization White Sands Missile Range
El Paso Electric

18. Financial Feasibility
• Can funding for the Center be secured?
• What will the strategy be?
• What are possible sources, amounts, and timing?
Risk Assessment: Medium
Pursuing funding for Congressionally Directed Project (CDP).
Aggressive legislative strategy in place to improve chances.
•Department of Energy (DOE, Office of Energy Efficiency and Renewable Energy - Facilities and Infrastructure Program
•Department of Homeland Security (DHS), Research, Development, Acquisition, And Operations – Laboratory Facilities
•Department of Defense (DoD)Energy Management in Fixed Installations under Energy and Reliance on Fossil Fuels program
•US Department of Labor, Employment and Training Administration
•US Agency for International Development ( USAID)
Diversified funding base needs to be pursued.
Funding challenge for Mexico R&D and projects.
•Possible sources include USAID as well as other Mexican Federal and State agencies.

19. Technical Feasibility
• Can the essential technical components of the Center be created.?
• Are necessary resources available?
Risk Assessment: Medium-High
Region rich in natural resources (solar, wind, geothermal).
Partners bring wealth of technical expertise.
Motivated entrepreneurs and workforce due to emerging business opportunities.
Large cadre of trainable workers for new clean energy industry.
Security in Mexico presents risk to business development. Risk of businesses relocating from area;
fear to relocate to area. However, perceived as improving situation.

20. Organizational Feasibility
• Business, legal, organizational structure?
• Will it be possible to attract persons with the right skills and experience to staff the
Center.
Risk Assessment: Low
El Paso region makes sense as all components and resources are in place; only physical facilities are needed for the
Center.
Center will be established as a non-profit organization.
Region has strong business and industrial infrastructure.
Center will need to acquire expertise in technology-based business development and project management.
Security situation in Mexico will present challenges for cross-border collaboration, but situation not seen as
permanent.
Highly skilled science and engineering resources available to Center.

21. Engineering Feasibility
• Can facilities to house the Center be acquired (purchased, rented or built)?
Risk Assessment: Low
Large inventory of suitable commercial properties and property owners motivated to
negotiate.
Possibility of obtaining land and/or facilities from Army.
El Paso is central to the region, convenient to major clients and partners, has good modes
of transportation, and is appropriate for locating the Center.

22. Operational Feasibility
• How well will the proposed Center and associated processes contribute to solving Socio-
economic problems in the region?
• Can the desired socio-economic benefits to the region be attained?
• Are the benefits greater than the cost?
Risk Assessment: Medium
Business model maintains focus on creating attractive business environment for entrepreneurs through
product and service development, incentives and workforce training.
The emerging clean energy industry will attract eager entrepreneurs, small businesses, and investors to
compete in this new arena.
Security may be inhibitor on Mexican side of border which is key to manufacturing and international trade.
Economic impact in terms of $$$ and jobs created, to be determined.

23. Schedule Feasibility
• How reasonable is the project schedule?
Risk Assessment: Medium
Risk to project schedule is securing funding in a timely manner. Also risk of not being “first-to-market”.
For Congressional funding, including a CDP, the earliest money would be available would be during FY
2012, which begins on 1 Oct 2011. For other sources, money may be available earlier.
Until federal funding is available, it will be necessary to find seed money to keep the process and
momentum of establishing the Center on track. PDNG will continue to work with USAID to provide such
money. Within USAID, there is a program, Economic Growth and Trade.
Other sources that can be pursued include: Department of Defense, Test bed technologies program as well
as Department of Energy, Advanced Research Projects Agency (ARPA–E) .

24. Center Creation Timeframe
• Feasibility Study (3 months)
Assess the Viability and Potential for Success of
Center, including identifying potential partners and sources of
Phase 1 funding for the Center
• Implementation Plans (6 months)
Develop Plans for Critical Activities to Create Center
Phase 2 (Market, Technical, Financial, Organizational and Strategic)
• Mobilization (4 months)
• Begin Implementation
• Acquire Key Hires
Phase 3
• Initiate Construction of Center

25. The Next Steps
Phase II Phase III Subsequent Phases
Pursue Funding Mobilize Resources Construct Center
Prepare Business Plan Obtain Accreditation Center
Form Partnership(s) Begin Technology Testing
Prepare Marketing Plan
Begin Hiring Key Personnel
Prepare Site Plan(s)

26. Contact Information
Ali Ebadian, Ph.D., CEO Chuck Harre, Ph.D., Vice President
Phiston Technologies, Inc. CAS – Wyle
3300 NW 112th Avenue, 13 Founders Boulevard,
El Paso, TX 79906
Suite # 3
Miami , FL 33172 (915) 903-779-6458
Chuck.Harre@Wyle.com
(786-325-4577)
AliEbadian@Phiston.com