An overview of Comemrcialisation and innovation development in Australia and the opportunities for Australian industry

1. China and clean technology implications for Australia Nigel Hennessy

2. Innovation Challenge

3. Australian Commercialisation Landscape Source: 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, 2010 Source: 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&D Systemic lack of funding in the seed stage Lack of funding Lack of Entrepreneurs The Innovation Challenge

6. CleanTech Commercialisation Challenge

7. 42% of global emissions Unilateral Climate Policies

8. The CleanTech Opportunities Global Clean-tech Needs for a Low-carbon Economy Low carbon materials/plastics/carbon fibre, low carbon steel Biofuels, waste recycling, efficient home design, Agricultural/food seeds and technologies Efficient Transport/Logistics - cars, planes, trains, ships Clean energy (biomass, geothermal, wind, solar, thermal, wave/tidal) Energy storage technology, advanced battery technology Infrastructure for low carbon economy (rail, roads, gas networks, transmission grids..) Water purification technology, energy efficiency/automated systems/IT software Carbon financial markets

9. Carbon Cycle Australia 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 power Australia is constantly under threat of drought – water technologies Australia is big and surrounded by oceans – tidal/wave energy sources. One of the biggest producers of Agricultural products - Biofuels Australia is a major producer of coal – remove dependency on carbon fuels Australia has some of the best research in the world in sustainability. 9

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

13. First electric car company

15. China’s Current Status Enormous investment by China and change in direction Leads the world in clean-energy investment growth Currently at $35billion pa, 53% growth in 2009 Ambitious 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 Comparison Source: OECD, Main Science & Technology Indicators, Vol 2010/1 Australia 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 China Globally No. 1 largest market for renewable energy investment PV, wind turbine, ethanol biofuel, solar water system productions Hydro power CDM projects, Super-critical and ultra super-critical (high efficiency) thermal coal plants constructed Huge 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 Government Upgrade coal-burning industrial boilers (kilns) Local cogeneration Make 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 industries Environment-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 structures Build energy monitoring and technical service system

19. Future CleanTech Investments

20. Clean Tech? The Accidental Environmentalist CleanTech Investments The 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 CTechBA The Australian market suffered with:- Lack of Investment Lack of capabilities Lack of understanding Lack of commitment Recognising the problems, CTechBA was formed by a group of concerned senior executives with skills in:- Clean Technology Executive Management International Sales and Marketing Investment Banking

23. Our Differentiators

24. Typical Problems facing an Emerging Company BEFORE No Improvements No Money No Plans No Time No Knowledge Global Opportunities Competition

26. 3 F Funding

27. No revenueTime

28. Typical Problems facing an Emerging Company AFTER No Improvements Business Disciplines No Money Source Funding And Sales Planning And Strategy No Plans Resources No Time Market Research Marketing No Knowledge Global Opportunities Competition

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

30. Solar Paint Organic 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

33. Pixalux LED 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. Summary Historically 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.