Google Investments in Clean Technology Google Confidential and Proprietary
Qué significa?
¿Qué significa Google? "Gúgol" ("googol" en inglés) es un término matemático que
se utiliza para referirse a un 1 seguido de 100 cerosQué significa?
Cuándo se lanza?
se ut a pa a e e se a u segu do de 00 ce os
Qué es?
Cuál es su misión?Cuál es su misión?
1998
“La misión de Google es organizar la información mundial
Google Confidential and Proprietary
g gpara que resulte universalmente accesible y útil.”
Google España
Fundamentalmente una oficina COMERCIAL:
Equipos AdWords: DSO
Partnerships: Syndication / Content (Books & Geo) / YTp y ( )
Áreas Apoyo: Marketing / Sales Finance / Press / Legal / Tech Support
Diferencias con otras oficinas:
Centros de Tecnología: innovación en Producto (US, Zurich)g ( )
Google Confidential and Proprietary
Google.org Overview
• Mission: “aspires to use the power of information and technology to address theinformation and technology to address the global challenges of our age”
• Philanthropic arm of GoogleLeverages capital, technology, people
• Division of Google Inc (not a separate entity)
• 3 areaso Climateo Climateo Global Public Healtho Global Development
Google Confidential and Proprietary
Google wants to accelerate the adoption of clean energy
What we're doing:• Targeted R&D with Google engineersg g g• Investing in breakthrough technology ($50m to
date)• Supporting external R&D projects at universities
and labsand labs• Addressing policy barriers and increase access
to information
Technology focus:
• Solar-thermal • Advanced wind• Enhanced geothermal systems• Plug-in hybrids
Google Confidential and Proprietary
• Plug-in hybrids• Energy Information
Why Google?
Why is Google getting involved• We are committed to helping create a clean energy futureWe are committed to helping create a clean energy future
• We are serious about reducing our environmental footprint, but have not been able to find large-scale cost-competitive renewablenot been able to find large scale, cost competitive renewable electricity
• We have a talented group of engineers who are enthusiastic aboutWe have a talented group of engineers who are enthusiastic about tackling complex and important challenges
There are funding gaps in renewable energyThere are funding gaps in renewable energy• R&D: government & university research underfunded; R&D not
focused on bringing technologies to market priced lower than coal
• Early utility-scale funding: traditional investors averse to bringing early high-risk commercial-scale projects through "Valley of Death"
Google Confidential and Proprietary
How we work
• Investingo AltaRock Energy - $6.25M
Potter Drilling $4M
Example: EGS
o Potter Drilling - $4M
• Grantmaking:SMU $500k for resource mappingo SMU - $500k for resource mapping
o Stanford - $135k for research on power output per well
• Lobbyingo Federal policy recommendations
DOE re grantmakingo DOE re grantmaking
• Other (google.org/egs)P iti di (>400 ti l )o Positive media coverage (>400 articles)
o YouTube video (+62,000 views)o SketchUp animation of EGS System
( 30 000 i )
Google Confidential and Proprietary
(+30,000 views)o Google Earth layers
Investments to date
• Concentrating solar powero BrightSource Energy : $10m investment
eSolar: $10m investmento eSolar: $10m investment
• Advanced wind$o Makani: $15m invested
• EGSo AltaRock Energy: $6.25m investmento Potter Drilling: $4m investment
• Plug-in hybrid vehicleso ActaCell: $0.75m investmento Aptera Motors: $2m investmento Aptera Motors: $2m investment
Google Confidential and Proprietary
Investment Objectives
1. Demonstrate the technology
2. Demonstrate economics
3 B ild th t3. Build the ecosystem
4. Build innovative, sustainable companies
5. Generate returns
Google Confidential and Proprietary
Platform approach to investing
PlatformScience & ImplementationPlatformTechnology Implementation
Characteristics:• Build knowledgeg• Business development• Vertically integrated• Usually later stage
Learnings• Important to understand the different needs at each stage
• Management
Fi i• Financing
• Board support
• Leverage learnings from platform into portfolio investing
Google Confidential and Proprietary
• Leverage learnings from platform into portfolio investing
The platform in practice (theoretical example)
Late-stage solar (e.g. Silicon, project experience)Supply chain issues• Supply-chain issues
• Economics• Project implementation• Technology validation• Technology validation• Management insight• Project financing
BoardAdvanced Solar (new materials)• Who supplies the raw materials?• What LCOE do I need to get to?
BoardIssues
• What LCOE do I need to get to?• How does it fit in with installers?• Who can validate the technology?• Who can lead this to commercialization?• Who can lead this to commercialization?• How do I fund growth?
Google Confidential and Proprietary
Key issues when along growth path
AScience &Technology ImplementationB C D E+Technology p
What is the breakthrough?Is technology defensible?Should this be on a lab?
Where do I get project financing?What is my market/bizdev strategy?Do I have the right channels?Should this be on a lab?
Can I prove it at scale?What is the market opportunity?
Do I have the right channels?What new technologies are coming?
Do I have the right team?Can I move from pilot to product?Can I make it economically?yWho are the key partnerships?What is the growth trajectory?
Google Confidential and Proprietary
Keep in mind future needs!
Learnings from investing in cleantech
• This is not the internet! But you already knew that...• “Two guys in garage” -> hundreds of millions in project finance
• Understand financial constraints
• Remember the early days of Silicon Valley: networking, semiconductors, PCs...
H i k h dl t th ti ?• How many risks can you handle at the same time?• Science/technology risk: does it work?
• Product risk: can I make it?
• Market risk: how big is it? where do I fit in?
• Management risk: where are the experienced energy entrepreneurs?
• Technology breakthroughs matter• “Moore’s law” for cleantech? Not there yet, but...
• Can’t get by on marketing aloneCan t get by on marketing alone
• Partnerships matter• Can’t do it alone: batteries-> cars; power plants-> utilities; sensors-> data centers
Google Confidential and Proprietary
• What are the sources of breakthrough technology: labs, academia, etc.
Declining technological costs
Generations of Solar Photovoltaics…
Crystalline Silicon
Amorphous Silicon
Thin-Film
Thin-Film Multi-Junction
Google Confidential and ProprietarySource: Khosla Ventures
Short term vs. Long term opportunity
Trend or blip?
Google Confidential and ProprietarySources: EIA, Deloitte, NVCA, Greentech Media