Google Investments in Clean Technology

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¿? Google

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

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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 ( )

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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

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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

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• 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"

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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 )

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(+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

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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

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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

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• 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?

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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?

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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

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• 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

GRACIAS! THANKS! GRÀCIES

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