CalSEED Awards 7 Central Valley Companies $150,000 each, 3 in Davis

CalSEED Awards 7 Central Valley Companies $150,000 each, 3 in Davis

Funded by the Energy Commission, the California Sustainable Energy Entrepreneur Development (CalSEED) Initiative handed out $3.75 million to 25 companies across the state to develop their concepts for new clean energy products.  (See the Press Announcement.)  Of those, seven were awarded to companies around the Central Valley, the highest number from this area ever to receive such attention. Three were in our CleanStart region, all from Davis:  DAE Technologies with a new lithium carbon fluoride battery, RePurpose Energy with second-life EV batteries used for stationary energy storage, and ZYD coupling heat pump water heating to hot water storage. 

The other four were P-Kap Systems in Tahoe City with a rooftop solar sun-tracking system, Solar Flexes in Lassen County with an easy deployed ground mounted solar PV system, SierraCrete from Coalinga with a new building material, and RAF Electronics in Fresno with efficient LED theatrical lighting.  You can see who won by county here.

The idea behind these awards is to let early-stage innovators develop their concepts to the product stage.  Then these will compete to receive further $450,000 grants, with only a small handful of winners. This is the third year these awards have been made, with 71 companies in total having received the first-round grants.  Over 200 companies applied this year, also the greatest number ever.

California stands out as offering this extensive and generous program for innovators to advance their products to market and get them better situated for their first rounds of outside investment.  To qualify, companies must be based in California. These awards are not loans, nor do they involve any sale of shares in the companies. They are just straight-up grants.  

Congratulations to all the winners.  Well done! If you want to see some of these innovations and more, sign up for our Central Valley Cleantech Showcase October 9th in downtown Sacramento.  It’s free and you will get to talk to two dozen of these enthusiastic startups.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | Tobin, EY, Stoel Rives, Greenberg Traurig LLP

BlueTech Valley, Buchalter, Moss Adams, PowerSoft.biz

College of Engineering & Computer Science at Sacramento State

EPIC Symposium Highlights Directions for Future Contract Funding from CEC

EPIC Symposium Highlights Directions for Future Contract Funding from CEC

On Tuesday Feb. 19, the California Energy Commission held its annual showcase for the technologies and studies it has funded under its Electric Program Investment Charge (EPIC).  EPIC raises about $160 million in funding each year and the CEC uses it to fund early startups (CalSEED), emerging technologies and creative solutions, as well as fostering energy entrepreneurs through business accelerator programs, the most well-known of which is the CleanTech Open – West.  The Symposium featured 15 panel sessions with 60 or so speakers and 35 exhibits from teams funded by EPIC.

Because many of the sessions were running concurrently, we couldn’t get to all of them, but here are some of the most interesting ideas we heard that may drive future EPIC funding solicitations and create business opportunities for you.

  • Broadening storage technologies beyond lithium ion batteries.  The recurrence of fires at large-scale lithium ion battery installations is raising concerns whether these are safe enough.  This concern is driving a look into other solutions–vanadium flow batteries, zinc-water batteries, high temp sulfur batteries, concentrated solar thermal integrated with thermal storage.  But there are more options that were not discussed–kinetic energy storage systems (flywheels), other battery chemistries–that keep the door open for more creativity in this area. One speaker offered the view that we may be just at the edge of a big price drop in storage technology driven by technology maturity and volume production, similar to what happened in solar PV, which may result in a lot more interest in storage of all types.

     

  • Non-battery solutions for matching renewables to demand.  The traditional approach to this problem has been to match supply to a variable demand, and emphasizes storage.  But what if one could turn this on its head and match demand to a variable supply through sophisticated demand management.  One speaker put it this way: “The smarter the grid, the less storage required”. Adding millions of points of control and a very smart management apps might do this.  But how much control would users be willing to surrender? How invisible could someone make it? Is there a way to simplify this approach?

     

  • Getting more from managing the charging of electric vehicles.  There must be at least three dozen entrepreneurs chasing this idea nationwide, most of which seem to be in California.  It could have larger implications for controlling load to avoid the need for storage, as noted above. How much infrastructure could be avoided if charging were better managed?   As the number of electric vehicles become dominant in California, how can complications of congestion at popular charging locations be dealt with? How can we move consumers from the mindset of “filling a tank” for a week of driving to just charging for what they immediately need? Can smaller cheaper level 2 chargers meet demand?   While there are many teams chasing this problem, there still seems room for more.

     

  • Making the energy revolution benefit underserved communities.  This topic has been receiving growing attention over the last two decades. . It seems to be as much about mobilizing underserved communities as it is about new technology. When asked projects and grant recipients acknowledged they struggled to connect with underserved groups. Promoting equitable growth was stressed in most if not all talks.  If you are looking for a demo project, the CEC is launching a tool to help you find an underserved community in which to put it and put some money behind it. They are also soliciting feedback from groups. Do you have a demo that can benefit community groups or are you a community group that has a clean tech need?
  • All of the solutions have a similar issue with adoption is they require behavior change. While we are used to energy on demand, it is not the most efficient or cost effective model. Incorporating AI that engages consumers to accommodate for future demand was identified as important for Electric Vehicle charging and Vehicle to Grid incorporation, grid management of all sizes, storage use, and building efficiency. How do we accelerate adoption faster and overcome human behavior? Do we use a stick and carrot approach, hand over energy control to AI,  or something else?

     

The CEC will be issuing new solicitations from the EPIC funding and other money it receives to advance clean fuels and alternative transportation.  If you want to get timely alerts, be sure to add your name to their notification list.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

ABOUT THE AUTHOR

Thomas is the Executive Director of CleanStart. Thomas has a strong background in supporting small businesses, leadership, financial management and is proficient in working with nonprofits. He has a BS in Finance and a BA in Economics from California State University, Chico. Thomas has a passion for sustainability and a commitment to supporting non-profits in the region.

Get Ready For CalSEED

Get Ready For CalSEED

Want some seed to prove out your idea?  Well, CalSEED is back with their annual grant program to get ideas of the ground. Grants are a good source of such money because you surrender no ownership and you don’t need to pay the money back.  CalSEED is focused on clean energy startups and  is the easiest grant you could apply for. It is open for you to apply on March 1st.  But hurry, applications close on March 11th.

CalSEED is a CEC-funded program run by the California CleanEnergy Fund (CalCEF) to help entrepreneurs with budding ideas get their seed money.  The first round of the Grant is for 150K. Winners of the initial grant funds are then entered into a special CleanTech Open business plan competition for CalSEED, where they will receive mentoring and support in building a business. Winners of the CTO competition could receive an additional $600K in grant funding.

Past winners from Sacramento are Enerdapt and Lucent Optics.

It is important you are ready with your idea.  Check it out

Thomas Hall

ABOUT THE AUTHOR

Thomas is the Executive Director of CleanStart. Thomas has a strong background in supporting small businesses, leadership, financial management and is proficient in working with nonprofits. He has a BS in Finance and a BA in Economics from California State University, Chico. Thomas has a passion for sustainability and a commitment to supporting non-profits in the region.

Sponsors

SMUD
CMC
RiverCity Bank

Weintraub | Tobin, Revrnt, Moss Adams, PowerSoft.biz, Greenberg Traurig

LACI Companies Visit the Capitol

LACI Companies Visit the Capitol

What kind of companies? Don’t worry I’ll bring you up to speed. Rated as one of the top 10 global incubators, the LA Cleantech Incubator (LACI) is the City of Los Angeles’ official business incubator for clean technology and provides key support to high profile teams on the rocky road to commercialization. Though based in LA, the impact doesn’t stop at the county lines. Many LACI portfolio companies are shaking things up across California and around the world. A local example, CarbonBLU, is mixing things up right here in Roseville. The Incubator can  connect with our own growing cleantech hub as they collaborate with other regional incubators like BlueTech Valley (a CleanStart Partner) and internationally with Clean Tech Open. CleanStart works in parrallel with LACI by bringing more companies to its attention and expanding the opportunities we can provide to companies here in Sacramento.

Last Wednesday, nine of these companies visited our capitol for a day of meetings with legislators and agency staff. CleanStart was able to catch up on all the hype at the company showcase to cap off the day. From aviation to roadways to kid’s play toys, LACI companies are taking on massive industries and long standing practices to help pave a green future.

See a full list of the Sacramento visitors below:

Ampaire  – Revolutionary Commercial Electric Aircraft

Advanced Paving Technologies – World’s First 3-D Asphalt Paving Machine

Advanced Vehicle Manufacturing – Reinventing Transportation

Bears for Humanity – Worlds First 100% Certified Organic Stuffed Toy Collection

CarbonBLU – Empowering Proactive Decision Makers (Check out their profile)

Rain Systems – Save 50% off your current landscape water consumption

Repurpose – Sustainable Tableware

Tiny Farms – Hardcore Nutrition, Easy on the Environment

Xtelligent – Traffic Signal Control for Today and Tomorrow

ABOUT THE AUTHOR

Kate is a recent graduate of Cal Poly, San Luis Obispo and has a strong background in entrepreneurship and global politics. After helping launch an AgTech startup on the central coast, Kate is back in her hometown looking to take her experience into the world of Cleantech and help grow the Sacramento region.

Recap: Grant Workshop Highlights New Funding Opportunities

Recap: Grant Workshop Highlights New Funding Opportunities

To date, nearly $3.4 billion has been appropriated by the Legislature to State agencies to implement Greenhouse Gas reduction programs and projects. Much of this is allocated in the form of various grants. Agencies are inviting proposals from teams and companies to use these funds, you can see some at California Climate Investments homepage. Recently, CleanStart had presenters from California Air Resources Board (CARB), The Grant Farm, and Terzo Power Systems talk about the process and potential of using grants to finance a startup.

 

Attendees learned that through AB 32 over $1.6 billion had been allocated to fight global climate change. Ryan Huft, an engineer at CARB, outlined all of the agencies receiving funding available for 2018 and 2019. He shared California Climate Investments  as the location of many opportunities. These investments support a variety of state interest but all have common goals: supporting the reduction of greenhouse gases, helping underserved and disadvantaged communities, and helping all of California take the lead in creating a sustainable future. Ethan Hanohano shared his and The Grant Farm’s considerable experience in forming partnerships to win grants and how companies should approach the grants. He recommended starting by building a solid team, creating a purpose, and connecting with grants that are in your companies field.

All the speakers emphasized two things: write exactly what the grant says it wants and connect with disadvantaged communities. Huft’s and Hanohano’s presentations kept going back to one major point, “Grants explicitly lay out what they want. Have your proposal follow that.” There may seem like there is duplication in grants, but everything is there for a reason. So even if you have said it before, say it the same way again. It is important to keep it simple and connect to each requirement.

Connecting with disadvantaged or underserved communities is important and is a good practice for any growing company. Connecting can mean creating jobs, improving quality of life, or connecting a community to more resources. When creating a clean tech or sustainable solution, understanding connections and benefits to communities is not only important for grants but also the general company development. These communities are potentially future customers and partners in new tech development.

Mike Terzo of Terzo Power Systems won $4 million in CEC grants in 2016. He took the application and wrote exactly to it. Terzo is now working on those grants and learning a few extra lessons along the way. The big one was giving yourself time and flexibility to reach milestones and deliverables. Setting a realistic timeline is more important then setting an aggressive one. Realistic time management is important in controlling your business and connecting with investors. With grants it is no exception. Agencies administering the grants have goals they want you to achieve; make sure a proposal has a reasonable timeline for you to do that.

Terzo highlighted understanding a grants reimbursement and your incurred liabilities is important while building a successful grant proposal. Grants pay in arrears, meaning you are reimbursed for costs you have already paid. Vendors, contractors, employees and leases may be due before you receive reimbursement. You will need a way to finance the time difference between incurring the cost, invoicing the agency, and getting a check. It would be common for the grant reimbursement cycle to take 4-5 months. You likely will need a bank, an SBA loan guarantee or alternative financing to make a grant workable for you.

All of the work done for a grant not only benefits a startup if they get the grant, but also pushes them to better understand how their technology connects to the larger ecosystem and how they can be effectively managed. Actively applying for grants can have more benefits than funding for a company.

Thomas Hall

ABOUT THE AUTHOR

Thomas is the Executive Director of CleanStart. Thomas has a strong background in supporting small businesses, leadership, financial management and is proficient in working with nonprofits. He has a BS in Finance and a BA in Economics from California State University, Chico. Thomas has a passion for sustainability and a commitment to supporting non-profits in the region.

Sponsors

SMUD
CMC
RiverCity Bank

Weintraub | Tobin, Revrnt, Moss Adams, PowerSoft.biz, Greenberg Traurig