Clean and Cool from the UK to SF
A big topic of conversation in Silicon Valley this week is "cleantech", from the launch of Bloom Energy - which the company claims will deliver cheap, emission-free power - to the gathering of minds at the Cleantech Forum, where the focus is on business.
Add to the mix 19 companies from the UK working in this space who have come to the Valley for a variety of reasons: from finding partners to raising cash; from looking to set up an office to getting some press attention.
The mission has been called "Clean and Cool" and has been organised and bankrolled by UK Trade And Investment, the Technology Strategy Board, BP, Orrik, Polecat and the Cleantech Group among others.
"The companies involved are all really trying to solve some quite similar problems but in really different ways," said Oli Barrett, an entrepreneur and one of the people involved in the event.
"We are talking about everything from the very large pieces of technology through to various innovations in battery cells to gadgets you might find in your house to making your building more energy-efficient. There is a real breadth and depth to the kinds of companies who have come to the Valley this week."
A total of 140 start-ups competed for a place at the trade week that has seen attendees pitch their wares to investors, meet industry peers and make contacts.
I caught up with a few of them to see what they have to offer in a space where the Valley likes to consider itself as a leader.
Breathing Buildings is a company that is selling the idea of low-energy natural ventilation. Or as I put it, a hole in the wall.
"In a very crude way, that is what it is - and in fact, the most wonderful ventilation is an amphitheatre which doesn't have a roof but in reality won't work for all seasons and climates," said managing director Shaun Fitzgerald.
He said that instead of using fans and pumps, his system uses "the forces of nature, namely wind and buoyancy to drive the exchange of fresh air".
Mr Fitzgerald reckons that the energy consumption of a naturally-ventilated building over an air-conditioned one can be halved.
"In a typical school classroom you are looking at a saving of $500 or £300-400 per classroom. In a typical school, you have ten classrooms and the savings could add up to a half a teacher just by using the right ventilation strategy," claimed Mr Fitzgerald.
Today the business has an order book of over £2 million in the UK education sector and wants to expand in the US and Europe.
At DIYKyoto the focus is also on saving money but on an individual basis.
Co-founder and director Richard Woods said he wants to empower one person at a time to change the amount of energy he or she uses, to save money and to save the planet, all at the same time.
"We are trying to create consumer cleantech-branded products that will be about more than just energy. The concept is really about do-it-yourself towards the Kyoto protocol, which is all about reducing green house gasses.
"We are saying: don't wait for government or big business. We are about giving people the chance to do something positive and proactive themselves," said Mr Woods.
The company's first product is called Wattson and is an energy monitor that shows you how much electricity you are using in terms of pounds and pence and also how much you can save.
"The focus is on design but also showing you as simply as possible how much you are using. For example, if you turned on a 100-watt lightbulb. Wattson will go up £120 per year because that is what it would cost you to keep that bulb on. Switch it off and you will see what you save. It gives you a context as to what is good value and what isn't," said Mr Woods.
Wattson is already on sale in the UK and Mr Woods said he hopes being part of Clean and Cool will help him find partners here in the US to expand sales.
Addressing a bigger energy problem, this time for the telecommunications industry, is Diverse Energy.
The company makes green, low-cost power plants for off-grid cell phone towers mainly in emerging markets. With 4 billion cellphones in use already and another 3 billion untapped customers, operations director Dr Alistair Livesey said his company presents a cost-effective and low-emission solution to a big problem.
"In these emerging markets, where there are no landlines and no electricity, these cellphone towers are being powered by diesel generators," said Dr Livesey.
"The problem is they are very expensive and over 50% of the cost of running the cellphone tower goes on diesel. In 2008, when the price of fuel rocketed, it was an enormous problem. They are also highly polluting and give out a lot of CO2. Added to that is the issue of theft because a lot of this diesel is stolen."
Dr Livesey said his company's PowerCube solves these issues. It is the size of a small garden shed and costs about $90,000 or £55,000.
The secret sauce is the use of ammonia as fuel, which Dr Livesey said is the basis of fertilizer and can be found on farms even in the remotest communities.
Diverse Energy claims the technology would deliver an 80% CO2 reduction and 25% reduction in total cost of ownership with a two-year pay-back.
The PowerCube is already on trial with Motorola on the east coast of Africa.
Dr Livesey hopes his week in the Valley will help him attract investors to a product he said is "really a 21st-Century power plant for a 21st-Century industry".
The problem Xeros is trying to solve is as old as the hills. The company wants to change the way you do your laundry.
"We aim to save you 90% of the amount of water you use, 40% of electricity and a third of the detergent," said chief executive officer Bill Westwater.
The solution lies in replacing most of the water you use with little plastic beads.
"You still need to dampen the clothes - but rather than use lots of water to get all the stains away, you roll them in these plastic beads which have a unique property that attracts and absorbs the dirt. This lets you reduce the amount of water you use, the amount of electricity and the amount of detergent," said Mr Westwater.
"It's a new way of washing clothes that is going to be better for the environment and better for you wallet."
So far, so good - but the gnarly problem with all of this is, of course, the washing machine which today uses too much water.
"What we are selling here is a whole new system and that requires not just the plastic beads but, yes, a new machine," admitted Mr Westwater.
He said in time the price of a new machine, which they are still developing, should not be too prohibitive because it will use most of the same components that present-day machines use.
In the first instance, Xeros is going after the commercial laundry market where the results will be most marked.
"One of the problems we face is getting this new technology into the market and fighting inertia because, of course, most people are satisfied with their current laundry process. You throw dirty clothes in, switch on the machine, walk away and come back later to clean clothes," said Mr Westwater.
He said while he faces something of an uphill task, he has come to the Valley for inspiration and a bit of that can-do attitude that is prevalent here.
"This laundry proposition is really exciting, but sometimes you can get worn down in the UK by how is it going to get started.
"Here people work out of their garage against big established businesses all the time and make a real go of it. That is the sort of inspiration I would like to take back to the UK. People are so expansive and positive and I am hoping a bit of that rubs off on me," said Mr Westwater.
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Comments
When is former BBC Mr Barrett going to get a job and stop living off the tax payer?
We paid for him to go on what he said was a business trip two years ago with WAYN, Trampoline Systems, Slice the pie, Group Spaces and others which we were told were rising stars.
Could you report on what we got in return for his 08 trip before writing up 2010, please.
If he is an entrepreneur why does he need tax payers' money?
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Over ten years ago, a trial was done in bedford where ten households had solar panels fitted on their single garages. A washing machine sized unit was placed in the garage and connected to the panels and a water supply. The units were NOT plugged into the mains!
The home owners cars were converted to be dual fuel (petrol and Hydrogen). The total instalation cost was just under 7000 (including the cost of converting the car).
On average the panels generated enough Hydrogen to drive 60miles a day, which is 95% of the average daily usage of a comunter car. This average was for all 10 cars and garages (one south facing garage whos owner drove a fiesta managed over 130miles a day and half way through the trial converted their second car to use the excess!).
The cars had to be started on petrol and then switched over to run on hydrogen, when they ran out of hydrogen (after approx 50-60miles) they could just be switched back to running on petrol. When running on Hydrogen the cars lost approx 10% performance.
The project was a great success and remember this was 10-12years ago!
What killed the project was a certain G.Brown who insisted on back duty for using the vehicles on Non-Dutied fuel!
£7000 to convert your car to give you 60miles of free fuel each and every day!
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I am not sure what has caused "andrew" to write out against Oli Barrett. Oli has helped numerous businesses in the UK, including lobbying, making excellent connections and giving sound advice. The Webmission trip to the US was successful and I know many of the participates who got a lot out of it. I can think of so many things that we apparently spend our tax payers money on that are worthless in comparison to the work Oli does (and that is not including MP expenses!). You obviously have a personal issue with Oli for which I do not think this is the forum. Well done Oli. Keep up the good work.
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Hi Andrew,
I'll be happy to tell you what the UK got in return for Mr Barrett's Web Mission. I was also on that trip, I am CEO of Skimlinks (at the time called Skimbit). I had at the time only recently started my company, and knew no one.
Mr Barrett's trip was without a doubt the defining moment in the growth of my company, and I know many other entrepreneurs on that trip feel the same. The contacts and exposure I received during that trip can be directly linked to the subsequent success, customer acquisition, and growth trajectory we had since then.
My company now hires 20 people whereas it hired no one at the time of Web Mission. Other companies on that trip are in the same position.
I'm curious why you feel it derived no value. I know if you asked any of the participants of the schemes run by Mr Barrett, they would say it was instrumental in giving them a step up. The UK entrepreneurial scene is now rich, vibrant, and ambitious, and that is surely a worthwhile investment by UKTI?
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I agree with Simon and Alicia that the comments on Mr Barrett feel entirely unfounded. The mission is a great way to build businesses and cross-country collaboration. Investment and interest from US VC's will testify to that - thus creating British business success and jobs in this coutnry. Britain should be leading the world in terms of clean technologies and this mission helps enable that.
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Any business on any of these trips will justify them. My comment was not personal, it is the nature of these trips that I am critical of. I don't agree that the UK technology entrepreneurial scene is now rich and vibrant because of UKTI's investment. I am aware of very little success at all. It was factual reporting I was asking for from the BBC, not more spin.
I agree we want UK technology to be leading the world but I see very little evidence that it is with the exception of Alicia if what she reports is accurate. Taking on 20 people if that is true is great but how long will it be before we have technology companies creating 100s of jobs?
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Andrew
Each of the companies on 08, 09, 10 Missions were already looking to the US for potential funding, larger markets and channel partners. Going to the US as a group enables the companies to open more doors, meet more of the right people and drive a greater awareness of their company and service. Having 20 strong UK companies in the US attracts more attention than one UK company alone. That’s the value of Missions like these. That’s the value to the companies, and they work hard to optimize the opportunities that present themselves and weave them into their business plans and future strategies. Oli is part of a team that includes myself and James and the public and private sponsors of these Missions. Oli is a consummate professional, he is the perfect ambassador of all that is good about entrepreneurship in the UK and he uses his impressive people skills to bring out the best in the attendees, making sure that the environment and connections are in place so that attendees can network, present, pitch, learn, build relationships as effectively as possible. All of these activities add value to a business. Some value is clear and tangible (like investment, partnership formation, new customers) and some of the value is more intangible, for example: better market intelligence, stronger stakeholder relationships, connections with peers, a fresh view of how your company is perceived. It's all value though and Oli contributes hugely to making sure that the value is realised.
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Andrew
If you would like to understand more on the value of UKTI investment, a good place to start would be the UKTI website. For every £1 spent, £16 is generated for the UK economy. Trade Missions, such as WebMission08, are a proven method for helping UK business expand operations abroad - helping them grow and deliver more tax pounds into the UK.
You are right to assume that businesses that attended the almost entirely privately-funded WebMission08 will justify their attendance. They all saw a great deal of benefit for their businesses - so it would be hard not to justify. Amongst great WebMission08 exemplars, beyond Alicia's amazing achievements, take a look at the achievements of Huddle.net.
In terms of Mr Barrett's involement, he was instrumental in the success of WebMission08 and he offered outstanding value to the attending companies and to the sponsors.
Good news on also on when technology companies will create 100s of jobs in the UK - they already are.
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so to summarise posts 2 through to 8..
"in your face Andrew!!"
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@Andrew
If it was the "general type" of government funded projects you were attacking, the context of your comment should not have then been targeted at Mr Barrett personally.
I was also on the trip in 2008. The business benefits were profound, not only spending that length of time with 19 entreprenuers while focused on funding and marketing strategies at the heart of the worlds sector for us (i.e. silicon valley) but also the mind share and knowledge we gained.
The trip produced tangible results, including business development partnership wtih WAYN.COM and RUMMBLE.COM (the latter being my company) and as the other comments will note, it was hugely valuable for all those involved.
I agree that there is much waste of public money, but on this occasion, the web mission trip -of which I'm quite sure Oli made little if any profit- is not one of them.
Come and see us at Clerkenwell (office details on the website) if you're in any doubt, happy to chat.
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Please address my request for more factual reporting of these trips to justify spending tax payer money, and also to justify the claims that the organisers' make.
'The Clean & Cool Mission is a competition to identify the top 20 fast growing Clean & Cool companies in the UK,' the website says. If DIYKYOTO is a top 20 fast growing Clean & Cool company why did it sign over all its property and patents to Venture Finance last October? How is it being a consummate professional to portray to the US and through the BBC companies like this as the best that the UK has?
It seems to me to be PR people running businesses off the back of organising these trips that are the main beneficiaries. I think it is harmful to UK industry when PR people are in charge because when you arrive in the US and you say here is DIYKYOTO a top 20 fast growiing company, the American's will take a long hard look at that company and may form a very positive view of the UK's investment potential, but I think it is more likely they will take a dim view of the UK and that is harmful. I would need evidence, facts, contracts, audited accounts, to be persuaded I was wrong.
It is only because I think differently that we can have this discussion. I am not a fan of PR. I hope you can respect my point of view and answer my critcism with facts not spin.
I noticed UKTI is an investor in DIYKYOTO. When I checked Breathing Buildings website the first thing I noticed was that BP is an investor and is a sponsor of this trip. I Googled Alicia Navarro and an article she wrote came up saying: The proximity of mainland Europe to the UK is a huge boon. We have access to one of the fastest growing bases for outsourced off-shore development in Eastern Europe, with countries like Romania, Ukraine and Latvia sprouting firms full of hard-working, smart, well-spoken developers, with only 1-2 hours time difference from the UK. The developers of my site, Skimbit are based in Romania, and they cost me half to a third what it would cost me to hire local developers; they speak excellent English, are completely up to date with new technologies and trends, and are only an hour away on a plane to visit them face-to-face.
This is not a criticism of employing East European staff, I would do exactly that in her shoes, but it is a fact, and I trust facts, that is relevant to this discussion.
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Would just like to mention that the '19 companies' link is pointing to a broken page on the Clean and Cool Mission site.
On the topic of 'Clean Tech' I think there are a lot of innovative ideas floating around and even developing technologies emerging but one of the major tasks and difficult hurdles is introducing these to the mass market - which observation has reliably shown that it is not typically possible unless the product or technology has been cleverly marketed with the right bait and hooks - of 'cost saving', 'value' and 'convenience'. There are exceptions, ..products which become a success for their inventors and business owners, perhaps because they appeal to glamour and status or other superficial attributes, but for mass market widespread adoption, there has to be a compelling reason or quality and this is usually found in the promise of saving money and making our lives and work easier - which is essentially about creating value, then you don't have to 'sell a product' because people will already be lining up to buy it, as it serves them as a consumer more than it does you as a business.
Personally, I think some of these 'clean tech' products are more of a gimmick and just a money making scheme for the companies selling the products under the guise of promoting eco-friendliness and going green. Like the various devices that measure your electricity and energy usage with the aim of encouraging you to use less energy because they display how much money you have to spend (a very good concept in principle) - but that is overlooking the fact that I've seen those devices retailing for well over a £100, which seems excessive and wasteful to spend so much for a device that 'preaches' to you to not be wasteful and excessive.
A better example and something I took for granted, is the EU directive on requiring appliance manufacturers to test and provide an energy efficiency rating label on all their products. In the U.S. I am not aware of any similar scheme, and related environmental organizations and government departments often mention how appliances like the washing machine are using too much water or being an unnecessary drain on energy usage. Like this BBC article mentions, inertia on the part of consumers means that they are happy to continue with the status quo as they don't see any significant problem on the surface or improvements that can be made. There needs to be a clear incentive that compels consumers and manufacturers alike to seek out a greater good - and like this Wikipedia article on the EU energy label directive explains and these washing machine guides make the case, that by prominently featuring the energy efficiency rating of appliances like the washing machine at the point of sale, you provide a measurable factor which convincingly nudges the consumer to make a rating comparison and to seek out the best in class, while providing a clear reason for appliance manufacturers to create better and more efficient products to stay ahead in business and drive sales, in response to that customer demand. When we clearly demonstrate to the consumer why buying energy efficient washing machines and appliances are a good investment, because they translate directly into real and tangible savings and lower energy bills, with the added benefit of doing your bit for the environment, then you have a clear incentive that drives us forward. However, I still think the EU energy efficiency rating label can be more effective if it was coupled with some real life price figures to put into perspective how much we could save - as we are currently only making comparisons on the basis of A,B,C up to G as to how efficient something is - If I knew a product rated A costs £100 less a year to run compared to a product rated C, I wouldn't mind paying a little extra for the more efficient appliance when I intend to use the machine for several years - the figures would speak for themselves.
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