PHOTONIC RADIATIVE COOLING 24 hour cooling, without electricity Increase in global energy residential growth by energy 2040 use for cooling people traveled by per 2100 meal in U.S. 11 billion 1500 83% 37% miles S O U R C E : NASA satellite imagery, U.S. EIA and DOE data books, NAS articles, U.S. Census Bureau, U.C. Berkeley research, IEA WEO 2014 2 Cooling in the U.S. annually consumes: 18% = 100 = $80 Billion of all electricity million tons of coal S O U R C E : U.S. EIA Residential Energy Consumption Survey (2009) and Commercial Building Energy Consumption Survey (2003), Average Energy Price (2015) 3 P HOTONIC No Electricity No parts Rmoving ADIATIVE COOLING S O U R C E : PI research, published documents 4 Works day and night! S O U R C E : PI research, associated published documents 5 Temperature ( C) 9F cooler than ambient air 45F cooler than aluminum 100F cooler than black paint! Time of Day 40-80 W/m2 cooling power Emissivity 1 0.5 0 0.3 1 1.5 2 2.5 5 Wavelength (μm) S O U R C E : PI research, associated published documents 6 8 10 13 20 Ideal first market has three components High value for cooling S O U R C E : Internal team analysis, expert interviews Sky-facing Technical fit 7 Buildings Refrigerated Trucking $24B $1.4B Spent on HVAC in the U.S. annually Spent on fuel for U.S. refrigerated trucking S O U R C E : BCC Research, IBIS World 8 Cooling Tower $140,000 3.2M Per year in electricity costs gallons per year in water losses Chiller Air Handler S O U R C E : EIA Commercial Building Energy Consumption Survey (2009), Trane® cooling tower product manual 9 Unit economics and 24/7 performance present compelling value 20% 3 year SOURCES: Internal team analysis based on $100/m2 cost in U.S. southwest and current average electricity prices (EIA) 10 savings on electric cooling costs payback period Launch and growth stages imply different pull-push tactics among segmented value net decision-makers Distributor SOURCES: IBISWorld, 2015; DOE, 1999. 11 Launch and growth stages imply different pull-push tactics among segmented value net decision-makers Distributor SOURCES: IBISWorld, 2015; DOE, 1999. 12 Buildings Refrigerated Trucking $24B $1.4 B Spent on HVAC in the U.S. annually Spent on fuel for U.S. refrigerated trucking PRC cools without fuel S O U R C E : BCC Research, IBIS World 13 Present cooling technologies in trucking “Reefer” units Gel packs Dry ice S O U R C E : Industry expert interviews, Frost and Sullivan industry reports 14 PRC offers improved margins 10% 2 year S O U R C E : Internal team analysis on scientific documentation and research results savings on cooling fuel costs payback period 15 Going to market means targeting the right segments 2. Last-mile/home delivery Market segment attractiveness 3. Long-haul 1. Regional distribution Large private fleet operators have scale, cash, and motivation to innovate S O U R C E : Expert interviews, Walmart webpage 16 Potential PRC Markets and Challenges Cost ($/m2, $/W) Now S O U R C E : Internal team analysis Next Coating of non-flat surfaces Future 17 Refrigerated Transport Buildings Estimated Addressable Potential (Billions) $8 $1 $4 R&D Focus Cost Competing Solutions Solar Photovoltaic Thermal Power Plants $10 Cost Cost, IP defense Cooling Power Density Cooling Towers Diesel reefer, Passive (ice, etc.) Cheaper Solar, cheaper land Cooling tower + Single-pass water Benchmark 3-year payback Transport cost per product-mile LCOE Reduction Competitive Advantage Carbon-free, electricity neutral Carbon-free, electricity neutral Cools without increasing PV’s footprint Now Next S O U R C E : Internal team analysis, analysis expert interviews, Frost and Sullivan industry reports, SEIA reports, CBO report, IBISWorld reports Liquid Natural Gas $4 Military $3 Cooling Power Density Non-flat coatings Boil-off recompressor Unlimited budget for spares LCOE Reduction Transport cost per mmBTU Undetermined Water conservation Carbon-free, electricity neutral Equipment works when hot Future 18 Estimated Annual Revenue Phase One Phase Two Phase Three Prototyping Business Model Testing Startup Launch Major R&D Manufacturing Expansion Series A and B Incremental R&D Market Domination Exit $350M $75M $3M 2 years Time 4-6 years S O U R C E : Internal team analysis S O U R C E : Internal team analysis, expert interviews, Walmart Stores Inc. 2015 10-K, Ingersoll-Rand PLC 2015 10-K 19 PHOTONIC RADIATIVE COOLING 20 Aaswath Raman Eli Goldstein Lead Scientist Laboratory Lead Travis Dziubla Lisa Becker Pete Dillon Kenny Gotleib Kurt Van Allsburg Anita Kotagiri 1 m2 PV 1 m2 PRC Power 150 W 40 W Energy 236 kWh/year 345 kWh/year Cost $250-400 $100-200 S O U R C E : NREL PVWatts Calculator and scientific observations in Palo Alto, CA; solar module power and price based on average commercially available offerings for PV module at 300W 22