DIRECTED ENERGY
Building successful renewable energy
companies in Western NY
Directed
Energy
The right products now
C-1. Allegany
C-2. Chautauqua
C-3. Cattaraugus
C-4. Erie
C-5. Genesee
C-6. Livingston
C-7. Niagara
C-8. Orleans
C-9. Steuben
C-10. Wyoming
What you do not know about Western NY
What you do not know about Western NY
Niagara Power Project
GAS - 17,126 (13% )
>1% 2%
19%
13%
OIL - 195 (<1% )
<1%
GAS & OIL - 30,133 (22% )
COAL - 12,618 (9% )
1%
22%
NUCLEAR - 43,487 (32% )
HYDRO (PS) - 1,525 (1% )
32%
NYISO
9%
HYDRO - 26,420 (19% )
WIND - 2108 (>1% )
OTHER (2) - 2,888 (2% )
NY Energy Fuel Types
2,515 megawatts (MW)
from 13 Generators
What you do not know about Western NY
Steel winds, 2.5 MW
NYPA Begins Review of
Offshore Wind Project Proposals
June 4th 2010
What you do not know about Western NY
Participants
Universities: University at Buffalo
Alfred University
Incubators:
Vantage Center
Harvester Center & Harrison Place
UBTI
Other:
BNE/BNP
Insyte Consulting
Hodgson Russ LLP
TCIE
Canadian Consulate
numerous companies & individuals
Six Thrusts…
1) Asset Inventory
2) Best Practices in Higher Education
3) SBIR Phase O program
4) Workshops/Programs
(& Business Attraction (5))
6) Direct Assistance
Best Practices in Higher Education in Energy
or
How does a modern University adapt to
new opportunities/challenges, i.e. ENERGY
School
Department
Degree
Concentration
Course
Content
Other
a big lift
still a big lift
achievable
very achievable
faculty? Course development funds?
Research University? interdisciplinary?
problem sets, guest lecturers, books, articles, websites
community involvement, special lectures, special days,
internships
Students want this in their curricula!
New hires should be considered
Research $ are abundant (stress opportunities to faculty/admin.)
Many faculty “brush up against” energy, but may not know it
SBIR PARTICIPATING AGENCIES
(# AWARDS FY 2007)
Department of Defense
Health and Human Services
National Science Foundation
Department of Energy
National Aeronautics and Space Administration
Department of Agriculture
Homeland Security
Environmental Protection Agency
Department of Education
Department of Transportation
Department of Commerce
1,982 sporadic
654 quarterly
396 yesterday
279 Nov
260 Sept
83
38
36 May
28
18 Nov
1
Source: State Science & Technology Institute
~$2.5 B/yr
No repayment
Not overly competitive
Business focused
Excellent networking tool
Angel/preseed funding follows this money
SBIR PHASE O PROGRAM
LEVERAGING YOUR FEDERAL $
$2K per company for successful proposal application
Reimbursements after receipt
Renewable energy focus (mostly DOT, DOE, NSF, DOD)
No late applications
Consultant services mostly (writers, technical, etc.)
Expanded to include Phase 1-2 transitions
Managed by our local TDO (Insyte Consulting)
Central New York, Capital Region, North Country, Southern Tier, and Mohawk Valley regions
Marcie Sonneborn
Western New York and Finger Lakes Regions
Jack McGowan
New York City, Long Island, and Mid-Hudson Regions
Franklin Madison, Jr.
SBIR/STTR
SMALL BUSINESS INNOVATIVE RESEARCH
SMALL BUSINESS TECHNOLOGY TRANSFER
A PRESENTATION FOR SMALL TO MEDIUM COMPANIES
(EMPHASIZING DOD AND DOE OPPORTUNITIES)
STEP; 14 Oct. 2009
Direct Assistance Program:
Client Companies are motivated to:
- participate in the SBIR program
- develop their business plans & accept investment
- introduce products & export them
- know that this is competitive
How it works…
- Co. cash match (@25%) used first
- no salaries, facilities, OH
- favorable buyout terms
- convertible debt / royalty on sales
Direct Assistance Program
~$10 K grant for business planning (3-6 months)
< $75 K investment for project assistance (6-18 months)
We bring nonfinancial resources including:
Committee of Professionals & all their contacts
Access to all incubator programs
Direct Assistance Program
What drives us (milestones)…
Directed Energy does well when its clients succeed –
- obtain additional investments ($250K)
- launch products
- make money (to pay us back!)
Other programs
that we find work
Venture Pitch
Smartstart/UNYTECH, WNYVA, Buffalo-Niagara High
Tech Venture Fair
VC in Residence
UVANY
Preseed Workshop
HTR’s EIR
Ask investors to work with you and supply candidates
Pitching to Investors (a 4-part series)
Jan 20th (8:30‐10 am) “The investment Landscape”
Kevin Albaugh, Intensive Energy
Feb 3rd (8:30‐10 am) “Making your pitch work”
Jack McGowan Insyte Consulting
March 3rd (8‐12) Registrants Deliver Their Pitch to a Panel
April 1st (8:30‐10 am) “They are Interested, What Next?”
Judy Albers, Excell Partners
12 companies (not all energy)
2 sets of 4 panelists listening to their pitch
Videotaped
media invited
Specific Example: Sprung Brett
~$10 K grant for business planning (3-6 months)
Developing a business plan to develop a novel wind
technology/business
Prior to award, the company
1) secured IP
2) developed a strong team
(academics, consultants, large companies)
3) invested a large amount of time
SPIR match, >25% cash match, SBIR DOD topic
Specific Example: Graphene Devices
~$70 K investment to launch a new product (9 months)
Producing a type of patent pending graphene
currently only available in the lab
Prior to award, the company
1) secured IP
2) developed a strong team
(academics, consultants, large companies)
3) invested a large amount of time
4) awarded NYSERDA, DOD, Panasci, NSF funds
5) many applications (too many?)
issue: business/application focus
solution: customer involvement
Specific Example: Isolation Sciences
~$70 K investment for launching product (18 months)
Launching a patented fume hood energy saving device.
Prior to award, the company
1) secured IP (awarded this week)
2) developed a strong team
(consult., partners)
3) awaiting cost share
4) working with Trillium
issue: business follow through
solution: pay them for delivery and sales
Specific Example: Solar Hydrogen
New technology – new company?
Patent pending technology to harness solar energy
using dyes coupled to chemical systems capable of
directly producing hydrogen gas
Meet with inventors
pressed workshop
Grad student mentorship
Federal and state funding
timed startup
The Business of Energy Series 2010
Smart Grid Opportunities
April 21
Biofuel Advancements
June 16
Photovoltaics - Silicon and Beyond
September 15
Marcellus Shale Opportunities
November 10
Agenda
Registration: www.businessofenergy.org
Wednesday, April 21, 2010, Buffalo Niagara Marriott, Amherst, NY
Biofuel Advancements Agenda (June 16)

7:30-9 a.m. Registration and continental breakfast

8:00 a.m. A Comparative Overview of Biofuels and their Potential to Meet Our Energy Requirements
Carl Lund, Distinguished Teaching Professor, Chemical and Biological Engineering, University at Buffalo;
Director, Catalysis and Reaction Engineering Laboratory

8:40 a.m. Ethanol - Sources, Production, and Economics, Including the Future of Cellulosic Processes
Michael Sawyer, Executive Vice President/CFO, WNY Energy LLC

9:20 a.m. Biosolids Engineering and Management
Rob Sampson, President, N-Viro Systems Canada LP

10 a.m. Break

10:15 a.m. Deriving Fuels From Forest Products
Joel R. Howard, CEO, Applied Biorefinery Sciences, LLC
11 a.m. Biodiesel - Sources, Production, and Economics
John Vavalo, Senior Vice President, Northern Biodiesel
11:40 a.m. Lunch
12:30 p.m. Innovation Needed to Drive Biotechnology Approaches to Bioenergy Development
Larry P. Walker, Professor, Department of Biological and Environmental Engineering and Director, Cornell
Biofuels Research Laboratory
Advice: Find Partners
A lot of work, but worth it
Thank you for your kind attention
 Martin K. Casstevens
 Business Formation and Commercialization Manager

University at Buffalo

Office of Science, Technology Transfer and Economic Outreach
(STOR); www.stor.buffalo.edu
 Director

Directed Energy; nydirectedenergy.org
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
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1576 Sweet Home Road, Suite 103
Baird Research Park
Amherst, NY 14228
Phone: (716) 645-8133 Fax: (716) 645-3436 mkc@buffalo.edu