The U.S. has yet to unlock the full potential of clean energy technologies in the 21st century. The commercialization of innovative clean energy technologies have fallen behind based on our countries demand.
There is a lack of creative financing for entrepreneurs to demostrate their proto types and commercializing for their innovative ideas in the market place.
Private investment is insufficient alone to bring these clean energy technologies to market. Mostley because of the high barrier to entry or capacity costs and the perception of high risk in unfamilier clean energy technologies.
This high barrier to entry hedges the fossil fuel-industry from competition from the new innovative clean technologies being integrated into the energy solution.
We need to embrace an open market that is opened up with the development of clean, resource efficient, affordable and reliable domestic energy sources.
Usually, Angel Investors, or Venture Capital are responsible for early-stage, high-risk ventures from beginning to commercialization. The problem is innovative energy technologies are beyond the scope of the average investment of these funding groups typically around $5-10M.
The development of full-scale utility power plants and manufacturing facilities will in most cases range from $50m to as much as several hundred million dollars or much more.
Banks and Investment Banks, have alot more funds to invest or lend than Angel Investors or Venture Capitalists, but are restricted based on their invesment policies to take on high amounts of risk.
So good luck getting them to invest or lend money for research and development or even pre-revenue ventures. Banks and Investment Banks are looking for prooven, demonstrable commercial scale projects.
Below is an example of funding sources at various stages of the technology life-cycle.
Clean Technology Energy Finance Evolution:
R & D
Friends & Family
U.S. Federal Grants
U.S.Guaranteed Loans
Proto Type/Proof of Concept
Friends & Family
U.S. Federal Grants
U.S.Guaranteed Loans
Angel Investors
Pilot/Demonstration
Friends & Family
U.S. Federal Grants
U.S.Guaranteed Loans
Angel Investors
Venture Capital
Family Offices
Commercialization
U.S. Federal Grants
U.S.Guaranteed Loans
Angel Investors
Venture Capital
Family Offices
Private Equity
Banks
Investment Banks
Competition
Angel Investors
Venture Capital
Family Offices
Private Equity
Banks
Investment Banks
The clean energy technologies with the greatest financial challenges tend to be: carbon capture and sequestration, geothermal plants, utility scale solar, battery manufacturing processes, biofuel production facilities, utility scale wind farms and small to mid sized nuclear reactors.
There are current energy mandates in place that you could piggie-back on in Washington enabling you to access billions of dollars of available funds in the form of U.S. Federal Grants that are non-dilutive to equity and the funds are non-recourse. This is an ideal strategy for the companies financially challenged with higher barriers to entry.
This is money that you don't need to pay back and has no restrictive covenants.
The key is to have a Lobbyist funding strategist formulate a congressional team of support to put pressure on the heads of procurement to access these funds within 75 days.
Also success is predicated on the time of the year usually the first 120 days of the new year when the Federal Agencies pockets are the fattest. After the 120 days monies dry up and you should wait for the next cycle of funding.
Grants can range in size from a few million, to tens of millions, to hundreds of millions, even billions in some cases. This could be for a limited time based on the current administration.
Its happening all the time just pick up a national newspaper and read the headlines...
Joshua D. Mosshart/ Joshua Mosshart
Joshua D. Mosshart
