Pacific Energy Innovation Association

Charting Our Energy Future

Forum 2004

On May 3rd at the Hilton Vancouver Metrotown, Vancouver, Canada, the Pacific Energy Innovation Association and its sponsors held their 3rd biennial Charting Our Energy Future Forum 2004  on:

Addressing Climate Change – Issues & Solutions

Introduction

Forum 2004 was a dialogue.  On the one side were the agencies, government service representatives, and experienced innovative entrepreneurs who regularly supply support and services to the development and commercialization of new technologies and the economic development of communities and regions.  On the other side were researchers, scientists, manufacturers, and project developers as the innovators, entrepreneurs, and producers of energy supply and efficiency technologies.

Forum 2004 brought together, by invitation, the enterprises, service providers and individuals who participated in PEIA Forums 2000 and 2002 to continue the dialogue of those conferences.  On one side were innovators, entrepreneurs, and producers of new energy supply and efficiency technologies.  They included manufacturers, researchers, and project developers.  On the other side were agencies, government service representatives, and experienced entrepreneurs who support the development and commercialization of new technologies.

The former provided an up-date about the progress of their enterprises, and had the opportunity to speak directly with the latter about the type of support they found to be most effective.  Thus, the dialogue continued.

By inviting “developers” to meet with “support providers”, Forum 2004 crafted a “crucible” to assist the two groups in harmonizing their immediate and short-term efforts.

The proceedings of Forum 2004 are captured in the Synopsis, and the Conclusions & Recommendations suggest actions for stakeholders and support providers, who received both documents.  PEIA’s Directors welcome opportunities to address interested groups about them.

Synopsis

A.      Opening:   Conrad Guelke – Director, PEIA; Chair, Conference Committee.

         Welcome to the Pacific Energy Innovation Association’s Forum 2004. 

         And, our most sincere thanks to our sponsors: Western Economic Diversification, Terasen Gas, University of BC.

B.      Introductory Remarks:   Penny Cochrane – President, PEIA.

1. The mission of the Pacific Energy Innovation Association (PEIA), as an association of independent energy professionals, is to promote discussion and action to advance energy technology and policy development.  The purpose of the PEIA bienniel forum is to explore and address issues facing the energy industry in BC, Western Canada and the Pacific Northwest.

Our 3^rd biennial conference has a compact “discussion” format contrasting to our large, “traditional” conferences held in 2000 and 2002. Today we focus on “tracking” progress – it’s as important as planning for reaching our goals.

We have surveyed presenters from previous years to obtain information and insights about changes that have occurred and need to be made.  While members of our audience represent solutions, they also seek answers and solutions for moving technology toward our goals of sustainability.

 

2. Respondents seem to be doing better than when we first met them in 2000 and 2002.  They have created business opportunities that provide solutions to the challenges of climate change.

Barriers to technology development, implementation & expansion include: low energy prices, 

lack of clear federal government policies/incentives for industrial technology adopters, and lack of demonstration projects to increase understanding and trust of available technologies.

The Industrial Research Assistance Program (IRAP) is universally applauded for its support.

·Provincial support is lacking, and BC’s Climate Change Action Plan is stalled politically.                 

People are frustrated that after 15 years of talk, with little advancement of implementation.

As Canadians, we have a tendency to sit and wait for our governments to tell us what to do.  The technology developers, innovative entrepreneurs and the research community have to ask for what they need to get things moving.

 

3. Westcoast collaboration is needed and can provide environmental and efficiency benefits to all the players.  The North South corridor offers business opportunities to the entire region:

California is the world’s 8^th largest emitter of GHGs.

The Governor’s Advisory Group on Global Warming has a preliminary list of measures for the Governors of California, Oregon and Washington State, who have formed a “Global Warming Initiative” to take action in the region..  Those measures are all familiar to us here in Canada.  We may be able to assist our neighbours to avoid expensive development and move quickly towards implementation. 

Hon. Jeff Morris, Director, NW Energy Technology Collaborative located at the University of Washington, will speak at lunch.

C.      Environment & Sustainability Panel:   Challenges of the New Realities.     

Speakers:  

Dr. Stewart Cohen – Adjunct Professor, UBC Institute for Resources, Environment & Sustainability; Adaptation &  Impacts Research Group, Environment Canada.

Dr. Robert Evans – Director, Clean Energy Research Centre, University of BC.         

Mr. David Biggs – Co-Founder, Envision Sustainability Tools Inc.               -          

Moderator:   Mr. Timo Makinen, Director of Business Development, Vizon SciTec Inc. (formerly BC Research Inc.)

1.   Water Issues Arising from Climate Change (Cohen).

•  Greenhouse gases in the atmosphere today are up to 380 ppm CO₂ from 300 ppm in 1900.   Average global temperature is expected    to rise   2° to 5°C by 2100, depending on the climate analysis model.

•  Global warming is reducing water flows in BC.  We will experience lower snow packs and lower melt peaks that will be earlier by one month by 2040, increasing the flow in February to April each year and reducing summer flow.  

•  If water consumption is not reduced, hydropower generation will be at risk, and there will be less water in the growing season.

•  If flow peaks are shifted, reductions in firm hydropower and flow deficits for fish will occur.

•  Conflicts between the demands of people, hydropower, fish, and agriculture are not being managed in Canada.  No one is in charge.

•  Must integrate water management with local growth strategies through clear mandates.

•  Need to consider climate change in planning – better information on water demand and supply.

•  Identify adaptation options, create regional “adaptation portfolios” (e.g. Okanagan, Columbia).

2.   Moving Toward a Clean Energy Future (Evans).

Energy conversion chain:  Sources (fossil fuel, nuclear, renewable) � Processing (emission �) � Carriers (refined petroleum, electricity, hydrogen) � Storage � End-use conversion (emission �) � Energy needs.

•  Demand-side challenges: price is effective, social (wants, real needs), end-use technology.

•  Supply-side challenges: clean fossil fuels, affordable renewable energy, safe nuclear power.

•  Is “clean coal” an oxymoron?  Engineering is known, the issue is cost (see Sasol, SA).

•  Is CO₂ sequestration realistic?  Improve techniques, reduce costs.

•  Can we rely on renewables?  Somewhat (12%) – energy density is very low.  Wind can be competitive in good locations;  photovoltaic cost is a problem, currently ≈ 30¢/kWh.

•  Is nuclear power dead?  Issue of waste management still looms, while the engineering is okay and the production is environmentally clean.

•  Is hydrogen a useful energy carrier?  It has limited prospects with very high storage and production costs.

•  Cleaning up hydrocarbon fuels would go a long way to providing a clean energy future.

•  End-use technologies provide hybrids, with fuel switching capabilities, including self- generation. 

•  Improved efficiency of buildings and industrial processes.

3.   The “QUEST” Sustainability Model (Biggs).

• ·The communication challenge, dialogue needed:  Analyst � Decision Maker � Stakeholder � Decision Maker.

•  QUEST is a suite of tools with an electronic game-like interface so public and decision makers can readily see the impact and effects of resource choices and co-create sustainable solutions.

•  Choose scenarios and evaluate their future impacts.  Does not include nuclear option.

•  The software model is built on an integrated system of nine key variables that interact dynamically, meaning that a variable cannot be changed without affecting the others. 

•  Power Quest” is being developed for BC Hydro for integrated electricity planning.

•  Internet version is Power Quest Express.

• See www.envisiontools.com, www.sdri.ubc.ca.

D.      Marketing Panel:   Needs of Technology Developers to Speed Up Commercialization.

Speakers: 

Mr. Ken Fielding – President & CEO, Delta-Q Technologies Corp.

Mr. Andrew Hall – Director of Corporate Development, QuestAir Technologies.

Dr. Nigel Fitzpatrick – Chairman of the Board, Azure Dynamics Corp.

Moderator:  Mr. Clay Braziller, Senior Business Analyst, Canadian Institute for Market Intelligence (CIMI).

1.   High Efficiency Power Electronics – control, conversion, monitoring (Fielding).

•  AC/DC power conversion: battery chargers (90% efficiency), power supplies (save 15%).

•  DC/DC power conversion: motor controllers, DC/DC converters.

•  The clean transportation challenge:  700M vehicles today, 3B in 2050.

•  Leaders in core market: small electric vehicles (golf cart type), lifting devices/trucks.

•  “Dongo”:  provides power to computers more efficiently.

•  Challenges: Market (competition & adoption risks); Technology (design & execution risks); Resources (finding the right people); Financial (finding the money).

2.   Hydrogen from Hydrocarbons – the only realistic alternative (Hall).

•  Ideas & company originated with Bowie Keefer.

•  Efficient, proprietary gas separation/purification systems: PSA (pressure swing adsorption).

•  H-9100 for PEM (proton exchange membrane) fuel cells.

•  M-3100 for methane/CO₂ separation (landfill gas recovery); other gases: oxygen, helium.

• “ On board vehicle” gasoline � H₂ production would speed fuel cell vehicle adoption.

•  Challenges:  Difficult private equity market; Government support has been important;  Industry co-operation would help to lobby government and “navigate” funding sources.

3.   Hybrid Liquid-Fuel/Electric Engines (Fitzpatrick).

•  Here too, Bowie Keefer has made contributions.

•  Ferdinand Porsche had a hybrid engine in 1930s, University of Toronto in 1975.

•  Electric power packages now make hybrids economic.

•  Azure Dynamics has proprietary hybrid electric vehicle technology – TSX Venture Exchange., market cap. $75M.

•  Customers are interested in cost, reliability, and emissions, not climate change per se.

•  Best gains (50%) in stop/go:  Purolator, Canada Post, Military, US Mail, London Taxi.

•  Emission reductions:  HC ≈ 90%;  CO ≈ 80%;  NO ≈ 50%. 

•  Customer return on investment is 20% at 70¢/l  fuel cost, and 35% at 90¢/l fuel cost. 

Questions/Comments:

•  The cost of an internal combustion engine burning hydrogen is 20% of the cost of a fuel cell.

•  “Well-to-Wheel” studies at MIT show only a 2% efficiency improvement for fuel cells.

E.    Luncheon:   The Northwest Energy Technology Collaborative.

                          Hon. Jeff Morris – Washington State Legislature (Democrat). Director, Northwest Energy Technology Collaborative.  

•  NWETC activities include: demonstration projects; obtaining R&D money; undertaking regional branding and marketing for technologies.

•  The busiest portfolio is Demonstration Projects.  It’s the “Valley of Death” portfolio, which involves β-testing to check the laboratory science.

•  Cross-border companies and research organizations are being encouraged to participate. 

•  Canadian companies with eligible projects have access to US Federal funds.

•  EnVenture Northwest was established to connect to the venture capital community.

•  A recent study, “Poised for Profit” describes the potential markets for new energy technologies.  A Hydrogen/alternate-fuel highway has been announced in California. 

•  NWET Showcase, an alternative energy and energy technology exposition, will be held in Victoria BC, July 13, 2004.  Forum attendees were encouraged to become involved and to  present their projects and technologies. 

F.      Funding & Assistance Panel:   What’s Available & What’s Working.

Speakers:     

•  Mr. David Smith – Associate, RPD Associates.

•  Dr. Ben Pedret – Industrial Technology Advisor, Indusrial Research Assistance Program (IRAP).

•  Mr. Stephen Hall – Principal, Stephen F. Hall & Associates.

Moderator: Mr. Bruce Vernon – Director, PEIA.

1.   Federal Tax Incentives (Smith).

•  Scientific Research and Experimental Development (SR&ED) tax incentives.

•  In 2003, $1.8B was distributed to approximately 12,000 companies, representing 27% of Federal R&D spending.

•  75% are small companies;  80% of applicants get 80% of what they claim.

•  On expenditures of less than $2M, 35% is refundable in cash;  for more than $2M in expenditures, 20% in refundable in cash (i.e. not a tax credit).

•  SR&ED supports creating or improving product or process using engineering, computing, physics, chemistry, or biotechnology.

•  Three technological criteria must be met: an advance or improvement is expected; the outcome is uncertain; there must be experimentation.

• Energy-use minimization focuses on peak reduction, novel technology, and secondary energy sources – prime candidates for SR&ED credits.

2.   The Industrial Research Assistance Program – IRAP (Pedret)

•  In BC, there are 30 Industrial Technology Advisors (ITAs), and grants total $18M/year.

•  IRAP “is not prescriptive”, criteria are “fuzzy”, judgment by a champion (ITA).

•  SR&ED applies after a company has spent the money, IRAP pays “as you go”.

•  IRAP provides “early money”, in the “valley of death” stage, where cash flow is negative.

•  IRAP emphasizes people, having a credible team, less emphasis on technology details.

•  Good business plan (20 pages) with milestones, technical challenge, direct benefits.

•  Matched funds up to 50%, with a maximum $350K per project. There are 120 in BC.

•  Loans: maximum of $1M, 10 year term;  repaid from royalties;  written off if project fails.

•  Secrets of success for IRAP support: focus on the people; sell the value, not the technology;  acknowledge the challenge; maintain a collaborative spirit.

3.   Neighbourhood “Energy Storefronts” – conservation from the “bottom, up” (Hall).

•  Moving toward sustainable infrastructure: social infrastructure has to mirror energy technology of the future;  IPCC, 60% CO₂ reduction by 2030; local context is key to achieving reductions.

•  Challenges include inflexible management systems.

•  Storefronts would be like “blue boxes” for recycling. A physical presence on the ground would be established, as nothing exists now.

•  Improvements can be financed through lower utility bills.  For example an Energy Star furnace reduces natural gas consumption by about 30% and electricity use by 50%.

•  The Storefront’s business would focus on residential/commercial retrofits; new construction design; and renewable system development.

G.    Investment Panel:    Making a Worthy Business Case.

Speakers:  

•  Dr. John MacDonald – Chairman & CEO, Day4Energy Inc.

•  Mr. Rick Hopp – Director/Shareholder, Mountain Power.

•  Mr. Paul Willis – President, Willis Energy Services Ltd.

Moderator:  Gerhard Van Aswegen – Director PEIA.  Principal, Topaz Management Inc.

1.   Seeking Investment and Keeping Control (MacDonald).

•  Seek private investment when you have built some value.  The measures of value are:

  - Understanding your business:  Who are your customers? What are their needs? How much will they pay?  These 3 questions are the heart of marketing and generally the weakest link of tech-based companies who don’t answer them.

  - Knowing how you will operate and staying focused.

  - Documenting the value of your technology in the form of a business plan.

  - Demonstrating the value of your technology.

  - Building a good team.  Investors invest in people.

  - Providing an exit plan for the investor.

•  Integrate government support and private investment: “we have best support on the planet”.

  - 3 key levers to obtain support (by priority): Procurement, Tax Incentives, Grants & Loans.

  -  IRAP is excellent; its great advantage is simplicity, but it’s becoming more complicated; early stage companies can’t afford complicated programs.

  -  The procurement lever is “real”, the others are more “qualified”.   MacDonald Dettwiler and Associates was built on that.

•  Hang on to your technology, majority and keep growing.  Build value as fast as possible.

  -  Think of ways to build (perceived) value with minimum resources and burn-rate.

  -  Raise money before you become desperate.

  -  Robust corporate structure: shares for founder; financiers are only interested in money.

•   When do you to let go of your technology and majority position?

  -  When success demands more resources and provides leverage, not when money runs out.

  -  Remember, a smaller part of something is better than a large part of nothing.

  -  Know your limitations; decide on partner (to add value) or 1+, so no majority shareholder.

•    Day4Energy

  ·   Not many people care about making sacrifices to improve the global environment.  The key is to make environmentally friendly    technology cost competitive – to remove the sacrifice.

  ·  Day4Energy aims to do this by commercializing a photovoltaic technology to make it cost competitive: reducing the resistance of cells so they work more efficiently and use less silicon.

  ·   Implement a manufacturing process compatible with existing process, changing last step only.

  ·   The vision is to be competitive in main stream power generation, at 5-7¢/kWh (in SW USA).  It’s the biggest business in the world, in the order of $200B/year infrastructure investments.

2.   Funding Requirements & Strategies – an overview of two companies (Hopp).

•  Have a clear vision, tell your story, be passionate;

•  You need money to grow and survive;  maximize government support, dollars and credibility.

•  A realistic business plan is crucial: need good management team; financial, technical, marketing plans.

•  Maxim Power: independent power producer; build, own, operate generating assets (100 MW);  market cap. $56M; no government funding; use proven technology; started small in Austria.  Focusing on green energy in Europe, 13-15¢/kWh, guaranteed for 20 years.  Diverse portfolio.

•  Mountain Power:  advanced lithium-ion power packs for electric & hybrid vehicles; company at “pre-commercial” stage, some products;  NRCan, IRAP support;  still in hands of founders.

•  If a product has climate change impacts, check Sustainable Technology Development Canada and Hydrogen Early Adopters (h2EA).

•  Read Good to Great: Why Some Companies Make the Leap, and Others Don’t  (Jim Collins).

3.   Investing in Distributed Generation – small is beautiful (Willis).

•  The new world: power from small plants, distributed throughout a jurisdiction.

•  Co-generation (natural gas/waste energy); wind turbines, small hydro, solar, waste energy.

•  Think about co-generation: e.g. 150 kW co-generation units for apartments.

•  Consider distributed generation from a small investment perspective, such as small units on farms, like windmills from 50 years ago.

•  Distributed energy: a huge new opportunity for the consumer loan industry (like automobile and house loans).

•  In Ontario, if half of the 55,000 farms had wind turbines (27,000 units) at 50 kW in size, their operation would reduce the peak demand of the integrated electricity grid by 1,350 MW or 5 percent. 

•  To carry on with the example, a 50 kW unit costs $70K; equipment purchase takes $7K cash down payment and a $63K mortgage; the windmill produces 110,000 kWh annually avoiding the 10¢/kWh utility charge and results in annual savings on utility bills of $11K cash.  This works out to a 6.5 year payback.  Or, with a 25-year $63k mortgage at 5 percent the annual payments are $4,500 per year, providing a net annual saving of $6,500 year.

•  Another example in Ontario: 2,000 apartment buildings, hot water cogeneration equipment producing hot water and electricity, units sized at 150 kW reduce the peak demand on the integrated system by 300 MW, and have an 8-year payback period for the apartment owners.

•  Backbone of future power systems will be distributed generation, via small investments.  For example, the deployment of roof-top solar panels in southwestern US will be rapid once the technology is reliable and the public and utilities can be convinced. 

H.     Closing Discussion:   Plenary.

Getting the right price signals is essential.  Where we see advances in alternate energy and distributed energy supply, such as in Europe, we see high energy prices.

Natural gas is a declining resource, nearing peak consumption.  It is far too valuable to degrade by burning in a utility boiler.  It must be used at maximum efficiency, as in Europe.

Burning natural gas at 50% efficiency is unacceptable – 90% is achievable with cogeneration.

 

Electric utility policy lacks vision and direction – something it had 30 years ago.  Planners have become caught up in markets and, focused as they are on fuels and technology, consider burning gas to be a resource option.

The market place is good for achieving short-term efficiency, but not for long-term issues like security of supply and system efficiency.

Our self-indulgence must replaced with a new guiding planning mantra;  “local, incremental, and economic.” – True solutions will encompass all three.

 

 he nuclear industry faces a challenge.  It can deliver large-scale power quickly, particularly for rapidly developing regions like India and China.  But, will those regions choose to pay for large central systems and the associated transmission infrastructure with their limited funds,  or will they work collaboratively at the community level to implement a range of available distributed generation solutions?

 

 The interaction between water availability, its storage, uses, and power production is critical.

 Most green energy resources (wind, solar) require huge storage (high lakes) for the energy produced to be of value, either as a distributed resource or as a supply to a central grid, since they provide only energy.  Without capacity, they cannot match the load profile of consumers. 

 PEIA should consider organizing an “Energy and Water Forum”.

 

Most consumers have a short-range price focus, which creates a major issue.  As a result, to avoid higher initial costs, developers will install electrical baseboard heating rather than gas.  Using the gas to produce electricity for baseboard heat is a great loss of efficiency.   

 

 The simplest and most effective first step in seriously addressing climate change, is to alter  our driving habits (SUVs) and insulate our houses.  Furnace-less houses are possible in the Westcoast climate.

 

This will be the energy crisis century.  No one knows when energy demand will exceed supply.  The pessimists say 2010, the optimists predict 2050.  We will have to continue to burn coal, and we will need nuclear power.  All the other sources are intermittent or location dependent.

 

 Nobody talks about storage as part of a systems problem.  We have to start thinking of the hydro system as an energy storage system – then, all new generation that can replace hydro domestic generation will be welcomed.  We could afford to pay for new alternate energy because it would increase the available volume of a high-priced commodity – energy storage.  The storage system would shape the new alternate generation.

 

Our energy future will be vastly different from our cheap energy past.  Since 1980, the world’s annual rate of oil and gas discovery has been below the rate of refinery production.  The social implications of energy shortages and deprivation are immense.  Let’s use time and resources now to make the necessary changes.  The answers are before us – what’s required is resolve.   

 

Conclusions and Recommendations

The Pacific Energy Innovation Association’s third biennial forum heard from presenters of the first and second PEIA Forums held in 2000 and 2002 about changes in their business conditions, the status of their technology development, and their current challenges.  For the most part, their business has been good – investment has increased and markets have become increasingly responsive to innovative applications of new technologies. 

Forum 2004 focused on “enabling” innovators and entrepreneurs in the emerging energy technology and energy service field in the Pacific Northwest to meet the Climate Change Challenge.  It was evident from the previous forums that small business entrepreneurs in research, scientific and engineering firms are the engine driving local activities and successes. 

The purpose of Forum 2004 was to create an opportunity for gathering information about tools and experiences that, when shared, could assist all participants.  Beyond that, through this report, the information could be shared with sponsors, utilities and relevant government agencies.  Forum 2004 created “bootstraps” by examining what is working, how it works, and how to increase the effectiveness of corporate efforts and government programs in meeting the Climate Change Challenge.  In particular, the intent was to generate actionable outcomes.

All businesses must monitor their direction regularly and, indeed, small businesses must be particularly nimble and quick in responding to new information and customer needs.  Thus, Forum 2004 began with an update on the challenges and issues which climate change solutions must address.  By looking next at enabling tools - themselves innovative applications for business - and listening to the experience and knowledge of successful entrepreneurs, the day provided insights and direction for successful strategies and solutions.

CONCLUSIONS

1.  Participation at Forum 2004 

•  A survey of previous presenters provided insights and direction for PEIA Forum 2004, and several “alumni” participated again.  

•  Synergies were created between PEIA Forum 2004 and Western Economic Diversification (WD), whereby Forum conclusions and recommendations can inform WD’s Western Environmental Technologies development strategy. 

• I nformation about Canada’s Scientific Research and Experimental Development (SR&ED) tax incentives and the Industrial Research Assistance Program (IRAP) demonstrated the long-term commitment of the Canadian government to support  small firms in systemically increasing the value of their services and contributing to sustained economic growth.

2.  Update on Key Issues 

•  The predominant fresh water issue for BC arising from global warming is the prospect of reduced water flows in provincial watersheds.  By 2040 spring run-offs will peak one month earlier than today, and less water will be available during the growing season.  

•  From a “big picture” perspective, and remembering the huge scale of future energy demand as loads grow and old plant is replaced, the cleanest new energy option (as regards green-house gases) is probably nuclear power.  Much more work is required to clean up hydrocarbon fuels.  Renewable energy sources will have an important role to play, but to suggest that they can fill the future global energy supply “gap” is not borne out by the data.

•  All alternative ways of meeting future energy demand face some constraints.  However, the largest barrier to alternative energy supply is the existing low retail price of energy.

•  Improving end-use energy efficiency must be the starting point for all efforts.

•  While there is widespread public concern about nuclear power, the fact remains that it is the only large centralized energy source that does not produce greenhouse gases.  Furthermore, it is the only large-scale resource available to replace depleting global fossil fuel reserves. 

•  Every business must plan in consultation with its stakeholders.  PowerQuest is an information technology application that collects, processes and represents technical and energy information in a style and format which is friendly and understandable by audiences of all ages.  It allows interaction, feedback and (most importantly) dialogue leading to informed stakeholders and decision makers. PowerQuest is entrepreneur-based, and was born out of research work at UBC’s Sustainable Development Research Institute.    

3.  “Enablers” of Development 

•  The SR&ED tax incentives are designed to encourage research and development in solving technological problems and uncertainties that conventional methods fail to address.  All companies working to develop or improve a product or a process should apply for SR&ED credits.  Much of the work in the energy industry is focused on alternate energy technologies and the optimization of existing systems and processes – natural fits for SR&ED.  Visit www.cra-arc.gc.ca/taxcredit/sred/menu-e.html.  A similar tax incentive exists in BC.

•  The Industrial Research Assistance Program of the National Research Council of Canada (NRC-IRAP) has worked quietly with small and medium sized companies (SMEs) for almost 60 years.  It is regarded internationally as one of the best programs for providing financial assistance and technological and business advice to innovators.  Its Industrial Technology Advisors (ITAs) are the mainstay of the program and everyone is advised to identify their IRAP ITA by calling the nearest IRAP Regional Office (1-877-994-4727).   

•  Every enterprise needs a business plan.  It is fundamental to defining its mission, objectives, and strategy and for communicating with investors, partners, and markets.  Founders must survive the “Valley of Death”, the period of negative cash-flow in moving from concept and sweat equity to venture capital investment, product introduction, revenue and breakeven.  Business plans must be dynamic and recreated regularly to keep the company moving forward towards breakeven. 

•  An offer of collaboration with PEIA was presented at the Forum by Jeff Morris, Executive Director of the Northwest Energy Technology Center.  NWETC facilitates research and development for technologies applied to energy by supporting demonstration projects that will move intellectual property from the laboratory to a commercial product.  To reduce duplications of effort and increase the efficiency of research and testing, NWETC offers technology research firms in Canada the opportunity to join the collaborative and invites utilities, large research institutes, campuses and energy corporations to consider participating as members of its Board of Directors.  Synergies can increase the utilization of laboratories and create economies of scale for new test facilities.  NWETC will assist with international grant applications and approvals, focusing resources on vital research, earlier testing, and links to larger markets.  More information is available at www.nwetc.com. 

4.  Insights from Forum 2004 

•  Managing and planning investment in a startup enterprise is essential for ensuring that sufficient funds are in place when needed.  A company cannot succeed without navigating the Valley of Death, and needs seed capital and angel financing to reach the breakeven point.  Once revenue is sustained, venture capital will be needed to grow operations to a level sufficient for the company to go public.  Financing a startup is its own art and discipline, and all companies require professional advice and assistance.  That fact must be accepted early.

•  Project management skills are vital to planning what needs to be accomplished, when, by whom, and at what cost.  A project plan is needed so that changes can be made quickly, and the interdependence of tasks and the impacts of changes are readily seen.  

•  ntroducing new and alternative energy technologies and services to retail markets may benefit from “bundling” for delivery to specific consumer sectors.  Packaged measures and equipment, together with utility and government incentive programs offered on a neighbour-hood basis, would be more economic and effective than large, centralized programs that do not include the transfer of technology skills to people.  

RECOMMENDATIONS

1.   Sponsors of PEIA Forum 2004 

Western Economic Diversification:

As an information provider with resources to support collaborative efforts, WD should build a collaborative network across Western Canada, based on the Northwest Energy Technology Center model.  A starting point would be to facilitate links and communication within the Environmental Technology Sector and with community and market stakeholder groups.  

 

Terasen:

Terasen should take a leadership role in regional contingency planning by developing teams to teach preparedness and assist with supply procurement.

2.   Federal Government 

Industrial Research Assistance Program:

IRAP’s program design should be a model for the delivery of government assistance programs in general. 

 

Natural Resources Canada:

NRCan should take a leadership role in the Canadian energy sector by providing a central electronic reporting site for tracking R&D.  It would include data, regular reporting, mapping, technology reports, project tracking and impact statements.  

Stakeholder consultation should be incorporated into program planning, design and delivery. 

 

Office of Energy Efficiency:

OED should expand program participation by regional outsourcing of administration and accountability, and incorporate stakeholder consultation in program planning, design and delivery. 

 

Federation of Canadian Municipalities:

FCM should establish a pilot program to bolster the technical and technology expertise of small businesses located within municipalities so that they may deliver services complementary to the municipalities’ climate change goals. 

 

Environment Canada:

The Ministry should foster a dispersed collaborative of small R&D  firms and educational entities to identify opportunities for joint effort.

3.  Regional Government – GVRD 

GVRD should collaborate with Crown Corporations and government agencies to develop regional climate change and emergency preparedness action plans. 

 

Long-term water supply, water use, and water demand forecasts should be incorporated in public planning to identify demand side efficiency options.  Interactive planning tools should be used to present issues and record stakeholder input.

4.   Provincial Government 

A provincial Climate Change policy should be released to provide the environmental and economic context for resource use and development in BC. 

 

Individual ministries should provide leadership and communicate with their stakeholders to develop climate change action plans. 

  

All Crown Corporations and government agencies should be required to develop and implement contingency plans to address expected global warming impacts. 

5.   Union of BC Municipalities 

Municipalities should encourage their small business communities to collaborate in formulating climate change goals and action plans.

 

Municipalities should maintain ongoing dialogue about climate change with residents and businesses, and integrate resource management planning and operations. 

 

Municipalities should consider establishing Demand Side Management storefronts to promote the adoption of new and innovative methods of reducing environmental impacts.

 

The participation of stakeholders in municipal planning should be increased through the use of interactive software planning tools.

6.   Utilities – Long Range Planning 

Utilities should use interactive tools to increase the participation of stakeholders in utility resource planning. 

  

Water supply and demand considerations should be integrated into long-term resource planning. 

 

Utilities should join the Board of the Northwest Energy Technology Collaborative to build technology development synergies amongst senior executive from both sides of the international border and for utilizing facilities such as Powertech and the research efforts of the Canadian Electricity Association.