College of Engineering

THE UNIVERSITY OF MICHIGAN

CleanTech Venture Opportunities

COURSE NUMBER: ES 520Instructors:Peter Adriaens, Ph.D., P.E.

Winter B, 2008 Phone: (734) 763-8032

TTh 3:30 – 5:00 PME-mail:

1180 Duderstadt Center

Tim Faley, Ph.D., M.B.A.

Phone: (734) 615-4425

E-mail:

Course Materials

This course will use a book, the CleanTech Revolution (Pernick and Wilder, 2007), in addition to a select number of engaging and informative readings as well as business cases. Additional materials can be accessed via CTools. The cases and relevant papers will be available at Harvard Business OnLine (instructions for access to be sent later).

Course Websites

Course materials will be posted on CTools ( A wiki will also be used as a course management tool. Students are encouraged to contribute questions, answers, notes and links to the wiki. It can also be used for basic team project management. The link to the wiki is Contributions to the wiki will be considered as part of the participation grade. The password for making edits is venture.

GRADING STRUCTURE

The grading will be based on the following metrics:

Homeworks (including in class assignments and ’10 to watch’ assessments): 10%

Class participation (including contributions to the wiki, and case discussions): 20%

Midterm and final project report: 40%

Project presentation(s): 30%

Peter Adriaens, Ph.D., P.E.

Dr. Adriaens is a professor in Civil and Environmental Engineering - Program of Environmental and Water Resources Engineering. He currently is appointed in the Zell-Lurie Institute for Entrepreneurial Studies in the Ross School of Business to focus on educational and research program development. His research on ‘flask-to-field’ multidisciplinary technology development projects and consulting experience emphasizes industrial sustainability issues, including site remediation pollution prevention, and corporate value creation along the water-energy nexus.

Tim Faley, Ph.D., MBA

Dr. Faley is the managing director of the Zell Lurie Institute for Entrepreneurial Studies and managing director of the Wolverine Venture Fund (instructor for ES701 – WVF). He was formerly the director of technology transfer for UM’s College of Engineering. Prior to his arrival at UM, he spent 15 years with the Dow Chemical Company, his last assignments being in technology licensing and corporate venturing.

Sessions

T 3/4Situating CleanTech Venture Investment

Topics:

Discussion of investment drivers in startup and corporate ventures

Class project – team formation

Readings

Aurora Energy podcast/DTE webcast

The Economist: CleanTech VC in US & China

Th 3/6CleanTech Opportunity

Topics:

Overview of the value-creation perspective

Innovation, Strategy, Finance, Marketing

Readings:

Mullins, John W. The New Business Road Test: What entrepreneurs and executives should do before writing a business plan (Prentice Hall 2003): Chap. 1, "My Opportunity: why will or won’t this work?" (pp. 2-23).

Porter, Michael. “What is Strategy?” HBR reprint 96608 (1996).

Living Case:

WOW Energies (with comments by Mario Romero, CEO)

T 3/11Value Creation in the CleanTech space

Topics:

Difference between CleanTech and other technology domains

CleanTech Drivers

Venture investment objectives: Government, Corporate, Venture Capital

Readings:

CleanTech p 1-29

The Economist: Business and Climate Change

The CleanTech Report: Chapters 1 and 2

Th 3/13Venture Investment Strategies in CleanTech

Topics:

Types of investors

Timing of investments

Exit strategies

Readings:

Zider, Bob. “How Venture Capital Works” Harvard Business Review (Nov. – Dec. 1998); pp. 131-139 (Reprint #98611).

Case: FortuPower Cell

T 3/18Solar Energy: Technology, Drivers, Challenges

Topics:

Technology basics and alternatives

Technology and strategic drivers

Challenges and investment momentum

Readings:

Pernick and Wilder, pp. 29-59

Economist Biotech and Solar Tech Quarterly pp. 14-17

Relevant Weblinks:

American Solar Energy Association:

Department of Energy:

Case: ‘Ten To Watch’ (Pernick/Wilder)

Th 3/20Wind Power: Technology, Drivers, Challenges

Topics:

Technology basics and alternatives

Technology and strategic drivers

Challenge and investment momentum

Readings:

Pernick and Wilder, pp. 59-83

Wind Power Outlook 207

Relevant weblinks:

American Wind Energy Association

Case: Wind To Energy (Ivey)

T 3/25Intellectual Property in Clean Tech

Guest Lecturer: Jeffrey Schox, Patent Attorney, Schox, PLC

Readings:

Teece and Pisano, 2007. How to Capture Value from Innovation: Shaping Intellectual Property and Industry Architecture. (HBR # CMR390)

Th 3/27 Biofuels: Technology, Drivers, Challenges

Topics:

Technology basics and alternatives

Technology and strategic drivers

Challenge and investment momentum

Readings:

Pernick and Wilder, pp. 83-115

Economist: Biofuel and Solar Tech – p 10-11

Case: Aurora Revisited (Videolink with Jim Long, Gabriel Ventures, CA)

T 4/1 Transportation: Ultra-Efficient, Low-Emissions, High Performance

Topics:

Technology basics and alternatives

Technology and strategic drivers

Challenge and investment momentum

Readings:

Pernick and Wilder, pp. 141-167

A technical note on ethanol as motor fuel

Case:

Fuel Cells; The Hydrogen Revolution (HBR #804144) or

The Future of Hybrid Electric Vehicles (HBR #502052)

Th 4/3Green Buildings

Topics:

Technology basics and alternatives

Technology and strategic drivers

Challenge and investment momentum

Readings:

Pernick and Wilder, pp. 115-141

National trends – green buildings

Living Case:

SITUMBRA (Dr. Harry Giles)

T 4/8Water Treatment

Topics:

Technology basics and alternatives

Technology and strategic drivers

Challenge and investment momentum

Readings:

Pernick and Wilder, pp. 213-237

Case:

Glegg Water Co and the ECell (HBR case)

Th 4/10CleanTech Marketing

Topics:

Technology adoption: Crossing the Gap

Five key lessons

Readings:

Pernick & Wilder, pp. 261-285

CleanTech Report 2007, Chapters 3/4

T 4/15CleanTech Venture Opportunity Recap

Th 4/17-Tue 4/24Presentations

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