Creating Cleantech Clusters

PD Philip CookeCardiff, Trondheim & Aalborg Universities

Presentation to Eilat-Eilot Renewable Energy ForumFebruary 22-23, 2012

Örnsköldsvik biorefinery cluster

Holmen

Eurocon

MoReResearch SEKAB AGA

Etek

ÖvikEnergi

Processum Domsjsö Fiber Domsjö Fabriker

Domsjö Biofuel Plant

Domsjö Specialities

DomInnova

Akzo Nobel

Denmark’s Shift to Decentralised CHP Source: Danish Energy Authority

Centralised CHP of the 1980s Decentralised CHP of Today

• Centralized CHP •Decentralized CHP • Wind Farm

Emergent Cleantech Cluster?

Israel’s Key Cleantech Firm CategoriesWater Solar Other Re- newables Other

AquaPure Arava CellEra (fuel c.) Arrow (waste mgt)Aquarius Chromagen Citrine (biogas) BioPetroClean (purif)AqWise DiSP Coriolis (wind) EER (waste mgt)Atlantium EDIG CQM (energy e.) Elcon (waste mgt)Bio-Pure IC Green Energy ELSPEC (wind) GreenRoad (trans)Blue-I Luz II EMEFCY (waste) IDE (desalination)CheckLight MST IQWind Levgum (recycling)Dorot Orion Solar Medis (fuel cell) Lextran (air purif)GES Pythagoras Metrolight (e.e.) Project Better Place (t)Mekorot SolarEdge Ormat (geothermal) TGE Tech (waste mgt)Netafim Solar Power Phoebus (e.e.) Vortex (pollution con)Nirosoft Solel Solar Power Elect. (e.e.)UniqKleen XJet REN (waste)

ZenithSolar Techtium (battery)

Kinrot Ventures & Cleantech Incubator• Kinrot, is a water technology incubator formed by

the Israeli Government’s Technological Incubators Program

• Kinrot has invested in around a dozen cleantech start-ups since its privatisation in 2007

• Incubator includes companies like Aqua Digital, which is developing a remote water metering solution

• 2010 - AquAgro Fund ($110 m.) acquired a stake in Kinrot Technology Ventures from Stern Partners Inc. of Canada

• AquAgro will reportedly be required to inject at least $3 million into Kinrot over the next three years.

Israeli Cleantech Investment Rising Until 2007

Some concern since then though• $200M was invested into Israeli cleantech startups in 2009

and 2010 (Cleantech Group)• Significant rounds went into companies such as SolarEdge,

EnStorage, HelioFocus, Metrolight, and CellEra. • In 2011 the total was thought to have fallen below $200M. • A handful of Israeli venture capital firms continue to be

focused on the area such as Terra Venture Partners and Israel Cleantech Ventures.

• In addition, diversified funds such as Pitango, (a new $350M fund), Giza Venture Capital, and Gemini Israel Fund invested in the sector in 2011

ICTBiotechMedtechCleantech

Israel’sJacobian Clusters

Shenzhen: BYD Electric Vehicle Production Chain

FOXCONN ECO-CITY

BYD-Daimler EV

Concluding Remarks

• Cleantech Clusters are Found Worldwide• Unlike Cluster theory, not specialised• Evolutionary, Integrative• Modular, Variety• Recombinant knowledge• Israel has strengths in Solar (compare Denmark) & Water

plus outliers• China is moving fast & in an integrated way• Israel would benefit from an integrated, learning strategy