Kris hosting the meeting

Wolfe Law Building auditorium

SunTrac Solar
Presented by: Adam Rentschler, CEO

SunTrac Solar manufactures the world’s most efficient flat-plate solar thermal panels in Golden, CO. A major innovation, they have shrunk utility-scale parabolic trough technology and placed it into a traditional flat-plate collector box. They address a niche segment for  solar thermal products: high temperature hot water for commercial and industrial applications. In their top three states, they deliver a return on investment to building owners and businesses measured in months, not years. The CO2 payback is roughly six months on a system with a 30 year lifetime.

Solar thermal technology works by using the sun to heat either water or a solar fluid (e.g. glycol-based) in black copper tubes which are then channeled to a home’s water heater where the heat is transfered. A pump/controller unit is used to circulate the cooler water from the heat exchanger system to the collector. Using photos sensors, they system tracks the sun and adjust the mirrors for maximum capture. The tracks follow the sun from east to west every day. The commercial version uses 6 parabolic troughs per collector box.

A solar thermal system supplements a gas or electric based heating system at an average annual rate between 60-80%.  The primary competitors for SunTrac product technology are evacuated tubes and flat panel solar collectors. For high-temperature water the SunTrac provided diagram illustrates that the cost advantage of a concentrator system with the lowest dollar cost/BTU of energy created. Another comparative factor is how water-heating technology perform under the desired end-temperature range. Between 36F and 250F, operational efficiencies decline for all three solutions (with SunTrac at 60%@90F and 35%@250F) but as illustrated the  SunTrac efficiency rating tops it’s competitors.

The competitive landscape shows both propane/nat gas./electricity based heating are good markets to enter for both small business and residential for SunTrac. Cost of legacy fuel costs and state-level incentives (Investment Tax Credit) determine the attractiveness of the market for solar thermal. In locations like Colorado, natural gas is abundant and cheap making solar-thermal less attractive.

Posit Partners – What is Your Story? (The Business Value of Strategic Messaging)
Presented by: Carlton Bonilla, Business Development

In support of The Colorado Green Tech Meetup’s mission to fast track early stage Green Techcompanies we are kicking off a new series that looks at the non-technology aspects of a successful cleantech venture. This week we heard from Carlton Bonilla, a partner at a cleantech-focused marketing consulting firm, who will talked about why and how a startup should think about its position in the marketplace and the value of a strategic brand message for technology-driven startups.

One of the conundrums of technology companies is when to build their company story, before or after an initial round of funding. The value of creating this story is significant since a story is the precursor to funding. Posit Partners took on this journey of the importance of a strategy (versus tactics) and substance (versus just style).

As a cleantech company, the communicating your  product’s often complex technology and how the company is positioned in the market is very relevant. Investors need to understand your strategy to grow and rate your ability to communicate to your market (beyond the VC pitch) . A metaphor of an iceberg was used showing that tactics are the exposed elements and underlying (underwater) portion of the iceberg is the strategy. So to sell a story, the company strategy should be fundamentally developed to a level where investor/customer/partners can understand it (e.g. how is the company going to make money?  etc.)

A formula to building a companies brand was introduced. Brand equals identity and position. A companies position is where the substance comes in. A Position (substance) is created through:

1. Tagline
2. Positioning Strategy
3. Competitive brand Audit
4. Key Messaging
5. Pitch Presentation
6. Thought Leadership

The identity (style) of your company is based on the style of how this information is submitted to your audience:

1. Logo
2. Look and Feel
3. Web site
4. Brochure
5. Trade show booth
6. Company schwag

For companies a key takeaway from the presentation was about communication of brand. Strategic storytelling needs to communicate a rational argument with an emotional component that makes your company memorable. Every company needs a way to bridge the chasm (from an R&D startup to an operational company) using a technology translator like Posit. Communicating their value, Posit did a good job of communicating a strategy and how the facilitate/help with a cleantech technology translation process. They left us with the following key points and quote from Sun Tzu:

Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.

1. Build your strategy first
2. Your substance is more important then style
3. Start your branding journey before your reach our for funding
4. The story of your companies value & intentions is important
5. Look to getting a competent branding company

Greenspark Fuel Systems – On-site Waste Vegetable Oil Fuel Production Systems
Presented by: Mike Lakritz, Founder

Greenspark Fuel System produces the FuelBox fueling system, a self contained, weatherproof vegetable oil fuel production and pumping station. The FuelBox system eliminates the traditional collection/distribution model for producing biofuels from waste vegetable oil. It helps restaurants, hotels, resorts, hospitals, universities and any business using vegetable oil to efficiently and easily produce waste vegetable oil fuel for their own use on-site.

The FuelBox enables vertical integration so the entity becomes the feedstock supplier, fuel producer and end user. Greenspark Fuel Systems is working with Colorado ski resorts, local businesses, the federal government and state and local municipalities and Universities to implement FuelBox systems and empower these groups to increase profits and reduce fuel costs while decreasing their environmental impact.

FuelBox is the flagship product for Greenspark which was formed as a company in 2008. Their market entry is to solve one of the key problems in the Waste Vegetable Oil (WVO) industry, make it clean, convenient to dispose of waste and turn it into a profit center versus a cost center. In most cases waste vegetable oil today is not processed on-site and can be utilized for range of applications ranging from pet food fat supplement to dust inhibitor to biofuel feedstock.  Fuel box provides a vertically integrated solution that eliminates the mess and the need for distribution and provides a fuel that can be used directly for fuel.

The technology solution uses a progressive filtering of vegetable  through centrifuge technology. The output fuel is not bio-diesel but an alternative high-quality fuel called VO-100. The filtering process brings oil within the tolerance of a diesel-filter range of 1/10 micron. The viscosity of this fuel requires heat to change the viscosity for the appropriate operational temperature and can not  be used in regular diesel tanks. VO fuel can also be used in residential oil heaters and also to generate electricity through the Vegawatt system that converts oil to electricity with little green house effect (670g of CO2 per Kw of electricity).

An ideal target customer is one that has an waste vegetable oil feedstock and a vehicle fleet. Restaurants, hotels, universities, ski resorts have delivery fleets and fit this criteria. Currently Greenspark has a pilot project ongoing with Copper Mountain resort. This pilot has produced between 8000-10000 gallons of fuel per season. The environmental saving is significant compared to a normal fleet. The fuel removes all SO2, 10-30% of NO2 and 50-90% of all diesel particulates. Alternative fuel vehicle (AFV) conversions and fuel tax credits ($1.25/gal produced and $0.50/gal ) provide a significant savings to the operator of this system along with the cost saving offset of not purchasing fuel.

GreenSpark is currently proceeding with a number of strategic partnerships. With an existing proven product, the next steps are focused on marketing exposure, partnerships and sales growth in targeted markets.

Following the presentation a number of thoughtful questions were raised as captured here. GreenSpark can aid in vehicle conversion (to add a new tank for vegetable oil). The fuel production unit has a minor waste stream, organic sludge in low quantities that will need to disposed of. Vegetable oil based fuel will achieve the same mile per gallon rating as diesel. The fuel will reduce wear and tear through its high-viscosity (200x when heated compared to diesel) and highly filtered nature that will reduce fuel filter replacement. As an alternative WVO reduces emissions compared with diesel which requires sulphur to achieve its viscosity rating. The unit also requires a heating system (e.g. 1Kw @20A) they can cost around $15-20/month.