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Planet-Profit Report, reporting on sustainable development in the Western United States.

Clean energy financing: time to get creative

Chevron is looking for good ideas

The entrepreneurial path has two critical financing points that can make or crush a clever idea.

The first point comes between the laboratory and the launch of a company. The prospective entrepreneur holds only the idea and maybe a prototype, lacking everything from industry advisors and guidance to development facilities and basic business infrastructure. Good ideas languish in research labs around the globe due to tight capital markets.

Should a developer have been able to bootstrap an idea, or been fortunate enough to obtain funding to launch a startup, the second significant finance point comes at what is graphically labeled “The Valley of Death.” This is the period of time between company launch and achieving commercial success.  Both of these financing points are considered extremely high risk. So high, in fact, that in today’s fiscally constrained environment, obtaining funding at either of these points is challenging.

What is the solution?

Partnering with industry leaders is a creative way for prospective entrepreneurs to obtain the resources needed whether they are seeking to come out of the lab or are further along and ready to pursue commercialization.

The sustainable energy industry is particular volatile, a classic sign of significant opportunities hindered by an exceptionally wide chasm to commercialization. The capital markets are not inclined to take on this much investment risk. With the recent bankruptcy of Solyndra, government loan guarantees will become harder to obtain. Entrepreneurs in this market must look to the industry leaders for support.

But who are these leaders? The oil and gas industry are the leading investors in alternative and renewable energy solutions. (See previous article on this topic here.)

Call for business plans

Chevron Energy Solutions has a call out to entrepreneurs seeking business support. The firm will bring pre-screened entrepreneurs to San Francisco on Nov. 10 to present their business plans and meet one-on-one with members of the Chevron Energy Solutions strategic alliance team. The deadline to apply is Oct.11. To learn more on how to participate in this event, click here.

“Chevron has invested over $200 million in emerging technology companies since 2000," Chevron spokesman Ken Pimental says. "We are constantly seeking innovation in existing energy technologies as well as emerging solutions to address the world’s energy needs.”

The firm is seeking clever ideas across the entire business spectrum from still in the laboratory to ready for commercialization. Chevron Energy Solutions offer a wide breadth of support for selected companies including:

• assisting in defining market needs and requirements,
• research and development  support,
• strategic partner and
• financing.

Chevron Energy Solutions has over 90 percent of its business located in the U.S. This is a good opportunity for U.S.-based entrepreneurs to meet with an energy thought leader that is willing to assist and guide the start up.

The program is in partnership with the Environmental Business Cluster, a clean tech incubator that was ranked the leading clean energy incubator in the world based on the number of technologies that it has successfully brought to market.

You have everything to win and nothing to lose to apply, so go for it.