1. Alberta Clean-Tech Industry Conference, Red-Deer Tom Rand, P.Eng. Ph.D. Cleantech Practice Lead, MaRS Discovery District Saturday, Sept 18, 2010

2. Kicking our Habit … It’s possible! Will be very difficult – scale, speed, capital. It’s necessary & urgent. www.kickthefossilfuelhabit. com 11/9/102 It’s possible.

3. Why Necessary & Urgent? www.kickthefossilfuelhabit. com 11/9/103 If emissions stay steady, we’ll blow our carbon budget for (a 75% chance of) exceeding 2 degrees of warming by 2021. Peak Oil? Climate Change – Limiting Warming to 2 degrees Peak Oil – Straw-man over long term

4. Back in 1989 … “ climate change … could alter the way we live in the most fundamental way … It is life itself that we battle to preserve.“ Margaret Thatcher, to the UN General Assembly. www.kickthefossilfuelhabit. com 11/9/104

5. Smart Policy www.kickthefossilfuelhabit. com 11/9/105 Nations will be net sellers or buyers of Cleantech Risk = probability * consequences Long-term, high-carbon growth is self-defeating

6. Scale of Opportunity www.kickthefossilfuelhabit. com 11/9/106 “Trillion Dollar Question”: What do you get for a trillion dollars?

7. Pace of Growth www.kickthefossilfuelhabit. com 11/9/107 1. Linear, Free-Market Driven2. Non-Linear, Policy/Event-Driven 1. Commodity-based, open-ended supply chains. 2. Scalable, simple manufacturing processes. 3. Low technical risk; financeable. 4. Leverages existing infrastructure. Successful companies:

8. Efficiency: GDP / energy www.kickthefossilfuelhabit. com 11/9/108 Energy Per $ Efficiency ( $ Per Energy ) Increasing Wealth Japan, Germany Canada * * China India Developed Developing Efficiency: GDP / carbon * US

9. Efficiency: GDP / carbon www.kickthefossilfuelhabit. com 11/9/109 Planet Traveler – North America’s Lowest-Carbon Hotel 75% reduction in C02, With positive cash flow.

10. Bio-fuels or Electrons ? www.kickthefossilfuelhabit. com 11/9/1010 Enough salt-water irrigation and processing capacity to: Replace half of the world’s oil supply. “There’s just not enough fresh water and arable land to produce enough biofuels to replace the petroleum” Dennis Bushnell, chief scientist, NASA Langley Research

11. Clean Sources: Solar www.kickthefossilfuelhabit. com 11/9/1011

12. Clean Sources: Wind www.kickthefossilfuelhabit. com 11/9/1012

13. Clean Sources: Geothermal www.kickthefossilfuelhabit. com 11/9/1013

14. Clean Sources: Hydro www.kickthefossilfuelhabit. com 11/9/1014

15. Clean Sources: Ocean www.kickthefossilfuelhabit. com 11/9/1015

16. Energy Internet: Networks www.kickthefossilfuelhabit. com 11/9/1016 Continental : Grid-balancing – Reliability. Regional : Distributed - Generate/store power anywhere. Local : Demand Response – Smooth demand. Storage : Distributed and grid-scale.

17. Energy Internet: Storage www.kickthefossilfuelhabit. com 11/9/1017 Time Power Release this Energy Store this energy

18. Hurdles to Required Scale 1. Existing (relatively cheap) Infrastructure 1. Existing Preconceptions 1. Deployment of Capital; slow, risk-averse www.kickthefossilfuelhabit. com 11/9/1018

19. Cleantech: Creating Markets www.kickthefossilfuelhabit. com 11/9/1019 ScienceInventedPolicy

20. Policy Options: Canada www.kickthefossilfuelhabit. com 11/9/1020 1. Price carbon: price stable, no target 2. Cap and Trade/Dividend: target specific, price uncertainty 3. FIT – technology specific – tech neutral? 5. Regulation 4. Green Bonds - Generate low-cost capital - Motivate pension funds, insurance assets

21. Green Bonds: Shifting Financial Resources Pension Funds General Public Long-term Cleantech Infrastructure Government backing Savings accounts, money markets Gov. Bonds, Other long-term investments High Risk High Rates www.kickthefossilfuelhabit. com 11/9/1021

22. Alberta Clean-Tech Industry Conference, Red-Deer Tom Rand, P.Eng. Ph.D. Cleantech Practice Lead, MaRS Discovery District Saturday, Sept 18, 2010

23. Green Bonds – Low Cost Debt Venture Capital Early-Stage Technology Manufacturing B-Rounds, etc. Innovation/Manufacturing Cycle Project Finance / Demand Low Cost $ $ $ $ www.kickthefossilfuelhabit. com 11/9/1023

24. Green Bonds – The Details Government-backed Bond - Privately-run fund Issue just above regular US bond rate Attract pension fund money (> $ 100 Trillion) Project finance at issue rate + 1% (cover fees) Only cost to government is defaulted loans Mitigate with liens, strong diligence - and Highly-motivated private sector fund manager Single success metric: $ / tonne CO2 Cost: ~ $1 / tonne CO2 (@ 10% default rate) Technology neutral – gov does not pick winners! See www.greenbonds.ca for full detailswww.greenbonds.ca www.kickthefossilfuelhabit. com 11/9/1024