Electric vehicles are the new black

The electric vehicle market is changing rapidly. Previously, they have tended to conjure images of boxy, plastic-looking automobiles reserved for eco-friendly motorists. But the electric vehicle industry is revamping its image and is now a fast-growing market of attractive cars, which the top automotive manufacturing names are tapping into.

Electric vehicles are not purely about saving money on fuel. Climate change is also a critical issue for many drivers, with July 2012 being the hottest month in US history, and hurricane Sandy another extreme weather condition. Electric vehicles are also essential for the UK consumer market, since 25% of the UK’s generating capacity of non-renewable energy sources will come to an end over the next 10 years.

Formula-E

Lord Paul Drayson, an entrepreneur and former Minister of Science, who spoke at this week’s EV Investor Club’s breakfast conference on cleantech technology, was emphatic that if electric vehicles are to have a future, they must be more glamorous and exciting to all motorists but crucially, the younger generation. This is why he has come up with the FIA Formula-E Championship. In May 2014, 100% electric cars will race on city circuits across the globe in “a street racing festival that leaves no trace.” The event is targeted at a younger market. The races, short but intense, will be streamed live on social media sites and involve what Lord Drayson described as ‘tag-racing’, where in each race the driver takes a pit stop, running 100m to the next car, so the first one can be recharged. In the final race there will be a ‘tweet to boost’ competition running alongside it, where each car will get a power boost in accordance to the size of its twitter support. These electric car races will be going to cities across the globe. First stop will be Rome where the cars will be showcased on a circuit around the Colosseum. With pictures of racing cars to rival McLaren’s, electric cars look set to become a powerful force in the market.

What about the price tag?

Further illustrations of the evolving electric vehicle market came from Iain Saunderson of Lightning Cars, cars which he described as ‘reassuringly expensive’ due to the high-tech technology involved. Although each car comes with an eye-watering €350,000 price tag, they were obviously attractive enough for an audience member to ask Saunderson whether there was an order book, after the presentation. Michael Boxwell’s Bluebird supercar was equally popular with the audience, and is even a contender for the 2013 UK land speed record, a further testimony to just how far technology for electric cars has come.

Beyond the UK market, thriving Australian based electronic scooters business VMoto is now dual listed on the AIM market in London and the ASX market in Australia, and now the number one selling brand in Europe. VMoto’s Michel Fulton explained how prices have come down so they are almost on a par with petrol scooters, with the added benefit that they run at one tenth of the cost.



Chargemaster
charging-points


But what will enable the electric vehicle industry to really take off is accessible charging for consumers. David Martell of Chargemaster described how his charging-point business has grown to be the biggest provider in Europe. Having recently sealed a transaction with Electromotive, Chargemaster now has a 48% share of the European market. Its charging-points are being installed in car parks, shopping centres, hotels, train stations and supermarkets such as Asda and Waitrose, ready for a market which Martell estimates is growing at a rate of 40% per annum.

With the cost of electric vehicles reducing (Renault now offering an electric car priced comparably to their popular Clio model), new marketing initiatives are ensuring that they will become increasingly desirable to a younger target market. As the market grows, electric vehicles will make a real difference to our environment, save consumers money on running costs, and offer another exciting global sporting competition.



Follow us on Twitter @AbchurchComms

How to IPO: advice for Cleantech companies

Event: London Stock Exchange Cleantech IPO Forum 2012

Date: Wednesday 20^th June

Location: London Stock Exchange, London, UK

On this picturesque British Summer morning, the Abchurch Cleantech team made the short venture across the City to
Paternoster Square and the London Stock Exchange for the 2^nd Annual Cleantech IPO Forum; a 'How to IPO' guide for cleantech companies considering floating on the Stock Exchange. Organised by Clean Energy Pipeline, we were pleased to be a sponsor alongside other IPO advisers Bird & Bird LLP, KPMG and Nomura Code Securities.

After arriving at the building and navigating through the rather intimidating revolving doors, we were greeted by the alluring aroma of coffee and breakfast pastries. As the clock struck 9, a great selection of Cleantech companies were ushered through to the auditorium where the conference commenced with a welcome note from Sam Rossiter, Product Manager of Capital Markets Events at the LSE. Kicking off the presentations was Axel Kalinowski, Business Development Manager of Primary Markets at the London Stock Exchange. He gave an insightful overview of the Main Market and AIM, the current IPO climate and the benefits of listing in London. Following Axel was Clean Energy Pipeline’s CEO, Douglas Lloyd. He spoke about the recent trends in the clean energy sector, highlighting that whilst 2012 may follow a similar dip in investment deals as in 2008/9, there is still a growing appetite for investing in the sector and it will continue to function as a major growth driver. The last speaker for session one was Ken Rumph, Director of Research at Nomura Code, who gave an eloquent presentation on what investors look for. Some of the key issues he raised included, first and foremost, that investors are looking to make money and that companies need to make their business case clear and concise; explaining why would people buy your product over competitors? A strategic approach would be to focus more on commercialisation and less on technology or green credentials - these can always be expanded later. Secondly, set out realistic milestones and plan ahead; make a checklist of things you are going to and have achieved. And finally, ensure you pick the right advisors; they need to understand the market, your underlying business model and have the chemistry to develop strong relationships. A Q&A session on public offerings concluded round one.

After a rejuvenating coffee and biscuit break, session two kicked off. First up was Connie Mixon from MyCelx giving a thorough case-study overview of the IPO process; from what to expect in life as a listed company on AIM. She similarly stressed the importance of your advisors, and in particular, how beneficial the Financial PR house was - comments which we greatly appreciated hearing! Bird & Bird LLP then navigated us through the legal issues of taking a company public. Matt Bonass and Vanessa Young addressed what to expect from the lawyers, the choices of market on which to launch and IPO preparation. Another Q&A session and coffee break and it was time for the final round. Gregory Hughes, director at KPMG, talked through the financial reporting pre and post-IPO. He highlighted the regulatory requirements necessary on the main market and AIM, the role of the reporting accountant, their work and deliverables. Key components included the construction of the Prospectus/Admission Document, the long form report (a core part of the financial and commercial due diligence for an IPO) and the ongoing requirements post IPO for both the company and accountant, e.g. financial reporting and interim management statements. Then it was Abchurch’s time to shine as our CEO, Julian Bosdet took to the stage. In a well-received presentation on how to IPO most succesfully, Julian informed the audience on how to communicate with investors and the media. He stressed the role of your financial PR advisor in helping to construct and roll out an effective, integrated communications strategy. The aim is to reach all target audiences through the press and analysts during an IPO – including all levels of investors, as well as employees, customers and industry partners.

The concluding presentation summarised a fund manager’s view with respect to investing in cleantech. Hyewon Kong from WHEB Asset Management explored the key themes and factors driving stock selection. There was a strong focus on sustainability; capturing new investment opportunities created by long term social, demographic and environmental challenges. They are not just looking for a product and how it brings benefit to the society and environment, but companies which provide real solutions to the challenges. These cleantech companies need to illustrate how they will maintain margins in an increasingly competitive landscape and have a focused strategy in terms of growth.

The resounding message of the conference on IPOs seemed to agree that while it is a volatile market at present and investment has seen a slight downturn as some fund managers concentrate on maintaining their current portfolio rather than investing in new companies, the cleantech theme remains a strong growth driver. In particular, investors like companies which are driven by regulation, as they may be somewhat insulated by the economic climate and public spending cuts. So, why IPO? Intial public offerings and life as a publically listed company offer enormous benefits; from increased access to capital to greater efficiency and corporate governance.

Overall, the conference was an excellent opportunity for companies to get a full grasp of how to IPO and what is involved in the IPO process, to identify the key players involved and what to expect when you decide to float on the Stock Exchange. For any ‘newbie’ into the industry, it acted as a constructive and worthwhile training morning, answering in great detail the popular "What is an IPO?" question. We heard the full IPO story directly from the industry experts and I would highly recommend attendance for future conferences. And, if your own personal development isn’t quite enough to tempt you, after the final closing remarks, you are served up with a delicious two course lunch and a chance to network and meet some of the experts.

Follow us on Twitter @AbchurchComms

Rosenblatt’s New Energy Awards 2011

On the 24th February, Abchurch hosted a table at the New Energy Awards 2011 where Acta, an Abchurch client was nominated for the ‘Company of the Year’ award.

These days, the awards are THE place to be seen for the great and the good of the cleantech world with well over 700 people attending. About four years ago, they were held in a hotel with approximately 300 people. The ceremony is now held in the Natural History Museum, with tables based around the iconic skeleton of the Diplodocus.

However, the highlight of the evening was a talk by Henry Worsley who led the Matrix Shackleton Centenary Expedition to the South Pole last year. The images of the Southern Polar cap and changing landscapes bought home the important role the cleantech sector has in preserving places such as this. Henry showed fascinating pictures of the Shackleton expedition 100 years ago which included taking a car as well as horses along for the ride! The horses did prove useful of course, but the car did not last very long in sub zero degrees.

Unfortunately Acta did not win but there is always next year when I am sure the awards would have grown even larger, reflecting the increasing size and spread of the cleantech sector. The winners also gave a hint as to which technologies to keep an eye on over the coming year and they ranged from wave power to smart meters. The latter is a sure reality for everyone because the Government aims to have every home in the UK equipped with one by 2020.

For more information on the winners, please click on this link:

http://www.growthbusiness.co.uk/businessxl-events/rosenblatt-new-energy-awards-2011/2011-shortlist-and-winners/

Ashleigh


Follow us on Twitter @AbchurchComms

Worried about sustainability? Get a Brazilian

Given the ongoing debate over the sustainability of biofuels, I was keen to hear for myself the story that is the Brazilian ethanol economy. Hence, Abchapess finds herself at the “Brazilian Cleantech Breakfast” on the 11th March in Rosenblatt’s offices mulling over how to both communicate and eat a bowl cereal while holding a cup of coffee, a handful of business cards as well as managing the usual female trappings of handbag and coat in a room the size of a two man tent containing a not inconsiderable number of overly familiar Brazilians and excited greenies. Despite the general melee, the crowd finally managed to squeeze itself into the limited chairs to the clutter of breaking plates and falling cutlery at which point the speakers had their opportunity to sell the class-leading benefits of the renewable energy market in Brazil.

For those who aren’t aware of the powerhouse that Brazil is in the alternative fuel world here are a few facts. The first car to ever run on ethanol was produced in Brazil in 1979 having been experimenting with the liquid since the 1930’s. This legacy has resulted in Brazil now consuming more ethanol than petrol. Moreover, around 45% of all energy produced in Brazil comes from renewable sources. Unsurprisingly, a number of entrepreneurs, small companies and multinational corporations have been jumping onto the Brazilian bandwagon over the last few years.

The Energy Revolution

Paolo Wrobel, of the Brazilian embassy, kicked off the proceedings by setting the scene for the energy revolution that is happening in Brazil. Huge revenues of oil and gas have been discovered off the coast of Brazil, in particular natural gas. This relatively clean and abundant resource allows for a number of opportunities for British companies to provide anything from services to machinery. On their biofuels strategy, the market has been boosted by the Environmental Protection Agency classifying ethanol from sugarcane, an area in which Brazil is world leader, as an “exceptional fuel”. This is due to the complete avoidance of “food vs fuel” and the fact that nothing is wasted. The leftover bagasse is used to produce electricity which powers the plant, even providing excess electricity for the grid. Most importantly sugarcane from ethanol is easily scalable and competes very favourably in financial terms with fossil fuels. A no-brainer it seems.

Up to the Challenge?

The final word at the Breakfast was left to Olivier Mace Head of Biofuel Strategy and Regulatory Affairs at BP. As a global fossil fuel giant, BP’s commitment to dedicating time and money to renewable energy has been impressive. They see two big challenges facing them: energy security (we will double our primary energy requirements by 2050) and climate change. Nothing new there. He discussed four criteria for biofuels which would allow them to compete with traditional fossil fuels in transport; cost, low carbon, sustainability and scalability. If biofuels could beat other types of fuels, including fossil fuels, in all four categories, it would be one of the only viable options for mass market use; the other of course being electric vehicles. His personal opinion (obviously) was that the most economically sensible option would be the combination of energy efficient internal combustion engines with the use of low carbon fuels. Working to that belief, BP Biofuels invested in Brazil’s sugarcane ethanol market in 2008 through acquiring 50% of an integrated facility, consisting of an ethanol production factory on a sugar cane estate. Brazil has attracted a number of other international investors similar to BP in the recent years, including Shell which has recently announced its intention to tap into a market which was once dominated by wealthy local families.

The conclusion that can be drawn from this may seem surprising. First generation biofuels may actually negate the need for second generation biofuels in much of the world. In fact many methods are well established, hence low-risk technologies, non-competitive with food crops and applicable on an industrial scale. We have to bear in mind however, that sadly the British climate and environment is not comparable to Brazil’s. We are in fact 35 times smaller and considerably wetter meaning the requirement to invest in second generation methods such as using municipal waste as a feedstock is crucial if we are to secure our own ongoing fuel supply.

Hannah

Photo courtesy of ozjimbob on Flickr, through a Creative Commons License

Follow us on Twitter @AbchurchComms

base 2010 (business and sustainable environment)

base 2010, the event where business meets sustainability, was held in the Excel centre on 16-17 March this year. The run up promotion to the event, which promised a plethora of prominent speakers, seemed too good to be true however the final turn out did not disappoint. Few conferences have managed to gather together such an influential list, with attendees from the government, NGO’s, advisory bodies, the FTSE 100 and leading national media. In fact, it often seemed, perhaps due to the size of the venue, that there were even more renowned figures present than delegates themselves.

Green-off

Given the event’s proximity to the national elections, the Q&A sessions and keynotes were dominated by MP’s and government advisers, not wanting to miss a key opportunity to plug their respective “red-green” and “blue-green” agendas and relevant party’s commitment to the cause. The resulting outcome of the successive speeches by Rt. Hon. Hilary Benn MP (Secretary of State for the Environment, Food and Rural Affairs) and Nick Herbert MP (Shadow Secretary) was strangely cohesive, which both parties pointing out the importance of sustainability on the corporate and social agenda after the financial turmoil of the last two years. Both speakers chose to focus much of their content on the issues of waste and landfill, highlighting the fact that waste is an opportunity, not a cost and stating their aims to make landfill sites obsolete. Benn pointed to the successes of the Landfill directive in encouraging new technologies which are highlighting the upside down way in which we talk about waste. Herbert couldn’t resist having a dig at the Labour Government’s lack of ambition when it comes to setting poignant targets, in particular for landfill tax, but while he agreed that business certainly needs a fiscal and regulatory strategy which would allow them to plan ahead, we must be careful to recognise that the overall regulatory burden on companies is too high.

There were a couple of surprises to this green-off, however, with Benn acknowledging the difficult environment for innovative high-risk technologies to attract investment and asking the conference “how can the government help with this problem?” Given that he carried on talking I can only assume that this was a rhetorical question, however, he demonstrated awareness of a key issue holding back the supposedly burgeoning cleantech world and perhaps even willingness for the government to consider a solution. Herbert, although less impressive and perhaps less rounded as a key political figure, also made some good points, stating that “natural resources are no more finite than the fiscal resources of the Treasury” and that the UK “makes a mistake of seeing the sustainability agenda as a burden.” Further to this he pointed out a solid sustainability strategy would actually help to uncover inefficiencies in our businesses as well as our economy as a whole, allowing continuing growth without long term commitment to the path of consumerism that we have trodden for so many years.

Carrot or Stick?
The key differences in messages really showed when discussing regulation. The Labour party remains committed to forcing sustainability on business through establishing a fiscal and regulatory regime which will punish avoiders. The Tory mentality was far more interested in working the carrot approach, relying on societal buy-in, which would essentially amount to a smarter form of procurement, encouraging community empowerment and private sector investment in new technologies, hence reducing the cost to the public sector and investing and encouraging through non-regulatory means. Micro-management or macro-management? Ensuring sustainability rather than encouraging sustainability? The vote is yours!

“We must work together”

Another highlight of the event was the Q&A session with Rt. Hon. Ed Miliband MP, Secretary of State for Energy and Climate Change. In his brief address before the grilling started, he attempted to salvage Copenhagen’s reputation, labelling the conference as a big step forward involving 80% of the worlds emissions producers, compared to Kyoto’s 45%. The importance of an attitudinal change was crucial to his agenda, encouraging people to talk about opportunities arising rather than dangers to be avoided and removing climate-change from the environmental box, instead making it about opportunity. As the world leader in the generation of offshore wind (since overtaking Denmark), the UK, Miliband promised, is in a great position to take advantage of this transition. “We must work together” he enthused about the public-private partnership. Kate Silverton, who appears to be enjoying a whole host of extra-curricular events, encouraged questions from the crowd which flew with the speed and kindness of machine gun fire. Topics covered included the lack of ambition with regards to the Feed-in Tariff, the skills shortage to embrace this new transition, the damage done by Climategate, Miliband’s thoughts on carbon offsetting (positive FYI), the controversial fairytale adverts on TV, party coalition on green issues (nuclear energy seemingly being the elephant) and what can be done to reconcile the demands of climate change with the short-termism requirements and attitude of the City. All credit due, Miliband handled the questions impressively, never breaking sweat or coming unstuck. Although, it has to be said he moved exceptionally quickly towards the exit at the conclusion.

The timetable of the event was so crammed with goodies, that planning was essential and sadly many, no doubt, highly informative lectures and discussions were impossible to attend. I did, however, attend one other top hit; Question Time with Peter Madden, chief executive of Forum for the Future, Philip Green, CEO of United Utilities, Richard Reid, the London Chairman of KPMG and Professor William Pope, representing England’s RDAs. This impressive panel commented on the relationship between sustainability and economic development, producing some interesting insights before answering questions on Britain’s broken society, institutional investment mindset and how the big companies were reconciling sustainable strategy with corporate strategy.

For me, the most interesting theme of the event was the challenge of aligning shareholder and stakeholder interests. It has been known for CEO’s to be sacked for not having their shareholder’s best interests in mind following the announcement of a new CSR strategy. This links in with the short-termism of the City and the never-failing requirement for rapid growth and immediate prosperity. Society has not kept up with the rapid growth of the last decades and adjustment is required. The financial markets have abruptly and painfully adjusted themselves, however social change is moving more slowly. Too slowly. Sustainability does not have to be about dying polar bears and palm trees in Scotland; it can be about opportunity and putting in place a foundation for a new and reliable future. If we do not move quickly we will miss out on the wave of opportunities rising. Those who lag behind do so at their own peril, whichever political party ends up in the driving seat.

Hannah

Follow us on Twitter @AbchurchComms

Abchurch leads the environmental charge!

The Abchaps were delighted that our first sector event in our new offices, on the theme of the environmental economy, was a roaring success.

Aided by English bubbles and locally-sourced canapés, the evening saw a sprinkle of invaluable insights, a dose of breaking news, the birth of strategic partnerships and a large measure of general joviality.

Abchurch’s 85 guests, from cleantech companies, media, regulatory, NGO and city advisory backgrounds, arrived from 6pm and immediately began making the most of the high-level networking opportunities available. After supplying the crowd with top-quality British food and drink, Julian Bosdet, the CEO of Abchurch Communications, opened the event with a welcoming message and introduced the high profile speakers to the gathering.

Jock Whittlesey, Environment Counselor to the U.S. Embassy, kicked off the session with his thought-provoking comments on the role of the US in promoting the clean technology cause and the strength and continuing importance of the “special relationship”.

The baton was picked up by Stephen Hammond, the Shadow Transport Minister and Wimbledon MP, who spoke about the Conservative belief in the crucial importance of public transport in helping the UK to lead the environmental revolution. He also highlighted Tory ambitions to facilitate the progression of technology in the UK.

Following on from these influential figures, Claire Dorrian of the London Stock Exchange aptly pointed out that she was in fact returning to her old office! Her invaluable insights both reflected on the impact of the Obama regime and looked forward to what the future may hold in the UK, including the importance of fiscal incentives for companies to reduce their environmental impact.

Tamsin Omond, of Climate Rush, completed the speeches with an impassioned plea for everyone to work together towards finding solutions.After requesting everyone’s business cards, she broke the news to the gathering that she would be running as a Member of Parliament this year. You heard it here first! Tamsin has subsequently revealed the mystery constituency as Hampstead & Kilburn, which she will transform into an “eco-haven”!

Abchurch continues to promote the clean technology revolution by bringing people and business together. The green team at Abchurch would like to thank all who attended and hope that you all gained something from the evening, even if it was a growing appreciation for fine English wines!

Hannah

Follow us on Twitter @AbchurchComms

The Low Carbon Economy

Abchurch has one of the UK’s leading environmental practices and views the carbon market primarily in terms of its effect on investor confidence.

The world is on the edge of what US and EU Political advisor Jeremy Rifkin has dubbed ‘The Third Industrial Revolution’. This is a world in which we move away from traditional fossil fuel and uranium-based energies into a non-polluting, sustainable future for the human race.

In this new age investors are concerned not just with the impact that traditional commodities, such as oil, grain and minerals, have on a company’s profitability but also with factors such as the cost of carbon, sulphur dioxide, water and even holes in the ground. Indeed, Britain is widely expected to be routinely mining its landfill sites within the next decade to recover many of these valuable commodities whilst minimizing the energy usage and harmful emissions associated with extracting them from primary sources.

The investment agenda is no longer one solely of balance sheets and cashflow statements, however. Climate change concerns have fuelled the rise of Corporate & Social Responsibility in high streets and boardrooms across the world. This Triple Bottom Line approach to company reporting (financial, social and environmental) demands simple shorthands and metrics and there is none more convenient than ‘carbon equivalent.’ Hence the “low carbon economy.”

Research carried out in late 2008 amongst UK based fund managers for British Energy found that:
· 80% think that a carbon reduction strategy can have a positive impact on investor perceptions
· 2 in 5 believe that commitment to carbon reduction can have a positive impact on share price
· 25% see a growing media and public demand for carbon reduction commitment at the corporate level

The Carbon Trust’s March 2009 report ‘Global Carbon Mechanisms: Emerging lessons and implications’ reveals:
· The Clean Development Mechanism, specifically, has triggered over 4000 emission-reducing projects in developing countries
· It is likely to reduce carbon emissions by 2 billion tonnes by 2012

Climate Change Capital, just one of thousands of specialist environmental funds globally, has:
· over US $1.5 billion under management as of January 2009
· estimated that Clean energy (just one subset of the climate change market) was worth $148 billion in 2007
· predicted that current climate change needs require a future investment in clean energy of up to $45 trillion

No revolution is without its hazards, however. Indeed, many would argue that the focus on ‘low carbon’ has become an unhealthy obsession, with the same whiff of snake oil, get rich quick and too good to be truisms witnessed in the energy and silicon rushes of the first and second industrial revolutions. Hence the concept of “greenwash.”

One of Abchurch’s most important roles is to steer companies through this new communications landscape; taking carbon credit where it is due and avoiding tempting, but often meaningless hype. This experienced counsel, based on our team’s genuine earth science credentials, is just as true whether working with our intrinsically environmental clients, or with our broader customer base of companies who are simply playing their responsible part is a newly carbon-conscious world.

Justin

Image courtesy of Olof S on Flickr, through a Creative Commons License.

Internationalising Environmental Solutions Conference

Abchurch’s Green Team was in full force at the Internationalising Environmental Solutions conference last week held at the Imperial War Museum at Duxford, near Cambridge. The conference was jointly organised by EnviroTech (its director Hugh Parnell is a long-time friend of Abchurch) and The East of England International, with the support of the UK Department of Trade and Innovation. It aims to promote environmental technologies and increase the inflow of international investment and talent in the region. Remarkably the this is likely to be the only region to reach the UK government’s target of 10% electricity from renewables by 2010.

At the conference we saw an impressive number of high-calibre organisations, university centres, and investment incentives set up to promote environmental innovation and business development. Ending the conference on a high note, Abchurch was also mentioned in Hugh’s presentation as a preferred provider of PR services.

Justino & The Tsangaroo