The Commercialisation Path
All new technologies have to go through a commercialisation path.
The commercialisation risks can be minimised and the rewards maximised as long as the technical and commercial work is done in parallel, preferably vertically integrated to minimise cost and IPR “leakage”.
In order to not let the technology development and commercialisation process be delayed or fail (unless it is decided along the way that it should for commercial reasons) a specific private / public funding package and action plan is required generically as follows:
Research & Development funding to get the specific Zero Carbon Technology application / product to a proof of concept or field trialled commercial model, capable of being verified or certified. Private equity funds / resources need to be matched where possible with public funding to reduce the commercial risk.
Purpose built or suitable buildings are needed to enable the Zero Carbon product to start to be produced with minimal delay and environmental impact as soon as field trails are completed.
Custom equipped (plant and machinery) production line to demonstrate that the Zero Carbon products can be produced at the claimed costs / efficiency. Where possible public grant funding will be required to reduce the initial investment cost.
Sufficient financial reserves to be able to process through these stages in an efficient, but not rushed, way with no stoppages.
Once these stages have been passed then additional funding can be raised from traditional debt or equity markets at a reasonable cost to the original developer (s) as the company will have firm orders, a proven supply process and a cash flow.
The production may be moved off site to specific industrial areas to make way for other technologies to be pulled and pushed along the Zero Carbon Technology commercialisation path.
Appropriate staged exit points are planned and executed to enable the initial developers who took the risk to be able to gain a reward through either private or public sales of equity or other rights in the business.
An optimum mix of public and private equity and debt funding is essential during this phase and all parties that share in this risk should share in the socio economic benefits and financial rewards.
Each of the Zero Carbon technology businesses is a stand alone business.