ASIA-PACIFIC Mid-Year Activities Report - ENGIE Innovation
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WHY ARE WE HERE? The world is not moving fast enough In resolving climate change 420 GtCO2 = 11 years 37 GtCO2/y 2
WHY ARE WE HERE? The world is ready for CLEANTECH 2.0 and this time, its about tech-enabled business model innovation TECH-ENABLED CLEAN REVOLUTION CLEANTECH BUBBLE QUIET DEEPTECH CLEANTECH MATURING & REVOLUTION GLOBAL ACCEPTANCE 4 1 3 2 2005 2010 2015 2019 3
VENTURE SCALING Unlocking more value through corporate-startup partnerships VENTURE VENTURE BUILDING CAPITAL Enabling the best talent to create Fostering meaningful growth impactful companies with strategic capital 4
PORTFOLIO Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Project Description Status VENTURE BUILDING EVDots EV-as-a-Service for B2B Approved & sales ongoing Validation Company setup & grow Projoule Digital energy efficiency for F&B industry Approved & recruiting CEO Validation Company setup & grow Agrisolar Solar irrigation for B2B agriculture sector Board approval in preparation Validation Company setup & grow GioSenz Automated solar B2B sales platform Venture validation in progress Validation PowerHYDE Solar-financed prefab community housing Venture validation in progress Validation Renew.io PPA advisory & aggregation market place Venture validation in progress Validation Undefine Project definition in progress Validation CopperTree Analytics-based building energy efficiency Pilot ongoing in Changi Airport AVA Asia Predictive maintenance on large solar Pilot ongoing in Chile (50MW PV) Pilot Partnership & scale-up VENTURE SCALING Smart Building Integration of smart building tech Pilot ongoing at ENGIE Factory Pilot Partnership & scale-up Tuten Smart workforce management platform Pilot ongoing in Changi Hospital Pilot [24]7.ai Churn reduction in retail business Pilot design ongoing @Simply Pilot Electrify Digital retail offer in SG with P2P solar Pilot design ongoing @Senoko Pilot Predictive O&M Industrial predictive maintenance in FM Startup search ongoing Pilot Renewable Financing Financing platform for C&I solar projects Startup search ongoing Pilot Undefined Project definition in progress Pilot Today 8
VENTURE BUILDING In Venture BUILDING, we search for exceptional individuals who are passioned about solving some of our time’s most difficult problems. We pair them as co-founders and hire them for 3 months. During this time they work rigorously through a process of venture validation which involves countless hours of customer interviews, value proposition design and business model iteration. This culminates in a detailed business plan and investment pitch and leads to the setup of an entirely new company, empowered to grow independently in synergy with our existing ENGIE businesses. 9
BERT DEPREST IDEAS TO ORIGINATE MORE B2B SOLAR Bert is Business Development Manager for B2B Solar in Southeast Asia. Like his colleagues in Australia, his team is having a hard time to get B2B deals closed. Bert initiated a new way to source for leads and we are worked with him and his team to augment our capabilities through AI BY INDUSTRIALIZING AND AUTOMATING THE ORIGINATION PART so that he and his team can focus on dealing with customers that are likely to go ahead versus those who will not. “IT IS HARD TO FIND THE RIGHT CUSTOMERS AND EVEN HARDER TO MAKE COMPETITIVE OFFERS”
Project type: VENTURE BUILDING New ENGIE venture ENGIE investment: No commitment yet, targeted by Oct-19 Industrializing our ability to originate B2B sales for rooftop solar and corporate PPA’s Starting date: Mar 2020 through data Customer segments: GioSenz automates the lead origination process for B2B solar by B2B (any with large roof) combining geospatial analysis of satellite imagery for rooftop identification & measurement, address data to nametag each rooftop and web crawling to classify per building type. Offers are made and Geography: Start in SG, grow to AUS, sent automatically to contacts identified via Linkedin & other sources PH & later APAC Progress targets Business Model Key Partners Key Activities Value Prop Relationships Segments Validate the opportunity Software Automated lead Rooftop Solar Data providers 2019: Setup the team development generation & PV developers “GioSenz integrates data from various offer submission (initially ENGIE Start software development Satellite image Generating & exclusive) providers sending offers sources using machine learning in order Live market Google (maps & intelligence Other B2B sales to provide actionable insights for web crawling) Key Resources across industries Channels organizations identifying B2B sales opportunities in the (FM services, Finalize initial development car fleets, solar, industrial services and other B2B Proprietary Live offer 2020: Commercialize product Introduction agents databases preparation construction, ..) services industry.” Close first 20MW of deals at customer Machine learning models We are preparing +100 offers for Singapore to validate that we can spot Costs Revenues Open second country the right customers, get in touch with 2021: Grow team & improve tech Software Partner fees BD / agent cost Pay-per-Lead Pay-per-Intel the right person & bring leads to closure. Close another 100MW development Marketing cost Lead Intelligence 11 subscription subscription Sarayu Parimal – CEO GioSenz
Project type: VENTURE BUILDING New ENGIE venture ENGIE investment: No commitment yet, targeted by Oct-19 An online platform for corporate renewable PPA’s that advises, aggregates, and Starting date: Mar 2020 originates PPA’s for B2B customers Customer segments: Procurement of renewable energy PPA’s is a confusing, opaque Midsized C&I businesses and expensive process thereby excluding a large portion of B2B customers. Renew.io solves this problem by providing a platform for understanding their needs, aggregating buying groups and Geography: Start AUS and SG, later PH procuring the best deal at a lower cost than traditional methods. and JP Progress targets Business Model Key Partners Key Activities Value Prop Relationships Segments Validate the opportunity Software Understand Ongoing reports Trade groups & Large companies 2019: Setup the team other sources development energy needs with multiple “Procuring renewable energy shouldn’t of customers and options Start software development Sales sites / countries be so difficult. There is an entire market Auto tender PPA bidders Contracting the best deal Large single site to be unlocked by making this process (developers) companies Key Resources Channels simple and accessible to every business Finalize initial development Influencers Standard PPA SME’s owner.” Software 2020: Commercialize product (though leaders, consultants, ..) Demand Trade groups Close first 50MW of deals Strong sales aggregation Small to provide team BD sales companies We have gathered information from over credibility Option to resell Online (aggregated) 20 global PPA buying group members sales team standard PPA and small C&I clients to confirm Costs Revenues Open second country desirability & the benefits of demand 2021: Grow team & improve tech Software Partner fees BD / agent cost $/MWh margin aggregation. Close another 200MW development Marketing cost on all PPA’s 12 Colin Allison – Rainmaking Director
Project type: VENTURE BUILDING New ENGIE venture ENGIE investment: Seed round invested Unlocking energy efficiency & data driven Starting date: May 2019 maintenance in multi-unit F&B customers Customer segments: Projoule addresses energy efficiency in the food & beverage B2B (food & beverage sector by optimizing refrigerators, decentralized HVAC and chains with outlets: kitchen equipment in a highly automated and CAPEX-light restaurants & stores) approach. Its AIoT (artificial intelligence of things) platform with a subscription-economy pricing model allow it to scale rapidly Geography: across outlets and geographies. Start in SG, grow to AU, TH & later APAC Progress targets Business Model Key Partners Key Activities Value Prop Relationships Segments Convert pilots to contracts Software 3Y contract 2019: Hire team IOT hardware development Food chains (McDo, KFC, ..) “Projoule provides a simple customer provider Standardised & Start AIoT development Platform with Sales simple energy advise solution for better energy usage & efficiency Industrial Installation product kitchens maintenance of decentralized assets. partners Key Resources Channels With zero upfront cost and a pay-from- Grow to 450 outlets Sales channel Simplified Convenient performance scheme, our customers 2020: Enter second market (AU) partners Software management of stores (7/11, …) Founder love the predictable & risk-free savings.” portfolio of Grow team outlets photo We have pilots with Harry’s & GyG and contract talksd for up to 30 outlets. Also Costs Revenues Grow to 1,000 outlets in discussion for over 150 outlets with 2021: Start cross-selling services IOT hardware Customer Software Cross-selling of Energy-savings BreadTalk, Toast Box & Din Tai Fung. Add 2 new markets systems & acquisition & other services subscription development installation servicing & energy revenue 13 Suan Suk Lee – VP ENGIE Factory
Project type: VENTURE BUILDING New ENGIE venture ENGIE investment: Seed round invested Accelerating electric mobility by offering Starting date: EV-as-a-Service for B2B fleet customers September 2019 EVDOTS seeks to facilitate the transition of traditional vehicle Customer segments: fleets to 100% electric by offering an integrated service with B2B (fleet & logistics) vehicle leasing, fleet insurance & maintenance, on-site charging and off-site roaming charging within one Geography: subscription fee. EVDOTS provides intelligence on fleet usage Start in SG, grow to AUS, for operators to help achieving OPEX reductions & later rest of APAC Progress targets Business Model Key Partners Key Activities Value Prop Relationships Segments Setup the team Leasing BD / Sales Solution for B2B fleet 2019: Develop partnerships companies EV-as-a-Service operators “The EV transition in APAC is imminant Software dev Find first customer (logistics, taxi’s, Charger Achieve buses, vans, …) and we see demand from large B2B manufacturers Partner mgt sustainability targets operators left unmet because of the lack B2B corporate Charger Key Resources Channels fleets of a comprehensive & integrated offer. manufacturers Close deal with 20 vehicles Achieving cost At EVDots we aim to resolve this.” benefits of 2020: Develop software platform Other charging Software operating EV vs BD / Sales B2C users in AUS network and SG (where Enter new country operators Private chargers petrol fleet Partners we have B2C We have strong interest from key Easy transition Online presence) logistics players in Singapore (DHL, Car brands to EV mobility Kohne & Nagel & others) as well as SG Costs Revenues Close deal with 500 vehicles government (EDB) and leasing partners Margin of 2021: Provide intelligence services BD / sales team Software Charger CAPEX Capital recovery vehicle leasing (Comfort Delgro and Goldbell) of chargers Enter new country under contract under contract Margin on 14 Partner sales fee charge roaming Paul Welsford – Director EVDots
Project type: VENTURE BUILDING New ENGIE venture ENGIE investment: No commitment yet, targeted by Sep-19 Providing solar irrigation as a service to over Starting date: 500 million farmers as a customer solution Q4 2019 for the micro-B2B sector in rural areas Customer segments: An integrated solar pump and irrigation kit for smallholder farmers in B2B (agriculture), either South-East Asia who want to increase their income, lower their fuel in rural areas as access- dependency and increase their crop yields. Pay-as-you-Go and rental to-energy or non-rural for business model allows to match affordability for customers with value commercial agriculture creation for the business. Geography: Rural: MY, ID, PH Progress targets Business Model Non-rural: AUS, JP Key Partners Key Activities Value Prop Relationships Segments Venture validation 500m Community 2019: Setup the Team NGOs Distribution Clean, reliable Activation smallholder farmers ”There are more than 500m farmers and affordable Pilot implementation irrigation producing 80% of our food. All of these MFIs solution Customer Care need affordable irrigation. Solar-driven Key Resources Channels pumps can help achieving that in an Launch first country Drought environmental & economical sustainable resilience 2020: Signing 1000 customers Distribution Direct way.” Enter second market No CAPEX 3rd Party During two weeks in Myanmar, we have spoken to over 150 farmers and have Costs Revenues Grow team & improve tech received orders for over 45 pumps on 2021: Enter new country Leasing Rent the spot. COGS Distribution After-Sales Signing 10,000 customers 15 3rd Party Cash Marc Maleika – Rainmaking Manager
Project type: VENTURE BUILDING New ENGIE venture ENGIE investment: No commitment yet, targeted by Sep-19 A new solar PPA offer that provides corporate off-takers with renewable credentials (REC or Starting date: Dec 2019 over-the-grid) with added CSR impact by solving a global social housing problem Customer segments: B2B (MNC’s, RE100 and powerHYDE builds solar towns in units of 75 prefab houses with other similar companies solar roof (totalling 2MW solar PV per unit) in rural areas with grid with sustainability & CSR connectivity. Corporate off-takers get renewable energy with extra targets) CSR impact and investors make +10% project IRR returns. Geography: Start in PH, later IN Progress targets Business Model & other countries Key Partners Key Activities Value Prop Relationships Segments Finalize costing validation Infrastructure House tech 2019: Complete five houses pilots solar investors innovation Offer solar PPA at competitive Corporates & MNC with “powerHYDE’s vision is to build self- Close first 2MW PPA project (ENGIE & others) tariff to MNC sustainability PPA & project and / or CSR financing homes that produce renewable At later stage development Offer affordable targets financing and quality energy while solving the homelessness institutions Key Resources homes to rural Channels Multilateral crisis” Deliver first 2MW project areas to solve agencies with Gov. housing homelessness 2020: Build-up team programs House tech IP Offer attractive MNC C-suite relationships housing targets First PowerHYDE prototypes are funded Close second 10MW project BD / sales team +10% IRR return Smaller B2B by Shell, Schneider Electric and Omidyar Property to financial solar customers with developers Execution team investors Large-scale RE targets Network. We are in active conversations Media / PR with 6 RE100 MNCs in 4 countries with Costs Revenues Deliver the 10MW project energy needs of over 200MW. 2021: Enter new country Housing tech development Project development Potential gov $/MWh margin Close 50MW in projects on all PPA’s subsidies Marketing PPA sales (not needed) Prasoon Kumar – CEO powerHYDE 16
In Venture SCALING, we search for best-in-class startups that solve specific problems that we have identified in our ENGIE businesses. We design and execute a pilot VENTURE SCALING project aimed at testing the startup’s solution within our operating business during a well- define period of 3-6 months with limited cost. Objective of the pilot is to validate the solution, measure the financial impact and if successful, define the plan to scale. That can be as an improvement of operations, the setup of a new service or the build of an entirely new company. 17
Project type: Collaboration with startup ENGIE investment: Pilot investment committed Validating the value of building analytics to set Starting date: the foundation for a strategic technology Mar 2019 partnership enabling a new ENGIE service Customer segments: CopperTree Analytics provides a powerful building analytics platform B2B (building operators) VENTURE SCALING that works with the Building Automation System and continuously monitors building performance and energy consumption to identify Geography: hidden issues, energy losses & optimization / cost-saving opportunities Start in SG, then rest APAC Pilot targets / results Collaboration Model Targets: Validate analytics to CopperTree (CT) becomes a technology partner to ENGIE for making fast identify low-CAPEX & cost-effective digital energy audits, allowing ENGIE to make energy energy savings performance contacts with new building customers “ENGIE should be the Energy Management partner for our key clients, Results: Pilot finished in July-19 Digital audit using combining data driven decision making and found >1mSGD/y of with our deep FM capabilities" energy savings at the 1 CopperTree (CT) (short 2w work) chillers of T3. Changi Airport have requested a CAPEX / OPEX est. Building customers proposal to implement pilot We are working with ENGIE 2 & commercial offer (malls, offices, recommendations and an Energy Management partnership approach. Services team to make a airports, factories, Keppel Land have provided an in- new contract with CAG universities, …) Implementation & principal approval for an energy efficiency project leveraging Expect 5-10mSGD/y 3 monitoring with CT CopperTree's solution. 18 savings across all airport (multi-year contract)
Project type: Collaboration with startup ENGIE investment: Pilot investment committed Streamline management, scheduling and Starting date: allocation of our workers to reduce overtime Sept 2019 and integrate with our customers CMMS Customer segments: TUTEN is a technology company, leader in digital transformation of Internal optimizations of VENTURE SCALING workforce management in the services industry. It offers integral workforce management in management of services for homes and companies, such as cleaning, FM and services activity electricians, plumbing, mechanics and others. ENGIE Factory Chile owns 40% in Tuten. Geography: Start in SG, maybe AUS Pilot targets / results Collaboration Model Targets: Validate saving potential Tuten would become the workforce management solution for ENGIE, in overtime and staff beginning with expansion across Changi Hospital followed by the reduction in one team remaining four hospitals, and other sites. Tuten could support ENGIE “Tuten will support dynamic workforce Australia’s field service management model allocation, improving efficiency, reducing Results: Once validated in Q1 of costs and provide data for future 2020, the system can be ENGIE 1 Changi 2 Alexandra contracts” further fine-tuned easily SEA Hospital scaled across the entire KKH The onsite team believe Tuten could be Changi Hospital activity extended to manage assets at the 1 Phase 1: Expand Tuten across all NTFH hospital, generating a new revenue and across all hospitals Changi Hospital teams in Singapore stream. ENGIE Australia are in early SKH Phase 2: Roll out Tuten across discussions with Tuten for Field Service 2 all hospitals Management and Asset Capture We expect savings of 3 Other opportunities. 0.7 – 1.5m SGD/y across 3 Phase 3: Extend to non-hospital sites 19 all five hospitals sites e.g. Changi Airport
Project type: Collaboration with startup ENGIE investment: Pilot investment committed Deploying a digital P2P solar offer in Singapore together with Senoko creates a unique platform Starting date: Sept 2019 for ENGIE to develop distributed solar Customer segments: Electrify’s P2P contract platform leverages smart contracts to enable B2B and B2C (consumers, VENTURE SCALING instant trading between producers and consumers. This collaboration solar generators and will provide Senoko with a compelling renewable energy retail offer prosumers who do both) and enable ENGIE to develop new solar assets with sleeved retail. Geography: Start in SG, later in AUS Pilot targets / results Collaboration Model Targets: Validate platform & SENOKO integration with retailer ELECTRIFY Consumption retail Platform Electrify's energy platform enables peer- + to-peer (P2P) trades across a main grid Results: Expected results by Solar • Matching algorithm allowing distributed solar assets to be Mar-19 on 50 B2C and Prosumer + to optimise supply transacted in a sleeved retail offer.” & demand. 10 B2B customers Generators Aggregate renewable • Unmet consumption energy demand Combining ENGIE’s solar development to be supplied by from customers for capabilities, Senoko’ generation & retail Commercial target to Senoko sleeve retail increase Senoko retail ENGIE to build and and Electrify’s digital platform creates a GM by SGD 10M and for ENGIE manage a pipeline of renewable asset unique platform for distributed solar development in Singapore to respond ENGIE to develop over Solar developer: set terms for procuring contracts. energy or requesting the the increasing demand from B2B. 200MW of new solar Accelerating construction of additional projects in Singapore decentralised solar capacity from internal or 20 external developers. Martin Lim – CEO Electrify developments
Project type: Collaboration with startup ENGIE investment: Pilot investment committed Reduce cost-to-serve in Simply Energy with Starting date: [24]7.ai by blending AI with human intelligence to Sept 2019 improve customer experience Customer segments: [24]7.ai will map the customer journey, and using big data analytics to Customer journey mapping VENTURE SCALING prioritise customer segments, automate standard actions and help manage customer complains better. Intended outcome is to reduce Geography: customer service cost-to-serve and increase profitability AUS, potential for European retail business Pilot targets / results Collaboration Model Targets: Reduce cost to serve for [24]7.ai would provide a SAAS solution to Simply Energy with managed specific customer services which would be gradually phased out as Simply develops their segment own in-house capabilities. “Understanding the full customer journey and specific pain points will Results: Recommendations allow Simply Energy to better focus its expected by Dec 19 limited resources increasing profitability” Full service Impact assessment Phase 1: Solution Analytics Implementation provided by [24[7.ai We believe that we can help Simply expected by Mar 20 Energy reduce their cost to serve as w Joint analytics team Phase 2: Solution Analytics Implementation have done with other companies before. to build capability ENGIE’s European retail entities face Simply Energy in- similar challenges and have indicated Phase 3: Solution Analytics Implementation house analytics interest in the solution. capability 21 PV Kannan – CEO [24]7.ai
Project type: RE N E W ABL E E N E RG Y Collaboration with startup FINANCING PLATFORM ENGIE investment: No commitment yet Testing an alternative financing model to fund Starting date: January 2020 small to mid-scale C&I solar projects and enable ENGIE to gain wider access to this segment Customer segments: Small to mid-scale C&I Engie has difficulties to competitively serve smaller-scale C&I customer (100 kW – 4.5 MW) VENTURE SCALING segments in Australia due to return requirements for these risk profiles and high costs to serve. Aggregating lower-cost financing from retail Geography: and/or accredited investors by partnering with a platform could enable Start in ANZ, later in other ENGIE to find a financially viable model to serve this segment countries Pilot targets / results Collaboration Model (illustrative) Targets: Select the right partner in Sept. 2019, define and test optimal “We believe ENGIE could serve to small financial model to mid-size C&I market better by leveraging competitive retail financing through an investment platform.” Results: Pilot to be completed in December 2019 In collaboration with ENGIE Services (SEA and ANZ), Simply Energy, B2B solar If successful, scale to teams and AI&FA we are exploring the more projects within possibility to leverage existing funding Australia and in other platforms for solar projects. countries Virginie Hello – Rainmaking Manager 22
Project type: Collaboration with startup ENGIE investment: Pilot investment committed Validating the ability that utility-scale solar plant degradation can be reversed and offered Starting date: June 2019 as a profit-sharing service to plant owners Customer AVA Asia uses proprietary machine learning algorithms on optical segments: VENTURE SCALING and thermal imaging generated by drone to identify defects such B2B (solar plant owners as bypass diode failure, hotspots, string failures and more. These and O&M operators) are recurring issues that lead to degradation which are difficult to detect through conventional O&M processes. Geography: Start AUS, later rest of APAC Pilot targets / results Collaboration Model Targets: Validate AI solar O&M The purpose was to validate AVA Asia's solution as a profit-sharing Develop economics service offering to plant owners. However given the initial lower than "AVA Asia is revolutionizing solar PV farms expected financial impact, we see more potential as an internal through 360 data analytics. optimisation tool (through an entity like Laborelec for example). Results: Initial results available (final by Sep-19) By using drone and plant data to identify inefficiencies, we have analysed over Initial results identify 400MW in 2019 alone and our corrective 0.2% yield increase on recommendations have helped operators 50MW solar plant (~0.5GWh/y) ENGIE Laborelec + AVA Asia data analytics value-added on: Enhanced offer for Solar asset and owners identify potential savings in excess of $1.2 million. This year we have Services performance also expanded our solution across to • Inspection programs Thailand, Vietnam, Malaysia and Chile. This equals €10k /y extra • Performance improvement optimisation revenue which is too • Pre-development advice 23 Wei Yik Lee – CEO AVA Asia small for new contracts
Project type: SMA RT C O MME RC I AL Collaboration with startup BUILDING INTEGRATION ENGIE investment: Pilot investment committed Integrating some of the best local IOT startups around intelligent building to provide ready-to- Starting date: June 2019 go solutions for our ENGIE Services business Customer Autonomous and data-driven HVAC and lighting control, activity segments: VENTURE SCALING measurement, CCTV image recognition analysis, air quality Commercial buildings measurement, all integrated via one API manager into our ENGIE IOT platform to provide a streamlined and simple solution for customers. Geography: Start SG, integrate global Pilot targets / results Collaboration Model IOT Targets: Integrate 7 IOT solutions and validate energy savings potential “Bringing together all these different technologies allow us to validate their Results: Installations in progress individual benefits but more importantly (final by Sep-19) allows us to take care of all the integration issues for our customers.” Once solutions are integrated, a localised In 2019 we are integrating 7 startup dashboard is created for solutions in our Factory space together with monitoring & control. Unabiz and our digital team in ENGIE SEA. This will be our showcase. Next validation is to integrate to ENGIE's 24 global digital system. Michelle Woo – VP ENGIE Factory
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