Funding

New businesses and technologies go through a number of stages before they reach full commercialization.  There are a wide range of resources to help businesses move along the path toward commercialization; one tool to help describe this path is a scale of Technology Readiness Levels (TRL).  Note that HREDV targets technologies in TRL 5-7 in its co-investment program.

The kinds of resources that are appropriate for your business depend on the TRL of the technology.  (Companies often have multiple technologies at different points along the TRL scale.)

Hawaii Science & Tech Funding Resources

In order to find the right financing and growth opportunities for your business, you need to understand the TRL of your energy technology in the DOE context, and match your business’s goals and capabilities to the mission of the funding organization.

After assessing the TRL of your technology, explore the resources below for possible funding opportunities.

See Resources for TRL 1 & 2
See Resources for TRL 3 & 4
See Resources for TRL 5 & 6
See Resources for TRL 7 & 8
See Resources for TRL 9

TRL 1&2

Technology readiness levels 1 and 2 correspond to basic and applied technology research.  Basic science and engineering research and paper studies would usually fall into this category.  DOE defines TRL 1 as Basic principles observed and reported and TRL 2 as Technology concept and/or application formulated.  Examples are a resource assessment for wind on Maui, and paper studies on basic properties of a technology or its feasibility.  A variety of programs are available to help Hawaii clean tech businesses who are at TRL 1 and 2:

TRL 3&4

Active R&D is initiated in Technology Readiness Level 3. TRL 3 encompasses research to prove feasibility, and TRL 4 gets into early technology development.  DOE defines TRL 3 as Analytical and experimental critical function / characteristic proof of concept. TRL 4 is Component and/or breadboard validation in laboratory environment.  Examples are small scale crop trials of potential tropical bioenergy crops, and laboratory testing of components for a high-efficiency photovoltaic cell.  Around TRL 4, projects move from science to engineering, with early investigation into how the components might work together as a system.

  • Small businesses and research organizations with SBIR/STTR Phase 1 funding: Businesses that received SBIR and STTR funds are eligible to apply for Phase 2 funding to support early technology development.
  • For technology that originates in UH: The UPSIDE program, run by the state-funded Hawaii Strategic Development Corporation, helps support technology research and proof of concept.
  • For ocean-related science and technology development: The National Defense Center of Excellence for Research in Ocean Sciences (CEROS) issues an annual solicitation, usually in the fall, for ocean-related technologies of interest to DARPA and Department of Defense needs. CEROS funds technologies ranging from TRL 2 to TRL 6.
  • For technologies with commercial applications and relevance to the Navy: Hawaii Technology Development Venture (HTDV), a project of PICHTR, issues an annual solicitation for technologies of interest to the Office of Naval Research with dual-use (military-civilian) applications.
  • For energy businesses and research organizations: The mission of the Advanced Research Projects Agency – Energy (ARPA-E), funded through the American Recovery and Reinvestment Act, is making awards in 2009 and 2010 through a national solicitation process in order to accelerate technology development and deployment.  Topic areas for the next round of funding are grid-scale energy storage, building efficiency, and power electronics.  Concept papers are due April 2, 2010.

TRL 5&6

Technology readiness levels 5 and 6 are technology demonstration.  According to DOE, TRL 5 requires Laboratory scale, similar system validation in a relevant environment and TRL 6 means Engineering/pilot-scale, similar (prototypical) system validation in relevant environment.  Examples are a pilot scale technology that produces ethanol from a cellulosic feedstock, and a prototype of a small wind turbine that is being tested in a variety of controlled, simulated environments.

  • For clean energy companies with projects located in Hawaii: HREDV is targeting this area with its range of activities, including a co-investment program available for companies nearing the commercialization of a technology.  The next round of funding is expected to be announced in summer 2010.

TRL 7&8

Technology readiness levels 7 and 8 represent the system commissioning part of the technology development cycle.  According to DOE, TRL 7 requires Full-scale, similar system demonstrated in a relevant environment and TRL 8 means Actual system completed and qualified through test and demonstration. Examples are a new electric car technology operating on the road in a wide variety of actual driving conditions, or the installation and testing of a new window technology in an occupied office building.

  • For clean energy companies with projects located in Hawaii: HREDV is targeting this area with its range of activities, including a con-investment program available for companies nearing the commercialization of a technology. The next round of funding is expected to be announced in summer 2010.
  • For energy efficiency technologies on Oahu, Maui, and Hawaii Island: The Public Benefits Fee Administrator – Hawaii Energy Efficiency and Conservation Programs, run by SAIC – test and validate efficiency technologies that help end users save energy.  Technologies that meet the program’s performance standards and cost criteria may ultimately qualify for a rebate under the program.  (Kauai’s energy efficiency are operated by the Kauai Island Utility Cooperative, and may also have opportunities for new technologies.)

  • For any energy project: Advanced Research Projects Agency – Energy (ARPA-E) was established in 2007 and funded with $400 million in Recovery Act funding in 2009.  In the agencies first round of grants, announced in Fall 2009, grants of approximately $4 million each were awarded to 37 companies, about 1% of total submissions.
  • For large projects: DOE loan guarantees provide an avenue to help companies obtain financing.  DOE issued a new rule on December 7, 2009 describing program parameters.
  • Companies looking for venture financing: There are a number of venture capital funds that are based in Hawaii and focused on Hawaii technologies; the Hawaii Venture Capital Association has a directory of the various companies.

TRL 9

Technology readiness level 9 represents a commercial technology – in DOE terms, the Actual system operated over the full range of expected conditions. At this point technologies are considered fully developed and, given that they serve a need and can be produced at the right price, are ready to be introduced to the commercial marketplace.  An example is a residential solar water heater, or a vehicle that operates on biodiesel throughout the year.

Once technologies reach TRL 9, businesses should be seeking primarily private funding to finance and grow their activities, such as private equity financing and traditional bank lending.

Public resources are still available to help businesses grow, and businesses can help their customers identify tax credits, utility incentives, grants, and loans to help support the installation of commercial clean energy technologies:

  • For residential and commercial customers: Ratepayer-funded programs – KIUC (on Kauai) and Hawaii Energy Efficiency & Conservation Programs (on the Big Island, Oahu, and Maui County) – provide a range of incentives for efficient appliances, solar water heaters, and other measures.

  • Companies looking for venture financing: There are a number of venture capital funds that are based in Hawaii and focused on Hawaii technologies.  The National Renewable Energy Laboratory has also compiled a directory of firms that invest in clean energy throughout the U.S.