EnerTech Industry Review “Thought Leadership in Energy Technology”

We are pleased to bring you our Seventh Edition of the

EnerTech Industry Review. We have continued to be busy

over the past quarter with our existing funds and with

reviewing new deals for EnerTech Capital Partners IV (ECP

IV). ECP IV has invested $54.6 million into 11 companies to

date with a total committed capital including reserves of $82.2

million.

The major investment highlights since our last report include:

NanoSteel announced delivery of its first advanced high-

strength steel (AHSS) to General Motors for initial testing.

Designed to provide automakers with a new standard in

material performance, the sheet steel is poised to accelerate

vehicle light weighting initiatives focused on affordably meeting

rising global fuel-economy regulations. Production of the

material, targeted to the $100 billion-plus automotive steel

market, is the result of a multi-year joint development

program between NanoSteel and AK Steel Corporation - an

industry-leading innovator in steel product development. For

more on this story, please visit the following link.

EnerTech Update

Wally Hunter

Managing Director

EnerTech Capital

Vol 7 ● July 2016

ECP II

2

There are four major investments remaining in ECP III, which

include:

Enbala Power Networks http://www.enbala.com/

Tangent Energy Solutions http://www.tangentenergy.com/

FilterBoxx http://filterboxx.com/

PCN http://www.pcntechnology.com/

Each of these companies continues to move forward with their

business models and there has been positive news recently on

the customer front for many of them.

Follow-on investments totaling $3.0 million in five

companies (GeoDigital, Space-Time Insight, Terralux,

Western Oilfield Equipment, and Blue Pillar)

Power Survey International http://powersurvey.com/

company/news/

On the heels of closing our $3.6 million investment last

quarter in Power Survey Inc., as planned we have hired a new

CEO and CFO for the company.

The new CEO, Mario Barbaresso, has more than 30 years

experience in the power industry; 13 of which were as CEO of

Benning Power Electronics. The new CFO, Lenny Ryer, has

been CFO of both public and private entities in various

technology sectors for the past 16 years and has been active in

financing transactions within the capital markets for over 25

years.

We view our investment in Power Survey as a platform

investment in the Grid Edge space, with an initial focus on

Power Quality. The company has entered into formal Letters

of Intent for acquisitions of two companies that fit into the

platform strategy. We expect additional draw down of

reserves for this company in conjunction with acquisitions

over the next few months.

EnerTech Industry Review

59.2%

40.8%

Canada US

ECP III

ECP IV

ECP IV Portfolio Mix

Our current portfolio mix in ECP IV is:

Geography by % $ Invested Sector by % $ Invested

58.23%16.06%

25.70%

Power Technology O&G Technology Building/Process Efficiency

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EnerTech Spring Advisory Board Meeting:

The EnerTech Advisory Board Meeting was held on May 26th

2016 in Toronto. We had over 70 in attendance and the

meeting included a number of our major LPs, Portfolio

Company CEOs, Strategic Advisory board members and

Strategic Partners. Keynote speakers included Advisory Board

members Mike Babcock (Coach of Toronto Maple Leafs) and

Governor George Pataki (Former Governor of New York

and Former Republican Presidential Candidate).

EnerTech Team updates:

We were very pleased to announce the

addition of Ed Jackson to our Advisory

Board. Ed was Managing Director & Co-

Head Investment Funds, RBC Capital

Markets. Ed is a well-respected industry

leader with 30 years’ experience

providing senior coverage to key RBC

clients in Investment Banking, National

Accounts and Real Estate Lending.

Ed brings significant contacts in the institutional investment

world and will be helpful to our firm as we expand our

investor base for future funds.

ECP IV Opportunity Landscape: From the Well Head to the Wall Socket

We continue to see strong deal flow from Canada and the US

with over 550 deals reviewed in 2015 and 250 so far in 2016.

We are currently closely reviewing two to three new deals

and would expect to close another new deal in late Q3 or

early Q4 2016.

Our investment landscape in ECP IV continues to be broad in

the Energy Technology sector and we are seeking innovative

technologies from “The Well Head to the Wall Socket”. We

are seeing the following types of interesting opportunities in

our investment landscape:

Behind the Meter technologies, including device control;

Building automation, lighting and energy efficiency

technology;

Digital Oilfield and Oil & Gas technologies focused on

reducing the cost of oil production

In the current fund we continue to focus on revenue

producing companies or companies that are embarking on

growth rounds of financing with proven technologies and

customer base.

EnerTech Industry Review

EnerTech News

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EnerTech Industry Review

Over the past two years, Canada has experienced significant

momentum towards placing a price on carbon. Ontario has set very strict GHG emission reduction limits and

introduced a cap-and-trade system which will “go live” in

2017. In 2018, Ontario will link with the joint carbon market in

Quebec and California. Quebec has set tougher GHG

reduction limits to keep pace with Ontario. Most recently the

Alberta government introduced an economy-wide carbon tax

set to begin in 2017, and the new Manitoba government

committed to putting a price on carbon in its 2016 Speech

from the Throne. Perhaps the most striking shift has been at the federal level.

Prime Minister Trudeau has declared unambiguous support for

putting a price on carbon. At a First Minister’s meeting in

Vancouver, he and Canada’s Premier agreed to work toward a

national climate change plan that includes an agreement in

principle for a carbon-pricing mechanism, and struck a working

to further study the issue. This rare confluence of political events has made it likely that

carbon pricing will remain in place in Canada for years to

come. Provinces, given their early actions and legislative

responsibilities, are expected to continue their leadership role.

The federal government’s primary focus is likely to be reducing

emissions from its own building stock, funding green

technology research, development and commercialization, and

pressing the issue on the international scene. It is important to

note however, that in recent weeks reports have suggested

that Finance Minister Bill Morneau has been pushing for a

minimum national price to complement provincial carbon

pricing plans. We expect to see more developments on this

file federally over the next six months. With some form of carbon pricing in place in Canada’s largest

provinces and support at the federal level, there will be

significant implications for market participants as well as

consumers. In Ontario, the nation’s largest economy, significant cap-and-

trade auction revenues and aggressive GHG reduction targets

will generate new opportunities for potential green technology

investment. The government’s recently-released Climate

Change Action Plan details over 75 actions. One commitment

is to establish a green bank, based on the Efficiency Vermont

and the New York Green Bank, to deploy and finance readily

available low-carbon technologies. The green bank will also

design and deliver programs and services to reduce GHGs and

will help large and small emitters improve energy productivity

and modernize. Understanding exactly how this bank will work

and how business could interact with it may well determine

the business’s ability to access such programs and funds. In the near term, the increased cost of carbon from the

government’s plan is not expected to be high enough to have a

significant impact on consumption behavior (government

predicts 4.3 cents per litre for gasoline). Therefore, the

effectiveness of these action items, on a dollar per tonne basis,

will be essential if the government is to have any hope of

meeting its targets. In order to fund these items, the

government will be dependent on revenues generated through

the cap-and-trade auction. However, the last joint California-

Quebec auction revenues fell far short of expectations with

buyers purchasing just 2% of the carbon credits. British Columbia, as mentioned, imposes a tax on carbon

emissions from fossil fuels, but has come under fire recently

for reports that its greenhouse gas emissions could rise by

39% above 2014 levels by 2030. Critics have encouraged the

Clark government to raise the current levy of $30/tonne on

carbon emissions (equaling about 8 cents per litre of gasoline)

which has been frozen for the past four years. The province is

expected to announce a new climate-change plan soon,

including initiatives to reduce carbon emissions.

The Developing Carbon Markets in Canada

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EnerTech Industry Review

Source: Redline Communications

Alberta’s carbon tax is set to begin on January 1, 2017. The

levy will apply to purchases of fossil fuels that produce

greenhouse-gas emissions when burned, at a rate of $20 per

tonne of emitted carbon dioxide, with the rate due to rise to

$30/tonne in 2018. Over the next 5 years, the levy is

expected to raise $9.6 billion, with $3.4 billion pledged for

large scale renewable energy, bioenergy and technology, $2.2

billion for green infrastructure like transit, $2.3 billion for

carbon rebates to help low- and middle-income families, and

$195 million to assist coal communities, Indigenous

communities and others with adjustment, among other things.

Some items to follow closely over the next year:

The design of Ontario’s cap-and-trade system for the

second compliance period, particularly for large industrial

emitters, and more details on spending items from the

Climate Change Action Plan

The price yielded by the joint Quebec-California emissions

credit market – Ontario not expected to join until 2018

Further details on BC’s climate change plan

How the Alberta government begins to spend its carbon

tax revenues, particularly in the area of green technology

Ongoing discussions between the provincial and federal

governments about a national carbon price, including the

results of their joint “working group” later this year

Aaron Dobbin (Vice-President) and Matt Thompson (Manager) are

part of StrategyCorp; a firm specializing in providing strategic

advisory services to private and public sector clients operating in

complex, highly regulated and highly scrutinized contexts. The

company’s unique service capabilities allow it to analyze every client

challenge through multiple lenses - business, political and

communications - enabling us to create conditions for success.

6

EnerTech Industry Review

The National Optics Institute:

Canada’s Leading Developer of Industrial

Optics and Photonics Solutions

In June, 2016 EnerTech Capital announced its Strategic

Partnership with The National Optics Institute (“INO”). INO

is Canada's leading developer of industrial optics and photonics

solutions and the strategic partnership between EnerTech and

INO will allow the two groups to share knowledge and

explore new commercialization strategies for technologies in

the energy space.

INO is a pioneer in optics/photonics research for industrial

development purposes. Today, INO is Canada’s leading center

for industrial research and commercialization and stands as a

true leader in its field. Its many technological breakthroughs

and innovative processes and applications combining optics

and photonics have cemented its reputation both domestically

and abroad. Optics and photonics technologies provide

important strategic benefits to the Oil & Gas, electrical, solar,

and green energy industries by significantly enhancing their

capacity to boost productivity, deal with environmental

constraints, and optimize control measures.

INO creates innovative solutions for the energy industry,

particularly online real-time chemical and physical measuring

systems for improved process control. INO technologies can

also be employed to optimize the use of solar and artificial

light, pipeline monitoring and leak detection, 3D infrastructure

mapping, non-destructive testing and monitoring & control

applications in the Internet of Things space (“IoT”).

Moreover, INO specializes in the development and use of fiber

sensors for a wide variety of applications, such as the

detection of ions in solution, detection of medium voltage in

distribution networks, low-intensity acceleration and

movement detection, and radiation detection. INO also has a

very successful history in spinning out new companies in the

optics space over the years and the partnership with EnerTech

will further help expand spin-out opportunities.

The following are the four Technology Pillars of current focus:

3D and Other Imaging Systems

Lasers

LiDARs

Lighting

Sensors

Specialized Services (Environmental Testing,

Optical Design, etc.)

Specialty Optical Fibers

Spectral Imaging Systems

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EnerTech Industry Review

Q2 2016 EnerTech Portfolio Company News If you are viewing a digital version, please click on the news item for more information.

May 17, 2016 Mark Williams Joins Blue Pillar as Vice

President of Sales

April 21, 2016 Blue Pillar One of Twenty Companies to

Receive Greentech Media’s Prestigious

Grid Edge Award

March 17, 2016 Blue Pillar Sponsors New Healthcare

Leadership Initiative: Powered for

May 20, 2016 Encycle Releases HVAC Visibility

Services

May 16, 2016 Encycle Showcased as Innovator in

Biomimicry

ECP IV

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EnerTech Industry Review

March 31,

2016

GeoDigital CEO Chris Warrington

featured in Chief Executive Magazine

article

June 14, 2016 N-Dimension Appoints Utility Industry

Veteran Mark Munday to its Board of

Directors

June 9, 2016 N-Dimension Selected by PUC Services

to Improve Utility’s Cybersecurity

June 7, 2016 N-Dimension Welcomes Roger

Thornton, Chief Technical Officer of

AlienVault, to its Board of Directors

May 11, 2016 N-Dimension Cybersecurity Intelligence

Improves IT Efficiencies at La Plata

April 25,

2016

N-Dimension Delivers Unmatched

Cyber Risk Visibility at Columbia Power

and Water Systems

April 13, 2016 N-Dimension Selected By Smart Grid

News as a Company To Watch In 2016

May, 2016 Terralux Partners with ENERGY STAR to

Develop Certification for LED Retrofit

April 1, 2016 TERRALUX lighting and IoT – Internet of

Things

May 23, 2016 Space-Time Insight Launches Singapore

Subsidiary For Asia Pacific Innovation

April 11, 2016 Space-Time Insight Applies Data Analytics

To Keep Workers Safe

March 29, 2016 LiveData Utilities And Space-Time Insight

Increase Electric Reliability Through

Analytics And Real-Time Device Control

April 24,

2016

Mario Barbaresso Named President,

CEO of Power Survey International

Mark Munday

New N-Dimension

Board Member

Mario Barbaresso

New CEO of

Power Survey

Roger Thornton

New N-Dimension

Board Member

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EnerTech Industry Review

ECP III ECP II

June 13, 2016 NanoSteel Joins Industry’s Best at Steel

Success Strategies

June 06, 2016 Automotive Manufacturing Looks at

NanoSteel Doing More with Less

May 20, 2016 NanoSteel and AK Steel Win Platts

Breakthrough Solution of the Year

Award

April 21, 2016 NanoSteel Delivers Advanced

Automotive Steel to General Motors

April 19, 2016 Michael Ratliff Joins Enbala Power

Networks as Senior Product Executive

May 17, 2016 FilterBoxx Announces Award of Camp

Project in Texas

May 9, 2016 Fort McMurray Wildfire Relief Efforts

May 9, 2016 FilterBoxx Announces Award of Industrial

Project in Mexico

April 4, 2016 FilterBoxx Announces Award of Large

Operations & Maintenance Contract

March 15, 2016 FilterBoxx Announces Sanitary

Wastewater Treatment Plant for Mining

Installation

NanoSteel Advanced High Strength Sheet Steel

The Platts Global Metals Award recognizes the product’s groundbreaking

properties, which offer the combination of both high strength (1200 MPa)

and high formability (50% elongation).

Michael Ratliff

Enbala Senior

Product Executive

The FilterBoxx equipment endured some of the harshest climates on top of

a frigid glacier. During the winter, it was completely submerged in heavy

cold snow and it operated consistently.

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EnerTech Industry Review

The EnerTech Advisory Board Meeting was held in Toronto on May 26 2016. The complete event agenda is below, followed

by photos from the event. The EnerTech Forum & LP Meeting will again be held in Miami from November 30 to December

1st, 2016.

2016 EnerTech Advisory Board Meeting

Agenda

Guest Speakers

Mike Babcock

Coach of the

Toronto Maple

Leafs

Governor George

Pataki

Former New York

Governor and republican

Presidential Candidate

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EnerTech Industry Review

Venture Capital Update – Q1 and Q2 2016 – VC Investments in Canada A total of $869 million was deployed in 152 financing rounds by Canadian VCs in Q1 2016 according to final data

released by Thomson Reuters. Led by deal making in information technology sectors, dollars invested in this period rose 61%

from Q1 2015, reflecting the best quarterly result in the Canadian market in more than 14 years.

Select deals from Q1 and Q2 2016 are outlined below.

Source: Thomson Reuters

Venture Capital Investment in Canada

Company Name Description Major Investors Investment

Amount (CAD)

Detects, remediates and communicates sophis-

ticated cyber threats in real-time

Georgian Partners, Edison

Ventures, Cisco Investments,

Information Venture Part-

ners, Northleaf, Teralys

$19.5 million

A developer of mobile video collaboration so-

lutions for energy, field service, manufacturing,

and public sector industries.

BDC, Emerald

Technology $8.2 million

A developer of a smart logistics platform that

optimizes routes for last-mile delivery fleets,

saving businesses up to 40% on time and fuel.

Pallasite Ventures, Firestarter

Fund $1.2 million

Select Canadian VC Investments from Q1 and Q2 2016

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EnerTech Industry Review

Venture Capital Update – Q1 and Q2 2016 – VC Investments in the US

The venture capital ecosystem deployed $12.1 billion into 969 deals across the United States in 2016. Total venture dollars

deployed to startup companies for the quarter remained flat and total deal count was down 5%, compared with the fourth

quarter when $12.0 billion was invested in 1,021 deals. Compared with Q1 2015, dollars and deals are both down 11 %. This

is the ninth consecutive quarter of more than $10 billion in venture capital invested in a single quarter. Select deals from Q1

and Q2 2016 are listed below and on the next page.

Total US Equity Investments into Venture-backed Companies

(in billions USD)

Source: PwC and the

NVCA based on data

provided by Thomson

Reuters

Company Name Description Major Investors Investment

Amount (USD)

A developer of smart energy-efficient homes

through the monitoring and controlling of

devices.

EDBI, Singapore Technologies

Telemedia, The Westly Group,

E.ON Ventures

$45 million

Full-service provider of intelligent energy stor-

age systems comprising batteries, power elec-

tronics and multiple energy inputs controlled

by software running in the cloud.

AGL Energy, SBCVC, Siemens

Venture Capital, Total Energy

Ventures, Australia Renewable

Energy Agency

$36.5 million

A developer of big data discovery and leverage

software for multiple industries.

Per-Olof Soderberg, GE Pension

Trust, Tenth Avenue Holdings,

Oak Investment Partners

$31 million

Developer of hardware, software and cloud

solutions for commercial Unmanned Aerial

Vehicles.

Andreessen Horowitz, KPCB,

John Chambers, Next World

Capital $30 million

Select US VC Investments from Q1 2016

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EnerTech Industry Review

Select US VC Investments from Q2 2016

Venture Capital Update – Q1 and Q2 2016 – VC Investments in the US

Company Name Description Major Investors

Investment

Amount

(USD)

Developer of a mass-market urban

transportation solution that is flexible,

cost-effective, and environmentally-

friendly

Pitango Venture Capital, Poalim Capi-

tal Markets, C4 Ventures, Ervington

Investments, Hearst Ventures,

83North

$100 million

Provider of hardware, process, and ma-

terials solutions to streamline

production of OLEDs

BOE, Cybernaut Investment (China),

GP Capital, Redview Capital, TCL

Capital, Samsung Ventures, Sigma

Partners, Spark Capital, Madrone

Capital Partners, DBL Investors, New

Science Ventures, Veeco Instruments

$88 million

Developer of vacuum tube transporta-

tion technology based off of the concept

proposed in 2013 by Elon Musk

Sherpa Capital, 137 Ventures, 8VC,

GE Ventures, Caspian CV Partners,

Justin Mateen, Khosla Ventures,

NextGen Venture Partners, SNCF,

Western Technology Investment,

ZhenFund

$80 million

Provider of electric vehicle (EV) charging

solutions

Linse Capital, Braemar Energy Ven-

tures, Constellation Energy $50 million

Developer of CRISPR cellular engineer-

ing and analysis technology with applica-

tions in research, industrial biotech,

agricultural, and therapeutics

Anterra Capital, Heritage Group,

Maverick Capital, Pontifax AgTech,

Novartis, Mission Bay Capital, 5 Prime

Ventures, F-Prime Capital Partners

$30 million

Provider of an API to search and

discover hadoop data

Saudi Aramco Energy Ventures, Shell

Technology Ventures, GE Ventures,

Chevron Technology Ventures, Intel

Capital, Frost Data Capital

$26 million

Enabling solid-state ultraviolet

disinfection of water, air and surfaces

Tsing Capital, IPV Capital, DCM Ven-

tures, Capricorn Investment Group,

Applied Ventures, Augment Ventures,

Tolero Ventures, New Ground

Ventures

$26 million

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EnerTech Industry Review

The EnerTech Team

A Seasoned, Diversified, and Experienced Group

Wally Hunter

Managing Director

Lyndsy MacArthur

Executive Assistant

Angelica Mengana

Analyst

Scott Ungerer

Managing Director

Bill Kingsley

Managing Director

Dean Sciorillo

Managing Director

Donna Smith

Executive Assistant

Gian Vergnetti

Associate

Jarett Carson

Managing Director

Dr. Dominic Geraghty

Executive in Residence

Philadelphia

Toronto

San Francisco Boston

Robert M. Chiste

Executive in Residence

Houston

Colleen Pale

Director of Finance

and Administration

Montreal

Anne-Marie Bourgeois

Vice President

Investments

West Palm Beach

Calgary

Chris Buckman

Vice President

Jessica Ungerer

Social Media Intern

Hoon Chung,

Executive in Residence

Orange County

Toronto Toronto

Philadelphia Philadelphia

Philadelphia Philadelphia Philadelphia

Calgary

Eric Schmadtke

Special Advisor

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EnerTech Industry Review

The EnerTech Strategic Advisory Board

Our Network is an Extended Family of Deal Sourcing, Due Diligence and Exits

The EnerTech Strategic Advisory Board is made up of a diverse and experienced group of

visionaries, industry leaders and experts in various disciplines. They bring unparalleled expertise and

a wide network in the areas of energy services and policy, information technology, Oil & Gas, and

clean energy innovation. We are proud and grateful to have them as members of our Advisory

Board.

Independent Board Members

Dr. Bill Madia

SLAC National Accelerator Laboratory,

Stanford University

Dr. Jim de Wilde

President, JdW Strategic Ventures

Michael Harris

Former Premier of Ontario

Sharon Allan

President & CEO, SGIP

Mike Babcock

Coach of the Toronto Maple Leafs

Ed Jackson

Previously Managing Director & Co-

Head Investment Funds, RBC Capital

Markets

16

EnerTech Industry Review

Independent Board Members Continued

J. Scott Magrane

Managing Director, Coady Diemar

Partners

David Milenthal

CEO, The Milenthal Group

Governor George Pataki

Former Governor of New York

Vicky Sharpe

Founding President of SDTC

Rob Soni

Independent Board Member

Gordon Pridham

Principal, Edgewater Capital and

Newalta Board Member

Etienne Veilleux

Founder, Distech Controls

The EnerTech Strategic Advisory Board

Thought Leadership in Energy Technology

17

EnerTech Industry Review

Rebecca Kauffman

President and COO, Southern Ute

Alternative Energy

Eric Legault

Managing Partner, Teralys Capital

John Morris

Sr. Vice President of Field

Operations Waste Management

Nils Voermann - Global

Managing Director -

Technologies, Hatch

Marty Toomajian

President of Energy, Health &

Environment, Battelle

Victor Scutaru

Director, Fund Investments, BDC

Venture Capital

Scott Pinizzotto

Senior Director, ENGIE New

Ventures

Rebecca Giffen

Director of Investments, Alberta

Enterprise Corporation

Cam MacNaughton

Executive Director

Commercial Development,

Newalta Corporation

Alex Beliaev

Investment Manager, EDC

LP and Strategic Partner Board Members

18

EnerTech Industry Review

The EnerTech Ecosystem

Strategic Partners

Limited Partners

19

EnerTech Industry Review

September 22-23, 2016 – Banff, AB

Banff Venture Forum

September 24-28, 2016 – New Orleans, LA Weftec - The Water Environment Federation’s Annu-

al Technical Exhibition and Conference

September 27-28, 2016 – New York, NY

New York Rev Future 2016

October 25-26 – San Diego, CA

U.S. Solar Market Insight

October 31- November 2, 2016 – Atlanta, GA

Utility Analytics Week

December 7-8, 2016

U.S. Energy Storage Summit

December 13-15 6-8, 2016 – Orlando, FL

POWER-GEN International

January 23-25, 2017 – San Francisco, CA

Cleantech 100 Conference

Upcoming

Industry Events

www.EnerTechCapital.com

Philadelphia ● Toronto ● Montreal ● San Francisco ● Calgary

For questions or comments, please contact:

Wally Hunter

Managing Director, EnerTech Capital

whunter@enertechcapital.com

tel #416-363-8563

Contact: Lyndsy MacArthur: 416-515-2759 or

lmacarthur@enertechcapital.com