Roger BallentinePresident, Green Strategies, Inc.

University Clean Energy Association of OhioFriday, February 28, 2014

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Where it Comes From; Where it Goes

Natural Gas is Changing Everything

Natural gas is changing export/import dynamic and overall energy mix

The Most Direct Impact of Gas Revolution has been on Coal

U.S. is quickly becoming its own greatest source of oil thanks to shale production

But Not Just Gas; Unconventional Production Means New Oil Reality

Canada (28%)Saudi Arabia (13%)

Mexico (10%)Venezuela (9%)

Russia (5%)

Paradigm Shift: North America becoming World’s Oil King

Shale production has enabled the U.S. to become an oil exporter even under tight restrictions

Renewable Energy

Wind has contributed significantly

to non-hydro renewables growth

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Tip #2: Know your Opposition

◦ Energy not an end product

◦ Petroleum is wonderful

◦ Price of fossil fuels: “Cheap”

◦ Mature and amortized old energy infrastructure.

◦ Plentiful and cheap energy enables economic vitality

◦ Lots of people make lots of money on old energy economy.

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◦ Price does NOT equal Cost – anathema to a “free” market

◦ A democratically-imposed market manipulation

◦ Policy has been overt, pernicious and phenomenally successful

◦ But it has been a societal, democratic choice

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“Traditional” Venture Investment in Clean Energy in Waning

Clean Energy Needs Market and Business Model Innovation

o New energy offerings may need to offer more than energy – and more than “clean” --(information/resiliency/ convenience)

o Financial and business model innovation can address balance sheet hesitancy and large capital costs (solar has done this with distributed PPA offerings; energy efficiency has done this through on bill financing and energy savings payback models)

o Energy companies need to think beyond energy companies (communications/IT/data management sectors are all potential clean energy channel partners)

– Better align price and cost of incumbent energy (regulation/carbon tax/other)

– Reinvent regulated utility model

– Continued government R&D and deployment help

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And Yes, Clean Energy needs Policy Innovation

Energy and Environmental Technology Market Services: We

offer unparalleled insight into complex and dynamic business

drivers that impact M&A, investment and project development

decisions in the changing energy and environmental business

sectors; we assist with due diligence, project development, and risk

evaluation.

Strategic Business Consulting: We help clients develop and

execute strategies that minimize risk and deliver value to

shareholders by using our expertise and insider insights to best

align core business models and product strategies with current and

future policy drivers, leading sustainability best practices, and other

market developments.

Governmental & Stakeholder Affairs: We design solutions to

position our clients for success in the public policy arena, helping

them anticipate business-relevant policy changes, influence policy

development, and build critical alliances with thought-leaders,

stakeholders and like-minded businesses.

Green Strategies provides strategic advice, business intelligence,

and consulting services with regard to: corporate sustainability;

energy and environmental governmental policy; stakeholder

engagement; and energy/environmental technology investment

and transaction evaluation – all with a goal of maximizing business

opportunities and organizational goals.