ONEIA Breakfast meeting December 10, 2009. Presentation SUSAN MCLEAN Regional Director, Partnerships Tel.416-644-8726 ext. 2 Email s.mclean@sdtc.ca

1. Susan McLean, Regional Director, Partnerships
Presentation to ONEIA: December 10, 2009

2. SDTC Background
• SDTC began operations in November of 2001
• Registered as a not-for-profit, non-share capital corporation
• Operates as an arms-length independent organization
• Accountable to Parliament through the Minister of Natural
Resources
• Funding allocation of $1.05B from Government of Canada

3. SDTC Funds
SDTC operates two funds:
$550 million SD Tech $500 million NextGen
Fund™ was launched Biofuels Fund™ was
on April 4, 2002. launched on
September 12, 2007.
The funds are complementary and address different gaps in the
The funds are complementary and address different gaps in the
Innovation Chain
Innovation Chain

4. SD Tech Fund™
The purpose of the SD Tech Fund™ is to:
• Support the late-stage development and pre-commercial
demonstration of clean technology solutions that address:
• Climate Change
• Clean Air = $350M
• Clean Soil
= $200M
• Clean Water
• Encourage the formation of new partnerships that form the
basis of sustainable clean tech supply chains
• Increase number and rate of uptake of clean technologies
into relevant market sectors.
4

5. Funding Gap – Pre-commercial
Market
Product
Technology Development Entry &
Fundamental Applied Commercialization
and Demonstration Market
Research Research & Market
(Pilot to Full Scale) Volume
Development
Funding Intensity
Pre-
Pre-
IPO
Governments Pre-
Pre- Gap
Commercial
Banks
Gap
Venture Capital
Industry Industry
Angel Investors
Public and Private Sector Research 17 55 66 79
Lack of funding for technology development and demonstration
Lack of funding for technology development and demonstration
creates a Pre-Commercial Gap in the Innovation Chain
creates a Pre-Commercial Gap in the Innovation Chain

6. Funding Gap – Capital Intensive
Product Market
Technology Development
Fundamental Applied Commercialization Entry &
and Demonstration
Research Research & Market Market
(Pilot to Full Scale)
Development Volume
Funding Intensity
Pre-
Pre-
High CAPEX IPO
Governments Pre-
Pre- Gap
Commercial
Gap Banks
Gap
Industry Industry
The absence of angel and venture capital funding leads to a
The absence of angel and venture capital funding leads to a
second gap we call the High CAPEX Gap.
second gap we call the High CAPEX Gap.

7. SDTC Addresses Funding Gaps
Product Market
Technology Development Commercialization Entry &
Fundamental Applied
and Demonstration & Market Market
Research Research
(Pilot to Full Scale)
Development Volume
SD Tech NextGen Biofuels
Governments
Banks
Industry Industry
The NextGen Biofuels Fund and the SD Tech Fund are positioned
The NextGen Biofuels Fund and the SD Tech Fund are positioned
to complement each other
to complement each other

8. SDTC Pre-Commercial Validation
The SD Tech Fund™ is structured to increase the success rate of
pre-commercial, unproven technologies
Provides pre-Venture Capital investment into the development and
demonstration phases (supports ~ 1/3rd of project costs)
Contributions typically range from several hundred thousand to several million
Cash contributions are non-repayable and requires no equity
Allows a business to allocate existing resources to run their core business
Defers or avoids equity dilution financing while building up value
Business often becomes venture grade or technology bankable at the end of
the project

9. Project Consortia Structure
“Go-To-Market” Consortia should include:
● The managerial, business planning, financial, strategic and
technological expertise to carry out the project
● The key players in the value chain for the given technology market
● i.e. Researchers, Technology developers, Key Technology Suppliers, Engineering /
Environmental Consultants, Investors, Demonstration host (representative
customer)
● Consortium Members should contribute Cash and / or In-kind
contributions

10. SD Tech Fund
– Funding Allocation Process
• Has two phases for applicants and four decision gates
• Phase I – Statement of Interest (SOI) – not too onerous, it is
informative and sufficient to assess
• Phase II – Proposals by Invitation – equivalent to a business plan
• Gate I – SDTC review
• Gate II – technical and business experts
• Gate III – Investment Committee + Project Review Committee
• Gate IV – Board Approval
Screening Criteria
• Technical, Market, Business and Environment
10

11. Industry’s Contribution is
Impressive
Applications to Date (15 Rounds) Total Eligible
Project Costs $1.4 B
•1,670 applications (>5000 entities)
•90% industry-led
•$4.1 Billion in funding requests
•$16 Billion in total project value
Strong Demand SDTC Contribution Leveraged Funding
$425 M (30%) $1 B (70%)
Rate of SOIs remains strong
Number of applications constant
over last 4 years (+/-10%)
Projects Approved (14 Rounds)
Industry Leveraged Other Funding*
Funding
•171 projects $846 M (84%) $164 M (16%)
•$425 Million from SDTC
•$1.4 Billion in total eligible project value * Includes funds from federal
departments, provincial
•33 projects completed governments and academia
Numbers as of June 2009
Private industry in Canada is supporting cleantech, providing
Private industry in Canada is supporting cleantech, providing
84% of all leveraged funding into SDTC projects.
84% of all leveraged funding into SDTC projects.

12. SD Tech Portfolio – Sectoral Spread
SDTC supported projects contribute technology solutions to
SDTC supported projects contribute technology solutions to
major economic sectors in Canada.
major economic sectors in Canada.

13. SDTC is Making the Cleantech
Market in Canada
600
500
400
300
Millons
200
100
0
2006 2007 2008
Venture Capital SDTC & Partners
Source: Thomson
Reuters, March 2009
SDTC and its partners invest 1.5x the total private investment in
SDTC and its partners invest 1.5x the total private investment in
cleantech, driving overall cleantech venture capital funding in Canada.
cleantech, driving overall cleantech venture capital funding in Canada.

14. Follow-on Investors attracted to
projects SDTC had invested in
Follow-on Investments*
$400
$350 $338
$300
$261
$250
$187
$M
$200
$150
$107
$100
$50
$8
$0
2005 2006 2007 2008 2009 (as of June, 2009)
*Based on publicly disclosed financings to SDTC-funded companies.
31 Projects into which SDTC has invested $86M have raised
31 Projects into which SDTC has invested $86M have raised
$902M in follow-on funding in the past four years.
$902M in follow-on funding in the past four years.

15. SDTC - More Than Funding
SDTC’s mission is to “act as the primary catalyst in building a
sustainable development technology infrastructure in Canada”.
Building Young Companies
help entrepreneurs sharpen their market savvy, increase their ability to identify the
economic and environmental strengths of sustainable development projects, and define
their value proposition.
Reducing the Risk to Enable Private-Sector Funding
de-risk clean technologies in a way that will ultimately attract downstream private-
sector investment by stringent due diligence process and strengthening project
consortia.
Analysis and Market-Focused Policy Advice to Government
Through SD Business Case™ reports, work with industry, academia and various levels of
government to analyze current needs, determine the proper course that should be taken
and to outline the technology and policy instruments needed to get there.
Building a cleantech infrastructure in Canada requires in-depth
Building a cleantech infrastructure in Canada requires in-depth
industry experience, market knowledge, and technical expertise.
industry experience, market knowledge, and technical expertise.

16. For More Information
Sustainable Development Technology Canada
www.sdtc.ca
Ottawa Head Office: Toronto Office: Vancouver Office:
World Exchange Plaza First Canadian Place, World Trade Centre
45 O’Connor Street, 100 King Street W., Suite 404 - 999 Canada
Suite 1850 Suite 3700 Place
Ottawa, Ontario Toronto, Ontario M5X Vancouver, BC
K1P 1A4 1C9 V6C 3E2
Tel: (613) 234-6313 Tel: (416) 644-8726 Tel : (604) 844-2857
Susan McLean
Regional Director, Partnerships
s.mclean@sdtc.ca
Direct: (416) 644-8726 x2