GreenPoint Partners

Main mission to invest in clean technology (clean-tech)

Green-energy-oriented
Focus on new energy sources, energy efficiency, water conversion
Looking for sustainable and innovative business models around energy
Emerging market focused firm
Middle-aged firm received two rounds of fund in 2004 & 2009
Waiting to deploy fund it received in 2009
Already worked with other companies in India
Facing many competitors
VC like Sequoia Capital, Battery Ventures, Good Energies etc. in energy and clean-tech field looking aggressively for
similar opportunity hence time is less for GP to react
Investment in Green-tech is increasing sharply from $6.1 billion (2007) to $8.4 billion (2008)
Considered Experienced player, as of 2009, it has two companies in portfolio and one successful exit
HPS Deal
Viewing it as huge opportunity and perfect fit
Simon Pasrernik (Partner) want to dig deeply into key financial assumption before taking deal to investment
committee
GP Examining capability, operational structure, management team to meet financial projections
GP is one of Dozen funds who are showing interest in HPS, so HPS has some bargaining power
 Alternative revenue 1 - Rice Hush Ash
RHA (Rice Husk Ash)
waste product of husk gasification process
It has high level of Silica and carbon
Replacement of coal in stoves
Can be used in fertilizer and other industries
In 2009, HPS tested its RHA technology and made Incense
Sticks for commercial purpose
Sell RHA to concrete manufactures for $100 - $600 per ton
Material replacement in cement production at $400 per ton and
due to heavy demand of cement RHA represent an opportunity of
almost $2 billion Indian market opportunity per year
 Alternative revenue 2 - Certified Emission Reduction
Carbon Offset and Certified Emission Reduction (CER)
HPS production process is Carbon negative
1. Plant released less carbon during operation if they dont operate at all
2. Maintaining carbon neutrality - Rice husk took carbon out of atmosphere as it grew and release back to
environment after husk is combusted making it carbon neutral, while coal, oil are carbon positive as it only
release carbon
3. Replacing diesel and kerosene from households further improves carbon footprint of company
Carbon Credit HPS prevent husk rotting in field and creating Methane gas which is 21 times
more harmful than CO2 hence it is having negative carbon footprint
Can sell carbon offset in Carbon-trading markets
HPS earned Gold Standard CDM (Clean Development Mechanism) certification because it
saved carbon emission and served bottom of the pyramid which allows to sell its CER at
premium
100-125 CER per power plant @ $8- $11 per CER turns to $1350
HPS reduced CO2 emission by 120 tons per plant per year creating 100-125 CER per power
plant @ $8- $11 per CER which earned non-taxable $1350 in terms of carbon credit called
Certified Emission Reduction (CERs) per plant
Market for CER $126 billion (2008), $63 billion (2007) is increasing hence with more plants
company will add more revenue