Role no 1209
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Our client is a start-up whose vision is to develop and supply innovative low cost pico hydroelectric units to those who have no or poor access to electricity or those demanding better energy recovery services in both developing and developed markets.
They have spent £400k developing a hydroelectric generating solution which works with very low water heads (so called “low head <3m”). Our client’s game-changing device is set to deliver a meaningful amount of electricity, uniquely, at the lower end of water heads. This can be installed without traditional ground works eliminating huge cost, environmental impact, and time delays. Capable of operating in small rivers and channels, including unused ‘dirty’ river step sites, downstream of existing industrial complexes/outlets or even ‘in-pipe’. Several units can be combined to maximise output. Demand is currently forecast at circa 15m units globally with strong annual growth.
When combined with low-cost, ‘local’ manufacturing and materials, and unlike wind and solar, capable of producing 24/7, the Levelized Cost of Electricity (LCOE) will be an incredible (circa) 0.20 $/kwh or lower in the entry sector. This is highly competitive with conventional solar and wind systems with battery backup, and well-below the LCOE of diesel generators in the Sub-Saharan Africa beachhead market. It will generate a CO2/year/unit saving of 40 tons compared to diesel and petrol generators (LCOE at $0.60/kWh off-grid). The first installations will provide clear economic and placement advantages at off-grid sites.
There is massive and growing interest in this sector for economic, humanitarian, and climatic reasons. Decentralised hydro electric energy at source has the potential to contribute greatly to global equality, whilst reducing greenhouse gas emissions through e.g the removal of millions of diesel generators.
Our client is currently pre-revenue and looking to field test a full system in UK and Uganda across 2024-2025 ahead of first sales during 2026-2027. They are seeking 3 Investing NEDs or Advisors to join their Board alongside their CEO, CTO and CFO with the following areas of expertise, or a combination, or similar:
Hydro/Engineering Industry NED:
- Experienced in hydro operations, particularly micro or pico.
- Knowledge of procurement and supply chains in the UK and overseas.
- Knowledge and experience of building technical collaborations.
- Knowledge and experience of industrial design and costing processes.
- Experience in formulating manufacturing and innovation strategies and associated Intellectual Property protection.
Financial NED:
- With experience of commercial negotiations and business models.
- Knowledge of relevant legal issues.
- Fundraising experience for high growth companies.
- A strong network to support future public and private fundraising.
Operations NED:
- Experienced in African ‘energy’ field operations.
- Network of private and political African contacts.
- Track record of business growth.
- Knowledge of scaling strategies for start-ups.
The incoming Non-Executive Directors are encouraged to become shareholders with an initial investment of £50k to align their interests with that of the existing Board Members who are shareholders. New investment may well be used to “match fund” for grant applications planned in the near future. The company is valued at £2.5m, with any new investment expected to qualify for EIS tax relief and, on signing an NDA, a copy of the Pitch Deck/BP will be passed to interested candidates who meet the criteria.
It is expected that the role will require approximately 2 or 3 days per month – potentially more in the early stages – and all candidates should have business strategy/growth experience and/or early-stage business or business division experience.
Market & Opportunity:
- Our client is focused on ultimately providing >10,000 low head, low-cost turbines per annum to several niche sectors including off-grid Rural Africa (including mini-grids), ‘in-pipe’ Water Companies, Other Minigrids Worldwide, Off grid Mobile/Mining Camps, Off grid Schools/Hospitals, Off Grid Domestic, On Grid Mill Sites, On Grid Factory Discharge, On Grid Domestic, Etc.
- It is estimated the global market for pico hydro devices under 20kW across all segments as worth $225bn (15m devices) with a Serviceable Available Market for Standalone or Mini-grid hydro devices in the beachhead Sub Saharan Africa at $900m (60k devices).
- Market penetration logic is to achieve a market leading share in the unexploited beachhead by offering more affordable, 24/7 baseload 'productive energy' access for poorer, rural communities, allowing premium brand building ahead of entering other sectors with device variants.
- Our client has undertaken extensive field engagement and has current partners in Uganda, Malawi, and Kenya, as well as an initial supply chain in the UK and ongoing development work with two UK Universities.
- £400k has been spent mitigating technical risk on proof of concept, virtual simulation, designing and testing the core components physically to real power curves and compiling a whole system design with 2 patents obtained so far with clear potential for further ones in the future.
- In summary, our client believes more than half of the world’s economically viable hydropower is untapped even though it is THE biggest contributor to renewable energy provision. Very low head hydro is even more unexploited with conventional hydro devices unable to provide effective ROIs in sites less than 3m ‘head’ in the entry market segment.
Timelines:
- 2024 – Commence African full system testing for ‘variant 1’ at a pre-selected factory site in Uganda in April or as soon as possible thereafter.
- 2024-26 – Continue development of ‘variant 2’.
- 2025-26 – Complete market ready device for ‘variant 1’ and field trial at showcase sites in Uganda, Malawi, and Kenya, plus gain certification for UK/EU markets.
- 2025-26 – Sign up further territorial delivery partners in the beachhead.
- 2026-27 – First sales of ‘variant 1’ in Sub-Saharan Africa followed quickly by first sales in UK/EU.
- 2026-27 – Undertake full system test for ‘variant 2’ at UK water utility site.
- 2028 – First sales of ‘variant 2’ in European water industry.
Closing date for applications: Monday, 8th April 2024
