Greentech Media

A: One of the reasons is PowerGenix is going to be public within a couple of years, and the public market values [alternative-vehicle and cleantech] companies in a much different way than they do companies that just focus on industrial spaces. So for the long-term value to shareholders and the market cap we can build into this company, I think it’s very important that we make some sort of substantive inroads in the segment. It may not help [profit and loss] in the short run, but it sure as hell helps the balance sheet in the longer run.

Also, the market numbers [forecast] a couple-billion-dollar market in just a few years, so the size of the market is interesting, and in three to four years we can have a revenue stream from license fees in the millions of dollars, and most of that drops to the bottom line. The technology has been developed in prior periods, so the effect that license fees have on your [profit and loss] is pretty substantial and a very good business.

Q: How much has PowerGenix spent on developing this technology?

A: About $31 million has been invested in PowerGenix, and you could argue that just about all of that money has made possible the technology platform we will be using for HEVs. [Because it’s based on our core technology platform], it’s hard to say how much we’ve spent on automotive.

Q: When do you hope to close licensing deals for the D-Cell and to go public?

A: I think we could have some deals done within a year. The IPO will take longer; we’re probably looking at 2010. And the market right now is incredible.

Q: How do you think the A123Systems IPO (see AutoblogGreen, AltEnergy Stocks and VentureBeat posts) will impact PowerGenix and its IPO plans?

A: A123, we believe, will have a very successful offering and that will serve as a kind of deal benchmark for us. It’s very likely that A123 is going to see that the market is going to place a somewhat irrational value of it because of the general buoyancy of the cleantech space. I don’t think those macros are going to change, I think even if we come out 18 to 20 months behind A123. It’s going to have the effect of attracting a lot of attention and probably money into the energy-storage space.