Nth Power and Fraunhofer Center for Sustainable Energy Systems Release Report on Innovating for Better Buildings

Nth Power and Fraunhofer Center for Sustainable Energy Systems Release Report
on Innovating for Better Buildings
Affirms that Market Meltdown is Opportunity in Disguise

SAN FRANCISCO, Nov. 2 /PRNewswire/ --Nth Power, LLC, the veteran cleantech
venture capital firm, and the Fraunhofer Center for Sustainable Energy Systems
(CSE) released a detailed report on the massive market opportunities for
innovation within the US building construction industry. The detailed report
gives a comprehensive description of the market dynamics creating the
opportunities and explains the contrarian view that the current residential
and commercial market meltdowns are a positive 'springboard for innovation.'
The report also includes a guide for entrepreneurs interested in pursuing
these large, yet challenging opportunities, as well as an overview of some
exciting emerging technologies. The white paper is freely available on both
the Nth Power and Fraunhofer CSE websites.

"'Innovating for Better Buildings' represents an integrated look at the
building technology space from both a practical investor's point of view and
an applied technological perspective. I think the result is a thoughtful
assessment of the technologies and how they can impact new building
construction today, making a convincing, market-driven case for deploying new
building technology solutions," said Nolan Browne, Managing Director of the
CSE.

Nth Power and Fraunhofer believe that today there is a 'perfect storm' of
forces within the US building construction industry leading to a revolutionary
shift in attitude towards innovation. These forces are encouraging more
stakeholder collaboration, better technology integration, and improved
construction approaches that will enable cost effective, high-performance
building technologies to be deployed on a massive scale. The authors believe
that the recent market downturn is accelerating these changes. As construction
slows down, those involved within the construction process have more time to
respond to the growing demand for better performing buildings by focusing on
better practices and technologies. "For the first time in the industry's
history, stakeholders are differentiating themselves by working more
collaboratively to better embrace innovation," said Brian Walsh, co-author and
Senior Associate at Nth Power.

"We have been investing in what we call Better Buildings for many years and
feel that the market dynamics are very compelling from a venture capital
perspective," said Bryant Tong, Managing Director of Nth Power. "Even though
the timing is good, there still can be many difficulties in the
commercialization and disruption process, given the complexity of the
industry's decision making process. We felt a need to share our views,
filters and experiences as a guide for entrepreneurs," said Tong.

The report provides a historical perspective of the industry's broken
innovation process that has consistently produced buildings that are severe
energy wasters. As a consequence, today's US residential and commercial
buildings are responsible for more greenhouse gas emissions than every country
except for China and the US itself. The good news is that much of this waste
can be eliminated with readily available technologies and best practices. "The
industry's newfound appetite for high-performance buildings together with the
wide portfolio of emerging technologies makes this an exciting time for
builders and entrepreneurs," said Bryan Urban, co-author and Project Manager
at the Fraunhofer CSE.

Underperforming or poorly integrated subsystems are a major source of
inefficiency in buildings - if all but one system is efficient, a building can
still perform terribly. Moving away from a component view to a whole-systems
view is critical. Co-author Sebastian Herkel, of the German-based Fraunhofer
Institute for Solar Energy Systems, brings perspectives from deep experience
demonstrating highly integrated, innovative technology in real buildings - a
key step toward developing acceptance in this risk-averse industry.

Christine Ervin, the first president & CEO of the U.S. Green Building Council
and former U.S. Assistant Secretary of Energy, had this to say: "If innovation
is the single most important ingredient for accelerating a vibrant sustainable
economy -- and it is -- here is the analysis for unlocking what innovation
means for the U.S. building industry. Nth Power and the Fraunhofer Institute
provide a first-of-its-kind, venture capital perspective on how to capitalize
on the sweep of 'better building' opportunities looming right here, right
now."

Major construction companies are now recognizing and embracing these changes.
Gino J. Gemignani, Jr., Sr. Vice President of the Whiting-Turner Contracting
Company says: "'Innovating for Better Buildings' is an excellent report on the
status of the U.S. Building Industry with a focus on the dramatic and exciting
changes to come. The paper is an informative and comprehensive review of the
building industry in the United States with a compelling argument for radical
changes in the design, construction, and maintenance of American buildings. If
you are part of that industry, this white paper is a 'must read!'"

The authors hope that this report stimulates discussion and furthers
innovation activities within the industry.

About Nth Power, LLC
Nth Power, LLC (www.nthpower.com) is a venture capital firm based in San
Francisco and is the first and most experienced venture capital firm funding
promising startup companies in the Cleantech space. With $420 million under
management in four funds and an investment record that begins in 1997, Nth
Power is widely known and well regarded as the driving force behind many of
the most successful Cleantech companies. The firm's leading history in
Cleantech-related venture capital is the result of a deep network of
entrepreneurs, universities and research institutions, unmatched corporate
relationships and the backing of institutional capital. Nth Power has a
concerted effort to be the leading investor within Better Buildings. For more
information, contact Bryant Tong, Managing Director, and Brian Walsh, Senior
Associate, at betterbuildings@nthpower.com.

About Fraunhofer Center for Sustainable Energy Systems
Fraunhofer Center for Sustainable Energy Systems (CSE) (cse.fraunhofer.org) is
one of six Fraunhofer USA research centers. Fraunhofer USA is a wholly-owned
subsidiary of Fraunhofer-Gesellschaft which has over 80 research units at more
than 60 different locations throughout Germany. CSE is based in Cambridge,
Massachusetts serving the sustainable energy industry in the areas of building
efficiency, PV modules, and energy device prototyping. CSE is focused on
technology development, materials testing, design, and demonstration. CSE's
parent institute, the Fraunhofer Institute for Solar Energy Systems (ISE) in
Freiburg, Germany has over 25 years of experience in efficient building
concepts, design, simulation, solar cooling, advanced thermal materials,
daylighting, advanced HVAC systems, and building monitoring systems. For more
information, contact betterbuildings@fraunhofer.org.

For media inquires please contact:

Brian Walsh Bryan Urban
Senior Associate Project Manager
Nth Power, LLC Fraunhofer CSE
Tel: 415 983-9983 Tel: 617 955-5520
Email: bwalsh@nthpower.com Email: burban@fraunhofer.org

SOURCE Fraunhofer Center for Sustainable Energy Systems

Brian Walsh, Senior Associate of Nth Power, LLC, +1-415 983-9983,
bwalsh@nthpower.com; or Bryan Urban, Project Manager of Fraunhofer CSE, +1-617
955-5520 burban@fraunhofer.org