Lockheed: 10 CleanTech Plays You Maybe Missed

If you have a copy of the briefing Lockheed's Jim Kohlhaas delivered at the Bloomberg conference last month, shoot me a copy.

How Will Sulgraves Partners' Mike Long Help EEStor?

Anyone who has followed EEStor over the years has probably scratched their head once or twice concerning their communication planning. The press releases in the past haven't been written for the average Joe on the street. Dick's a smart engineering type who likes to talk a million miles an hour because he's genuinely excited but no one would mistake him for a media relations or media communications expert. You might even look at all of it and conclude that EEStor just does not care how their communications come off where, under this view, if they simply produce what they claim, all of that will handle itself.

But, will it?

Everyone knows EEStor has assembled one hell of a team (Kleiner Perkins?, Lockheed, Mike Long) but it's not clear from a communications standpoint that they are leveraging these veterans of public facing statements.

But now we're coming to a crucial part of the story. There's nothing left to announce by EEStor accept for the goods (powder purity in the parts per bazillion is OUT):

energy density
UL certification
production capabilities
actual orders
facilities
new partnerships
etc etc.

Will it happen all at once? Is there an ordering to how it will come off? What should their message be and how should they deliver it?

To answer these questions, you have to have an intimate understanding of what EEStor's short term goals are--which I do not. They've stated their long term goals and no one is confused about that. But how do they get from where they are now to wherever an announcement containing all or elements of the above list can take them?

Well, as far as I am concerned, if your name is Mike Long and you are a partner at Sulgraves Partners LLC, then IT IS GAME TIME. Several weeks ago, Mike told me Dick Weir was the spokesman for the company and that he was comfortable with that. But, in the event EEStor goes into full reveal mode, many are going to be watching how the communications come out and whatever happens, it's going to reflect directly on Mike Long as an EEStor board member. That's my position.

Sulgraves Partners bills itself as a Strategic Communications firm "tested by experience on the front lines of the modern 24-hour news cycle" according to their website. If that is true and if EEStor is about to deliver a technologically revolutionary product, then my take on it is that Sulgrave Partners, specifically, Mike Long will need to roll up his sleeves. A colossal media failure --even with this company many have never heard of---will impact Long's credibility as a partner of a firm of that type. (No Pressure, Mike, but that's why you get the big bucks, fella).

My hope is that EEStor and Mike Long are discussing past case studies of technology companies coming out of stealth. Bloom Energy had a pretty good reveal from a media exposure point of view. But that model may not be what EEStor wants. They certainly don't seem to be at the same stage Bloom is at--of course, they started later than Bloom according to Dick Weir.
From the sidelines, you almost want to say, "hey, try to stay away from outcomes like those experienced by Dean Kamen's Segway or Transmeta both of which were overhyped and under-delivered. " But is analysis of this type occurring at EEStor? Only time will tell.

My hope for EEStor is that it modestly announces its accomplishments which will establish finally true credibility with undoubtable 3rd party validation. I hope the message includes product specs, production expansion metrics/timeframes and new agreements. Nanosolar invited the media into it's factory. I don't think EEStor needs to do this but it probably wouldn't hurt to allow at least one member of the media to obtain a tour (maybe without a camera) and be allowed to write about the experience (similar to some of what the Canadian financial firms were allowed to do last year.) BTW, I'm not really angling to be that media source. I think I'd actually prefer it come from elsewhere--a legitimate media outlet for example.

In any case, what I do want the opportunity to participate in though is what will hopefully be a limited number of media interviews with Dick Weir to gain some insights on what it's been like to be cooped up in that tiny building in Cedar Park for the past 5 yrs trying to achieve something significant and meaningful.

So, in closing, if you're me, then EEStor Inc. and Sulgrave Partners are tied at the hip currently.

But what about Kleiner Perkins, won't their credibility be affected by the manner of the reveal? Don't they or shouldnt they have skin in the game? My take is that I actually hope they are not involved given a lot of the negative attention they've received with their investment companies obtaining all of this federal spending in what should be free markets. Why would EEStor want to be associated with financing Kleiner's risky ventures with public money that would be better spent on overall market segments via tax credits than betting on individual firms. I predict that these federally funded future failures (FFFF) will turn into it's own negative media storm. Take Fisker for example: do they have an agreement with EEStor or Zenn? Don't count on it. Why would they--because of all the fine work Kleiner has done for EEStor? (I don't see any supporting evidence of this). Someone correct me if I'm missing something.

10 Things You Can Do To Prepare Yourself for EEStor's Reveal

The typical complaints of NNNN are circulating again over at TheEEStory.com. While everyone is focused on when we might learn something new from EEStor, it seems more useful to me at this point to take a few moments to consider possible preparations you can make now to maximize your enjoyment of the reveal. These recommendations are not guaranteed to take you directly to happiness but they may just come in handy.

1) Discuss the possibility of strange behavior with your family and friends

Do yourself a favor and let your family and friends know that at some point in time---you don't know when---perhaps soon--you may just have a few occasional strange outbursts of emotion. Let them know this is in reference to a new type of battery which ordinarily wouldn't yield such behavior but ask them to be patient and allow you to explain. Then just say, "hey, I'm going to need some space to operate here. Please work with me."

2) Set aside some time to revel in the news

Start thinking about giving yourself some time to digest the news. You might want to just plan now to take a couple days off to walk around unshowered, zombie-like with a goofy grin on your face. It's okay too if you allow yourself to have a good stiff drink at 10am if the situation calls for it. Don't fight it. Give yourself advanced permission. Remember, you deserve it as you've dutifully watched the emergence of every new EEStor detail on my websites largely during your working hours.

3) Be ready to travel

Once reality sets in, everyone will want to travel somewhere to gather together and hug everyone else, drink, laugh, snort MUHAHAs, smoke cigars, take pictures with bags on their heads, dance around in a congo line and in general dork out with other EEStor enthusiasts. This could take place any where but Austin is the likely destination for obvious reasons. If you need to set aside some funds to jump on a Southwest flight, start pricing out options to get to Austin. Hotels, campers, tents....you know where you like to crash, so look into it.

4) Visit a medical professional

It's been pretty tense following EEStor. While you think now that a reveal might give you peace, it may also elevate your blood pressure unexpectedly. If you are a tad older or younger, you might want to talk to your doctor about this. Tell them you think good news may be around the corner and that you want to make sure you are healthy as you accommodate the information. Who knows, they may advise you to begin meditating or increasing your cardio.

5) Think about your financial plan

I don't give financial or investing advice. But I do recommend you talk with a professional before you do anything crazy. (see #4) A world with a verified functional EESU is a very different world indeed with a plethora of possible impending changes. For example: some die hard EEStor followers have placed short bets on stocks like A123 Systems. Again, I don't offer advice. I'm merely drawing your attention to the idea of being smart by letting someone else do the thinking for you.

6) Don't go changing

There's probably going to be a very strong temptation for you to consider the EEStor reveal as an opportunity to completely change your life. After all, if energy storage is changing--finally, after 100 yrs of little advancement--then maybe you can change too. Again, be careful here. If you must know, I like you just the way you are insofar as I don't know much about you. That works for me if it works for you. Another approach may be to channel the inspiration for self-improvement into the inspiration for forcing others to improve. After all everyone else needs to change more than you, right? In fact, sit down and pen a book titled, "I'm Going To Make You Self-Improve Whether You Like It Or Not."

7) Don't forget about the blogger

It's true. This whole emotional roller coaster you've been riding for the past two years has been courtesy of moi to some degree (even though I dont make electric cars or batteries). You're probably going to experience some pretty intense feelings towards me. Mostly, gratitude for capturing your interest by documenting this interesting story. Some may struggle with formulating a proper apology. Carefully think through what you want to say to me and how you should say it. If I may, to establish a conceptual boundary for you: there will be no need to send me a note saying, "Je t'aime mon petit poulet." I much prefer donations to Nymbani to thank you's though....as I've always said.

8) Select Music

Musical tastes vary but the concept of a victory song is universal. It may be useful to you to spend some time selecting a series of musical pieces that will allow you to maximize the celebratory mood. After all this will be an emotional event and music allows us to fully experience it. So, go ahead and put on a few tunes and practice possible outcomes in your imagination. Don't overdo it though as you dont want to burn out before the big day.

9) Make safety part of your plan

You've made it this far. Don't take your eye off the ball and fail to consider safety. Most accidents occur when people aren't paying attention. Tell yourself now that it's ok to celebrate but not to discard safe practices.

10) Become an EEStor activist

If they have it and it's cheap, we're going to need to make it known widely. Collect your thoughts on your own personal communication plan--who will you tell & how. Emails, faxes, mailings, banners, etc. There are plenty of ways to communicate. Select what's best for you.


Inna de bag, mon.

Credibility Questions Emerge Over Kleiner Perkins' Involvement with Terralliance

Although it's been pointed out several times previously that not every Kleiner Perkins investment yields a win, many still believe Kleiner Perkins' involvement with EEStor provides credibility. But a new article penned by Adam Lashinksky about a firm formerly known as Terralliance challenges this belief. Lashinsky makes a compelling case that relying on the due diligence of firms like Kleiner Perkins or Goldman Sachs is not without risks.

The whole story is, quite frankly, hugely embarrassing for Kleiner Perkins since it seems to show that if you are good at weaving stories regarding fantastic returns on investment, you may just be able to shake close to $100Mil from Kleiner despite any of the consultants they hire to vet out your claims. Billionaires with slightly above average interest in the likelihood of success with investments with Kleiner should pay close, very close attention.

First of all, things have gone so poorly with Terralliance that they changed their name to TTI Exploration. The old Terralliance website doesn't even redirect to the new one. EEStory followers will also note that the Bio for Kleiner Perkins' appointed CEO, Mike Long no longer mentions EEStor as it did when it was on the former Terralliance website.

The similarities and differences with EEStor are worth noting. TTI's founder, Erlend Olson is depicted as a persuasive dreamer who is better at locating investor money than oil, which is what his technology was claimed to do ( a claim the new website maintains). The same can't exactly be said of Dick Weir who only accepted $3Mil of Kleiner's money but whose claims of grand outcomes is certainly on par with Olson's. (it's worth remembering here John Doerr's much written about and touching story about being inspired to invest in green technology after his daughter asked him what sort of planet she and her children would inherit... in light of the enormously disparate investments in TTI ($93Mil) & EEStor ($3Mil) ). As for other differences, EEStor, unlike TTI, has pursued a path of protecting it's intellectual property with patents. According to the article, TTI's founder not only didn't file any patents, he also must not have written much down which brings us to the climax of an apparent trainwreck.

Seems everyone is suing everyone associated with TTI or Terralliance. Kleiner is trying to sue the founder. Investors are suing other investors. It's all so disturbing that it's now little wonder so many Kleiner firms have sought Federal funding lately. Surely the due diligence of career federal government bureaucrats cannot equal that of competent Venture Capital firms? And if they can, surely any ensuing lawsuits won't be as formidable as those lodged by disgruntled investors.

Is EEStor another Terralliance waiting to happen? I suppose asking KPCB that question is a no-go.

--eestorblog@gmail.com

EEStor's Dick Weir Talking Again: EEStor has 5 Patents Now

A renewable energy blogger I correspond with occasionally shared with me details of his recent interview with Dick Weir taken on Wednesday, March 24th 2010. He had no current plans to publish it because the topics he was mainly inquiring about did not receive comments from Weir.

In the interview, Weir made several comments on a number of other topics however.

1) Weir feels strongly that the release of his audio to the Internet was "a lousy trick" and "probably illegal."

2) EEStor now has 5 patents. (a quick poll of some TheEEStory regulars suggests only 4 are publicly known...speculation is that this might be the grid leveling patent but there's no way to know for sure)

3) After making clear that it was not his place to comment on Bloom Energy (instead recommending people talk to Bloom or Kleiner Perkins), Weir stated that "they put a lot of money into it. I've spent much less time and a fraction of the money" implying a direct comparison of the value of EEStor over Bloom. The blogger taking the interview suggested Weir was saying more about Bloom than he wanted to say and sternly broke off his comments by referring him to Bloom.

4) Weir was adamant that EEStor has never published an official statement of EEStor's development schedule. "People say we're late. We're not late! Zenn put out some things but we didn't authorize those statements." While it's true that EEStor has never published a schedule, it's also true Weir has made statements about timing on multiple occasions to multiple reporters. As to whether EEStor can be praised for rapid development, the only evidence we have on that is public statements made by Ian Clifford. Without knowing where EEStor is in it's development, we can't yet say whether or not it's true.

5) Weir insists EEStor's PR strategy is a no-hype strategy. He feels there are many "rude remarks" about EEStor on the Internet which are probably coming from competitors. He says that "there are knowledgeable people" who say many complementary things about his EEStor work.

6) EEStor's current published certifications of their work were not paid for by EEStor.

In another interview this past Friday, theEEStory.com regular Larry visited EEStor and Weir offered the following comments:

7) on Carl Nelson's illness: he is feeling better.

8) Weir stated he alone was the chief technologist at EEStor but assisted by many competent people.

9) Larry mentioned to Weir that Ian Clifford recently stated that he has no doubts about the viability of EESU now. Weir replied to say that Zenn does not speak for EEStor.

10) Larry also reminded Dick that he has stated the R&D at EEStor was complete to which Weir replied twice, "What?!"

Just a friendly reminder to anyone curious about this: it is my personal recommendation that people not visit EEStor without EEStor's express invitation. It can be perceived as harassment and you might even have the police get involved. That, of course, is entirely EEStor's call.

Zenn's AGM

I was disappointed by the AGM. I think the target should have been:

1) say a few encouraging words about EEStor progress that is tangible yet respects the NDA

2) say a few encouraging words about success marketing Zennergy to the automotive market

I think the market opportunity discussion was not as important as expanding on the facts surrounding marketing it to potential automotive customers. Innocuous facts like, number of meetings, number of repeat meetings, etc seems like it would have been helpful. Interested parties aren't asking for highly secret information---anecdotes of a generic nature would be very helpful but not harmful.

Concerning the alleged harassment case: it does not appear that the correct facts of the case were actually brought to light in regards to the human rights commission. Keep in mind Zenn that the best way to put something behind you is to not create new opportunities for additional questions.

In my unhumble opinion, the single biggest challenge for Zenn at this point in time is to prove that the burn rate is actually accomplishing something tangible and concrete when placed against the backdrop of the fact that no one knows when EEStor might announce something. Also, there seems to be no sense of if the wait for EEStor might be 30 or 90 or 240 days.

So, to prove the burn rate makes sense, someone needs to elaborate on the "outsourcing" that is currently occurring. That is a very mysterious destination for investor funding at the present time and I'm sure if a bit of information could come out about it, it would be well received.

Finally, I think the missed opportunity to provide an encouraging message at the AGM is a direct function of the distraction caused by mishandling the harassment case. This needs to be placed in the rearview mirror as a much accelerated pace. Had the AGM gone over better with me, maybe it would have convinced me it is NOT a distraction.

Note to Rick McGraw: hope you're feeling better today. Shoot me a copy of your Doctor's permission slip. Thank you.

Gigya Reading My Email?

Gmail informed me today that someone from this IP address attempted to access my email:

74.120.148.102

The registry shows the IP belongs to Gigya Inc. From their website, we learn this:

Who We Are

Founded in 2006 by a team of Israeli technologists, we are experts in how people interact on the web, both with content and each other. We have focused since our inception on simplifying the connection process between our clients’ websites and the social networks and on enhancing the resulting connected experience at every level to grow your online business.

Ok, Gigya, sounds great but let's not incorporate my email into your system, ok? Here is the screenshot from Gmail:

Let's see, should I tweet about this now and link to it from Facebook? :-)

Also, I sent a note on this to abuse@gigya but if anyone wants to work with me on this from Gigya, here is my email address: eestorblog@gmail.com I'm happy to work with you and google to resolve this.

St. Patrick Says EEStor is Real

Quite unexpectedly, I got a call from St. Patrick today. He wanted to say a few words about EESU. Go ahead, Pat.

"The EESU packs energy so astronomical

In space that is very economical,

But the new ones I've seen

So hard to believe,

That baghead is correct... if not comical."

--St. Patrick March 17, 2010

Thank you, St. Patrick. That'll keep all the snakes slithering along.

Zenn Motor Company New Executive Short List

In light of the prior story I posted over the weekend concerning alleged misbehavior at Zenn Motor Company, I've been bombarded with questions & concerns expressed by the sizable portion of EEStory followers who are also Zenn investors. Out of the multitude of interests expressed therein, I've selected one to dissect in this article:

------------------------------------

Dear EEStory Blogger B,

Theoretically, suppose the handling of this incident at Zenn leads to the departure of Brian Cott from Zenn, who would you recommend fill his role?

Thanks,

---EEStory Regular---

-------------------------------------

Dear EEStory Regular,

This is a good question which focuses on Zenn's future rather than it's past and if considered carefully might turn some lemons into lemonade. So, to whom should we trust the 11% EEStor fortune's immediate future? ( Before I go too far, please let me note that my occasional jovial take on events should in no way be interpreted as trivializing any trauma experienced by the alleged victims. I mean no disrespect. )

First things first, let's sketch some of the attributes of what we're looking for here. Any new executives at Zenn must pass the Dick Weir DNA test. That is to say, it is a good idea to examine the genes of all candidates to ensure that at least some distant 4th cousin of Dick Weir is placed into the open slot. Secondly, if this person had, for example, saved Dick Weir's life in the war or introduced him to Betty or funded some of Dick's early projects, you're going to have a tight relationship there. You want the new executive to be bros with Dick & Tom. Picture Fist Bumps, ok?

Top picks in this category would be Dell's Greg Weir who is Tom Weir's twin brother. Another option would be Dick Jr. Can you imagine the conference calls if Dick Jr or Greg were up in Toronto?

"Dad, will you please give me a battery, Dad? Dad, please. Please, Dad. Dad, the battery, please. Please Dad. Dad I need the battery. Mom, will you tell Dad to get me a battery? It's NOT FAIR!! Tom's got a battery, why don't I get one! I need the battery Dad!"

Ok, you're right, having a family dynasty turns everyone else into outsiders. What you want is someone with a relationship but also some dispassionate appreciation for the bottom line. Someone who is going to take his/her cue directly from the numbers. To that end, perhaps Alan Topfer, Mort's son would be a good candidate. He already manages portions of Mort's wealth and the Weir's know him from their days at Dell.

You think someone with closer ties to Kleiner Perkins might help Zenn, after all, my partner's partner is the partner of my partner, right? ....someone with all the Kleiner Perkins connections to power, particularly political power? Well, if you're looking for someone who has Kleiner's exact vision of success & who is almost robotic in carrying out the will of John Doerr, you're going to have to put forward President Barak Obama who has pretty much rubber stamped anything Kleiner Perkins advances as slightly more than a half-baked idea. And YES, you know that I am very biased on this point in believing that practically everything President Obama has supported with regard to renewable energy is worth far far less than what he could achieve as one of the leaders Zenn Motor Company's executive team. Crazy talk, sure. That's what they all say. Raving lunatic, that's me!

Ok, if we're looking for something more level headed, let's point out that any new Zenn executive really needs to have--in additional to Weir genes--deep ties into the automotive OEM and Tier One contacts along with experience with Mergers and Acquisitions. That brings us to Senator Carl Levin who is rumored to be very close to retiring or should be (oops, did I let that out of the bag?). Who else besides Levin knows the ins & outs of the automotive industry without actually being in it, except for that minor issue of owning General Motors (M&A. Check.)? Additionally, we know Levin is excited about the prospects of EEStor because Lockheed Martin told him he should be excited about it....which lead to smiles all around. Or how about Michigan Governor, Jennifer Granholm? (her political future is not promising given the snubs her team issues bloggers like me for a few innocent EEStor discussion topics). OK, Ok, Wrong side of the aisle, but good idea? True but I don't think Representative John Carter TX-R has the proper ties into the automotive industry....even if he is convinced EEStor will transform it.

Lockheed Martin connection? You have to put George Karayannis in the top position if you want a Lockheed connection. Who else has stated unequivocally that "absolutely they will support EEStor" if utility customers want it? That's the sort of conviction we need even if one isn't entirely familiar with EEStor or whether or not it works as they say. Second place goes to Robert J. Stevens, current Lockheed CEO, who, although he doesn't appear to have any strong ties to the automotive industry has strong ties to just about everything else which might lead to some creative thinking about how to maximize Zenn value. For example, picture utility grade storage units with 2 doors and 4 wheels--technically a vehicle but one that's permanently parked at a power plant to level production. These could be stacked and racked like BattPack (say that 3 times fast). This would be consistent with Zenn's license and yet allow Zenn to move into spaces maybe no one was anticipating. That's stealth baby, and Stevens can make that happen. Oh, one more, picture wind mills bolted to the car formerly known as CityZenn. At weighing time, it falls under the license limit, but in use, it makes wind mills "real." (Third place goes to Will Shores, the current manager of the EEStor relationship for Lockheed).

Maybe I'm over thinking all of this. Maybe what's needed isn't so much business acumen or connections but proximity. In that vein, I'd put forward the Pastor of Lakeline Church, conveniently located at 715 Discovery Blvd in Cedar Park, TX just a stone's throw away from EEStor. I think a prayerful partner who can connect video surveillance technologies to their roof for constant shareholder updates would be a great combination in a new Zenn executive.

(Incidently, I made use of the online prayer request form on Lakeline's website. Yes, my prayer request was specifically for the rapid adoption of EEStor technology and the well being of the Weirs. I'm not kidding. You should do the same).

Ok, you want a serious candidate? No kidding around? I'll put my money on any one of William Clay Ford Jr's four children. The oldest one may have recently graduated from Princeton and the youngest is probably about fifteen years old. See that? I think if those kids can run a website and log into conference calls, they can run Zenn. Stop, I'm kidding again.

What this article proves is I have no idea--not even a clue-- who should be the new executive at Zenn. All I know is the future is bright. EEStor and Zenn are bigger than any one person and let's all rally around the future and not stay stuck in a quagmire when we've got so much to be looking forward to and working towards.

Ok, I do have one serious request here. I recommend the Zenn Board of Directors bring forward a female candidate. Give me one good reason why not. (by the way, the women pictured above are all successful executives at Gucci.) Global business experience? Check.

Thank you.

Zenn Motor Company BoD Botches Harrassment Incident?

According to multiple sources including a Zenn Motor Company institutional investor (who all spoke on the condition of anonymity), a sexual harassment scandal may have been mishandled by Zenn's executive team and board of directors. Apparently, an internal investigation has determined that a senior Zenn executive violated sexual harrassment rules with a junior employee. The executive was disciplined but not terminated. Instead, a senior officer who voiced concern to the board of directors that the incident and alleged victim's well being were being mishandled was later dismissed from his job. Additionally, an alleged witness to one of the incidents was also dismissed. The sequence of events, whether related or not, will likely result in questions leading up to the Annual General Meeting on March 24, 2010.

The anonymous reports on the incident matched details dropped by others in various internet message boards in recent days. Zenn CEO, Ian Clifford offered no comment.

Out of respect for all parties, I have left out the names of those involved.

When asked if he felt the incident will be very damaging to Zenn, the institutional investor said it all depends on whether Zenn's board determines to put it behind them quickly or let it drag out (with the standard caveat regarding Zenn's complete dependency on EEStor).