The Interview

recovery technology with roots in Germany and the UK. The company provides cleaning, recovery and decontamination solutions related to oil and oil-based chemicals. What makes OTI so exciting is that its products are bio-based, non- toxic, biodegradable and easy to apply. OTI’s cleaning products are used for tanks, ships and industrial machinery. Considerable traction has been achieved with several major players in the shipping and storage industry. The firm’s recovery products are already used for land remediation and are currently tested by several American, Canadian and Russian oil companies. They can be applied to the processing and recovery of oil from conventional and unconventional deposits, particularly heavy oil and oil sands.

We believe that despite the fast development of renewables, oil will continue to be an important source of energy and a raw material for many products. Rising oil demand will to a large extent be satisfied by unconventional oil extraction. At the same time, the tightening of environmental regulations worldwide means that the polluting oil industry will have to become cleaner. The products and applications developed by OTI address this need.

Does the fund take bets on electric mobility?

Yes, our second investment was in The Mobility House (TMH), a leading European player in the market for electric mobility services. The firm is most active in the DACH-countries and in Scandinavia, and is now “rolling out” in other European countries. Customers are primarily car manufacturers such as BMW, Nissan, Renault, Tesla and Toyota, but also other corporate clients and private households. Products offered to users of plug-in vehicles are home-charging equipment (ElectroDrive),

access to public charging, renewable energy, etc. TMH has developed

services to monetize the storage capacity of the batteries of plug-in vehicles, making use of the fact that these are parked 90% of the time. Such services include battery and energy management. Today, half of the world’s population lives in cities. The UN projects this share to increase to 70% by 2050. We believe that electric vehicles have a role to play in the smarter, more sustainable cities of the future. The market for plug-in vehicles is shaping up now, with opportunities for early movers. We believe it will take off for good in 2014- 15. Personally, I am also a driver of an electric car.

One of the main issues in emerging markets is access to clean water - are you looking at this opportunity?

Indeed, the fund has invested in the Aquarion Water Group (Aquarion) last summer. The firm is a provider of advanced water systems and solutions for the oil industry, the power sector and other process industries. The company is oriented towards new differentiating technologies that larger players are not able to offer. The firm is active in the Middle East, North-Africa, Nigeria, Latin America and the former Soviet Union. It has more than doubled sales and EBITDA in 2013. We are convinced that Aquarion will become a leading water technology and solution company focused on the oil industry and the power sector. It applies a buy-and-build strategy. The management team has many years of experience in the sector and has successfully executed a similar strategy in the past.

Primekss recently became the fourth consecutive investment for Green Gateway Fund; what more can you tell us about the investment?

Just before Christmas, GGF completed an investment in Primekss, an advanced concrete

specialist. The company’s headline product is PrimeComposite, a method for making concrete elements using proprietary technology based on a combination of composite cement, steel fibres and other additives. It requires 40% less material than conventional producers. This method is primarily used to produce concrete floors for industrial, logistical buildings, shopping malls and DIY- stores. IKEA, Volvo, Lidl and ProLogis are among the blue chip users of Primekss’ floors. These floors are practically crack-free and joint-free. Primekss has its own operations in the Baltics and Scandinavia.

We aim to roll out the company globally under a licensing model. It already has licensees in the Netherlands, Belarus, Russia and South Africa and has established a joint venture in the US. We are very excited about the company’s prospects, especially because several of the users of its floors have invited Primekss to follow them to new markets. The challenge is to keep management focused and not let them shoot for too many opportunities at the same time.

So how do you see the future of the fund?

The portfolio of the GGF is a mix of more mature and high-potential, rapidly growing companies. All have strong management teams. We are currently looking at investment opportunities in advanced insulation, smart grid, industrial energy efficiency and waste-to-value. At the same time we expect to successfully complete the fund raising in the coming six months. The aim is to increase the committed capital from today’s €140 million to €250 million.

Contact: www.wermutham.com

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