CASE STUDY 2 (25 MARKS) Carbon Clean Solutions- Embedding Environmental and Social Considerations in Strategy Anirudha Sharma, 26, as CEO and Prateek Bumb, 27, as co-founder started the Carbon Clean Solutions' (CCS) in Mumbai intending to help power plants and large scale CO2 emitters to combat climate change. The two IIT Kharagpur graduates developed low-cost technology to capture CO2, as a college project in 2008. This technology would enable the firm to sell the captured carbon as raw material for making dry ice, fizzy drinks, chemicals for fire extinguishers, and for injecting into oil wells and gas fields to enhance recovery. The global carbon capture and storage market is worth USD 27 billion and is expected to grow to 229 billion in two decades (IEA, 2012). When they presented the idea at a clean technology forum at San Francisco, Dr. Martin Haemmig, a Stanford University researcher, noticed the potential, and agreed to be their mentor and investor. He introduced the young graduates to industries such as power, oil and gas, to identify the gaps in the carbon capture and storage market. They developed a prototype on return to India, raised a seed capital of 25 lakhs and registered the company in October 2009. On demonstrating the technology at various IITs and the Institute of Chemical Technology, they were able to raise funds from global angel investors to the tune of 5 crores. CCS then set up offices in the US and UK. Recently. CCS got a '33-crore grant from the UK Department of Energy and climate change. CCS also bagged its first customer. The new technology costs less than USD 30 to capture each ton of CO2 compared with USD 60 for traditional solvents. It also uses 30% lower energy compared to conventional technology of carbon capture. The company is hopeful of getting eight global clients within a year and are in discussion with big firms for this. The promoters have patented the idea, priced it low, and moved out the idea to the open by presenting the same at business plan competitions organized across India by IITs. This moving out the idea to open phase brought the innovator or entrepreneur team to San Francisco and UK, and won them the mentor and the funds. They won the global carbon capture and storage innovation competition in the UK and intend to use the grant for large-scale demonstrtion of the technology at power plants. The promoters have progressed in a growth trajectory by getting funds as well as allies. Palani Swamy Rajan, managing partner at US-based CTW Venture Partners, Tirthankar Mitra, managing director of Belgium-based chemical company's Indian subsidiary, Solvay Vishnu Barium, Dr. Martin, and many others were extremely helpful in showing the way to the entrepreneurs. QUESTIONS 1. Identify the elements of the growth strategy of a green technology firm. 2. In your opinion, do B2B businesses such as CCS or B2C businesses that manufacture environment-friendly consumer products make greater contribution to the sustainable development? 3. Debate whether innovative businesses such as 'carbon capture and storage by using technology or natural way of carbon capture and storage by tree planting is advisable in a warming plant