December 7, 2023 • 24 mins
This episode is a rebroadcast from my 2nd podcast: STTTREAM. Join us as we delve into the Inflation Reduction Act and its impact on clean tech startups. Our guests, John Gillie, founder of Green Island EV and Franz Hochstrasser, will provide insights and analysis on the $370 billion in investments aimed at lowering energy costs, accelerating private investment in clean energy solutions, and creating new economic opportunities. This episode is a must-watch for anyone interested in the future of clean tech and the role of the Inflation Reduction Act in shaping it. Don't miss out on this eye-opening and informative discussion.
Chapters0:00 - Unpacking the Inflation Reduction Act
1:23 - Raise Green Intro
2:20 - Green Island EV Intro
4:18 - Last year and a half of legislation
6:10 - IRA as a catalyst
7:18 - R&D and startups
8:53 - Public investment market
10:53 - Correction in EV market
12:16 - Deployment of EVs
13:28 - Battle for Jobs
14:27 - Better jobs in climatetech
15:18 - Backwards Wyoming
16:18 - It makes fiscal sense
17:20 - Grid
18:23 - Charging stations goal
19:46 - Check out Raisegreen.com
20:13 - Invest in climate solutions: Green Island EV
Check out Raise Green’s website:
Check out my next recommended episode with DC Palter that I mentioned at the end of the show:
YouTube: https://youtu.be/XqWopHVcLKU
or
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:19):
I hope you enjoy it.
I'll be right back at the end of the episode to close everything out.
.666666667But I hope you really enjoyed this episode episode with John GillIe from Green Island EV and Franz Hochstrasser from Raise Green. 7 00:01:09,321.156462585 --> 00:01:15,475.349344529 How is the Inflation Reduction Act going to impact climb tech startups? Prepared to be stunned by the revelations. 8 00:01:15,485.349344529 --> 00:01:28,558.379292446 In this episode, as we delve into the facts behind this new legislation and its effects on the industry, we are sitting down with my guests, John Gillie, founder of Green Island EV and Franz Hochstrasser. 9 00:01:28,893.671913974 --> 00:01:37,913.671913974 CEO of Raise Green to discuss the intricacies of the Inflation Reduction Act and in what it means for the future of Cleantech startups. 10 00:01:37,923.671913974 --> 00:01:47,593.67191397 You won't wanna miss a single second of this informative and eye-opening discussion on the realities of the act and its impact on businesses and the environment. 11 00:01:47,648.67191397 --> 00:01:52,898.67191397 Today I am joined by two really awesome people, both Franz and John. 12 00:01:53,168.67191397 --> 00:01:57,998.67191397 And we are going to be talking more about the Inflation Reduction Act. 13 00:01:57,998.67191397 --> 00:02:08,558.67191397 And today we're really gonna be focused on how this applies to startups and what is it gonna look like and how is this all gonna pan out for what the startup community is going to be able to do. 14 00:02:09,156.66511125 --> 00:02:13,116.66511125 This new bill that's floating around all this new money. 15 00:02:13,116.66511125 --> 00:02:15,276.66511125 First I'd love to start off with Franz. 16 00:02:15,276.66511125 --> 00:02:24,136.66511125 Do you mind telling us a bit about what Raise Green is and just giving us a little intro to yourself and then we'll move over to John? Absolutely. 17 00:02:24,136.66511125 --> 00:02:24,376.66511125 Yeah. 18 00:02:24,376.66511125 --> 00:02:25,6.66511125 Thank you Billy. 19 00:02:25,36.66511125 --> 00:02:25,906.66511125 And hello everyone. 20 00:02:25,936.66511125 --> 00:02:29,394.78302509 I am Franz Hochstrasser CEO and co-founder of Raise Green. 21 00:02:29,504.87372803 --> 00:02:31,841.5403947 And raise Green is the climate investment platform. 22 00:02:31,871.5403947 --> 00:02:36,424.87372803 We let anyone invest in climate solutions for as little as a hundred dollars. 23 00:02:36,434.87372803 --> 00:02:44,257.94629039 And when we say climate solutions, we mean, companies that are building electric vehicles solar energy efficiency. 24 00:02:44,540.04379606 --> 00:02:49,100.04379606 as well as sustainable materials and other types of advanced manufacturing. 25 00:02:49,556.71046273 --> 00:03:00,73.98937429 Anything that feasibly reduces emissions and makes our communities more resilient to the impacts of climate change, will be the types of businesses that we will consider putting onto the marketplace. 26 00:03:00,78.98937429 --> 00:03:02,614.64697066 And we've been doing it for a number of years now. 27 00:03:02,629.47690264 --> 00:03:11,295.4973108 a few thousand investors who are using us now on a regular basis, and we're ultimately building the largest online climate investing community in the world. 28 00:03:11,305.4973108 --> 00:03:11,695.4973108 Sweet. 29 00:03:11,695.4973108 --> 00:03:16,144.10275298 Thank you so much for that intro, Franz, and letting everybody hear about what you're doing, which is awesome. 30 00:03:16,414.10275298 --> 00:03:20,64.90774164 John, do you mind telling us about green Island, EV? Yeah. 31 00:03:20,64.90774164 --> 00:03:20,634.90774164 Thanks Billy. 32 00:03:20,634.90774164 --> 00:03:21,264.90774164 Hi, Franz. 33 00:03:21,324.90774164 --> 00:03:22,314.90774164 Good to see you again. 34 00:03:22,381.57440831 --> 00:03:23,371.57440831 Thanks for having me. 35 00:03:23,376.57440831 --> 00:03:24,336.57440831 I'll back up a little bit. 36 00:03:24,366.57440831 --> 00:03:34,108.03699334 I started in the EV space around 2015, working alongside the team at Line Electric and spent about five years there really learning. 37 00:03:34,676.68778699 --> 00:03:37,406.68778699 EV and on school buses and commercial transportation. 38 00:03:37,411.68778699 --> 00:03:40,851.68778699 I also have founded a company called Trucktractortrailer.com, 39 00:03:40,871.68778699 --> 00:03:44,11.41567815 which is in the used commercial truck space. 40 00:03:44,92.77622236 --> 00:03:46,612.77622236 Buying and selling of used trucks, tractors, and trailers. 41 00:03:46,612.77622236 --> 00:03:50,605.93948767 And why that's important is that I'm front and center in commercial transportation. 42 00:03:50,664.32951035 --> 00:03:52,139.86239016 Before my time at Lyon. 43 00:03:52,211.95989583 --> 00:03:54,476.98257157 I worked for a company called First Group. 44 00:03:54,506.98257157 --> 00:04:00,602.81023597 And First Group, you might know them as, a portfolio company that owns First Student, First Transit, Greyhound Bus. 45 00:04:00,752.81023597 --> 00:04:06,443.02565547 So the largest public commercial transit organization in North America, probably the world. 46 00:04:06,557.87826318 --> 00:04:06,900.75808177 I have. 47 00:04:07,102.42474844 --> 00:04:10,41.69912486 A really decent lens into transportation. 48 00:04:10,371.69912486 --> 00:04:13,55.91681193 And then now the electrification of transportation. 49 00:04:13,415.91681193 --> 00:04:24,129.0574015 And recently had founded Green Island EV, to build microtransit units in New York My home state, when I say microtransit, I'm talking type A school buses, smaller frame. 50 00:04:24,451.1435693 --> 00:04:26,771.1435693 Transit buses last mile delivery. 51 00:04:26,861.16624504 --> 00:04:29,572.50411352 And we're proudly raising money through Raise Green. 52 00:04:29,644.57894345 --> 00:04:33,401.06420422 And so after this meeting please visit raisegreen.com 53 00:04:33,421.06420422 --> 00:04:34,930.81477112 and click the invest button. 54 00:04:34,930.81477112 --> 00:04:36,682.49277565 Yeah, so we got Green Island EV. 55 00:04:36,802.49277565 --> 00:04:38,793.13903416 It's up on Raise Green's platform. 56 00:04:38,798.13903416 --> 00:04:50,909.37486182 That's how we connected here and so I'd love to be able to bring together our mutual knowledge about what's going on in this space to be able to talk about this, inflation reduction act here and how it's going to impact. 57 00:04:50,930.73540604 --> 00:04:53,515.0664718 The United States and where we're seeing this going. 58 00:04:53,515.0664718 --> 00:05:06,864.89640377 So I'd love to just put the question out there and Franz or John, if you wanna answer it, either one of you can think on this, but what do you see with this new bill, where do you see this going and how is it going to impact. 59 00:05:06,869.89640377 --> 00:05:15,352.20932894 The transportation community in terms of trying to make this transition to a a greener transportation movement. 60 00:05:15,357.20932894 --> 00:05:21,353.66057611 Where do you see this bill being able to impact the transition that we are having here? Great question, Billy. 61 00:05:21,413.66057611 --> 00:05:24,363.70592758 And I think at a high level I'll back up for a moment. 62 00:05:24,363.70592758 --> 00:05:32,847.35672123 Just to acknowledge how transformational, the last year and a half of legislation has been in this country for the transition to a clean energy economy. 63 00:05:32,852.35672123 --> 00:05:45,923.36579152 Not only did the Bipartisan Infrastructure Law pass, with an enormous amount of new funding for clean energy transition and specifically for school buses as well as other types of electrification of the transport sector. 64 00:05:45,928.36579152 --> 00:05:53,716.63109765 But also the CHIPS and Science Act pass, which provides fundamental research and development dollars into all sorts of climate solutions. 65 00:05:53,746.63109765 --> 00:06:02,512.09595025 And then as you noted, the Inflation Reduction Act passed with a Congressional Budget Office score of about $370 billion flowing into the space. 66 00:06:02,512.09595025 --> 00:06:06,782.11862599 But when the private sector analyzed this at Credit Suisse, they found that. 67 00:06:07,307.11862599 --> 00:06:10,647.11862599 Actually, it's more likely because there many of these programs are uncapped. 68 00:06:10,652.11862599 --> 00:06:16,777.11862599 There will be around 800 billion of US federal spending flowing into the climate and clean energy space. 69 00:06:16,777.11862599 --> 00:06:19,492.77622236 And that actually will catalyze another 1.7 70 00:06:19,492.77622236 --> 00:06:21,730.99617701 trillion, over the next 10 years. 71 00:06:21,740.99617701 --> 00:06:37,851.08687996 So what that means for investors is certainty, now, These technologies that may have been, questioned in the past now have the backing of the federal government, putting their dollars behind them and shoring up the market in a way that we really haven't seen, before this moment. 72 00:06:37,907.980304 --> 00:06:41,425.75808177 Whereas, folks made many bets in clean Cleantech 1.0 73 00:06:41,436.16624504 --> 00:06:42,966.16624504 and there was a lot of uncertainty. 74 00:06:43,17.92361465 --> 00:06:50,460.42928359 In this version of the economy and the transition that's happening in the climate tech age or climate Tech 2.0, 75 00:06:50,460.42928359 --> 00:06:55,323.05966908 we have that certainty of federal dollars coming behind it, and that's enormously beneficial. 76 00:06:55,369.83971443 --> 00:06:56,493.12769629 And Franz, good take. 77 00:06:56,525.37259425 --> 00:06:58,528.88733347 And I agree on all points, on its own. 78 00:06:58,528.88733347 --> 00:07:09,320.82610898 I think the Inflation reduction Act has little impact on its own, but part of a major transformational platform that Franz talked about, the 370 billion to 800 billion. 79 00:07:09,370.82610898 --> 00:07:10,150.82610898 That's meaningful. 80 00:07:10,431.48370536 --> 00:07:13,591.50638109 And certainly I think that you have to look at the IRA. 81 00:07:13,596.50638109 --> 00:07:14,316.50638109 For what it is. 82 00:07:14,316.50638109 --> 00:07:20,732.35672123 And for my seat, as a commercial operator looking to make money in commercial trucking, it's a catalyst. 83 00:07:20,732.35672123 --> 00:07:29,78.6605761 It's certainly not the end all solution that privately held, commercial fleets need, to help them migrate from a diesel based fleet. 84 00:07:30,100.34991851 --> 00:07:33,431.37032667 Electric or hydrogen fuel cell technology or whatever's next. 85 00:07:33,491.37032667 --> 00:07:42,442.28869402 Now I'm certain there's gonna be something next, it's certainly a catalyst to change and will help to accelerate probably a 20 to 30 year transformational movement. 86 00:07:42,800.38393211 --> 00:07:48,317.16397747 So the key point I wanna make is that we are still in the top of the first inning of a nine inning baseball game. 87 00:07:48,647.16397747 --> 00:07:57,866.09821783 It's really early days, and but I think the Franz's point again, I think all the bipartisan movement here, has demonstrated that this is for real. 88 00:07:58,13.86465774 --> 00:07:58,583.86465774 Yeah, definitely. 89 00:07:58,632.88960105 --> 00:08:03,247.88960105 It just shows that the federal government is putting funding money through this. 90 00:08:03,487.88960105 --> 00:08:22,194.62429493 So like Franz mentioned, it's a lot surer of an investment and do you see there're going to be a lot more research and development starting through this bill as well, like you mentioned before with the other bill? Or do you think there's gonna be a lot more startups being built from this bill here? I think you're gonna see both. 91 00:08:22,273.52452168 --> 00:08:23,413.52452168 you already are seeing both. 92 00:08:23,480.11182327 --> 00:08:36,758.80796839 The Energy Secretary, Secretary Granholm had a good hoc take on Chris Hayes just a couple days ago about how this has already catalyzed, billions of dollars of private sector investment into manufacturing plants in the US for. 93 00:08:36,763.80796839 --> 00:08:41,861.77848994 Battery materials for solar modules, and for actual, vehicles, OEMs. 94 00:08:41,921.77848994 --> 00:08:51,218.92134708 And that type of a stimulus really, is intended to and will and we saw it during the recovery act back in the Obama administration in 2009. 95 00:08:51,223.92134708 --> 00:08:53,683.92134708 It will pull an industry forward. 96 00:08:53,693.92134708 --> 00:08:55,403.92134708 And that's what it's intended to do. 97 00:08:55,525.21386409 --> 00:08:56,483.94402282 And it works. 98 00:08:56,545.87146046 --> 00:09:00,274.09141511 As John says, first couple pitches even of the top of the first inning. 99 00:09:00,274.09141511 --> 00:09:06,152.17531533 And those early at bats are important, to get on base and move the smart money in behind it from the private sector. 100 00:09:06,152.17531533 --> 00:09:13,607.02792304 From my standpoint where I sit seeing all these programs, many of which are backed up by the tax credit provisions. 101 00:09:13,612.02792304 --> 00:09:16,571.68778699 That are now open to, any types of technology. 102 00:09:16,571.68778699 --> 00:09:21,152.68551942 So their investment tax credit and production tax credit are largely industry agnostic. 103 00:09:21,202.3680591 --> 00:09:29,980.80343325 There's electric vehicle tax credits, there's manufacturing tax credits, and those coupled with the roughly a hundred programs that come from the Inflation Reduction Act. 104 00:09:29,990.80343325 --> 00:09:35,360.80343325 I think give us the basis of a new manufacturing strategy here in the us. 105 00:09:35,460.80343325 --> 00:09:47,454.63563279 That it underpins, the innovation both at the bench level as well as on the implementation, and commercialization side of the transportation sector, the energy sector home electrification, and more. 106 00:09:47,484.63563279 --> 00:09:55,899.0233879 So it's a really exciting time and frankly, I think 2023 is the year of climate investing, because all these programs are going into effect, over the next year. 107 00:09:56,114.0233879 --> 00:10:10,711.03019062 And on top of that, it's the year of climate investing both in the private market, but also the public market because a lot of the EV players have gotten hammered in the market in the last six to 12 months, which will correct itself with as the market proves out. 108 00:10:10,711.03019062 --> 00:10:17,126.89186862 I think relative to the IRA and new funding coming in for startups, is that, innovation's gonna come from startups. 109 00:10:17,436.89186862 --> 00:10:25,369.51091624 I think it's proof that, at one point in time, believe it or not, that Tesla was a startup and they really challenged the legacy OEMs to think differently. 110 00:10:25,384.51091624 --> 00:10:26,344.51091624 It took about. 111 00:10:26,354.51091624 --> 00:10:33,589.51091624 10, 15 years for the legacy OEMs on the consumer auto side, really to wake up and feel the pain of losing market share to Tesla. 112 00:10:33,599.51091624 --> 00:10:35,639.51091624 And I don't have to tell you that. 113 00:10:35,747.92361465 --> 00:10:41,107.10728812 Now the consumer EV market every consumer automotive OEM has an EV solution today. 114 00:10:41,119.01205003 --> 00:10:44,888.50184595 And a full pipeline of new products not just for 2023. 115 00:10:44,899.60161919 --> 00:10:46,309.60161919 To 24, 25. 116 00:10:46,549.60161919 --> 00:11:04,162.86692531 Now, in that innovation will continue because I think we'll start to see alternative fuel sources as we start to complement or even move away from lithium battery electric, right into, hydrogen and green and solar and who else knows what's in the pipeline of innovation. 117 00:11:04,162.86692531 --> 00:11:07,214.51091624 So I think specific, Billy to your challenge to us on. 118 00:11:07,244.51091624 --> 00:11:09,856.34765093 The startup community, I think, we have to be innovators. 119 00:11:09,856.34765093 --> 00:11:11,446.34765093 I'm talking, we, the startup community. 120 00:11:11,446.34765093 --> 00:11:15,586.34765093 We have to be innovative, but at the same time, you have to make money. 121 00:11:15,916.34765093 --> 00:11:19,404.272821 So you have to have innovation, but also something that you can sell to generate. 122 00:11:19,409.272821 --> 00:11:21,449.272821 Revenue and profits to fund your business. 123 00:11:21,504.272821 --> 00:11:22,936.24561012 And then you'll have proof of concepts. 124 00:11:22,936.24561012 --> 00:11:32,171.38166454 So it's not easy, it's hard, but the opportunities especially with this funding at the national level, the federal level loss of the state level is exciting. 125 00:11:32,176.38166454 --> 00:11:34,846.51771896 Yeah, it's all very exciting to see this coming through. 126 00:11:35,176.51771896 --> 00:11:36,316.51771896 And where do you see. 127 00:11:36,381.95989583 --> 00:11:39,822.25468041 The last six months we've seen this recession take hold. 128 00:11:40,152.25468041 --> 00:11:53,221.95989583 Do you see this bill as helping the climate tech sector in terms of investment over the next, 12 months, especially in 2023? Or do you see this, investment climate or economic climate? Yeah. 129 00:11:53,221.95989583 --> 00:11:59,691.5403947 How is that going to be impacted by this bill? I don't think that the correction in the EV market was recession based. 130 00:11:59,729.59028132 --> 00:12:00,568.97803642 Not the entirety. 131 00:12:00,568.97803642 --> 00:12:05,857.87826318 I think what drove the correction in the EV market was lack of a path to revenue. 132 00:12:05,862.87826318 --> 00:12:18,807.93495252 And I think that the smart investors came into the market and rationalized got behind the true leaders those that would survive and thrive and really penalized some of these companies that would never turn a profit or commercialize. 133 00:12:18,894.18211806 --> 00:12:28,67.93495252 And I think we can all agree that maybe 24 months ago, 30 months ago, there was a lot of companies that were funded via SPAC, that you could deem now reckless. 134 00:12:28,142.49277565 --> 00:12:30,285.41794572 It was based on just market frenzy. 135 00:12:30,295.41794572 --> 00:12:32,499.68098427 And some of these companies would never survive. 136 00:12:32,859.68098427 --> 00:12:35,825.88279833 And so I think it's humbled the community, the EV community. 137 00:12:35,830.88279833 --> 00:12:39,2.39073484 I think we've had to be smarter, had to be more pragmatic. 138 00:12:39,9.87372803 --> 00:12:41,367.28869402 And more realistic with our expectations. 139 00:12:41,367.28869402 --> 00:12:51,307.94629039 And so I think with the combination of the funding coming in at the federal and state levels, I think with innovation starting to settle some bit, innovation will always occur in transform. 140 00:12:51,312.94629039 --> 00:12:53,647.94629039 But now we have proof of concept, not just with Tesla. 141 00:12:54,41.27962372 --> 00:12:57,976.18892078 but you have a number of OEMs that are now coming to market with their EVs. 142 00:12:58,306.18892078 --> 00:13:10,89.78302508 And as we start to sell more and we start to drive EVs more, and we start to use EVs in the commercial let's say the school bus sector and the transit sector and last mile delivery we're gonna learn a lot. 143 00:13:10,122.00524731 --> 00:13:14,920.7127303 And from that learning we'll be able to step back and drive even more innovation in the market. 144 00:13:15,13.32044005 --> 00:13:18,334.82837656 Franz, did you have anything to add? No I, I honestly couldn't agree more. 145 00:13:18,364.82837656 --> 00:13:26,533.54719742 I think there's some super ambitious predictions out of Bloomberg that does probably in my view some of the best analysis on the EV market. 146 00:13:26,588.73994118 --> 00:13:31,100.93948767 And frankly, I think we are on pace to exceed them, in terms of deployment. 147 00:13:31,155.93948767 --> 00:13:38,993.58121103 Even despite the headwinds that we've seen, as John was saying, every OEM in the market now has, at least one EV model. 148 00:13:39,63.58121103 --> 00:13:41,692.980304 They're moving towards, fully electrified fleets. 149 00:13:41,712.980304 --> 00:13:44,71.31363733 Cities are moving toward. 150 00:13:44,145.79209538 --> 00:13:55,213.411143 Further cord and tolling or, policies to prevent internal combustion engines from, moving through town centers in a manner that pollutes those neighborhoods more aggressively. 151 00:13:55,242.14130173 --> 00:14:02,239.42021329 And I think the confluence though of the investment thesis that's emerging, around this safe government backed bet. 152 00:14:02,254.42021329 --> 00:14:10,880.81477112 And the technology becoming more ubiquitous and less risky, really leads to a super exciting time to be in the market. 153 00:14:10,927.59481647 --> 00:14:14,180.65604096 And frankly that's true across the board on climate solutions. 154 00:14:14,314.28415887 --> 00:14:16,542.17531534 The market signal I was just reading today. 155 00:14:16,606.37032667 --> 00:14:22,726.34765094 2022 was the first year that green debt products outpaced, fossil debt products worldwide. 156 00:14:22,796.71046273 --> 00:14:29,404.59028132 For the first time now you've got a bigger debt market funding climate solutions than you do fossil fuels. 157 00:14:29,414.59028132 --> 00:14:30,954.59028132 And I don't think we're going back. 158 00:14:31,13.51318382 --> 00:14:31,523.51318382 And Franz. 159 00:14:31,523.51318382 --> 00:14:38,419.22746953 I think you'll agree too if this is a battle for jobs, if you're at the state level, if you're a congressman, if you're a governor, you're fighting. 160 00:14:38,429.22746953 --> 00:14:51,719.38619969 For these jobs, I'm talking EV manufacturing jobs in and around the climate space, but specifically for, Green Island EV around EV and electrification and transportation, whether it's a battery electric plant. 161 00:14:52,104.38619969 --> 00:14:56,831.13223143 Whether it's a full assembly plant, that employ hundreds of people, if not thousands of people. 162 00:14:57,191.13223143 --> 00:15:00,489.93041738 And these are good paying jobs and I think there's a fight for it. 163 00:15:00,489.93041738 --> 00:15:05,488.61522463 Now, I'm not saying I know everyone has read the news, Wyoming came out and they're going the opposite. 164 00:15:05,551.90320649 --> 00:15:10,156.43835388 Wyoming has told the market that they don't want these types of jobs in Wyoming, but that's Wyoming. 165 00:15:10,156.43835388 --> 00:15:10,966.43835388 But if you look at. 166 00:15:11,16.74447633 --> 00:15:13,896.74447633 The leadership in California and to look at the leadership in New York. 167 00:15:13,896.74447633 --> 00:15:21,265.22520196 And I would suggest even the leadership in Texas with Tesla moving in a big way to Texas I think it's a battle for jobs. 168 00:15:21,317.78756023 --> 00:15:22,81.07554209 Good paying jobs. 169 00:15:22,86.07554209 --> 00:15:23,483.10502055 And these are manufacturing jobs. 170 00:15:23,483.10502055 --> 00:15:30,119.28415887 These are, solid middle class, blue collar jobs that everyone is looking to grow in their state at the local level. 171 00:15:30,129.28415887 --> 00:15:40,943.04833121 Investing in the clean energy economy compared to investment in the traditional economy does create more induced job years, more direct job years and more indirect job years. 172 00:15:40,986.88053075 --> 00:15:43,426.88053075 And there's plenty of studies to support that. 173 00:15:43,431.88053075 --> 00:16:01,657.64016794 It's absolutely right what John's saying that, this is a tremendous opportunity not just to transform into an economy that produces less pollution and end result as healthier people, but also one in which we have more gainfully employed society, working, in our communities to build those technologies and deploy them. 174 00:16:01,662.64016794 --> 00:16:17,387.64016794 And John, you brought up the Wyoming, trying to go the opposite direction of saying they're gonna reduce the number of sales of EVs, I just think it's funny because it's the oil and gas industry is going to die no matter whether they're selling EVs or not. 175 00:16:17,387.64016794 --> 00:16:21,807.39300241 So they're trying to control something that's, Like you're trying to hold water. 176 00:16:21,807.39300241 --> 00:16:23,607.39300241 Like it's just gonna fall through your fingers. 177 00:16:23,612.39300241 --> 00:16:25,557.39300241 Like you can't stop this transition. 178 00:16:25,557.39300241 --> 00:16:27,477.39300241 You can't chop stop this change. 179 00:16:27,500.93041738 --> 00:16:36,621.44062146 You trying to put a law and prevent EV sales is not going to help no, it reminded me of that comedy a few years ago about the tobacco industry. 180 00:16:36,621.44062146 --> 00:16:38,884.75127905 A tobacco lobbyist, thank you for smoking. 181 00:16:39,274.75127905 --> 00:16:46,942.6197598 So it's almost as if they're gonna, start promoting cigarettes again as a healthy alternative for your diet or healthy way of living. 182 00:16:46,957.427016 --> 00:16:51,411.9394877 I was really perplexed by that, but I agree, Billy, I think it is driven by the oil and gas industry. 183 00:16:51,411.9394877 --> 00:16:56,496.9394877 But however you look at Texas, which is a oil and gas, petroleum based, economy. 184 00:16:56,511.9394877 --> 00:16:58,701.9394877 A lot of people there, but here they are. 185 00:16:58,706.9394877 --> 00:17:04,531.9394877 We're able to attract the number one EV company on the planet, which is Tesla, to do business there. 186 00:17:04,581.9394877 --> 00:17:07,823.6628437 Not just manufacturer there, but really to expand their business there. 187 00:17:07,888.5381271 --> 00:17:14,888.3340455 And so I think you'll see petroleum-based states, economies like Texas come out and say, you know what, this makes economic sense. 188 00:17:14,976.5993516 --> 00:17:20,579.2637507 This just is not a good thing to help save the planet and help create a healthier way of transportation. 189 00:17:20,579.2637507 --> 00:17:22,642.6424355 But I think it makes fiscal sense to do it. 190 00:17:22,667.3022995 --> 00:17:28,646.8374469 Yeah, and that's why that Texas is the leading producer of renewable energies. 191 00:17:28,651.1322314 --> 00:17:36,121.1322314 They have the leading number of installations of solar and wind out of any other state that's going on right now. 192 00:17:36,186.6424355 --> 00:17:40,245.0551339 Even in an economy like that they're seeing this as an opportunity to. 193 00:17:40,277.2773562 --> 00:17:45,977.3000319 Convert to a cheaper, more, efficient fuel to create energy. 194 00:17:45,977.3000319 --> 00:17:47,920.3499185 So like you said, it makes fiscal sense. 195 00:17:47,920.3499185 --> 00:17:49,90.3499185 It makes business sense. 196 00:17:49,118.411143 --> 00:17:55,325.1911883 If you are a business professional and looking at the numbers and you're saying, okay, I can save money by doing this. 197 00:17:55,714.70366 --> 00:17:56,704.70366 That's what you're gonna do. 198 00:17:56,754.70366 --> 00:18:01,118.2637507 It is not anymore a question of oh, I'll do this, but I'm gonna take a hit on the back end. 199 00:18:01,123.2637507 --> 00:18:03,733.2637507 You do this because you're gonna save money. 200 00:18:03,733.2637507 --> 00:18:11,167.9349525 So even if you're not even caring about the environment, you're going to, save money in this way, So it's just makes sense. 201 00:18:11,172.9349525 --> 00:18:13,693.2977643 And so we got onto the topic of infrastructure. 202 00:18:13,693.2977643 --> 00:18:20,635.8034332 Where do you guys see, the infrastructure of the grid being able to change over to more cleaner fuels with this Inflation Reduction Act. 203 00:18:20,673.8306441 --> 00:18:25,66.1889208 I'll give you the non-politically correct answer, and that is we're nowhere near being ready for it. 204 00:18:25,165.8487847 --> 00:18:37,34.1254287 If you add up all the projections from the OEMs and even the legacy OEMs, but even the startup OEMs, and if you were to compile all of the projections for deliveries in 2023. 205 00:18:37,79.1254287 --> 00:18:37,829.1254287 That's fine. 206 00:18:37,829.1254287 --> 00:18:43,822.2546804 You might be able to make them and ship them, but there's no way to serve them properly from an infrastructure support. 207 00:18:44,152.2546804 --> 00:18:45,592.2546804 We're nowhere near being ready. 208 00:18:45,597.2546804 --> 00:18:47,32.2546804 Now, there's pockets of brilliance. 209 00:18:47,52.7081952 --> 00:18:57,762.0959503 There's certain utility companies that are working very closely with, the municipalities and the communities in the businesses, in those communities to bring the required infrastructure to support that fleet. 210 00:18:58,92.0959503 --> 00:19:00,942.0959503 But we are nowhere near being ready for it. 211 00:19:01,14.2274695 --> 00:19:03,185.225202 And that's just not my personal opinion. 212 00:19:03,425.225202 --> 00:19:05,45.225202 I wish it were true, but it's not. 213 00:19:05,405.225202 --> 00:19:18,888.6265625 So I think if you look at some of the funding that's available, maybe Franz has a better view is really geared towards building out infrastructure, not just building it, but accelerating the buildout of infrastructure to support these high aspirations. 214 00:19:18,898.6265625 --> 00:19:19,78.6265625 Yeah. 215 00:19:19,78.6265625 --> 00:19:26,242.4700999 John, I think as again, spot on the, deployment of, electric vehicle charging stations, particularly for light duty vehicles. 216 00:19:26,282.5948165 --> 00:19:30,512.5948165 I think the president has a goal of 500,000 charging stations across the country. 217 00:19:30,522.5948165 --> 00:19:32,569.1254287 We're not there yet but we are headed there. 218 00:19:32,569.1254287 --> 00:19:38,743.6379004 And the money actually from the bipartisan infrastructure law, I know because I was just talking to our local commissioner here. 219 00:19:38,748.6379004 --> 00:19:46,735.2818913 In DC about the district's plan to cite all those charging stations and then use the federal dollars to build them. 220 00:19:46,745.2818913 --> 00:19:49,435.304567 And so it is moving those programs are moving and. 221 00:19:49,542.3567212 --> 00:19:58,834.3068346 I think we're gonna see a lot of construction around us in the next year and a half, and that will result in the infrastructure transforming pretty rapidly thereafter. 222 00:19:58,933.0143176 --> 00:20:01,641.7558142 Or as it gets built out, and frankly, it's true. 223 00:20:01,696.5403947 --> 00:20:15,539.6016192 We're still on a net scale at a global level, about three to six times behind where we need to be in terms of investment in climate and clean energy solutions to truly, prevent catastrophic warming. 224 00:20:15,539.6016192 --> 00:20:22,906.5517326 And yet as we've been discussing, every market signal now, is being sent and is starting to hotwire big time across markets. 225 00:20:22,956.5517326 --> 00:20:29,807.288694 And you saw also ESG and, climate and clean energy investments during the downturn of last year. 226 00:20:29,862.7422088 --> 00:20:30,582.7422088 outperform. 227 00:20:30,582.7422088 --> 00:20:35,947.7081952 It's a good time for me to remind folks I don't give financial, legal, or accounting or tax advice. 228 00:20:36,36.7331385 --> 00:20:42,946.0982178 Clearly the work that, is being done in the clean energy economy is working and, that really is the future, that we see. 229 00:20:43,107.7648845 --> 00:20:43,587.7648845 I agree. 230 00:20:43,597.7648845 --> 00:20:55,550.4973108 And would you guys like to add any last things before we wrap it up here? Franz, We run an investment marketplace to let more people invest in this transition for as little as a hundred dollars. 231 00:20:55,550.4973108 --> 00:20:57,230.4973108 And we'd love for folks to check it out. 232 00:20:57,230.4973108 --> 00:20:58,710.4973108 It's at raisegreen.com. 233 00:20:58,737.889601 --> 00:21:00,982.889601 We have, vetted startups on there. 234 00:21:00,992.889601 --> 00:21:11,500.0551339 Such as John's and it's a place for folks to come join our community, learn about the clean energy technologies, learn about the financing of those projects and companies. 235 00:21:11,567.1526396 --> 00:21:16,303.1276963 And ultimately, if you decide it's appropriate for you make an investment in companies that you believe in. 236 00:21:16,308.1276963 --> 00:21:19,134.6583085 And an easy place to find out more about Green Island. 237 00:21:19,184.6583085 --> 00:21:21,916.7218006 go to greenisland ev.com 238 00:21:21,926.7218006 --> 00:21:36,63.4564945 and click the Invest button to bring you into, the raised green site where you're gonna find not just Green Island EV, but you're gonna find probably a dozen companies, that are doing a whole host of unique things to help solve this problem. 239 00:21:36,73.4564945 --> 00:21:39,113.4564945 And I think the Franz's point, he can't say it, I'll say it. 240 00:21:39,457.0165852 --> 00:21:50,790.5993516 It's a great time to buy low, to eventually sell higher and make some money while investing in a purpose-driven, space of really fine individuals trying to, do great work and create jobs. 241 00:21:50,838.0596691 --> 00:21:53,501.2682859 I can't stress enough that Green Island EV has started. 242 00:21:53,501.2682859 --> 00:21:55,854.4882405 Yes we have ambitions to help save the planet. 243 00:21:55,854.4882405 --> 00:22:00,859.7263357 But really what our purpose is to create jobs for upstate New York and we're pretty proud. 244 00:22:00,880.3839321 --> 00:22:01,994.9190795 And there's sustainable jobs. 245 00:22:02,22.9689661 --> 00:22:04,754.5789435 You're building something that's going to be sustainable for the future. 246 00:22:04,754.5789435 --> 00:22:04,814.5789435 Yeah. 247 00:22:05,114.5789435 --> 00:22:09,270.996177 That's not, based in a fossil fuel that's going to, run out. 248 00:22:09,270.996177 --> 00:22:11,10.4519593 It's something that's really based in the future. 249 00:22:11,23.9666986 --> 00:22:11,817.2546804 It's a great time. 250 00:22:11,817.2546804 --> 00:22:13,48.7172654 So thank you both for. 251 00:22:13,403.7172654 --> 00:22:15,923.7172654 Coming on to the podcast here. 252 00:22:15,923.7172654 --> 00:22:22,13.7172654 It's been really awesome having both of you on talking about the Inflation Reduction Act, talking about what you guys are doing. 253 00:22:22,13.7172654 --> 00:22:24,983.7172654 So thank you so much both of you for coming on the show. 254 00:22:24,988.7172654 --> 00:22:42,628.7172654 And if you enjoyed that interview with Franz Hochstrasser and John Gillie, as we talked all about the Inflation Reduction Act and its impact on Green Tech Startups, then I invite you to check out this interview with DC Palter from Pitching Angels. 255 00:22:42,678.7172654 --> 00:22:47,998.7172654 He is an angel investor who has invested in over 10 green tech startups. 256 00:22:49,33.7172654 --> 00:22:58,663.7172654 Over 40 different startups altogether, and he talks about his experience mentoring and investing in green tech startups. 257 00:22:58,753.7172654 --> 00:23:04,63.7172654 And we also touch on what it takes to catch the eye of that angel investor. 258 00:23:04,243.7172654 --> 00:23:08,173.7172654 So make sure you check out this interview with DC Palter.
I hope you enjoy it.
I'll be right back at the end of the episode to close everything out.
.666666667But I hope you really enjoyed this episode episode with John GillIe from Green Island EV and Franz Hochstrasser from Raise Green. 7 00:01:09,321.156462585 --> 00:01:15,475.349344529 How is the Inflation Reduction Act going to impact climb tech startups? Prepared to be stunned by the revelations. 8 00:01:15,485.349344529 --> 00:01:28,558.379292446 In this episode, as we delve into the facts behind this new legislation and its effects on the industry, we are sitting down with my guests, John Gillie, founder of Green Island EV and Franz Hochstrasser. 9 00:01:28,893.671913974 --> 00:01:37,913.671913974 CEO of Raise Green to discuss the intricacies of the Inflation Reduction Act and in what it means for the future of Cleantech startups. 10 00:01:37,923.671913974 --> 00:01:47,593.67191397 You won't wanna miss a single second of this informative and eye-opening discussion on the realities of the act and its impact on businesses and the environment. 11 00:01:47,648.67191397 --> 00:01:52,898.67191397 Today I am joined by two really awesome people, both Franz and John. 12 00:01:53,168.67191397 --> 00:01:57,998.67191397 And we are going to be talking more about the Inflation Reduction Act. 13 00:01:57,998.67191397 --> 00:02:08,558.67191397 And today we're really gonna be focused on how this applies to startups and what is it gonna look like and how is this all gonna pan out for what the startup community is going to be able to do. 14 00:02:09,156.66511125 --> 00:02:13,116.66511125 This new bill that's floating around all this new money. 15 00:02:13,116.66511125 --> 00:02:15,276.66511125 First I'd love to start off with Franz. 16 00:02:15,276.66511125 --> 00:02:24,136.66511125 Do you mind telling us a bit about what Raise Green is and just giving us a little intro to yourself and then we'll move over to John? Absolutely. 17 00:02:24,136.66511125 --> 00:02:24,376.66511125 Yeah. 18 00:02:24,376.66511125 --> 00:02:25,6.66511125 Thank you Billy. 19 00:02:25,36.66511125 --> 00:02:25,906.66511125 And hello everyone. 20 00:02:25,936.66511125 --> 00:02:29,394.78302509 I am Franz Hochstrasser CEO and co-founder of Raise Green. 21 00:02:29,504.87372803 --> 00:02:31,841.5403947 And raise Green is the climate investment platform. 22 00:02:31,871.5403947 --> 00:02:36,424.87372803 We let anyone invest in climate solutions for as little as a hundred dollars. 23 00:02:36,434.87372803 --> 00:02:44,257.94629039 And when we say climate solutions, we mean, companies that are building electric vehicles solar energy efficiency. 24 00:02:44,540.04379606 --> 00:02:49,100.04379606 as well as sustainable materials and other types of advanced manufacturing. 25 00:02:49,556.71046273 --> 00:03:00,73.98937429 Anything that feasibly reduces emissions and makes our communities more resilient to the impacts of climate change, will be the types of businesses that we will consider putting onto the marketplace. 26 00:03:00,78.98937429 --> 00:03:02,614.64697066 And we've been doing it for a number of years now. 27 00:03:02,629.47690264 --> 00:03:11,295.4973108 a few thousand investors who are using us now on a regular basis, and we're ultimately building the largest online climate investing community in the world. 28 00:03:11,305.4973108 --> 00:03:11,695.4973108 Sweet. 29 00:03:11,695.4973108 --> 00:03:16,144.10275298 Thank you so much for that intro, Franz, and letting everybody hear about what you're doing, which is awesome. 30 00:03:16,414.10275298 --> 00:03:20,64.90774164 John, do you mind telling us about green Island, EV? Yeah. 31 00:03:20,64.90774164 --> 00:03:20,634.90774164 Thanks Billy. 32 00:03:20,634.90774164 --> 00:03:21,264.90774164 Hi, Franz. 33 00:03:21,324.90774164 --> 00:03:22,314.90774164 Good to see you again. 34 00:03:22,381.57440831 --> 00:03:23,371.57440831 Thanks for having me. 35 00:03:23,376.57440831 --> 00:03:24,336.57440831 I'll back up a little bit. 36 00:03:24,366.57440831 --> 00:03:34,108.03699334 I started in the EV space around 2015, working alongside the team at Line Electric and spent about five years there really learning. 37 00:03:34,676.68778699 --> 00:03:37,406.68778699 EV and on school buses and commercial transportation. 38 00:03:37,411.68778699 --> 00:03:40,851.68778699 I also have founded a company called Trucktractortrailer.com, 39 00:03:40,871.68778699 --> 00:03:44,11.41567815 which is in the used commercial truck space. 40 00:03:44,92.77622236 --> 00:03:46,612.77622236 Buying and selling of used trucks, tractors, and trailers. 41 00:03:46,612.77622236 --> 00:03:50,605.93948767 And why that's important is that I'm front and center in commercial transportation. 42 00:03:50,664.32951035 --> 00:03:52,139.86239016 Before my time at Lyon. 43 00:03:52,211.95989583 --> 00:03:54,476.98257157 I worked for a company called First Group. 44 00:03:54,506.98257157 --> 00:04:00,602.81023597 And First Group, you might know them as, a portfolio company that owns First Student, First Transit, Greyhound Bus. 45 00:04:00,752.81023597 --> 00:04:06,443.02565547 So the largest public commercial transit organization in North America, probably the world. 46 00:04:06,557.87826318 --> 00:04:06,900.75808177 I have. 47 00:04:07,102.42474844 --> 00:04:10,41.69912486 A really decent lens into transportation. 48 00:04:10,371.69912486 --> 00:04:13,55.91681193 And then now the electrification of transportation. 49 00:04:13,415.91681193 --> 00:04:24,129.0574015 And recently had founded Green Island EV, to build microtransit units in New York My home state, when I say microtransit, I'm talking type A school buses, smaller frame. 50 00:04:24,451.1435693 --> 00:04:26,771.1435693 Transit buses last mile delivery. 51 00:04:26,861.16624504 --> 00:04:29,572.50411352 And we're proudly raising money through Raise Green. 52 00:04:29,644.57894345 --> 00:04:33,401.06420422 And so after this meeting please visit raisegreen.com 53 00:04:33,421.06420422 --> 00:04:34,930.81477112 and click the invest button. 54 00:04:34,930.81477112 --> 00:04:36,682.49277565 Yeah, so we got Green Island EV. 55 00:04:36,802.49277565 --> 00:04:38,793.13903416 It's up on Raise Green's platform. 56 00:04:38,798.13903416 --> 00:04:50,909.37486182 That's how we connected here and so I'd love to be able to bring together our mutual knowledge about what's going on in this space to be able to talk about this, inflation reduction act here and how it's going to impact. 57 00:04:50,930.73540604 --> 00:04:53,515.0664718 The United States and where we're seeing this going. 58 00:04:53,515.0664718 --> 00:05:06,864.89640377 So I'd love to just put the question out there and Franz or John, if you wanna answer it, either one of you can think on this, but what do you see with this new bill, where do you see this going and how is it going to impact. 59 00:05:06,869.89640377 --> 00:05:15,352.20932894 The transportation community in terms of trying to make this transition to a a greener transportation movement. 60 00:05:15,357.20932894 --> 00:05:21,353.66057611 Where do you see this bill being able to impact the transition that we are having here? Great question, Billy. 61 00:05:21,413.66057611 --> 00:05:24,363.70592758 And I think at a high level I'll back up for a moment. 62 00:05:24,363.70592758 --> 00:05:32,847.35672123 Just to acknowledge how transformational, the last year and a half of legislation has been in this country for the transition to a clean energy economy. 63 00:05:32,852.35672123 --> 00:05:45,923.36579152 Not only did the Bipartisan Infrastructure Law pass, with an enormous amount of new funding for clean energy transition and specifically for school buses as well as other types of electrification of the transport sector. 64 00:05:45,928.36579152 --> 00:05:53,716.63109765 But also the CHIPS and Science Act pass, which provides fundamental research and development dollars into all sorts of climate solutions. 65 00:05:53,746.63109765 --> 00:06:02,512.09595025 And then as you noted, the Inflation Reduction Act passed with a Congressional Budget Office score of about $370 billion flowing into the space. 66 00:06:02,512.09595025 --> 00:06:06,782.11862599 But when the private sector analyzed this at Credit Suisse, they found that. 67 00:06:07,307.11862599 --> 00:06:10,647.11862599 Actually, it's more likely because there many of these programs are uncapped. 68 00:06:10,652.11862599 --> 00:06:16,777.11862599 There will be around 800 billion of US federal spending flowing into the climate and clean energy space. 69 00:06:16,777.11862599 --> 00:06:19,492.77622236 And that actually will catalyze another 1.7 70 00:06:19,492.77622236 --> 00:06:21,730.99617701 trillion, over the next 10 years. 71 00:06:21,740.99617701 --> 00:06:37,851.08687996 So what that means for investors is certainty, now, These technologies that may have been, questioned in the past now have the backing of the federal government, putting their dollars behind them and shoring up the market in a way that we really haven't seen, before this moment. 72 00:06:37,907.980304 --> 00:06:41,425.75808177 Whereas, folks made many bets in clean Cleantech 1.0 73 00:06:41,436.16624504 --> 00:06:42,966.16624504 and there was a lot of uncertainty. 74 00:06:43,17.92361465 --> 00:06:50,460.42928359 In this version of the economy and the transition that's happening in the climate tech age or climate Tech 2.0, 75 00:06:50,460.42928359 --> 00:06:55,323.05966908 we have that certainty of federal dollars coming behind it, and that's enormously beneficial. 76 00:06:55,369.83971443 --> 00:06:56,493.12769629 And Franz, good take. 77 00:06:56,525.37259425 --> 00:06:58,528.88733347 And I agree on all points, on its own. 78 00:06:58,528.88733347 --> 00:07:09,320.82610898 I think the Inflation reduction Act has little impact on its own, but part of a major transformational platform that Franz talked about, the 370 billion to 800 billion. 79 00:07:09,370.82610898 --> 00:07:10,150.82610898 That's meaningful. 80 00:07:10,431.48370536 --> 00:07:13,591.50638109 And certainly I think that you have to look at the IRA. 81 00:07:13,596.50638109 --> 00:07:14,316.50638109 For what it is. 82 00:07:14,316.50638109 --> 00:07:20,732.35672123 And for my seat, as a commercial operator looking to make money in commercial trucking, it's a catalyst. 83 00:07:20,732.35672123 --> 00:07:29,78.6605761 It's certainly not the end all solution that privately held, commercial fleets need, to help them migrate from a diesel based fleet. 84 00:07:30,100.34991851 --> 00:07:33,431.37032667 Electric or hydrogen fuel cell technology or whatever's next. 85 00:07:33,491.37032667 --> 00:07:42,442.28869402 Now I'm certain there's gonna be something next, it's certainly a catalyst to change and will help to accelerate probably a 20 to 30 year transformational movement. 86 00:07:42,800.38393211 --> 00:07:48,317.16397747 So the key point I wanna make is that we are still in the top of the first inning of a nine inning baseball game. 87 00:07:48,647.16397747 --> 00:07:57,866.09821783 It's really early days, and but I think the Franz's point again, I think all the bipartisan movement here, has demonstrated that this is for real. 88 00:07:58,13.86465774 --> 00:07:58,583.86465774 Yeah, definitely. 89 00:07:58,632.88960105 --> 00:08:03,247.88960105 It just shows that the federal government is putting funding money through this. 90 00:08:03,487.88960105 --> 00:08:22,194.62429493 So like Franz mentioned, it's a lot surer of an investment and do you see there're going to be a lot more research and development starting through this bill as well, like you mentioned before with the other bill? Or do you think there's gonna be a lot more startups being built from this bill here? I think you're gonna see both. 91 00:08:22,273.52452168 --> 00:08:23,413.52452168 you already are seeing both. 92 00:08:23,480.11182327 --> 00:08:36,758.80796839 The Energy Secretary, Secretary Granholm had a good hoc take on Chris Hayes just a couple days ago about how this has already catalyzed, billions of dollars of private sector investment into manufacturing plants in the US for. 93 00:08:36,763.80796839 --> 00:08:41,861.77848994 Battery materials for solar modules, and for actual, vehicles, OEMs. 94 00:08:41,921.77848994 --> 00:08:51,218.92134708 And that type of a stimulus really, is intended to and will and we saw it during the recovery act back in the Obama administration in 2009. 95 00:08:51,223.92134708 --> 00:08:53,683.92134708 It will pull an industry forward. 96 00:08:53,693.92134708 --> 00:08:55,403.92134708 And that's what it's intended to do. 97 00:08:55,525.21386409 --> 00:08:56,483.94402282 And it works. 98 00:08:56,545.87146046 --> 00:09:00,274.09141511 As John says, first couple pitches even of the top of the first inning. 99 00:09:00,274.09141511 --> 00:09:06,152.17531533 And those early at bats are important, to get on base and move the smart money in behind it from the private sector. 100 00:09:06,152.17531533 --> 00:09:13,607.02792304 From my standpoint where I sit seeing all these programs, many of which are backed up by the tax credit provisions. 101 00:09:13,612.02792304 --> 00:09:16,571.68778699 That are now open to, any types of technology. 102 00:09:16,571.68778699 --> 00:09:21,152.68551942 So their investment tax credit and production tax credit are largely industry agnostic. 103 00:09:21,202.3680591 --> 00:09:29,980.80343325 There's electric vehicle tax credits, there's manufacturing tax credits, and those coupled with the roughly a hundred programs that come from the Inflation Reduction Act. 104 00:09:29,990.80343325 --> 00:09:35,360.80343325 I think give us the basis of a new manufacturing strategy here in the us. 105 00:09:35,460.80343325 --> 00:09:47,454.63563279 That it underpins, the innovation both at the bench level as well as on the implementation, and commercialization side of the transportation sector, the energy sector home electrification, and more. 106 00:09:47,484.63563279 --> 00:09:55,899.0233879 So it's a really exciting time and frankly, I think 2023 is the year of climate investing, because all these programs are going into effect, over the next year. 107 00:09:56,114.0233879 --> 00:10:10,711.03019062 And on top of that, it's the year of climate investing both in the private market, but also the public market because a lot of the EV players have gotten hammered in the market in the last six to 12 months, which will correct itself with as the market proves out. 108 00:10:10,711.03019062 --> 00:10:17,126.89186862 I think relative to the IRA and new funding coming in for startups, is that, innovation's gonna come from startups. 109 00:10:17,436.89186862 --> 00:10:25,369.51091624 I think it's proof that, at one point in time, believe it or not, that Tesla was a startup and they really challenged the legacy OEMs to think differently. 110 00:10:25,384.51091624 --> 00:10:26,344.51091624 It took about. 111 00:10:26,354.51091624 --> 00:10:33,589.51091624 10, 15 years for the legacy OEMs on the consumer auto side, really to wake up and feel the pain of losing market share to Tesla. 112 00:10:33,599.51091624 --> 00:10:35,639.51091624 And I don't have to tell you that. 113 00:10:35,747.92361465 --> 00:10:41,107.10728812 Now the consumer EV market every consumer automotive OEM has an EV solution today. 114 00:10:41,119.01205003 --> 00:10:44,888.50184595 And a full pipeline of new products not just for 2023. 115 00:10:44,899.60161919 --> 00:10:46,309.60161919 To 24, 25. 116 00:10:46,549.60161919 --> 00:11:04,162.86692531 Now, in that innovation will continue because I think we'll start to see alternative fuel sources as we start to complement or even move away from lithium battery electric, right into, hydrogen and green and solar and who else knows what's in the pipeline of innovation. 117 00:11:04,162.86692531 --> 00:11:07,214.51091624 So I think specific, Billy to your challenge to us on. 118 00:11:07,244.51091624 --> 00:11:09,856.34765093 The startup community, I think, we have to be innovators. 119 00:11:09,856.34765093 --> 00:11:11,446.34765093 I'm talking, we, the startup community. 120 00:11:11,446.34765093 --> 00:11:15,586.34765093 We have to be innovative, but at the same time, you have to make money. 121 00:11:15,916.34765093 --> 00:11:19,404.272821 So you have to have innovation, but also something that you can sell to generate. 122 00:11:19,409.272821 --> 00:11:21,449.272821 Revenue and profits to fund your business. 123 00:11:21,504.272821 --> 00:11:22,936.24561012 And then you'll have proof of concepts. 124 00:11:22,936.24561012 --> 00:11:32,171.38166454 So it's not easy, it's hard, but the opportunities especially with this funding at the national level, the federal level loss of the state level is exciting. 125 00:11:32,176.38166454 --> 00:11:34,846.51771896 Yeah, it's all very exciting to see this coming through. 126 00:11:35,176.51771896 --> 00:11:36,316.51771896 And where do you see. 127 00:11:36,381.95989583 --> 00:11:39,822.25468041 The last six months we've seen this recession take hold. 128 00:11:40,152.25468041 --> 00:11:53,221.95989583 Do you see this bill as helping the climate tech sector in terms of investment over the next, 12 months, especially in 2023? Or do you see this, investment climate or economic climate? Yeah. 129 00:11:53,221.95989583 --> 00:11:59,691.5403947 How is that going to be impacted by this bill? I don't think that the correction in the EV market was recession based. 130 00:11:59,729.59028132 --> 00:12:00,568.97803642 Not the entirety. 131 00:12:00,568.97803642 --> 00:12:05,857.87826318 I think what drove the correction in the EV market was lack of a path to revenue. 132 00:12:05,862.87826318 --> 00:12:18,807.93495252 And I think that the smart investors came into the market and rationalized got behind the true leaders those that would survive and thrive and really penalized some of these companies that would never turn a profit or commercialize. 133 00:12:18,894.18211806 --> 00:12:28,67.93495252 And I think we can all agree that maybe 24 months ago, 30 months ago, there was a lot of companies that were funded via SPAC, that you could deem now reckless. 134 00:12:28,142.49277565 --> 00:12:30,285.41794572 It was based on just market frenzy. 135 00:12:30,295.41794572 --> 00:12:32,499.68098427 And some of these companies would never survive. 136 00:12:32,859.68098427 --> 00:12:35,825.88279833 And so I think it's humbled the community, the EV community. 137 00:12:35,830.88279833 --> 00:12:39,2.39073484 I think we've had to be smarter, had to be more pragmatic. 138 00:12:39,9.87372803 --> 00:12:41,367.28869402 And more realistic with our expectations. 139 00:12:41,367.28869402 --> 00:12:51,307.94629039 And so I think with the combination of the funding coming in at the federal and state levels, I think with innovation starting to settle some bit, innovation will always occur in transform. 140 00:12:51,312.94629039 --> 00:12:53,647.94629039 But now we have proof of concept, not just with Tesla. 141 00:12:54,41.27962372 --> 00:12:57,976.18892078 but you have a number of OEMs that are now coming to market with their EVs. 142 00:12:58,306.18892078 --> 00:13:10,89.78302508 And as we start to sell more and we start to drive EVs more, and we start to use EVs in the commercial let's say the school bus sector and the transit sector and last mile delivery we're gonna learn a lot. 143 00:13:10,122.00524731 --> 00:13:14,920.7127303 And from that learning we'll be able to step back and drive even more innovation in the market. 144 00:13:15,13.32044005 --> 00:13:18,334.82837656 Franz, did you have anything to add? No I, I honestly couldn't agree more. 145 00:13:18,364.82837656 --> 00:13:26,533.54719742 I think there's some super ambitious predictions out of Bloomberg that does probably in my view some of the best analysis on the EV market. 146 00:13:26,588.73994118 --> 00:13:31,100.93948767 And frankly, I think we are on pace to exceed them, in terms of deployment. 147 00:13:31,155.93948767 --> 00:13:38,993.58121103 Even despite the headwinds that we've seen, as John was saying, every OEM in the market now has, at least one EV model. 148 00:13:39,63.58121103 --> 00:13:41,692.980304 They're moving towards, fully electrified fleets. 149 00:13:41,712.980304 --> 00:13:44,71.31363733 Cities are moving toward. 150 00:13:44,145.79209538 --> 00:13:55,213.411143 Further cord and tolling or, policies to prevent internal combustion engines from, moving through town centers in a manner that pollutes those neighborhoods more aggressively. 151 00:13:55,242.14130173 --> 00:14:02,239.42021329 And I think the confluence though of the investment thesis that's emerging, around this safe government backed bet. 152 00:14:02,254.42021329 --> 00:14:10,880.81477112 And the technology becoming more ubiquitous and less risky, really leads to a super exciting time to be in the market. 153 00:14:10,927.59481647 --> 00:14:14,180.65604096 And frankly that's true across the board on climate solutions. 154 00:14:14,314.28415887 --> 00:14:16,542.17531534 The market signal I was just reading today. 155 00:14:16,606.37032667 --> 00:14:22,726.34765094 2022 was the first year that green debt products outpaced, fossil debt products worldwide. 156 00:14:22,796.71046273 --> 00:14:29,404.59028132 For the first time now you've got a bigger debt market funding climate solutions than you do fossil fuels. 157 00:14:29,414.59028132 --> 00:14:30,954.59028132 And I don't think we're going back. 158 00:14:31,13.51318382 --> 00:14:31,523.51318382 And Franz. 159 00:14:31,523.51318382 --> 00:14:38,419.22746953 I think you'll agree too if this is a battle for jobs, if you're at the state level, if you're a congressman, if you're a governor, you're fighting. 160 00:14:38,429.22746953 --> 00:14:51,719.38619969 For these jobs, I'm talking EV manufacturing jobs in and around the climate space, but specifically for, Green Island EV around EV and electrification and transportation, whether it's a battery electric plant. 161 00:14:52,104.38619969 --> 00:14:56,831.13223143 Whether it's a full assembly plant, that employ hundreds of people, if not thousands of people. 162 00:14:57,191.13223143 --> 00:15:00,489.93041738 And these are good paying jobs and I think there's a fight for it. 163 00:15:00,489.93041738 --> 00:15:05,488.61522463 Now, I'm not saying I know everyone has read the news, Wyoming came out and they're going the opposite. 164 00:15:05,551.90320649 --> 00:15:10,156.43835388 Wyoming has told the market that they don't want these types of jobs in Wyoming, but that's Wyoming. 165 00:15:10,156.43835388 --> 00:15:10,966.43835388 But if you look at. 166 00:15:11,16.74447633 --> 00:15:13,896.74447633 The leadership in California and to look at the leadership in New York. 167 00:15:13,896.74447633 --> 00:15:21,265.22520196 And I would suggest even the leadership in Texas with Tesla moving in a big way to Texas I think it's a battle for jobs. 168 00:15:21,317.78756023 --> 00:15:22,81.07554209 Good paying jobs. 169 00:15:22,86.07554209 --> 00:15:23,483.10502055 And these are manufacturing jobs. 170 00:15:23,483.10502055 --> 00:15:30,119.28415887 These are, solid middle class, blue collar jobs that everyone is looking to grow in their state at the local level. 171 00:15:30,129.28415887 --> 00:15:40,943.04833121 Investing in the clean energy economy compared to investment in the traditional economy does create more induced job years, more direct job years and more indirect job years. 172 00:15:40,986.88053075 --> 00:15:43,426.88053075 And there's plenty of studies to support that. 173 00:15:43,431.88053075 --> 00:16:01,657.64016794 It's absolutely right what John's saying that, this is a tremendous opportunity not just to transform into an economy that produces less pollution and end result as healthier people, but also one in which we have more gainfully employed society, working, in our communities to build those technologies and deploy them. 174 00:16:01,662.64016794 --> 00:16:17,387.64016794 And John, you brought up the Wyoming, trying to go the opposite direction of saying they're gonna reduce the number of sales of EVs, I just think it's funny because it's the oil and gas industry is going to die no matter whether they're selling EVs or not. 175 00:16:17,387.64016794 --> 00:16:21,807.39300241 So they're trying to control something that's, Like you're trying to hold water. 176 00:16:21,807.39300241 --> 00:16:23,607.39300241 Like it's just gonna fall through your fingers. 177 00:16:23,612.39300241 --> 00:16:25,557.39300241 Like you can't stop this transition. 178 00:16:25,557.39300241 --> 00:16:27,477.39300241 You can't chop stop this change. 179 00:16:27,500.93041738 --> 00:16:36,621.44062146 You trying to put a law and prevent EV sales is not going to help no, it reminded me of that comedy a few years ago about the tobacco industry. 180 00:16:36,621.44062146 --> 00:16:38,884.75127905 A tobacco lobbyist, thank you for smoking. 181 00:16:39,274.75127905 --> 00:16:46,942.6197598 So it's almost as if they're gonna, start promoting cigarettes again as a healthy alternative for your diet or healthy way of living. 182 00:16:46,957.427016 --> 00:16:51,411.9394877 I was really perplexed by that, but I agree, Billy, I think it is driven by the oil and gas industry. 183 00:16:51,411.9394877 --> 00:16:56,496.9394877 But however you look at Texas, which is a oil and gas, petroleum based, economy. 184 00:16:56,511.9394877 --> 00:16:58,701.9394877 A lot of people there, but here they are. 185 00:16:58,706.9394877 --> 00:17:04,531.9394877 We're able to attract the number one EV company on the planet, which is Tesla, to do business there. 186 00:17:04,581.9394877 --> 00:17:07,823.6628437 Not just manufacturer there, but really to expand their business there. 187 00:17:07,888.5381271 --> 00:17:14,888.3340455 And so I think you'll see petroleum-based states, economies like Texas come out and say, you know what, this makes economic sense. 188 00:17:14,976.5993516 --> 00:17:20,579.2637507 This just is not a good thing to help save the planet and help create a healthier way of transportation. 189 00:17:20,579.2637507 --> 00:17:22,642.6424355 But I think it makes fiscal sense to do it. 190 00:17:22,667.3022995 --> 00:17:28,646.8374469 Yeah, and that's why that Texas is the leading producer of renewable energies. 191 00:17:28,651.1322314 --> 00:17:36,121.1322314 They have the leading number of installations of solar and wind out of any other state that's going on right now. 192 00:17:36,186.6424355 --> 00:17:40,245.0551339 Even in an economy like that they're seeing this as an opportunity to. 193 00:17:40,277.2773562 --> 00:17:45,977.3000319 Convert to a cheaper, more, efficient fuel to create energy. 194 00:17:45,977.3000319 --> 00:17:47,920.3499185 So like you said, it makes fiscal sense. 195 00:17:47,920.3499185 --> 00:17:49,90.3499185 It makes business sense. 196 00:17:49,118.411143 --> 00:17:55,325.1911883 If you are a business professional and looking at the numbers and you're saying, okay, I can save money by doing this. 197 00:17:55,714.70366 --> 00:17:56,704.70366 That's what you're gonna do. 198 00:17:56,754.70366 --> 00:18:01,118.2637507 It is not anymore a question of oh, I'll do this, but I'm gonna take a hit on the back end. 199 00:18:01,123.2637507 --> 00:18:03,733.2637507 You do this because you're gonna save money. 200 00:18:03,733.2637507 --> 00:18:11,167.9349525 So even if you're not even caring about the environment, you're going to, save money in this way, So it's just makes sense. 201 00:18:11,172.9349525 --> 00:18:13,693.2977643 And so we got onto the topic of infrastructure. 202 00:18:13,693.2977643 --> 00:18:20,635.8034332 Where do you guys see, the infrastructure of the grid being able to change over to more cleaner fuels with this Inflation Reduction Act. 203 00:18:20,673.8306441 --> 00:18:25,66.1889208 I'll give you the non-politically correct answer, and that is we're nowhere near being ready for it. 204 00:18:25,165.8487847 --> 00:18:37,34.1254287 If you add up all the projections from the OEMs and even the legacy OEMs, but even the startup OEMs, and if you were to compile all of the projections for deliveries in 2023. 205 00:18:37,79.1254287 --> 00:18:37,829.1254287 That's fine. 206 00:18:37,829.1254287 --> 00:18:43,822.2546804 You might be able to make them and ship them, but there's no way to serve them properly from an infrastructure support. 207 00:18:44,152.2546804 --> 00:18:45,592.2546804 We're nowhere near being ready. 208 00:18:45,597.2546804 --> 00:18:47,32.2546804 Now, there's pockets of brilliance. 209 00:18:47,52.7081952 --> 00:18:57,762.0959503 There's certain utility companies that are working very closely with, the municipalities and the communities in the businesses, in those communities to bring the required infrastructure to support that fleet. 210 00:18:58,92.0959503 --> 00:19:00,942.0959503 But we are nowhere near being ready for it. 211 00:19:01,14.2274695 --> 00:19:03,185.225202 And that's just not my personal opinion. 212 00:19:03,425.225202 --> 00:19:05,45.225202 I wish it were true, but it's not. 213 00:19:05,405.225202 --> 00:19:18,888.6265625 So I think if you look at some of the funding that's available, maybe Franz has a better view is really geared towards building out infrastructure, not just building it, but accelerating the buildout of infrastructure to support these high aspirations. 214 00:19:18,898.6265625 --> 00:19:19,78.6265625 Yeah. 215 00:19:19,78.6265625 --> 00:19:26,242.4700999 John, I think as again, spot on the, deployment of, electric vehicle charging stations, particularly for light duty vehicles. 216 00:19:26,282.5948165 --> 00:19:30,512.5948165 I think the president has a goal of 500,000 charging stations across the country. 217 00:19:30,522.5948165 --> 00:19:32,569.1254287 We're not there yet but we are headed there. 218 00:19:32,569.1254287 --> 00:19:38,743.6379004 And the money actually from the bipartisan infrastructure law, I know because I was just talking to our local commissioner here. 219 00:19:38,748.6379004 --> 00:19:46,735.2818913 In DC about the district's plan to cite all those charging stations and then use the federal dollars to build them. 220 00:19:46,745.2818913 --> 00:19:49,435.304567 And so it is moving those programs are moving and. 221 00:19:49,542.3567212 --> 00:19:58,834.3068346 I think we're gonna see a lot of construction around us in the next year and a half, and that will result in the infrastructure transforming pretty rapidly thereafter. 222 00:19:58,933.0143176 --> 00:20:01,641.7558142 Or as it gets built out, and frankly, it's true. 223 00:20:01,696.5403947 --> 00:20:15,539.6016192 We're still on a net scale at a global level, about three to six times behind where we need to be in terms of investment in climate and clean energy solutions to truly, prevent catastrophic warming. 224 00:20:15,539.6016192 --> 00:20:22,906.5517326 And yet as we've been discussing, every market signal now, is being sent and is starting to hotwire big time across markets. 225 00:20:22,956.5517326 --> 00:20:29,807.288694 And you saw also ESG and, climate and clean energy investments during the downturn of last year. 226 00:20:29,862.7422088 --> 00:20:30,582.7422088 outperform. 227 00:20:30,582.7422088 --> 00:20:35,947.7081952 It's a good time for me to remind folks I don't give financial, legal, or accounting or tax advice. 228 00:20:36,36.7331385 --> 00:20:42,946.0982178 Clearly the work that, is being done in the clean energy economy is working and, that really is the future, that we see. 229 00:20:43,107.7648845 --> 00:20:43,587.7648845 I agree. 230 00:20:43,597.7648845 --> 00:20:55,550.4973108 And would you guys like to add any last things before we wrap it up here? Franz, We run an investment marketplace to let more people invest in this transition for as little as a hundred dollars. 231 00:20:55,550.4973108 --> 00:20:57,230.4973108 And we'd love for folks to check it out. 232 00:20:57,230.4973108 --> 00:20:58,710.4973108 It's at raisegreen.com. 233 00:20:58,737.889601 --> 00:21:00,982.889601 We have, vetted startups on there. 234 00:21:00,992.889601 --> 00:21:11,500.0551339 Such as John's and it's a place for folks to come join our community, learn about the clean energy technologies, learn about the financing of those projects and companies. 235 00:21:11,567.1526396 --> 00:21:16,303.1276963 And ultimately, if you decide it's appropriate for you make an investment in companies that you believe in. 236 00:21:16,308.1276963 --> 00:21:19,134.6583085 And an easy place to find out more about Green Island. 237 00:21:19,184.6583085 --> 00:21:21,916.7218006 go to greenisland ev.com 238 00:21:21,926.7218006 --> 00:21:36,63.4564945 and click the Invest button to bring you into, the raised green site where you're gonna find not just Green Island EV, but you're gonna find probably a dozen companies, that are doing a whole host of unique things to help solve this problem. 239 00:21:36,73.4564945 --> 00:21:39,113.4564945 And I think the Franz's point, he can't say it, I'll say it. 240 00:21:39,457.0165852 --> 00:21:50,790.5993516 It's a great time to buy low, to eventually sell higher and make some money while investing in a purpose-driven, space of really fine individuals trying to, do great work and create jobs. 241 00:21:50,838.0596691 --> 00:21:53,501.2682859 I can't stress enough that Green Island EV has started. 242 00:21:53,501.2682859 --> 00:21:55,854.4882405 Yes we have ambitions to help save the planet. 243 00:21:55,854.4882405 --> 00:22:00,859.7263357 But really what our purpose is to create jobs for upstate New York and we're pretty proud. 244 00:22:00,880.3839321 --> 00:22:01,994.9190795 And there's sustainable jobs. 245 00:22:02,22.9689661 --> 00:22:04,754.5789435 You're building something that's going to be sustainable for the future. 246 00:22:04,754.5789435 --> 00:22:04,814.5789435 Yeah. 247 00:22:05,114.5789435 --> 00:22:09,270.996177 That's not, based in a fossil fuel that's going to, run out. 248 00:22:09,270.996177 --> 00:22:11,10.4519593 It's something that's really based in the future. 249 00:22:11,23.9666986 --> 00:22:11,817.2546804 It's a great time. 250 00:22:11,817.2546804 --> 00:22:13,48.7172654 So thank you both for. 251 00:22:13,403.7172654 --> 00:22:15,923.7172654 Coming on to the podcast here. 252 00:22:15,923.7172654 --> 00:22:22,13.7172654 It's been really awesome having both of you on talking about the Inflation Reduction Act, talking about what you guys are doing. 253 00:22:22,13.7172654 --> 00:22:24,983.7172654 So thank you so much both of you for coming on the show. 254 00:22:24,988.7172654 --> 00:22:42,628.7172654 And if you enjoyed that interview with Franz Hochstrasser and John Gillie, as we talked all about the Inflation Reduction Act and its impact on Green Tech Startups, then I invite you to check out this interview with DC Palter from Pitching Angels. 255 00:22:42,678.7172654 --> 00:22:47,998.7172654 He is an angel investor who has invested in over 10 green tech startups. 256 00:22:49,33.7172654 --> 00:22:58,663.7172654 Over 40 different startups altogether, and he talks about his experience mentoring and investing in green tech startups. 257 00:22:58,753.7172654 --> 00:23:04,63.7172654 And we also touch on what it takes to catch the eye of that angel investor. 258 00:23:04,243.7172654 --> 00:23:08,173.7172654 So make sure you check out this interview with DC Palter.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.