Power to the People: EY's Renewable Energy Index Ranks Country Attractiveness

For the past ten years, Ernst & Young has published a quarterly index analyzing the attractiveness of countries around the world for developing renewable energy.

Called the Renewable Energy Country Attractiveness Index (or RECAI, for short), the index has provided a barometer of the renewable energy sector.

Established in 2003, the quarterly publication ranks 40 countries for their "attractiveness" of renewable energy investment and deployment.

The latest edition of the RECAI cites energy demand, natural resource, technology costs, access to finance, and global competitiveness as key influences for investors.

Global annual clean energy investment totaled US$269b in 2012, representing a five-fold increase on 2004, according to the report. And the sector is now becoming competitive with more traditional fossil fuel energy sources.

New and improved technologies, such as cheaper, more efficient solar panels, biomass boilers, and even small wind turbines, are those technologies cited by the Index that allow energy users to generate their own power where and when they need it.

This "democratization" of energy sources provides greater flexibility when it comes to energy generation and management.

The latest RECAI includes a revised, updated methodology reflecting shifts in investment drivers and the sector's maturing since the report’s creation 10 years ago.

An increased focus on the role renewable energy plays in each country’s energy mix, energy supply and demand, and the cost competitiveness of renewable energy, are some of the changes reflected in the new methodology, according to its editors.

As with other country attractiveness indices, EY has also adopted an increased emphasis on the economic and political stability of each particular market.

"Market fundamentals, such as energy demand growth, security of energy supply and the affordability of renewable energy, feature as some of the most prominent drivers of renewable energy growth today," says RECAI's chief editor Ben Warren.

"Our revised methodology allows us to analyze each market's investment attractiveness much more effectively by considering these factors and weighting them accordingly," claims Warren, who serves as Ernst & Young UK Energy and Environmental Finance Leader and Global Cleantech Transactions Leader.

The revised index sees the US regain the top spot in terms of attractiveness, as high barriers to entry for external investors realign China into second place.

Despite that change, the RECAI finds prospects for growth for the sector in China remain strong with continued GDP growth, increasing energy demand, and the ongoing strategic importance of the sector to the local economy providing solid foundations for the future.

You can download the latest RECAI at www.ey.com/recai

(Disclosure: The author is marketing director for EY's Global Cleantech Center, which is one of the sponsors of the RECAI.)

Is Cleantech a Dirty Word?

He used the "C" word.

"Is Cleantech a dirty word?"

I was asked this question over lunch today -- it's something that comes up regularly, like some disagreeable food.

Just a few months ago, when we began planning for our 5th annual Mid-Atlantic Cleantech Investment Forum, my friends and co-hosts at BlankRome's Venture Group announced that we were changing the name of the event to Mid-Atlantic Energy Technology Investment Forum. 

They even asked whether we were changing the name of our group, Cleantech Alliance Mid-Atlantic. My co-founder hedged and said we'd discuss it later.

Adam Lesser, writing over at Giga.om last month, asked, "Does the 'cleantech sector' need a new name?" 

"'Cleantech' is a dirty word right now in venture investing circles," Lesser posits. "And for me has never defined a sector as much as an idea—that we should leverage technology for the betterment of the earth." 

Over the past few years, we've had "clean energy" and "advanced energy"; once the favored term was "renewable energy" and even "alternative energy." And then there was the battle over "cleantech" or "greentech." And now there's even something called "cleanweb."

A year ago, Lesser's colleague at GigaOm, Katie Fehrenbacher asked whether it was time to bury the term.

Even as far back in September 2011, I wrote about Cleantech having a black eye and branding problem. (Longtime cleantech investor John Doerr referred to "Energy Tech," at an event I was covering.)

The question remains whether this is just a down cycle for cleantech.

Is the sky falling for cleantech, as I asked in a post last summer?

Or are we, as an investor friend of mine suggested six months ago, simply in Gartner's trough of disillusionment, shortly to be ascending the slope of enlightenment?

For now, I'm sticking with the "C" word. Get out the Lifebuoy!

C3 Summit: Alternative Energy vs. Fossil Fuel Supplies

There is little doubt that we are going to run out of fossil fuels one day. Yet, our demands for energy will not decrease. Despite the promise of renewable energy, collectively renewables provide only about 7 percent of the world’s energy needs. So where do we go from here?

A few weeks ago, I participated in a panel at the C-3 Summit in New York. The Summit is "an exclusive event dedicated to building new relationships, fostering existing partnerships and exchanging best practices between the U.S. and the Arab world by building a cohesive global community through collaboration and international commerce."

The panel was moderated by Dan Nelson, a former ExxonMobil executive who now runs a consultancy called International Strategic Insights.

It was a great panel, with particularly smart insights coming from the other panelists, including Ambassador Jarl Frijs-Madsen, Royal Danish Consulate General, Mark Fulton of Deutsche Bank, David Pursell of Tudor Pickering Holt & Co, and Peter Gish of UPC Renewables.

My own modest contribution focused on the price and perception issues related to renewable energy and what I learned from spending time with Tom Hicks of the US Navy earlier in the week.

Here is the video of the panel:

Wind Industry Just Hot Air? The Green Skeptic on FOX Business

On Tuesday I sat down with Stuart Varney & Company on FOX Business to talk about wind power and the relative merits of distributed generation versus big wind farms, including the need for transmission and grid infrastructure improvements to make big wind viable.

Here's the video:



And here's a link in case the player doesn't work in your browser: Green Skeptic on FOX Business

Clean Energy Is the New Black -- Eye, That Is...

The Tonight Show, Starring John Doerr

There's so much noise about "clean energy" and "green jobs" and "Obamacare"...oh, well, maybe not Obamacare, but it's tainted by the same brush these days, I'm afraid.

I was talking with my cleantech colleague Scott Moon of Ernst & Young the other day at the ribbon cutting for Renmatix's new technical facility in King of Prussia, PA.

Renmatix has developed a technology that converts wood waste into cellulosic sugar for use in biofuels and biochemicals.  It's not just an energy play.

The world in which we live -- tech, manufacturing and service companies that are trying to disrupt energy, building materials, chemicals, and even finance -- is getting a black eye from a peanut gallery full of enemies. 

As if that wasn't enough, then came Solyndra, which was like getting hit by friendly fire as we were taking the hill.

"We can't get a break," I said to Scott.  "Good companies that have solid solutions and good products and even customers lined up out the door are being lumped into the rubbish bin of broken dreams."

Even my pals at Fox Business are trash-talking the entire sector while attacking the President's policies and insider shenanigans.

"We need to come up with a new name for 'cleantech,'" Scott said. "I can't get anybody to pay attention to it."

Inside the spartan facility, Renmatix's presentation was beginning.  John Doerr, venture partner at Kleiner Perkins Caufield & Byers, and a long-time advocate of and investor in cleantech, came on the stage to a rock music intro.  It was a talk show entrance.  He even did a Johnny Carson move to silence the music.

"There were basically three revolutions over the past 30 years," Doerr related. "computer technologies: IT; biotech: BT; and now we have the third, energy tech or ET."

"Energy Tech."  With all due respect to Mr. Doerr or my brethren at Enertech Capital, who were prescient in being inclusive when naming their firm, I'm not sure that does it either.

Sure you can lump stuff like "clean coal," natural gas, nuclear, and maybe even tar sands under the "ET" label, but wasn't that what "clean energy" was accomplishing over "renewable energy."

At the end of the day, we really need to find not a new brand, but to make a better case for the energy technologies we need to power the future. 

The debate over whether we can make money in this stuff has started, but that's still too early.  The real test is still a way off.

Until we do make some green from green, however, we'll never see cleantech, clean energy or even energy tech become the new normal.  And I just hope we don't get caught with the lights off one day.

Why Does Energy Efficiency’s Promise Remain Unfulfilled?

Jon R. Luoma, a contributing editor at Audubon, tries to explain why the promises of energy efficiency haven't been fulfilled in latest Yale Environment 360:

Among the many measures the world can take to wean itself off fossil fuels, few match the benefits of making homes, business, and cars more energy-efficient. But financial and psychological barriers have kept individuals, businesses, and governments from realizing efficiency’s great potential.

Read the full post here: Energy Efficiency

President Obama Speaks at Penn State About Clean Energy

Last Thursday, President Obama spoke at Penn State about "encouraging and investing in innovation and clean energy technologies to create new jobs, grow the economy, and win the future."

Here is a video of the speech:




And here is a link to a transcript of the speech: Obama at Penn State

Green Skeptic Friday LinkFest - 02/04/11

NOAA/NASA GOES Project

Going to extremes this week -- from Florida, where it was in the 70s-80s to Philly and ice, ice baby...

The storm that rocked the Central Midwestern US and Northeast missed us, but would you look at that satellite image (at right)?

Here are some links for this week:

Katie Fehrenbacher of Earth2Tech asks, Are Consumers Ready for Home Energy Management in 2011?

John Thackara, writing in Design Observer, suggests WWF's Energy Report takes "global energy needs" as a given, but ignores the true costs of deploying renewable energy infrastructure: Renewable Energy: Salvation or Snake Oil?

The BBC's environment reporter Richard Black has a look at a Nature Conservancy report published in the journal BioScience and finds "one of the starkest conclusions I've seen about humanity's relationship with the oceans"..."Globally, 85% of oyster beds have basically disappeared.": Oysters clear seas for local remedies.

Teryn Norris of Americans for Energy Leadership catalogs The Rise of Innovation Hawks.

FrumForum's David Frum takes on Obama's 'China Envy.'

And, finally, you must read Umair Haque's "Ten Things You're Not Allowed to Say at Davos."

Have a great weekend!

First Solar to Build Solar Module Factory in Ho Chi Minh City

First Solar (NASDAQ:FSLR), a United States-based solar panels manufacturing company, has reportedly received investment license to build a solar modules producing factory in Ho Chi Minh City, Vietnam. The company has plans to invest around $1 billion in the project.

The proposed plant will be constructed in Dong Nam Industrial Zone located in Cu Chi District and will manufacture thin film solar modules. In the first phase of the project the plant will have four operating lines to manufacture a maximum of 238 MW every year. The company has plans to increase the production capacity by four-fold in the next phase.

According to Tymen DeJong, First Solar’s Deputy Director In-charge for its global productions, the first phase of the construction work will commence in January 2011 and the plant is anticipated to become functional from the middle of 2011.

Source: First Solar

(Disclosure: I hold a long position in FSLR. This post is for informational purposes only and is neither intended to be investment advice nor an offer, or the solicitation of any offer, to buy or sell any securities.

80 Percent Clean Energy by 2035? I'm Skeptical, Mr. President

Source: AE2011, US EIA

I missed President Obama's State of the Union address last night because I was meeting with the good people at Investor's Circle.

On my way home, however, my Twitterstream was all abuzz  about the President's shout-out to a clean energy future.

Did he really commit to "80 percent of America's electricity will come from clean energy sources" by 2035?

Apparently, he did. It's right there in the transcript (along with a liberal sprinkling of the word "applause").

While many applaud the sentiment, some of us remain skeptical about the feasibility of such a target.

Don't get me wrong, I agree with two of the statements the President made on clean energy. The first is, "clean energy breakthroughs will only translate into clean energy jobs if businesses know there will be a market for what they're selling."

True enough. And it is also true that industry needs a clear signal on the price of carbon or the regulatory constraints they will face. Still to be determined how we get that, and no mention of it last night.

I also agree with the President that we need it all: wind, solar, clean coal, natural gas...and nuclear.

But 80 percent renewables clean energy by 2035? Well, I'm skeptical.

Even our own US Energy Information Administration's Annual Energy Outlook for 2011 (AE2011), released late last year, projects that renewables will climb to only 14 percent by 2035. This does not take into account natural gas, which they project will climb to 25 percent, or nuclear, at 17 percent.

If you take an inclusive view of clean energy, that adds up to 56 percent by 2035. With coal at 43 percent in the AE2011 (and the last one percent coming from "oil and other liquids") making up the difference, I'm assuming a large chunk of that is going to have to become -- rather quickly -- clean coal.

And by the way, China, with its aggressive investments in clean technologies, has set a goal of 15 percent of its energy from renewables by 2020 and 30 percent by 2050.

So forgive me if I remain skeptical about the 80 percent target. I'd prefer to see a realistic plan, with real targets, real investment (public and private), and a real demonstration that the political will exists to make it happen.

US-China Cleantech: A Call for Cooperation and Healthy Competition

Image via Wikipedia

All eyes will be on Washington when Chinese President Hu Jintao comes to town to meet with President Obama this week.

While the two leaders have much to talk about, including the situation in North Korea, ongoing trade, currency, and human rights issues, we hope they leave room on their agenda for constructive dialogue on cleantech and energy.

 

The two countries began a collaboration in November 2009 launching the joint US-China Clean Energy Research Center, with financial support to the tune of $150 million over five years coming from both sides.
 

Yet recent conflicting statements from Obama administration officials demonstrate ambivalence when it comes to US-China relations on cleantech and energy.  

 

Department of Energy Secretary Chu has called China's cleantech ramp-up our "Sputnik moment"; while Secretary of State Hillary Clinton recently called for "implementing the agreements on transparency, funding and clean-energy technology."

The Hu-Obama meetings could set the tone for relations.  Let's hope it is more about cooperation and healthy competition than posturing and protectionism.

 

 

 

Cape Wind's Search for Buyers: The Green Skeptic on FOX Business

This morning I spoke with Stuart Varney and Company about the Cape Wind project.

Cape Wind is proposing America's first offshore wind farm on Horseshoe Shoal in Nantucket Sound. Miles from the nearest shore, 130 wind turbines will harness the wind to produce up to 420 megawatts of clean, renewable energy.

The developer has sealed a deal with the utility National Grid for half its power, but is still seeking a buyer for the other half.

Here is the video:



If the player doesn't work in your browser, here is a link to the video:

GS on FOX Biz

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FiTs and Starts: Are Feed-in Tariffs Fit to Be Tried?

Image via Wikipedia

NREL, Golden, CO

With the death of Cap-and-Trade legislation in the Senate, Feed-in Tariffs (FiTs) are starting to become more and more attractive to renewable energy boosters.

But are FiTs all they are cracked up to be?

NREL, the National Renewable Energy Laboratory, recently released a A Policymaker's Guide to Feed-in Tariff Policy Design that largely sings the praises of various FiT schemes.

According to a Deutsche Bank study quoted in the NREL guide, 75 percent of global solar PV and 45 percent of wind development are directly related to FiT schemes. In the European Union alone, over the past ten years, FiTs have led to the deployment of 15,000 MW of solar PV and 55,000 MW of wind power.

The benefits of FiTs are obvious to the renewable energy (RE) industry, as NREL states, FiTs drive "market growth by providing developers long-term purchase agreements for the sale of electricity generated from RE sources. These purchase agreements, which aim to be both effective and cost-efficient, typically offer aspecified price for every kilowatt-hour (kWh) of electricity produced and are structured with contracts ranging from 10-25 years."

Furthermore, "payment level can be differentiated by technology type, project size, resource quality, and project location."

And therein lies the rub. FiTs do not a free market make: 1.) Fixing the price doesn't mean the best price for consumers or taxpayers and 2.) the government picks the technology, site or size of the project.

While you can't argue with success, we are already seeing that such success can lead to excess.

According to a renewable energy player familiar with a variety of country-based FiT policies, such schemes have led to an excess of solar development (viz. the German example) or prices that don't take into account future efficiencies and cost-savings, which can result in windfall profits for developers and manufacturers.

More of our focus needs to be on making renewables more efficient and cost-effective so they don't have to rely on government props and subsidies. The example of Spain should be a warning, where retroactive cuts to their FiT scheme due to the bad economy may endanger that country's solar industry and renewable production altogether.

Fixing prices and picking technologies shouldn't be the job of governments. I'm not saying that FiT schemes can't be properly designed to allow as free a market as possible, I just don't want to see us all go to Abilene yet again chasing the latest "Get FiT" fad.

 

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Kerry-Lieberman American Power Act

I've been away this week and am just starting to catch up on the news.

Thanks to our friends at The Green Energy Reporter for pointing me to Brad Johnson's analysis of the Kerry-Lieberman American Power Act from Think Progress/The Wonk Room:

A First Look At The Details Of The Kerry-Lieberman American Power Act

The side-by-side comparison between Obama's Campaign Promises, the Waxman-Markey Bill, and the Kerry-Lieberman Bill is particularly useful.

The full text of the American Power Act is in PDF here: APABill.pdf

The Green Energy Reporter also published some of the reactions to the Bill: Reactions

CleanTechies provides a roll-call of business response to the Bill: Business

And Joe Romm at Energy Collective wrote about the offsets component of the Bill here: Romm

For a take on the Bill's impact on employment, see the Gerson-Lehrman Group's analysis.

Republican Senator James Inhofe also weighed in on the Bill, calling it "the same old cap-and-trade scheme that the Senate has defeated three times since 2003": Inhofe

Will it pass? It is hard to see it mustering the 60 votes needed without the support of Republican Senator Lindsay Graham, who was supposed to be the third sponsor of the Bill, and with the offshore drilling provisions causing Graham and others to pause in the wake of the oil spill in the Gulf.

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Clean Energy Trends 2010: Hope Springs Eternal

Green shoots are starting to poke up out of the ground in my yard, a sure sign that Spring is on its way.

Hope springs eternal for the cleantech sector as well, according to the folks who bring us the Clean Energy Trends annual report, despite the downturn in the overall economy and failure at Copenhagen.

The 2010 report was issued today by Clean Edge Inc., a research and publishing firm devoted to the cleantech sector.

In 2009, according to the report, "combined global revenue for the three major clean-energy sectors – solar photovoltaics (PV), wind power, and biofuels – grew by 11.4 percent over 2008, reaching $139.1 billion."

These three sectors are expected to reach $325.9 billion by 2019, according to Clean Energy Trends 2010.

Venture investing in the sector declined, according to Bloomberg New Energy Finance and quoted in the report, but as a percentage of overall venture funding the sector share increased from 11.4 percent in 2008 to 12.5 percent in 2009.

Readers of The Green Skeptic will be particularly interested on the report's take on China.

China was just a minor player five years ago and now leads the race for cleantech dominance. However, according to Ron Pernick and Clint Wilder, the principal authors of the report, despite the country's surge, it is "too early to declare China the de facto winner."

"No one country or region will lead in all energy sectors," the authors reported on a conference call this morning. "China also faces significant challenges dealing with air and water pollution, and entrepreneurship is difficult there."

This last point contradicts MIT political scientist and China expert Ed Steinfeld's assertion that China is "one of the most entrepreneurial places on earth," which appeared in a Business Week article last Friday. (The article cited China's rate of self-employment far exceeds that in the U.S.—51.2 percent to 7.2 percent.)

Nevertheless, as Pernick said in an interview after today's conference call, "The challenge for China is can you build cleantech on the back of polluted air and waters?"

Their sense is that China is working on this issue simultaneously with the cleantech build-out. "And they are taking the opportunity to leapfrog where they can," Pernick said.

Key findings of the Clean Energy Trends report include:

• The global production and wholesale pricing of ethanol and biodiesel reached $44.9 billion in 2009 and is projected to grow to $112.5 billion by 2019. In 2009, the biofuel market consisted of more than 23.6 billion gallons of ethanol and biodiesel production worldwide.
• Wind power (new installation capital costs) is projected to expand from $63.5 billion in 2009 to $114.5 billion in 2019. Last year’s global wind power installations reached a record 37,500 MW. China, the first-time global leader in new installations, accounted for more than a third of new installations, with 13,000 MW
• Solar PV will grow from a $30.7 billion industry in 2009 to $98.9 billion by 2019. New installations reached almost 6 GW worldwide in 2009, a nearly sixfold increase from five years earlier. But because of rapidly declining solar PV prices, industry revenue in 2009 fell about 20 percent, from $38.5 billion in 2008.
• The global solar PV and wind power industries together currently account for a total of more than 830,000 jobs worldwide. By 2019, global industry growth will push the total to more than 3.3 million jobs.

The report also includes an IPO Watch List tracks clean-technology companies that have recently filed for IPOs, including Codexis, Fallbrook Technologies, Solyndra, and Tesla Motors, as well as other likely candidates, such as Silver Spring Networks.

Finally, the authors identify 5 key trends for the coming years:

• Carbon as a Feedstock (They cite the Khosla-backed Calera and its captured-carbon cement, which may see investment from Peabody Coal)
• Steep PV Price Drops Redefine the Solar Industry (Companies to watch include FSLR, Sharp, SunPower, Trina Solar, and MEMC Electronic Materials)
• Biomass Utilities and District Heating (Adage Biopower, District Energy St. Paul, First Energy, Viessman, and Xcel are among their comapnies and projects to watch)
• Clean-Tech Megaprojects (Masdar City has delayed its construction targets; China has apparently abandoned plans for Dongtan, a new eco-city near Shangai; although hope is on rise for two solar megaprojects in China from FSLR and eSolar);
• High Speed Rail (China leading the way again; Central Japan Railway has two maglev joint ventures in the US)

Once again, the Clean Edge guys have provided a good overview of the state of cleantech trends. This is valuable information for investors and entrepreneurs in the sector.

For more information about the Clean Energy Trends 2010 report or the other research conducted by Clean Edge, go to http://www.cleanedge.com./

(Disclosure: I hold long positions in FSLR. This post is for informational purposes only and is neither intended to be investment advice nor an offer, or the solicitation of any offer, to buy or sell any securities.)

Federal Subsidies Visualized

Timothy B. Hurst posted on this earlier this week on The Energy Collective, and it is worth checking out his post and the comments: Think Renewables Need Huge Subsidies?

China Tops US in New Wind Installation

In the latest indicator that China will be eating our lunch on cleantech and renewable energy, the country has now taken the lead in new wind energy installed in 2009, according to the Global Wind Energy Council.

China's 13,000 megawatts added last year led the pack. The US was second with 9,922 MW, followed by Spain at 2,459 MW, Germany at 1,917 MW and India at 1,271 MW. (See chart here)

The US held on to the top spot in cumulative wind energy capacity with 35,159 MW, or 22 percent of the world’s wind energy capacity. (See chart here.)

Germany is No. 2 in total installed capacity at 25,177 MW, or 16.3 percent; China is gaining at 25,104 MW, or 15.9 percent. Spain (19,149 MW) and India (10,926 MW) also make the top five.

I've said it before and I'll say it again: we better get our act together or all start learning Mandarin.

Source: Environmental Leader

Review: Ray Anderson's "Confessions of a Radical Industrialist"

"Will we bankrupt the future, or assure it?" Ray Anderson asks in his new book, Confessions of a Radical Industrialist. "Or should we find ways to create wealth sustainably through the efficient use of resources, renewable energy, and closed-loop manufacturing processes that use recycled waste as raw materials?"

Anderson has been at the forefront of the sustainability movement for some time. But for 20 years he was your typical plunderer, to paraphrase the author.

He "founded Interface in 1973 to equip the emerging, technology-driven 'office of the future' with a new kind of carpet, a floor covering that could change along with its owners needs," as he writes. He built the business into a global leader in the commercial carpet industry.

In 1994, however, a colleague from the company's research division passed on a memo from a sales associate that said some customers wanted to know, "What is Interface doing for the environment?" Another associate gave him a copy of Paul Hawken's groundbreaking book, The Ecology of Commerce.

That started Ray Anderson on his journey of discovery -- both personal and corporate -- that led to the company deciding to be a global leader in sustainability and never make a carpet from virgin raw materials again.

It's a story he has told before, on stage and in his 1995 book, Mid-Course Correction, and a third of this new book covers ground from that earlier memoir. But in retelling his personal journey Anderson connects his readers to his true purpose: to demonstrate that sustainability is a worthy and profitable journey and that the journey is the destination.

Along the way, Anderson makes clear the business case for sustainability -- and for accomplishing it "with good old capitalist self-interest firmly in mind."

Anderson never loses sight of the fact that "financial success is the key to achieving sustainability," as he writes in this new book. "A bankrupt company is clearly not sustainable. But sustainability is also a big key to achieving financial success. We have proved that earning a bigger and better, more legitimate profit is possible."

It's an important lesson and one supported by his book's subtitle, "Profits, People, Purpose--Doing Business by Respecting the Earth." I like that he leads with Profits and People; too often, environmentalists try to lead with the planet first and lose sight of the people and their self-interest.

That's why Ray Anderson's story is a good one and Confessions of a Radical Industrialist is an important book. (It's not a perfect book, I must say, and suffers a bit from overstating some points and pontification in spots. Yet the overall message is important enough to forgive these flaws.)

"Efficiency equals profits, profits equal jobs, and good jobs mean a strong economy," Anderson writes. To Ray Anderson, sustainability offers a new business model and a new future characterized by new thinking, new products, and new profits.

(Note: As of this writing, I have just learned that Ray Anderson has been diagnosed with cancer and is heading for further tests at the MD Anderson Center in Houston. My prayers go out to Ray and his family.)

   

First State Innovation Clean Tech Forum

First State Innovation (FSI), a non-profit whose mission is "to increase Delaware's entrepreneurial capacity by growing, attracting, retaining and connecting high growth technology-based businesses and supporting infrastructure in the state," held its first clean tech forum this past Thursday night, October 15th, at the Chase Center in Wilmington.

Ernest Dianastasis, Managing Director of CAI and Chairman of First State Innovation, shared his vision for how the region can further innovation and business growth in the emerging green economy, and announced the formation of an angel fund, which will be managed by First State Innovation.

Modular Carpet Recycling (MCR), Sanosil USA, White Optics, and Athena Biotechnologies were the featured companies presenting to a capacity crowd of investors, entrepreneurs, politicians, and service providers.

Despite bad weather and the 8PM start of game one of the Phillies-Dodgers National League Championship playoffs, most of the audience stayed through all four pitches and three speakers.

Eight other early stage companies in the clean tech and green space displayed their products and services at exhibit tables.

Keynote speaker, Delaware Governor Jack Markell, spoke about the importance of addressing climate change and building a new economy around being cleaner, greener, and more sustainable.

"To the 4Cs of Delaware: Chemicals, Cars, Chickens, and Credit Cards," quipped Governor Markell. "We need to add a fifth: Cleantech."

Brian Yerger, an alternative energy industry analyst from AERCA Advisors, presented a state of the state's alternative energy progress and the global opportunity presented by clean technologies and renewable energy development.

Yerger cited public support for government incentives, improvements in technologies, and competitiveness increasing scale as key drivers that may help the clean tech sector, which has been hindered by credit and economic conditions. Yerger sees hopeful signs that by Q4 2010, things will be back on track for what he views as "a secular energy transformation."

Of the companies, I found Sanosil and White Optics to have the most interesting propositions.

Sanosil, a Swiss-based company, produces a non-chlorine disinfectant from Hydrogen Peroxide and Silver. Two formulas, Sanosil Water Microbiocide, which is for use in cooling towers and industrial process water, and Sanosil Disinfectant, which has been proven effective against a range of viruses and infectious diseases, including MRSA, Swine flu (H1N1), and HIV and is for use in hospitals, offices, and childcare facilities.

White Optics manufactures a patent-pending reflector that improves the efficiency and reflectance of traditional fluorescent light fixtures, such as found in most offices and older buildings or with newer lighting systems like LED arrays.

First State Innovation plans to hold another Clean Tech Forum in Febraury 2010.


(Disclosure: The Renewable Energy Business Network Mid-Atlantic Chapter, of which I am a co-founder, was one of the sponsors of First State Innovation Clean Tech Forum.)

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• China: From Clean-Energy Producer to Clean-Energy Consumer (blogs.wsj.com)

BuildGreen Philly: Prosperity with Sustainability

"No matter how well we develop renewable energy sources, we will not be able to meet global demand," Pennsylvania Governor Ed Rendell said to the crowd gathered at BuildGreen09 in Philadelphia in his opening keynote. "We also need to reduce consumption."

Rendell is a governor that gets it. He understands the economic realities that will drive energy consumption in the future and about a realistic response that includes all sources (including coal and nuclear), as long as can be made clean and with reduced risk. (For coal, he encourages development of carbon capture and storage technologies, to make it cleaner.)

While Rendell gets the economic side, he also understands the limits and boundaries as well. It's not just about finite resources, according to the Governor, but about demand, which will increase as the population increases globally and as economies in developing countries improve and people prosper.

Prosperity with sustainability was the tenor of the two day conference at Philadelphia's Sheraton Center City Hotel (a decidedly unsustainable venue, I might add).

As Dr. Dayna Baumeister, co-founder of the Biomimicry Guild, noted in her fantastic presentation over lunch on Thursday, it is "about learning to live and build on a dynamic, non-equilibrium, water-based, boundaried world." And not only to survive, but to thrive.

Others echoed these sentiments and highlighted the economic opportunity that presents itself right now and that is only at the beginning.

Dennis Yablonsky of the Allegheny Conference on Community Development and former secretary of the PA Department of Community and Economic Development, cited a recent study indicating there is a $30-40B market in green building, which potentially grows to $200B if you add retrofitting of existing infrastructure.

Companies all across the state are being created while older companies are reinventing themselves around the green economy, Yablonsky noted.

There was evidence of this in the panel discussions, especially around product development and research. There you could find companies such as Armstrong, which started as a cork-cutting shop in 1860, as well as new initiatives such as the team of professors from Philadelphia University who are developing construction materials from alkali-activated fly ash, a waste product of the coal industry.

Green jobs were also on the agenda at BuildGreen, with a focus on economic empowerment and the shortage of skilled and unskilled labor the new green economy requires. Education and training are needed, as well as a clear definition of what qualifies as a green job.

Awareness of the existing opportunities is also needed, however, as was made apparent by Mr. Yablonsky's revelation that there are currently 30,000 "green jobs" posted on an online job bank for Southwestern PA. The jobs range from entry level positions to $100K+ executive roles; that's a lot of job openings in an economy that needs employment. Why are these positions not being filled?

Philadelphia Mayor Michael Nutter also addressed the conference, repeating his pledge to make Philadelphia the Greenest City in America. His plan includes goals to reduce city energy consumption by 30 percent and energy costs by 10 percent, representing savings of over $3 million in a city budget that needs every extra penny.

Philadelphia is not alone in trying to glean benefits from the new green economy. Micah Kotch, from the New York City Accelerator for a Clean & Renewable Economy, an incubator initiative of NYU-Poly aimed at stimulating invention, innovation, and entrepreneurship in New York.

"Our goal is to grow an ecosystem of entrepreneurs, companies and local businesses around clean tech and renewable innovations," said Mr. Kotch.

One of their companies is Rentricity, which captures energy from water pressure reduction -- common to any municipal water distribution system -- to spin turbines and create clean electricity.

BuildGreen was convened by the Pennsylvania Green Growth Partnership and hosted by the Delaware Valley Green Building Council, which plans to host the international GreenBuild conference and expo in 2012.

My three takeaways from BuildGreen09:

1.) The transformation of the building sector to adopting green practices is both a great step forward and a great opportunity -- and other sectors, such as financial services, must now follow.
2.) The convergence of talent, resources, and infrastructure in the region is well-positioned to own a significant piece of the new green economy pie, but it still needs to foster and build the financing, commercialization, and innovation opportunities to seize the day.
3.) Biomimicry -- the conscious emulation of nature's design solutions -- is an increasing opportunity for innovation that can lead to sustainable products, companies, and services -- and a better way of life. If only we can "quiet our cleverness," as Dr. Baumeister put it.