Next Tech Boom Could Be Cleantech, Alternative Energy

Average: Select ratingPoorOkayGoodGreatAwesome

Your rating: None Average: 3.7 (7 votes)

More Green Business

• China Scores At The World Cup
• Oil Spill Cleanup Not Clean Enough
• BP Increases Worst Case Scenario Oil Flow Estimate
• BP Searching For Cash
• Oil Bosses Distance Themselves From BP

Is it any coincidence that in the beginning of Energy Awareness Month, news would emerge that cleantech and alternative energy could be on the verge of an economic boom – THE next boom?

The Associated Press reported today, Oct. 6, that Silicon Valley investors are watching this area, which includes clean energy like wind, solar, biomass and biofuels, energy storage and distribution of energy.

Potentially, the largest investor in cleantech this year has been the federal government, awarding hundreds of millions of dollars to institutes, businesses and industries to study and create new forms of energy using wind, ocean power, algae biofuel, a smart electric grid, and geothermal technology.

In May, the Department of Energy allocated $786.5 million in Recovery Act funding for new and existing projects in biorefineries, sustainability research, infrastructure-compatible biofuels and ethanol research. The government has additionally granted $2.3 billion in tax credits to manufacturers of equipment needed for cleantech to seriously bolster support for this emerging sector.

On the private sector side, ExxonMobil has made plans to inject $600 million into algae biofuel research. Ohio Edison Co. recently agreed to make the switch from coal to biomass power at one of its power plants by 2012. Pursuant to terms of a consent decree with the U.S. Environmental Protection Agency, Ohio Edison Co., a subsidiary of FirstEnergy Corp., will repower its Shadyside coal-based power plants to operate primarily on biomass fuels, thereby reducing the plant’s greenhouse gas emissions by 1.3 million tons per year.

There are numerous think tanks and institutes studying and developing sustainable energy around the country and the world.

This is all good news considering that our current energy generation structure is feeding 100 million buildings and billions of devices, according to a July 2009 analysis on U.S. energy by McKinsey & Co. DOE estimates that the U.S. spends $400 billion a year on energy. If this sector stays the course and is successful, the goal of creating more jobs and reducing our national pollution emissions will be served. From 1998 to 2007, the nation’s job sector related to clean energy grew more than twice as fast as overall job growth, a study released June 10 by The Pew Charitable Trusts says. The country’s clean energy economy has grown significantly, Pew says, and stands to grow even more in light of increasing consumer demand, investments and federal and state policy reforms.

According to the Associated Press, some of the most impressive booms happened during economic downturns and that venture capitalists have invested close to $9 billion into energy-based startups since 2006. It also noted that during our current recession, over seven million U.S. jobs have been lost.

New Tech For Energy Use

Making or harnessing energy using cleantech is the larger side of the energy efficiency and pollution control discussion but putting that energy to use in efficient ways is just as significant. For example, the federal government is issuing rebates for more energy efficient ENERGY STAR appliances. Germany plans to become the hub for electric cars, a sector populated by several countries that manufacture cars that will drastically reduce the world’s reliance on oil. Those companies not manufacturing or selling energy efficient products are jumping on the bandwagon to green their supply chains.

On the buildings and home side, DOE announced Sept. 14 that it will allocate $454 million to a new program to make energy efficiency retrofits happen in homes and businesses. New construction is increasingly incorporating ways to conserve energy and water use, but existing buildings continue to gobble up energy. The “Retrofit Ramp-Up” initiative will save $100 million per year in utility bills.

Utilities have been installing smart meters in homes around the country that can monitor and analyze energy usage. Manufacturers are developing heating appliances that have controls and settings intended to reduce consumption during certain hours related to use. A German utility company has developed an energy meter that tweets usage to a consumer to make consumers aware of energy use via tweets.

In addition to appliances, government and businesses are paying attention to how much lighting factors in to overall electricity use, which is about 30 percent. DOE has granted $4.6 million in Recovery Act funds to lighting research focusing on accelerating high-efficiency solid-state lighting, such as LED lights that are more environmentally friendly than traditional incandescent lighting. LED lights are far more efficient than compact fluorescent light bulbs, last longer, emit better light without glare, save energy and reduce greenhouse gas emissions. The new technology can save consumers 80 percent on lighting electricity costs.

In September, Business Week reported that the LED market, while a small portion of the lighting industry, is expected to be the fastest-growing segment in the next 10 years. The national goals to improve building efficiency by 25-50 percent in the next ten years will lead more companies toward LED lighting, Business Week said.

A private sector company, LED Saving Solutions, is focusing on cost containment by offering $100 million in LED lighting retrofits at zero out-of-pocket expense to schools, hospitals, office buildings, manufacturing plants, warehouses, hotels and other businesses across the United States. LED Saving Solutions is also offering $10 per light bulb for companies that want to retrofit to LED bulbs.

Several major businesses have taken advantage of lowering their costs via more efficient lighting, including American Airlines, Arizona State University, New York Times and Holiday Inn.