Green Tech

(Credit: Virgin America)

Virgin America announced Thursday it will offer customers the option to pay a voluntary fee when booking their ticket, which will go toward supporting carbon offset projects.

The U.S. domestic airline based in California, of which Richard Branson's Virgin Group is a minority share investor, has partnered with Carbonfund.org on the effort.

Through Carbonfund.org, the money Virgin America collects from consumers will be directed toward projects sanctioned by the Environmental Defense Fund's (EDF) official CarbonOffsetList.org.

One of the projects from that list that Virgin America chose to support, for example, is IdleAire.

IdleAire lets truckers connect their cabins to electricity sources at rest stops, rather than keep their engines idling to keep their power on. The process saves each trucker about a gallon of diesel per hour, according to Virgin America.

While IdleAire sounds like a practical project, it's questionable whether consumers will go for it.

Many other airlines have tried offering carbon offsets with lackluster results. Virgin Atlantic, admitting its online option wasn't getting many takers, announced last year it would try guilt by offering an offset in the air alongside the drinks.

Consumers could get nitpicky about each individual project. Donating to IdleAire sounds fine, but where is that electricity the truckers' tap into coming from? Is the local electricity being used generated from a renewable resource or coal?

There's also the world food shortage, and many poverty and disease-fighting nonprofits struggling from a lack of available charity due to the tough economy. Consumers might place environmental causes at the bottom of their charity list if they themselves are limited to what they can give this year.

Then, again, it's been argued that some water and food shortages can be directly linked to environmental changes in those problem areas. Will consumers feel there's a long view to be seen and donate toward offsetting pollution with that hope of improving things down the road?

Perhaps more promising is the second tact Virgin American plans to take.

While it's not in place yet, the airline plans to offer an onboard option. Through the touch-screen televisions on their flights, consumers will have a second chance to donate once their flight is already in the air.

Will a view of the clouds (and the occasional smog ruining skyline views) shame the guilty into donating? I'm just not sure.

After all, with Virgin America's new Gogo in-flight Wi-Fi service, consumers could just as easily donate online to another cause if they're feeling charitable while airborne.

Editors note: This is part of a series of stories about the recession's effect on the tech industry.

On paper, things couldn't be much better for Bruce Jamerson. As CEO of Mascoma, he runs an ethanol company staffed by brilliant scientists, wooed by state governors, and amply funded by General Motors and leading green-tech venture capital firms.

But late last month, he made the painful decision to shed staff in an effort to control costs. Even though Mascoma's a private company, there is no escaping the trickle-down effect of the skidding stock market.

Mascoma CEO Bruce Jamerson

(Credit: Mascoma)

"Because we're not going to have commercial operations for several years, we need to make sure that our cash lasts as long as we can," Jamerson said. "All companies in the clean-tech sector should be considering this."

Many already are. After being lavished with attention and money for years, many green-tech entrepreneurs--the foot soldiers in a hoped-for clean-energy revolution--are being forced to shift into low gear.

The recession and slumping financial markets are choking the flow of money, which is the lifeblood of fledgling green outfits. Meanwhile, lower economic activity is causing fossil fuel prices to plummet, making some green businesses a tougher sell.

Green-tech entrepreneurs do have other options for getting money beyond traditional venture capitalists and angel investors, such as government loans or state grants.

But the same danger signals that Silicon Valley venture capitalists have broadcast to Web start-ups applies to green tech as well.

"There is such compelling logic behind a lot of the technologies, but there is a real hunkering down going on," said Mark Barnett, an attorney at Foley Hoag's clean-tech practice. "If you're a venture capitalist, to give a company more money, you have to believe they can weather the storm...and be one of the first out of the gate when things clear."

From Wall Street to South Dakota
Unlike many people who have jumped into clean tech over the past few years, Mascoma's Jamerson, who's in his early 50s, knows quite a bit about the fuels business and finance.

A year and a half ago, he was president of Sioux Falls, S.D.-based VeraSun, which grew to be one of the biggest ethanol makers in the country. He was chief financial officer until it went public in 2006, when investors' love of ethanol made it a hot stock. (It recently filed for bankruptcy.)

His financing chops come from working on Wall Street, where he engineered investment banking deals for 10 years before abandoning it all to run a boutique investment firm in Oregon.

After being VeraSun president for almost a year, he resigned last February to join a little-known start-up called Mascoma, not bothering to take a vacation day in between jobs.

He was lured to Mascoma--prodded by high-profile investor and board member Vinod Khosla--because of its technology, he says. Using genetically modified microbes, Mascoma promises to make ethanol cost-effectively from non-food feedstocks, like wood chips.

Mascoma CEO Bruce Jamerson at the announcement this summer of a plant to make ethanol from wood chips. Pictured with him on the left is Beth Stanek, General Motors' director of energy and environment policy, and Michigan Governor Jennifer Granholm.

(Credit: Mascoma)

Like many people in the clean-tech business, Jamerson sees his small ethanol firm as part of a larger clean-technology movement to encourage domestic fuel production and reduce greenhouse gas emissions.

He says Mascoma is at the "edge of the wedge," the intersection point of many trends, including high energy prices, climate change, and policies promoting energy security. It's considered one of the front runners in the race to make ethanol from non-food sources.

Caution after a great run
Cracking the nut on cellulosic ethanol is one of the biggest technical hurdles to meeting government renewable fuel mandates and improve the public image of biofuels.

Click for complete special report

"There are a lot of places in the world where the appetite is very strong for this type of product," he said at a Mascoma lab tour in Dartmouth, N.H., where Mascoma was first hatched.

Indeed, on the whole, the company has had a great year. General Motors and Marathon Oil invested in the firm and became strategic partners. Michigan and New York, eager to diversify into renewable energy, have given Mascoma grants to build pilot plants. Technically, Jamerson said that Mascoma's ahead of schedule in meeting its milestones.

But even buoyed by all that optimism, Jamerson and the company's board decided it had to lay off employees, including its president and a number of vice presidents.

"These are hard decisions. The way I'm thinking about it, I'm being conservative with my expenses," he said. "It just so happened that the reductions were skewed toward a couple of senior people."

Rather than have to make more cuts in six months, he decided that it was better to have a cost-reduction plan now. Its plans to build pilot plants in Michigan and New York are not in jeopardy; the cutbacks were made so that the company could continue hitting its goals, Jamerson said.

Not every green-tech entrepreneur is in the same boat. Companies that need late-stage funding, to finance a solar manufacturing plant or biofuel refinery, are perhaps in the toughest spot.

Businesses that focus on energy efficiency, for instance, stand to do well as companies look to save money, whereas biofuels like ethanol are more closely linked to falling prices of gasoline.

But it's the disarray of the financial markets that has Jamerson most concerned. Mascoma had planned to go public in the next two years, but that's a lot less certain these days.

"That window has been closed for now and with institutional investors being more cautious, we need to be cautious," Jamerson said. "We need to get through this period of time."

Coming up Friday: Survival of the fittest for IT companies

Makers of mobile phones produce few "green" models with biodegradable, recycled, or fully recyclable materials. And although most vendors offer recycling options, less than five percent of the world's handsets will be recycled ethically in the end, according to a report released by ABI Research Monday.

Cell phones are a growing source of potentially toxic electronics waste. Among some 150 million handsets retired every year, fewer than 20 percent are recycled, according to the Environmental Protection Agency.

Nokia's Remade concept phone would use recycled and recyclable materials inside and out.

(Credit: Nokia)

However, it's unprofitable for most companies to release dedicated eco-friendly models on a massive scale, the ABI report suggested.

"Instead, the effort is towards compliance and the trickling down of proven green elements throughout entire product lines," Kevin Burden, the firm's research director, said in a statement.

Expanded regulation and corporate initiatives have reduced the use of toxic ingredients in electronics. The European Union's Reduction of Hazardous Substances rules have pushed nearly all major vendors to cut or exclude heavy metals, PVC, and brominated flame retardants.

ABI Research cited Samsung, Nokia, and Sony Ericsson as advancing efforts to make mobile phones even greener. Those brands also were at the top of the heap in the latest quarterly Greenpeace Guide to Greener Electronics.

Samsung released three models encased in corn-based plastic this summer in Asia and Europe.

Among this year's concept designs, Nokia's Remade flip phone cell uses recycled cans, plastic bottles, and car tires. Nokia says that up to 60 percent of the metal in its available handsets comes from recycled materials.

Sony Ericsson described in September a GreenHeart concept comprising recycled and plant-based plastics. If produced, it would consume only 3.5 milliwatts in standby mode.

A notable entrant in this year's Greener Gadgets Design Competition was the Bamboo concept handset. If buried in the ground, it would biodegrade, freeing embedded bamboo seeds to sprout a plant.

The ABI report notes a Nokia survey in which 76 percent of respondents said they preferred to buy from businesses that promote environmental responsibility.

Various other consumer polls have indicated that a small but growing percentage of shoppers seek to buy green electronics, and some will accept a price premium.

A variety of off-grid devices use the wind, the sun, or fuel cells to power up small electronics. But what if you could charge your cell phone just by talking into it, eliminating the need for batteries or cords?

What if power cords and batteries were a thing of the past?

(Credit: CBS Interactive)

What would make this possible is piezoelectricity, in which a mechanical force is converted to electricity. Some cigarette and barbeque grill lighters are an example. When a button is punched, pressure on a crystal within produces voltage, creating a spark.

In principle, the pressure to power a device could come from sound vibrations.

Crafting such piezoelectric electronics would require sensors with a specific size of crystal or ceramic material. Engineers say they have taken an early step by identifying a sweet spot at which a crystal could produce energy.

The capability of barium titanate crystals to harvest power doubles when they're about 23 nanometers in size, according to an analysis led by engineer Tahir Cagin at Texas A&M University. A human hair, for contrast, is about 100,000 nanometers wide.

However, it could be years or decades before scientists and entrepreneurs apply the findings to consumer products, he said.

"There are limitations to how much power you can generate at a given size," said Cagin, adding that an iPod or cell phone may require nano-sensors at a scale and composition different from what his research suggested.

Web sites that promise to pay for your old gadgets look bright around the holidays, when every extra dollar can count toward new gifts or even utility bills. But are the services worthwhile? How much can you earn?

We examined nine services that pay for your unwanted digital wares. These are among the newest options to help keep electronics waste out of landfills, while uncluttering your closets.

Click on this image to see what seven services quoted to pay for 11 used electronics.

(Credit: Elsa Wenzel/CBS Interactive)

We looked up what each service said it would pay for working iPods, PDAs, laptops, gaming consoles, and more, with cables but lacking their original boxes. For dead devices, some offer a pittance, or will connect you with willing recyclers and charity recipients. Our chart (at right) shows what each site claims it pays for specific equipment. Keep reading for highlights of the trade-in services.

We can't yet vouch for the start-to-finish experience of mailing in products to these companies. Those that find your equipment in worse shape than you estimated will downgrade the trade-in value.

If you only need to offload an old phone, look out for our upcoming comparison of sites that specialize in refurbishing and recycling handsets, including Cell for Cash, Simply Sellular, and ReCellular.

The Better Place Rogue is an all-electric version of the Nissan Rogue crossover SUV.

(Credit: Better Place)

Hawaii has decided to partner with Better Place to bring car battery exchange stations for electric vehicles to the islands, Hawaii Gov. Linda Lingle announced Tuesday.

Better Place stations, similar in concept to gas stations, offer drivers with electric vehicles an automated system that swaps out exhausted lithium ion car batteries for fully-charged ones. The swapping system is intended to be convenient for both drivers and local electric companies, since Better Place can recharge the exhausted batteries with excess electricity generated from renewable sources during off-peak electricity hours.

Lingle said the project is an example of Hawaii's efforts to gain independence from foreign oil, and to stimulate its economy through investment in energy technology.

Not surprising due to its geography, Hawaii spends about $7 billion a year on oil imports with its drivers facing some of the toughest prices at the pump in the U.S. The plan to implement Better Place stations coincides with the Hawaii Clean Energy Initiative (HCEI) intended to change that. Signed in January, it sets Hawaii's renewable energy bar at 70 percent clean energy by 2030, as well as encouraging programs that foster local economic growth.

Shai Agassi, founder and CEO of Better Place, was also on hand at the plan unveiling in Hawaii on December 2. According to Agassi, Hawaii is the second state in the U.S., and the fifth place in the world, to adopt the Better Place electric-car infrastructure. Better Place stations have already been implemented in Denmark and Israel, with Australia and California recently announcing intentions to add them.

"Hawaii, with its ready access to renewable energy resources like solar, wind, wave, and geothermal, is the ideal location to serve as a blueprint for the rest of the U.S. in terms of reducing our dependence on foreign oil, growing our renewable energy portfolio and creating an infrastructure that will stabilize our economy," Agassi said in a statement to the press.

Hawaii Electric is also onboard. The state's electric utility signed a Memorandum of Understanding (MOU) with Better Place which plans to power its public charging and battery-swapping stations with renewable energy resources.

According to the plan, Better Place will pull permits for its stations in 2009, offer electric cars within 18 months, and make both available for the mass-market in Hawaii by 2012.

Better Place has said it's in talks with major automakers and would like to offer swappable batteries for any electric vehicle regardless of which company makes the car. But right now the company's stations only service two electric vehicles: the Renault Megane and the Better Place Rogue, an electric vehicle based on the Nissan Rogue crossover SUV.

Hawaii's plan with Better Place is to install about 20 electric battery-swapping stations across its islands.

(Credit: Better Place)

Ford Motor made electric vehicles a centerpiece of a turnaround plan presented to Congress on Tuesday, saying that it will introduce an all-electric van for fleet use in 2010 and a sedan in 2011.

The Big Three U.S. automakers are scheduled to return to Washington, D.C., this week with the hopes of negotiating loans to forestall a collapse from lack of cash.

All three companies are seeing a continued dip in sales, but Ford is considered far better off financially than General Motors and Chrysler. Ford on Tuesday said it could be cash-flow positive from operations by 2011, but it is still requesting up to $9 billion in loans, which CEO Alan Mulally said will act as a "critical backstop or safeguard against worsening conditions, as we drive transformational change in our company."

The business plan lists cost reductions--including plant closings and the sale of its much-criticized corporate aircraft--and investments in smaller, fuel-efficient cars and a line of electric vehicles.

Its product plans calls for:

• A commitment to improve fuel efficiency across its fleet: 14 percent for 2009, 26 percent for 2012, and 36 percent for 2015--all compared with 2005 overall fleet mileage.

• At the North American International Auto Show, Ford will discuss its "vehicle electrification plan." That will include a family of hybrids, plug-in hybrids, and all-electric, or "battery electric," vehicles scheduled to debut in 2012.

Its first product will be a van-type vehicle for commercial fleets in 2010 and a sedan in 2011 with a goal of making battery-powered cars cost-effective. The cost of batteries make plug-in hybrid or all-electric vehicles significantly more expensive than gasoline engine cars.

Ford said that it will work with unnamed battery and electric-vehicle powertrain providers to bring its electric cars to market.

The company said that it intends to invest $14 billion in efficiency and it will introduce in cars its EcoBoost technology, which it unveiled at last year's North American International Auto Show.

The company also said that it is exploring the sale of its Volvo car division.

Here's a sampling of green-tech news with quick commentary:

• Southern California Edison Completes First of its Major Commercial Rooftop Solar Installations - Press release
  SCE completes 150 solar installations, part of a plan to cover up to 2 square miles with panels. Interesting business model to note: the utility owns and maintains the panels.
• U.N. Climate Talks Poses Big Impact on Greentech - Greentech Media
  A table-setter on how climate policy could change in light of failing global economy at climate change talks this week.
• 5 River Power Players to Watch - Earth2Tech
  Nice roundup of river power companies.
(Credit: Verdant Power)
• Farmers Panic About a 'Cow Tax' - The New York Times
  Yes, "cow belching," which releases methane, is a significant contributor to greenhouse gas emissions.
• The Next Secretary of Energy - Abraham Energy Report
  Speculation is now in high gear. Also a name thrown out for some position in energy is Dan Reicher, who heads climate initiatives at Google.org.
• Small Carmakers Vie for Fuel-Efficiency Loans - The New York Times
  It's not just Tesla that's looking for government assistance.
• EU agrees to cut car emissions in climate fight - Reuters
  New cars will need to have an 18 percent improvement in fuel efficiency in a deal that disappoints both environmentalists and industry players.
• Europe Backs Supergrids - Technology Review
  This project underscores the need to build new transmission lines to accommodate wind and solar generation.
• Finland, Vietnam launch fish fuel project - Cleantech Group
  If it pans out, fish waste from a processing facility will be turned into diesel fuel.
• GE suspends development of "high-efficiency incandescent" - Clean Break
  Even General Electric is bailing on the incandescent bulb, in favor of further work on LED lighting.

President-elect Barack Obama's choice of James Jones as national security adviser brings a retired Marine general who advocates a comprehensive overhaul to U.S. energy policy in the name of national defense.

Jones was announced on Monday as part of the Obama administration's national security team. He has been president and CEO of the Institute for 21st Century Energy, an affiliate of the U.S. Chamber of Commerce.

The group last month published a detailed set of recommendations on energy policy, written as a memorandum to Obama. (Click here for PDF.)

James Jones, incoming national security adviser

(Credit: Institute for 21st Century Energy)

In the transition paper, Jones says "our country urgently requires a balanced and enduring strategy to meet our growing needs. America stands at a defining moment where the decisions made today will influence the economic prosperity, global competitiveness, and national security of future generations."

The policy recommendations cover a broad swath, including support for clean technologies, such as energy efficiency and renewable energy, as well as further investments in climate science.

The plan argues for increased domestic oil and gas drilling, a commitment to so-called clean-coal technology, and increased use of nuclear energy. It also calls for an upgrade to the U.S. power grid electricity distribution network.

The briefing is meant to form the basis of a more strategic and comprehensive energy policy, which the Institute for 21st Century Energy argues can improve national security and economic competitiveness.

From the memo:

"What is needed instead is a more strategic and comprehensive approach to address the broad underlying trends in energy markets--some long standing, some only recently emerging--that are and will remain significant challenges unless we muster the will to adopt a sound enduring energy policy. A sluggish economy teetering on, if not in, a recession and the recent crisis in the financial markets makes tackling these challenges all the more pressing, not less so, because at its most fundamental level, energy security is a critical underpinning of a healthy economy."

Since being elected, Obama has said that energy and environmental policy will be one of the top priorities when his administration comes into office.

Tempering expectations over bold clean-energy initiatives is the poor state of the economy.

Tesla Motors, a start-up focused on high-performance electric cars, appears to be in a bit of trouble.

Although Tesla just raised an additional $40 million, it is asking for $400 million in low-interest loans from the federal government as part of the $25 billion loan package to the auto industry.

Yeah, I know that Tesla is working on cool electric technology for high-performance cars that could help our country ease its heroin-like addiction to foreign oil. That said, are the Valley-based VCs and big-wigs who back Tesla really serious?

Tesla may be a technological marvel and it is located in Silicon Valley, but Tesla is not an IT start-up per se. In the automotive industry, it can take billions of dollars and many years to get a product to market. Didn't the VCs anticipate this type of money and time commitment up front?

As the old saying goes, "When the only tool you have is a hammer, everything looks like a nail." Valley VCs seem to live by this mantra, believing that all business is like the technology business. You know, fund some smart guys with an idea and development chops, get a 1.0 product out, and then enhance the product as you create a sales and marketing team, build channels, and sign customers.

If you execute well with this formula, you may have a lucrative exit in three to five years. The problem is that other industries don't work this way. The next wave of technology breakthroughs will require big dough and lots of patience--a combination that is really an anathema to VCs.

Good luck, Tesla, but Washington ain't Interop. You can throw lots of clean-energy market hype around, but there won't be much support in Congress to bail out VC firms, Valley multimillionaires, and a shoe-string manufacturer of cars for fat cats. There are too many others who really need the money.