In search of the Google of clean tech, page 2
In a tough economy, the companies that look a little like a high-tech outfit may be the big winners.
Green tech at a crossroads
Getting leaner and meaner
The driving force for smart-grid technologies is efficiency. It's no surprise, then, that outfits such as
Here's how it works: A customer gets paid to let the utility temporarily turn off a fan at a factory or reset the thermostat on a building's air conditioner. Shaving energy use a little bit across several customers means the utility doesn't need to turn on expensive and dirty auxiliary power plants to meet peak demand. It saves money, and it reduces carbon emissions, one air conditioner at a time.
Networking and software tech can also help manage wind and solar energy. Andy Kruse, the CEO of small-wind turbine maker Southwest Wind, envisions wind turbines that can
Adding more intelligence to what's already there, like using sensors to better monitor wind turbine performance, may seem incremental. But when times are tough, the companies that sell affordable products are the ones most likely to thrive. Just ask Wal-Mart.
"There will be massive amounts of software optimization developed over the next decade" in the name of energy efficiency, said Rob Bernard, Microsoft's chief environmental strategist. Software user interface design also plays a key role in engaging consumers with better home energy management systems, he added. "It will be like going from your old VCR (to) TiVo."
From a carbon emissions point of view, efficiency is the proverbial
Many energy experts, including
Laying a foundation
Certainly, changing something as big and old as the energy business isn't easy. Scientific and engineering advances in energy storage are badly needed to make the
There's a wide range of technologies being pursued:
But the slumping economy makes completing big projects difficult. In 2007, oil-tycoon-turned-clean-energy-advocate T. Boone Pickens announced plans to build a $6 billion wind farm large enough to power 1.3 million homes. But when financing became tough late last year, Pickens had to admit that he
Solar energy, perhaps the most glamorous of green-tech businesses, is also
Abu Dhabi-based Masdar PV, for example, last year said it was investing $600 million to build two thin-film solar-cell manufacturing plants, which would produce enough solar cells for roughly 100,000 homes. Now that private financing is so hard to come by, that's a war chest few companies can muster without government aid.
"Shock to trance"
The flow of venture capital to green-tech start-ups exploded from 1 percent of venture capital in 2001 to 10 percent last year. But getting beyond the early stage to high-volume sales has proven difficult. Can the government help?
"Where there is technology risk, this is where government support like loan guarantee programs has to come in," said Scott Brown, the CEO of project finance firm New Energy Capital. "This
But there are risks to taking taxpayer dollars. Beyond irking the public by investing in technologies that don't pan out, some companies are wary of letting politicians and lobbyists pick the winners and losers of green tech, as they essentially do now with military contractors.
It's also still unclear how effective future climate regulations will be in getting utilities, automakers, and other big polluters to adopt new technologies. In the power sector, for example, about a third of utilities are actively investigating smart-grid technologies, said Tendril CEO Adrian Tuck. But another third are still tentative, while another third aren't doing much at all.
The energy industry invests about 1 percent of its sales in research and development,
The size and sustainability of consumer demand for green-tech products is also an open question. Interest in energy independence in the United States peaked after the oil embargo of the 1970s, only to fade when energy was cheap again. President Obama referred to the rise and fall of alternative-energy interest as "
Matt Golden founded San Francisco-based Sustainable Spaces to be sort of a real-estate developer in an energy-focused redevelopment project. For a few thousand dollars, his company retrofits homes to be more energy-efficient, starting with simple things like insulation and moving on to more expensive options, such as
Clearly, high energy prices are a strong incentive for consumers to explore solar power for their home or for a business to get energy-efficient computing gear. Golden's bigger concern is about the long term--figuring out how to make his corner of the green-tech industry grow so that it positively affects millions of people.
"There are great plans (from politicians) and talk of money, but none of it has hit the ground yet," Golden said. "It looks good for the future. But at the moment, we're in a painful place."
Green tech at a crossroads
Getting leaner and meaner
The driving force for smart-grid technologies is efficiency. It's no surprise, then, that outfits such as
Here's how it works: A customer gets paid to let the utility temporarily turn off a fan at a factory or reset the thermostat on a building's air conditioner. Shaving energy use a little bit across several customers means the utility doesn't need to turn on expensive and dirty auxiliary power plants to meet peak demand. It saves money, and it reduces carbon emissions, one air conditioner at a time.
Networking and software tech can also help manage wind and solar energy. Andy Kruse, the CEO of small-wind turbine maker Southwest Wind, envisions wind turbines that can
Adding more intelligence to what's already there, like using sensors to better monitor wind turbine performance, may seem incremental. But when times are tough, the companies that sell affordable products are the ones most likely to thrive. Just ask Wal-Mart.
"There will be massive amounts of software optimization developed over the next decade" in the name of energy efficiency, said Rob Bernard, Microsoft's chief environmental strategist. Software user interface design also plays a key role in engaging consumers with better home energy management systems, he added. "It will be like going from your old VCR (to) TiVo."
From a carbon emissions point of view, efficiency is the proverbial
Many energy experts, including
Laying a foundation
Certainly, changing something as big and old as the energy business isn't easy. Scientific and engineering advances in energy storage are badly needed to make the
There's a wide range of technologies being pursued:
But the slumping economy makes completing big projects difficult. In 2007, oil-tycoon-turned-clean-energy-advocate T. Boone Pickens announced plans to build a $6 billion wind farm large enough to power 1.3 million homes. But when financing became tough late last year, Pickens had to admit that he
Solar energy, perhaps the most glamorous of green-tech businesses, is also
Abu Dhabi-based Masdar PV, for example, last year said it was investing $600 million to build two thin-film solar-cell manufacturing plants, which would produce enough solar cells for roughly 100,000 homes. Now that private financing is so hard to come by, that's a war chest few companies can muster without government aid.
"Shock to trance"
The flow of venture capital to green-tech start-ups exploded from 1 percent of venture capital in 2001 to 10 percent last year. But getting beyond the early stage to high-volume sales has proven difficult. Can the government help?
"Where there is technology risk, this is where government support like loan guarantee programs has to come in," said Scott Brown, the CEO of project finance firm New Energy Capital. "This
But there are risks to taking taxpayer dollars. Beyond irking the public by investing in technologies that don't pan out, some companies are wary of letting politicians and lobbyists pick the winners and losers of green tech, as they essentially do now with military contractors.
It's also still unclear how effective future climate regulations will be in getting utilities, automakers, and other big polluters to adopt new technologies. In the power sector, for example, about a third of utilities are actively investigating smart-grid technologies, said Tendril CEO Adrian Tuck. But another third are still tentative, while another third aren't doing much at all.
The energy industry invests about 1 percent of its sales in research and development,
The size and sustainability of consumer demand for green-tech products is also an open question. Interest in energy independence in the United States peaked after the oil embargo of the 1970s, only to fade when energy was cheap again. President Obama referred to the rise and fall of alternative-energy interest as "
Matt Golden founded San Francisco-based Sustainable Spaces to be sort of a real-estate developer in an energy-focused redevelopment project. For a few thousand dollars, his company retrofits homes to be more energy-efficient, starting with simple things like insulation and moving on to more expensive options, such as
Clearly, high energy prices are a strong incentive for consumers to explore solar power for their home or for a business to get energy-efficient computing gear. Golden's bigger concern is about the long term--figuring out how to make his corner of the green-tech industry grow so that it positively affects millions of people.
"There are great plans (from politicians) and talk of money, but none of it has hit the ground yet," Golden said. "It looks good for the future. But at the moment, we're in a painful place."