the energy of the future for the economy of the present: business opportunities in the green economy...
TRANSCRIPT
Robert WeissbourdRW Ventures, LLC
CEii TrentinoSeptember 11, 2010
The Energy of the Future for the Economy of the Present:
Business Opportunities in the Green Economy
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities Arising from SystemsV. Sustainability Strategies
The Next Economy is Green
The next American economy will be… low-carbon. -- Larry Summers, Chief Economic Adviser to the President
Mill
ions
of U
.S.
Dol
lars
Investment in Building Energy Efficiency Sub-
Sectors1,200
1,000
800
600
400
200
0 2005 2006 2007 2008 2009
Source: Cleantech Group, LLC
2030
Source: Bloomberg New Energy Finance
Expected Global Annual Clean Energy Investment
Billi
ons
of U
.S.
Dol
lars
600
500
400
300
200
100
0
2005
2010
2015
2020
2005
What Exactly IS the Green Economy? First, Drivers …
Global Warming and Pollution
High Fossil Fuel Prices Demand for Environmentally Friendly
Products
What Exactly IS the Green Economy? First, Drivers …
Demand for low carbon technologies is driving growth of Green Tech.
Demand for clean energy generation
Demand for products that reduce energy
consumptionDemand for products that reduce pollution
Increasing Clean Energy Generation
Clean Energy Sources
Clean energy growth spans generation, storage, and infrastructure sectors.
Wave Energy Biomass Power
Wind Geothermal Solar Fuel Cells Hydro
Reducing Energy ConsumptionProducts that
conserve energy
Reducing Energy ConsumptionProducts that
conserve energyProcesses that
conserve energy
Systems that conserve energy
Reducing Energy ConsumptionProducts that
conserve energyProcesses that
conserve energy
Reduced consumption opportunities run across and beyond the economy.
An Info-Tech Analogy
Like IT, Green Tech will affect the way every company does business.
Producers Users
Many Segments of the Green Economy
The segments of the green economy are varied and ill defined.
Function Category SegmentIncrease
Clean Energy
Generation
Energy source Wind Solar Geothermal Biopower Hydro Wave Alt. FuelsEnergy storage Fuel Cells Advanced Batteries Hybrid Systems
Energy infrastructure
Transmission Management Smart Grids
Reduce consumpti
on of energy
and natural
resources
ProductsApplianc
esLightin
gBuilding Materials
Water Conservatio
n
Audits & Retrofits
Sust. Design &
Construction
Alt. Vehicles
ProcessesLife cycle design Packagin
gSmart Production Recycling
Sustainable Forestry Sustainable Aquaculture
Sustainable Food Processing
Systems Logistics Transit Systems Local Food Systems
Reduce pollution
Products Non-toxic and renewable materials Non-toxic cleaning productsSystems Ecosystem
RegenerationIndustrial Ecology Land Conservation
ServicesWaste and Wastewater
ManagementAir and Water Purification
Emissions control
Organic Farming
Support Services Research & Development
Advocacy & Policy
Education Green Consulting
Green Finance
Green Real Estate
DISCUSSION
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities - Systems Change
V. Sustainability Strategies
The Puget Sound Region’s Building Energy Efficiency “Cluster”
Understanding Production Clusters
Identifying Opportunities in the Green Economy
Understanding Emerging Markets and their Supply Chains: A Wind Power Example
Identifying Opportunities in the Green Economy
Materials Components Manufacturers Logistics & Operations
End Use
Understanding Emerging Markets and their Supply Chains: A Wind Power Example
Firms can adapt existing production capacities to fit emerging markets.
Example: Joining the Green Supply Chain
Auto-supplier created gearbox housings product line for wind developer.
New 42,000 sq foot facility
Gearbox housings
Example: Spotting an emerging market
Welding company added streetcar and wave energy product lines.
Example: Reducing Pollution by Turning Waste into Profit
Example: Reducing Pollution by Turning Waste into Profit
Alternative uses for waste create sales and production opportunities.
DISCUSSION
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities - Systems Change
V. Sustainability Strategies
Regional Green Strategy DevelopmentIdentify Emerging Opportunities
Apply established economic development strategies to green opportunities.
sectors
Regional Green Strategy DevelopmentIdentify Emerging Opportunities
Apply established economic development strategies to green opportunities.
Analyze Regional Assets
sectors
Regional Green Strategy DevelopmentIdentify Emerging Opportunities
Apply established economic development strategies to green opportunities.
Analyze Regional Assets
Determine Development Needs
sectors
Regional Green Strategy DevelopmentIdentify Emerging Opportunities
Apply established economic development strategies to green opportunities.
Analyze Regional Assets
Determine Development Needs
Develop Products and Services
sectors
Example: Regional Support for Transition to Wind
Regions target growth strategies building on existing companies.
Great Lakes Wind Network (GLWN)
Emerging Opportunities: Wind energy sector growing Support for wind industry
from governmentRegional Assets: Strong component
manufacturing base Home to R&D centers Existing network of
manufacturers (WIRE-Net)
Development Needs: Increased connections
between manufacturing base and wind sector
Manufacturers knowledge of wind energy sector needs
Products and Services: Interactive supply chain map Supply chain workshops On-site evaluations
Example: Converting an IndustryGreen Building Products Initiative (GBPI) in
Pittsburgh
Building Supply Industry
Products and Services: Identification of potential product lines Green training events and information exchanges Grants for innovative product development Online Green Building Product Directory Assistance with certification, labeling, marketing, etc. Help retooling process to meet green standards
Example: Building Market Demand
Energy Score generates demand and reduces transaction costs for retrofits.
DISCUSSION
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities - Systems Change
V. Sustainability Strategies
Demand for local goods creates local business opportunities
Local ProductionLocal Production Systems
Food grown/produced locally
Irv and Shelly’s Fresh Picks
Chicago’s Downtown Farmstand
Local supply chain Great Lakes Wind
Network Green Building
Products Initiative
Transit Oriented Development and
Transportation Infrastructure
TOD spurs new economic activity while reducing costs and carbon.
Spatial Efficiency
Improve transportation infrastructure
Encourage compact, mixed- use, walkable communities Support biking through paths and racks
DISCUSSION
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities - Systems Change
V. Sustainability Strategies
Sustainability: Good for All Companies
Acting “greenly” is good for the bottom line.
Cost Savings Resilience Branding
Liability Avoidance
A Path to Sustainability
Specific actions determined by company characteristics.
Example of Sustainable Success
South Coast Mold, Inc.
35-year-old tool and die shop with 8 employees in Irvine, CA
In one year: reduced energy by
20% saved over $1,600
in energy costs recorded highest
revenues in company history
Sustainability generates cost savings and brand enhancement.
DISCUSSION
Robert WeissbourdRW Ventures, LLC
CEii TrentinoSeptember 11, 2010
The Energy of the Future for the Economy of the Present:
Business Opportunities in the Green Economy