Green Living Network
GM to sell “Bullfrog Edition” of Chevy Volt, a $198 upgrade offering 2 years of green-certified electricity
Toronto-based green energy retailer Bullfrog Power is teaming up with General Motors Canada to offer what Bullfrog CEO Tom Heintzman is calling a “Bullfrog Edition” Chevy Volt. This edition of the Volt would be available via all GM dealerships across Canada and would come at a $198 premium. In return, the customer gets a Bullfrog Edition plaque on the vehicle and two years of green (incl. nuke-free) electricity from Bullfrog, based on average customer electricity consumption. “It’s really trying to get people aware of the fact that just because you’re plugging into the wall doesn’t mean it’s emission-free,” Heintzman told me. “Electric vehicles ultimately need to be tied to renewable energy. This makes the link in a more tangible and powerful way.”
The deal is very similar to how many car manufacturers already offer satellite radio, or how some have offered a year’s worth or more of free gasoline. “It works out to 7.5 megawatt-hours of electricity over the course of the two years,” he said. I asked if this is an exclusive deal with GM, or whether Bullfrog is able to make a similar offer with other EV manufacturers. “It takes a while to put a program like this together, so we don’t anticipate anyone else coming aboard within the next year. At some point in time, we would hope that all EV manufacturers would begin offering it.”
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Siemens to acquire Canada’s RuggedCom for $382 million, a 50% premium to Belden’s hostile offer
Good news for shareholders of Toronto-based RuggedCom, one of the world’s leading makers of ruggedized networking gear for the smart grid. Facing a hostile takeover from St. Louis-based Belden Inc., RuggedCom has found a white knight in Siemens Canada Ltd., the Canadian subsidiary of German industrial giant Siemens AG.
Siemens has agreed to purchase RuggedCom for $382 million or $33 a share, compared to the $272.4 million or $22 a share offer from Beldon. It represents a 50% premium on a per-share basis and, quite frankly, Siemens is a better fit for RuggedCom and for keeping innovation in Ontario.
Siemens Canada, which is based in Burlington, Ont., has a strong and growing presence in Canada — about 4,400 employees and $3 billion in annual revenues. It is also pushing hard into the same smart grid space occupied by its main competitor, General Electric. Ontario is shaping up to become a hub of smart grid development in North America, so it makes sense for Siemens and Vaughan, Ont.-based RuggedCom to hook up.
I was the first journalist to write about RuggedCom with a story in the Toronto Star back in July 2006. Since then it has consistently grown revenues and profits, even during the downturn. “Either we’re going to get acquired by a strategic peer or reach a point where we’ve got … a good story to take it to an IPO,” company founder and CEO Marzio Pozzuoli confidently told me when we first spoke nearly six years ago. Pozzuoli, by the way, was a technology manager in GE’s power management operation before deciding to leave the company to found RuggedCom. Such a good move. The successful IPO part came true in 2007, and now the strategic acquisition part is coming true with the Siemens purchase. As Pozzuoli stated today, “We have great respect for Siemens and believe RuggedCom will be well positioned for continued growth and industry leadership under their ownership.”
Could RuggedCom have done it alone? Perhaps — but with the massive clout of Siemens behind it, it can do a heck of a lot better. That’s just how the cleantech space is expected to be over the coming years, as startups with great technology and proven leadership seek the resources and reach of established multinationals. An added benefit to this deal is that it seems to reinforce Siemens’ commitment to Ontario.
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Boomers get boost as high-end bicycle tour company embraces electric bikes
My Clean Break column today takes a look at how Toronto-based Butterfield & Robinson, the high-end travel company, has slowly started to add electric bicycles to its fleet as a way to accommodate aging boomers and people of different fitness levels. Replacing regular bikes with e-bikes on a tour isn’t really an environmental story, for obvious reasons, but this is a positive health story if it means getting more people out and exercising. And in a broader sense, e-bikes could encourage more people to get out of their cars. In that sense there are environmental benefits to this tech.
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We’ve all met them. Super-couples that hike together, run half-marathons side by side, and jump out of airplanes holding hands.
Sickening. Young and old, they make the rest of us feel inadequate.
But super-couples are an anomaly. The reality is that many couples aren’t such a good match when it comes to physical activity. Toronto-based Butterfield & Robinson, the high-end travel company that does bicycle tours throughout world, knows this first hand.
“With a lot of people who take our trips, one half of a couple really doesn’t want to do it,” says Norman Howe, president of B&R. “The one who doesn’t want to do it is intimidated by the idea that they won’t be able to participate as an equal with their partner.”
It’s partly why, about a year ago, company officials began exploring the benefits of adding electric bicycles to their fleet. The simple fact is that some tours are more difficult and demanding than others, be it because of longer routes or uneven terrain. The company’s bike trip to Tuscany is a case in point.
“It’s probably the scariest destination from a hill point of view,” says Howe.
Last October, the company held its annual end-of-season gathering and invited a number of electric bicycle makers to give product demonstrations. The E-Venture electric bicycle, manufactured by Swiss firm Scott Sports SA and equipped with a Bosch lithium ion battery system and drivetrain, got the highest grade. After the event, B&R purchased 30 of these e-bikes and added them to its European fleet.
“Our customers will get the option of using them for this first time this spring,” says Howe, adding that it is considered an upgrade so does come at a slight premium.
He emphasizes that the bikes are only assisted by electric propulsion – that is, they don’t rely exclusively on it. Travellers can’t ride them like mopeds or electric scooters. What they get is a boost when they need some help, such as when battling a head wind or taking on a steep hill.
“These things look like a bike, ride like a bike, feel like a bike, but when you hit the hills it just makes the experience a little better,” says Howe, adding that in his view it will be a “great democratizing thing” for people who may otherwise be reluctant to travel by regular bicycle. “And you still get a sense of accomplishment riding these things.”
The potential reaches far beyond the weaker half of a couple. It includes all consumers that have never given bicycle tours a thought, perhaps because of that intimidation factor. It also includes aging but devoted long-time customers, who can keep coming back every year even if the knees are starting to give out and energy levels are in decline. The e-bikes are designed to compensate.
Market research firm Pike Research has estimated that nearly half a billion e-bikes, electric motorcycles and electric scooters will be sold worldwide between 2010 and 2016. E-bikes would represent 56 per cent of that market, it predicted.
“Demographics and economics are aligning to create a strong market opportunity for two-wheel electric vehicles,” according to Pike analyst Dave Hurst. “In some countries, these vehicles will be engines of economic growth, while in others they will be signals of broader consumer behavioral shifts.”
For B&R, it’s all part of the evolution of its business, and certainly shifting demographics play an important role. Average customer age lands somewhere in the low 50s – the classic baby boomer.
“The boomer crowd is in denial about aging, so they’re going to hang on to the activity component of their lives for as long as they can,” says Howe.
By adding e-bikes to its fleet, B&R is helping them to do. E-bikes may represent only 3 per cent of the fleet today, but as boomers age “I would imagine the number of e-bikes we have will grow as a percentage of our overall fleet,” he says.
No doubt, bicycle tour companies around the world are heading in the same direction.
Call it a boomer boost that leads to happier and healthier trails.
Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies.
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U.S. venture capital firm SAIL Venture Partners goes on hunt for Canadian cleantech, plans to establish Canadian-focused fund
This is an encouraging sign for the Canadian clean technology sector. SAIL Venture Partners, the early-stage venture arm of SAIL Capital Partners, said today it is partnering up with the Canadian subsidiary of Stifel Financial Corp. to create a joint venture and fund that would tap into Canadian cleantech opportunities. Specifically, the fund would invest in early stage cleantech companies in Canada that have ready-for-market products. “SAIL’s expansion into Canada represents a tremendous vote of confidence in the quality of Canada’s cleantech sector,” according to David Fransen, Consul General of Canada in Los Angeles.
It’s nice to be loved.
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Hamilton consortium puts pressure on Ontario government to lift moratorium on offshore wind in the Great Lakes
For a year now there has been a moratorium on the development of offshore wind projects in the Great Lakes. The Ontario government issued the ban because it said more study was needed to make sure the projects can be developed safety and responsibly, even though such studies were supposedly already done when the previous moratorium was lifted in January 2008. It’s more than likely that the latest ban was politically motivated, which is why a consortium of companies stretching from Kingston to Niagara Region has high hopes of changing the government’s mind.
The consortium, calling itself the Lake Ontario Offshore Network, aims to make Ontario the North American capital of offshore wind development. The group includes Windstream Energy Inc., the only company that holds a feed-in-tariff contract with the Ontario Power Authority to sell power from offshore wind turbines into the province’s electrical grid. It doesn’t matter that Windstream, because of the moratorium, can’t currently develop its project. It hopes that by bringing together an industrial consortium it can dangle thousands of jobs in front of the government and possibly convince the powers that be to reconsider its offshore ban.
The cast that has been assembled for this PR play is impressive. The consortium includes turbine suppliers Siemens Wind Power and Vestas Wind Systems, steel fabricator Walters Inc., steel supplier Essar Steel Algoma Inc. and a number of small and medium-sized companies — Anchor Concrete Products Ltd., Ortech Power, Samuel & Son Limited, Akzo Nobel Coating Ltd. and Bermingham Foundation Solutions, to name a few. In total, 18 companies/organizations large and small have signed on, representing a comprehensive supply chain and about 1,800 jobs that could exist over a five-year period if Windstream’s project ever got the go-ahead.
And what is this project? Windstream, which is based in Burlington, Ontario, is planning to build a 100-turbine, 300-megawatt offshore wind project about five kilometres west of Wolfe Island, which is an island just offshore the city of Kingston, itself about 250 kilometres east of Toronto. My own personal feeling is that it’s not the greatest site for development, if only because it’s not far from the onshore wind farm that’s currently located on Wolfe Island and has been a lightning rod for controversy from the beginning (partly because of the density of wind turbine development there). Windstream is proposing that the government keep its moratorium but allow an exemption for its $1.5 billion Wolfe Island shoals project, on the grounds that it would be a pilot project used as part of studies that would determine if further offshore development is the right step forward.
You’ll recall from an earlier column of mine that the “pilot project” approach is one that I support and proposed last July. Specifically, I wrote, “Maybe we would have been better off to focus initially on a public-private pilot project, one located several kilometres offshore in a carefully selected location; one that could be closely studied and be a launch pad for future economic growth.” I’m happy that Windstream has embraced this approach, and it will be interesting to see how the government responds to this invitation.
But here’s the thing: I’m not convinced this is the “carefully selected location” that would be ideal for a pilot project. I’m also not convinced that a 300-megawatt project could rightly be called a “pilot”. I understand the need to go big. There are simply better economies of scale. But if a pilot was truly what Windstream envisions, it should break up the project into smaller phases, with the initial pilot phase being no larger than 20 or so megawatts (similar in size to the world’s first lake-based wind farm in Lake Vanern, Sweden) with plans to develop larger phases once the pilot has been properly studied and ultimately convinces the Ministry of Environment that offshore wind makes sense for Ontario.
I would also argue that there are much better sites to consider for a pilot, including those once held by Trillium Wind Power before the government wiped the slate clear and unjustly forced all developers without a FIT contract to start from scratch. Trillium, by the way, had also started developing a supply chain consortium before the rug was pulled from under it, resulting in a $2.25 billion lawsuit filed against the Ontario government. One wonders how any company could trust dealing with Queen’s Park these days.
But Windstream is the one that finds itself in the fortunate position of being the only developer with a FIT contract. Whether the piece of paper it holds gives it the edge when it comes to pilot-scale projects, that’s unclear. After all, pilots are given special consideration. Presumably, FIT or not, picking the location of a pilot project should be based on the site, not the developer.
The saga continues…
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Marnoch Thermal Power: a new type of heat engine for tapping into lower temperatures
My latest Clean Break column on Ontario inventor Ian Marnoch and his new heat engine design that could make efforts at turning low-grade heat into electricity more economical.
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The Geological Survey of Canada put out a research paper in 2010 that concluded the country has enough geothermal heat to power itself many times over.
The big question is how much of that heat can be economically tapped?
As a general rule, the hotter and shallower the resource the more economical it is to exploit based on current technologies. The higher the temperature the easier it is to extract the volume of heat required to spin a turbine and generate electricity.
But there aren’t many places in Canada, beyond northern B.C., Alberta and the Yukon, that have that right combination of temperature and depth. Everywhere else, you’ll have to drill deep – as much as 10 kilometres down – to find enough heat. That’s a deal-breaker with respect to cost and risk.
It’s also a nut Ian Marnoch of Port Severn, Ont., is trying to crack. For the past seven years the Ontario inventor has been developing a new kind of “heat engine” that he says can generate electricity more economically from lower-grade heat. And that heat could come from anywhere: the ground, the sun, or an industrial waste process.
Not that the technology doesn’t already exist to do it. There are other heat-engine technologies out there, most notably those based on the Organic Rankine thermodynamic cycle. These systems transfer heat to a working fluid with a low boiling point, such as ammonia.
As the fluid heats up, expands and vaporizes it drives a turbine that generates electricity. The vapour is then cooled, condensing it back into a fluid which is recycled back through the process.
Marnoch’s heat engine works under a different principle. There is no vaporization of fluids. Instead, the Marnoch system relies on dry pre-pressurized air that expands and contracts as it is heated and cooled, causing pistons to turn that generate electricity.
This in itself may not be new, but it’s the way Marnoch has configured his machine that may give it an edge over other technologies. He says his thermal power engine can process heat much faster and at bigger volumes than Organic Rankine machines.
“It can process about three times as much heat by value as an Organic Rankine machine of the same size,” says Marnoch, adding that his heat engine can be designed to be much smaller and, therefore, less expensive.
That it operates more efficiently also means it can tap into lower temperatures that aren’t viable with other technologies. One area where Marnoch hopes to demonstrate the superiority of his design is in northern communities that currently rely on diesel generators for electricity production.
All he needs is the right temperature differential – that is, the gap between the heat source, such as the water in a deep mine shaft or temperature at the bottom of an old oil or natural gas well, and the heat sink, which would be the cool northern air.
If that gap is 20 degrees C or higher there’s potential to generate electricity. The system becomes more economical the wider the gap.
Marnoch has been working to perfect his patented heat engine with a team of PhD students and professors at the University of Ontario Institute of Technology, which has supported development of the machine for the past five years with funding from the federal and Ontario governments. The Ontario Power Authority and Ontario Centres of Excellence were also early funders.
The latest prototype of the machine is at the university’s new Clean Energy Research Laboratory, but Marnoch is eager to get the machine out in the field and tested in a real-world situation.
St. Marys Cement is one possible candidate. The company is exploring using the Marnoch engine to generate electricity from the waste heat of its Bowmanville cement plant.
“It is in very early discussions but we are very enthusiastic about the potential and what this can mean for industries with large volumes of low-grade waste heat,” says Martin Vroegh, environmental manager at St Marys.
Marnoch is hoping that the smaller size of his machine, relative to an Organic Rankine set-up, will make his technology more attractive to operators of industrial facilities, which often lack the real estate to host such equipment.
“It could open the door for us,” he says. “We just need to get out there and prove it works.”
If only it were that easy. Like any inventor or entrepreneur trying to bring a new clean technology to market, particularly one that directly challenges well-entrenched products, Marnoch knows he has many more hurdles to overcome and many years of trying.
It comes with the territory. But persistence is the soul of innovation, and Marnoch has plenty of it.
Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies. Contact him at tyler@cleanbreak.ca
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The better use of natural gas: Waste Management pushes forward on CNG fleet conversion
Natural gas is inexpensive, seemingly plentiful and much cleaner-burning when used as an alternative to diesel fuel in transportation fleets, so it makes sense that Waste Management is converting its entire North American fleet to run on compressed natural gas. The company announced this week it has added 25 new CNG waste collection trucks to its fleet in Ottawa. About 80 per cent of all new trucks purchased by the company now run on compressed natural gas. To accommodate this fleet conversion, Waste Management has been increasing the number of fuelling stations it has to support the fleet. Currently it operates 17 of these stations across North America, but that number is expected to expand to 50 by the end of this year. Overall, the company has more than 1,400 CNG trucks in its fleet, including 100 added to its fleet in Vancouver last year. While this represents only 3.5 per cent of the entire fleet, conversion is happening at a healthy clip. It should be noted that Waste Management is also using route optimization software to reduce driving time and all trucks are programmed to turn off automatically after five minutes of idling. These are all solid initiatives that will help reduce emissions, but also reduce company costs.
From a greenhouse-gas perspective, the emission reductions aren’t massive — up to 25 per cent reduction — but the real gains here are in the reduction of smog-causing pollutants. Nitrogen oxides and diesel particulate matter are reduced by 90 per cent. Over time, it leaves open the possibility of using renewable natural gas, sourced from landfill gas and municipal wastewater biogas, to displace its fossil fuel cousin. The city of Surrey, B.C., is already heading in this direction. It now requires that natural gas-powered trucks be used for its municipal waste collection, a service being performed by BFI Canada, which has purchased 75 trucks that run on CNG. At the same time, it is launching an organics collection program for Surrey’s 470,000 residents and businesses that will see the household waste converted into biogas that will be cleaned, conditioned and used in BFI trucks. Surrey hopes the new biogas facility will begin operation in 2014.
Toronto was supposed to head in this direction as well, but from what I understand the plan has unraveled under the administration of Mayor Rob Ford.
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TowerLabs turns tall buildings into “laboratories of change”
My Clean Break column this week looks at a small company in Toronto called TowerLabs that helps get green building technologies tested and ultimately embraced by major condo and tower developers, a notoriously conservative bunch at the best of times. The company is a spinoff of condo developer Tridel, and so far its efforts at matching up tower builders with new cleantech startups is showing strong results.
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Technologies abound, many of them developed in Ontario, with promise to reduce the amount of energy consumption in buildings, particularly the big energy-hogging towers that dot our urban and increasingly suburban landscapes.
But the companies that construct these giant towers are notoriously conservative, as are the banks that fund them, so cracking into this massive market hasn’t been easy for newcomers.
Jamie James is trying to break down some walls. As a sustainability adviser to Canadian condo builder Tridel for nearly 10 years, James helped build an internal R&D program that tested out the performance of new energy-efficiency technologies for buildings.
In 2010, with Tridel’s blessing and support, he decided to “externalize” the program and expand it to other tower builders, with the goal of speeding up the time it takes to get new green building technologies to the larger marketplace.
Along this path, James found a partner in MaRS Discovery District, which donated office space. The non-profit social venture TowerLabs was born.
“I go to cleantech innovators who are targeting the real estate sector with the proposition that I can get you into the buildings and working with potential customers,” James explains.
TowerLabs acts as relationship maker and project manager, helping to get the technology installed and its performance measured in both real-world and test scenarios. “To go into a building and have real-live demos can go a long way toward showing that something is viable,” he says.
The approach is already paying off for Vancouver-based dPoint Technologies, which has developed a new type of air ventilation system that dramatically reduces the need to heat or cool fresh intake air, depending on the season.
Some rooftop ventilation systems found on condo buildings will take fresh air from the outside, heat it (if in the winter), and blow it through the inside of the building via a network of ducts. The air flows into the hallway of each floor and, moving through the gap at the bottom of doors, enters each condo suite.
Stale warm air, meanwhile, is expelled through the bathroom fans of individual suites. When that warm air is ejected, so is the energy within it.
The dPoint system, or Energy Recovery Ventilator, takes a very different approach. Rather than have fresh air come from a central ventilation system on a rooftop, each condo unit has its own individual air intake and exhaust box.
As warm, stale inside air is exhausted the dPoint system instantly recovers and transfers the heat to the incoming flow of fresh air. It does this using a special polymer membrane that also filters out impurities and transfers humidity between the two air flows as they move in opposite directions.
“This is really a dramatic shift in the way a building breathes,” says James, adding that the dPoint technology passed the “sniff test” and is gaining traction after a few initial tests with Tridel.
With TowerLabs’ help, about 740 dPoint systems are now being installed in two Tridel condo towers in Scarborough.
“If all goes well, dPoint go from being a near total unknown in the market less than 18 months ago to being a specification for the largest condo builder in Toronto,” James says. “So that’s kind of proving out the approach we’re taking.”
Tridel continues to play a key role, but TowerLabs is hoping to bring on other builders. It also plans to test out technologies at the tower being built as part of the expansion at MaRS.
Another technology being put to the test is a new type of variable speed motor used in heating, ventilation, and air conditioning systems from Toronto-based start-up InMotive.
To push warm and cool air around requires fans, and the motors that power those fans often only operate in two modes: completely on, and completely off. One way of saving energy is to swap out those motors with variable speed versions that can slow down or speed up based on air flow demands.
What InMotive has designed it was it calls a mechatronic variable speed drive that is more efficient and requires less maintenance than conventional variable-speed motor designs. TowerLabs helped the company get its first prototype tested in a high-rise building.
“The goal was to prove that the concept worked, and they achieved that,” says James, adding that more tests are planned as the product evolves.
TowerLabs also has Tridel testing out a solar co-generation system, which supplies electricity through photovoltaic panels and harvests solar heat at the same time.
“Once you get the innovation in there you can really change its fate overnight,” he says.
Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies.
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Airline griping over EU aviation carbon tax isn’t about the consumer
Here’s my take on the EU aviation carbon tax that is causing a stink with major world airline carriers:
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My family flew to North Carolina during the holiday to visit relatives and, being aware of new baggage fees, we made every effort to pack lightly.
Of two adults and two children we had only one item to check in. Not bad. But it still meant paying $25 to get the bag to Charlotte and another $25 to get it back home. Had we each checked just one bag for our one-week trip, it would have cost the family $200.
I point this out because I’m perplexed by Air Canada’s strong opposition to the European Union’s new aviation carbon tax, which went into effect Jan. 1.
The airline — as well as other members of the National Airlines Council of Canada — has no problem arbitrarily adding $50 to the price of a 2,500-kilometre round trip to the United States.
But it won’t tolerate the European Union slapping on a carbon tax that would only add $1.45 to a $500 round-trip ticket between Toronto and Frankfurt, Germany, a journey that covers five times the distance.
How did I come to $1.45? Anyone can calculate the impact on any trip to Europe. Just go to the website of the International Civil Aviation Organization at and click on the carbon calculator link at the bottom-left of the screen. Or click here.
A round trip between Toronto and Frankfurt generates 922 kilograms of carbon emissions per person. Per tonne, the price of carbon emissions on the European market is about $10.50, so the price for 922 kilograms would be $9.68.
But that’s not what airlines would initially have to pay per passenger. Under the new European aviation tax scheme, airlines still get a free pass for 85 per cent of their emissions. With the tax only applying to the remaining 15 per cent, that works out to $1.45 that will surely be passed along to consumers.
As industry observer Bill Hemmings said, “Commercially it’s a non-event.” Airlines arbitrarily change online flight prices on a minute-by-minute basis by much larger amounts.
Yet Air Canada and its fellow airlines in Canada, the United States, China, India, Russia and Japan insist on demonizing the fee and amplifying talk of trade wars and unproven claims of job destruction. It doesn’t matter that the European Union Court of Justice ruled recently that the new tax does not contravene international law.
“This ruling by no means settles this matter,” George Petsikas, president of Canada’s airline council, said defiantly after the European court ruling.
Those opposed to the EU’s actions argue that the matter of emissions reductions in the global aviation industry is best addressed through a “coherent, multilateral framework” via the International Civil Aviation Organization (ICAO).
The solution, they feel, is to create yet another international initiative that likely will lead to more delay and inaction on pressing climate matters.
Been there, done that. What’s admirable about the EU approach is that it’s about more action and less talk. Understandably, it’s tired of waiting for the rest of the world to get its act together.
The aviation sector accounts for 3 per cent of global emissions, but both its share of global emissions and its absolute contribution are expected to grow under a do-nothing scenario that isn’t sustainable.
To be fair, the industry hasn’t been idle. Fuel efficiency has improved by 16 per cent between 2001 and 2008, according to the International Air Transport Association. Since 1990, major Canadian airlines have improved fuel efficiency by 31 per cent.
But it’s not enough, and there’s a whole lot more that can be done. A sector-specific carbon tax that grows gradually and includes more countries over time will accelerate innovation and give the most fuel-efficient airlines an edge over competitors.
As airline fleets are renewed there will be greater incentive to embrace more efficient engine technology and light-weight materials, such as carbon fibre, in the design of new aircraft.
The air transport association estimates the industry will spend $1.5 trillion on new aircraft by 2020, resulting in more than a quarter of the global fleet being replaced. It’s important to make sure new aircraft are built and purchased with fuel-efficiency top of mind.
Airlines will also be more motivated to use renewable jet fuel products in old and new aircraft to offset their carbon footprints. There’s tremendous promise with respect to carbon-neutral jet fuels derived from algae, wood waste, inedible plants such as camelina, and even industrial waste gases.
One advantage is that aviation is a relatively easy market to target. There are fewer than 2,000 airports around the world that serve as major fuelling hubs for airplanes, so the required infrastructure changes to accommodate renewable jet fuel are quite manageable. Contrast this with the hundreds of thousands of fuelling stations that service cars worldwide.
Jet fuel also represents less than 8 per cent of global demand for oil products, so it’s not as daunting as tackling the market for consumer vehicles, which consume more than 40 per cent of oil supply.
The industry says it is already going down this innovation path. That only makes the EU carbon tax even more benign. The EU, meanwhile, has said that any airline headquartered in a country with similar emission-reduction policies would be exempt from the EU tax.
So what, exactly, is the fuss all about? It’s about the rest of the world not liking Europe taking the lead and telling it what to do, and even though it’s clear that we need to do it.
It certainly isn’t about the financial interests of travellers, who have been and will continue to be penalized much more by arbitrary fees designed to pad the bottom line.
Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies. tyler@cleanbreak.ca
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Meltdown… a fitting word to describe 2011
High and volatile commodity prices for foreseeable future means most resource-productive corporations will be market leaders
I touched on this McKinsey report earlier, but my most recent Clean Break column delves a bit deeper into the consultancy’s analysis of commodity trends past and future, and how this will impact the way corporations operate.
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Has the global economy entered a long period of persistently high, volatile commodity prices?
That’s a question asked recently by international consultancy McKinsey & Co., which analyzed a century of data and found that the trend – for at least the next 20 years – doesn’t look good.
The previous 100 years told a different story. Since 1910, it found that the average combined price (inflation-adjusted) of food, agricultural raw materials, metals and energy reached its lowest historical level in the late 1990s.
Sure, there were big dips during the post-World War I depression and the Great Depression a decade later. But major technological advancements in areas such as exploration, extraction and cultivation allowed us during prosperous times to satisfy the demands of a growing global population, while keeping commodity prices at record lows.
“This ability to access progressively cheaper resources underpinned a 20-fold expansion of the world economy,” according to McKinsey’s analysis.
But that same analysis shows that the past decade has bucked a century-long trend. The commodity price decline achieved over the previous 90 years has, in just eight years, been completely wiped out, says McKinsey. Pre-WWI peak prices were surpassed in 2010, and all of this is happening during extremely trying economic times.
Shouldn’t commodity prices, like during past recessions and depressions, be falling?
Not this time around, the consultancy says. “Our analysis suggests that they will remain high and volatile for at least the next 20 years if current trends hold — barring a major macroeconomic shock — as global resource markets oscillate in response to surging global demand and inelastic supplies.”
There are many reasons why this time is different. Our world population surpassed seven billion in 2010 and of that, three billion will join the ranks of middle-class consumer over the next two decades, putting immense stress on those natural resources that give us energy, food, metals and fresh water.
McKinsey, which says we are entering a new era for commodities, throws out a few sobering stats: by 2030 the global vehicle fleet will double, per-capita calorie intake in India will jump 20 per cent, and Chinese consumption of meat — production of which is energy- and water-intensive — will rise 60 per cent.
Technology, no doubt, will continue to help us boost the supply of the commodities we have come to depend on, but the concern is that it can’t do it fast enough to meet rapidly growing demand.
Meanwhile, attempts to do so will require more expensive approaches and access to more remote locations — for example, drilling for oil in the Arctic — adding cost and putting more pressure on the fragile ecosystems we depend on.
On the issue of environment, there’s also the parallel need to rein in carbon emissions to avoid catastrophic changes to the climate by the end of this century. In other words, what we’re faced with today is unprecedented, and it will require an unprecedented response.
Of interest is that some corporations are already responding, and in doing so are positioning themselves as leaders of their respective packs over the long run.
A recent Harvard Business School study that tracked the performance of 180 corporations over nearly two decades found that the most progressive companies with respect to sustainability policies and practices outperformed their peers.
A big part of this is about resource-productivity. As commodity prices increase those companies that can best minimize waste and be most efficient with the consumption of energy and water are also the ones that will be most competitive.
In addition to cutting costs and reducing their exposure to volatile commodity prices, they’ll reduce their greenhouse-gas emissions and avoid paying future prices placed on carbon.
McKinsey says the future will be all about “squeezing greater productivity” from natural resources. “Better resource productivity could single-handedly meet more than 20 per cent of forecast 2030 demand for energy, steel, water and land,” it estimates.
This bodes well for the many clean technology companies I have written about in this column over the years.
Never has there been a greater need for technologies that can help us, for example, reuse scarce water resources, reduce the carbon footprint of the products we consume and services we use, and turn what has traditionally been considered waste into valuable products or sources of energy.
These may be trying economic times, but the companies that test drive and ultimately embrace these technologies will be much better off in the long run. There will be short-term risks, but they must be measured against the longer term risks of not acting.
This is something investors may want to keep in mind as we enter 2012.
Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies. Contact him at tyler@cleanbreak.ca
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Ontario, as expected, delays bulb ban — and its reason for doing so doesn’t stand up
On Dec. 16 I first hinted it would happen — and now it has. Just days before Christmas, the Ontario government has backed away from plans to start phasing our inefficient light bulbs on Jan. 1, 2012. You can read in my earlier post why I think that is a mistake, and how the McGuinty government can no longer be believed when it says it cares about the impacts of climate change and recognizes the urgency of reducing greenhouse-gas emissions. Let me be clear: the Green Energy Act is great and full of potential, and the feed-in-tariff program is helping create green jobs, but it’s probably one of the most expensive ways to reduce emissions in Ontario. The government likes to point to the coal phaseout as if that’s all that needs to be done, but by neglecting the low-hanging fruit that is energy efficiency, it is showing that it’s still only interested in half-measures and sexy solutions that make for a great photo opp.
But what fires me up most is Energy Minister Chris Bentley’s reason for the delay to 2014. He more or less blamed the federal government for being first to impose a delay, telling the Toronto Star it was essential to harmonize with the federal schedule. “To ensure a consistent approach and to make compliance easier for consumers, retailers and manufacturers, the province proposes to harmonize compliance dates for incandescent light bulbs with the federal government,” the Star quotes an energy ministry official in a statement.
This completely contradicts Ontario’s earlier motives. Remember, it was Ontario that made the first move, announcing in mid-April 2007 it planned a phaseout of inefficient bulbs. This made it the first jurisdiction in North America to make such a commitment. Apparently harmonization of policy wasn’t a concern back then, as the federal government didn’t announce its intentions to do the same until a week later. McGuinty at the time basked in the glow of showing leadership on this issue. Leadership and setting an example mattered. Now it apparently doesn’t. Following is more important now.
British Columbia, meanwhile, announced its own planned ban after Ontario and has already followed through. That’s leadership, the same kind of leadership it showed by introducing a carbon tax.
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Biofuels production is not our wisest use of limited land resources
My Clean Break column this past week looks at the missed opportunity of growing crops for biofuel production when making green chemicals is a higher value proposition, both economically and environmentally.
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About seven million tonnes of grain corn was grown in Ontario in 2011, and by year’s end roughly 30 per cent of that is expected to go toward ethanol fuel production.
Let’s ignore for the moment the whole food-versus-fuel debate, and assume that devoting nearly a third of Ontario corn production to making renewable fuel doesn’t help drive up global food prices, or for that matter, reduce our capacity to feed the world.
Let’s focus instead on the use of corn as part of a greenhouse-gas reduction strategy that returns more economic value per harvested bushel. Through this lens, is biofuel production the best use of a renewable but also land-limited resource?
Corn, after all, doesn’t have to be made into ethanol and burned in the gas tanks of our cars to reduce our dependence on fossil fuels. It can also be used to make a variety of “green” chemicals that form the basis of a wide variety of products currently made from petroleum-based chemicals.
Let’s take, for example, Burlington, Ont.-based EcoSynthetix, which takes starch from corn to make certain biopolymers. These biodegradable biopolymers can displace petroleum-based ingredients used to make coatings for packaging and cardboard, adhesives, carpet backing, building materials and a wide range of other products.
John van Leeuwen, chairman and chief executive of EcoSynthetix, which had a successful initial public offering on the Toronto Stock Exchange in August, says he can make $35 worth of biolatex for every bushel of corn the company consumes in its process.
Ethanol, by comparison, fetches about $10 for every bushel of corn, he says. Indeed, the amount of corn that’s consumed annually by 10 large ethanol production plants – out of about 200 in North America—could probably supply enough starch for the entire emulsion polymer market worldwide if it were to switch to 100 per cent biopolymers.
More than that, EcoSynthetix’s biopolymer can compete head on with petroleum-based polymers that currently dominate the marketplace, unlike the heavily-subsidized ethanol industry. “We don’t need subsidies. We can actually go into a deal and offer a discount against petroleum-based products to win business,” says van Leeuwen.
Asked about the growing volume of corn consumed by the ethanol industry, van Leeuwen, without pointing fingers, responds sensibly. “We really need to be thoughtful as an industry to make sure what we make derives maximum value from our agricultural feedstocks.”
Such wise advice could be directed to Canada’s bioproducts sector as a whole, which as I wrote in August has been shrinking when it should be flourishing. That was the conclusion of a report by the Richard Ivey School of Business, which called Canada’s performance on the global stage “disappointing.”
In that report, ethanol represented more than two-thirds of Canada’s bio-products market, while higher-value polymers accounted for just 2 per cent and organic chemicals 12 per cent. In the area of green chemicals, Canada’s landscape was described as “stagnant.”
This isn’t just about corn; it’s also about how we choose to use agricultural residues, municipal organic waste, wood waste, algae biomass, and non-food crops.
Does it make sense to just burn this material for energy, or convert it into fuel so it can be burned? Or, should we be doing a better job of targeting niche markets with high-value “green” products that are just as effective at reducing our dependence on fossil fuels?
“There is an overemphasis on biomaterials as a source for energy,” says Dr. Rui Resendes, executive director of Kingston-based GreenCentre Canada, which helps commercialize green chemistry innovations coming out of Canadian universities.
And that energy isn’t as green as often claimed. After all, Resendes points out, the fertilizers used to grow crops are petroleum-based, as are many other products consumed along the supply chain.
“Just because you pluck it out of farmer’s field doesn’t mean it’s sustainable,” he says, adding that the entire value chain has to be considered. This is where green chemistry and the products it supports play a crucial role. “I’m a firm believer in technologies that are addressing niche markets where volumes are much smaller and margins are much higher.”
Green chemicals may be a broad category, but it’s one that serves highly targeted markets where petroleum-based products currently dominate, including the manufacture of fertilizers, polymers, and lubricants, to name a few.
And, as EcoSynthetix is demonstrating, you can be competitive and aim for profitability without relying on subsidies.
This isn’t to suggest we abandon biofuels. Renewable jet fuel, for instance, is emerging as an attractive subcategory of green fuels and fulfills a role that electricity, while an alternative source of energy for consumer vehicles, simply can’t based on current-day technology.
But certainly Canada can have a much more balanced portfolio, and that means doing a better job of nurturing our green chemistry sector, and – in the particular case of corn – getting more pop per kernel.
Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies.
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Breaking: U.S. delays bulb ban. Is Ontario poised to backtrack on its commitment?
When the Canadian federal government decided earlier this year to delay plans to phase out inefficient light bulbs, it drew the ire of environmental groups who argued the delay was unnecessary and would further set back the government’s already weak emissions-reduction strategy. The Pembina Institute, for example, said the two-year delay — from Jan 1, 2012 to Jan 1, 2014 — would negate 13 million of avoidable greenhouse gas emissions and potentially $300 million in permanent energy savings.
Fortunately, the provinces can do their own thing. As of Jan. 1, 2010, for example, retailers in British Columbia have been prohibited from restocking 75-watt and 100-watt incandescent bulbs. It was also assumed that Ontario would follow through with a similar commitment beginning Jan. 1, 2012, but there’s a strong possibility the government will backtrack at the 11th hour.
I was curious about the status of the planned phaseout, so put in a query to the Ontario Ministry of Energy. Here was the initial reply: “Following the decision by the federal government, Ontario is reviewing its options to proceed with proposed efficiency standards for general service lighting,” wrote spokesman Paul Gerard in an e-mailed reply. I asked whether the review would continue into next year, meaning the government would miss the Jan. 1 start date of the phaseout. “The outcome of the review will be announced very shortly, before the new year,” Gerard replied.
I’m not expecting good news — you never get good news during the holiday season. It may be that the province will stick to its guns and follows through, but I’m getting the feeling they won’t given the fact that, just today, U.S. Congress succeeded in neutering its own country’s 2012 light bulb phaseout by preventing the U.S. Department of Energy from enforcing the law, as detailed in the Energy and Independence Security Act 2007.
That would be a tremendous shame, making one question whether Ontario — despite the rhetoric — is taking the issue of greenhouse-gas reductions seriously. It would also further tarnish Canada’s already lackluster reputation on the climate file in the aftermath of climate talks in Durban, South Africa. At a time when we should be adding to our efforts, it seems we’re instead backtracking on previous commitments, including delaying our participation in the Western Climate Initiative (fortunately Quebec is following through). The momentum is in the wrong direction, and this is alarming. Perhaps some public pressure is needed over the next few days to convince Ontario to stick with its guns and start the light bulb phaseout Jan. 1, as planned.
Let’s be clear, this isn’t about banning incandescent bulbs — this is about bulb efficiency, where compact fluorescent bulbs and LED bulbs have the advantage. But there have been innovations around incandescent technology as well. As Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, pointed out today, “five manufacturers are now producing and selling efficient incandescent bulbs that meet the standards.” In the U.S. context law-abiding companies will still follow the rule. “Less scrupulous companies will take advantage of the lack of enforcement, selling products that waste energy and increase energy costs for consumers. If many manufacturers take advantage of the lack of enforcement, recent investments that these five manufacturers have made to produce efficient lamps could be undermined.”
Ontario needs to consider this as well. Many companies have made business decisions based on the expectation of a phaseout starting Jan. 1. Companies such as Sears Canada and IKEA have already stopped selling (inefficient) incandescent bulbs, proving that the time is right to follow through. There’s no justification for putting on the brakes now. Indeed, by forging ahead Ontario can stand out as a leader and not fall under the shadow of a federal government that’s more concerned about short-term economic gain than the long-term health of our economy and environment.
So what path will you choose, Mr. McGuinty?
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Nuclear power at a crossroads
My Clean Break column this week picks up on the noticeable absence — or quietness — of the nuclear power lobby at the climate talks in Durban these past two weeks, and the declining fortunes of the industry. This is good or bad, depending on your perspective. If you’re a George Monbiot, you’re worried about the impact on our already impossible struggle against climate change. If you’re Greenpeace, you’re saying good riddance. Some believe in a post-Fukushima world that low natural gas prices and the high cost of conventional fission reactors are creating a rare opportunity for the emergence of better, safer and lower-cost nuclear technology designs. That may be so, if you’re an optimistic, but those will still take time to develop… ah yes, time. We could use more of that.
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For years the nuclear power lobby has muscled its way into international climate negotiations and asserted itself as a critical part of any serious effort to reduce global greenhouse-gas emissions.
Not so much during climate talks in Durban, South Africa, these past two weeks. There were some media mentions and the occasional sound bite from industry officials, but the nuclear lobby — still suffering from a Fukushima hangover — stayed relatively quiet this time around.
Even Patrick Moore, Greenpeace [alleged?] co-founder turned nuclear booster, seems to have moved on. His gig these days is defending the oilsands, part of a recent advertising campaign from the Canadian Association of Petroleum Producers.
The Fukushima disaster in Japan certainly served a blow to the nuclear power industry. The low price of natural gas and the global economic downturn — and reduced demand for electricity — hasn’t helped matters.
The economics of building new nuclear plants also remain in question. A report just released by the Ontario Sustainable Energy Association points out that even before the Fukushima accident, the decades-long trend of reactor projects being delayed and coming in dramatically over budget was still a reality, as recent experiences in Finland and France clearly show.
The Worldwatch Institute reported last week that generating capacity of the world’s nuclear power fleet dropped 2.4 per cent in 2011, causing nuclear’s share of the world energy mix to fall slightly.
The first 10 months of this year saw the closing of 13 reactors, contributing to a reduction in the total number in operation around the world to 433 from 441. Growth is happening in developing countries such as China, India and Pakistan, but these are far outweighed by reactor shutdowns in France, Germany, Japan and the United Kingdom.
So much for the much-heralded nuclear renaissance. “These numbers can hardly encourage the (nuclear) industry,” said Worldwatch president Robert Engelman.
As much as the anti-nuclear lobby must be cheering, these numbers also beg the question: if not nuclear, then what?
Some environmentalists, while not particularly fans of nuclear power, do worry about the pullback and how it will impact what are already pitiful efforts to reduce global greenhouse gas emissions.
If, for example, a decline in nuclear capacity means more countries — particularly China — burning more coal and natural gas instead of embracing more renewable energy, then we’re merely trading one risk for another (out-of-control climate change) with a more certain, broad-reaching outcome.
As U.K. Guardian columnist and environmentalist George Monbiot has said, “The choice between renewables and nuclear is a false one. We appear to need both” – as painful a reality as that might be.
If we accept this, then the question shouldn’t be about how to get rid of nuclear power, but about how to make it better and safer.
“For nuclear to gain significant share, it must change,” writes U.K. journalist Mark Halper in a recent report on emerging nuclear innovations, penned for Canadian cleantech consultancy Kachan & Co.
Fukushima gave the world cause for pause, according to the report, but it also created an opportunity to move the nuclear industry in a new direction. “There has never been a better time for mavericks to come forward with safer, better and less costly ways to split atoms or, in the case of the elusive but reachable notion of fusion, to meld them together.”
In Halper’s view, part of the problem is that the nuclear technology we have today was a poor choice from the start, given that it produces weapons-grade plutonium as its waste, is vulnerable to meltdowns, and can potentially release dangerous amounts of radioactive material if something goes horribly wrong.
There were many alternatives to choose from half a century ago, but the fission reactor design most in use today was the result of Cold War decision-making.
“As undesirable as plutonium waste is today, it was in demand during the atomic weapons build up of the Cold War, helping the water-cooled uranium reactor win the day in the 1960s,” Halper writes. “It was a VHS victory over several superior Betamax alternatives.”
Some Betamax alternatives, however, are trying to make a comeback. The Kachan report outlines a number of technology alternatives currently in play, some of them based on designs or ideas that have been around for several decades.
Included in this list are reactors that use thorium as fuel instead of uranium, or which are cooled using gas. Molten salt, pebble bed and fast-neutron reactors are also being seriously considered. And yes, even fusion technology, including a mechanical reactor from Vancouver-based General Fusion, is grabbing attention.
Some designs deal with the toxic waste and nuclear proliferation issues. Others improve significantly on safety, such as eliminating the potential for meltdown. This is all exciting news for those outside the old boys nuclear club.
Unfortunately, they don’t offer a quick fix. Our nuclear regulators, underfunded as they are, haven’t the resources and time to understand, let alone establish rules for, new nuclear reactor designs. It will take many years, perhaps decades, for competing technologies to take hold.
But time is something severely lacking when it comes to avoiding the worst effects of climate change. This, even with “old” nuclear technology in decline and better alternatives on the rise, is the conundrum we face.
Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies.
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Evergreen Brick Works: a panel and presentation on technology and sustainability
FYI: This is a presentation and panel that I participated in in late September at the Evergreen Brick Works Forum on Leadership, Innovation and Sustainability. We were confined to a PechaKucha presentation format, meaning you have to go through 20 slides and spend no more than 20 seconds on each one — i.e. total presentation of just six minutes and 40 seconds. Needless to say, we all felt rushed, but it allowed more time for discussion. You can find the other panels here, as well as video of the keynote presentation from Jeremy Rifkin.
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A Brazilian solar initiative serves as model to better the lives of world’s poorest
My Clean Break column this weekend takes a look at the efforts of Brazilian social entrepreneur Fabio Rosa and how, with the donation of 560 solar panels from Canadian Solar Solutions, a subsidiary of Canadian Solar Inc., impoverished villages in the Amazon will soon get a clean, reliable source of power for keeping lights on, pumping clean water, and keeping medicine, vaccines and food cooled. This initiative demonstrates clearly how solar, beyond simply adding more renewable energy to the power mix of developed countries, has the potential to directly improve the well-being of millions of individuals around the world living on a few dollars or less per month.
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A number of impoverished villages in Brazil’s Amazonia region will soon receive a life-changing Christmas present from Canada.
As you read this a shipping container full of 560 solar panels is en route to Brazil aboard the cargo ship MSC Santhya. The panels, worth nearly $1 million (when shipping and delivery costs are factored in), were donated by Canadian Solar Solutions Inc. and manufactured out of the company’s new facility in Guelph.
Once these made-in-Ontario panels arrive in Brazil, they will be transported to a handful of villages and, come spring 2012, installed atop schools, hospitals, and water-pumping stations. The power they produce will be used directly, or stored in golf-cart batteries so the energy from the sun can be used at night.
It’s all part of a program started in 2001 by Brazilian social entrepreneur Fabio Rosa, who, along with help from Canadian investigative journalist Paul McKay, are on a mission to bring clean water, light, refrigeration, basic communications and, ultimately, better health and education to some of the poorest people on the planet.
McKay was a reporter at the Ottawa Citizen when he travelled to Brazil in 2004 to do a series of stories. It was there that he met Rosa and learned about how something as simple as a solar panel could have such a profound impact on the lives of so many.
Solar may have a growing role to play in cleaning up Ontario’s electricity system, creating green jobs, and helping homeowner reduce their environmental footprint – and their guilt.
But in these remote Brazilian communities with no connection to a power grid, solar technology can both enrich and save lives. Medicine, vaccines and food can be kept cool 24 hours a day. Light can come from CFL bulbs and LEDs instead of kerosene lamps that emit toxic fumes indoors. Sun-powered pumps can supply a constant flow of clean water.
The problem is villagers typically make as little as $2 a day. “There are 20 million people in Brazil without access to electricity and they can’t afford the panels themselves,” explains McKay, who in “retirement” is now a green energy advocate running his own foundation that acts as a kind of North American ambassador to Rosa’s efforts.
“Most utilities there have been privatized and are not interested in going after tiny customers in remote places.”
Rosa is offering these villagers an alternative, but to be clear, he isn’t giving the technology away. What he has developed is a low-cost leasing model that makes the systems and the energy they produce accessible to the poor.
Typically, he will install a solar panel, a battery, a charge controller, a few lights, and a water pump in each home and then charge less than $15 a month for what, in essence, is the service this equipment provides.
Keep in mind that these individuals would already be paying $15 a month on candles, batteries, and kerosene that would no longer be required, so there is no additional financial burden. What they get in return, however, is a far better quality of life and work.
Something as simple as the ability to pump water automatically for a cash crop operation can also generate new income for villagers.
The panels supplied by Canadian Solar will go a step further. Instead of being used to support individual households, they will support entire villages by bringing power to schools, hospitals, central pumping stations and even Internet and cellphone stations.
Milfred Hammerbacher, president and chief executive of Canadian Solar Solutions, which is a subsidiary of Canadian Solar Inc., says the decision to get involved came in 2010 after McKay brought Rosa to the company’s factory for a presentation.
The company fell in love with the idea, recalls Hammerbacher.
“It was a great opportunity for us to help out,” he says. “On a personal level, it’s really why I got into the solar business in the first place. There are so many cases where a few solar panels can make such a huge difference in people’s lives.”
Next spring, the company will be sending down a team of employees to help install the systems.
McKay says the donation of so many panels is significant and takes Rosa’s program to a new level. It has taken years to install 300 systems, as Rosa could only raise enough money to purchase five to 10 panels at a time. He also has to raise funds for all the batteries, pumps and lights that go with each system.
He hopes that by having Canadian Solar show such good will, other suppliers and non-governmental organizations will step up to the plate. In that regard, McKay’s and Rosa’s next priority is to get a similarly large donation of batteries to go with the panels.
The potential is there to grow Rosa’s program throughout Latin America and into the poorest regions of Africa and Asia. Indeed, that’s their plan.
It’s an idea that Hammerbacher finds appealing. “This is something we’d like to do on a long-term basis,” he says. “There are many other organizations like Rosa’s around the world that we’d like to support if we can.
“I hope a lot of other solar companies follow.”
NOTE: If you represent a company that would like to help fund or contribute solar panels, batteries, LED lights, water pumps and/or power electronics to Rosa’s initiative, please contact Paul McKay at paul@paulmckay.com
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One more day to beg: Movember campaign ends tomorrow at midnight
My team at Corporate Knights — my new gig these days — has raised more than $1,000 to go toward prostate cancer research, part of the much-celebrated Movember campaign. It’s not bad, but not nearly as much as we had hoped. This is my last ditch effort to tap into my Clean Break network for some 11th-hour donations.
If you’d like to donate (of course you do) please visit our special donations page. The money goes toward a terrific cause. Most of the men in our office are now sporting not-so-flattering facial hair. Myself, I usually have a goatee on display so my participation was more about what I shaved off than what I grew. That said, I am now reminded how much I look like my father — and man, is he a stylin’ dude.
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Oil and gas delivery giant Enbridge Inc. makes first solar tech investment, throws $10 million into Morgan Solar
Gotta say, I found this a surprising one. Enbridge Inc., the Calgary-based oil/natural gas pipeline and delivery company, is investing $10 million in concentrated solar PV manufacturer Morgan Solar, which is based in Toronto. I say surprising because Enbridge, while it has invested in solar, wind and geothermal projects before — the kind that generate immediate cash flow and come with an acceptable level of risk — has never really put its money behind a greentech play, with the exception of fuel cells. It may be true that $10 million is couch change for this multibillion-dollar corporate giant, but keeping in mind this $10 million could have been spent elsewhere, this is an intriguing move by Enbridge.
Does it want to be in the same club as integrated oil company Cenovus, which has captured many headlines related to its venture investments in everything from fusion power to water desalination technology? Not sure, but perhaps this is the first of more tech investments to come — as sign that corporate capital is playing a more important role in a country where venture capital is hard to come by.
Morgan Solar, mind you, hasn’t had a tough time raising capital. In March 2011 it aimed to raise up to $25 million (U.S.), but with Enbridge joining the party the round is oversubscribed at $28.8 million. The interest in Morgan Solar is understandable. It has developed an inexpensive and innovative light-guide solar optic that captures and directs incoming sunlight into a tiny, high-efficiency, finger-nail sized PV chip, achieving a balance of cost, efficiency, weight, and low-profile (i.e. the system is really thin) that may be unrivaled in the market. The company says its systems cost less to build, ship, deploy and maintain than competing technologies. Indeed, it’s bold enough to say that its Sun Simba product will offer a lower Levelized Cost of Electricity (LCOE) “than solar technologies on the market today, or known to be under development.”
It should be pointed out that Enbridge owns three solar facilities that together represent 100 megawatts of capacity. Most of that comes from its 80 MW Sarnia Solar Project, which until recently was the largest operating PV facility in the world. It’s unclear whether Enbridge eyes using Morgan Solar’s CPV systems in future projects, but the potential certainly exists for collaboration on smaller demonstration projects. The reality, however, is that Enbridge has so far let others take on solar development risks. It then steps in and buys finished, operational projects that are already generating cash.
Morgan has other partners in the mix, some of them strategic. Iberdrola S.A., one of the world’s largest renewable-energy utilities, is a strategic investor, as is Nypro Inc., a contract manufacturer specializing in precision injection molding. Nypro, for example, makes the light-guide optic for Morgan Solar.
Morgan Solar, by the way, was recently named — for the second time — to Corporate Knights’ Next 10 list of most promising Canadian cleantech companies.
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Some letters from readers you just have to publish… welcome to my world
I was expecting nasty letters from my Clean Break column today but I found this one quite entertaining. Figured I’d post it here to give readers a sense of what the world is up against. Enjoy:
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I am wondering which planet you are living on because your article shilling for a carbon tax on Ontarions to deal with the fiscal challenges is out-of-touch with reality and arrogant.
It is obvious that you are another well-paid, fat-cat liberal with a generous expense account because it is so easy for you to push for such a dangerous, asinine, and egregious policy while you are living in your ivory-tower world. There is no doubt in the minds of readers that you and your dangerous articles are generously funded by the Green Lobby (Wind & Solar) industrial-journalism complex. People like you masquerading as reporters and journalists are the proverbial pig-at-the-trough who always want tax dollars wasted on expensive and unproven schemes and technologies.
At a time of the most severe recession in one’s memory, job losses, and financial misery for millions of people, such an approach would be financially disastrous for taxpayers, consumers, and the province. Instead of promoting growth, this insidious new tax will simply flip the province back into a prolonged slump or stalled recovery. Prices of gasoline and all commodities will shoot up if a carbon tax is introduced and this will kill-off all consumer spending and consumer confidence. Such a new carbon tax will increase and prolong employment instead of creating new jobs.
Ontarions currently pay one of the highest taxes in the world for an out-of-touch, fraudulent, kleptocratic, tax-and-spend government which blows away hard-earned taxpayer dollars on welfare bums, labor unions, special interest groups, corporate welfare queens, and anyone who has a loud megaphone in their hand.
It is easy for fat-cat and absurd journalist like you who smokes rare cuban cigars, eats caviar, and drinks the finest French champagne (all on a well-funded expense account with no limits) to sit in your exalted ivory towers dreaming about and advocating for all kinds of new taxes.
I do not ever trust any government and especially this government of Dalton McGuinty (who has a record of lying and broken promises) to impose a new tax and cut income taxes later, as you are suggesting in this article. Government is like a drug addict which wants just more new taxes like another high.
The current government is like a vermin or parasite which works on the backs of taxpayers instead of working for taxpayers.
The legacy of the current Fiberal Premier is tarnished and he will go in history as one of the most incompetent, corrupt, and prevaricating Premier of Ontario.
Taxpayers will openly rebel against this government if any more new taxes are imposed. People are fed and sick of feeding this bloated, corrupt, and arrogant government.
So, in the future, before you write any more reprehenisble articles advocating for new taxes, think about the impact of your asinine articles on the pocketbooks and wallets of ordinary people.
It is because of such stupid articles like this that I have cancelled my subscription to the paper edition of the Toronto Star. I would love to see this Liberal Star newspaper go into oblivion.
Instead of advocating for new taxes to deal with fiscal challenges, I would strongly suggest to you and challenge you to write even one article advocating for lower taxes, smaller government, a reduced bureaucracy, government services outsourced to the private sector, and less waste, spending, and corruption in government. I doubt it if you have even contemplated such an article.
All the best to you personally but wish you the worse in your career,
Canadian who is disgusted with the kleptocratic governments.
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