In a sign of the growing importance of renewable sources of energy, global investment in wind power, solar power, and other alternative forms of energy last year exceeded investments in coal, oil, and carbon-based energy for the first time.
Last night I had the dubious distinction of being the guy sitting next to former director of the CIA, Ambassador, and Undersecretary of the Navy (a post he held before I was born), and current Senior Vice President of Booz Allen Hamilton and partner at Vantage Point Venture Partners, R. James Woolsey.
He has a fairly clear message that he is happy to share with anyone that will listen:
The United States is at grave risk to both “malignant” and “malevolent” disruptions to the grid and that threat can be addressed through distributed renewable generation which can simultaneously reduce the importance of oil to the ignominious fall from grace of salt.
I have had the pleasure of hearing him speak and spending some time with him before moderating last night’s event, and despite how highly I thought of him before, he did not disappoint. His is a decidedly aggressive approach to the US’ energy future, and like the well trained litigator he is, he presents his case very well. Electric vehicles and distributed renewables are the hallmarks of an utopian (utopic?) energy future, that would leave OPEC states reeling with the need to find, as he puts it, honest work, and reducing the disposable cash reserves some currently use to fund terrorist activities.
Can you make lemonade from algae?
Figuratively, yes. A bunch of students from the University of Michigan and Michigan State University have a business plan to use algae to treat wastewater and make biofuels.
It’s a double play, like taking lemons and making a cool, refreshing drink. Or maybe even a three-pointer, since these are rival schools.
The students, calling themselves Team Algal Scientific, were recently awarded the first-ever Clean Energy Prize from U of M and DTE Energy.
Until recently, T. Boone Pickens was better known for greenmail than green energy. Pickens – oilman turned corporate raider – leveraged Mesa Petroleum and Michael Milliken’s junk bonds to make billions during the 1980’s hostile takeover craze.
But with his recent $10 billion tilt toward Texas wind farms and solar, who’s to say whether Pickens is an energy visionary or just the consummate frontrunning egomaniac? One thing is certain: Pickens has always had a plan, and he’s been spotting trends and making fortunes in energy for over half a century.
The “Pickens Plan” is basically a $58 million marketing campaign to wean the US off foreign oil within 10 years by using natural gas for vehicles, and wind and solar for utilities – and for Pickens to receive as much credit for it as possible.
The economy has entered a stage of worldwide recession and pessimists argue that “renewable energy” is a bubble about to burst. Be it a smart decision to now publish a book in this field or not, “Investing in Renewable Energy: Making Money on Green Chip Stocks”
Author Jeff Siegel (→ read interview) wants to show his readers how to position their portfolio to achieve long-term investment success in the renewable energy field. He aims to explain how to tap into this market early, and logically, in order to capture unparalleled profits.
Here is the CleanTechies five line synopsis of the report:
Welcome to the era of declining oil supply, volatile energy prices, and increased emission of green house gases. We are sorry to report that the economy is not doing well, which will put a pinch on investing in both alternative and conventional energy sources. Unfortunately, the resulting higher energy prices will further negatively impact the economy.
A small shred of good news is that, collectively, modern renewables (as a source of electricity generated) are slated to grow the most and are poised to become the second-largest source of electricity soon after 2010. Unfortunately the IEA projects energy demand growth of 45% in the next 25 years with a 20% increase in the demand for oil.
Gordon Brown’s trip to the Middle East was a clear example that non oil exporting states are still very much affected by OPEC’s decisions. While OPEC nations continue to brazenly collude consumers have passed the tipping point and have made concerted efforts to cut OPEC’s impact out of the equation. Consumers have seen the impact on their economy and environment. Politicians have now realized that we will vote for them if they highlight their green credentials, and we know that by supporting locally sourced energy we are developing local employment and business opportunities.
The reality is that it will be hard to finance projects that are purely based on predictions for increasing prices. What green investments need are the foresight of people and entities that believe that their technology will yield considerable margins even under low oil prices – in the future if not immediately. These investors are out there; BP (formerly British Petroleum and now “Beyond Petroleum”) and Chevron have already shown a push towards becoming broader energy companies by investing in solar, geothermal and biofuel concerns. Companies like Monsanto beginning to play in the BioFuels game. Cynics might tout that this is good for marketing, and it is – but these companies understand investment in research and development. They have an appetite for risk, exploration is not cheap, and investing in exploration of different technologies as opposed to new oil wells has a similar cash flow profile.
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