Investing - MATTER - Covering the Clean Technology, Green and Sustainable Revolution

Multi-Tenant Buildings Present Green Challenges

Amelia Timbers — Wed, 07 May 2008 23:36:00 -0400

The Rocky Mountain Institute’s ‘Built Environment’ Team released a new report, “Barriers and Breakthroughs for Multi-Tenant Developments” to address multi-tenant buildings, a logistical pain in the butt for green innovators.

Selecting effective incentives to encourage multi-tenant buildings to adopt green upgrades is proving difficult for an array of reasons. Not only are tenants often contractually prohibited from making substantive changes to their rentals, but if they do, the benefit stays with the landlord, who can also retain the tax benefits. Additionally, landlords have been slow to adopt green design, doubting their return on investment. Environmentally minded tenants are left to lobby their landlords to argue the case for greening.

This is where the Rocky Mountain Institute’s BET comes in. The RMI-BET seeks to make it clear to landowners that making energy and clean-tech investments pay off, in the short and long term, for both tenants and landlords. In fact, it seems that environmental investments in real estate can raise the value of the property and may result in higher rental rates. The RMI-BET report also points to improvements in leasing procedures that can remedy issues, such as incorporating infrastructural upgrades into leases, anticipating renters’ realistic square footage needs, also suggesting strategies for marketing and financing. Read more or get the report at the Rocky Mountain Institute.

Al Gore Lands Another $683 Million For Green Investment

Thursday Bram — Mon, 05 May 2008 10:53:00 -0400

Generation Investment Management — the investment firm chaired by former Vice President and all around green guy Al Gore — announced over the weekend that it has set up an investment fund for green start-ups. The new Climate Solutions Fund reportedly has $683 million in its coffers. This announcement comes on the heels of last week’s new fund from Kleiner Perkins Caufield & Byers — a venture capital firm in which Gore has a significant leadership role. Reportedly, a sizable amount of the $500-million Kleiner Perkins fund came from Generation.

Between these two new funds, both Generation's CEO, David Blood, and Gore are heavily invested in developing green businesses. While their exact investments have not been disclosed, they’ve made it clear that they’re putting their money where their mouths are: Blood told the Financial Times that he believes that green investments are the only way to go in a tough market:

"A fear expressed by some is that the first thing to go in a downturn is the nice-to-have sort of investment. Some people put green investments in that category, but we think that is nonsense. This is not nice-to-have - it is fundamental finance . . . because the transition from a high-carbon to a low-carbon economy is a ginormous step that is going to happen quickly.”

Ford Cushions Environmental Impact With Soy

John Gartner — Wed, 09 Apr 2008 14:19:00 -0400

Ford is continuing to polish its green image by incorporating clean power and replacing petroleum with soy in manufacturing, and investors are taking notice. Last summer Ford announced it would use soy in the seat cushions of its 2008 Mustang as part of its green strategy. The company says using soy cuts the environmental impact of keep your tush comfy by more than 75 percent. Ford will put soy in the seats of more than 45,000 vehicles this year, including Ford F-150s, Ford Expedition and Lincoln Navigator SUVs. The company claims that the cost is the same, so why not go all soy? Ford also expanded the use of wind power by adding a third turbine to its power generation mix at its Dagenham Diesel Center where it makes diesel engines. One socially responsible investor group that has stock in Ford wants GM to follow its green lead. The Interfaith Center on Corporate Responsibility wants GM to be like Ford and disclose the details on how it will cut emissions by 30 percent as promised. Investors increasingly like to feel good about with whom they make money, and perception is all that's needed to gird a sagging stock. Look for sustainably minded investors to use the power of the purse to sway slow moving corporations.

Cleantech Group Plays Matchmaker

John Gartner — Tue, 26 Feb 2008 17:36:00 -0400

Investment and consulting firm Cleantech Group wants to connect companies interested in clean technologies with service providers who are up to the task. Companies can post requests for proposals (RFPs) for services or products, and Cleantech will screen the companies on the other end who can apply to fill the needs. WalMart is the first company to work with Accelerator. WalMart is looking for companies with sustainable practices in waste disposal as well as wind and water projects. The company is also expanding its investment arm into India. Top venture capitalist Vinod Khosla will be the Chair of the new India group. According to the company clean tech investment in India increased 58% last year to total of $210 million. India's economy is booming with clean technology and automotive industries such as Tata Motors ready to increase exports to the U.S.

Energy Brokers Embrace Green Finance

John Gartner — Wed, 20 Feb 2008 14:56:00 -0400

TFS Energy, which specializes in electricity and fossil fuel trades, has turned a green streak by launching a renewable and carbon finance division.

TFS Green Finance will provide clients with banking and brokerage solutions for the environmental markets. The company will participate in financing of renewable energy projects, clean tech investing, and carbon credit swaps. The new division will be led by Matt Williamson, who had previously worked for the U.S. EPA. He will work on TFS' program that assists companies in developing carbon credit trading programs developed under the Kyoto Protocol as well as creating verified emissions reductions (VERs).

It is encouraging that the big trading houses are seeing an opportunity in financing renewable energy projects as well as in carbon trading. Just as Chevron and BP are diversifying by developing renewable energy, so too it seems will companies who have traded fossil fuels will be active in "green financing" programs. Renewable energy projects have unique requirements, so having the "big boys" work with them is essential for renewable energy's growth.

One the one hand, we can be skeptical of companies that have traded for years in commodities that have contributed to climate change determining what is or isn't a verifiable emissions reduction credit. On the other hand, these same folks have extensive experience working with securities regulators, and if the carbon markets are to become massive and legitimate, then they will be an integral part of the mix.

From Lab to Market with Green Tech

Chris Jones — Wed, 06 Feb 2008 17:39:00 -0400

Getting technology out of the lab and into society's hands is a tremendous and exciting challenge for any scientist or researcher. Most labs and universities have some type of incubator group to help the process along, and at the University of California at Davis, they even put a green spin on the process: the Center for Entrepreneurship just announced they are taking applications for this summer’s second annual Green Technology Entrepreneurship Academy.

The Center for Entrepreneurship is sponsoring a five-day workshop, geared toward doctoral students, post-docs and research faculty in science and engineering that will cover technology validation, market and financial strategies and communication skills. Faculty, investors, and industry executives will be on hand to help students and researchers understand a technology's journey from lab to market.

The program runs July 7 - July 11 at the Tahoe Center for Environmental Sciences in Incline Village, Nevada. The Kauffman Foundation is the founding sponsor of this year’s program, followed by other sponsors that include Superfund Basic Research Program, the Nevada Institute for Renewable Energy and Pacific Gas and Electric Co., among others.

Now that environmental technologies are gaining a stronger foothold in the private sector, it's especially important that the next generation of scientists and researchers understand the dynamics and realities of the free market. And here's hoping that the next round of tech millionaires come from the green sector.

Golden Boy Of Clean Tech

Emily Setzer — Mon, 31 Dec 2007 09:44:00 -0400

It's almost a new year, and sometimes we need a little inspiration to really kick ourselves into gear and chase after our goals and dreams. This article about Saul Griffith may do just that. I've mentioned Griffith before here for his work with high-altitude wind technology. But he's also delved into a social networking site for those interested in crafts and do-it-yourself projects, a children's book about science and devices that turn human motion into electricity, to name a few. Perhaps one of the biggest keys to changing the world, helping people and protecting the environment with clean technology is not being afraid to fail. Those are the people venture capitalists seek out and the ones that others want to be around. Griffith, one of these people, proves this point nicely. He recently won the MacArthur "genius" award and received a huge chunk of money from Google Inc. to work with high-altitude wind with his firm, Makani Power Inc. I'm sure we'll hear more about Griffith and his ventures in the future, but for now, let him provide inspiration for the rest of us.

High-Intensity Fluorescent Lights: The Next Big Thing?

Emily Setzer — Tue, 04 Dec 2007 12:25:00 -0400

Sometimes it's the simplest things that wow people and really take off. This month, CNN Money thinks fluorescent lights is the trend to invest in. Yeah, they've been around a while, but it turns out that with a bit of tweaking, they are now even more efficient and usable. High-intensity fluorescent lights, produced by Orion Energy Systems, Inc., may be the next big IPO to watch out for, following past trends such as ethanol, solar stocks and electrical grid management firms. It turns out that big warehouses often don't use fluorescent lights because the bulbs just aren't strong enough, so the company has developed extra strong fluorescent bulbs that can save a company up to 50 percent in lighting costs and provide better light. And its Apollo Light Pipes use no electricity at all, instead using lenses to capture sunlight and force it indoors. Companies such as General Electric and Coca Cola use lighting systems from Orion, which has installed almost a million systems since its inception. About 19 percent of a building's carbon dioxide emissions typically come from lighting, so this is a smart way to reduce that pollution and save money.

Money Galore for Clean Tech

Emily Setzer — Sat, 01 Dec 2007 20:31:00 -0400

Now is the time to seek venture capital for clean tech. So far in 2007, U.S. venture capital firms have invested $2.6 billion in clean technology, a record amount. That's a 46 percent jump compared to the $1.8 billion invested in 2006, and we haven't even finished the year. Technologies attracting the largest wads of cash include those that conserve energy and resources, protect the environment or eliminate waste. California companies (read: Silicon Valley) are in the lead for garnering VC money, with Massachusetts and Texas trailing behind. Big media moves like Google announcing a major clean tech initiative and former vice president Al Gore joining a well-known venture capital firm are signs that this is a movement that's just barely begun and is sure to continue growing rapidly.

Go Go Google Power

Emily Setzer — Tue, 27 Nov 2007 23:24:00 -0400

If we are ever to really convince the masses to rely on and invest in renewable energy, it will take one thing. It must be cheaper than coal. Coal is a tricky situation � it's cheap and widely available, but it's oh so dirty. However, until a reliable (in any weather condition) and easily accessed renewable source of energy comes about, we'll be forced to stick with coal for a while longer. Thankfully, Google, the megahouse search engine firm that has now branched out to spend its loads of money very wisely by investing in and researching in clean energy, is now focused on creating a source of electricity that is cheaper than coal. It's looking primarily to solar thermal power, wind power and enhanced geothermal systems. It hopes to produce one gigawatt of renewable energy (enough to power San Francisco) within years instead of decades. The BBC mentions that Google is interested in high-altitude wind power, which shows huge promise and has gained a lot of attention recently.

Green Chemistry: the Magic Potion

Emily Setzer — Mon, 12 Nov 2007 23:53:00 -0400

Sometimes the answer is right in front of us. If the greenhouse gas carbon dioxide is the enemy in global warming, why not capture it and turn it into something useful? That's just what a few green chemists plan to do, according to CNET. A professor at Yale University figured out how to use carbon dioxide as a feedstock to make other products, such as environmentally benign building insulation. Meanwhile, a start-up just got funding to commercialize the process of using CO2 to make biodegradable plastics. The first Green Chemistry Business Summit met recently to unite industrial leaders, scientists and financiers. Behind almost every industry lie chemicals � electronics, pharmaceuticals, biofuels, bioplastics, water purification, green building, etc. With former vice president Al Gore joining a Silicon Valley venture capital firm that funds new ways to prevent global warming, and numerous stories of VCs and start-ups loving green tech, has technology and business surpassed governmental policy in innovation that could help save the environment?

Powered by Pond Scum

Emily Setzer — Wed, 31 Oct 2007 13:30:00 -0400

The U.S. Department of Energy's National Renewable Energy Laboratory has entered into a research and development agreement with Chevron to identify and develop algae strains that can be economically harvested and processed into transportation fuels, such as jet fuel. Chevron Technology Ventures is funding the project. Nonfood feedstock sources, such as algae and cellulose, can play an important role in biofuels production. The icky green stuff holds promising potential for biofuels because certain species of algae contain high amounts of oil - which can be extracted, processed and refined into transportation fuels. Algae is also abundant and grows fast. Many companies are beginning to invest in algae research as an alternative to ethanol.

Working With Global Warming Regulations

Emily Setzer — Tue, 30 Oct 2007 13:54:00 -0400

The Free Enterprise Action Fund believes global warming regulations hurt company earnings and shareholder value. The fund publicly stated that the Securities and Exchange Commission (SEC) should take immediate steps to require publicly-owned corporations to reveal the harm such regulations could cause. It claims that five of the 21 members of the U.S. Climate Action Partnership, a lobbying group supporting global warming regulation and cap-and-trade schemes, disclosed evidence that limits on greenhouse gas emissions pose a business risk. According to the fund, General Electric is fighting federal and state legislative efforts to ban incandescent light bulbs. And PepsiCo is facing bans on bottled water after legislation, such as that passed in San Francisco, which prohibits city agencies from purchasing bottled water. Instead of fighting against global warming regulation, the fund should be fighting for ways to work with global warming regulation. Investment groups, state finance officials from 10 states and environmental groups with a more realistic outlook recently petitioned the SEC to require companies to assess and disclose how climate change would cause financial risks to businesses. These risks include increased energy costs and financial losses from extreme weather conditions � such as floods, hurricanes, drought and fires. We can't profit off a dead planet, so companies should be creating ways to market their green actions for profit and the environment instead of rebelling against them.

Win-Win Situation: Investing in the Environment

Emily Setzer — Thu, 18 Oct 2007 22:09:00 -0400

Global sales from clean energy, such as wind, solar and geothermal power and biofuels may reach $1 trillion a year by 2030. U.S. bank Morgan Stanley reckons the rise will be due to global population growth and increasing costs for fossil fuels. Of the main sources for alternative energy, the bank estimates that the cost of solar power may rise hardly measurable levels to 11.2 percent in 2030. Yet, the cost may decrease from $8 per Gigawatt installed in 2005 to $1.60 per GW by 2030, which is good news to homeowners and businesses wishing to install solar panels. The bank also estimates that biofuels could grow from around 1 percent in 2005 to 21 percent in 2030, and wind power could jump from 0.9 percent to 9.6 percent in 2030. If this projection holds true, investors will definitely profit from investing in clean tech. Deutsche Bank already has attracted more than $8.5 billion into climate change funds. Last year, global investment in renewable energies jumped to $100 billion and is expected to rise to $120 billion in 2007.

Ford to Turn Paint Fumes into Electricity

Emily Setzer — Thu, 06 Sep 2007 22:58:00 -0400

All those shiny new cars, all that glossy paint, all those greenhouse gas-polluting paint fumes, but not for a plant in Ontario. The company announced it will purchase a DFC300MA fuel cell from FuelCell Energy, Inc. for its Ontario facility that will reduce paint solvent emanating from vehicle painting operations by turning the fumes into 300 kilowatts of electricity. The fuel cell can transform Volatile Organic Compounds (VOCs) from enamel-based paints and clear coat finishes into fuel. That means thousands of tons of nitrous and sulfur oxides and carbon dioxide will be eliminated. The fuel cell should be in place and working in early 2008, and over time Ford may rollout the system in its other plants. It's good news for the environment, and for FuelCell Energy, Inc. shareholders, whose shares rose after the announcement on Aug. 30.