Transcript The Energy of the Future for the Economy of the Present: Business Opportunities in the Green Economy CEii Trentino September 11, 2010 Robert Weissbourd RW Ventures, LLC.

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