2nd Green Revolution

January 30, 2009

Agriculture, having gone through its own Green Revolution that increased yield and growing efficiency to unprecedented levels, still uses a massive amount of inputs to produce its abundant harvest. Oil-based fertilizers, gas-guzzling tractors, and vast irrigation needs- the very inputs that made the agricultural green revolution possible – are now being questioned. Dwindling resources, climate change, and security concerns are prompting a fundamental re-thinking of farming practices. Enter Zeba. Zeba is a product made by Absorbent Technologies Inc. Similar in function to the super absorbent polymers used in diapers, Zeba is a hydrogel that acts like a sponge below the soil. Sprinkle these cornstarch granules in your tomato plant bed, lawn, or till them in your farm when seeding and you get higher yielding, better quality vegetables all while using less water. According to their website, each granule holds 500 times its weight in water. This creates an “on-demand’ moisture and nutrient reservoir, thereby reducing the level of water, nutrients and inputs required while yielding a higher quality crop. Less water and less inputs means less energy expended in growing food for our burgeoning population. The Zeba web-site is very well done and has a ton of information. Take a look and spend a few minutes exploring. It’s very interesting and really quite promising.

Could the agricultural green revolution be meeting the second green revolution of environmental technology, conservation, and sustainability? Will agriculture finally become truly green?

2nd Green Revolution

In his 2008 book, Necessary Revolution: How Individuals and Organizations are Working Together to Create a Sustainable World, Senge and his team at the Society for Organizational Learning, discuss the importance of creating a sustainable world. Several large businesses, including GE (mentioned in the previous post), Nike, Alcoa, Costco and Dupont, among others, partnered with non-profits to develop and in many cases redesign their supply chains and product lines to maximize efficiency, reduce water consumption, or minimize waste. All of these measures have the added effect of saving money and adding to the bottom line, allowing companies to maximize profits while becoming industry leaders. Many examples start with a single individual, such as Per Carstedt and his vision of a “green zone” wherein businesses work together to conserve energy usage. Another pertinent example relates the synergistic relationship between Coca-Cola and formerly adversarial non-profit World Wildlife Fund who, working in conjunction, preserved watersheds around manufacturing and bottling plants. Senge and his team provide a number of helpful ideas to starting the conversation in a productive, non-threatening manner. Their work is insightful and the read is worthwhile.

From their website (and book), here are the 7 reasons why any business will benefit from making a change to sustainable business practices:

1. There is significant money to be saved.
2. There is significant money to be made.
3. You can provide your customers with a competitive edge.
4. Sustainability is a point of differentiation.
5. You can shape the future of your industry.
6. You can become a preferred supplier.
7. You can change your image and brand.

2nd Green Revolution

Jeff Immelt, the Chief Executive of GE, and Jonathan Lash, President of the World Resources Institute, co-wrote an opinion piece that appeared in the Financial Times yesterday. They mentioned that 3 years ago they decided to start on a quest for what they called “the challenge to develop clean energy.” In 3 short years, various parts of American society have shown courage on such a quest. Universities, entrepreneurs, inventors, businesses, government, and normal citizens have all put America on the path toward achieving such a quest. Given the progress made thus far, America must have the courage to continue investing and moving towards a clean energy future. Immelt and Lash both support President Obama’s bold energy vision and stress the importance of not wavering in from that vision even under the current financial crisis and economic downturn. In fact, they argue that it is even more important to invest now for long term growth. Only with a concerted and broad approach to energy independence will America maintain its edge in technological innovation, lead the clean energy revolution, and emerge from the current recession as a world leader on these issues. While the whole article is worth reading, the main points are as follows:

1) Declare American open for business and invest quickly.
2) Invest fairly.
3) Invest to ensure future value.

As reported recently in both USA Today and The New York Times, the downturn in the economy has caused a recent increase in manufacturers’ inventory of solar panels. According to USA Today’s story, prices have decreased 15% for the materials, with labor costs remaining unchanged. Projections include a further 20% drop in prices. At a stated cost of $8,000(US) per kilowatt before rebates, these systems seem unduly expensive upfront. However, just as economic times turn difficult, infrastructure projects such as solar installations (PV or solar thermal) and increasing energy efficiency (or weatherizing buildings) become essential. If the cost of installing a photovoltaic system is not feasible, taking steps to ensure the retention of heat during the winter months by properly insulating attics, as well as weather stripping doors and windows, can reduce energy consumption, with the added benefit of curbing costs.

2nd Green Revolution

Networking giant Cisco Systems has entered the electricity management sector with its new software, EnergyWise. This program will eventually help monitor the consumption of electricity by various sources from IP addresses to building systems, including heating and cooling. Much of the work that has been undertaken in “greening the grid” or making a “smart grid” revolves around redirecting electricity to avoid overloading the system. However, one of the main goals of a smart grid remains the incorporation of so-called intermittent, renewable energy. Currently, coal fired, nuclear and natural gas generators deliver energy to the electrical grid at a relatively predictable rate. More energy is produced during peak load; the hottest days of the year for instance. The grid was designed to handle this type of a system, not to route energy from solar and wind installations when they come online.

A major part of the smart grid idea is transparency of electricity’s cost and availability. At this juncture, consumers pay a fixed rate for their energy per unit. A smart grid could enable residents to use energy at lower demand intervals, which would cost less. The individual will monitor their consumption and can control their energy use through a single management system, such as a home computer. In addition to the potential cost savings and the incorporation of renewable energy mentioned above, a smart grid could eventually allow for plug-in hybrids to feed energy back to the grid.

2nd Green Revolution

One of the seven states that make up the United Arab Emirates (UAE) along the Persian Gulf, Abu Dhabi has grown prosperous through oil and gas production. While not as well known as Dubai, UAE’s headline-grabbing desert boomtown building palm shaped islands visible from space, Abu Dhabi has shown that it can think big. In a bold and strikingly far-sighted strategy, Abu Dhabi is positioning itself for life after the oil wells and revenue have dried up. The Masdar Initiative Masdar Initiative (masdar means “the source” in Arabic) is a $22 billion project to build to world’s first zero-carbon, zero-waste city. Construction began last winter on is what is expected to be, by 2016, a city powered mostly by the desert’s plentiful sun. With partners such as MIT, which is developing a green-tech research institute, the looks to provide jobs and industry for post-oil Abu Dhabi while becoming a global hub for green tech. More can be read about the emirates’ bid to go from energy exporter to energy innovator in Fortune.

Masdar Initiative on YouTube

2nd Green Revolution

Monday marked the beginning of a new era. The first international consortium of countries focused on finding renewable, sustainable energy options, IRENA, was formed in Bonn, Germany. Much like the world-renowned CERN, this organization aims to tackle some of the most pressing issues facing our global society. The International Renewable Energy Agency has the stated goal of a “rapid transition towards the widespread and sustainable use of renewable energy on a global scale.” To achieve these objectives, the necessary funding must be made available for their work. In order for renewable energy options to compete with the current, relatively inexpensive supply of energy, economies of scale must be reached. The work ahead of IRENA will help determine the long-term viability of these options.

IRENA’s website states that they advocate development of all renewable energy sources. In the United States, the notion of a single dominant source of energy has long prevailed. Starting at the infancy of the nation, wood ruled as the primary energy source until the mid-to-late 19th century. Soon coal surpassed the usage of wood, reaching the 80% threshold of energy consumption, which remained the most common source until oil and natural gas gained supremacy in the mid-20th century. No longer can the world depend on a singular, predominant source of energy. In order for renewables to supplant fossil fuels, and more broadly nonrenewable sources, we must rely on a diverse portfolio. During peak load hours, solar energy can provide the supplemental energy necessary, whereas wind offers the greatest potential during the nighttime. In conjunction with a smarter grid and myriad other energies, we must enact conservation and efficiency measures as well. Without the reduction in consumption, these energy breakthroughs will have minimal impacts.

2nd Green Revolution

The Tesla Roadster is a beautiful car. It turns heads, drops jaws, handles well, and packs serious punch. It’s not a gas-guzzling sportscar but an all-electric roadster that uses no gasoline. While rumors may fly about what the secret start-up EEStor is doing with its batteries, there is no doubt that Tesla Motors has delivered a breakthrough. Even given its over $100,000 price tag, the company has clearly shown that powerful, fast, reliable, and cool cars that run on electricity can be produced. The Tesla gets up to 240 miles per 5 hour charge. This is more than enough to cover normal daily driving and can be charged up easily overnight. The GM Volt, on the other hand, gets 40 miles out of the battery before a gas engine takes over. The addition of a gas engine on the Volt gives it an advertised gas-battery range of 400 miles. The Volt will sell for a much more reasonable $40,000, making it actually affordable for a large percentage of consumers. Assuming mass production of batteries and electric cars takes off, the price will fall so long as consumers are keen on buying them. In this sense, and for the long term health of our country and economy, it wouldn’t hurt to have $4 gas again. Given the current state of the economy, consumer interest and $4 gas look unrealistic in the short term. Look long term, however, and there is really no alternative to transitioning to a nation of electric car drivers.

[youtube=http://www.youtube.com/watch?v=BFfOQ4oc40A&hl=en&fs=1]
Both of these cars testify to the promise of electric cars as a low polluting, serious alternative to the internal combustion engine. Plugging in your car to “top off” instead of hitting the local gas station reduces imports of foreign oil. Energy for the cars comes from the domestic electricity grid, which already spans the country and lessens the infrastructure challenges associated with the hydrogen economy mentioned in the post below. Furthermore, the grid will only get greener over time as more renewable and clean technologies are added and begin producing energy. At first supplementing and then replacing coal power plants with energy sources such as solar, wind, nuclear, and thermal power as their price falls and efficiency rises will reduce pollution while creating new economic growth. President Obama looks like he is serious about promoting a smarter, greener grid and investing in green technology as a job creator and economic stimulus. Let’s hope he and Congress can work together to help truly usher in the 2nd green revolution.

2nd Green Revolution

Several carmakers have hydrogen fuel cell vehicles in various stages of development. From BMW’s Hydrogen 7 and GM’s The Sequel to Honda’s Clarity FCX, which is now available on a limited basis in Southern California, hydrogen fuel cell vehicles have been touted as a potential replacement for gasoline, internal combustion engines. The Clarity is currently being offered for $649 per month, with about 200 units being made available. Thus far only a handful have been delivered. Reminiscent of GM’s plan to lease the EV1 in the 1990s, there are several issues facing the new fleet, including refueling. Due to the lack of infrastructure, the production of hydrogen remains an issue, as much of the current supply is derived from non-renewable sources such as natural gas. Hydrogen must be separated from other molecules, which requires energy, therefore consuming more energy than the hydrogen generates. In order to find a long term, sustainable solution, more research needs to be done and a renewable source of energy used to “refine” hydrogen.

2nd Green Revolution

One of the major obstacles to PV (photo-voltaic) installations remains the current inefficiency of converting radiant solar energy into electrical energy. German researchers at the Fraunhofer Institute for Solar Energy Systems (ISE) in Freiburg recently released results that they have attained an energy conversion of 41.1%, far beyond that available in commercial systems (around 20%). The challenge lies in both reducing cost per kilo-watt hour and increasing the efficiency of these systems.

- Eric Wilson