3M Joins Wind Power Business

3M, a major US adhesive company, may not seem like a logical fit for wind power business. But recently it announced its new line of product, Wind Tape, that would extend the life of wind turbine blades.

The new product line, which was developed by the company's new Renewable Energy Department, puts 3M in the middle of the battle of reducing world's greenhouse gas emission.

Wind Tape is designed to protect the edge of the huge wind turbine blades. Those blades, spin at 180 miles an hour, are usually damaged in about two years after generating electricity, from the erosion of the wind.

3M's Wind Tape comes in 8-inch wide and 54-foot long. Each roll costs at least $288. But comparing to the turbines that cost $100,000 each, the tape will be the money well spent.

According to 3M's website, the tape will extend the life span of a turbine by seven to ten years.

Finance and Commerce reported: "U.S. wind turbine components and systems would be worth $60.9 billion in 2013 – more than five times the 2008 market value of $11.2 billion.

3M wants to be part of the aggressive growth forecast contained in BCC’s report, which equates to a compound annual growth rate of 40 percent."

But one concern raised from the brilliant new product line is the customer service. Since 3M has been a materials firm all along, the new Wind Tape business will force the company to beef up its after sale service pretty quickly.

Slow Economy Hurts Alternative Energy

The slow economy in the US is hurting even the growth of the hottest alternative energy industry. Investment in the sector shrunk in the past few months and stock prices slumped.

WSJ says winds shift for alternative energy when oil price sinks and money gets tight. Oil price halved to $70 a barrel in October from its peak of $147 a barrel in February. The price drop in oil has taken away the viability of alternative energy since investors are worried whether the market will be big enough for alternative energy to be profitable.

The credit crisis is not helping either. As Americans spend less and drive less, the demand for energy has decreased. The slowdown of oil consumption leads many people to believe, at least temporarily, that the clean energy investment can be put off.

In a bleak economic environment like this, alternative energy will have to compete for government funding with industries like finance. $700 billion tax payers' money have been used to inject in the ailing banking system. As Americans making less, the government is collecting less tax, and, thus, will have a hard time to fund all the projects. Even though both of the presidential candidates make clean energy an important part of their campaigns, but it's hard to say which sector the new-elected government will end up cutting if the economy doesn't pick up soon.

One silver lining is OPEC has announced a few days ago to cut oil production by 15 billion barrels a day in order to tighten supplies hoping to move the oil price higher, as NYT reported. But some analysts are worried containing the oil supply will result in a slower economic recovery. For alternative energy industry, a booming economy, instead of manipulatedly increased oil price, is the real rescue.

3TIER Remaps The World

3TIER released the world's first comprehensive and high-resolution solar map of the entire western hemisphere on October 13, 2008.

Government, solar energy developers and financiers are able to easily assess any point on the map of its solar level by clicking on the Google Map and, thus, make decisions of the potential of an area for renewable solar energy. The map covers North, Central and South America.

Like 3TIER's wind map, which assess the wind speed in the clicked area, solar map is for free but needs registration. The two maps can shift from one to the other on one interface. It is an evolution for renewable energy industry. It would be especially handy for developing countries who do not have millions of satellite photos.

On 3TIER's website, it states clearly that:

"The facts are simple and sobering. More than 1.3 billion people around the world have no access to electricity. Demands for energy are increasing, while traditional fuel sources are decreasing. Add concerns over climate change and energy security and it becomes clear that renewable energy is critical to serve the future energy needs throughout the world. It also provides a sustainable source of clean power — where the fuel is completely free."

A strong instinct says 3TIER is soon going to be pursued by sponsors, financiers or even by Google, whose platform is being used by the map system of 3TIER. 3TIER's business is also totally in line with the environmental endeavor Google has been striving to make.

Let's Party And Save The World

It's just a cool thing to do if the flashing light and the rocking music you dance to are powered by solar or yourself. Nightclubs around the world are stepping up to reduce their carbon footprint.

In two weeks, Ecco Ultra Lounge, located in Hollywood's popular Cahuenga Corridor, is going to open as the first and only eco-friendly nightclub in Hollywood. After a two-month revamp, the club features everything "green", from energy saving LED lighting system, solar-paneled roof, free valet parking for Hybrids, eco cement, to recycled steel air pressure toilets and waterless urinals. The club's indoor lighting system saves up 80% electricity and is powered by the solar-paneled roof.

On Ecco's website, I also delightedly discovered its all-organic menu. My favorite dish is Soy Cured Organic Salmon with Avocado, Pickled Ginger, and Wasabi Oil.

Netherland's WATT is a funkier environmental-friendly nightclub. The club generates its electricity by humans. When dancing crowd moves, it absorbs the energy and transfers it into electricity power to light the dancing floor. The floor comes to live and lights flash faster when the crowd gets hotter and sweatier. Its toilets flush with rainwater and drinks are served in recyclable cups.

Before WATT, London's club Surya, opened this July, generates power by the concept of piezoelectricity in which the materials rub together to create a charge. Surya was called the world's first ecological club by Times.

Savvy Land Owners Raise Royalty for Placing Wind Turbines

Right after the Federal Government passed the tax credit extension, the "fantastic news" for renewable energy industry to gain cost advantage, wind power developers are facing a new cost pressure by land owners who are starting to increase royalty for placing wind turbines on their territory.

In last week's Dow Jones story, it says in western Oklahoma and the Texas panhandle, property owners have been taking up the agreements that "resemble oil and gas leases, which typically provide for a leasing fee and a royalty payment based on the well's output."

"Many deals now reached include provisions that allow property owners to be paid a recurring fee for each turbine placed on their land and for the power each turbine generates."

As is calculated in the story, "a land owner can conservatively receive about $10,000 a year from each turbine placed on their land, and farmers often sign a deal for half a dozen turbines at a time."

That generates good profit.

The new income for property owners are directly exerting cost pressure of wind power prices and creating challenges for alternative energy to going mainstream.

the reason that caused the switch of the negotiating power is multifaceted.

The continuous slump of crude oil price in the past two weeks is one of the key factors. Crude oil prices fell from $150 a barrel in July to under $90 a barrel last week, today it closed at $82.3 a barrel. This reduced the viability for alternative energy that otherwise enjoyed a competitive edge since the resources of wind and solar power are basically free.

The other reason is many small alternative energy business owners are swiftly expanding and investing a lot more after the tax break authorized by the government in early October, along with the $700 billion bailout package. Therefore, the landowners suddenly obtained an unprecedented power in negotiating. And they are not letting it go.

On one hand, landowners want to raise the royalty as high as they can but are cautious about not to scare the developers away. On the other hand, wind power developers, with tax credit at hand renewed for another year, are taking up deals with a higher and higher royalty fees, making the increase more fierce.

The evolution is just starting and it is going to take a while for both sides to settle down on a reasonable agreements on royalties. But regardless, the nascent industry has started to experience the growing pain when it meets traditional challenges.

Revived Tax Credit A Boon To Renewable Energy Industry

Wind power and solar energy owners throughout the US should celebrate the revived tax credit extension for renewable energy industry, a plan that was almost aborted but was brought back to life bundling to the $700 billion bailout plan.

The tax credit bill, worth of $78 billion of tax relief, is an extension from an existing plan which set to expire at the end of this year. The bill will help offset the high production cost of renewable energy and bring competitive cost advantage to the industry for producing and using renewable energy.

Without it, the industry is going to suffer from high production cost and lose the edge to compete with the conventional energy.

This is how much a renewable energy company would save (example from a story by Sand Jose Mercury News):

"A typical five-kilowatt solar system costs about $8 a watt, or $40,000." "With the California rebate of $7,600 and the $2,000 federal tax credit, that's an out-of-pocket cost of about $30,400. With the removal of that $2,000 cap, the credit grows to $9,700 and the net cost falls to $22,700."

That's big savings.

That was why the owners of windmills and solar power plants were feeling "the cloud hanging over us" when the bill was in a stalemate over the past several months as Congress debated how to pay for it. The House of Representative rejected the bill on September 29 after The Senate said yes the week earlier.

Many renewable energy entrepreneurs know exactly what it means to them if they lost the tax credit. A similar tax credit bill boosted and busted the solar hot-water industry in the 1980s. A dozens of small businesses spawned under the tax rebate program all went out of business when the incentives abruptly ended.

Luckily, the renewable energy tax credit extension was revived when the government tried to pass the $700 billion bailout plan early October. After The House vetoed the first draft of the bailout plan, it had a chance to revise and bundled the tax credit bill into the new version, which was passed later that week.

The extension allows the wind power production to enjoy tax exemption for another year and solar energy companies will have another 8 years of investment tax credit for business and homeowners to install solar energy equipments. The bill also extended a $1 per gallon tax credit for biodiesel through 2009. Buyers of plug-in electric cars will receive Federal tax credit ranging from $2,500 to $7,500.

Finally, the cloud over the industry dissipated and they "had a sense of relief," said Peter Detering, chief executive of Tioga Energy, a San Francisco company that finances solar deals for commercial customers, during an interview with San Jose Mercury News.

John Berger, chief executive officer of Texas-based Standard Renewable Industry, said during an interview with Reuters (the story) that:

"We are at a critical time period in the solar industry in the country and around the world. We are just starting to see some economies of scale, some prices decreasing in the solar panels. Having the 8-year extension will absolutely cement in place getting solar to be part of conventional energy."

Clean Coal Technology, Possibly A Greenwash PR Move

Everybody talks about clean coal like it is the next multi-billion dollar industry. But it could be just a green-sheen public relations strategy put forth by the coal industry striving to stay in business.

Look at what the coal industry says: "Clean coal is a solution to climate change and global warming". This sounds exciting. As a result, Al Gore even proposed the Fed to invest $2 billion into the research in order to speed up the wide adoption.

But the exciting slogan sounds similar to drug commercials on TV: give the sneezing children this pill, all the problems will be gone and we will have a happy healthy family.

But something just doesn't add up here.

When it comes to investment, we think about reward. Since scientists project such technology will only be viable t in about 15 years, this doesn't sound like a smart investment to any rational people. On the humane side, the level of gas emission is turning the planet into an unlivable place sooner than scientists expect. We simply do not have 15 years to wait.

Besides, the best clean coal technology only reduces 2/3 of greenhouse gas emission from coal burning. Renewable energy, on the other hand, emits as much as 1-4% of that from coal burning. coal, currently generates 49% of the electricity in the US, will still rank the dirtiest fossil fuel that aggravates global warming.

No wonder environmental groups, including Greenpeace, oppose the project strongly.

As much as I don't want to doubt the good will of such proposal, the question is why we are investing if the technology won't make the coal really clean and it takes forever to happen. It leaves me wonder whether it is a greenwash move to keep the coal industry in business for the next 15 years using the government funding. The shrewd coal groups are almost saying: we were the bad guy, now give me a chance to be good. Hard to say no to that, isn't it?

Bringing Class to Trash

It is always a first for everything, such as making trash sexy. Such an image made the business attractive and profitable.

Sidney Torres, a former rock'n'roll producer and a successful real estate developer, jumped in to clean the city of New Orleans when he found out it is a profitable business to be in after Katrina. Residents didn't realize the company SDT, founded in 2005, was anything more than a socially responsible cause until they found out some "bizaare" things about it.

SDT, by no means, is a garbage company in any traditional sense. Torres commands his 75 truckers through two 57-inch flat screen TVs at home and locates any trucker anytime given by GPS. And according to NPR news, Torres dresses nothing like a garbage man. His usual working outfit is Bolle sunglasses, tight black T-shirt and vintage jeans.

Torres' truckers are required to dress in black and white, a hip outfit supplied by the company. The trucks, carrying a bear logo, are always shiny as new. A self-developed scented spray is spread to the streets everyday to make the city smell like lemon. A side benefit: people who came home from a party with a bad smell could ask for a LemonFresh spray shower, in the street, for free.

Soon enough, this self-funded garbage collecting start-up won the $9 million contract to clean up multiple areas in the city. And before Torres knew it, he has become the most eligible bachelor in town. People ask for his autographs and take pictures with him in the street.

Fame allured more businesses. New Orleans CityBusiness story reported:

"In late 2005, Torres won the parish's residential garbage contract, which pays $20 per house a month for nearly 14,000 houses."

"In 2006, Torres won the contract that launched him into stardom in New Orleans. Today, SDT has about 150 full- and part-time employees."

As the business booming, Torres said during an interview with the CityBusiness:"I had no idea I was going to be in the garbage business. Had no idea I was going to be cleaning New Orleans." But this man obviously had sound ideas of how to run a business if he knows how to make trash sexy.