On Wednesday, I had the opportunity to sit down with company founder Carsten Pederson for a couple of minutes to talk about the new U.S. manufacturing facility and what effect a lapse in the federal renewable energy production tax credit (PTC) might have on the wind energy industry. He jokingly agreed to chat with me under the conditions that I didn’t ask him tough questions like where exactly the new facility would be located (presumably because they haven’t finalized the deal yet).

Considering wind energy was the second largest source of new electricity on the U.S. electrical grid in 2007, it is not hard to understand why Nordex wants to move ahead with a U.S. production facility. Of more interest to me is what Mr. Pederson felt about the possible lapse in the PTC, and whether it could cause the booming wind energy industry to sag at a very critical juncture. Like most of the 13,000 conference attendees, Pederson would prefer a long term extension of the tax credit, but he also told me that they were moving ahead with construction plans in spite of the uncertain future of the policy mechanism.

“Politicians should extend the PTC for a few years, now. What we need is a stable long-term policy,” said Pederson, adding that there might be a dip in the “very short term” if it is left to expire, but that projected long-term increases increases in electricity demand, and the increase in state-level incentives and renewable portfolio standards would continue to make wind economically viable and politically expedient, with or without the PTC.

Pederson also mentioned that the U.S. was not so different from Europe, in that strong political pressure is bubbling up from the grassroots for more renewable energy, but that politicians feel more comfortable saying they support renewable energy, than actually enacting legislation doing so.

**Special thanks to the American Wind Energy Association for providing travel and lodging support for WINDPOWER 2008.

Photo courtesy of Nordex

Related Posts:
“The ‘Unlimited Potential of American Wind Power: AWEA”
“WINDPOWER 2008: A Texas-Sized Conference”

As I see it, there were several themes threaded throughout the program. And over the next couple of days, I will be addressing each of them in turn. I will first address the politics and policies of our energy future, as raised by the panelists.

Politics & Policy

Although the panel discussion was not exactly intended to center on politics and policy, the discussion was continually being pulled in that direction. It seemed that nearly everyone had something to say about the role of government. And while there may have been clear political and ideological divisions amongst the panelists, they all generally agreed that the federal government has, up to this point, pretty much dropped the ball when it comes to leading the way with effective  energy policy programs.

Absolutely we need a national energy policy strategy, said Jackalyne Pfannenstiel, Chair of the five-person California Energy Commission. Pfannenstiel, who was appointed to the board by Gov. Schwarzenegger in 2004, argued that a uniform policy would be nice, but added, ” you’ve got to start somewhere.”

Paul K. Siegele, Vice President of Strategic Development for Chevron voiced his concern that as a direct result of federal abdication of responsibility, a patchwork of policies in the 50 U.S. states have hampered gasoline distribution and driven up costs for the oil manufacturers. Siegele was very concerned about the absence of federal leadership on climate and energy policy and when pressed by Maria Surma Manka, he admitted that a fair cap and trade policy that would not single out individual industries would be the preferred policy mechanism ( as opposed to a straight carbon tax).

Pfannenstiel, on the other hand, was not as concerned about the patchwork of energy and climate policies that vary from state to state, as was Siegele. She said that good energy efficiency policy in California could presumably set the model for the national picture. Pfannenstiel added that legislating to take advantage of the low-hanging fruit of energy efficiency was where policymakers could really lead the way.

Trae Vasallo of the venture capitalist firm, Kleiner, Perkins, Caufield & Byers said:  “The government has not stepped up in terms of investment… private early stage venture capitalists are actually outspending the federal government.” This comment actually drew some audible gasps from the audience.

David Victor, Director, Program on Energy and Sustainable Development, Freeman Spogli Institute for International Affairs did not mince words about his pessimism. Victor noted that it is going to be really hard for the US to lead in global climate change policy, because the federal government has not done particularly well so far, and they have yet to convince the global community that they are serious about addressing climate change. “Over the next few decades I am very pessimistic… I am pessimistic about changing the near-term trajectory…”

But Victor was not only pessimistic about the U.S. government’s ability to affect change, he was also concerned that governments in general were little match against the resource-rich companies that are driving the global economy, adding, “the governments of the world have very little leverage.”

Finally, there was one brief mention of a policy program that got my attention as something that could seriously hamper the construction of new power plants. Apparently, there is a bill in the California legislature that would limit long term power purchase agreements (PPAs) between energy producers using dirty technologies like coal and the utilities that purchase the energy. The problem is that until tougher regulations are adopted on the construction of new coal-fired power plants, utilities will continue to bring those plants on line - mostly because they are required by law to do so (PURPA).

Please stay tuned as I will next address the roles of technology and consumer behavior in shaping our energy future.

Related Posts:

“Liveblogging Energy’s Future is in Technology (Part I)”

“Oil Companies’ Shareholders Reject Activist Proposals”

Photo Courtesy of API

The micro-mini’s size is one of its biggest appeals and is what jumped out at me right away. Featuring an ultra-small ¼ inch tube diameter and a compact integral electronic ballast, the 13W micro-mini is the smallest CFL on today’s market. The bulb measures 3.7 inches long or over half an inch shorter than a standard incandescent lamp, a mere 4.4 inches. As you can see by the picture, the Twist is significantly smaller than the other 13W CFL I had in my home-lighting arsenal. The bulbs compact size makes it usable in virtually any lamp fixture, large or small - not a claim that can me bade about all CFLs.

The Soft White micro-mini compact fluorescent light bulb features a warm color temperature of 3000 Kelvin (K) and it boasts instant-on capabilities. The micro-mini Twist compact fluorescent lamps are available in 13-watt (W), 20W and 23W models. The mini CFL is designed to replace 60, 75 or 100W incandescent lamps and boasts an average rated lamp life of 12,000 hours.

Finally, I really enjoyed the ‘instant-on’ capabilities of the Twist. I often find that when I go to the bathroom and flip on the light, a CFL won’t reach its full luminescence by the time I am done with my business (thus cutting into valuable crossword puzzle and magazine time). This bulb, however, had no delay and was instantly bright as soon as I flipped the switch.

The only downside I found to the bulbs were how they were packaged. For a bulb that is claiming to be an energy saver, it seems that printing a picture of a tree on a useless cardboard tab is not exactly the best way to show consumers real concern for saving energy. I hope SYLVANIA will recognize this inconsistency and adjust the packaging accordingly.

Considering that changing just one 60W incandescent bulb to a 13W CFL will save the average American about $56 dollars over the life of the bulb. And that changing out all thirty-six bulbs (the number in the average American home), will amount to a savings of more than $2,000** over the life of the bulbs, it seems that an investment of $4.99 is a small price to pay for substantial energy savings.

**Based on 11 years at 10 cents/KwH.

Related posts:

“Compact Fluorescent Backlash Strikes“

“60,000 CFLs and Counting“

Photos: Hurst

Toyota Prius sales have topped 1 million and dealers in most markets simply can’t keep them on the shelves. Toyota says domestic inventory is limited by production capacity in Japan, which is shared by the Asian and European markets. The U.S. supply is at its lowest level in two years (Wired).

Imagine a high-speed train that could get you from San Francisco to Los Angeles in two hours forty minutes. Well, that dream is now one step closer to reality as the California High Speed Rail Authority has cleared environmental impact assessments and is beginning construction of what will be the most substantial high-speed rail network in the U.S. But don’t make travel arrangements just yet. The project is not scheduled to be completed until 2030 (gas 2.0).

A joint biofuel effort was announced Thursday involving Air Bus, JetBlue, Honeywell, and Aero Engines that plans to study ways to make commercial aviation fuels out of second-generation feedstocks such as algae (Green Tech Blog).

A new wave of nuclear power plants in the U.S. is likely to cost $5 billion to $12 billion a plant, two to four times previous estimates, driving up electricity bills for consumers and inevitably reigniting public concerns about the costs and benefits of nuclear power (The Wall St. Journal).

Photo credits:

Karl Gunnarrsson via flickr Creative Commons License

compicpie via flickr Creative Commons License

Bistrosavage via flickr Creative Comons License

Although they have yet to disclose the location of the new tower manufacturing facility, it would be situated to complement the company’s fist North American blade manufacturing plant, which recently opened its doors in Windsor, Colorado.

For the tower plant, the company will need a large parcel of land served by freight rail, a combination that Northern Colorado can provide at several locations, including the Windsor location, where construction proceeds on phase two of the blade plant. According to the Northern Colorado Business Review, more than 1,000 new jobs could result from further expansion of Vestas’ manufacturing presence.

Healthy Profit Margins Hide Industry Bottlenecks

In the second piece of big news for the Vestas, the company reported very strong earnings on Thursday - the kind of earnings that emphasize the wind energy industry’s resilience to the slumping economy. Net income for Vestas rose 94 percent to 33 million euros ($56 million) from 17 million euros a year earlier. The company was expected to earn 35.5 million euros, according to the median estimate in a Bloomberg survey of five analysts.

Despite the strong growth in the wind energy business worldwide, the overall demand pressure on the industry persists. According to Bloomberg, there are still long lead times for a number of key components that can last as long as 15 months. Of particular concern to turbine manufacturers is a global increase in demand for carbon-fiber, the graphite composite material that moderns turbines blade use because of their light weight, and high tensile strength.

With that said, it seems that it will be a few years before supply will match demand. Even as new manufacturers pop up around the globe, they are being outpaced by the increases in global demand for clean, renewable energy.

Sources:

• Northern Colorado Business Review
• Bloomberg

Other posts about the cleantech industry:

• “Can ‘Low-Hanging Fruit’ be Sexy: Two Energy Efficiency Stocks
• “Solar System Leases Taking Industry by Storm“
• “The Unlimited Potential of American Wind Energy: AWEA“

Photo: Vestas Wind Systems

Tesla Would Be Proud

A few years back, Marin Soljačić was driven from bed by the insistent beeping of his mobile phone. But it wasn’t beeping for him to answer it, it was beeping for him to plug it in. Since that night, the assistant professor of physics at MIT, has been thinking about ways to start his phone charging as soon as he enters his home - without the need for plugs or wires.

Jennifer Chu at Technology Review writes that Soljačić considered using radio waves, but found that most of their energy would be lost in transmission. Targeted methods like lasers require a clear line-of-sight and could be dangerous for anything in their way. According to Chu, he eventually settled on a phenomenon called magnetic resonance coupling, in which two objects tuned to the same frequency exchange energy strongly but interact only weakly with other objects.

“A classic example is a set of wine glasses, each filled to a different level so that it vibrates at a different sound frequency. If a singer hits a pitch that matches the frequency of one glass, the glass might absorb so much acoustic energy that it will shatter; the other glasses remain unaffected.”

Now, Soljačić and his team have successfully demonstrated the use of magnetic resonance coupling to power a 60 watt light bulb from a distance of roughly two meters - and through a thin wall.

The most effective setup, thus far, transfers power over a distance of two meters with about 50 percent efficiency. The team is looking at other materials to decrease coil size and boost efficiency. “While ideally it would be nice to have efficiencies at 100 percent,” says Soljačić. “So realistically, 70 to 80 percent could be possible for a typical application.”

While some wireless power technologies have emerged in the marketplace, Soljačić’s technique differs in that it might one day enable devices to recharge automatically, whenever they come within range of a wireless transmitter.

Technology Review

Short video and interview with Amory Lovins. I’m so jealous of that guy. He grows bananas…in Aspen! Running time: 2:46

Best quote:

“We do have a national energy policy - it’s basically to keep wasting lots of energy; import it at whatever price, by whatever means necessary; keep stealing from our kids and keep screwing up the climate.”

See also:

“Can Low-Hanging Fruit Be Sexy? Two Energy Efficiency Stocks” :: CleanTechnica (4/2008)

I was reminded of this fact recently when I read an interview with the king of all energy geeks, Amory Lovins, at Mother Jones. Lovins was asked the question, “If you had $1 million to invest in the energy sector, where would you put it?” Lovins responded,

“Efficient use. I want to do the cheapest things first to get the most climate protection and other benefits per dollar. Buying micropower and “negawatts” instead of nuclear gives you about 2 to 11 times more carbon reduction per dollar, and you get it much faster.”

While not as ’sexy’ as solar and wind, energy efficiency might be the smartest investment play if you’ve got some cash burning a hole in your pocket (though that’s not really the current trend). And while we here at CleanTechnica do not really fancy ourselves to be professional analysts of Jim Cramer or Tom Konrad caliber, we do keep our eyes on emerging trends in the industry. For that reason it is hard not to pick some favorites. I’d like to share two of my favorite energy efficiency plays with you: Echelon (ELON) and Beacon Power (BCON) .

While I am particularly interested in the technological potential of the two companies’ products, I also see plenty of room for growth in the energy efficiency sector more broadly

• Echelon (ELON) markets a suite of network infrastructure products designed for smart-grid applications. Echelon is poised to take the lead in smart-grid hardware for both small and large-scale applications. Last year, Echelon signed a deal with McDonald’s to network its restaurant kitchen equipment and create the “kitchen of the future,” which aims to lower energy consumption and increase operational efficiency.
• Beacon Power (BCON) designs and develops advanced products and services to support stable, reliable and efficient electricity grid operation. More specifically, Beacon has developed a proprietary flywheel system that allows the storing of grid-energy and the smoothing of fluctuations caused by wind-generated electricity. Flywheel-based energy storage systems, unlike lead-acid batteries, do not use hazardous materials for production, nor create them during operation. Unlike batteries, flywheels operate reliably for many years with little or no maintenance.

[Disclosure: The author holds positions in ELON and BCON. However, in no way is this an endorsement or recommendation to purchase either of these stocks. Please thoroughly research any potential investment and always seek the advice of a professional).

Photo: epicharmu

See also:

“Amory Lovins: ‘Senseless Energy Policy’ (video)” :: ecoscraps (4/2008)

“Utilities Announce Major Efficiency Initiative” :: Green Options (10/2007)

“Eco-effective Decisions” :: Green Options (10/2007)

Wind speeds of 100 mph were recorded across Europe and topped 135 mph at the Czech Republic’s highest mountain, Snezka. The surplus electricity on the grid, produced mostly by German and Danish wind farms pushed prices down by 12% on the spot market.

Traders buying and selling round-the-clock power reported that the ‘day ahead’ price in central Europe’s power market dropped to €49.5 ($76) per megawatt hour compared with €56 at the end of the previous week, according to a piece at Planet Ark. Unfortunately, the article also suggests that sudden drops in electricity prices on the spot market have little effect on end-use rates.

This story points out one of the most persistent ‘problems’ of large-scale wind energy development- how do we address the peaks and valleys on the grid presented by wind power, and how do we reconcile those with power plants which cannot be easily adjusted to deal with those peaks?

Several options of dealing with the storage issue have emerged including compressed air, hydro pump-backs, and more efficient flywheel designs. These are all good steps, and more will undoubtedly emerge. That is why it is important that the ‘problem’ of storing wind energy be framed as an opportunity for technological innovation, and not as a justification for more coal-fired power plants.

In a wonky twist that would alter the clean energy incentive structure in this country rather significantly, Senators Alexander (R-TN) and Kyl (R-AZ) offered an amendment (S. Amdt 4429) that would extend the production tax credit for two years (instead of one) for wind, geothermal, biomass, landfill gas, small hydro, and wave and tidal power. But the provision would also cut the production tax credit for wind in half and spread the funding out more evenly across technologies.

“I would argue that wind is over-subsidized,” said Alexander. “Wind is a proven technology… and this amendment would focus on emerging baseload technologies.”

The amendments are being considered as part of a housing and foreclosure package and they are completely unrelated to the House’s Renewable Energy and Energy Conservation Tax Act (H.R. 3221), which would have rolled back tax breaks for oil companies in order to pay for the renewable tax incentives. The tax package last fell short of passage in the Senate in February - by a margin of one vote.

‘Feast or famine’ Cycles of Clean Energy Development (CleanTechnica)

If you are a scientist or researcher with a great idea for a green business, you should check out what universities have to offer you (even if you are not in school).

As an example of the types of programs available, consider UC Davis’s Green Technology Entrepreneurship Academy (GTEA), which provides a free, week-long intensive for science and engineering researchers. Yes, I did say free, and it’s held at Lake Tahoe, Nevada in July—a very nice plus.

According to UC Davis Center for Entrepreneurship Assistant Director, Nicole Starsinic, the GTEA combines classroom learning with a team project, which pairs scientists with business school students and professionals. A number of venture capital firms, law firms, and other professionals, which are listed in the Academy’s schedule, devote time in the hope of discovering the cleantech Google.

Apply: If you are interested or know someone who would be a good candidate for the GTEA, please note that applications are due May 2, 2008.

Up and Coming Green Tech Companies

Two interesting companies that are emerging from last year’s GTAE show the range or projects that are appropriate for the Academy. MIT doctoral student Jon Mapel has developed a high-efficiency, low-cost solar electrical concentrator that uses 300 times fewer solar cells than conventional methods. In the Center for Entrepreneurship’s latest newsletter (out today), Mapel says he will soon follow up with the venture capitalists and angel investors he met at GTEA last summer. Another participant who started a business with his GTEA experience is UC Davis doctoral student Peter Tittman whose company, Forest Eye, will help forestland managers meet financial and environmental goals by conducting carbon, timber and biomass inventory using an aerial laser scanning technology.

Programs for Green Entrepreneurs at Other Universities

Many universities have business plan competitions that are open to non-students. Some competitions have cash prizes, and some startups get angel or VC funding right out of these competitions.

We’d love to hear your stories if you have participated in any university or foundation-sponsored programs or competitions for entrepreneurs.

Photo of Lake Tahoe from Wikimedia Commons.

As an example of the types of programs available, consider UC Davis’s Green Technology Entrepreneurship Academy (GTEA), which provides a free week-long intensive for science and engineering researchers. Yes, I did say free, and it’s held at Lake Tahoe, Nevada in July—a very nice plus.

According to UC Davis Center for Entrepreneurship Assistant Director, Nicole Starsinic, the GTEA combines classroom learning with a team project, which pairs scientists with business school students and professionals. A number of venture capital firms, law firms, and other professionals, which are listed in the Academy’s schedule, devote time in the hope of discovering the cleantech Google.

Apply: If you are interested or know someone who would be a good candidate for the GTEA, please note that applications are due May 2, 2008.

Up and Coming Green Tech Companies

Two of interesting companies that are emerging from last year’s GTAE show the range or projects that are appropriate for the Academy. MIT doctoral student Jon Mapel has developed a high-efficiency, low-cost solar electrical concentrator that uses 300 times fewer solar cells than conventional methods. In the Center for Entrepreneurship’s latest newsletter (out today), Mapel says he will soon follow up with the venture capitalists and angel investors he met at GTEA last summer. Another participant who started a business with his GTEA experience is UC Davis doctoral student Peter Tittman whose company, Forest Eye, will help forestland managers meet financial and environmental goals by conducting carbon, timber and biomass inventory using an aerial laser scanning technology.

Programs for Green Entrepreneurs at Other Universities

Many universities have business plan competitions that are open to non-students. Some competitions have cash prizes, and some startups get angel or VC funding right out of these competitions.

We’d love to hear your stories if you have participated in any of university or foundation-sponsored programs or competitions for entrepreneurs.

Photo of Lake Tahoe from Wiki Commons.

First of all, don’t worry about the business plan.

I realize that sounds like crazy advice coming from a business consultant. However, I have seen too many entrepreneurs stalled or stressed when trying to write up a business plan when the plan really is not the critical issue. Many green business ventures that would be of interest to VC firms are in the cleantech, new materials, information technology, and life science spaces. If you are an ecopreneur with an idea in areas like these, your most important task is to explain the technology or science behind your idea and whether you have, or can get, the rights to the intellectual property.

Don’t spend your valuable time wordsmithing a long document. Just be able to say:

• why your idea works
• how it is different from an existing technology or product, or what is being developed by others
• how it will change the world, e.g., by dramatically changing a market or supply chain or by creating a new market or standards for how a market operates, etc.

This is not just my humble opinion. I spoke with Khosla Ventures’ newest operating partner Ford Tamer who explained that the firm is looking for leapfrog innovation—new technologies or new business models that can increase the size of a market by five-times or can drive costs down so significantly that entire new markets become available. He says, “We’re interested in ideas that can significantly affect the earth and can build big companies… We have no problem taking the risk if the risk is worth taking—for a huge benefit to society and the ability to be a major player.”

Tamer explained that while they have additional criteria for investing in a company, such as what he called “gene pool analysis,” i.e., the team members Khosla would be investing in, and the scalability of the company’s product or service (size of the potential market), Khosla Ventures is happy to help in those areas. With a stated mission that puts “venture assistance” and “strategic advice” before capital, Khosla Ventures’ partners will help to create the business plan, recruit key hires, develop key partnerships, brainstorm around major challenges, and more. As an example, Tamer has been to Europe, Asia, the Mid-West, and East-Coast on behalf of one portfolio company in the past few months.

I am sure that all VC firms do what they can to help their portfolio companies, but if you are a scientist or other innovator without a lot of business operating experience, you could benefit from looking for a VC firm that specializes in early-stage investments and that has a history of making introductions to key hires and partners.

And then there is that patience thing. As Tamer says, “Greentech will take a lot longer to [come to full value] than traditional tech.” You can probably only evaluate a VC firm’s long-term commitment to a technology or idea through conversation, but this is another point to discuss with other entrepreneurs funded by a particular VC firm.

Khosla Venures was founded by Vinod Khosla, who started Sun Microsystems and was later a general partner at Kleiner Perkins Caufield & Byers. In addition to investing in social ventures, Khosla has pledged 100% of his general partner profit from Khosla Ventures to microfinance, education, health, environment, and other causes.

When I first read the press release about Ford Tamer being hired to lead Khosla Veneture’s clean technology portfolio, I was confused (because I saw him as a large-firm technology specialist since he most recently held a senior position at Broadcom). Tamer explained that the group he led at Broadcom wasn’t always that big and that he grew it three-fold in five years, and, prior to that, he had either founded, or was an early member of, four technology companies. Oh, and he also has a PhD in material sciences. If you’re a cleantech entrepreneur, he’s going to have some experience to share!

I’m pleased that cleantech is hot and that many investors want to help build sustainable businesses and eco-focused companies. This post is part of a series on sources of capital for eco-entrepreneurs and green business finance.

If you are an investor that has advice or an entrepreneur with a personal perspective, we would love your comments.

Photo: Khosla Ventures company photo.

But other nations want a piece of the pie; so Indian banks are going to provide Australian companies access to their energy markets in order to grow India’s cleantech sector. Equity funding for development projects is lacking on the subcontinent, but money from Australian investors can help bridge that gap for initiatives like renewable energy, water, building efficiency and transportation. Vivek Mehra, country head of Sustainable Investment Bank and Private Equity, Yes Bank India, told ThaiIndian News:

Australia has expertise on clean coal technology and India is going to rely on coal to meet its energy needs for a long time to come. The two countries can mutually benefit from sharing this clean and economically feasible technology.

Bridging the knowledge — and funding gaps — in our globalized economy will be critical in advancing a cleantech future, whether it’s in the developed or developing world. I suspect we’ll see even more collaboration between private investors and emerging economies as cleantech continues to boom and the money follows.

ThaiIndian.com

I realize that sounds like crazy advice coming from a business consultant. However, I have seen too many entrepreneurs stalled or stressed when trying to write up a business plan when the plan really is not the critical issue. Many green business ventures that would be of interest to VC firms are in the cleantech, new materials, information technology, and life science spaces. If you are an ecopreneur with an idea in areas like these, your most important task is to explain the technology or science behind your idea and whether you have, or can get, the rights to the intellectual property.

Don’t spend your valuable time wordsmithing a long document. Just be able to say:

• why your idea works
• how it is different from an existing technology or product, or what is being developed by others
• how it will change the world, e.g., by dramatically changing a market or supply chain or by creating a new market or standards for how a market operates, etc.

This is not just my humble opinion. I spoke with Khosla Ventures’ newest operating partner Ford Tamer who explained that the firm is looking for leapfrog innovation—new technologies or new business models that can increase the size of a market by five-times or can drive costs down so significantly that entire new markets become available. He says, “We’re interested in ideas that can significantly affect the earth and can build big companies… We have no problem taking the risk if the risk is worth taking—for a huge benefit to society and the ability to be a major player.”

Tamer explained that while they have additional criteria for investing in a company, such as what he called “gene pool analysis,” i.e., the team members Khosla would be investing in, and the scalability of the company’s product or service (size of the potential market), Khosla Ventures is happy to help in those areas. With a stated mission that puts “venture assistance” and “strategic advice” before capital, Khosla Ventures’ partners will help to create the business plan, recruit key hires, develop key partnerships, brainstorm around major challenges, and more. As an example, Tamer has been to Europe, Asia, the Mid-West, and East-Coast on behalf of one portfolio company in the past few months.

I am sure that all VC firms do what they can to help their portfolio companies, but if you are a scientist or other innovator without a lot of business operating experience, you could benefit from looking for a VC firm that specializes in early-stage investments and that has a history of making introductions to key hires and partners.

And then there is that patience thing. As Tamer says, “Greentech will take a lot longer to [come to full value] than traditional tech.” You can probably only evaluate a VC firm’s long-term commitment to a technology or idea through conversation, but this is another point to discuss with other entrepreneurs funded by a particular VC firm.

Khosla Venures was founded by Vinod Khosla, who started Sun Microsystems and was later a general partner at Kleiner Perkins Caufield & Byers. In addition to investing in social ventures, Khosla has pledged 100% of his general partner profit from Khosla Ventures to microfinance, education, health, environment, and other causes.

When I first read the press release about Ford Tamer being hired to lead Khosla Veneture’s clean technology portfolio, I was confused (because I saw him as a large-firm technology specialist since he most recently held a senior position at Broadcom). Tamer explained that the group he led at Broadcom wasn’t always that big and that he grew it three-fold in five years, and, prior to that, he had either founded, or was an early member of, four technology companies. Oh, and he also has a PhD in material sciences. If you’re a cleantech entrepreneur, he’s going to have some experience to share!

I’m pleased that cleantech is hot and that many investors want to help build sustainable businesses and eco-focused companies. This post is part of a series on sources of capital for eco-entrepreneurs and green business finance.

If you are an investor that has advice or an entrepreneur with a personal perspective, we would love your comments.

Photo: Khosla Ventures company photo.

Renewable energy businesses are booming, but they’re competing quite intensely for talented people. Writing for Renewable Energy Access, Dawn Dzurilla noted that the “triple bottom line” of People, Planet, and Profit are motivating job seekers to enter the industry. Its rapid growth and challenging opportunities are keeping people in this cutting-edge career.

There are several colleges and universities around the country offering cleantech-related programs, like wind turbine maintenance. The University of Oregon has become the first in the U.S. to offer a course in renewable energy law. It’s a part of its sustainable business certificate program to train students for careers in environmentally friendly industries. The state has identified cleantech and renewable energy as “vital” to the economic development of the state, so it’s taking steps to train its workforce in that field.

KTVZ.com (Portland, OR)
Renewable Energy Access

I attended a panel at UC Davis’s “Focus the Nation” program called, “Innovation: Commercializing Science In Energy & Efficiency’. UC Davis has strong programs in many science disciplines, and there is a desire among university players and local politicians to have Davis, California (and some of the greater Sacramento area) be known as a cleantech center. I was interested to hear about what is actually being done to support green entrepreneurs.

From the panel makeup alone, you can tell that UC Davis is anything but passive in developing clean tech solutions and taking them to market.

The panel moderator, Dr. Andy Hargadon is the founding director of the UC Davis Center for Entrepreneurship and the UC Davis Energy Efficiency Center. He explained that UC Davis has a fellowship program for doctoral and post-doc students to take courses in the School of Management, which played an important role in the launch of a startup clean tech company that was the focus on the panel discussion.

Synapsense was started with the help of UC staff and affiliates, based on research conducted in a lab on campus led by Associate Professor Raju Pandy who took a leave of absence from teaching to co-found the Company. SynapSense’s Wireless Green Data Center technology enables data centers, which usually consume massive amounts of energy, to reduce both energy usage and carbon emissions. Pandy had been working with graduate students on the basic research, and one of those graduate students participated in the Entrepeneurship Center’s Business Development program.

To make a long story short, that student told Entrepeneurship Center faculty that his lab was working on something that might be commercialized, and the Entrepreneurship center as well as the Energy Efficiency Center definitely were interested.

The remaining two panelists told other parts of the story of how Synapsense was started and moved out of a UC Davis lab. Dr. David McGee is the Executive Director of InnovationAccess, an office at UC Davis that serves as a liason between the university and the private sector. In addition to filing patents and helping with business planning, the office has a mandate to help connect private enterprise with science research. So if you are a clean tech investor, you might want to check out the InnovationAccess site linked above.

The final panelist brought in “the money” (and more I am sure). Dr. Barbara Grant is the managing director of American River Ventures and has taught at UC Davis. American River Ventures is a venture capital fund focused on companies that help reduce energy consumption as opposed to companies looking for new energy sources, which is covered by other funds.

Do you live near a university with researchers who may be focused on commercial applications for environmental research, sustainable business management, or cleantech basic research? If so, you should find out if there are programs or departments to create a link between the private sector and the academics. And if you know of these programs, please use the Comments feature below to tell other readers about them.

Treasury Undersecretary for International Affairs, David McCormick, said that it may cost developing countries an additional $30 billion to transition from the dirty fuels of the past to cleaner technologies that cut emissions, and this fund will help bridge that gap. Emerging economies like China and India will be the beneficiaries.

The fund will also help stimulate private sector capital by making clean energy projects more attractive to investors and encouraging supportive government policies. McCormick pointed out that it’s in the U.S.’s national interest to help China address global warming and that the Bush administration is using a “strategic economic dialogue” with Beijing to accomplish that.

While the U.S. will be a primary donor, other nations may contribute to the fund, which should be in place later this year. It’s part of a broader plan to bring developing nations into a framework to limit global warming emissions.

United Nations climate chief Yvo de Boer said this about the cleantech fund:

This clean technology fund is perhaps a Marshall Plan on climate change beginning to emerge where we stop worrying about the short term woes and focus much more on taking a bold step forward … towards a clean future.

Does it make sense for the U.S. to be pouring billions into other nations, when we have so far to go here at home? Or does a rising tide lift all ships?

Reuters
Reuters UK