This morning Department of Energy (DOE) Secretary Steven Chu – joined by Senators Al Franken and Amy Klobuchar – announced $100+ million in DOE funding and IRS green manufacturing tax credits for our client SAGE Electrochromics.

 

These funds will help SAGE establish a new 250,000 sq. ft. facility in Faribault, Minnesota used to manufacture energy-saving, electronically tintable dynamic glass that  makes buildings more energy efficient and creates hundreds of new, skilled, green manufacturing jobs.

 

While hundreds of buildings have already installed SageGlass windows, this new government funding will enable the company to mass produce its glass and bring this energy saving technology to the world.

 

Secretary Chu has repeatedly said the biggest gains in decreasing this country’s energy bill, the amount of carbon dioxide and our dependency on foreign oil will come from energy efficiency and conservation in

SAGE Electrochromics' SageGlass Courtesy photo

the next 20 years. SageGlass is a leading example of an energy efficiency technology.

 

SageGlass products transform windows from an energy liability to an energy source. The potential for energy savings is significant because energy loss through windows accounts for about 30% of heating and cooling energy. According to the National Renewable Energy Laboratory (NREL), electrochromic windows like those produced by SAGE can save one-eighth of all the energy used by U.S. buildings each year. This is equivalent to about 5% of the nation’s energy budget. This translates into savings of approximately $300 billion over the next 20 years.

 

That’s not chump change.

 

SAGE focused on something each of us experiences every day – glass – and re-imagined it, transforming glass into something innovative that helps make the world a better place and America more competitive.

 

This is a great example of how something seemingly mundane like a window can become highly transformational.

Dave Bonta hasn’t paid an electric bill in 12 years. He has no heating bill, either.

 

That’s because he kicked his 40 kilowatt/hr electricity habit in the 1990s and used solar electricity to fill the gap. “I learned to live on less,” he told an audience at RiverRun bookstore the other night. “Surprise, I made it to one kilowatt. It wasn’t hard.... It’s kind of nice to think we can throw our electric bills away. It’s kind of empowering.”

 

To reduce his power usage, Bonta – who has since co-authored the “The New Solar Home” and created the USA Solar Store chain – replaced light bulbs, got an energy-efficient washing machine, switched from a vacuum cleaner to a broom, and tossed the electric toothbrushes. “Anything that could be done with human power we did.” Even the press he used in his printing business was human-powered. He pedaled it.

 

Once he’d shrunk his energy footprint, he installed a small-scale solar electricity system in his rustic Vermont home. Printing customers immediately peppered him with questions about his set-up. That’s when the light bulb went off. He could sell this stuff, along with the know-how. Which is exactly what USA Solar Stores do, and the chain now has 27 stores in 11 states. It’s “about to grow like wildfire,” he says earnestly.

 

Bonta models his stores after the crunchy old Gateway stores, where the PCs were displayed on barnboard tables and salespeople didn’t bug you till you had a question. At USA Solar Stores, you can get anything from a conversation to a compact fluorescent light bulb to a full-fledged solar electricity setup. Or you can come in, look and leave. No worries. In any case, Bonta’s team is eager to address what he calls the three solar bogey men: expense, viability, aesthetics.

 

Bogey Man #1: Solar electricity is too expensive. Bonta will look at your current electric bill, figure in current incentives, find ways to reduce your demand, and show you how long it will take to pay off your gear. Even if the incentives disappear, he says, it’s still a good deal. The joy of sticking it to the man? Priceless.

 

Bogey Man #2: It doesn’t work too well. Wrong, he says.There’s a myth that if you wait, solar technology will get less expensive and super technology will come along. “The way it is now is pretty good. The technology is there, and the only thing missing is people who will try it.”

 

Bogey Man #3: It’s ugly. No, Bonta says, solar is becoming increasingly “building integrated” – where it’s embedded in your roof, not tacked on like an afterthought. And you don’t need it on your house at all. Bonta’s panels are on his shed, which gets better light anyway. The homes in his book are of jaw-dropping beauty.

 

Bonta is a softspoken guy. Although he has the conviction of a preacher, he has the slickness of, well, the guy who melted down in his first speech to the Rotary. But in the bookstore, once he warmed up you could tell he will not be denied: “Everything we can do to get our country on a sustainable path, we’re going to do.” If not, he says, generations will hold us accountable for the demise of the world’s ecology. “We can either explain it to them from a wheelchair, or fix it now.”

 

All good people support renewable energy, right?

 

It depends.

 

As the country gets serious about solar, wind and other renewables, and the government steps in with subsidies, parties that traditionally fell in line on eco issues are increasingly squaring off.

 

Cape Cod's oldest windmill dates from the 1600s and is located in West Yarmouth

The Nature Conservancy, for example, describes how a 7,900-acre wind farm in Kansas brought in 20 miles of roads, 100 towers, transmission lines and a substation, threatening habitats for endangered birds and devouring a big chunk of the country’s disappearing prairie. The organization warns that new energy development will occupy nearly 80,000 square miles of land by 2030 – larger than Minnesota. One state director’s job is seen as mostly “reforming wind power.”

 

Rural Nevada got a shocker when it learned that two large solar farms, in addition to creating hundreds of jobs, would need 1.3 billion gallons of water per year, or about 20 percent of the desert valley’s supply (via New York Times).

 

Water plays a huge, underpublicized role in solar and many other forms of energy production, prompting one analyst to introduce an ominous new eco buzzword: “water footprint.”

 

Water plays a different role in Cape Wind off Massachusetts, potentially the country’s first offshore wind farm, which last week was threatened by a move to place Nantucket Sound on the National Register of Historic Places. “The identity and culture of the indigenous Wampanoag (Native Americans) are inextricably linked to Nantucket Sound,” according to a Massachusetts Historical Commission opinion.

 

CNET sums it all up perfectly, saying, a “new breed of NIMBY (not in my backyard) is emerging: opponents of wind or solar installations who generally support renewable energy, just as long as they are built somewhere else.”

 

Cap-and-trade, clean energy standards, cash for clunkers and smart grids are the headline grabbers and fight-starters in the climate and energy bill. These stars of the American Clean Energy and Security Act of 2009 aren’t, however, going to save the U.S. from also-ran status in the renewable energy economy. Nothing in those provisions – or at least nothing obvious – confronts the very real possibility of China emerging as the superpower of renewable energy in the short term. Out of the limelight, in the bill’s back roads and side streets, lie the gems of hope for America’s future as a player in renewable energy, providing the U.S. can weather the Chinese onslaught. And it’s going to be a hummer of an onslaught.

The Chinese government is going after the top spot in renewable energy with a vengeance, and by employing their unique brew of free market talk and authoritarian action, they’re probably going to get it. If that makes you queasy, it should. The U.S., already a secondary player in renewable energy behind China and the European Union, is staring at yet another possibility of its energy future being tied to a foreign nation. Specifically, a foreign nation that’s also holding much of America’s debt.

There’s plenty afoot to bear out that pessimistic view. China has targeted wind and solar, the two most promising renewable technologies of the moment. The Chinese government has already created the world’s largest domestic wind power market, and they’re using it as a base to conquer the international export market for wind turbines. Using its success in textiles, food processing, electronics and consumer goods as a model, China has erected mazes of regulations specifically aimed at screwing foreign companies out of Chinese business. That gives Chinese companies a chance to flourish without competition on their home turf, subsidizing their push into export markets.

Having flashbacks to the Japan Inc. of the 1980s? The gradual demise of GM, Ford and Chrysler at the hands of Toyota and Honda? Well this is worse. Unlike democratic Japan, China doesn’t even pretend to play by free market rules. The New York Times reported last week that companies who built manufacturing plants inside China to satisfy domestic content requirements were aced out of the turbine market when the government outlawed turbines of less than 1,000 KW capacity. With tactics like that, it won’t be long before Chinese companies are the Honda and Toyota of the renewable energy industry. Next step, a wind farm near you. And solar is next on the agenda.

Even if China didn’t have a head start in renewable energy technology production, the U.S. wouldn’t be able to compete in volume manufacturing of renewable energy products any more than it could in apparel or consumer goods. China has a lower cost structure based on indentured servitude wages and light regulatory burdens. The U.S.’s winning game is not volume manufacturing of wind turbines or anything else. It’s innovation.

That brings us back to the climate and energy bill. There is $190 billion in the bill to fund renewable energy research. From the Apollo program to the Internet, the U.S. government has proven itself a great engine of new technology. That is the real secret weapon in the American renewable energy arsenal – a constant stream of new and better ideas.

The U.S. is the Saudi Arabia of innovation. No country has a better record of new technology development than this one. American universities and research institutes still attract the world’s best minds. The bill calls for establishing national centers of excellence in renewable energy technology across the country. Massachusetts took a similar approach in the 1980s under Gov. Michael Dukakis, funding centers of excellence in biotechnology, photovoltaics, nanotechnology and micro processing. Supplementing its disproportionately large share of world-class universities, the centers of excellence helped keep Massachusetts a technology leader. North Carolina had similar success with Research Triangle Park, which isn’t a center of excellence per se, but shows how government can effectively prime the private research pump.

China is gearing up to produce today’s state-of-the-art wind and solar technology. Let them. There is plenty of profit in developing tomorrow’s state of the art. Today’s solar and wind technology, for example, isn’t all that efficient. Most solar cells convert only 30 percent of the light that hits them into electricity. Wind turbines can’t turn light breezes into energy. There are no technologies for large-scale energy storage to even out the production peaks and valleys that make wind and solar unreliable in much of the world. Here’s betting the answers to those conundrums are going to come out of American laboratories.
 
A post script: Lest there seem to be a smack of jingoism in this post, I’ll say for the record that I’m all for China turning into a renewable energy superpower. The country is industrializing at a breakneck pace, creating a gargantuan demand for energy. Burning coal and oil to satisfy the demands of 1.3 million consumers portends a dismal future for the environment. Every wind turbine in the Gobi Desert or the South China Sea is an investment in a better world for everyone. As an American and a believer in democratic principles, I’d still like to think that we have a better way of developing a renewable energy economy than China. But as a father and potential grandfather, here’s hoping that both countries get there one way or the other.

I’m blown away by the new Prius ads.

David Kiley said this ad from Toyota may have been inspired by Honda’s earlier diesel engine “Hate Something” spot (compare the two yourself), but from my eyes, it’s the freshest creative in a decade.

They’ve taken a car that was already the # 1 best selling hybrid in the world – the undisputed mainstream brand – and made it a vehicle of the people, for the people, by the people. Literally.

Using 200 extras, they created a layered - but somehow unified - sea of 1 million people parts. Everything (except the Prius, road and sky) was constructed from human beings who become “landscape texture.”  Grass. Water. Trees. Clouds. Stones. Leaves. Sun. Flowers. Butterflies. The Bellamy Brothers’ # 1 hit from 1976 - “Let Your Love Flow” – is the audio glue. 

 

 

 

 

I can’t remember the last time this happened.