Happy New Year! Yup, it’s that time again; time to look back at our past mistakes and triumphs, and look ahead to what the future might hold. The future is especially exciting for us in the United States with the fast approaching inauguration of our new President Barack Obama on January 20th! And one of the things that I personally find most compelling about our charismatic President-elect is his new energy plan for America. He has promised to create five million new “green collar†jobs, and work toward energy efficiency and conservation. The past year 2008 was already a pretty exciting time for green technologies, and with Obama leading the way, 2009 promises to be even better.
With eye-catching headlines like “US military funds $35M in research of algae-based jet fuel†popping up at the end of December, and “Air New Zealand tests biofuel Boeing†on January 2nd, the thing on everyone’s mind lately seems to be biofuels. And boy, is there a lot to choose from!
Probably the first thing that comes to mind when one thinks of biofuels is ethanol, which, contrary to popular belief, can and is made from things other than corn. The world’s second largest producer of ethanol, Brazil, has been using sugar cane for thirty years. But the buzzword now is not simply “ethanol,†but “cellulosic ethanol,†which is defined on Wikipedia as “a biofuel produced from wood, grasses, or the non-edible parts of plants.†An article posted on CNBC’s website in March of 2007 called cellulosic ethanol “the closest to rewarding investors with solid returns in the immediate future.â€
Also quoted in that article is Jerry Taylor, analyst at Washington DC’s Cato Institute, who reports that cellulosic ethanol costs approximately five times as much as corn-based ethanol, which is “several times the cost of a gallon of gasoline,†especially without subsidies. However, Jim Matheson, general partner at Flagship Ventures, counters that by insisting new technology will cut that cost within three to five years, and judging by the rate of this craze, he’s probably right. A popular choice for cellulosic ethanol is switchgrass, an inedible, drought resistant plant commonly found in the prairies of North America and used for soil conservation.
Another up-and-comer on the biofuels front is the jatropha fruit, or more specifically, the oil from its seeds, which is already being used to make biodiesel that power cars and trucks, and now that Air New Zealand Boeing 747-400 mentioned above. The Boeing’s engine has been retrofitted to run on a combination of half Jet A1 fuel and half jatropha oil. Air New Zealand was not the first (Virgin Atlantic Airways flew the same plane fueled partly by a coconut oil and babassu oil concoction just shy of a year ago) and certainly won’t be the last commercial airline to mix biofuels with traditional jet fuel. Considering that a good chunk of the major automotive companies around the globe are looking at 2010 releases of their electric vehicles and plug-in electric gasoline hybrids, right now is an exciting time for alternative energy sources.
Speaking of electricity, we’re looking for new ways of generating that, too. The popular answer here is wind power, often touted as being recession proof, despite the cost of wind turbines increasing with demand. But with oil moguls like Boone Pickens investing, there must be more than a little something to it. The Cleantech Group (formerly known as the Cleantech Venture Network) reported in a CNBC article that “[w]ind energy attracted $380 million [in 2006] compared with $1.5 million in 2005.â€
There are a few potential drawbacks to using wind power. A lot of the prime locations are, well, out in the middle of nowhere, for example, and power is only generated while the wind is blowing the turbines, but I agree with Jim Matheson and say that here, too, technology will quickly catch up and solve these short-comings in the very near future. Batteries to store the power from when the winds are blowing, for instance. Though the initial investment is higher than other forms of generating electricity, the pay-off is also higher, and “wind power plants have relatively little impact on the environment compared to other conventional power plants,†as pointed out at this advantages and disadvantages page by the United States Department of Energy.
In addition to the somewhat shortsighted “they’re ugly†argument (I find wind turbines to be peaceful and generally on the aesthetically pleasing side), many people express concerns about the giant blades killing birds, but according to this Wikipedia article, “studies show that the number of birds killed by wind turbines is negligible compared to the number that die as a result of other human activities such as traffic, hunting, power lines and high-rise buildings and especially the environmental impacts of using non-clean power sources.†Like power lines aren’t ugly, and I’ve noticed they’re far more popular with the birds than wind turbines.
If you’re the investing type, I hope this post has opened your eyes to some new markets. If not, don’t worry, I did promise you a two-parter, and next week I’ll be looking at those green technology jobs promised to us by so many. Learn how to green your home and business. The technology is out there, we just have to harness it.
