A wisp of hope for American renewable energy wafts in on the climate & energy bill as China emerges

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.

Toyota’s new 3rd gen Prius ads are mesmerizing

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.

https://www.youtube.com/watch?v=Tq4nrmnqY9o&feature=player_embedded

But it’s not just creative for creative’s sake. Lots of agencies are living the creed “make it entertaining, engaging and disruptive” so consumers take notice and buy.

The new Prius spot is much more.

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.

The piece de resistance (besides the people, colors and music) is the movement. As the Prius drives by, clouds shift, grass sways, butterflies fly, flowers open, water flows, the sun glows.

It’s a visual trip, blending nature, technology and the human race.

They’ve raised the branding bar yet again with the newest Prius ad, spotlighting solar.

Hopefully for Toyota, the new campaign will move more than grass. The Prius has been struggling in the U.S. of late (mirroring the rest of the auto industry). U.S. sales of the Prius were down from 15,011 in May 2008 to 10,091 for the same month this year. Year to date, U.S. Prius sales are 42,753 compared to 79,675 in 2008 – 45 per cent less than last year.

I feel better every time I see these ads. I actually want to see them.

I can’t remember the last time this happened.

Cleantech links for 5-6-2009

  • Thinking of going solar? First start with an energy self audit. Here’s how (Scientific American)
  • Ford is spending $550 million to retool one of its plants into a green car factory (CNET Planetary Gear)
  • Is the EPA finally standing up to the corn ethanol lobby? The industry is having a conniption over new biofuel emission rules. (Earth2Tech)
  • What do think of Volkswagen’s new eco-friendly (or not?) print ad? Greenwash Index wants to know.
  • The first LEED Platinum, true Zero Net Energy home in Vermont. (Jetson Green)
  • We know the clean energy industry is engineering bacteria to produce better biofuels. But bacteria for better solar panels too?

A broader PR palette now critical to move clean technology industry forward

Clean technology investment was a major platform for Obama during his campaign.

He said, “My energy plan will put $150 billion over 10 years into establishing a green energy sector that will create up to 5 million new jobs over the next two decades.” He promised to create a Clean Technologies Venture Capital Fund, hoping to invest $10 billion per year into this fund for five years. Obama also promised to double science and research funding for clean-energy projects, including those making use of biomass, solar and wind resources. This was such an encouraging vision for our industry.

But the encouraging news is that this wasn’t campaign rhetoric.

Yesterday, President Obama boldly acted on fuel efficiency and global warming. He urged passage of the $825 billion economic stimulus package in the House and Senate. Those bills include billions for investment in renewable energy, conservation and an improved electric grid. He said, “No single issue is as fundamental to our future as energy.”

There’s never been a more critical time for authentic, persuasive, pragmatic, inspired communications. But does “traditional PR” play within this unfolding drama? Are messaging, thought leadership and media relations the core PR elements needed to affect the necessary change?

No, certainly not.

The clean technology industry is a complex ecosystem that includes economics, politics and public policy. Clean technology companies must continually balance these considerations. The industry also has a vibrant moral dimension – a making the world a better place element – that adds legitimacy, scope, involvement and urgency.

In this dicey economic time, the clean technology industry needs even greater support from investors, public policy makers and the public itself to blossom. To achieve the progress President Obama envisions, we must think, plan and act holistically from a communications perspective as the clean tech industry develops and markets products and solutions that ultimately enable us to live cleaner, greener, better lives.

Thankfully, public relations now represents a much wider palette. It should – and must – embrace a variety of strategic areas including thought leadership, public advocacy, social media, crisis communications, ethnography, employee communications, corporate social responsibility, multi-cultural relations, healthcare, change management and financial communications.

To name a few.

Depending on the clean tech company, product/service, market segment and challenges faced, many of these communications ingredients must be thoughtfully weighed, integrated and acted upon, often in the same relative timeframe. Again and again and again.

Yes, these are complex, critical, consuming, highly charged challenges for communications professionals.
But what a historic moment to shape a societal/global movement that will continue to grow in urgency as tough times morph … into stable times … and better times.

Grid computing makes the world a better place

In 1999, the Seti@Home project was launched to take advantage of the world’s idle PCs in the search for extraterrestrial life. It was one of the earliest examples of volunteer grid computing: tapping the collective processing power of many widely scattered computers that are not normally centrally controlled.

Today, the World Community Grid is applying that same model for research projects that benefit humanity. Its mission is to create the world’s largest public computing grid for discovering new clean energy technologies  and other worthy scientific breakthroughs. WCG is making the technology available to public and not-for-profit organizations that might otherwise not do the research due to the high cost of a high-performance computing infrastructure.

It costs you nothing and couldn’t be easier to participate — a simple, one-click download is all that’s required to make your PC part of the grid. When you’re away from your PC, it will crunch data for a specific WCG project and send the results back to a central server. Each computation that your computer performs provides scientists with critical information that accelerates the pace of research. Check it out and get involved here.

Kamen segues into LED lighting

Inventor Dean Kamen has taken his three-acre island off the grid by retrofitting the buildings and grounds with LED lighting – some in dazzling colors – to cut power consumption in half. What power he does still need comes from wind and solar. The catch? It wasn’t cheap. Check out the details and the slide show.

Photo credit: John Brandon Miller, The New York Times

Utility-scale solar power in the spotlight

When I walked the aisles at Solar Power 08 it was salmon-packed-home-bound-up-the-river-time; you literally moved down aisles in slow motion. Like the telecommunications scene two decades ago, consolidation is coming fast to the solar industry. I’ve never seen so many manufacturers of photovoltaic (PV) modules; they’re not all going to make it. But it’s not just PV manufacturers here in San Diego, there’s a fully developed ecosystem including utilities, distributors, contractors, installers, architects, consultants and financiers.

The most amazing factoid I’ve heard so far is fresh data published by the Solar Electric Power Association (SEPA), which co-sponsors the show with the Solar Energy Industries Association (SEIA).

SEPA disclosed that utilities are quickly becoming the largest customer for the solar industry. Leading the way is Southern California Edison which has the most solar electric capacity integrated into its power portfolio. Overall capacity exceeds 409 megawatts. Pacific Gas & Electric has the most solar electric capacity on the customer side of the meter with 144+ megawatts. And there are dozens and dozens of other utilities upping the ante.

It’s not a cliche to say we’re only seeing the literal tip of the iceberg. 2008 has seen an unprecedented number of announcements of large solar power projects that include concentrating solar thermal and photovoltaic plants. The scale of activity is massive, over 5,500 projects ranging from 10 to 800 megawatt installations.

Lots and lots of jobs are also being created; over 4.2 million nationally at last count.

As Governor Schwarzenegger said “Solar is everywhere, it’s the future; it can’t be stopped.”

Everybody in San Diego is pretty pumped up this week; encouraging news for a struggling economic time.

Let the sunshine in.