Clean energy technology helping drive economy

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Clean energy technology helping drive economy
Clean energy technology helping drive economy"There is a strong drive toward renewable energy technology and smaller, more distributed energy technology in some applications to meet the driving legislation and social desires," states Thomas Erickson, Associate Director for Research at Energy & Environmental Research Center in Grand Forks, ND.

By: Alan Van Ormer, Prairie Business Magazine

Energy is critical to the entire infrastructure of not only the United States, but also around the world. Energy, in particular clean energy technology, is also becoming a strong driver of the world's economy.

Peter Ekberg, partner and co-chair of the Emerging Companies Practice at Faegre & Benson, LLP, believes that clean energy and the jobs that these businesses create will leave a positive economic footprint on the world's economies as they continue to see the importance of shifting to self sustaining energy methods.

"We have already seen a significant positive impact that these businesses have, particularly on many rural communities in America's heartland, which had in recent years seen general declines in the populations," says Ekberg, who recently discussed five key trends that will define clean-energy markets through 2011 and beyond at the E3 2010 Economic and Environmental Conference in St. Paul, MN.

Ekberg adds that while global growth rate in clean technology investments has declined over the past several years, clean technology investment remain at historical levels, with total investments in new clean energy generation capacity now outpacing those for conventional fossil fuels for the past two years.

"With 12.7 percent of all U. S. stimulus dollars ($100 billion) earmarked for clean technology investments and activities, I see continued strong growth in jobs in the clean technology area," he says. "The types of jobs being created as well fall into a broad range, and are predominantly focused on higher end and higher paying jobs than entry-level service type positions."

Clean Edge, Inc., founded in 2000, is the world's first research and publishing firm devoted to the clean technology industry. The company publishes the annual Clean Energy Trends and Clean Tech Job Trends.

According to the company's research for the Clean Energy Trends 2010, biofuels reached $44.9 billion in 2009 and is projected to grow to $112.5 billion by 2019. Wind power is expected to expand from $63.5 billion in 2009 to $114.5 billion in 2019. Solar photovoltaics, including modules, system components, and installation, will grow from $36.1 billion in 2009 to $116.5 billion in 2019.

In addition, analysis shows that solar photovoltaics and wind power industries currently account for 830,000 jobs. The projections for 2019 are more than 3.3 million jobs in those two sectors.

In its Clean Tech Job Trends report for 2010, the authors suggest five national policies and initiatives to help create clean technology jobs. They include deploying aggressive renewable portfolio standards with 'teeth,' supporting green infrastructure development, implementing and enforcing efficiency, fuel, and emissions rules and standards, establishing green banks, bonds, and funds, and implementing carbon taxes.

Ekberg adds that over the next two to five years three key trends will define clean energy technology markets. One is that clean energy technologies are becoming and will continue to become cheaper. In addition, markets dealing with clean energy technology technologies are becoming and will continue to mature. "We should expect consolidation and internationalization of clean technology businesses, with multinationals and the strongest companies acquiring smaller competitors," he states.

Finally, there will be commoditization. "Markets have now realized, and clean technology businesses must recognize and adapt their businesses to the commodity nature of inputs and outputs from clean technologies (like feedstocks, corn, water, wind,)" he adds.

Erickson comments that in this region the greatest opportunity in renewable energy is wind and jobs that are associated with the wind sector including installation of wind turbines, manufacturing of blades, as well as maintenance of the turbines.

"The region also has an opportunity in distributed biomass power," he adds. "North Dakota has a significant amount of agricultural production, which produces biomass that can be used to generate power. Those systems aren't quite ready for commercial deployment yet, but are being developed and I believe we will see significant growth in that area in the future."

Energy Dynamics increasing geothermal business

In Carthage, SD, Energy Dynamics, Inc. is seeing an increase in the geothermal business with the help of federal tax incentives. "While the tax incentives are a plus, geothermal has seen steady growth, over the last decade because of the considerably lower operating costs and the environmental advantages of a truly clean energy source," states Colin Wunder, Director of Technical Services, for the company. "We see these factors as driving our business."

Energy Dynamics is a distributor for both Hydron and GeoComfort equipment, with nearly 200 dealers in six states. They hold the largest geothermal inventories in the region, providing training and technical support, as well.

Even in a down economy, the company has seen steady growth. "I believe we will see increased jobs in the clean energy field," says Wunder. "It somewhat depends on what happens with other fuels. As their costs increase, geothermal looks even better. When installing geothermal systems, customers are seeing quicker pay-backs and better returns on their investment."

Road map directing Minnesota

Minnesota created a Clean Energy Technology Roadmap to identify promising research and development opportunities to achieve the state's clean energy goals.

During the 2007 legislative session, provisions were passed outlining Minnesota's energy goals. They include: reducing per capita use of fossil fuel as an energy input by 15 percent by 2015; deriving 25 percent of the total energy used in the state from renewable energy resources by 2025; reducing Utility Conservation Improvement Program electricity and natural gas consumption by 1.5 percent per year; reducing greenhouse gases by 15 percent below 2005 emission levels by 2015, 30 percent by 2025, and 80 percent by 2050; and establishing a Renewable Energy Standard for electric utilities, totaling 27 percent by 2025.

Ekberg believes the roadmap fits in well with what's happening on a global basis. "The focus is really a worldwide green initiative," he states. "Different global regions or even areas of the United States may prioritize their green initiatives differently, especially if they have direction similar to Minnesota's Clean Energy Technology Road Map, but clearly the trend is for all of us to be more energy efficient."