The New Energy Companies
Joel Makower
What, exactly, is an "energy company"? That used to be an easy question
to answer, but no longer. Now, it seems, just about everybody wants in
on the energy game.
One of the more noteworthy aspects of what has come to be called "the
clean-tech revolution" is that industry sector lines are blurring. It's
no longer just oil, gas, coal, and utility companies that qualify under
the "energy company" moniker. As the world's energy choices diversify,
so, too, has the number and nature of companies jumping in. There are
now "energy companies" emerging from a variety of decidedly non-energy
sectors, from electronics to chemicals to aerospace to ag.
Consider Dupont, which recently
announced a $50 million expansion of a facility to manufacture
materials for solar panels -- specifically, the panels' protective
backsheets. This is hardly the first big energy bet for Dupont, the
company who's tagline was, famously, "Better Living Through Chemistry."
For example, it boasts an
entire division
making "more powerful, more durable, and more cost- efficient fuel cell
materials and components," as the company puts it. In May, Dupont Fuel
Cells
introduced components that provide direct methanol fuel cells -- the
kind that someday will power laptops and cell phones -- with improved
overall power performance and longer run-times. Another big chem
company, Dow, boasts the world's largest fuel cell project, a
partnership with General Motors, in which GM aims to prove the
viability of hydrogen fuel cells for large industrial power. GM is
powering fuel cells with hydrogen created as a co- product at a Dow
facility in Freeport, Texas. Meanwhile, 3M, the maker of Post-its
and Scotchguard, similarly has a
fuel cell division, developing membranes and other component parts.
I've written on several occasions about
GE, which already is the largest U.S. wind turbine manufacturer,
and which also is engaged in manufacturing solar, fuel cell, coal,
nuclear, and other energy technologies.
Who else is in the energy business? There's aircraft maker Boeing,
which
recently signed a multi-million dollar contract to supply
concentrator solar cell assemblies to an Australian solar company.
Owens Corning, best known for its pink building insulation,
recently introduced a new "single-end roving and knitted fabric,"
WindStrand, which could enable lower costs and higher performance for
wind turbines.
The electronics companies have long been in the energy biz.
Fujitsu,
Hitachi, Kyocera,
Sanyo,
Sharp,
Siemens, and
Toshiba are among the many firms in that sector making solar
cells, fuel cells, components for wind turbines, and control
technologies that make all of these things work more efficiently. Sharp,
for its part, is the world's largest maker of solar cells and modules.
There's the ag folks. Archer Daniels Midland, one of the world's
largest processors of soybeans, corn, wheat, and cocoa, is also one of
the world's largest manufacturers of
ethanol and biodiesel, increasingly used vehicle fuels. Its biggest
competitor, Cargill, last year made a
major expansion of its ethanol capacity, to nearly a quarter-billion
gallons a year.
It's not just the ag growers. John Deere, the tractor
folks, last year made
equity investments in several wind energy projects in the rural U.S.
and has created a business unit to provide project development, debt
financing and other services to those interested in harvesting the wind.
Another heavy-equipment manufacturer, Caterpillar formed an
alliance with
FuelCell Energy involving the distribution and development of fuel
cell power generation products for industrial and commercial use.
And then there are the IT companies -- the nice people who brought us
the Internet and the personal computer, among other things. For several
years, they've been investing in ways to improve the electricity
infrastructure to make it more efficient and reliable. After all, the
new
"smart grid," in which homes, businesses, and appliances "talk" to
one another to determine whether and when to power up or down, will
require switches, routers, and sophisticated software -- the same things
that run the equipment used to transmit and receive this blog. The
fusion of info tech with energy tech has led
IBM
and
Cisco, among others, to develop products and technologies to
help deliver energy more efficiently.
Who else could become an "energy company"? Almost anyone who makes
metals, plastics, advanced materials, or coatings. Software companies,
who may write the code that weaves the cacophony of energy producers
into a harmonious system. Big-box retailers, whose spacious, flat roofs
could collectively become solar farms for the surrounding community.
And, by extension, big real estate developers -- of malls, warehouses,
industrial parks, and other large complexes -- creating
microgrids of solar, wind, geothermal, fuel cell, and other energy
sources. Some of these players already are emerging, with many more
still to come.
It may not be long before we're asking, "Who's not an energy
company?"
©Clean Edge Inc.