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CLEANTECH MARKET | MARKET OPPORTUNITY
Innovative environmental solutions are surfacing daily – and with them, an exciting world of attractive “green” investment opportunities.
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WORLD ENERGY CONSUMPTION Quadrillion BTU’s/year |
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New energy for a growing world
Global energy consumption will increase 57per cent between 2004 and 2030, according to the U.S. Department of Energy International Energy Outlook 2007. Consumption in the emerging markets, such as Brazil, Russia, India and China, will be most dramatic and is expected to quadruple over the same period.
Despite the consumption increase, many nations want to reduce their dependence on imported fossil fuels and to respond to concerns about greenhouse gas emissions. As a result, the renewable energy segment is receiving strong government support and substantial infrastructure investment.
According to observers such as Country Watch (Energy Forecast, April 2007), renewable energy will be the fastest growing production source in meeting the world’s need for more energy, and investment in renewables is thus expected to accelerate dramatically.
Clean Edge, a U.S. clean energy research firm, anticipates that the use of clean energy sources – including biofuels, wind power, solar power and fuel cells – will grow from US$77.3 billion in 2007, to more than US$254 billion in 2017. Wind and solar will be the largest contributors. Wind is already cost competitive with fossil fuel based energy generation. “The Global Wind Energy Council is forecasting that the global wind market will grow by over 155 per cent to reach 240 GW of total installed capacity by 2012” Brussels, 27 March 2008.
Over the next 10 years, multiple sources anticipate rapid growth in demand for photovoltaic devices. Such estimates range from 26–28 per cent annually (Bank Sarasin and Navigant) to more than 40 per cent (Solar Buzz), and that U.S. demand will significantly outpace global demand. This strong growth will provide investors with many opportunities to benefit.
Infrastructure – an essential investment
Balancing the production and delivery of energy to meet varying demand has always been a challenge for power utilities – a challenge compounded first, by the inherently intermittent nature of wind and solar energy, and second by the aging power distribution grid in many developed nations.
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GLOBAL CLEAN-ENERGY PROJECTED GROWTH 2007–2017
$US Billions |
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WIND MARKET GROWTH
Cumulative capacity 2008–2012 |
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Governments and corporations are exploring and investing in new ways to improve the utilization of earth’s natural resources.
The versatility that an effective energy storage solution will bring is encouraging companies and governments to invest in both proven and novel solutions for the distribution and delivery of power.
Large-scale and localized storage solutions building on current battery and fuel cell technologies are coming to market, and more efficient transmission and improved flow logistics are being deployed to meet the future needs of energy consumers. Clearly, a technology breakthrough in this field will have the potential to attract significant investment and to pay equally large rewards.
Developing clean fuel solutions
Transportation remains one of the largest sources of greenhouse gas emissions and it is now apparent that hybrid vehicles and improved fuel efficiency will not be sufficient to prevent or reverse environmental damage.
While automotive firms are developing advanced power systems, lower emitting platforms and lighter weight, more compact cars, as well as pure electric and zero-emission vehicles, liquid fuels will continue to power a majority of vehicles for the foreseeable future.
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GLOBAL WATER MARKET GROWTH
% annual increase by 2015 |
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Biofuels incorporating plant-based components provide partial environmental relief, as plant growth absorbs carbon dioxide from the atmosphere. Efficient large-scale production of biofuels will also allow many nations to reduce their dependence on imported fossil fuels. Blended gasoline incorporating ethanol produced from corn and soy beans is already familiar to consumers, while the advantages of biodiesel have been recognized for 20 years in Europe but have yet to make much impact elsewhere.
Research and innovation – and further investment – will continue in biofuels to minimize the impact on the food supply and maximize the energy produced per acre of land.
The growing business of reducing resource use
The rapid economic development of China, India and other nations has accelerated the consumption of many natural resources, including metals.
Metals are generally recoverable after use and, as mining is typically destructive to the environment, much attention is being given to the recovery and reuse of these commodities.
Also, our most basic and necessary resource, fresh water, will potentially be in short supply unless increased conservation is introduced and additional purification and recovery capacity is built. According to an international monthly newsletter, global water reuse capacity will increase from 19.4 million cubic meters a day in 2005, to 33.7 million cubic meters a day in 2010 and to 54.5 million cubic meters a day in 2015 – an increase of 181 per cent in a decade. To address these issues, companies and governments continue to explore new and exciting technologies to improve the utilization of our planet’s natural resources.
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