Plunkett's Green Technology Industry Almanac 2017 9781628317558

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Plunkett’s Green Technology Industry Almanac 2017

Plunkett’s Green Technology Industry Almanac 2017

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PLUNKETT’S GREEN TECHNOLOGY INDUSTRY ALMANAC 2017 The only comprehensive guide to green companies & trends

Jack W. Plunkett

Published by: Plunkett Research®, Ltd., Houston, Texas www.plunkettresearch.com

PLUNKETT’S GREEN TECHNOLOGY INDUSTRY ALMANAC 2017 Editor and Publisher: Jack W. Plunkett

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PLUNKETT’S GREEN TECHNOLOGY INDUSTRY ALMANAC 2017 CONTENTS Introduction How to Use This Book

1 3

Chapter 1: An Analysis of Major Trends and Technologies Affecting the Green Technology Industry 6 1) Introduction to the Green Technology Industry 7 2) Demand for Green Technologies and Conservation Practices Evolves, Fueling Investment and New Product Development 9 3) Water Conservation Technologies to Enjoy Tremendous Growth/China Targets Desalination 11 4) Recycling Flourishes/Gasification Technology Looks Promising 12 5) Food Waste on the Rise/Recycling Efforts Underway 13 6) Biomass, Waste-to-Energy, Waste Methane and Biofuels from Algae 14 7) Lighting Technologies and LEDs Conserve Energy and Offer New Product Development Potential 15 8) Smart Cities Utilize Big Data, Sensors and Advanced Technologies to Increase Efficiencies of All Kinds/Massive Business Opportunities Emerge 17 9) Packaging Technology Improves/Wal-Mart and Coca-Cola Boost Packaging Sustainability 17 10) Energy Intensity Is a Prime Focus in China/U.S. Achieves Dramatic Energy Intensity Results 19 11) Interest in Geoengineering Grows 20 12) Environmentalists Campaign for Chemical Industry Reform 21 13) Homes and Commercial Buildings Seek Green Certification 22 14) The “Internet of Things (IoT)” and M2M: Wireless Sensors to Boom, Aided by Nanotechnology 24 15) Major Research and Advancements Lithium Batteries/Tesla and Panasonic Plan Gigafactory 26 16) Nanotechnology Sees Applications in Fuel Cells and Solar Power/Micro Fuel Cells to Power Mobile Devices 27 17) Fuel Cell and Hydrogen Power Research Continues/Fuel Cell Cars Enter Market 28 18) Fuel Efficiency Continues to Improve/Stiff MPG Standards Adopted in the U.S. (CAFE Rules) and Abroad 30 19) Car Sharing Programs Like Zipcar and Autolib, AKA Mobility Services, Proliferate 32 20) Electric Cars and Plug-in Hybrids (PHEVs) Enter Market in Low Numbers 33 21) Smart Electric Grid Technologies Are Adopted 35 22) The Energy Industry Invests in Storage Battery Technologies with an Eye on Distributed Power and Renewables 36 23) Superconductivity Provides Advanced Electricity Distribution Technology 39 24) Electric Utilities Adopt Coal Emissions Scrubbers While the Industry Tests Carbon Capture and Clean Coal Technologies 40 25) Bio-plastics Become a Reality/Plastic Packaging Made from Corn and Soy 41 26) New Display Technologies with PLEDs 42 27) Apparel Manufacturing Goes Green 42 Continued on next page

Continued from previous page

Chapter 2: Green Technology Industry Statistical Tables & Charts GreenTech Industry Statistics and Market Size Overview Global Alternative Energy Industry Statistics and Market Size Overview Global Green Technology Industry Revenues: 2016 Energy Production by Renewable Energy, U.S.: Selected Years, 1950-2015 Net Electrical Power Generation From Renewable Energy Sources, U.S.: 2000-July 2016 Total Renewable Electricity Net Generation by Source & State, U.S.: 2015 Share of Electricity Generation by Energy Source, U.S.: Projections, 2015-2040 Estimated Levelized Cost of Electricity (LCOE) for New Electricity Generation by Energy Source U.S. Renewable Energy Consumption by Energy Source, 2009 vs. 2015 Renewable Energy Consumption by Source, U.S.: Selected Years, 1950-2015 Renewable Energy Consumption in the Residential, Commercial & Industrial Sectors, U.S.: 2009-2015 Renewable Energy Consumption in the Transportation & Electric Power Sectors, U.S.: 2009-2015 Fuel Ethanol Production & Consumption, U.S.: 1981-July 2016 Biodiesel Production & Consumption, U.S.: 2001- July 2016 Light Bulb Comparison Global Area of Biotech Crops by Country: 2015 Federal R&D Funding by Character of Work and Facilities and Equipment, U.S.: Fiscal Years 2015-2017 Federal Funding for R&D & R&D Plant, by Budget Function, U.S.: Fiscal Years 2011-2017 U.S. Department of Energy Funding for Science & Energy Programs: 2015-2017 Federal R&D & R&D Plant Funding for Energy, U.S.: Fiscal Years 2015-2017 Federal R&D & R&D Plant Funding for General Science & Basic Research, U.S.: Fiscal Years 2015-2017 Federal R&D & R&D Plant Funding for Transportation, U.S.: Fiscal Years 2015-2017 Federal R&D & R&D Plant Funding for Natural Resources & Environment, U.S.: Fiscal Years 2015-2017 Federal R&D & R&D Plant Funding for Agriculture, U.S.: Fiscal Years 2015-2017 Federal Funding for Research, by Agency & Field of Science & Engineering, U.S.: Fiscal Year 2015 Major Patenting U.S. Universities: 2015 Chapter 3: Important Green Technology Industry Contacts

(Addresses, Phone Numbers and Internet Sites)

44 45 46 47 48 49 50 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72

Chapter 4: Company Profiles of THE GREEN TECHNOLOGY 300: Who They Are and How They Were Chosen Index of Companies Within Industry Groups Alphabetical Index Index of Headquarters Location by U.S. State Index of Non-U.S. Headquarters Location by Country Individual Data Profiles on Each of THE GREEN TECHNOLOGY 300

108 109 118 120 123 126

Additional Indexes Index of Hot Spots for Advancement for Women/Minorities Index by Subsidiaries, Brand Names and Selected Affiliations

411 412

A Short Green Technology Industry Glossary

422

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INTRODUCTION

PLUNKETT’S GREEN TECHNOLOGY INDUSTRY ALMANAC is designed as a general source for researchers of all types. For purposes of this book, we define green technology as the application of advanced systems and services to a wide variety of industry sectors in order to improve sustainability. The data and areas of interest covered are intentionally broad, ranging from the various aspects of the green technology industry, to emerging technology, to an in-depth look at the major firms (which we call “THE GREEN TECHNOLOGY 300”) within the many segments that make up the green technology industry (sometimes referred to as “greentech,” “clean technology” or “cleantech). This reference book is designed to be a general source for researchers. It is especially intended to assist with market research, strategic planning, employment searches, contact or prospect list creation and financial research, and as a data resource for executives and students of all types. PLUNKETT’S GREEN TECHNOLOGY INDUSTRY ALMANAC takes a rounded approach for the general reader. This book presents a complete overview of the green technology field (see “How To Use This Book”). For example, the changes in packaging, building materials, lighting, transportation

and other fields are covered in exacting detail, along with easy-to-use tables on all facets of green technology in general: from growth in renewable energy consumption worldwide to U.S. federal funding for green technology research and development. THE GREEN TECHNOLOGY 300 is our unique grouping of the most noteworthy corporations in all segments of the green technology industry. Tens of thousands of pieces of information, gathered from a wide variety of sources, have been researched and are presented in a unique form that can be easily understood. This section includes thorough indexes to THE GREEN TECHNOLOGY 300, by geography, industry, sales, brand names, subsidiary names and many other topics. (See Chapter 4.) Especially helpful is the way in which PLUNKETT’S GREEN TECHNOLOGY INDUSTRY ALMANAC enables readers who have no business background to readily compare the financial records and growth plans of green technology companies and major industry groups. You’ll see the mid-term financial record of each firm, along with the impact of earnings, sales and strategic plans on each company’s potential to fuel growth, to serve new markets and to provide investment and employment opportunities.

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No other source provides this book’s easy-tounderstand comparisons of growth, expenditures, technologies, corporations and many other items of great importance to people of all types who may be studying this, one of the most exciting industries in the world today. By scanning the data groups and the unique indexes, you can find the best information to fit your personal research needs. The major companies in green technology are profiled and then ranked using several different groups of specific criteria. Which firms are the biggest employers? Which companies earn the most profits? These things and much more are easy to find. In addition to individual company profiles, an overview of green technology and its trends is provided. This book’s job is to help you sort through easy-to-understand summaries of today’s trends in a quick and effective manner. Whatever your purpose for researching the green technology field, you’ll find this book to be a valuable guide. Nonetheless, as is true with all resources, this volume has limitations that the reader should be aware of: •

Financial data and other corporate information can change quickly. A book of this type can be no more current than the data that was available as of the time of editing. Consequently, the financial picture, management and ownership of the firm(s) you are studying may have changed since the date of this book. For example, this almanac includes the most up-to-date sales figures and profits available to the editors as of early 2017. That means that we have typically used corporate financial data as of mid-2016.

•

Corporate mergers, acquisitions and downsizing are occurring at a very rapid rate. Such events may have created significant change, subsequent to the publishing of this book, within a company you are studying.

•

Some of the companies in THE GREEN TECHNOLOGY 300 are so large in scope and in variety of business endeavors conducted within a parent organization, that we have been unable to completely list all subsidiaries, affiliations, divisions and activities within a firm’s corporate structure.

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•

This volume is intended to be a general guide to a vast industry. That means that researchers should look to this book for an overview and, when conducting in-depth research, should contact the specific corporations or industry associations in question for the very latest changes and data. Where possible, we have listed contact names, toll-free telephone numbers and Internet site addresses for the companies, government agencies and industry associations involved so that the reader may get further details without unnecessary delay.

•

Tables of industry data and statistics used in this book include the latest numbers available at the time of printing, generally through mid-2016. In a few cases, the only complete data available was for earlier years.

•

We have used exhaustive efforts to locate and fairly present accurate and complete data. However, when using this book or any other source for business and industry information, the reader should use caution and diligence by conducting further research where it seems appropriate. We wish you success in your endeavors, and we trust that your experience with this book will be both satisfactory and productive.

Jack W. Plunkett Houston, Texas February 2017

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HOW TO USE THIS BOOK

The two primary sections of this book are devoted first to the green technology industry as a whole and then to the “Individual Data Listings” for THE GREEN TECHNOLOGY 300. If time permits, you should begin your research in the front chapters of this book. Also, you will find lengthy indexes in Chapter 4 and in the back of the book.

› Video Tip For our brief video introduction to the green technology industry, see www.plunkettresearch.com/video/greentech. THE GREEN TECHNOLOGY INDUSTRY Chapter 1: Major Trends Affecting the Green Technology Industry. This chapter presents an encapsulated view of the major trends that are creating rapid changes in the green technology industry today. Chapter 2: Green Technology Industry Statistics. This chapter presents in-depth statistics ranging from an industry overview to the consumption of renewable fuels, investment in green

tech research, size of the green tech workforce, market size and much more. Chapter 3: Important Green Technology Industry Contacts – Addresses, Telephone Numbers and Internet Sites. This chapter covers contacts for important government agencies, green technology organizations and trade groups. Included are numerous important Internet sites. THE GREEN TECHNOLOGY 300 Chapter 4: THE GREEN TECHNOLOGY 300: Who They Are and How They Were Chosen. The companies compared in this book were carefully selected from the green technology industry, largely in the United States, with many additional firms based outside the U.S. For a complete description, see THE GREEN TECHNOLOGY 300 indexes in this chapter. Individual Data Listings: Look at one of the companies in THE GREEN TECHNOLOGY 300’s Individual Data Listings. You’ll find the following information fields: Company Name: The company profiles are in alphabetical order by company name. If you don’t find the company you

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are seeking, it may be a subsidiary or division of one of the firms covered in this book. Try looking it up in the Index by Subsidiaries, Brand Names and Selected Affiliations in the back of the book. Industry Code: Industry Group Code: An NAIC code used to group companies within like segments. Types of Business: A listing of the primary types of business specialties conducted by the firm. Brands/Divisions/Affiliations: Major brand names, operating divisions or subsidiaries of the firm, as well as major corporate affiliations—such as another firm that owns a significant portion of the company’s stock. A complete Index by Subsidiaries, Brand Names and Selected Affiliations is in the back of the book. Contacts: The names and titles up to 27 top officers of the company are listed, including human resources contacts. Growth Plans/ Special Features: Listed here are observations regarding the firm’s strategy, hiring plans, plans for growth and product development, along with general information regarding a company’s business and prospects. Financial Data: Revenue (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure represents consolidated worldwide sales from all operations. These numbers may be estimates. R&D Expense (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure represents expenses associated with the research and development of a company’s goods or services. These numbers may be estimates. Operating Income (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure represents the amount of profit realized from annual operations after deducting operating expenses including costs of goods sold, wages and depreciation. These numbers may be estimates. Operating Margin % (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure is a ratio derived by dividing operating income by net revenues. It is a measurement of a firm’s pricing strategy and operating efficiency. These numbers may be estimates. SGA Expense (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure represents the sum of selling,

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general and administrative expenses of a company, including costs such as warranty, advertising, interest, personnel, utilities, office space rent, etc. These numbers may be estimates. Net Income (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure represents consolidated, after-tax net profit from all operations. These numbers may be estimates. Operating Cash Flow (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure is a measure of the amount of cash generated by a firm’s normal business operations. It is calculated as net income before depreciation and after income taxes, adjusted for working capital. It is a prime indicator of a company’s ability to generate enough cash to pay its bills. These numbers may be estimates. Capital Expenditure (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure represents funds used for investment in or improvement of physical assets such as offices, equipment or factories and the purchase or creation of new facilities and/or equipment. These numbers may be estimates. EBITDA (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure is an acronym for earnings before interest, taxes, depreciation and amortization. It represents a company's financial performance calculated as revenue minus expenses (excluding taxes, depreciation and interest), and is a prime indicator of profitability. These numbers may be estimates. Return on Assets % (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure is an indicator of the profitability of a company relative to its total assets. It is calculated by dividing annual net earnings by total assets. These numbers may be estimates. Return on Equity % (2016 or the latest fiscal year available to the editors, plus up to five previous years): This figure is a measurement of net income as a percentage of shareholders' equity. It is also called the rate of return on the ownership interest. It is a vital indicator of the quality of a company’s operations. These numbers may be estimates. Debt to Equity (2016 or the latest fiscal year available to the editors, plus up to five previous years): A ratio of the company’s long-term debt to its shareholders’ equity. This is an indicator of the overall financial leverage of the firm. These numbers may be estimates.

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Address: The firm’s full headquarters address, the headquarters telephone, plus toll-free and fax numbers where available. Also provided is the World Wide Web site address. Stock Ticker, Exchange: When available, the unique stock market symbol used to identify this firm’s common stock for trading and tracking purposes is indicated. Where appropriate, this field may contain “private” or “subsidiary” rather than a ticker symbol. If the firm is a publicly-held company headquartered outside of the U.S., its international ticker and exchange are given. Total Number of Employees: The approximate total number of employees, worldwide, as of the end of 2016 (or the latest data available to the editors). Parent Company: If the firm is a subsidiary, its parent company is listed. Salaries/Bonuses: (The following descriptions generally apply to U.S. employers only.) Highest Executive Salary: The highest executive salary paid, typically a 2016 amount (or the latest year available to the editors) and typically paid to the Chief Executive Officer. Highest Executive Bonus: The apparent bonus, if any, paid to the above person. Second Highest Executive Salary: The nexthighest executive salary paid, typically a 2016 amount (or the latest year available to the editors) and typically paid to the President or Chief Operating Officer. Second Highest Executive Bonus: The apparent bonus, if any, paid to the above person. Other Thoughts: Estimated Female Officers or Directors: It is difficult to obtain this information on an exact basis, and employers generally do not disclose the data in a public way. However, we have indicated what our best efforts reveal to be the apparent number of women who either are in the posts of corporate officers or sit on the board of directors. There is a wide variance from company to company. Hot Spot for Advancement for Women/Minorities: A “Y” in appropriate fields indicates “Yes.” These are firms that appear either to have posted a substantial number of women and/or minorities to high posts or that appear to have a good record of going out of their way to recruit, train, promote and retain women or minorities. (See the Index of Hot Spots For Women and Minorities in the back of the book.) This information may change frequently and can be difficult to obtain and verify. Consequently,

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the reader should use caution and conduct further investigation where appropriate. Glossary: A short list of green technology industry terms.

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Chapter 1 AN ANALYSIS OF MAJOR TRENDS AND TECHNOLOGIES AFFECTING THE GREEN TECHNOLOGY INDUSTRY Major Trends and Technologies Affecting the Green Technology Industry: 1) Introduction to the Green Technology Industry 2) Demand for Green Technologies and Conservation Practices Evolves, Fueling Investment and New Product Development 3) Water Conservation Technologies to Enjoy Tremendous Growth/China Targets Desalination 4) Recycling Flourishes/Gasification Technology Looks Promising 5) Food Waste on the Rise/Recycling Efforts Underway 6) Biomass, Waste-to-Energy, Waste Methane and Biofuels from Algae 7) Lighting Technologies and LEDs Conserve Energy and Offer New Product Development Potential 8) Smart Cities Utilize Big Data, Sensors and Advanced Technologies to Increase Efficiencies of All Kinds/Massive Business Opportunities Emerge 9) Packaging Technology Improves/Wal-Mart and Coca-Cola Boost Packaging Sustainability 10) Energy Intensity Is a Prime Focus in China/U.S. Achieves Dramatic Energy Intensity Results 11) Interest in Geoengineering Grows 12) Environmentalists Campaign for Chemical Industry Reform 13) Homes and Commercial Buildings Seek Green Certification

14) The “Internet of Things (IoT)” and M2M: Wireless Sensors to Boom, Aided by Nanotechnology 15) Major Research and Advancements in Lithium Batteries/Tesla and Panasonic Plan Gigafactory 16) Nanotechnology Sees Applications in Fuel Cells and Solar Power/Micro Fuel Cells to Power Mobile Devices 17) Fuel Cell and Hydrogen Power Research Continues/Fuel Cell Cars Enter Market 18) Fuel Efficiency Continues to Improve/Stiff MPG Standards Adopted in the U.S. (CAFE Rules) and Abroad 19) Car Sharing Programs Like Zipcar and Autolib, AKA Mobility Services, Proliferate 20) Electric Cars and Plug-in Hybrids (PHEVs) Enter Market in Low Numbers 21) Smart Electric Grid Technologies Are Adopted 22) The Energy Industry Invests in Storage Battery Technologies with an Eye on Distributed Power and Renewables 23) Superconductivity Provides Advanced Electricity Distribution Technology 24) Electric Utilities Adopt Coal Emissions Scrubbers While the Industry Tests Carbon Capture and Clean Coal Technologies 25) Bio-plastics Become a Reality/Plastic Packaging Made from Corn and Soy 26) New Display Technologies with PLEDs 27) Apparel Manufacturing Goes Green

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1)

Introduction to the Green Technology Industry

› Video Tip For our brief video introduction to the Green Technology industry, see www.plunkettresearch.com/video/greentech. The phrase “green technology” generally refers to the application of advanced systems and services to a wide variety of industry sectors in order to improve sustainability and efficiency. These improvements could include: reduction of waste, spoilage and shrinkage; improvement of energy efficiency and energy conservation; creation of systems that are energy self-sustaining; the reduction of carbon emissions; a reduction in toxic waste and the emission of toxic gasses such as volatile organic compounds (VOCs); creation of products that are biodegradable; enhancement of water conservation and water quality; and promotion of the reuse and recycling of materials of all types. Determining the size of the green technology market is difficult at best. A large number of companies, in a very wide variety of industries, deliver green tech products or services as at least a part of their total offerings, but the actual revenues are difficult to ascertain. Many small and startup companies are involved as well. Considered in the broadest possible terms for green tech activities, products and services of all types, Plunkett Research estimates the green tech sector to represent about 5% of global GDP for 2016, or approximately $3.78 trillion. The energy sector, in all of its many facets, is unquestionably a major part of the green tech field. Bloomberg New Energy Finance (BNEF) counted, as of 2015, more than 600 publicly-held companies worldwide in the clean energy value chain, with at least moderate corporate exposure to renewable energy or smart technologies. For 2015, the firm estimated global investment in clean energy at $328.9 billion, up from $315.9 billion in 2014. The application of green technologies, systems and practices need not be especially high tech in nature. For example, better design and engineering is creating packaging that is lighter in weight, more recyclable and less reliant on petrochemicals. This improved engineering is also leading both to products and their related packaging that have a smaller footprint—thus more units can be shipped in one shipping container, cutting down on the total amount

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of energy used in transporting a large volume of merchandise. The global consumer class (the “middle class” segment of the population—those with at least enough income to make a modest amount of discretionary purchases) is booming. The middle class grew from about 1.1 billion in 1980 to more than 2 billion today, and is expected by to soar to 5 billion as soon as 2030. This rapid expansion will put tremendous pressure on resources of all types, including energy, water, food, construction materials and industrial materials. Moreover, this soaring demand will put powerful upward pressure on prices, which, in turn, will make the cost of greener conservation and efficiency technologies increasingly easy to justify. In general, the technologies and related services in the “green” sector can be grouped into the following categories: Energy • Renewable and alternative energy production • Energy conservation (including more efficient buildings, processes, vehicles and other modes of transportation) • Energy storage Water • Water conservation (residential, industrial and agricultural) • Water recycling • Production of usable water from alternative sources, such as desalination Environmental and Pollution Devices and Services • Waste management, disposal and recycling • Toxic waste elimination, remediation • Emission control • Inspection, engineering, testing and consulting • Product and systems design and re-engineering Engineering, Architecture and Design • Product design • Industrial process improvement • Factory automation • Packaging • Heating and air conditioning efficiencies • Lighting efficiencies

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Other Resources • Recycling and conservation of metals, woods, paper, chemicals and plastics • Conservation of land, waterways and wildlife habitat Primary industry sectors targeted for the application of green technologies include: • Agriculture • Food processing and distribution • Oil and gas • Manufacturing and other industrial processes • Transportation, logistics and shipping • Automobiles and trucks • Construction, building operation and building maintenance • Power generation and distribution • Water systems • Retailing • Supply chains Green technology affects these sectors in a wide variety of ways. For example, the broad field of energy continues to produce transportation fuel and electricity in a largely traditional manner (from natural gas, coal and petroleum). At the same time, however, a very significant effort within the energy sector is focused on conservation and efficiency as well as the development of renewable energy sources. In fact, throughout the green technology field, conservation is where the low-hanging fruit lies. The easiest green solutions will be in better insulation in buildings; lighter materials in cars, trucks and airplanes; reduction of today’s massive leaks in municipal water systems; and better storage, in the emerging world, of agricultural products in order to reduce spoilage. Simply making efficiency, in materials and energy usage, a consideration in engineering and design of all types, is already having a dramatic effect on sustainability. For example, Wal-Mart, the world’s largest retailer by far, set a goal for its suppliers to reduce packaging on average by 5% from 2008 to 2013. At first glance, this may not sound like much, but the fact is that the amount of packaged products that flow through Wal-Mart in a given year, with its $470 billion+ in annual revenues, is so massive that 5% adds up to a tremendous amount. As part of this process, the company has created a sustainable packaging scorecard for more than 627,000 items that are sold in its stores and Sam’s

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Clubs. The scorecard evaluates the environmental attributes of packaging, and enables its suppliers to measure whether or not their packaging reduces energy consumption, cuts waste and fosters sustainability. The company even has an annual “Sustainable Packaging Expo” where its suppliers can meet with leading packaging manufacturers and designers to learn about the latest technologies and innovations. With its 6,000 long-haul trucks in the U.S., Wal-Mart has set a goal of doubling fleet efficiency from 2005 levels by the end of 2015. Long term, Wal-Mart has set a goal of being packaging-neutral by 2025. That is, the company plans to be recycling packaging and waste to the extent that it uses no more packaging materials than it creates. By 2013, the company was already 80% effective in this regard. Internet Research Tip: Wal-Mart, the world's largest retailer, has set dramatic goals for the application of the latest green technologies in packaging, energy and other areas. To see the results, go to: http://corporate.walmart.com/globalresponsibility/environmental-sustainability . Future answers to green challenges will be found in areas as diverse as highly efficient automobiles that virtually drive themselves, lighter aircraft bodies and changes in building materials. Convergence of multiple technologies (including nanotechnology, biotechnology, and information technologies, such as artificial intelligence and predictive analytics), along with the continuing advance of miniaturization, will guide these efforts. The electric utilities industry has told us for decades that it is a lot easier and cheaper to conserve electricity through the use of efficient industrial systems, buildings and appliances than it is to build more capacity to generate additional power. However, conservation is not an immediate fix; instead, it is a long-term evolution. For example, a few decades ago, one of the major expenders of energy in a typical American home was the gas pilot light, burning 24/7 on furnaces, cooking stoves and water heaters. Today’s appliances don’t have pilot lights; they have on-demand electric igniters, so that no gas is burned while the appliance is idle. Likewise, today’s refrigerators use about 75% less electricity than the refrigerators of 1975, while holding 20% more capacity, because they feature better insulation and more efficient cooling systems. Otis, a world leader in elevator design and

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manufacturing, recently introduced its Gen2 elevator, which uses up to 75% less electricity than previous models. These are good examples of wellengineered, extremely cost-effective reductions in energy usage, but such changes take time. We didn’t see old-technology refrigerators tossed out of all homes in America at once. The International Energy Agency (IEA) estimated that for 2015 alone, companies and government agencies in large nations invested $221 billion in energy efficiency. Energy conserved through the application of advanced appliances, technologies and methods may be referred to as “avoided energy.” A continuing result of widespread interest in reducing energy usage has been impressive growth in revenues at companies that provide goods and services that boost energy conservation. Ever since the dawn of the Industrial Revolution, factories have been burning such fuels as coal and natural gas to make steam, flame their furnaces and turn their engines, but historically they let the resulting excess heat escape through stacks. Now, with the concept of co-generation (or CHP, “combined heat and power”), this is less and less likely to be the case. In manufacturing plants, cogeneration is being widely applied as a simple, relatively low tech method to capture and reuse factory heat that is generated by industrial processes. That salvaged heat may be used in any of several ways to power a turbine that creates electricity. The electricity can then be used by the factory, sold to the grid, or both. Oil and gas fields are becoming much more efficient. For decades, oil fields flared off excess gas in brilliant, multi-story towers of flame, even in Alaska, relatively close to the lower 48 states’ gashungry consumers. Today, except in the remotest fields, that is less likely to happen, as investments have been made in gathering systems and pipelines to bring the gas to market. Meanwhile, advanced technologies and practices are enabling older fields to be productive for much longer periods of time, greatly increasing the total amount of oil and gas that each well will produce over a lifetime. Nanotechnology, an advanced materials science, is one of the most exciting technical breakthroughs in the world today. Throughout the energy arena, the list of potential applications for nanotechnology to enhance production, energy storage and conservation of all types continues to grow. For example, a lot of time and money is being invested in research using nanotube technology to create highly efficient electricity storage devices—essentially giant

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batteries. Success could bring a significant breakthrough for the solar and wind energy industries, where storage solutions are vital to making alternative power generation more viable. Cost-effective ways to store electricity would mean that wind power could be captured when the wind is blowing and utilized later, and solar power could likewise be banked. Applications of nanotechnology will include such areas as improved drilling (for instance, the ability to withstand harsh environments, high temperatures and the high pressures of deep wells), drilling fluids, “smart” drill bits, enhanced methods for downhole measurement and monitoring, long-lasting coatings and improved post-drilling water filtration. A NanoEnergy conference was held in Colorado in 2011, covering the use of nanotechnology in solar power, biofuels, water technologies and ultraefficient alternative energy production. A similar conference was held in London in February 2014. Tremendous strides in green technology are also being made throughout the transportation services and transport equipment industries. Lee Schipper, a Senior Engineer at the Precourt Energy Efficiency Center at Stanford University, pointed out that air transportation in developed countries today uses 50% to 60% less energy per passenger-kilometer travelled than it did in the early 1970s, and trucking uses 10% to 25% less fuel per ton-kilometer. Additional developments in transportation include the use of natural gas to fuel public transportation and the development of energy-efficient light rail. 2)

Demand for Green Technologies and Conservation Practices Evolves, Fueling Investment and New Product Development In recent years, the emphasis on, and financial support for, green technologies has come from three distinct directions: 1) citizens and their nonprofit organizations, 2) governments and 3) the corporate sector (including investment firms). In many cases, concerned citizens and their nonprofit organizations have been the earliest supporters of sustainability and green practices. This category includes people concerned about the environment and similar issues. Frequently, once organizations were established, lobbying of government agencies ensued along with organized funding of selected green projects. Examples of green initiatives that evolved in this manner include recent bans on plastic grocery bags in many communities.

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Next, mandates and funding emerged from government agencies. Through the years, as citizens became more interested in seeing green technologies developed and adopted, they influenced government at various levels. This occurred both at massive scale on the national government level (such as the Clean Air Act in the United States) and on state and local level (such as mandates that electric utilities serving a given state or city generate a certain amount of their power via renewable sources). Eventually, government began providing substantial economic incentives through tax credits, loan guarantees, subsidies and funding for research and development related to green technologies. A good example is hybrid and fully electric vehicles, as purchasers of these cars have been enjoying substantial tax breaks. In the United States, federal and many state governments have offered substantial tax credits and other incentives to people who chose to purchase electric or hybrid vehicles. At the same time, the federal government has provided both grants and loan guarantees for research and development as well as manufacturing in related sectors such as advanced automobile batteries and electric propulsion. U.S. federal support for green technology was allocated generously in the 2009 economic stimulus bill and later government actions. This support included broad authority for the Department of Energy to guarantee loans for renewable energy related companies, including the infamous $535 million loan guarantee for Solyndra, a failed solar technology firm. Government support for new solar and wind installations (considering loan guarantees, cash support of operations and mandates that utilities buy a certain percentage of their electric power from renewable means) was so generous that companies investing in new projects on a large scale often faced little to no risk—government support was virtually guaranteeing them a profit. Investment banks had a field day arranging financing packages for such projects, and many billions of dollars were involved. As government mandates for green technologies were issued, the venture capital community entered the fray in a big way.

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The Long Critical Path to Development of a new Green Technology • News media coverage, a nonprofit organization or the development of a potential new solution creates interest in a specific need or problem. • Government agencies are lobbied regarding this situation. • Government mandates are issued and/or government funding, loans, grants and incentives are established. This government action may support research and development, manufacturing or the actual purchase of new products and services by end users. • Venture capital backs entrepreneurs who want to develop products or services specific to the situation. • Big business gets on board where return on investment can be seen, where sustainability becomes a corporate focus or where businesses are forced to adopt new practices due to new regulations. • The best new technologies and practices eventually become financially self-sustaining. Source: Plunkett Research, Ltd. Tax credits from government and grants from non-profits cannot establish a viable, long-term green industry by themselves. True, long-term financial support for green technologies will eventually have to come from sales made to final buyers of goods and services. To put it another way, sustainability eventually must become self-sustaining on a financial basis. This is particularly true in today’s economic climate, where taxpayers worldwide are demanding more effective and efficient government programs and better management of government debt and expenditures (thus putting pressure on government to reduce grants, tax credits and other types of funding that might otherwise be seen as a blank check for the potential benefit of political insiders). There is growing evidence that a consumerdriven market for green tech is slowly taking shape. Today, giant corporations, among the biggest endusers of raw materials, products and services that might be more efficiently consumed through the application of green technologies, are likely to have their own sustainability departments or special executives in this area. For example, global software giant SAP AG has a “Chief Sustainability Officer.” Likewise, leading investment banks are developing experts in green tech. Goldman Sachs operates a “Clean Technology and Renewables Group.”

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As the return on investment from adopting green tech increases, such as the return on retrofitting older buildings so that they use considerably less energy in day-to-day operation, then businesses (and households) will see the logic in making investments in such technologies. As green technologies advance, and they are doing so at considerable speed in many sectors, and economies of scale kick in thanks to high-volume manufacturing, then it will become easier and easier for both businesses and household consumers to change their buying and capital investment habits to support green technologies. Put another way, high-efficiency light bulbs at $30 each are not very appealing to consumers, but bulbs at $2 that have considerably longer life and burn much less power than traditional bulbs would be relatively easy to sell, despite the fact that they would be much more expensive than traditional bulbs. Many manufacturers and services firms, both large and small, see great profit potential in positioning at least a part of their offerings around sustainability. General Electric, one of the world’s largest industrial companies, has its famous “Ecomagination” brand, a vast array of its products all aimed at better energy conservation or better green footprint. GE’s products in the Ecomagination line range from more efficient air conditioning systems to high efficiency lighting, advanced water treatment and desalination systems, and highly evolved energy management and control systems. In addition, GE is offering a growing line of medical equipment that uses less power, such as CT scanners, X-Ray systems and ultrasound devices. In transportation, its eco-friendlier products include efficient railroad locomotives. The firm publishes an annual report covering its Ecomagination initiative, and maintains a high level officer who is the VP of Ecomagination. GE states that it has generated more than $232 billion in revenues from Ecomagination products from 2005 through 2015. It also states that GE’s own operations have seen a 31% reduction in greenhouse gases. Internet Research Tip: For a fun look at GE’s view of sustainability in action, see: www.ecomagination.com. 3)

Water Conservation Technologies to Enjoy Tremendous Growth/China Targets Desalination While carbon typically gets most of the press coverage, water may offer the biggest single

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sustainability challenge of the near future. Water technologies will undoubtedly be one of the green tech sectors offering the biggest business opportunities. Not surprisingly, China is already targeting this sector aggressively, and over the midterm we are likely to see China develop a high-value, low-price product advantage in water technology, in the same way that they have recently done in solar cells. Israel, a highly competitive nation in software and computer fields, is also pursuing water technologies aggressively, due to its own local challenges. U.S.-based General Electric also has a serious focus on the potential of the water industry. GE states that it is managed to reduce its own freshwater usage by 45% since 2005, resulting in hundreds of millions of dollars in savings. The devastating drought suffered by Texas, California and other western states in recent years was a dramatic reminder of the looming demand for water technologies and conservation. The potential growth for demand looks very intense when you factor in global population growth, from 7+ billion today to as high as 10 billion by 2050, and the continuing rapid rise in global industrialization and the middle class. Agriculture is the biggest user of water by far (by some estimates accounting for more than 70% of all global water use), and much of the future of water technology lies in tools that will enable farmers to continue to allow their crops to flourish while reducing the total amount of water that they use. One of the most useful green technologies in this area will be advanced drip irrigation systems, delivering water exactly where it is needed in exactly the quantities required for healthy plants. Over the long term, remote wireless sensors will be used on the most advanced farms, gathering soil moisture and nutritional content data, and alerting monitoring systems as to when and where to send irrigation. Irrigation equipment was already something in the neighborhood of a $12 billion global market by 2016, and it will grow very rapidly as the demand for and cost of water rise. The UN estimates that global food output will have to increase by 70% by 2050 thanks to growth in population and rising household incomes that will increase discretionary food purchases. While advanced agricultural technology, known as “precision agriculture,” and genetically modified seeds (that produce much more crop output per acre, often with plants that are more tolerant of drought) offer the promise of filling this need, water efficiency must be enhanced or such increased crop production may be impossible.

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Industrial water (estimated to account for at least 15% of global water use) is also a critical issue, and a very promising field for water conservation and recycling technologies. As the price of water inevitably increases and strong demand ensues, business and industry will begin to place a strong focus on water conservation, in the same way that they have been placing a growing emphasis on energy conservation over the past several years. Also, municipal water systems, thanks to aging, leaking systems, are among the world’s biggest water wasters. Many of the water works in the world’s biggest cities are literally hundreds of years old and leak stunning amounts of water. The U.S. Environmental Protection Agency reports that the average American residence uses 100,000 gallons of water yearly, indoors and outdoors. Technologies for the detection and repair of city water system leaks will be in high demand. Not surprisingly, the biggest challenges from increased water use and restricted supply will arise in the world’s two most populous nations: India and China. Much of the answer will come from desalination of sea water. In fact, analysts at SBI Energy forecast that the global desalination technology market will soar to $50 billion per year by 2020. China has already set a goal of increasing its capacity for desalination by a factor of more than four from 2010 through 2020, from 680,000 cubic meters daily to 3 million cubic meters. China, seeing not only its own intensifying need for fresh water but also a growing global market, is likely to utilize the same tactics in the desalination sector that it did in solar cells. That is, China may provide support to manufacturers of desalination equipment via low cost loans, low cost land, investment by both local and national government, export subsidies and official research and development efforts from universities and government-sponsored institutes. As with other industries, most of the technology for China’s desalination is initially coming from other nations, such as Israel. Eventually, however, China will rely on domestic manufacturing for its desalination needs. Meanwhile, China is investing regionally in water conservation and other technologies. In the manufacturing center of Tianjin, for example, nearly 90% of industrial water is recycled, while more than 50% of farm irrigation is based on water-conserving technologies such as drip irrigation. The Coca-Cola Company, in addition to its charitable endeavors with regard to drinking water, pledged in 2007 to replenish, to the environment, the

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amount of water equal to its sales volume of soft drinks per year) by 2020. In mid-2015, the company reached its goal, achieving a balance of 191.9 billion liters of water used in finished beverages and also replenished in communities around the world. The energy industry is a big consumer of water. Electric generating plants require large amounts of cooling water, often from lakes. This means that electric generation could be dramatically hurt by drought. Fortunately, the latest types of gas electric generation plans (including “NGCC” combined cycle and “NGCT” combustion turbine) use dramatically less cooling water than coal steam turbine plants. The shift that is currently underway from coal plants to natural gas plants will have a significant and longterm effect on total water usage in this industry. The shift to gas is a direct result of lower gas prices caused by huge increases in gas production from gas wells in shale formations. Ironically, these shale gas wells utilize large amounts of water in the completion phases of the wells thanks to fracking. However, the drilling industry is moving toward recycling of this water. Meanwhile, a recent study by researchers at The University of Texas at Austin, as published in the journal Environmental Research Letters, found that the water saved by using the newer natural gas combined cycle electric plants relative to coal steam turbines is 25 to 50 times greater than the amount of water used in fracking to produce the gas at the well. 4)

Recycling Flourishes/Gasification Technology Looks Promising While the U.S. national average for reusing waste is only about 35%, according to the Organization for Economic Cooperation and Development, some cities have instituted programs, such as limiting trash pickup to every other week and consumer awareness initiatives that have boosted that percentage to much higher levels. In San Francisco, for example, an estimated nation-leading 80% of what is thrown away in the city is reused. The city is able to accomplish this through aggressive measures such as banning non-compostable plastic bags in supermarkets and pharmacies (starting in 2013, the ban applies to all retail stores, bakeries, shops and restaurants). Shoppers without their own reusable bags are charged 10 cents for each paper bag supplied by the retailer. A number of cities are following suit. More importantly, San Francisco tightly controls practices for disposal of both household and commercial trash. In 2009, the city adopted the Mandatory Recycling and Composting Ordinance, requiring homes and

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businesses to sort compostable organic matter and recyclable trash into special, color coded trash cans. Recycling efforts have been around in a major way since the 1970s, and over time have grown to include newspapers and cardboard, aluminum cans, glass and plastic bottles and other containers. Next on the recycling timeline came food scraps which some municipalities are collecting for composting, and unwanted consumer electronics such as out-ofdate personal computers. Future recycled items may include construction debris as a major category. The West Coast has led the U.S. recycling charge, especially due to its proximity to Asia, which is the world’s largest market for recycled paper and plastic. Some U.S. packaging manufacturers are picking up the tab for recycling their products in a practice already underway in Europe, Asia, Latin America and Canada. It benefits the manufacturers who need materials for production and eases the financial burden on municipality-owned recycling and waste programs. Meanwhile, the U.S. military has developed a new alternative to garbage incineration that promises fewer harmful incineration byproducts and lowers the need for transporting and burying waste. Plasma arc gasification breaks complex molecules into simple elements through extreme heat in excess of 9,000 degrees in an oxygen-poor chamber. The heat is produced by two graphite electrodes which produce an arc of electricity. Wood products disintegrate, plastics become gaseous and metal and glass melt. The gas from plastics is a mixture of hydrogen and carbon monoxide which can be used as synthetic gas (syngas). The molten slag left by glass and metal can be refined and used to make steel and other products, leaving contaminants that amount to about 1% of the total original waste. A small-scale, pilot plasma arc gasification system is in operation in a 6,400-square foot building at Hurlburt Field Air Force base in Florida. Run by a nonprofit, it is capable of producing about 350 kilowatts of electricity daily from 10 tons of garbage input per day, enough power to run the system on a self-sustaining basis. Similar technology, using a 25ton system created and owned by InEnTec (Waste Management, a massive, Texas-based waste disposal company in Texas, has a stake in InEnTec), is in operation at several locations in the U.S. and Japan. In yet another project, Fulcrum BioEnergy, a California firm focused on energy from waste, received a conditional $105 million loan from the U.S. Agriculture Department to build a larger system outside Reno, Nevada using InEnTec plasma melters.

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The system is planned to have a capacity to produce 11 million gallons of fuel per year. On a global basis, recycling rates are the highest in Austria, Germany and South Korea. Taiwan has also instituted sweeping recycling efforts that raised its recycling rate to 55% by 2016. The capital city of Taipei, for example, requires disposal of all nonrecyclable waste in blue plastic bags certified by the government at a cost of about three U.S. cents per bag. Taiwanese law requires citizens to separate trash into general refuse, recyclables and kitchen waste categories. Fines for not using certified trash bags or sorting trash are considerable. In addition, Taiwan has a government-operated fund financed by manufacturers and sellers of selected recyclable containers (such as plastic soda bottles) which subsidizes the country’s trash collection and recycling efforts. 5)

Food Waste on the Rise/Recycling Efforts Underway The Natural Resources Defense Council (NRDC) reports that Americans throw away about $165 billion worth of food each year. In a report issued by the nonprofit Waste and Resources Action Program (WRAP), food left uneaten on a global basis costs up to $400 billion per year. WRAP estimated that by 2030, consumer food waste could rise to $600 billion per year if there is not a widespread effort in conservation and recycling. The program estimates that reducing food waste by 20% by the year 2030 could save as much as $120 billion yearly. Food recycling programs are now required in Connecticut, Massachusetts and major urban centers such as New York in the U.S. where hospitals, supermarkets, university cafeterias and other wasteintense facilities must separate and recycle food scraps. The city of London instituted a Love Food Hate Waste initiative (www.lovefoodhatewaste.com), a five-year program that partners WRAP with community organizations, chefs, UK governments and businesses, trade bodies and local authorities to promote food recycling. The cost for instituting food recycling programs (which turn scraps into fertilizer or electricity) is high. Large scale commercial “digesters” are prohibitively expensive, and in some cases state governments are stepping in with subsidies. The state of Connecticut, for example, was offering $6 million in loans or grants for anaerobic digesters in 2014. In 2015, the state granted the first permit for a new anaerobic digestion facility to be built in Bridgeport.

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On a small scale, a company called BioHiTech offers a commercial bio-digester that’s about the size of a dishwasher. It is an easy-to-install, on-site digester in a self-contained, stainless steel unit. No chemicals are used, and it discharges to a standard sewer line. Even the firm’s smallest unit can digest up to 800 pounds of waste daily, fed continuously into the machine. The intent is to dramatically reduce the amount of waste that must be hauled away each day by using natural processes to reduce the materials fed into it. The machines are equipped with Intel processors and software, and are connected to the internet. Users track (via PC or a mobile app) how much waste is digested and identifies waste by its supplier. 6)

Biomass, Waste-to-Energy, Waste Methane and Biofuels from Algae Biomass energy is the term describing the conversion of certain types of organic material into usable energy, either by burning it directly or by harvesting combustible gases or liquids. In some cases, it can be referred to as “waste-to-energy,” because a common application is the burning of a city’s garbage or an industrial plant’s production scrap, such as wood chips or sawdust. Agricultural residues, such as rice straw, nutshells or wheat straw, are also useful as biomass fuels. Waste-to-energy plants have been in use in the U.S. for decades, frequently operating in tandem. A significant advantage of waste-to-energy is the fact that it reduces the amount of material placed in overburdened landfills. The production of ethanol or biodiesel is another way to utilize biomass to create fuel. Today, several factors are creating heightened interest in waste-to-energy. One of the most important aspects of generating electricity in this manner is the fact that burning garbage takes up a lot less space than compacting it in a landfill. Many municipalities are faced with severe restraints and high costs in their landfill operations. Also, industrial sites are extremely interested in capturing their on-site waste and excess heat as a way of generating electricity, sometimes referred to as cogeneration. In comparing landfill gas harvesting and waste incineration, a recent study by the Environmental Protection Agency (EPA), the Energy Information Administration and the DOE found incineration to be far more efficient. Incineration produces 590 kilowatt-hours of electricity per ton of waste compared to the 65 kilowatt-hours produced from landfill gas.

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Waste-to-energy plants have taken off in several countries in the EU, especially Denmark and Sweden. In fact, by 2014, Sweden was importing as much as 700,000 tons of waste from other countries to fuel its incinerators. In early 2015, the first new U.S. commercial garbage incinerator in 20 years opened in west Palm Beach, Florida at a cost of $670 million. Similar facilities are under consideration in other U.S. states including Massachusetts, Nevada, Virginia and Oglethorpe Power near Atlanta cancelled two 100-megawatt waste-to-energy plants that were to be completed in 2014 and 2015 respectively. Instead, it invested in two natural gas-fired plants near Dalton, Georgia. This trend may accelerate due to today’s extremely low cost of natural gas thanks to abundant shale gas production. Quantities of waste, such as sewage, manure heaps at feedlots and the garbage filling landfills, create large amounts of methane gas as they decompose. One form of biomass energy generation that utilizes this phenomenon has been affectionately named “cow power.” In this method of energy production, cow manure is placed in a holding tank, where it is heated to around 100 degrees Fahrenheit. This allows naturally occurring bacteria to break down the material, releasing methane, which is collected and burned in a generator. By this method, the manure from one cow can produce about 1,200 kilowatt-hours per year, meaning ten cows can power an average American house. Not only can cow power produce electricity, it can also be used to produce high quality (and noticeably less smelly) fertilizer. Though it has been around for decades, cow power has not seen serious interest until recently. It has grown much more efficient over the years, and cheaper to boot. Both California and Vermont have launched assistance programs to help farmers pay for the systems. A leading waste disposal firm, Waste Management, Inc., is capitalizing on waste methane at a handful of the numerous landfills that it operates. For example, working with energy management firm Ameresco, it is providing waste methane energy to a BMW automobile plant in Spartanburg, South Carolina via a pipeline to a landfill ten miles away. Of the approximately 1,900 landfills in the U.S. as of August 2014, about 636 collect methane gas for energy use according to the EPA. On August 14, 2015, the EPA issued a supplemental proposal to achieve additional reductions of methane-rich landfill gas from new, modified and reconstructed municipal solid waste landfills (the EPA also proposed

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guidelines for reducing emissions from existing landfills in a separate action). Both bioethanol and biodiesel are considered to be biomass energy sources. Many types of organic fats are currently used worldwide to make biodiesel, including soybean oil, grapeseed oil (the same oil that is commonly sold as canola), palm oil and beef tallow. Unfortunately, the refining of biodiesel is not a sure way to profits. Costs of capital investment are high, and feedstocks, particularly vegetable oils, can be extremely expensive. From an environmental impact point-of-view, salvaging chicken fat from a meat packing plant to use in fuels may be reasonably efficient. However, dramatically altering the usage of vast swaths of land to grow plants, such as corn, for fuel is another matter. Land displacement for biofuel use has turned into a global problem and a huge controversy. Farmers from the Americas to Brazil to Indonesia have been converting land that was previously used for food agriculture into acreage used for biofuel plant growth. At the same time, farmers elsewhere have been incentivized by high demand in the marketplace to destroy rain forest, woodlands or open plains in order to plant food crops to take up the slack in the market, or to plant high-value plants for biodiesel or bioethanol feedstock. When woodlands or prairies are cleared and burned to make way for crops, vast amounts of carbon are released into the atmosphere. Among the biggest culprits are farmers clearing rain forest in Indonesia in order to plant palms for the harvesting of palm oil for biodiesel, and those clearing rain forest in Brazil for planting of soy for biodiesel. (Clearing grassland in the U.S. in order to plant corn for bioethanol is another problem.) Studies found that these activities create immense carbon emission problems, which may be far in excess of any carbon saved over the short term by burning a plant-based fuel as opposed to a petroleum-based fuel in cars and trucks. Alternative biofuel technologies are being developed by several firms. For example, Joule Unlimited Technologies, Inc.’s (www.jouleunlimited.com) Helioculture and Sun Springs platforms utilize proprietary, engineered photosynthetic microorganisms to produce diesel, ethanol and multiple chemicals without using biomass feedstocks, arable land or fresh water. These water-based organisms create their own food through photosynthesis when exposed to sunlight. Unlike algae, which must be harvested and processed to create hydrocarbons, Joule’s organisms release

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fuels continuously which can easily be converted to the desired form. The firm can directly produce up to 15,000 gallons of diesel fuel and 25,000 gallons of ethanol per acre at costs as low as $20 per barrel of equivalent of diesel and 60 cents per gallon of ethanol. As for the use of algae to produce crude oil, Sapphire Energy (www.sapphireenergy.com) completed a large-scale farm on 2,200 acres in New Mexico. The $60 million project includes an array of 70 ponds, each about 100 yards wide, and a refinery. Algae grows quickly (usually in about five days) in salty water, and is then skimmed and put through a wet extraction to separate the oil that builds in algae cells when its exposed to sunlight and CO2. Sapphire Energy hopes to produce as much as 100 barrels of oil per day at the New Mexico site. The recent plummet in the price of crude oil and natural gas has made it much more difficult for these alternative oil production methods to be financially viable. Some are looking for uses for their oils that lie outside of transportation fuels. For example, San Francisco-based Solazyme launched, in October 2015, a cooking oil produced via algae, that it states has a light, clean taste. In mid-2015, United Airlines invested $30 million in Fulcrum BioEnergy, a producer of aviation biofuel. At the same time, United made a flight from Los Angeles to San Francisco using biofuel only, a first in the U.S. Cathay Pacific has also invested in Fulcrum. Airlines around the world are under increasing pressure to reduce carbon emissions. SPOTLIGHT: FastOx Pathfinder Sierra Energy (www.sierraenergycorp.com) has tested a waste-to-energy system called the FastOx Pathfinder that already has a $3 million contract from the U.S. Defense Department. The system is based on a modified blast furnace that heats almost any kind of trash to extreme temperatures without combustion. The resulting materials include hydrogen and synthetic natural gas that can be utilized for making ethanol or diesel fuel, or can be burned for electricity. 7)

Lighting Technologies and LEDs Conserve Energy and Offer New Product Development Potential One of the easiest targets for green technology advancement is in lighting. It is universal, it is essential and it burns a lot of electricity. LED (light emitting diode) lights can be vastly more power

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efficient that traditional bulbs (incandescent bulbs and fluorescent tubes). LED is clearly a leading lighting technology for the long term. Lighting is found in everything from residential and commercial buildings to roadways, signs, medical equipment and automobiles, burning as much as 25% of the world’s electric output. Residential lighting is the largest use. Unfortunately, traditional bulbs give off a lot of heat that is often unwanted, in addition to burning a lot of power. Lighting is selected by consumers based on multiple factors, including initial cost, light intensity, color or quality of light, and other aesthetic effects. Energy efficiency and life of the bulb are also factors. The challenge for the light bulb industry is to ramp up enough economy of scale in manufacturing to bring LED prices to levels where consumers will find it generally acceptable to pay somewhat more for bulbs that last longer and use less power. Today, LED lighting prices are much more affordable than they were in their early days. Meanwhile, quality of light will remain a critical factor for consumers, especially among Baby Boomers who require better light in order to read and see well as their eyes age.

other than bulbs. New products that turn lights on and off when people enter or leave a room, new types of fixtures that make the most of the output of advanced bulbs such as LEDs and similar items are finding success in the marketplace. A company called Sensity Systems offers what it calls “smart lighting networks.” Its “NetSense” platform equips outdoor LED lighting fixtures, such as parking lot lights, with sensors and Wi-Fi networking. The embedded sensors can track, count and analyze parking lot traffic; control the energy-efficient LED lights, turning them on only when required by the presence of traffic; analyze real-time video for improved security and extend Wi-Fi access to people while they are in parking lots. Sensity Systems was acquired by Verizon Communications, Inc. in September 2016. GE announced that it would introduce an Internet-connected light bulb that would be appropriate to work with home automation systems. Other leading lighting brands are similarly innovating their light bulb lines, with a particular interest to adopt LED and Internet-of-Things (IoT) technologies.

SPOTLIGHT: Innovative LEDs from Cree, Inc. LED maker Cree, Inc. (www.cree.com) began as a manufacturer of components that it sold to other LED bulb firms. Then Cree added its own bulbs, while it has also become a leading maker of semiconductor products for use in power inverters and other power and radio-frequency systems. Cree's unique technology manufactures LEDs on silicon carbide wafers. It is thus able to produce more light from an LED than its competitors that utilize sapphire substrates instead of silicon carbide. Cree has captured a significant portion of the U.S. LED market. Its products are sold at mass retailers.

Light Bulb Comparison:

Meanwhile, the U.S. and some other nations have set regulations requiring a gradual increase in the efficiency of bulbs. Less efficient, incandescent bulbs may eventually be outlawed in many nations. As a result, the National Electrical Manufacturers Association estimates that U.S. energy savings could eventually reach $10 to $15 billion yearly. Some manufacturers have shifted to offering bulbs that are based on halogen or LED technology and shaped like normal bulbs. They are more energy efficient, and are only slightly more expensive to purchase. Firms seeking to offer innovative products for the lighting marketplace have many avenues to pursue

Traditional 60-watt incandescent bulb • Uses 60 watts of electricity. • Creates unwanted heat. • Lasts about 1,000 hours. • Creates high quality light. LED (Light Emitting Diode) • Uses 10 to 12 watts of electricity. • Burns in a cooler manner. • Lasts up to 25,000 hours—extremely cost-effective over the long term. • Creates high quality light. CFL (Compact Fluorescent Light) • Uses 14 watts of electricity. • Burns in a cool manner. • Lasts 6,000 hours. • Creates light that consumers do not like, but quality may be improving. Halogen Bulb • Uses about 45 watts of electricity. • Creates high heat. • Lasts about 1,000 hours. • Creates high quality light.

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8)

Smart Cities Utilize Big Data, Sensors and Advanced Technologies to Increase Efficiencies of All Kinds/ Massive Business Opportunities Emerge A growing number of cities around the world are investing in sensors, software and networks that monitor everything from noise, to traffic, to air quality, to crowd movement. These “smart cities” analyze reams of data and adjust a wide variety of services to maximize efficiency and minimize waste in a number of sectors including energy (such as street lighting), infrastructure, transportation, mobility and architecture/construction. For example, networks of embedded sensors are reducing energy consumption by street lights and traffic signals. The city of Copenhagen led the way with a cutting edge wireless network of streetlamps and sensors. Bike lanes are marked with embedded green lights that sense oncoming cyclists and illuminate long enough for riders to be safely through (called the “Green Wave”). LED streetlights brighten as vehicles approach and then dim when traffic passes. Smartphone apps alert drivers to light changes to ease congestion. Other cities and communities are following suit. Los Angeles is switching to outdoor LED lighting with traffic sensors that detect congestion and synchronize signals. In Barcelona, sensors alert garbage collectors only when trash containers are full. Parking-space sensors transmit data to drivers via smartphone apps as to where available spaces are, reducing the need to spend time and fuel looking for spots. Barcelona’s bus service has been updated to run on a more efficient route structure, increasing ridership 30% in four years. Monitors in street lights respond to cloud cover and also track noise and crowd movement, even alerting police to crowds when necessary. The city of Boston has instituted similar sensors, while Hamburg’s port computerized its loading systems to streamline offloading and reduce traffic jams. Singapore is also deploying sensors for virtual mapping, vehicle tracking, crowd measurement and the level of cleanliness in public places. ABI Research expected the value of global smart cities projects to reach $39.5 billion in 2016. McKinsey Global reported that by 2025, cities that adopt such smart technologies will save up to $1.7 trillion per year on all city services. Sensor manufacturers, software companies and data analysis firms, including IBM, Cisco and Microsoft, are rushing to get in on the smart city bonanza.

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According to Navigant, by 2023, technology companies will bring in $27.5 billion per year in revenue from smart city technologies. Top technology firms like Google and its parent firm called Alphabet are well aware of the business potential from these trends. Alphabet has a subsidiary called Sidewalk Labs that is working closely with U.S. cities to develop cutting edge, technology based services that can ease car and truck traffic congestion, improve pedestrian flow and make cities safer and more enjoyable. In this regard, Sidewalk Labs has developed a software platform called Flow aimed at diagnosing traffic patterns and avoiding congestion. The U.S. Department of Transportation launched, in December 2015, an initiative called Smart City Challenge, wherein it will grant $40 million to the city that submits the best proposal for implementation of smart city technologies within a given locale. By early 2016, seven finalists had been selected. Sidewalk Labs planned to work with the finalists to refine their proposals. This will be a joint learning exercise that will help Sidewalk Labs better understand the goals of the cities, and will help the cities to better understand the potential of traffic analysis sensors and software. In October 2016, the Department of Transportation announced $65 million in grants to support advanced community driven transportation projects in four of the seven finalist cities. 9)

Packaging Technology Improves/ Wal-Mart and Coca-Cola Boost Packaging Sustainability There are several very significant reasons why industry sectors of all types are focusing on improvements to packaging as a path to sustainability. To begin with, in the U.S., packaging accounts for about one-fourth of all material sent to landfills. Packaging is often both bulky and heavy. If packaging can be reduced in weight, then it saves in total shipping costs. Better still, if it can be reduced in both weight and dimensional size, then more items can be packed in one container, and the total shipping cost can be reduced dramatically. Once the item arrives in the warehouse or retail store, smaller size means that more items can be stored per shelf—yet another efficiency. Finally, packaging can be expensive, and it often represents a fairly high percentage of the total cost of manufacturing and distributing an item. Packaging may involve plastics, aluminum or paper, all of which are subject to fluctuations in basic commodity

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costs. Simply put, reducing the amount of packaging used saves costs and increases sustainability. Today’s rapid changes in packaging are having a significant impact on a wide range of industries, from chemicals and plastics to transportation, food processing and retailing. The Coca-Cola Company, owners of one of the world’s most recognized brands and a global leader in the beverages business, published a report titled “Creating Sustainable Packaging.” The report describes its efforts to reduce waste in packaging. When you consider the millions of glass bottles, plastic bottles and aluminum cans involved in delivering Coca-Cola drinks to customers worldwide, not to mention the related cardboard and plastic packages that go with them, the numbers involved can be extremely significant—24.4 billion unit cases of beverages in one year. Also, a reduction in such waste could have a dramatic effect on the firm’s bottom line. Part of the firm’s effort has been focused on plastics, as more than 50% of its beverage volume is shipped in PET (polyethylene teraphthalate) plastic bottles. Coca-Cola uses what it calls the “PlantBottle” PET package, which is a recyclable drink bottle made partly (about 30%) from plantbased ethanol instead of oil-based PET. While much of the food industry’s packaging of this type has been based on the use of ethanol from food-crop plants such as sugarcane, in the future they may be able to utilize agricultural waste instead. By 2020, Coca-Cola plans for all of its plastic containers to meet its 30% plant-based content goal. Competitor PepsiCo is also very active in this regard. Companies active in using plant material to make beverage containers include Virent, a Wisconsinbased firm owned partly by Cargill, Shell and Honda, as well as Gevo and Avantium. In 2015, Virent produced the first demonstration-scale, recyclable plastic bottle made entirely from plant-based materials. Glass bottles and containers are also making a comeback. In response to consumer concerns about toxins from plastic packaging seeping into food and drinks, a number of manufacturers are using more glass containers. Coco-Cola is expanding its distribution of several soft drink brands in eightounce glass bottles while S.C. Johnson’s Ziploc brand offers VersaGlass containers that can be used in the freezer, microwave and (without lids) heated up to 400 degrees in ovens. Meanwhile, a Canadian company called Precidio Design, Inc. is producing glass bottles encased in a clear coating called Multi

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Flask. It protects the glass, provides insulation and also includes inserts such as infusers, agitators and sports tops for multiple uses (multiflasking.com). Another issue with regard to packaging is the waste incurred when all of a product cannot be extracted easily from its container. Consumer Reports found that up to 25% of skin lotion, 16% of laundry detergent and 15% of condiments such as mustard and ketchup get stuck in their containers and are thrown away. Enter LiquiGlide, a company that manufactures a coating that makes the inside of bottles and other containers slick, so that contents are easily squeezed or poured out. In early 2015, the company announced that Elmer’s Products, Inc. had signed an exclusive licensing agreement for the coating for its glue containers. Internet Research Tip: Coca-Cola For an in-depth look at global soft drinks firm Coca-Cola's sustainability efforts, see: www.cocacolacompany.com/topics/sustainability . Wal-Mart has been a world leader in recognizing the potential good that can be done by reducing packaging, and it is working closely with suppliers for innovative solutions to packaging challenges. As the world’s largest retailer, progress made at WalMart makes a significant difference, while setting a standard that is often adopted across an entire industry or product category. Wal-Mart, with massive annual revenues, has nearly irresistible power as a purchaser because of the sheer volume of merchandise that it buys each year. Consequently, when the firm tells its supplier base of 100,000 firms that it wants to boost sustainability, things happen on a scale that can’t be topped by any other for-profit organization. Starting in 2005, Wal-Mart set three long-term goals: to be 100% supplied by renewable energy; to eliminate waste from its system; and to create a more sustainable supply chain. As of mid-2015, the retailer was getting 26% of its electricity from renewable sources and was operating with 9% less energy intensity than in 2010. About 1,300 of its suppliers used its Sustainability Index, and, by the end of 2015, the firm had eliminated 20 million metric tons of greenhouse-gas emissions from its supply chain. Sometimes the most obvious, and easiest to implement, green tech and sustainability projects can have the biggest effect. Wal-Mart’s determination to change the way that laundry detergent is packaged is a perfect example. Liquid laundry detergent has long

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been extremely popular among consumers. For years, it was sold in giant plastic bottles in watereddown form. When using it, the consumer poured a large cupful into the washing machine, not realizing that much of what was in that cup was water. These laundry bottles were bulky, awkward and heavy. Nonetheless, that was the industry standard. Selling concentrated detergent instead, eliminating much of the water from the bottle, was of such obvious potential benefit that it had been tried occasionally by the detergent industry. However, consumers shunned the smaller bottles—since they were smaller but priced the same as large bottles, consumers assumed they represented bad value. Concentrated detergents always flopped. Then Wal-Mart came along, with its unbeatable ability to change the way both manufacturers and consumers act. Once Wal-Mart decided to push the smaller laundry bottles, it gave the new products prime end-cap shelf space. Methods were developed to emphasize the products’ benefits to customers. Unilever, a leading detergent maker working closely with Wal-Mart, printed graphics on detergent labels showing how the new small bottles equaled the same number of wash loads as the detergent contained in the old, larger bottles. Television talk shows were enlisted to help spread the word. By 2008, Wal-Mart sold only concentrated versions of liquid detergent in its stores. The company had changed an entire industry with one idea, as concentrated detergent was quickly on sale throughout the retail world. Consumers understood, benefitted from and accepted the change. Sustainability was boosted significantly. Smaller, lighter bottles times thousands of Wal-Mart stores meant immense savings in packaging, cardboard cases to hold the bottles and freight. Over a three-year period, Wal-Mart estimated that the changes saved 125 million pounds of cardboard cartons, 95 million pounds of plastic resin and 400 million gallons of water, along with 500,000 gallons of diesel fuel that would have been used in the shipping process. The new detergent coincided with the rapid adoption of a new, front-loading design in washing machines. These front loaders, very popular with consumers, work best with concentrated liquid detergents designated “HE” (high efficiency) that produce fewer suds during the wash. The HE detergents are also formulated to work perfectly in cold water. In the past, the primary energy usage during the operation of a clothes washing machine was for the heating of water. By working well in cold water, HE detergents enable a dramatic

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reduction in the use of energy for washing a family’s laundry. A lot of money will be made over the mid-term by companies that create innovative solutions to packaging needs. This will range from shipping pallets made of plastic or treated paper instead of today’s wooden slats, to packaging that incorporates nanotechnology to make it especially effective, strong or light. New packaging shapes, boxes and bottles that are easier and cheaper to manufacture, and the ease of recycling will then prevail as well. The packaging industry will work very closely with product manufacturers as always, but they will also begin to work more closely with shipping and thirdparty logistics services firms to provide comprehensive, systemic solutions and innovations. 10) Energy Intensity Is a Prime Focus in China/U.S. Achieves Dramatic Energy Intensity Results In a global sense, energy efficiency may advance at the creeping pace of a turtle, but over the years the compounding results are exceptional. “Energy intensity” refers to the amount of energy required for a nation to produce a unit of GDP (gross domestic product—a basic measure of economic output). A nation’s goal should be to make intensity as low as possible. In constant dollars (adjusted for inflation and expressed as year 2005 dollars), the U.S. economy grew from $1.84 trillion in GDP in 1949 to $13.3 trillion in 2008—an increase of 623%. During the same period, America’s annual energy consumption rose from 31.98 quadrillion BTU to 99.4 quadrillion BTU—an increase of only 210%. Energy consumption per dollar of GDP (on the same constant, year 2005-dollar basis) dropped from 17.34 thousand BTU to 7.47 thousand BTU. In other words, after removing any distortion caused by inflation, America required only 43.5% as much energy to create a dollar of economic output in 2008 as it required shortly after the close of World War II, while America’s energy intensity improved by a factor of 2.29 times. A table of this progress, as published by the U.S. Energy Information Administration (EIA), shows steady improvements in energy intensity, year by year, for the past 60 years. According to the EIA’s Annual Energy Outlook 2015, “…electricity consumption will increase at an average annual rate of 0.8% from 2013 to 2040, nearly in line with expected population growth. Continuing a recent trend toward lower levels of carbon-intensive generation, natural gas and

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renewable generation meet almost all of the increase.” This drop in energy used per unit of economic output is not limited to America by any means, but is more of a global phenomenon. China, the world’s largest consumer of energy and a major concern in terms of pollution and emissions, is showing steady improvement, cutting its energy intensity by about 50% from 1980 through 2004. Its five-year plan for 2011 through 2015 resulted in a 18.2% improvement in energy intensity. China is clearly focusing both government investment and regulation on reducing energy consumption per GDP while improving its infamous air and water pollution problems. It’s next five-year plan for 2016 through 2020 calls for further energy intensity improvement of 15%. In recent years, annual growth in energy usage has slowed in developed nations such as those in the EU, along with Canada, Australia, the U.S. and others, while efficiency has soared. The challenge is to make efficient technologies inexpensive, widespread and readily adoptable in emerging nations. This is especially important in light of the fact that there will be big increases in the total demand for energy as the world’s middle classes grow and emerging nations become more industrial. The EIA projects global demand for energy to balloon from 549 quadrillion BTU in 2012 to 629 quadrillion BTU in 2020 and 815 quadrillion BTU in 2040. This is a 48% long-term increase. Most of the increased energy use will occur in emerging nations, particularly India and China. Accelerating improvements in energy and conservation technologies will be at work to an increasing degree, reducing total demand, lessening the impact of emissions and greatly boosting efficiency. This is a massive market opportunity for innovative firms that develop significant technologies and services in this regard. 11) Interest in Geoengineering Grows Geoengineering may sound like science fiction to some, but it is attracting brilliant minds and serious money. For example, a firm called Intellectual Ventures, co-founded by Microsoft’s Bill Gates, is sponsoring geoengineering research. This unique branch of technology is generally focused on using man’s ingenuity to improve the climate in general, specific weather conditions or air quality on a grand scale. To a large degree, such research is focused on using new practices to reduce the amount of carbon dioxide (CO2) in the atmosphere.

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Over recent years, scientists and engineers have proposed several potential methods for reducing the greenhouse gas effect, cooling the Earth’s temperature, increasing rainfall, decreasing hurricanes or otherwise reengineering the planet. For example, many methods of deflecting solar rays from the Earth, and thus reducing the Earth’s temperature, have been proposed. Suggested methods include sending light-reflecting particles of various types or a vast mist of seawater into the upper atmosphere, reflecting sunlight away before it has an opportunity to cause heat on the ground below. Much of today’s well-funded geoengineering research is focused on capturing CO2 from the air, regardless of whether that CO2 was the result of industrial processes, electric power generation or transportation. This is serious business for many reasons. The U.S. Department of Energy (DOE) recently announced $2.3 billion in funding for research and technology in capturing carbon from the air. CO2 has real value of its own, as it is commonly used in a wide variety of industrial and energy applications. For example, injecting CO2 into an oil well is a widely accepted method for enhancing recovery of oil reserves. Recently, several startups have been founded that focus on feeding CO2 to algae as a nutrient. The algae produce a natural oil in abundance that can be refined into fuel for transportation. CO2 is also used to make sodas (carbonated drinks) bubble. One of the leading firms in this effort is a Canadian company, Carbon Engineering, Ltd. (CE). Its focus is on cost effective, industrial scale, aircapture technologies, including in-house engineering, laboratory work, and pilot research in tandem with outsourced design and testing performed by engineering firms and vendors. In November 2015, the final segment of its test facility was completed. Parts of the test plant have been operating in mid2015. The plant, about 40 miles north of Vancouver, uses a powerful fan to distribute air across plastic sheets that have been soaked with lye. The sheets capture carbon dioxide for processing. CE has an in-house group of full-time engineers, chemists, and physicists. The team is boosted by a handful of part-time senior engineers with expertise in areas of particular importance to CE who are retained on long-term consulting contracts. All of CE’s R&D activities are undertaken in partnership with leading engineering firms and equipment vendors, and with industrial or academic consultants. Incorporated in 2009 and privately owned, CE is

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funded by angel investors including Bill Gates and N. Murray Edwards, a wealthy oil and gas man. CE grew from academic work conducted on carbon management technologies by Professor David Keith’s research groups at the University of Calgary and Carnegie Mellon University. More recently, Dr. Keith joined the school of Engineering and the Kennedy School of Government at Harvard, where he is studying the potential of scattering small amounts of sulfur into the Earth’s upper atmosphere to deflect heat. Today’s pioneers in carbon air capture are relying on various uses of sorbents that naturally absorb CO2. Their goal is to repurpose that CO2 as something useful and hopefully lucrative. For some technologies, such as those offered by Global Thermostat, a carbon air capture facility might be located near a coal-burning electric generating plant. Other technologies are less location-dependent for the capture process. However, all of the competing technologies would be most efficient if they were near some sort of facility with high demand for CO2. In other words, they might best be sited in an older oil field where injection of huge amounts of CO2 into wells would increase production. Likewise, they would do well sited near one of the algae-to-fuel plants that depend on CO2 to feed the algae. A leading pioneer in this oil-growing algae field is a firm called Synthetic Genomics, founded by biotech innovator J. Craig Venter, and backed with hundreds of millions of dollars from ExxonMobil. Dutch geochemist Olaf Schuiling of the University of Utrecht is studying an abundant greentinted mineral called olivine, which, when exposed to the elements, slowly absorbs CO2 from the atmosphere. Schuiling contends that spreading crushed olivine throughout as much of the Earth as possible (think fields, beaches, pathways, bridges) would retard global warming. In early 2015, a U.S. National Academy of Science panel recommended increasing research in geoengineering. Specifically, the panel called for more outdoor small-scale experiments to better understand how geoengineering may work. Companies Active in Geoengineering for CO2 Capture: Carbon Engineering, www.carbonengineering.com, is based in Calgary, Canada. Global Thermostat, www.globalthermostat.com , is also based in New York City.

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12) Environmentalists Campaign for Chemical Industry Reform Concern for the environment is nothing new, yet decisions affecting the chemical sector are making headlines. Microsoft curtailed its use of polyvinyl chloride (PVC), also known as vinyl, for computer packaging products. Other companies cutting their use of PVC include Wal-Mart Stores and Kaiser Permanente. Another potentially harmful chemical is bisphenol-a, or BPA. Some animal studies have linked BPA to hormonal changes. The Canadian government was the first to declare it toxic. A number of Canada’s retailers, including Wal-Mart Canada, had previously banned food-related containers such as baby bottles, sipping cups and other plastic holders made with the plastic. Environmentalists and health advocates claim that PVC is dangerous because it releases dioxins, which potentially cause cancer. Elements in PVC called phthalates are also suspected of causing reproductive disorders. This is a blow to the vinyl producers in the world, which make 16 billion pounds of the plastic per year, amounting to more than $6 billion in sales, according to the Vinyl Institute. Concerns are also increasing about plastic waste in such products as bottled water. In response, bottlers such as PepsiCo are using less plastic in their packaging. PepsiCo’s Aquafina brand is being sold in bottles that are about 20% less in weight. The U.S. division of Nestlé SA first lightened its plastic bottles as early as 2007, while Coca-Cola continues to produce lighter and lighter bottles for its Dasani brand. Coca-Cola also increased its distribution of several soft drink brands in eight-ounce glass bottles in response to concerns about toxins in plastic bottles. In the European Union, a proposal known as REACH (Registration, Evaluation and Authorization of Chemicals) requires chemical producers to test their products for hazardous substances and submit test results to a central EU chemicals agency in Finland. REACH became a reality on June 1, 2007 with the establishment of the European Chemicals Agency (ECHA). Supporters hope to curb the production and importation of hazardous chemicals in Europe, while detractors voice concerns about the burden placed on businesses to carry out the testing. Countries outside the EU (which include the U.S., Australia, Brazil, India and Japan among others) are wary of the initiative as it may hinder trade, and call for the alignment of REACH requirements with test guidelines issued by the Organisation for Economic Co-operation and Development (OECD), a group of

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35 member countries that produces internationally agreed instruments decisions and recommendations on economic and social issues. In the U.S., the Frank R. Lautenberg Chemical Safety for the 21st Century Act was signed into law in June 2016. The law requires the EPA to evaluate existing chemicals with clear and enforceable deadlines; a new rick-based safety standard; increased public transparency for chemical information; and a consistent source of funding for the EPA to carry out the responsibilities under the new law. Protests against chemicals plants in China have been growing over the past decade. In early 2009, environmentalists won a rare skirmish against the chemicals industry in China. The site for a proposed $3.6 billion plant outside Zhangzhou was moved 60 miles to spare the 1.5 million residents of the nearby port city of Xiamen from toxic fumes generated by the production of paraxylene, a petrochemical used in making polyester and cleaning agents. In August 2011, a chemical factory in the Chinese port city of Dalian was shut down after thousands of protesters confronted riot police over plant safety concerns. 13) Homes and Commercial Buildings Seek Green Certification In a growing trend, many homebuilders across the U.S. are constructing homes in accordance with the National Association of Home Builders’ (NAHB) “green” specifications. The NAHB’s green specifications require resource-efficient design, construction and operation, focusing on environmentally friendly materials. An effort to save energy and reduce waste is spurring this trend. In addition, local building codes in many cities, such as Houston, Texas, are requiring that greater energy efficiency be incorporated in designs before a building permit will be issued. There are several advantages to building along eco-sensitive lines. Lower operating costs are incurred because buildings built with highly energyefficient components have superior insulation and require less heating and/or cooling. These practices include the use of oriented strand board instead of plywood; vinyl and fiber-cement sidings instead of wood products; and well insulated foundations, windows and doors. Heating and cooling equipment with greater efficiency is being installed, as well as dishwashers, refrigerators and washing machines that use between 40% and 70% less energy than their 1970s counterparts. Some builders are opting for high efficiency geothermal heating and cooling,

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while some home and building owners want solar electricity generation. In addition to energy concerns, plumbing and water efficiency are vital goals in green buildings. This trend will accelerate due to deep concerns about the availability of water in populous regions ranging from California to China. Wastewater heat recovery systems use wastewater to heat incoming water. Toilets are more efficient. Current models use a mere 1.28 gallons of water per flush, as opposed to four gallons in the 70’s. Landscaping is likewise being designed for much lower water usage. The U.S. Environmental Protection Agency (EPA) established the WaterSense certification, a voluntary program to promote water-efficient products and services. For example, WaterSense certifies low-flow toilets that use a mere 1.28 gallons per flush, creates standards for bathroom-sink faucets that flow at no more than 1.5 gallons per minute and offers a certification program for irrigation companies that use water-efficient practices. The main disadvantage is that green building is more expensive than traditional construction methods. Added building costs often reach 10% to 20% and more per home; however, some homebuyers are willing to pay the increased price for future savings on utilities and maintenance. As energy prices increased over recent decades, builders became more amenable to constructing homes with energysavings measures. In addition, some consumers are inclined to spend more when they feel they are buying environmentally friendly products, including homes. (Marketing analysts refer to this segment as “LOHAS,” a term that stands for “Lifestyles of Health and Sustainability.” It refers to consumers who choose to purchase items that are natural, organic, less polluting and so forth. Such consumers may also prefer products powered by alternative energy, such as hybrid cars.) The U.S. government and all 50 states offer tax incentives in varying amounts to builders using solar technology. Zero Energy Design (“ZED”) is slowly catching on. A handful of “zero energy homes (“ZEH”)” that produce approximately as much electricity as they use are being built. Internet Research Tip, Zero Energy Homes: ZeroEnergy Design zeroenergy.com Passive House Institute www.phius.org/home-page HomeInnovation Research Labs www.homeinnovation.com

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By installing photovoltaic panels or other renewable sources to generate electricity, and using improved insulation and energy-efficient appliances and lighting, the zero-energy goal may be achieved, at least in sunny climates such as those in the American West and Southwest. The state of California revised its energy efficiency requirements recently, which took effect in 2014. Requirements include solar-ready roofs that include space for optional solar panels, hot water pipe insulation and the verification by an independent inspector that all air conditioning units are properly installed for maximum efficiency. The state code goes a step farther, recommending whole-house fans to displace warm air with cooler night air in the summer seasons, improved windows and better insulation. State regulators estimate that these changes will make residential and commercial buildings between 25% and 30% more energy efficient. In the commercial sector, businesses may have several reasons to build greener, more energyefficient buildings. To begin with, long-term operating costs will be lower, which will likely more than offset higher construction costs. Next, many companies see great public relations benefit in the ability to state that their new factory or headquarters building is environmentally friendly. Many office buildings, both public and private, are featuring alternative energy systems, ultra-high-efficiency heating and cooling, or high-efficiency lighting. In California, many public structures are incorporating solar power generation. Even building maintenance is getting involved— building owners are finding that they can save huge amounts of money by scheduling janitorial service during the day, instead of the usual after-hours, afterdark schedule. In this manner, there is no need to leave lighting, heating or cooling running late at night for the cleaning crews. An exemplary green office building is Bank of America Tower (formerly One Bryant Park), a 54story skyscraper on the Avenue of the Americas in New York City. Completed in 2009, the $1.2-billion project is constructed largely of recycled and recyclable materials. Rainwater and wastewater is collected and reused, and a lighting and dimming system reduces electrical light levels when daylight is available. The building supplies about 70% of its own energy needs with an on-site natural gas burning power plant. It was the first skyscraper to rate platinum certification by adhering to the Leadership in Energy and Environmental Design (LEED)

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standards, set by the U.S. Green Building Council in 2000 (see www.usgbc.org). The Pearl River Tower, a 71-story skyscraper which opened in 2011 in Guangzhou, China, was designed to be one of the first major zero-energy buildings. Designed by Chicago architecture firm SOM, the tower was planned to be 58% more energy efficient than traditional skyscrapers by using solar roof panels, novel wind turbines embedded in four openings spaced throughout the tower and walls with eight-inch air gaps that trap heat which then rises to power heat exchangers for use in cooling systems. The building encompasses about 2.3 million square feet of floor space. A growing number of buildings are being retrofitted to use energy more efficiently. One example is the initiative underway at Citigroup, Inc. The banking firm is turning off lobby escalators, incorporating more natural light and using recycled materials in dozens of its properties around the world. Citigroup says it can save as much as $1 per square foot of building per year by making its offices more efficient. Elsewhere, Google, Inc. installed a solar rooftop at its California headquarters as early as 2007, and retail chains such as Wal-Mart and Kohl’s are installing solar panels on their California stores. In Wal-Mart’s case, it had more than 150 solar installations in the U.S. by mid-2012, and planned to have 1,000 solar-powered locations by 2020. LEED standards have been adopted by companies such as Ford, Pfizer, Nestlé and Toyota, which have all built LEED-certified structures in the U.S. LEED is not without competition. Another green verification program called Green Globes is backed by the Green Building Initiative in the U.S. Green Building Initiative is a group led by a former timber company executive and funded by several timber and wood products firms. Several U.S. states have adopted Green Globes guidelines instead of those supported by LEED for government-subsidized building projects. In Canada, a version of Green Globes for existing buildings is overseen by the Building Owners and Managers Association of Canada (BOMA Canada) under the brand “BOMA Best.” Green Globes is more wood friendly than LEED, which is not surprising considering the involvement of the timber industry. It promotes the use of wood and wood products in construction with fewer restrictions than LEED, which approves of wood if it comes from timber grown under sustainable forestry practices approved by the Forest Stewardship Council, an international accrediting group.

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In one ambitious project, a $30 million office building in Seattle, Washington was completed in April 2013, spent its first year in a kind of sustainability test. The Living Building Challenge (living-future.org) established and overseen by the International Living Future Institute, will measure the building’s sustainability in seven areas: site, water, energy, health, materials, equity and beauty. Those areas were tested by a list of 20 requirements such as net zero use of water and energy, operable windows and car free living. The new six-story building in Seattle is called Bullitt Center. Retail giant Wal-Mart has attained remarkable achievements in reducing energy use in stores, cutting waste in packaging and increasing the efficiency of its massive trucking and distribution system. It recently announced a goal to double the generation of solar energy on the roof tops of its buildings from 2013 through 2020, when it hopes to be generating 7 billion kWh of renewable energy. Its 2020 commitments will save approximately $1 billion yearly in energy costs. As of 2015, it already got 26% of its global power from renewable sources, compared to the 13% share of U.S. generation. Walgreens Boots Alliance (formerly Walgreen Company) built a net zero energy drug store near Chicago with 800 solar panels on its roof during 2013. This building is also powered by two 35-foot wind turbines and an underground geothermal system. The store’s engineers hope that it will generate more than 450,000 kilowatt-hours of power each year, using only about 200,000 to run the facility. Throughout its chain of stores, Walgreens hopes to reduce energy use by 20% by 2020. SPOTLIGHT: Solar Power Direct from Roofing Shingles Dow Chemical has invested $100 million (plus a $10 million grant from the Department of Energy) in researching new plastic photovoltaic roof panels using thin-film solar cells. The product, called Powerhouse, was available in 17 U.S. states as of early 2015. Powerhouse (and products like it) cost a homeowner about $31,000, after government subsidies and tax rebates, for approximately 3,000 square feet of roofing material. This compares to about $12,000 for traditional asphalt shingles, but Dow claims that homeowners will save $76,200 in energy costs over 25 years and increase a home’s value by $22,000. In addition, the installation of these shingles may qualify for tax credits.

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14) The “Internet of Things” (IoT) and M2M: Wireless Sensors to Boom, Aided by Nanotechnology The phrase “Internet of Things” or “IoT” will become increasingly commonplace. It refers to wireless communications known as M2M or machine-to-machine. M2M can be as simple as a refrigerator that lets a smartphone app know when you are running low on milk (via Wi-Fi) to a vast, exceedingly complex network of wireless devices connecting all of the devices in a massive factory. A Wireless Sensor Network (WSN) consists of a grouping of remote sensors that transmit data wirelessly to a receiver that is collecting information into a database. Special controls may alert the network’s manager to changes in the environment, traffic or hazardous conditions within the vicinity of the sensors. Long-term collection of data from remote sensors can be used to establish patterns and make predictions, as well as to manage surveillance in real time. Another term that is coming into wide use is M2M2P or machine-to-machine-to-people. The “to-people” part refers to the fact that consumers, workers and professionals will increasingly be actively involved in the gathering of data, its analysis and its usage. For example, M2M2P systems that automatically collect data from patients’ bedsides; analyze, chart and store that data; and make the data available to doctors or nurses so that they may take any necessary actions are becoming increasingly powerful. Such systems, part of the growing trend of electronic health records (EHR), can also include bedside comments spoken into tablet computers by physicians that are transcribed automatically by voice recognition software and then stored into EHR. The long term trend of miniaturization is playing a vital role in M2M. Intel and other firms are working on convergence of MEMS (microelectromechanical systems—tiny devices or switches that can measure changes such as acceleration or vibration), RFID (wireless radio frequency identification devices) and sometimes tiny computer processors (microprocessors embedded with software). In a small but powerful package, such remote sensors can monitor and transmit the stress level or metal fatigue in a highway bridge or an aircraft wing, or monitor manufacturing processes and product quality in a factory. In our age of growing focus on environmental quality, they can be designed to analyze surrounding air for chemicals, pollutants or particles, using lab on a chip technology that already largely exists. Some observers have referred to these wireless sensors as “smart dust,”

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expecting vast quantities of them to be scattered about the Earth as the sensors become smaller and less expensive over the near future. Energy efficiency is going to benefit greatly, particularly in newly-built offices and factories. An important use of advanced sensors will be to monitor and control energy efficiency on a room-by-room, or even square meter-by-square meter, basis in large buildings. In an almost infinite variety of possible, efficiency-enhancing applications, artificial intelligence (AI) software can use data gathered from smart dust to forecast needed changes, and robotics or microswitches can then act upon that data, making adjustments in processes automatically. For example, such a system of sensors and controls could make adjustments to the amount of an ingredient being added to the assembly line in a paint factory or food processing plant; increase fresh air flow to a factory room; or adjust air conditioning output in one room while leaving a nearby hallway as is. The ability to monitor conditions such as these 24/7, and provide instant analysis and reporting to engineers, means that potential problems can be deterred, manufacturing defects can be avoided and energy efficiency can be enhanced dramatically. Virtually all industry sectors and processes will benefit. Look for data sensors in homes to proliferate over the near- to mid-term. In the insurance business, live data emanating from sensors in homes could lead to more intelligent policies. Monitoring data via smartphone could be a significant opportunity for companies in the senior care, child care and pet care sectors. Internet Research Tip: The Internet of Things Connections Counter and Infographic: Network equipment maker Cisco has posted a “Connections Counter” online, which provides a running count of people and things connected to the internet, http://newsroom.cisco.com/ioe . This page also provides many useful links to Internet of Things resources. In addition, Cisco posts a highly informative Internet of Things page at www.cisco.com/web/solutions/trends/iot/overview.ht ml which includes a two-minute IoT video. The growth potential of M2M is enormous, and many facets of industry and society will benefit. However, it is difficult at this stage to estimate just how big the market may become. According to HIS, about 17.6 billion devices were connected to the internet as of 2016, with about 30.7 billion devices to

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be connected by 2020. These numbers are far below an estimate made by Cisco in 2015, which forecast 50 billion by 2020. Nonetheless, the market is clearly of enormous proportions. General Electric sees vast promise in connecting everyday items, such as light bulbs, to the Internet of Things. One outcome will be greater energy efficiency. In late 2015, the firm forecast that the year 2020 would see 1 billion connected electric meters, 100 million connected light bulbs and 152 million connected cars, worldwide, by 2020. Meanwhile, French technology firm SigFox offers a simple, inexpensive wireless network, designed specifically for M2M needs. The network transmits data at a rate of 100 bits per second, which is slower by a factor of 1,000 than most smartphone networks, but does so cheaply while it fills simple transmission needs such as those from many wireless sensors (such as Whistle, a clip-on collar sensor that tracks dog activity levels). Base stations use a wireless chip that costs only $1 to $2, and customers pay modest service charges per year per device. As of mid-2016, SigFox had deployed its technology in about 20 countries, covering approximately 460 thousand square miles. It plans to roll out its network in 60 countries by 2020. Intel and other firms have developed methods that enable such remote sensors to bypass the need for internal batteries. Instead, they can run on “power harvesting circuits” that are able to reap power from nearby television signals, FM radio signals, Wi-Fi networks or RFID readers. Memory chips used in sensors are much smaller than those in smartphones and laptops, opening a major opportunity for manufacturers such as Adesto Technologies. The firm makes chips that store between 32 kilobits and one megabit of data, making them a good fit for small monitors such as fitness data tracking wristbands. Future applications might include location-based beacons in retail stores that alert nearby customers to selected items by cellphone. Smoke detectors with small memory chips could sense battery life, while blood transfusion bags could track their locations, ages and content viabilities. IBM is investing $3 billion between 2015 and 2019 in alliance with the Weather Company (which owns The Weather Channel). IBM plans to use data regarding weather conditions to empower businesses in insurance, energy, retail and logistics to make better decisions. Working with the Weather Company, it has access to the Weather Channel’s 700,000 forecasts per second.

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General Electric (GE) launched a new operating system and platform called Predix Cloud in 2015. The goal is to help manufacturers connect to industrial sensors that collect and analyze data, delivering insights for optimizing industrial infrastructure and operations in real time. As of mid-2016, the Federal Communications Commission (FCC) was considering bids for a spectrum auction of licenses to transmit in the 600 megahertz band, a low-frequency bandwidth that enables relatively small amounts of data to be transmitted across long distances and penetrate objects like buildings, metal doors and concrete walls, obstacles that can make traditional cell reception difficult if not impossible. Wireless carriers could set up and maintain a host of devices (everything from smoke detectors to flood sensors to security systems and thermostat controls) with constant access to clear, secure signals. Consumers could easily use their smartphones to turn on their air conditioners, check door locks or cut the water supply if the washing machine overflows, regardless of where they happen to be at the time. Internet Research Tip: Wireless Network Systems (WNS) For more information on wireless network systems and remote sensors, see: UCLA Center for Embedded Networked Sensing, http://research.cens.ucla.edu Dust Networks, Inc. (a subsidiary of Linear Networks), www.linear.com/products/wireless_sensor_netwo rks_-_dust_networks Moog Crossbow Technology, www.xbow.com 15) Major Research and Advancements in Lithium Batteries/Tesla and Panasonic Plan Gigafactory Although all-electric vehicles still make up only a fraction of the automotive market, the battery industry is expected by some analysts to boom. However, the extreme drop in gasoline prices that began in late 2014 and continued into 2016 is tempering near-term demand for hybrids and allelectric vehicles. There are many obstacles to all-electric vehicles: battery charging, battery cost and driving range. The biggest news in advanced batteries for automobiles is being made at Tesla, the U.S.-based maker of high end, all-electric vehicles. Tesla's automobiles are unique on several counts. To begin with, the firm has

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been very successful in attracting buyers for its Model S sedan and Model X crossover. Next, Tesla's unique technology ties together thousands of small lithium-ion batteries, similar to cellphone batteries, in each car, as opposed to the normal use of one or two giant batteries per vehicle. This has enabled Tesla's cars to have more power and a range in the neighborhood of 200 to 300 miles per charge. In 2014, Tesla broke ground on a massive battery factory, known as the Gigafactory, near Reno, Nevada. The plan is for a 10 million square foot plant capable of manufacturing enough batteries to power 500,000 cars per year. It may employ as many as 6,500 people, and the total cost will be in the range of $5 billion. The factory had a soft opening in 2016 of a small portion of its planned space and plans to be in full production by 2020. Why would the firm make such a massive investment? The cost per unit of battery power is the key to offering lower-priced car models in the near future. Tesla is banking on launching a new car, the Model 3, in the $35,000 price range for the popular market. Currently, Tesla buys most of its batteries from Panasonic, in the $200 to $300 per kWh price range. The company hopes to drop the battery cost per vehicle by at least 30% with the new factory. Panasonic is a major partner in the Gigafactory. In addition, Tesla has brilliantly adapted its battery knowhow for a new purpose: mid-size electricity storage batteries for local use. In May 2015, Tesla CEO Elon Musk unveiled a $3,000, 7 kilowatt-hour (kWh) “Powerwall” battery bank for use in homes. The unit, which measures four feet by three feet, is designed to store solar energy, enabling homeowners to store backup power, lower their dependence upon utility-provided power during peak hours or bypass the commercial power grid altogether. Tesla also offers a $3,500 10 kWh Powerwall unit. This is a new business line with tremendous potential, especially if Tesla is able to significantly drop its battery cost. A Chinese leader in advanced batteries is BYD Company Limited. BYD is already a global leader in contract manufacturing of batteries and handsets for mobile phones. For example, BYD manufactures batteries for iPhones and iPods. The holy grail of electric car research is the development of battery technology that will enable a car to go 400 to 500 miles between recharges, while maintaining a competitive retail price for the car. The expensive Tesla Roadster already claims a relatively long range of nearly 300 miles.

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Wireless Battery Charging for Electric Buses In the city of Gumi, South Korea, a small number of electric buses are utilizing exciting new technology that enables to them to recharge their batteries, while moving or parked, wirelessly—that is, without being plugged in. The technology is capable of focusing an electromagnetic field towards a specific direction (the bus). The field recharges the battery with little energy loss during transmission. While expensive (Gumi’s small system cost nearly $5 million, including two advanced, carbon fiber buses), the technology is very promising as a means of promoting zero-emission public transit. IBM is working on a radical new lithium battery that could be far lighter than current batteries and have a vehicle range of as much as 500 miles. The Battery 500 Project is researching a lithium-air battery that, instead of shuttling ions back and forth between two metal electrodes, moves them between one metal electrode and air. The concept is similar to zinc-air batteries used to power hearing aids. The problem is that zinc-air batteries are not rechargeable and limited to a very small size. 16) Nanotechnology Sees Applications in Fuel Cells and Solar Power/Micro Fuel Cells to Power Mobile Devices Potential methods of generating energy with nanotechnology are nearly boundless, and some applications are creating synergies between plastics and nanotech. However, the most immediately promising possibilities are for solar power and fuel cell power. Michael Graetzel, a Swiss scientist, invented a new kind of solar cell that uses dye molecules and titanium dioxide. This enables manufacturers to place highly efficient and versatile solar cells in flexible plastic sheets, rather than the traditional glass and silicon cells. A new development in nanosolar technology is multi-junction solar cells, which were initially exhibited by researchers from the Imperial College, London at the Royal Society Summer Science Exhibition in 2009 in the UK. These cells layer on top of each other, with each layer capturing energy from a particular color in the spectrum of sunlight. Converting energy from the entire spectrum may result in the ability to turn as much as 50% of the energy in sunlight into electricity compared to the 20% or so that is gleaned using conventional solar cells. Solar Junction, a San Jose, California-based company www.sj-solar.com, specializes in the

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technology. In 2015, the firm announced the development of a four-junction (4J) cell for use in outer space. Another way that nanotechnology may impact solar cells is the use of quantum dots instead of silicon. Quantum dots, which are nanoscale semiconductor crystals, could significantly lower the cost of photovoltaic cells. In 2006, Victor Klimov of Los Alamos National Laboratory in New Mexico demonstrated that quantum dots have the capability to react to light and store energy more efficiently than silicon. A record-breaking solar cell was announced by a collaboration of researchers from Penn State University, the University of Toronto and King Abdullah University of Science and Technology in 2011, which utilizes inorganic ligands that bind to quantum dots and take up less space. The result is significant increases in efficiency. Another breakthrough occurred in 2013, when scientists at the University of Toronto’s Engineering program found a new technique for light absorption in quantum dots which shows a possible 35% increase in the technology’s efficiency in the near-infrared spectral region. Overall, this could translate to an 11% solar power conversion efficiency increase, making quantum dot photovoltaics even more attractive as an alternative solar cell technology. Although scientists are years away from actually manufacturing usable quantum dot solar cells on a commercial scale, the technology has been established. Meanwhile carbon nanohorns, a variation of carbon nanotubes, are being used in fuel cells to make them lighter, cheaper and more efficient. SFC Energy AG (www.sfc.com), formerly Smart Fuel Cell AG, based in Germany; NEC, the giant Japanese electronics firm; and several other companies are creating such fuel cells for use in mobile phones and laptops, as well as traffic signals, remote sensors and metering systems. As these fuel cells become more compact, powerful and longer lasting, many other applications will become available for both mobile and set devices. Toshiba released the first commercial fuel cell for mobile equipment, the Dynario. A direct-methanol fuel cell (DMFC), the Dynario uses a combination of methanol and ambient oxygen to create electricity. On one methanol cartridge (which takes about 20 seconds to load into the unit), the Dynario can charge two mobile phones or devices such as MP3 players. The product was available in limited release (only 3,000 units) in Japan, and retailed for about $325. As of 2015, scientists at MIT and Tsinghua University in China were working on a rechargeable

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lithium-ion battery with improved performance. Researchers found that as electrodes charge and recharge, they expand and shrink in size during the process, which requires reforming the “skin” surrounding the electrode, thereby consuming lithium. The MIT-China team found that by creating nanoparticles with a static skin or shell made of titanium dioxide and an interior “yolk” made of aluminum with room to expand and shrink, batteries could yield greater capacity and power. The technology has the potential to deliver three times the capacity of batteries built with graphite. Titanium and aluminum are also cheaper. 17) Fuel Cell and Hydrogen Power Research Continues/Fuel Cell Cars Enter Market The fuel cell is nothing new, despite the excitement it is now generating. It has been around since 1839, when Welsh physics professor William Grove created an operating model based on platinum and zinc components. Much later, the U.S. Apollo space program used fuel cells for certain power needs in the Apollo space vehicles that traveled from the Earth to the Moon. In basic terms, a fuel cell consists of quantities of hydrogen and oxygen separated by a catalyst. Inside the cell, a chemical reaction within the catalyst generates electricity. Byproducts of this reaction include heat and water. Several enhancements to basic fuel cell technology are under research and development at various firms worldwide. These include fuel cell membranes manufactured with advanced nanotechnologies and “solid oxide” technologies that could prove efficient enough to use on aircraft. Another option for fuel cell membranes are those made of hydrocarbon, which cost about one-half a much as membranes using fluorine compounds. Fuel cells require a steady supply of hydrogen. Therein lies the biggest problem in promoting the widespread use of fuel cells: how to create, transport and store the hydrogen. At present, no one has been able to put a viable plan in place that would create a network of hydrogen fueling stations substantial enough to meet the needs of everyday motorists in the U.S. or anywhere else. Many current fuel cells burn hydrogen extracted from such sources as gasoline, natural gas or methanol. Each source has its advantages and disadvantages. Unfortunately, burning a hydrocarbon such as oil, natural gas or coal to produce the energy necessary to create hydrogen results in unwanted

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emissions. Ideally, hydrogen would be created using renewable, non-polluting means, such as solar power or wind power. Also, nuclear or renewable sources could be used to generate electricity that would be used to extract hydrogen molecules from water. The potential market for fuel cells encompasses diverse uses in fixed applications (such as providing an electric generating plant for a home or a neighborhood), portable systems (such as portable generators for construction sites) or completely mobile uses (powering anything from small handheld devices to automobiles). The likely advantages of fuel cells as clean, efficient energy sources are enormous. The fuel cell itself is a proven technology—fuel cells are already in use, powering a U.S. Post Office in Alaska, for example. (This project, in Chugach, Alaska, is the result of a joint venture between the local electric association and the U.S. Postal Service to install a one-megawatt fuel cell facility.) Tiny fuel cells are also on the market for use in powering cellular phones and laptop computers. FuelCell Energy of Danbury, Connecticut (www.fuelcellenergy.com), built a 59-megawatt fuel cell complex in Hwasung City, South Korea. The plant, which went online in 2014, is the world’s largest to date. FuelCell Energy received approval in early 2016 to build a still larger 63.3-megawatt plant in Beacon Falls, Connecticut. Shipments of fuel cell-equipped mobile devices may be very useful to certain types of customers as they can eliminate the need for frequent recharging of current battery-powered models. The Medis 24/7 Power Pack is a portable, disposable power source for small electronic devices such as cell phones and MP3 players. Manufactured by Medis Technologies, it is based on Direct Liquid Fuel cell technology, and may be of particular utility in military applications. Elsewhere, MeOH Power (formerly MTI MicroFuel Cells) manufactures a power pack for portable electronics that is based on direct methanol fuel cell technology. In Bridgeport, Connecticut, a 14.9-megawatt fuel-cell complex generates enough electricity to power 15,000 homes (out of a total 51,000 in the city). In April 2015, a 1.4-megawatt cell went online at the University of Bridgeport, while work was expected to begin on another 2.8-megawatt cell that is to be part of a renewable energy complex on a closed landfill in the area.

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Internet Research Tip: Micro Fuel Cells For more information on research involving fuel cells for small applications, visit: MeOH Power www.meohpower.com Electric Vehicles vs. Fuel Cells 1) While the potential for fuel cell-powered vehicles seems promising, the majority of the automobile industry has focused instead on plug-in electric hybrids and all-electric vehicles as the alternative fuel base of choice for the near-term. 2) An important factor in that decision is the tremendous success and wide consumer acceptance of Toyota’s Prius hybrid car. This success gave Toyota early dominance in the electric car field while other makers were still dreaming about fuel cells. A vital feature of the Prius is its very affordable price. 3) For fuel cells, the technical hurdles of distributing, storing and transporting hydrogen as a fuel are challenging. A massive investment in hydrogen filling stations would be required to make fuel cell vehicles practical for consumers. 4) Consumers, bureaucrats, investors and legislators already understand and trust the safety and ease of use of electricity, whether fixed or portable. This cannot be said for hydrogen. 5) Despite these obstacles, major automakers are continuing significant investments in fuel cell technology, with promising results. The costs of manufacturing fuel cells are dropping, to the point that they may eventually become affordable for passenger cars. 6) In the U.S., federal and state requirements for ever-higher average fuel efficiency ratings, and in some cases zero-emission vehicles, will encourage continued investment in fuel-cells. By 2016, limited numbers of fuel-cell powered vehicles were on the market in the U.S. and Japan. Source: Plunkett Research, Ltd. GM invested $1 billion in fuel cell vehicle research. The company leased 199 fuel cell-equipped Equinox crossover vehicles to customers as a test called Project Driveway in three U.S. markets, starting in early 2008. Despite the setback of the financial problems of 2008-09 that led to bankruptcy and a government bailout, GM managed to keep Project Driveway going, in which more than 5,000 drivers provided feedback on Chevrolet Equinox FCV sedans. Some of those vehicles accumulated more than 120,000 miles each.

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GM began a long-term collaboration with Honda in July 2013 to co-develop next generation fuel cells and hydrogen storage systems. Honda leased test models of its “FCX” fuel cell-powered car to small numbers of customers in the U.S. and Japan. For 2016, Honda announced that it will launch a new generation of its fuel cell vehicle, to be called Clarity. (See http://automobiles.honda.com/fcx-clarity/.) GM is expected to follow with its own new FCV per the companies’ agreement. Honda is also promoting a concept called Home Energy Station that would convert natural gas into enough hydrogen to power fuel cells that could run a family’s vehicle, as well as supply electricity and hot water for the family home. (See http://automobiles.honda.com/fcx-clarity/homeenergy-station.aspx.) Meanwhile, Hyundai Motor Co. began limited sales of a hydrogen-powered SUV in California in mid-2014. Toyota unveiled a fuel cell car at the Tokyo automobile show in November 2013. The vehicle, a $57,500 FVC sedan with a 312-mile range called the Mirai, launched in Japan and in California in the U.S. in 2015. The Japanese government has committed to creating a network of 100 hydrogen filling stations. In the U.S., as of early 2016, there were only16 retail hydrogen fueling stations (an additional 14 were planned by year end), a serious stumbling block for Toyota. British startup manufacturer Riversimple, www.riversimple.com , hopes to launch a fuel cellpowered vehicle on a unique business model. Customers will pay one monthly fee to have access to the car, fuel, insurance and maintenance. The car is being designed by the same person who designed the Fiat 500. Though small, the vehicle is tough thanks to a body made of carbon composites. There is an electric motor for each of the car’s wheels, and ultracapacitors capture and store energy when the brakes are engaged. As of early 2016, a prototype called the Rasa was on the road in the U.K. Mercedes-Benz also has a fuel cell vehicle, the B-Class F-Cell. The B-Class F-Cell has a range of 249 miles and a top speed of 109 mph. As of 2015, prototypes of the vehicle were available to Americans only in Los Angeles and San Francisco, California. Another problem is that many people still have concerns about the safety of hydrogen. Naturally gaseous at room temperature, storing hydrogen involves using pressurized tanks that can leak and, if punctured, could cause explosions. It is also difficult to store enough hydrogen in a vehicle to take it the 300+ miles that drivers are used to getting on a tank

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of gasoline. To do so, hydrogen must be compressed to 10,000 pounds per square inch and stored on board in bulky pressure tanks. In 2010, U.S. President Obama signed a Nationwide Hydrogen Highway Initiative hoping to provide subsidies for up to 200,000 hydrogen fueling stations not more than five miles apart. In June 2013, the California Energy Commission approved $18.7 million to expand its hydrogen fueling station program. As of early 2016, California had 13 operational stations for vehicles, plus three for buses and dozens more in development. Meanwhile, governments are facing up to the economic and technical difficulties of boosting alternative fuels through loans and subsidies, and car makers have received no return on their massive investments in fuel cells. Nonetheless, a 2012 survey of automotive industry executives by global accounting firm KPMG found that 20% of respondents thought fuel cell vehicles could attract more consumer demand than electric vehicles by 2025. Fuel cells or hydrogen-powered engines may eventually gain traction, but the technological challenges and investment required remain daunting. Ten states, led by California, have set serious goals for zero-emission vehicles within their borders. The end game is to have 15% of vehicles to be running on electric or hydrogen power sold within each state by 2025. The additional states (including New York, Massachusetts, Maine, New Jersey, Oregon, Vermont, Maryland, Connecticut and Rhode Island) hope to have tens of thousands of additional zero-emission vehicles on the roads by then. Combined, these states total about 23% of the U.S. car market. While these mandates will undoubtedly evolve to some extent, they put a serious burden on car makers. Using hydrogen as a fuel may become a prime method of fulfilling the mandates, especially if financial incentives and tax credits are substantial enough and a massive network of hydrogen fueling stations emerges. California's mandate begins with small numbers of vehicles in 2018, growing to 15.4% of total car sales by 2025. Car makers are fighting to have the mandate modified or overturned, as they are greatly alarmed over the potential development costs and deterred by the fact that consumers have responded poorly to-date to offerings of electric cars other than the Tesla.

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18) Fuel Efficiency Continues to Improve/ Stiff MPG Standards Adopted in the U.S. (CAFE Rules) and Abroad The recent plunge in the retail price of gasoline caused many consumers to reconsider the types of vehicles they are willing to drive. The light truck market, including pickups and vans, is of vital importance due to automakers several factors. To begin with, for manufacturers, gross profits per light truck unit can be many times higher than the profits made from small, highly fuel efficient cars. Next, light trucks will always burn more fuel than smaller cars, having an effect on both a manufacturer's total CAFE average fuel efficiency and on the total demand for gasoline. The year 2016 saw a 7.2% year-over-year upswing in sales of light vehicles including trucks and SUVs in the U.S., to 17.55 million. The strong uptick in light truck sales was due to many factors, including a surge in new home construction, where building contractors rely on their pickups, a reduction in unemployment, plummeting gasoline prices and, importantly, excellent improvement in the fuel efficiency of pickup trucks thanks to changes in engineering, design and materials. CAFE (corporate average fuel economy) standards were first issued by U.S. federal regulators in the 1970s as a method of setting average fuel economy standards for carmakers. Current standards call for manufacturers to sell a portfolio of light-duty cars and trucks averaging 54.5 miles per gallon (mpg) by 2025. In order to reach such high levels of efficiency, higher manufacturing costs will impact sticker prices. Some auto industry observers believe that these tough mileage requirements will add much higher manufacturing costs than those estimated by the government ($1,836 per vehicle). Analysts at one time believed those costs would be as high as $3,000 per vehicle. However, the disagreement continues, as a recent report commissioned by the National Highway Traffic Safety Administration estimated that additional costs would run between $1,200 and $1,700 per vehicle. The CAFE rules are also likely to force manufacturers to offer more electric vehicles, and may give a boost to the eventual entry of hydrogen fuel cell-powered vehicles, although the technical and logistical problems remain high for fuel cells. When considering the effect of CAFE rules, bear in mind that they are an average of sorts (a “harmonic mean”) for a manufacturer’s entire line of cars and light trucks, and that number is arrived at by a

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circuitous calculation, with separate considerations for a company’s domestic cars, imported cars and light trucks. The more that a car maker offers ultraefficient cars, such as electrics and hybrids, the closer it comes to meeting the rules. As with all federal regulations, CAFE rules (at 700 pages published in one year alone) are immense and intricate. For example, firms can earn various “credits” that enable them to temporarily avoid penalties if they do not meet the standards. In general, meeting such high average fuel efficiency will require a combination of several things. To begin with, manufacturers will be forced to build much lighter vehicles. This means that in some cases they will go so far as to eliminate the spare tire and wheel in order to save 100 to 150 pounds. At the same time, they will engineer lighter engines, use plastic where possible as a replacement for metals, and look for weight savings in everything from seats to bumpers. For example, Ford designed a new EcoBoost three-cylinder engine. Utilizing turbocharging, this much lighter powerhouse produces 118 horsepower per liter, compared to about 70 horsepower for current four-cylinder models. Fuel efficiency is greatly enhanced. The first use of the engine was for the 2012 Ford Focus. Ford released an aluminum-bodied F-150 pickup truck in 2015. The lighter metal cuts the popular truck’s weight by 700 pounds, making it much more fuel efficient. Analysts expect that 18% of all vehicles made in the U.S. will have all-aluminum bodies by 2025. Other light weight material alternatives include carbon fiber composites (BMW’s i3 electric car has a carbon fiber composite frame) and magnesium, which is 50% lighter that steel and 30% lighter than aluminum. A proven gas-saving measure is an inexpensive shift from a five-speed to a six- or eight-speed automatic transmission. The cost for the enhancement is in the neighborhood of $400 to $800, but the measure can add two miles per gallon in efficiency. The latest Ford Mustang proved that drivers can enjoy fast acceleration as well as respectable fuel efficiency, since the V-8 model delivers 305 horsepower and 31 mpg on the highway. The car has an EcoBoost manual transmission, in addition to lower-rolling resistance tires and an electric (as opposed to a hydraulic) power steering system which reduces engine strain. GM claims that an improvement of between 6% and 12% in fuel economy can be achieved through cylinder deactivation technology. In these systems, one-half of an engine’s cylinders stop firing once a

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steady cruising speed is reached. Other small changes, such as those incorporated in the Chevrolet Malibu sedan, can add up. For example, the hood is made of aluminum instead of steel and rounded front corners reduce drag (saving 0.4 mpg on the highway); active shutters behind the grill open and close as needed to cool the engine (savings of 0.3 mpg); and the car has no spare tire but includes an inflator kit for temporary tire fixes (savings of 0.4 mpg). GM first launched the Chevy Cruze Eco in 2012, which is equipped with all of the features listed above. Johnson Controls, a manufacturer in Wisconsin that makes roughly a third of all auto batteries in the U.S., retrofitted one of its factories to produce advanced batteries that allow traditional engines to start and stop repeatedly without wearing out the battery. Just as in hybrids, where engines stop when the vehicle comes to a halt and then restart to accelerate, the advanced batteries allow traditional engines to do the same. Mileage is improved by about 4% to as much as 10%, depending on the vehicle and its usage. This “start-stop” technology is of keen interest to automakers, including Ford, Mercedes, GM, Toyota and BMW. Another bright spot on the fuel efficiency horizon is a new hydraulic-hybrid system that is in use on large service vehicles such as garbage trucks and UPS delivery vans. The EPA’s National Vehicle and Fuel Emissions Laboratory in Ann Arbor, Michigan has designed a hybrid garbage truck that uses a diesel engine, assisted by a hydraulic pump and storage tank system that replaces the drivetrain and transmission. The pump and tanks makes it possible to store and reuse energy normally lost when brakes are applied, thereby increasing fuel efficiency as much as 60% and reducing carbon monoxide emissions by more than 40%. UPS placed an order with hydraulic manufacturer Eaton Corporation and truck builder Navistar for 200 hybrid electric vehicles which hit the streets in cities across the U.S. The EPA projects that the cost per vehicle to add the hybrid components is less than $7,000, while fuel savings over a 20-year lifespan could exceed $50,000. Internet Research Tip: Hybrid Commercial Trucks: Hybrid trucks and buses will soon be in high demand by major truck fleet operators such as UPS. For the latest information on pilot projects, technologies and fleet purchases, see Calstart’s web site at www.calstart.org.

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Another new technology of note is an artificial neural network. The network detects cylinder misfires and controls idle speeds, thus increasing fuel efficiency. These networks are already in use in large-engine vehicles such as Aston-Martin’s 12cylinder DB9 and Ford’s E-Series full-size van. GM and Audi are also working on implementing the technology for use in issues relating to variable valve timing and engine performance improvements. Serious measures such as these will have to be taken across the board by automakers in their vehicle designs in order to meet future emissions and efficiency stipulations. The aforementioned National Highway Traffic Safety Administration 2015 report found that lightweight materials, better transmissions, turbochargers and other improvements already made or in the development pipeline for current car and truck models may be enough for manufacturers to meet the 2025 CAFE standards. SPOTLIGHT: Motor Scooters Don’t be surprised to see more and more of your neighbors zipping around on stylish motor scooters. The motor scooter dates back to post-war Europe, where Piaggio made the first Vespa in 1946. While scooters have long been extremely popular in densely-populated cities outside the U.S., such as Rome and Bangkok, Americans have rarely been scooter buyers, turning instead to cars, light trucks and powerful motorcycles. However, the difficulty of parking in some U.S. cities and attractive new scooter models are lighting a fire under U.S. consumers. For example, the Vespa has extremely peppy new models that have room for two people and perhaps a shopping bag, get more than 60 mpg and cost about $4,400. Honda and Yamaha have jumped into the market with scooters that feature storage compartments for groceries or helmets along with engines that are powerful enough for highway cruising. Lighter, new scooters with small engines that get up to 120 mpg are offered by other makers for about $3,000. Another trend is the restoration of classic, Italianmade Lambretta and Vespa scooters. For example, less than $3,000 will get you a fully restored, classic Vespa from the 1960s. In addition to snappy new scooters, sales of full size motorcycles have grown. Meanwhile, motorbikes are a massive market in India, where, in a typical year, motorbikes outsell cars and trucks by a factor of seven. Indian manufacturer Hero MotoCorp Ltd. (formerly Hero Honda Motors) is India’s leading seller.

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19) Car-Sharing Programs Like Zipcar and Autolib, AKA Mobility Services, Proliferate Car-sharing has become a big business in North America and Europe. This practice is called carsharing because the organizations providing the cars sell memberships, and the cars are shared among the members. Each member has the right to reserve and drive a car on an as-needed basis, which is, in effect, a short-term rental. The automobile industry refers to this sector as “mobility services.” The costs of buying, operating, insuring and parking a personal automobile are extremely high. At the same time, consumer attitudes and behavior regarding transportation are evolving rapidly. Surveys in mature economies such as Japan show that a relatively large number of young people have no interest in purchasing a car. The percentage of people in major cities in the U.S. and UK who do not own cars is rising. A combination of car sharing strategies, like ZipCar, ride sharing systems like Uber and autonomous vehicles capable of driving themselves will have very profound effects on automobile manufacturing, usage, sales and ownership patterns. At least in dense urban environments, the result is very likely to be a large proportion of individuals who opt to use shared vehicles rather than userowned cars. A car sharing pioneer called Zipcar (www.zipcar.com) operates in a large number of American cities. It offers drivers inexpensive alternatives to owning their own cars. Zipcar members are issued smart cards that allow them to unlock Zipcar vehicles with a wave of the card over the windshield. The cars are equipped with pre-paid cards for use at gas stations and insurance coverage; and drivers are allowed 180 miles of driving per day. Business boomed during the firm’s early years, as gas prices escalated to dizzying heights and then again at the onset of the global economic crisis. In March 2013, Avis Budget Group completed its acquisition of Zipcar for $491 million. Zipcar is utilizing innovative, densely populated locations as pick up spots, such as garages in major hotels and university campuses. The firm spawned a number of similar offerings from competitors including rental car firm Hertz Corp.’s Hertz 24/7 (formerly Hertz on Demand and Connect by Hertz) and Enterprise Rent-A-Car’s CarShare (formerly WeCar). Hertz is taking the car sharing business so seriously that as of 2013, all vehicles in its U.S. fleet were equipped with devices that allow customers to

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use the Internet to reserve and unlock a rental car from Hertz 24/7. There are no membership or annual fees, and users earn points in the Hertz Gold frequent renter program. An initiative in France is Autolib, a car sharing program which has about 2,000 electric vehicles and more than 850 stations and centers charging spots on Paris streets. Along with commissioning the vehicles (designed by CEO Vincent Bolloré), Autolib is building a total of 4,000 electric charging stations for parking and recharging. BMW offers the BMW on Demand program. Available vehicles range from its 1-series of compacts up to its luxury 7 series. Cars can be picked up and dropped off at the BMW Welt, the company’s exhibition and event center next to its headquarters in Munich. BMW is betting that the trend of younger urban drivers choosing not to own vehicles will continue. The project is similar to other European initiatives, including Peugeot’s Mu and Daimler’s car2go (which started service in several cities in the U.S. in 2012). BMW also has a European rental program called DriveNow in partnership with German car rental company Sixt AG. Electric cars are accessed by a computer chip embedded in driver’s licenses, and can be left at any location without having to return it to a specific drop off point. 20) Electric Cars and Plug-in Hybrids (PHEVs) Enter the Market in Low Numbers Electric cars range from 100% electric power vehicles that have relatively short ranges and are plugged-in at home overnight to recharge—to cars like the Chevrolet Volt that will run primarily on an electric motor only, but include a small gasolinepowered generator engine that will recharge the batteries when needed and give an occasional boost to the drivetrain as well. The Volt is designed to go up to 53 miles without recharging, and has the ability to be recharged by plug-in at home, and has a range of 420 miles using gas and electric combined. A little history is in order: An all-electric car has long sounded logical to many people. GM launched the EV1, an all-electric vehicle, in 1996. Unfortunately, the car was a complete flop, and the $1-billion project was abandoned in 1999. In 2002, Ford announced that it would give up on the Think, an electric car model in which it had invested $123 million. These efforts were an attempt to satisfy government demands, not an attempt to fill early consumer needs. Today, stringent U.S. government

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average fuel efficiency requirements continue to push manufacturers to offer electric vehicles, in order to bring down their brand’s overall average mpg. Plug-in hybrids (PHEVs) are similar to standard hybrids, but they enable the owner the option of plugging-in at home overnight to recharge the battery. This will eliminate the need to run the car’s gasoline engine, using only battery power as long as the relatively short range isn’t exceeded. (Standard hybrids recharge only by running the gasolinepowered side of the car, and by drawing on the drag produced by using the brakes.) Initial PHEV sales have been low in number. For 2016, InsideEVs.com reported U.S. sales rose by 37% to 159,139 vehicles. Global sales were 777,497, a 41% increase. Sales will be helped by the nine U.S. states that have announced plans to require 15% of new car purchases to be made up of zero-emission vehicles by 2025. Toyota decided to limit its production of electric vehicles to very small numbers for the near term. To explain these decisions, Vice Chairman Takeshi Uchiyamada stated, “The current capabilities of electric vehicles do not meet society’s needs, whether it may be the distance the cars can run, or the costs, or how it takes a long time to charge.” This is a big statement, coming from the world’s leader in hybrid electric vehicles. For now, large numbers of consumers remain skeptical about electric or hybrid cars in general. That may change, however, with the passages of laws such as California’s Senate Bill 350, which calls for cutting greenhouse gas emissions to 40% below 1990 levels by 2030. Southern California Edison hopes to install 30,000 electric vehicle chargers in commercial buildings, parking lots and apartment complexes by 2019 (at a cost of $355 million). Nine other states are following California’s lead in requiring 15% of all cars sold to be either electric or hydrogen powered by 2025. However, many of these states, such as Vermont, are in locations that have much colder weather than that of California, and batteries based on current technology lose performance in colder temperatures. The vast majority of electric vehicles sold in the U.S. are sold in California and in the Southern states, where weather is comparatively warm.

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How electric vehicles might eventually gain significant market share: 1) Technical breakthroughs in batteries will eventually make all-electric vehicles more affordable while providing longer range. Nanotechnology may be the key. Government requirements for higher miles-per-gallon ratings on cars over the mid-term will force automakers to focus on electrics, in order to lower each maker’s overall average. Similarly, several states have announced aggressive requirements that 15% of cars sold annually be zeroemission by the year 2025. 2) Electricity is user-friendly, easy to understand, and easy to obtain. Electric utility companies are generally in favor of the electric car trend. Governments have been extremely enthusiastic and supportive (including financial support for manufacturers and incentives for consumers). 3) Innovative entrepreneurs remain committed to electric vehicles. 4) Electric vehicle maker Tesla is setting the standard in electric vehicles, selling sizable quantities of its high-end cars, and boosting consumer acceptance of electric cars in general. The firm launched a new Model X crossover in late 2015, and plans a Model 3 sedan as early as 2017, with a base price of about $35,000, capable of traveling about 200 miles per charge. Tesla’s long term strategy includes a $5 billion battery factory to be opened in Nevada as soon as 2017. Source: Plunkett Research, Ltd. GM planned to launch a redesigned Volt with a 50-mile range and a sleeker design in late 2015 (after stopping production of the earlier version in June of that year to make way for the new model). By 2017, GM hopes to have the Chevy Bolt ready for market. Capable of driving 200+ miles between charges, the Bolt will retail for about $30,000. Meanwhile, the Volt remains one of Chevy’s lowest-selling cars. GM is collaborating with utility companies in nearly 40 states to work out issues relating to power grids and the added demand that electric vehicles pose. Nissan has similar alliances to promote plug-in stations (it also designated a supplier of home charging stations using a 220-volt plug similar to those used for clothes dryers that promised to recharge batteries in less than eight hours). GM and other manufacturers are working on computer chips and software to imbed in electric vehicles that will communicate with utility systems regarding the best times to recharge for the best prices. Recharging on a summer afternoon, for example, would put a strain on

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grids already powering air conditioners, while offpeak charging would not only be cheaper but more efficient since power plants typically have excess electrical capacity at night. Tesla is the rock star of the electric car industry. Its sales have been impressive, despite the relatively high price of its initial models, and the company’s own stock has soared, thrilling early investors. Tesla's introduced its latest Model S sedan (called the Model S 70D) in April 2015. It has a range of 240 miles per charge (a 15% improvement over the first Model S). In mid-2016, Tesla unveiled a cheaper version of the Model S with a range of only 200 miles per charge and a starting price of $66,000. Tesla launched a new Model X crossover featuring gullwing doors in late 2015 at prices that can be as high as $130,000 for a fully equipped model. It also plans a Model 3 sedan for 2017 with a base price of about $35,000, capable of traveling about 200 miles per charge. Tesla has taken a simple route to solve the problem of batteries: each car has thousands of small, lithium-ion batteries linked together, similar to the batteries found in consumer electronics. The firm also has a global system of convenient chargers in high traffic areas, called Tesla Superchargers, where Tesla owners can recharge at no cost. For those with thinner wallets, the BMW i3 electric compact has a base price of about $42,400. The i3 is making headlines for its lightweight, twomodule carbon fiber architecture. With a range of 186 miles, the i3 was released in Europe in late 2013 and in the U.S. in 2014. Although sales of electric vehicles in China were very slow through 2015, China’s state-run electric utilities are strongly backing the concept. BYD expanded its yearly capacity for electric buses from 500 in 2010 to 1,000, and planned to eventually build 5,000 yearly. China hopes to have 5 million electric, hybrid and fuel-cell vehicles on the road by 2020, but this will be a difficult goal to meet. Internet Research Tip: Electric Cars For the latest on electric car manufacturers see: Electric Drive Transportation Association, www.electricdrive.org Global Electric Motorcars, www.gemcar.com Tesla Motors, www.teslamotors.com

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SPOTLIGHT: The Gogoro Smartscooter A Taiwanese startup called Gogoro (www.gogoro.com) is marketing a stylish electric motorbike called the Smartscooter. Launched in mid-2015 in Taiwan, the bike has an electric motor equivalent to a 125cc engine, can accelerate from zero to 30 mph in 4.2 seconds and has a top speed of 60 mph. Riders can purchase the bikes but don’t own the batteries. Instead, portable batteries are swapped out as needed from a charging station network of “GoStations” for a monthly fee of about $30. Batteries must be authenticated using a smartphone app in order to work. Pricing starts at about $4,100, which includes a two-year, unlimited mileage warranty and 24/7 roadside assistance. The Gogoro has a growing number of competitors. Manufacturers include Zero Motorcycles (www.zeromotorcycles.com), Polaris Industries’ Victory Motorcycles (which acquired the Brammo Empulse model in 2015, www.victorymotorcycles.com) and Yamaha (www.yamaha-motor.com). Harley Davidson (www.harley-davidson.com) announced plans to sell a production electric motorcycle by 2020. 21) Smart Electric Grid Technologies Are Adopted The Grid: In the U.S., the networks of local electric lines that businesses and consumers depend on every day are connected with and interdependent upon a national system of major lines, power plants and controllers collectively called “the grid.” The grid is divided into three major regions, named East, West and Texas. These regions are also known as “interconnects.” In total, the grid is a compendium of about 7,000 power plants sending electricity across 450,000 miles of transmission lines and 2.5 million feeder lines, all managed by 3,300 utilities. The Edison Electric Institute estimates the value of the grid at $876 billion. The grid’s three interconnects are broken down into about 120 control areas, but operators of those control areas have very little authority beyond making requests (but not demands) of utilities participating within their areas. Unfortunately, much of this grid was designed and constructed with technology developed in the 1950s and 1960s, and it was never intended to carry the amazing amount of power that today’s electricity-hungry Americans consume. Simply put, much of the grid is out of date. When a local utility system needs more power than it is generating, it can draw upon the grid. (In fact, many utility companies in America have no

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generating capacity at all and draw all of their power from the grid and then resell it to end users.) Conversely, when a generating system is producing more power than is needed locally, it can push power into the grid for other areas to use. Since electricity cannot be easily stored in large volume for future use, the grid is absolutely vital in smoothing out the fluctuations that occur in supply and demand. Unfortunately, the grid suffers from a long list of inadequacies. For example, about 6% of the energy pushed into the grid is lost during transmission, according to the U.S. Energy Information Administration. Also, the grid has bottlenecks, or distribution squeezes, particularly in densely populated areas like New York City and San Francisco. This means that utilities cannot always get all of the electricity they need in order to meet local demand, and blackouts or shortages occur. The rapid growth in renewable power generation is placing new types of strain on the grid, as wind and solar plants that are constructed in remote locations require significant extensions of major power lines in order to get their electricity into the grid for distribution. Building Smarter Grids and Microgrids for Distributed Power: The utilities industry is pushing its own vision of the grid’s future, via the respected Electric Power Research Institute (EPRI, www.epri.com), an organization of members representing more than 90% of the electricity generated and delivered in the U.S. EPRI envisions creating an environment in which utilities are encouraged to invest heavily in new transmission technologies. Part of its plan is aimed at developing constant communication among the systems pushing power to, and pulling power from, the grid. EPRI hopes the grid will become a self-repairing, intelligent, digital electricity delivery system. As a result, a system breakdown in one area might be compensated for by users or producers elsewhere, aborting potential blackout situations. The electric industry, encouraged by the Department of Energy, is slowly moving toward a “smart grid,” by using state-of-the-art digital switches and sensors to monitor and manage the grid—a vast improvement over today’s equipment. In December 2007, Congress passed Title XIII of the Energy Independence and Security Act (EISA). Several sections of this act are aimed at boosting a national smart grid with interoperability among regions. Such a smart grid would incorporate sensors throughout the entire delivery system, employ instant communications and computing power and use solid-

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state power electronics to sense and, where needed, control power flows and resolve disturbances instantly. The upgraded system would have the ability to read and diagnose problems. It would be self-repairing, by automatically isolating affected areas and re-routing power to keep the rest of the system running. Another advantage of this smart grid is that it would be able to seamlessly integrate an array of locally installed, distributed power sources, such as fuel cells and solar power, with traditional central-station power generation. Internet Research Tips: The GridWise Alliance, www.gridwise.org, is a consortium of public and private utility and energy companies that supports a stronger electricity grid. Members include General Electric (GE), IBM, Duke Energy and Cisco Systems. The U.S. Department of Energy offers links to a large number of resources from its Smart Grid web page: www.energy.gov/oe/services/technologydevelopment/smart-grid. Part of the focus on updating the existing U.S. grid is shifting toward the establishment of smaller, independently operated microgrids. This is part of a long-term trend known as distributed power—based on the idea that generation, storage and control of energy should be as close to its place of use as possible in order to maximize efficiencies. By 2015, both federal and some state government programs were beginning to focus on encouraging investment in distributed power. (This theory is somewhat analogous to the rapid spread of cellular telephone service into the darkest corners of the globe. Since there was a total lack of telephone infrastructure and wirelines in wide swaths of the planet, advancements in cellphone technologies proved to be a perfect solution. Local antennas efficiently serve local users.) U.S. utilities are investing to develop their own small grids, encompassing networks of sensors, switches, smart meters and software that tracks power supply, demand and delivery. For example, CenterPoint Energy in Houston, Texas is investing $138 million (including $50 million from the federal government) to implement a microgrid on a system that not only pinpoints problems or breaks in power lines, but also lessens the intensity or occurrence of overloads by informing the company’s 2 million customers when energy costs the least. DTE Energy in Detroit, Michigan; American Electric Power in Columbus, Ohio; and Sempra Energy’s San Diego

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Gas & Electric in California are installing similar systems. Microgrids are not a new concept. Local power grids have been run for years by military bases, universities and industrial plants. What is new is the smart technology that measures and analyzes data and allows customers and utilities to communicate. 22) The Energy Industry Invests in Storage Battery Technologies with an Eye on Distributed Power and Renewables The development of large-scale storage systems (essentially giant batteries) scattered around electric transmission grids would mean that generating companies could create excess power during periods of slow demand, store that electricity and then sell it through the grid a few hours later when demand picks up. It would also mean that spikes in demand, such as that caused by a massive number of air conditioners turned on during an extremely hot summer afternoon, could be served quickly by drawing on stored power. A few such large battery storage systems are already in place in Japan, Australia, Alaska and Utah. Toshiba opened its 40 megawatt (MW) system based on lithium-ion batteries in Sendai, Japan in February 2015, the world’s largest commercial battery storage operation to date. Another system, the Notrees Battery Storage Project, which opened in Texas in 2013, uses leadacid batteries and has a maximum capacity of 36 MW and can run for 40 minutes at full power. Other examples include the Rokkasho battery in Japan, which uses sodium-sulphur batteries (34 MW), and a unit in Alaska uses nickel-cadmium batteries (27 MW). Battery systems such as these not only add reliability to an electric grid, they also may lower costs and improve efficiency. If advanced batteries are eventually developed that capture significant volumes of solar- and wind-generated electricity for later use, the benefits would be immense. A major battery research effort is underway by multiple companies and government agencies worldwide. The energy storage market is forecast to grow rapidly, according to analysts at IHS. Installations could grow from 6 gigawatts in 2017 to more than 40 gigawatts by 2022. IHS believes that the U.S. will be by far the world’s largest market for such systems, and that the majority of them will be based on lithium-ion battery technology. MIT has developed liquid metal batteries that use a liquid electrolyte made from metals and heated to

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700 degrees Celsius (1,292 degrees Fahrenheit) to maintain a molten state. Meanwhile, start-up Seeo, www.seeo.com, makes a solid state battery of a polymer electrolyte material called DryLyte that may last longer than other batteries as well as store more energy. Meanwhile, a startup called Sakti3 (www.sakti3.com) has developed a solid battery made using thin-film deposition, the same process used to build microchips and flat-panel displays. Sakti3’s solid state batteries have the potential to store significantly more energy than lithium-ion batteries and are less likely to explode or catch fire if damaged (a boon for electric vehicles). In early 2015, vacuum cleaner and robotics firm Dyson invested $15 million in Sakti3, and later that year Dyson acquired the firm outright. SPOTLIGHT: Battery Energy Storage Systems For more information on battery energy storage systems, check the following company web sites: Aquion Energy www.aquionenergy.com Prudent Energy www.pdenergy.com LightSail Energy www.lightsail.com Other super-capacity storage technologies include flywheels, pumped hydro storage and compressed air energy storage. Electric car maker Tesla is now selling advanced batteries for local storage of solar generated power. For additional thoughts along these lines, visit the Electricity Storage Association at www.electricitystorage.org. SPOTLIGHT: LightSail Energy Startup LightSail Energy, www.lightsail.com , is working on large-scale energy storage based on compressed air technology that offers a cleaner and far more economical option than traditional methods. The technology uses a motor that drives a piston, compressing air in a tank. As it compresses, the air warms, converting mechanical energy to heat energy. On demand, the air is re-expanded with additional heat. LightSail reduces the amount of wasted heat using water, which, when sprayed into the tank, absorbs heat energy and is stored separately. Reintroducing the warm water into the tank raises the temperature without the need for additional energy. The company believes it can provide electricity more cheaply than a natural gas peak plant, which has rates of about 15.5 cents per kilowatt-hour. LightSail has attracted investors that include Bill Gates of Microsoft.

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Researchers at Harvard University, led by Michael Aziz, reported a breakthrough in flow batteries based on the use of a simple organic material, quinone (found in plants) as an energy storage material. This would be considerably less expensive than manufacturing flow batteries based on iron, zinc or vanadium, all of which are currently used in flow batteries. While traditional flow batteries cost as much as $700 per kilowatt-hour of storage, quinone is hoped to drive the cost down to $27 per kilowatt-hour. Aziz and his team refined the technology, demonstrating a rechargeable battery in late 2015 that offers a non-toxic flow battery using inexpensive compounds such as carbon, oxygen, nitrogen, hydrogen, iron and potassium dissolved in water. Stanford University researchers are developing thin films to enclose a positive electrode, which allows them to safely contain more lithium. When combined with a sulphur negative electrode, it creates a battery that can hold about five times as much energy by weight as current lithium batteries do. A similar lithium-sulphur battery is being studied at Oak Ridge National Laboratory, which has a solid rather than a liquid or gel-like electrolyte making it more stable. Today, most of the grid electricity storage that exists is in the form of pumped hydro systems. In this technology, water is pumped uphill to a holding tank and later released to turn a turbine and generator upon demand. The cost for this simplistic system is about $100 per kilowatt-hour of capacity, making it much cheaper than using standard battery technology. On the negative side, pumped hydro access is limited to areas with appropriate topography and water supplies. One possible alternative is a new liquid battery developed by Ambri, Inc. (www.ambri.com). Its technology builds batteries made of simple metal pucks and salt powder, which, when heated to 500 degrees Celsius, liquefies. Batteries made essentially of liquid have the potential to last for years (unlike batteries with solid electrodes that degrade over time). Ambri hopes to develop huge batteries (as large as 40-foot shipping containers), capable of supporting the grid, for below $500 per kilowatt-hour capacity. More expensive than hydro, yes it is, but applicable almost anywhere, regardless of terrain or water supply. Ambri hoped to have a commercial battery ready for shipment by early 2016, but announced layoffs in late 2015 and a push-back of its target date.

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Another potential battery material is zinc, which is plentiful and cheap. Eos Energy Storage (www.eosenergystorage.com) is working on a unit the size of a mini-refrigerator that could work on utility scale using its patented Znyth hybrid cathode battery technology. Con Edison, NRG, PNM and the National Grid in the U.S., and Enel and GDF Suez in Europe have contracted to test the new battery. A similar zinc battery is under development by Urban Electric Power (urbanelectricpower.com). Salt, stored either in the ground or in a specially constructed tower, is widely considered to be an ideal substance for energy storage as it absorbs and releases heat in a predictable and stable manner. In October 2013, Abengoa, one of the world's largest utility scale solar power developers, began operation of its Solana project about 70 miles southwest of Phoenix, Arizona. This 280 megawatt concentrated solar power (CSP) plant includes one of the world's most advanced molten salt energy storage installations. It has successfully proven capable to generate power for six hours after the sun goes down, utilizing heat stored in molten salt during the day in order to power the plant's turbines during the evening. These six hours help to satisfy peak demand during the summer evenings and early nighttime hours. The $1.45 billion plant, generating power equivalent to that needed to maintain 70,000 homes, was funded under a loan guarantee provided by the U.S. Department of Energy. A 110 megawatt CSP plant utilizing salt for energy storage went online in California's Mohave Desert in 2015, constructed by SolarReserve. Underwater storage is the focus of startup StEnSea (“Storing Energy at Sea”). Developed by the Fraunhofer Institute for Wind Energy and Energy System Technology in Kassel, Germany, the technology stores water in 12 cubic-meter vessels placed on the bottom of Lake Constance. The depth of the lake’s floor is about 100 meters, which is subject to significant atmospheric pressure exerted by the water. (That is, the pressure on the lake’s floor is about 9 times that on the lake’s surface.) The rigid concrete vessels are repeatedly filled and drained from the surrounding lake which turns connected turbines. As pressure builds, up to 3 kilowatt hours of energy are stored in each vessel. Cables carry generated power to land. The project is a pilot, and should it prove viable, the company plans to build in the Norwegian trench at a depth of 600 meters, possibly storing 20 megawatts per vessel.

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SPOTLIGHT: Hydrogen as an Energy Storage Strategy (“Power-to-Gas”) While advanced batteries are seen by most firms to be the answer to energy storage, a handful see the production of easily-stored hydrogen as an alternative answer. A firm called Hydrogenics offers technology that can use excess wind and solar to power equipment that generates hydrogen. That hydrogen can then be stored or transported for later use, including hydrogen filling stations for fuel-cell powered vehicles. See www.hydrogenics.com. In 2015, researchers at MIT and Tsinghua University in China created an electrode made of nanoparticles with a solid shell, and an interior “yolk” that can change size repeatedly without affecting the exterior shell. The discovery could significantly improve battery cycle life and provide a major boost to battery capacity and power. The system uses aluminum as the key material for the lithium-ion battery’s negative electrode (anode), and a titanium dioxide shell. The state of California is putting pressure on battery makers with a mandate that by 2020, major utilities must increase energy storage by about 1.3 gigawatts, or about 10 times the amount of storage deployed worldwide in 2011. In addition, California set a priority to encourage distributed generation, focusing on residential or neighborhood-scale solar power rather than large centralized solar farms. Batteries will be a key element in this effort. Tesla Batteries Power Homes and Offices in Addition to Electric Cars: Electric automobile maker Tesla Motors has adapted its expertise to create an innovative electric storage battery of modest cost that is big enough to provide temporary power to a home or small commercial building. The product is called Powerwall. It is available in 7kWh and 10 kWh versions. Tesla has also teamed with rooftop solar system installer and operator SolarCity to offer these local-scale energy storage products to homeowners, with the intent to store unneeded electricity generated by SolarCity’s small rooftop solar systems. Development was funded in part by a $1.8 million grant from the California Public Utilities Commission. SolarCity's business model is to offer property owners the ability to have solar systems installed on their rooftops with no money down, under long term lease and operating agreements.

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The batteries are offered under similar arrangements, under a package called DemandLogic. See www.solarcity.com/commercial/demandlogic. In November 2016, shareholder approved a merger of Tesla Motors and SolarCity. Chairman Elon Musk hopes to see the global power storage market grow from 1,000 megawatts installed in 2015 to more than 7,000 megawatts by 2025, as forecast by IHS. 23) Superconductivity Provides Advanced Electricity Distribution Technology Superconductivity is based on the concept of using super-cooled cable to distribute electricity over distance, with little of the significant loss of electric power incurred during traditional transmission over copper wires. It is one of the most promising technologies for upgrading the ailing electricity grid. Superconductivity dates back to 1911, when a Dutch physicist determined that the element mercury, when cooled to minus 452 degrees Fahrenheit, has virtually no electrical resistance. That is, it lost zero electric power when used as a means to distribute electricity from one spot to another. Two decades later, in 1933, a German physicist named Walther Meissner discovered that superconductors have no interior magnetic field. This property enabled superconductivity to be put to commercial use by 1984, when magnetic resonance imaging machines (MRIs) were commercialized for medical imaging. In 1986, IBM researchers K. Alex Muller and Georg Bednorz paved the path to superconductivity at slightly higher temperatures using a ceramic alloy as a medium. Shortly thereafter, a team led by University of Houston physicist Paul Chu created a ceramic capable of superconductivity at temperatures high enough to encourage true commercialization. In May 2001, the Danish city of Copenhagen established a first when it implemented a 30-meterlong “high temperature” superconductivity (HTS) cable in its own energy grids. Other small but successful implementations have occurred in the U.S. Internet Research Tip: For an easy-to-understand overview of superconductivity and its many current and future applications, visit the Superconductivity Technology Center of the Los Alamos National Labs: www.lanl.gov/orgs/mpa/stc Today, the Holy Grail for researchers is a quest for materials that will permit superconductivity at temperatures above the freezing point, even at room

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temperature. There are two types of superconductivity: “low-temperature” superconductivity (LTS), which requires temperatures lower than minus 328 degrees Fahrenheit; and “high-temperature” superconductivity (HTS), which operates at any temperature higher than that. The former type requires the use of liquid helium to maintain these excessively cold temperatures, while the latter type can reach the required temperatures with much cheaper liquid nitrogen. Liquid nitrogen is pumped through HTS cable assemblies, chilling thin strands of ceramic material that can carry electricity with no loss of power as it travels through the super-cooled cable. HTS wires are capable of carrying more than 130 times the electrical current of conventional copper wire of the same dimension. Consequently, the weight of such cable assemblies can be one-tenth the weight of old-fashioned copper wire. While cable for superconductivity is both exotic and expensive, the cost is plummeting as production ramps up, and the advantages can be exceptional. Increasing production to commercial levels at an economic cost, as well as producing lengths suitable for transmission purposes remain among the largest hurdles for the superconductor industry. Applications that are currently being implemented include use in electric transmission bottlenecks and in expensive engine systems such as those found in submarines. Another major player in HTS components is Sumitomo Electric Industries, the largest cable and wire manufacturer in Japan. The firm has begun commercial production of HTS wire at a facility in Osaka. In addition, Sumitomo has developed electric motors based on HTS coil. The superconducting motors are much smaller and lighter than conventional electric motors, at about 90% less volume and 80% less weight. Another leading firm, AMSC, formerly American Superconductor, sells technology to wind turbine makers, enabling them to design full 10 megawatt class superconductor wind turbines that will operate with higher efficiency than traditional models. It is also participating in advancedtechnology electric transmission projects. Advanced-generation HTS cable has been developed at American Superconductor, utilizing multiple coatings on top of a 100-millimeter substrate, a significant improvement over its earlier 40-millimeter technology. The goal is to achieve the highest level of alignment of the atoms in the superconductor material resulting in higher electrical current transmission capacity. This will increase

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manufacturing output while increasing efficiency. This is a convergence of nanotechnology with superconductivity, since it deals with materials at the atomic level. The company is well set up to increase production as demand increases. Leading Firms in Superconductivity Technology: Sumitomo Electric Industries, http://global-sei.com AMSC, www.amsc.com/about/index.html Nexans, www.nexans.com SuperPower, Inc., www.superpower-inc.com 24) Electric Utilities Adopt Coal Emissions Scrubbers While the Industry Tests Carbon Capture and Clean Coal Technologies While coal is an abundant resource in many parts of the world, it is generally burned in a manner that creates significant amounts of air pollution. On a global scale, the burning of coal produces more carbon dioxide than any other fossil fuel source. “Clean coal” technologies have been developed, but advanced technologies are enormously expensive. In the U.S., coal comes from several different regions. The Northern Appalachian area of the Eastern U.S. and the Illinois Basin in the Midwest produce coal that is high in sulfur, which emits more pollutants. In contrast are the enormous stores of coal in Wyoming and Montana, which burn at lower temperatures and produce less energy than highsulfur coal, but create less pollution. Coal from the Illinois Basin burns in an efficient manner at very high temperatures. In existing mines, the U.S. has about 237 billion tons of recoverable coal. Advanced filtering units called scrubbers were in use by about 70% of U.S. electric generating plants by the end of 2015, and will be in place at 100% of plants over the long-term. Scrubbers are multistory facilities that are built adjacent to smokestacks. They capture sulfur as the coal exhaust billows through the smokestack, and sequester it for storage before it can be cleaned. Unfortunately, scrubbers are extremely expensive. Costs of $400 million and more for a single scrubber are common. For example, Progress Energy budgeted $1 billion on the technology for three of its newer coal-burning plants, which generate enough revenue to justify the expense. Constellation Energy spent $885 million on a scrubber installation that has significantly reduced emissions from two of its coal-burning units at its Brandon Shores plant in Maryland. The installation included the replacement of two 700-foot smokestacks with a new, shorter one

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that emits clouds of steam produced in the scrubbing process. Multiple clean coal technologies are in development. Scientists at the University of Texas are developing a new technology that blasts sound waves into the flue ducts of coal-fired power plants. The noise, which registers at more than 150 decibels (about as loud as a jet engine at takeoff) causes tiny ash particles in the emission stream to vibrate and stick to larger ones, thereby making larger particles that are easier to capture by pollution control equipment like scrubbers. Yet another technology to reduce emissions is the use of photosynthesis to capture exhaust gases, such as CO2, from power plants. A company called GS CleanTech (now a part of GreenShift Corporation, www.greenshift.com) developed a CO2 Bioreactor that converts a concentrated supply of carbon dioxide into oxygen and biomass in the form of algae, which can then be converted into fuel. Coal-gasification plants could conceivably become a trend for electric generation plant construction over the long term. However, costs remain a significant obstacle. Such plants use a process that first converts coal into a synthetic gas, later burning that gas to power the electric generators. The steam produced in the process is further used to generate electricity. The process is called Integrated Gasification Combined Cycle (IGCC). While these plants are much more expensive to construct than traditional coal-burning plants, they produce much less pollution. Since the coal isn’t actually burnt, these plants can use lower-cost coal that is high in sulfur. In addition, such plants reduce the amount of mercury emitted from the use of coal by as much as 95%. Several demonstration plants have been constructed using IGCC technology, typically with government funding. U.S. plants include those in Mulberry, Florida and West Terre Haute, Indiana. Japan has constructed a demonstration plant, the Nakoso Power Station at Iwaki City. Other demonstration plants are in operation or under consideration in Europe, Asia and Australia. However, high costs and the difficulty of funding continue to create challenges. Siemens, a leading global firm in the power equipment industry, has been involved in multiple projects. American Electric Power (AEP), a Columbus, Ohio electric utility, shelved plans to build an IGCC carbon-capture plant in West Virginia. This was due to the company’s concerns that state regulators would not allow it to be reimbursed for $668 million in costs. Without substantial government support on the

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federal and state levels, power companies are unlikely to be able to afford IGCC efforts. Due to cost overruns associated with the attempt to implement state-of-the-art IGCC clean coal technologies, a plant in Mississippi quickly became one of the most expensive fossil fuel projects ever built. Mississippi Power Co.’s Kemper County plant’s price tag is expected to reach $6.4 billion, more than two and one-half times its original budget of $2.4 billion. Full operation was expected to begin at year-end 2016. An additional step that can be added to IGCC plants is the capture or “sequestration” (CCS) of carbon dioxide. The technology to do so already exists. For example, Norway’s Statoil has used it for years at its natural-gas wells in the North Sea. The sequestered carbon dioxide can be pumped underground. Fortunately, carbon dioxide can be used in oil and gas wells to enhance recovery in a process known as CO2 flooding. These floods sit near large, natural reservoirs of CO2. Internet Research Tip: Carbon Capture and Sequestration (CCS) For an excellent discussion of carbon capture and sequestration technologies, research and demonstration projects, see the U.S. Department of Energy’s web site for the NETL (National Energy Technology Laboratory) www.netl.doe.gov/technologies/carbon_seq/index.ht ml. Carbon capture technologies may have wide use outside of the electric utilities industry. The Skyonic plant near San Antonio, Texas, which opened in late 2014, captures carbon emitted during the manufacture of cement, and uses it to produce sodium bicarbonate and hydrochloric acid by its reaction to rock salt. The plant received $28 million in funding from the U.S. Department of Energy. It can capture 83,000 tons of carbon dioxide per year, and because it saves carbon emissions made using traditional chemical production processes, it claims an additional 220,000 tons per year. In the U.S., recent federal stimulus funding included money for CCS research and demonstration. FutureGen Alliance, www.futuregenalliance.org, a project involving a utilities consortium funded by subsidies from the U.S. government, is building a plant in Illinois to test cutting-edge techniques for converting coal to gas, capturing and storing pollutants and burning gas for power. This is referred to as an oxy-combustion technology, which

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has a goal of capturing 90% of power plant carbon emissions. FutureGen Alliance has an agreement with the DOE to build the FutureGen 2.0 CO2 pipeline network and CO2 storage site to be built in Morgan County, Illinois. In September 2014, FutureGen received its EPA permit for carbon storage at the site. A number of companies are testing carbon capture technologies worldwide. For example, the Petra Nova Carbon Capture Project is being constructed by NRG Energy and Japan-based JX Nippon. The $1 billion project is receiving $167 million in support from the U.S. Department of Energy. The project is designed to capture carbon dioxide at a rate of up to 90% of emissions. Construction was slated to be completed in 2016. The project will trap 1.6 million tons of carbon per year from a unit of NRG’s WA Parish electric generation plant, and will pipe it 82 miles to the West Ranch Oil Field. Nonetheless, utility firms have little enthusiasm for continuing development of carbon capture projects. The investment needed can’t be justified by the economics in today’s environment of extremely low natural gas prices. 25) Bio-plastics Become a Reality/Plastic Packaging Made from Corn and Soy The next big thing in plastics is the use of corn sugar, sugarcane or soybeans as opposed to petrochemicals to make packaging that is biodegradable. The hope is also that bio-plastics may be cheaper to produce than their traditional petrochemical-based counterparts, as well as more environmentally acceptable. Bio-refiner Cargill, Inc. is vastly increasing its production of soybeans and corn derivatives to make plastics for use in carpets, disposable plates and cups, candles, lipsticks and body panels for automobiles and construction equipment. Metabolix, a Massachusetts-based bioscience company, made a polyester called polyhydroxy-alkanoate (PHA) that was among the first 100% bioplastics. It is durable, can withstand extreme heat and is biodegradable. Metabolix produced and marketed “Mirel” branded PHA pellets from its corn mill in Clinton, Iowa that generated 110 million pounds of PHA each year. Mirel is used by Newell Rubbermaid to make a biodegradable Paper Mate brand pen that sells for only slightly more than non-biodegradable plastic pens. Metabolix also produced the Mvera brand of compostable bags (the Mvera compostable film resin business was acquired by AKRO-PLASTIC GmbH in late 2014). Metabolix sold its bioplastics business in late 2016 to

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Korean firm CJ CheilJedang (www.cj.co.kr/cjen/index). Plastic packaging made from corn sugars is rapidly gaining favor over oil-based plastics with retailers such as Wal-Mart, Wild Oats Market and food suppliers including Del Monte and Newman’s Own. The corn-based plastics are manufactured by NatureWorks, a subsidiary of Cargill, Inc., which has doubled its production capacity to 140,000 metric tons a year of Ingeo, a bioplastic used in fresh food containers and textiles. This can be considered a part of a broader movement towards the use of renewables by major corporations. For example, General Electric (GE) has a landmark “Ecomagination” program of dozens of products including wind power, more efficient jet engines or new high-efficiency power generators that meet government standards for energy efficiency. Industry analysts see these developments as part of the growth of an environmental technology sector. BASF offers Ecovio and Ecoflex biodegradable and compostable plastics used for coating paper and manufacturing shrink films. Both products contain higher percentages (75% and 66% respectively) of bio-based materials such as corn, making them faster to break down in landfills. Massachusetts-based Novomer has a line of products under the Converge brand that combine traditional chemical feed stocks with carbon dioxide and carbon monoxide that would otherwise be released into the air. The resulting combination is material that is used in plastics and coatings used in a wide range of conventional polyurethane applications including flexible and rigid foams, adhesives, sealants, coating and elastomers. 26) New Display Technologies with PLEDs State of the art LEDs (light emitting diodes) have the potential to greatly reduce energy usage while providing very high quality lighting and displays. In addition, solar power is now being combined with the latest LEDs to create fully-renewable energy light sources. The LED was first developed in 1962 at the University of Illinois at Urbana-Champaign. LEDs are important to a wide variety of industries, from wireless telephone handsets to signage to displays for medical equipment, because they provide a very high quality of light with very low power requirements. They also have an extremely long useful life and produce little heat output. All of these characteristics are great improvements over a conventional incandescent bulb or the LCD (liquid crystal display).

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On a groundbreaking day in 1989 at Cambridge University, researchers discovered that organic LEDs (OLEDs) could be manufactured using polymers. The plastic substance known as PPV (polyphenylenevinylene) emits light when layered between electrodes. The resulting product is referred to as a PLED (polymer light emitting diode). Soon, many industries realized the advantages of PLEDs as display devices that emit their own light. In contrast, the older LCD (liquid crystal display) technology works on a system whereby a separate light source has to be filtered in several stages to create the desired image. PLED is more direct, more efficient and much higher quality. It is also an excellent system for the manufacture of extremely thin displays that can work at very low voltage. The useful life of a PLED can be 40,000 hours. Advanced displays utilizing PLED can be viewed at angles approaching 180 degrees, and they can produce quality images in flat panels, even at very low temperatures. Cambridge Display Technology (CDT, www.cdtltd.co.uk), a subsidiary of Sumitomo Chemical Group, points out several exciting uses for these polymer LEDs that may develop over the midterm. For example, the low energy requirements of PLEDs could be used to create packaging for consumer or business goods that have a display incorporated into the front of the package. This display could provide a changing, entertaining and highly informative description of the product to be found within the package. Since PLEDs can be incorporated into flexible substrates, displays for advertising or information purposes can be built in the shape of curves. The possibilities are nearly endless. Most likely, new uses will develop as larger and larger numbers of PLEDs are manufactured and higher volume leads to lower prices. For example, Canadian technology firm Carmanah Technologies Corp. (www.carmanah.com) combined LEDs with solar panels for use in marine buoys. It has expanded further into lighting products for airfields, railways and general outdoor illumination, providing lights that are easy to install as well as powered entirely by renewable solar energy. 27) Apparel Manufacturing Goes Green As industries from packaged foods to automobiles focus on eco-friendly products and processes, apparel and textiles are going green as well. Organic cotton is a major trend in apparel retailing with firms such as Nike, Timberland, Patagonia, Eileen Fisher and Levi Strauss.

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Patagonia embraced the organic cotton trend in 1996 when it announced that its cotton items would be made exclusively of organic fibers. The switch doubled the firm’s raw material costs. Today, Patagonia’s sportswear line is still made of 100% organic cotton, while it is studying ways to use dyes that are organic without suffering yet another significant hike in costs. In 2011, a group of apparel retailers, manufacturers and government and non-government agencies from around the world launched the Sustainable Apparel Coalition. The coalition promotes environmental sustainability by measuring and evaluating apparel and footwear, spotlighting promising new technologies and watching for chances to improve social and environmental practices. Members include Adidas, Duke Center for Sustainability and Commerce, Gap, Inc., H&M, Nike, the U.S. Environmental Protection Agency and Wal-Mart. Initial focus for the group is on the global supply chain. The Coalition created The Higg Index, which catalogs apparel based on fuel usage, pollutant production and other issues seen as threats to the environment. There is a wrinkle to the organic fiber trend, and that is that apparel made with synthetic fibers such as polyester is easier to care for and therefore may require less energy over the long run. Although polyester is made of materials (plastics) that take petrochemicals and energy to make, it washes easily in cold water, is stain-resistant and can air-dry. Many cotton garments, in contrast, suggest hot or warm water washing and tumble drying followed by ironing. Some green apparel causes other problems in areas such as durability. Apparel made with plant fibers, such as corn, melts when ironed. Bamboo fiber quickly wears out when abraded and banana fiber tends to scratch. Manufacturers are experimenting with ways to solve these problems. For example, corn fiber shirts made with enhanced seams may not need ironing. Levi Strauss conducted a life-cycle assessment in 2007 of some of its major products, finding that 49% of the water use during the lifetime of its 501 brand jeans occurred when the cotton was grown. (Agriculture is a notorious heavy user of water.) Another 45% of the water was used by consumers to wash the jeans (on average 100 times). As a result, Levi’s joined the Better Cotton Initiative (http://bettercotton.org), which focuses on teaching cotton farmers in Pakistan, India, Brazil and Mali how to grow the crop with less water. Levi’s hoped

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to use a 20% blend of the new cotton in its products. Meanwhile, the company launched the Waste