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Robert Weissbourd
RW Ventures, LLC
CEii Trentino
September 11, 2010
The Energy of the Future for the
Economy of the Present:
Business Opportunities in
the Green Economy
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities Arising from Systems
V. Sustainability Strategies
The Next Economy is Green
The next American economy will be… low-carbon.
-- Larry Summers, Chief Economic Adviser to the President
MillionsofU.S.Dollars
Investment in Building Energy
Efficiency Sub-Sectors
1,200
1,000
800
600
400
200
0
2005 2006 2007 2008 2009
Source: Cleantech Group, LLC
2030
Source: Bloomberg New Energy Finance
Expected Global Annual Clean
Energy Investment
BillionsofU.S.Dollars
600
500
400
300
200
100
0
2005
2010
2015
2020
2005
What Exactly IS the Green Economy?
First, Drivers …
Global Warming and
Pollution
High Fossil Fuel Prices Demand for Environmentally
Friendly Products
What Exactly IS the Green Economy?
First, Drivers …
Demand for low carbon technologies is driving growth of Green Tech.
Demand for clean energy
generation
Demand for products that
reduce energy consumption
Demand for products that
reduce pollution
Increasing Clean Energy Generation
Clean Energy
Sources
Clean energy growth spans generation, storage, and infrastructure sectors.
Wave Energy Biomass Power
Wind Geothermal Solar Fuel Cells Hydro
Reducing Energy Consumption
Products that
conserve energy
Reducing Energy Consumption
Products that
conserve energy
Processes that
conserve energy
Systems that
conserve energy
Reducing Energy Consumption
Products that
conserve energy
Processes that
conserve energy
Reduced consumption opportunities run across and beyond the economy.
An Info-Tech Analogy
Like IT, Green Tech will affect the way every company does business.
Producers Users
Many Segments of the Green Economy
The segments of the green economy are varied and ill defined.
Function Category Segment
Increase
Clean Energy
Generation
Energy source Wind Solar Geothermal Biopower Hydro Wave Alt. Fuels
Energy storage Fuel Cells Advanced Batteries Hybrid Systems
Energy infrastructure Transmission Management Smart Grids
Reduce
consumption
of energy
and natural
resources
Products
Appliances Lighting Building
Materials
Water
Conservation
Audits &
Retrofits
Sust. Design &
Construction
Alt.
Vehicles
Processes
Life cycle design Packaging Smart Production Recycling
Sustainable Forestry Sustainable Aquaculture Sustainable Food Processing
Systems Logistics Transit Systems Local Food Systems
Reduce
pollution
Products Non-toxic and renewable materials Non-toxic cleaning products
Systems Ecosystem Regeneration Industrial Ecology Land Conservation
Services
Waste and Wastewater
Management
Air and Water
Purification
Emissions
control
Organic
Farming
Support Services Research &
Development
Advocacy &
Policy
Education Green
Consulting
Green
Finance
Green Real
Estate
DISCUSSION
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities - Systems Change
V. Sustainability Strategies
The Puget Sound Region’s Building Energy Efficiency “Cluster”
Understanding Production Clusters
Identifying Opportunities in the Green Economy
Understanding Emerging Markets and their Supply Chains:
A Wind Power Example
Identifying Opportunities in the Green Economy
Materials Components Manufacturers Logistics &
Operations
End Use
Understanding Emerging Markets and their Supply Chains:
A Wind Power Example
Firms can adapt existing production capacities to fit emerging markets.
Example: Joining the Green Supply Chain
Auto-supplier created gearbox housings product line for wind developer.
New 42,000 sq foot
facility
Gearbox housings
Example: Spotting an emerging market
Welding company added streetcar and wave energy product lines.
Example: Reducing Pollution by Turning
Waste into Profit
Example: Reducing Pollution by Turning
Waste into Profit
Alternative uses for waste create sales and production opportunities.
DISCUSSION
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities - Systems Change
V. Sustainability Strategies
Regional Green Strategy Development
Identify Emerging
Opportunities
Apply established economic development strategies to green opportunities.
sectors
Regional Green Strategy Development
Identify Emerging
Opportunities
Apply established economic development strategies to green opportunities.
Analyze
Regional Assets
sectors
Regional Green Strategy Development
Identify Emerging
Opportunities
Apply established economic development strategies to green opportunities.
Analyze
Regional Assets
Determine
Development Needs
sectors
Regional Green Strategy Development
Identify Emerging
Opportunities
Apply established economic development strategies to green opportunities.
Analyze
Regional Assets
Determine
Development Needs
Develop Products and
Services
sectors
Example: Regional Support for Transition to Wind
Regions target growth strategies building on existing companies.
Great Lakes Wind Network (GLWN)
Emerging Opportunities:
 Wind energy sector growing
 Support for wind industry from
government
Regional Assets:
 Strong component manufacturing
base
 Home to R&D centers
 Existing network of manufacturers
(WIRE-Net)
Development Needs:
 Increased connections between
manufacturing base and wind sector
 Manufacturers knowledge of wind
energy sector needs
Products and Services:
 Interactive supply chain map
 Supply chain workshops
 On-site evaluations
Example: Converting an Industry
Green Building Products Initiative (GBPI) in Pittsburgh
Building Supply Industry
Products and Services:
 Identification of potential product lines
 Green training events and information exchanges
 Grants for innovative product development
 Online Green Building Product Directory
 Assistance with certification, labeling, marketing, etc.
 Help retooling process to meet green standards
Example: Building Market Demand
Energy Score generates demand and reduces transaction costs for retrofits.
DISCUSSION
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities - Systems Change
V. Sustainability Strategies
Demand for local goods creates local business opportunities
Local Production
Local Production Systems
 Food grown/produced locally
 Irv and Shelly’s Fresh
Picks
 Chicago’s Downtown
Farmstand
 Local supply chain
 Great Lakes Wind
Network
 Green Building Products
Initiative
Transit Oriented Development
and Transportation
Infrastructure
TOD spurs new economic activity while reducing costs and carbon.
Spatial Efficiency
 Improve transportation
infrastructure
 Encourage compact, mixed-
use, walkable communities
 Support biking through paths
and racks
DISCUSSION
Today’s Agenda
I. Defining the Green Economy
II. Direct Business Opportunities
III. Regional Business Strategies
IV. Indirect Opportunities - Systems Change
V. Sustainability Strategies
Sustainability: Good for All Companies
Acting “greenly” is good for the bottom line.
Cost Savings Resilience Branding
Liability Avoidance
A Path to Sustainability
Specific actions determined by company characteristics.
Example of Sustainable Success
South Coast Mold, Inc.
 35-year-old tool and die
shop with 8 employees in
Irvine, CA
 In one year:
 reduced energy by 20%
 saved over $1,600 in
energy costs
 recorded highest
revenues in company
history
Sustainability generates cost savings and brand enhancement.
DISCUSSION
Robert Weissbourd
RW Ventures, LLC
CEii Trentino
September 11, 2010
The Energy of the Future for the
Economy of the Present:
Business Opportunities in
the Green Economy

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The Energy of the Future for the Economy of the Present: Business Opportunities in the Green Economy (English)

  • 1. Robert Weissbourd RW Ventures, LLC CEii Trentino September 11, 2010 The Energy of the Future for the Economy of the Present: Business Opportunities in the Green Economy
  • 2. Today’s Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities Arising from Systems V. Sustainability Strategies
  • 3. The Next Economy is Green The next American economy will be… low-carbon. -- Larry Summers, Chief Economic Adviser to the President MillionsofU.S.Dollars Investment in Building Energy Efficiency Sub-Sectors 1,200 1,000 800 600 400 200 0 2005 2006 2007 2008 2009 Source: Cleantech Group, LLC 2030 Source: Bloomberg New Energy Finance Expected Global Annual Clean Energy Investment BillionsofU.S.Dollars 600 500 400 300 200 100 0 2005 2010 2015 2020 2005
  • 4. What Exactly IS the Green Economy? First, Drivers … Global Warming and Pollution High Fossil Fuel Prices Demand for Environmentally Friendly Products
  • 5. What Exactly IS the Green Economy? First, Drivers … Demand for low carbon technologies is driving growth of Green Tech. Demand for clean energy generation Demand for products that reduce energy consumption Demand for products that reduce pollution
  • 6. Increasing Clean Energy Generation Clean Energy Sources Clean energy growth spans generation, storage, and infrastructure sectors. Wave Energy Biomass Power Wind Geothermal Solar Fuel Cells Hydro
  • 8. Reducing Energy Consumption Products that conserve energy Processes that conserve energy
  • 9. Systems that conserve energy Reducing Energy Consumption Products that conserve energy Processes that conserve energy Reduced consumption opportunities run across and beyond the economy.
  • 10. An Info-Tech Analogy Like IT, Green Tech will affect the way every company does business. Producers Users
  • 11. Many Segments of the Green Economy The segments of the green economy are varied and ill defined. Function Category Segment Increase Clean Energy Generation Energy source Wind Solar Geothermal Biopower Hydro Wave Alt. Fuels Energy storage Fuel Cells Advanced Batteries Hybrid Systems Energy infrastructure Transmission Management Smart Grids Reduce consumption of energy and natural resources Products Appliances Lighting Building Materials Water Conservation Audits & Retrofits Sust. Design & Construction Alt. Vehicles Processes Life cycle design Packaging Smart Production Recycling Sustainable Forestry Sustainable Aquaculture Sustainable Food Processing Systems Logistics Transit Systems Local Food Systems Reduce pollution Products Non-toxic and renewable materials Non-toxic cleaning products Systems Ecosystem Regeneration Industrial Ecology Land Conservation Services Waste and Wastewater Management Air and Water Purification Emissions control Organic Farming Support Services Research & Development Advocacy & Policy Education Green Consulting Green Finance Green Real Estate
  • 13. Today’s Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities - Systems Change V. Sustainability Strategies
  • 14. The Puget Sound Region’s Building Energy Efficiency “Cluster” Understanding Production Clusters
  • 15. Identifying Opportunities in the Green Economy Understanding Emerging Markets and their Supply Chains: A Wind Power Example
  • 16. Identifying Opportunities in the Green Economy Materials Components Manufacturers Logistics & Operations End Use Understanding Emerging Markets and their Supply Chains: A Wind Power Example Firms can adapt existing production capacities to fit emerging markets.
  • 17. Example: Joining the Green Supply Chain Auto-supplier created gearbox housings product line for wind developer. New 42,000 sq foot facility Gearbox housings
  • 18. Example: Spotting an emerging market Welding company added streetcar and wave energy product lines.
  • 19. Example: Reducing Pollution by Turning Waste into Profit
  • 20. Example: Reducing Pollution by Turning Waste into Profit Alternative uses for waste create sales and production opportunities.
  • 22. Today’s Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities - Systems Change V. Sustainability Strategies
  • 23. Regional Green Strategy Development Identify Emerging Opportunities Apply established economic development strategies to green opportunities. sectors
  • 24. Regional Green Strategy Development Identify Emerging Opportunities Apply established economic development strategies to green opportunities. Analyze Regional Assets sectors
  • 25. Regional Green Strategy Development Identify Emerging Opportunities Apply established economic development strategies to green opportunities. Analyze Regional Assets Determine Development Needs sectors
  • 26. Regional Green Strategy Development Identify Emerging Opportunities Apply established economic development strategies to green opportunities. Analyze Regional Assets Determine Development Needs Develop Products and Services sectors
  • 27. Example: Regional Support for Transition to Wind Regions target growth strategies building on existing companies. Great Lakes Wind Network (GLWN) Emerging Opportunities:  Wind energy sector growing  Support for wind industry from government Regional Assets:  Strong component manufacturing base  Home to R&D centers  Existing network of manufacturers (WIRE-Net) Development Needs:  Increased connections between manufacturing base and wind sector  Manufacturers knowledge of wind energy sector needs Products and Services:  Interactive supply chain map  Supply chain workshops  On-site evaluations
  • 28. Example: Converting an Industry Green Building Products Initiative (GBPI) in Pittsburgh Building Supply Industry Products and Services:  Identification of potential product lines  Green training events and information exchanges  Grants for innovative product development  Online Green Building Product Directory  Assistance with certification, labeling, marketing, etc.  Help retooling process to meet green standards
  • 29. Example: Building Market Demand Energy Score generates demand and reduces transaction costs for retrofits.
  • 31. Today’s Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities - Systems Change V. Sustainability Strategies
  • 32. Demand for local goods creates local business opportunities Local Production Local Production Systems  Food grown/produced locally  Irv and Shelly’s Fresh Picks  Chicago’s Downtown Farmstand  Local supply chain  Great Lakes Wind Network  Green Building Products Initiative
  • 33. Transit Oriented Development and Transportation Infrastructure TOD spurs new economic activity while reducing costs and carbon. Spatial Efficiency  Improve transportation infrastructure  Encourage compact, mixed- use, walkable communities  Support biking through paths and racks
  • 35. Today’s Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities - Systems Change V. Sustainability Strategies
  • 36. Sustainability: Good for All Companies Acting “greenly” is good for the bottom line. Cost Savings Resilience Branding Liability Avoidance
  • 37. A Path to Sustainability Specific actions determined by company characteristics.
  • 38. Example of Sustainable Success South Coast Mold, Inc.  35-year-old tool and die shop with 8 employees in Irvine, CA  In one year:  reduced energy by 20%  saved over $1,600 in energy costs  recorded highest revenues in company history Sustainability generates cost savings and brand enhancement.
  • 40. Robert Weissbourd RW Ventures, LLC CEii Trentino September 11, 2010 The Energy of the Future for the Economy of the Present: Business Opportunities in the Green Economy

Editor's Notes

  1. Chart on Left: in case you can’t read the legend, the sectors represented are: wind, solar, biomass and waste to energy, biofuels, small hydro, and geothermal, marine, and low carbon technology Chart on right – looking at investment in building energy efficiency subsectors of buildings, glass, lighting, appliances and other in the U.S. only An additional study by the International Energy Agency, not represented here, showed that over the past three years, annual investments in low-carbon energy technologies averaged approximately USD 165 billion. Implementing a scenario with strong support for a low carbon future would require investments to reach approximately USD 750 billion per year by 2030 and rise to over USD 1.6 trillion per year from 2030 to 2050. The level of investment doubles in the latter period as a result of increased demand for cars and other consumer products, which rises alongside incomes in emerging and developing countries. --http://www.iea.org/textbase/npsum/etp2010sum.pdf
  2. Harmful effects of carbon in atmosphere on climate and other pollution (greenhouse effect) and increasing fossil fuel prices are causing people to look for ways to reduce carbon emissions and other pollution. The demand for low carbon technologies is creating a market for alternative energy sources and technologies that reduce consumption of (fossil-based/dirty) energy as well as pollution. Other potential drivers of this market are a desire for energy independence and concerns about national security. Demand for low carbon is the driver of the green economy, not the goal
  3. Harmful effects of carbon in atmosphere on climate and other pollution (greenhouse effect) and increasing fossil fuel prices are causing people to look for ways to reduce carbon emissions and other pollution. The demand for low carbon technologies is creating a market for alternative energy sources and technologies that reduce consumption of (fossil-based/dirty) energy as well as pollution. Other potential drivers of this market are a desire for energy independence and concerns about national security. Demand for low carbon is the driver of the green economy, not the goal
  4. Top: wave, biomass Bottom: Wind, geothermal, solar, fuel cells, hydro
  5. Products that conserve energy: insulation, compact fluorescent light bulbs, hybrid vehicles, energy efficient/insulating windows (all pictured) are among the many materials and technologies that when installed reduce the overall amount of energy that is used. This is focused entirely on the end-use and not on the energy or carbon emissions expended during the products’ production. In contrast: Processes that conserve energy: Products made with processes that conserve energy may not reduce energy in their end use, but are in higher demand because of the reduced energy/emissions/waste in their production. This is represented by an image sleek-looking production line for CFLs, although CFLs are not a great example to illustrate a energy-saving process since their end use is also energy-saving. Systems that conserve energy: This focuses on systems, such as transportation infrastructure/transit oriented development as well as local production systems that if implemented reduce systemic consumption of energy.
  6. Products that conserve energy: insulation, compact fluorescent light bulbs, hybrid vehicles, energy efficient/insulating windows (all pictured) are among the many materials and technologies that when installed reduce the overall amount of energy that is used. This is focused entirely on the end-use and not on the energy or carbon emissions expended during the products’ production. In contrast: Processes that conserve energy: Products made with processes that conserve energy may not reduce energy in their end use, but are in higher demand because of the reduced energy/emissions/waste in their production. This is represented by an image sleek-looking production line for CFLs, although CFLs are not a great example to illustrate a energy-saving process since their end use is also energy-saving. Systems that conserve energy: This focuses on systems, such as transportation infrastructure/transit oriented development as well as local production systems that if implemented reduce systemic consumption of energy.
  7. Products that conserve energy: insulation, compact fluorescent light bulbs, hybrid vehicles, energy efficient/insulating windows (all pictured) are among the many materials and technologies that when installed reduce the overall amount of energy that is used. This is focused entirely on the end-use and not on the energy or carbon emissions expended during the products’ production. In contrast: Processes that conserve energy: Products made with processes that conserve energy may not reduce energy in their end use, but are in higher demand because of the reduced energy/emissions/waste in their production. This is represented by an image sleek-looking production line for CFLs, although CFLs are not a great example to illustrate a energy-saving process since their end use is also energy-saving. Systems that conserve energy: This focuses on systems, such as transportation infrastructure/transit oriented development as well as local production systems that if implemented reduce systemic consumption of energy.
  8. Chart is broken down by the function of various green economy segments. The final category supports other actors in the green economy but is not itself a central player.
  9. Also talk about the wide variety of materials, components and human capital that can open doors for a companies; opportunities across large spectrum Examples (many more in folder of notes): Materials: Steel Aluminum Rubber Wood Fiberglass Silica Limestone Borates Recycled glass Soda ash Components: Bond wire Diode Nacelle Case, Frame Brakes Ball Bearings Motors Gear box Encapsulant Inverter Pump Human Capital: redeployment of skilled workers; former Maytag production workers attract windmill blade co.
  10. Also talk about the wide variety of materials, components and human capital that can open doors for a companies; opportunities across large spectrum Examples (many more in folder of notes): Materials: Steel Aluminum Rubber Wood Fiberglass Silica Limestone Borates Recycled glass Soda ash Components: Bond wire Diode Nacelle Case, Frame Brakes Ball Bearings Motors Gear box Encapsulant Inverter Pump Human Capital: redeployment of skilled workers; former Maytag production workers attract windmill blade co.
  11. Three-M Tool and Machine, Inc. Automotive industry supplier won a 5-year, $7 million contract to produce gearbox housings for Clipper Windpower Opened 42,000 square-foot facility, purchased new equipment Anticipated hiring 20 new workers to keep up with demand Company based in Commerce Township, MI; new facility in nearby Wixom, MI Spent $7.5 million on new milling and turning machines, $2.5 million on pair of 30-ton cranes. New facility and equipment will enable company to machine parts more quickly.
  12. Oregon Iron Works (OIW) Welding and fabrication shop since 1945 Entered industries including defense, nuclear, streetcars and ocean wave energy system Subsidiary company United Streetcar recently became the only streetcar producer in the U.S. Poised to meet growing demand for streetcars across county, allowing them to hire many more workers. OIW began as a traditional welding and fabrication shop in 1945, with a focus on the hydroelectric, bridge and civil construction industries. Since then they have entered numerous industries, from defense to nuclear to more recently streetcars and ocean wave energy systems. OIW has proven itself able to adapt its technologies to new products. The company has successfully diversified and expanded into new markets, going from 12 employees and $850,000 in sales in 1975 to 400 employees and $120 million in sales in 2009. Subsidiary company United Streetcar recently became only streetcar manufacturer in U.S – how they did it: Recognized the void When OIW VP Chandra Brown heard that Portland imported streetcars for its system from the Czech Republic (a company called Skoda) because there were no domestic suppliers, she realized her company could fill the void. Solicited help from the government Reached out to city and county officials who in turn helped them contact their congressional delegation to request a $4 million appropriation to build a prototype streetcar, which they were granted. Obtained an exclusive license to manufacture and sell the Skoda streetcars in the U.S., rather than designing their own car from scratch. Saved time and money, especially because OIW is primarily a manufacturer and not a designer Adapted existing technologies to build the streetcar. The prototype car successfully passed all tests and is ready for market. United Streetcar is now poised to meet the demand for streetcars across the country. Several cities across the United States are developing streetcar systems which, as a form of public transit, promote location efficiency and reduce carbon emissions from cars United Streetcar has a contract to build six more cars for Portland, OR and seven cars for Tuscon, AZ. OIW hired 20 additional workers for streetcar production, and with the capacity to make 20-50 streetcars annually, they may be able to hire up to 300 new employees as more orders come in. Additionally, the streetcars are made up of parts from 100+ vendors who may see an uptick in business and employment due to the streetcar market OIW has a knack for identifying a niche, figuring out how to build it, and then spreading the story. They have also been very successful partnering with the government.
  13. First example – waste to energy, wood scraps to biomass fuel; companies with a byproduct of wood or agricultural residue may be able to sell their residue as fuel for a biomass power plant or to be turned into cellulosic ethanol. Companies could also install technology to burn their residue on their own site to reduce heating and electricity costs. Second example - by-product synergy, waste to profit Company A’s waste (in this case non-recyclable plastic)  Company B’s product (in this case plastic curb stop) Photos based on example of Curb Appeal and Baxter Healthcare, among other companies in Chicago Waste to Profit Network Curb Appeal Story: Curb Appeal Materials uses unrecyclable plastics from Baxter Healthcare, computer casings from the City of Chicago Household Hazardous Waste and Computer Recycling Facility and paint buckets from Sherwin Williams in the construction of curb stops. The curb stops are in turn installed at Network member facilities using Cook Composites and Polymers , the City of Chicago Department of Fleet Management and the Chicago Center for Green Technology. WASTE INVOLVED Unrecyclable plastic (mixed, contaminated plastic) In general, it is not economically viable to separate and recycle mixed and contaminated plastics in the United States. Network member, Curb Appeal Materials, developed a technology to recycle mixed and contaminated plastics into an extrudable building material suitable for numerous applications. With this innovative technology developed and market ready, Curb Appeal was seeking new sourcing and market opportunities for its application. THE WASTE TO PROFIT CONNECTION Chicago Waste to Profit Team Members identified sources of mixed and contaminated plastics at Baxter Healthcare and Sherwin Williams and combined them with recycled computer casings collected from Chicago citizens at the City of Chicago’s Household Hazardous Chemical and Computer Recycling Facility. The City of Chicago and Cook Composites and Polymers purchased curb stops made from the extruded materials and Sherwin Williams requested a sound wall to enclose prohibitively loud equipment on the factory floor. This effectively closed an industrial loop by productively reusing waste generated by these facilities at those same facilities.  ACHIEVEMENTS 15 Tons of plastic waste diverted from landfill to date; likely 50+ additional tons will be diverted from spin-off projects New standards established for City Department procurement CO2 diverted by use of low energy recycling into new material as opposed to landfill Potential for jobs to be created as business grows Closed loop life cycle for previously non-recyclable plastics
  14. First example – waste to energy, wood scraps to biomass fuel; companies with a byproduct of wood or agricultural residue may be able to sell their residue as fuel for a biomass power plant or to be turned into cellulosic ethanol. Companies could also install technology to burn their residue on their own site to reduce heating and electricity costs. Second example - by-product synergy, waste to profit Company A’s waste (in this case non-recyclable plastic)  Company B’s product (in this case plastic curb stop) Photos based on example of Curb Appeal and Baxter Healthcare, among other companies in Chicago Waste to Profit Network Curb Appeal Story: Curb Appeal Materials uses unrecyclable plastics from Baxter Healthcare, computer casings from the City of Chicago Household Hazardous Waste and Computer Recycling Facility and paint buckets from Sherwin Williams in the construction of curb stops. The curb stops are in turn installed at Network member facilities using Cook Composites and Polymers , the City of Chicago Department of Fleet Management and the Chicago Center for Green Technology. WASTE INVOLVED Unrecyclable plastic (mixed, contaminated plastic) In general, it is not economically viable to separate and recycle mixed and contaminated plastics in the United States. Network member, Curb Appeal Materials, developed a technology to recycle mixed and contaminated plastics into an extrudable building material suitable for numerous applications. With this innovative technology developed and market ready, Curb Appeal was seeking new sourcing and market opportunities for its application. THE WASTE TO PROFIT CONNECTION Chicago Waste to Profit Team Members identified sources of mixed and contaminated plastics at Baxter Healthcare and Sherwin Williams and combined them with recycled computer casings collected from Chicago citizens at the City of Chicago’s Household Hazardous Chemical and Computer Recycling Facility. The City of Chicago and Cook Composites and Polymers purchased curb stops made from the extruded materials and Sherwin Williams requested a sound wall to enclose prohibitively loud equipment on the factory floor. This effectively closed an industrial loop by productively reusing waste generated by these facilities at those same facilities.  ACHIEVEMENTS 15 Tons of plastic waste diverted from landfill to date; likely 50+ additional tons will be diverted from spin-off projects New standards established for City Department procurement CO2 diverted by use of low energy recycling into new material as opposed to landfill Potential for jobs to be created as business grows Closed loop life cycle for previously non-recyclable plastics
  15. Step 1: Identify emerging green market opportunities High level: look at growth sectors in region and nation (image 1) Understand supply chains and cluster activities for growth sectors (image 2) Examine market enabling environment, i.e. barriers and incentives: shifting consumer and B2B demand transaction costs government requirements or subsidies Step 2: Analyze the region’s assets in relation to green sectors Existing firms in green supply chains/clusters (image 5) Existing firms that could easily transition Human capital – necessary skills in labor pool? (image 4) Infrastructure (image 3) Public and civic institutional environment Step 3: Determine asset and market development needs Financing (image 6) Employee training (image 7) Supply chain development firm recruitment or start up Cooperative networks R&D and technical development Barriers to market emergence (image 8) Step 4: Develop and deliver products and services to address needs Clean tech venture capital funds (image 9) Green cluster based training institutes Clean tech incubators – commercialization support Networks of stakeholders – firms, researchers, financial institutions, utilities, industry associations, etc. (image 10) Shared R&D, market analysis, on-going information, etc.
  16. Step 1: Identify emerging green market opportunities High level: look at growth sectors in region and nation (image 1) Understand supply chains and cluster activities for growth sectors (image 2) Examine market enabling environment, i.e. barriers and incentives: shifting consumer and B2B demand transaction costs government requirements or subsidies Step 2: Analyze the region’s assets in relation to green sectors Existing firms in green supply chains/clusters (image 5) Existing firms that could easily transition Human capital – necessary skills in labor pool? (image 4) Infrastructure (image 3) Public and civic institutional environment Step 3: Determine asset and market development needs Financing (image 6) Employee training (image 7) Supply chain development firm recruitment or start up Cooperative networks R&D and technical development Barriers to market emergence (image 8) Step 4: Develop and deliver products and services to address needs Clean tech venture capital funds (image 9) Green cluster based training institutes Clean tech incubators – commercialization support Networks of stakeholders – firms, researchers, financial institutions, utilities, industry associations, etc. (image 10) Shared R&D, market analysis, on-going information, etc.
  17. Step 1: Identify emerging green market opportunities High level: look at growth sectors in region and nation (image 1) Understand supply chains and cluster activities for growth sectors (image 2) Examine market enabling environment, i.e. barriers and incentives: shifting consumer and B2B demand transaction costs government requirements or subsidies Step 2: Analyze the region’s assets in relation to green sectors Existing firms in green supply chains/clusters (image 5) Existing firms that could easily transition Human capital – necessary skills in labor pool? (image 4) Infrastructure (image 3) Public and civic institutional environment Step 3: Determine asset and market development needs Financing (image 6) Employee training (image 7) Supply chain development firm recruitment or start up Cooperative networks R&D and technical development Barriers to market emergence (image 8) Step 4: Develop and deliver products and services to address needs Clean tech venture capital funds (image 9) Green cluster based training institutes Clean tech incubators – commercialization support Networks of stakeholders – firms, researchers, financial institutions, utilities, industry associations, etc. (image 10) Shared R&D, market analysis, on-going information, etc.
  18. Step 1: Identify emerging green market opportunities High level: look at growth sectors in region and nation (image 1) Understand supply chains and cluster activities for growth sectors (image 2) Examine market enabling environment, i.e. barriers and incentives: shifting consumer and B2B demand transaction costs government requirements or subsidies Step 2: Analyze the region’s assets in relation to green sectors Existing firms in green supply chains/clusters (image 5) Existing firms that could easily transition Human capital – necessary skills in labor pool? (image 4) Infrastructure (image 3) Public and civic institutional environment Step 3: Determine asset and market development needs Financing (image 6) Employee training (image 7) Supply chain development firm recruitment or start up Cooperative networks R&D and technical development Barriers to market emergence (image 8) Step 4: Develop and deliver products and services to address needs Clean tech venture capital funds (image 9) Green cluster based training institutes Clean tech incubators – commercialization support Networks of stakeholders – firms, researchers, financial institutions, utilities, industry associations, etc. (image 10) Shared R&D, market analysis, on-going information, etc.
  19. WIRE-Net recognized opportunity for wind industry based on regional characteristics Formed non-profit supply chain advisory group and network of manufacturers Offers services to help component manufacturers enter wind market and connect with OEMs. Characteristics that make the region strong for wind: Strong component manufacturing base Home to R&D centers Existing network of manufacturers (WIRE-Net) Growing wind energy sector Support for industry from government Ohio’s Department of Development started a program to assist manufacturers in expanding their facilities and developing workforces to meet wind production demands There is strong interest in offshore wind development in Lake Erie – Cuyahoga Regional Energy Development Task Force is working to obtain permits and launch pilot project Ohio passed a renewable portfolio standard in 2008, requiring that 25% of electricity be from advanced sources by 2025, half of which must be renewable sources List of services: An interactive GIS map on their website that shows the location of all OEMs and component manufacturers that are part of the network Supply chain workshops throughout the region that offer potential suppliers the opportunity to discover opportunities and learn what to do to qualify with potential customers Providing personal introductions and referrals between turbine producers and parts manufacturers On-site evaluation of components and market opportunities in the wind sector resulting in a WIND Capabilities Profile Working with companies making component parts to meet the high standards required by turbine manufacturers Successes and challenges: Successes As of the writing of Emerald Cities, GLWN had identified 80 companies supplying parts to wind turbines and visited 180 that are interested in becoming suppliers Director Ed Weston estimates that 1/3 of the companies he has met with are taking the next steps to find a role in the wind supply chain Challenges The transition to the green economy is a slow process (A manufacturer interested in producing gearbox parts said his company was on an 18 month waiting list for machine tools from Germany; once he gets them it will take another 12 – 18 months to qualify to work with the turbine manufacturer) Companies face a shortage of skilled labor and applicants willing to participate in the on-the-job training/schooling needed for the positions (The problem persists even when the companies pay tuition, transportation, and provide time off for school Possible reasons for this include the fear that manufacturing jobs aren’t secure and the greater prestige of white collar jobs.
  20. Green Building Product Initiative (GBPI) Pittsburgh’s Green Building Alliance wanted existing building supply industry to take advantage of the green building trend. Created Green Building Product Initiative. Offers services to help building product manufacturers and service providers increase their presence in the green building market. Services offered include: Identifying green market opportunities related to specific product lines, connecting companies to potential customers and projects of interest Holding green training events and information exchanges Providing one-on-one assistance with green building issues, including certification, labeling, and marketing questions. Evaluating current products to determine their green strengths and weaknesses, looking for ways to retool process and recycle/reuse wasted parts. Granting money for innovative product development and helping companies find additional funding sources. Listing companies in the online PA Green Building Product Directory, making it easy for architects and designers to find them. Teaching companies how to implement green manufacturing methods and operate more sustainably. Advocating on behalf of the green building industry. Forming the Pennsylvania Green Growth Partnership, a research network made up of area universities that supports technological innovation and commercialization of new green products and methods.
  21. Retrofits make economic sense, but the market is lagging due to high transaction costs Energy Score is a web-based tool for homeowners and the real estate market that provides: Energy ratings for homes Customized recommendations for retrofit improvement Connections to retrofit professionals Advantages: Low transaction cost + enables market to value energy efficiency
  22. Irv and Shelly’s Fresh Picks – provides home delivery of local and organic foods year round Chicago’s Downtown Farmstand – run by Chicago’s Department of Cultural Affairs; year-round storefront that sells produce from local farms as well as other food items from Chicago companies (locally made preserves, chocolate, honey, ice cream, granola, even Lou Malnati’s Pizza and Eli’s Cheesecake) Great Lakes Wind Network and Green Building Products Initiative are the regional organizations already discussed – a big part of their goal is promoting local suppliers of component parts or building materials
  23. Cut Costs Energy savings from efficiency measures Savings from reuse and reduction of materials Regulatory Requirements Avoid fines Company Image Customers increasingly expect sustainability Distinguish company from competition Resilience Less subject to fluctuations in energy prices The point about distinguishing company from competition may be especially relevant for components suppliers because the companies they are supplying to likely have an especially high desire to have the greenest product they can not just once it’s in use (creating renewable energy, for example) but through the whole supply chain. For example, a wind turbine producer whose primary motivation for going into the wind business is to reduce carbon emissions is unlikely to want parts that were produced with a lot of emissions
  24. (p) = pictured Explore Renewable Energy Use Solar(p) Wind (p) Hydro (p) Geothermal Biopower (p) Biofuels Etc. Reduce Energy Use Energy audit and retrofit (p) Use energy efficient technologies, i.e. CFLs (p) Unplug electronics and turn off lights (p) Improve building insulation (p) Switch to fuel efficient vehicles Programmable thermostats Reduce Waste Recycle and reuse materials (p) Eliminate disposables (cups, plates, cutlery) (p) Print less, rely more on computers Reduce packaging By-product synergy (p) Take-back programs Think Outside the Building Incentivize alternative transportation to/from work (p) Work with supply chain to reduce their (p)
  25. South Coast Mold, Inc. 35 year old tool and die shop with 8 employees in Irvine, CA In one year: reduced energy by 20%, saved over $1,600 in energy costs and recorded highest revenues in company history Motivated by high energy costs and erratic supply Relied on government program, Energy Star, for advice and product labels Four targeted improvement areas: Lighting Office HVAC CNC Machines More info in folder