Category: Energy

  • Porsche to Unveil Flywheel-Hybrid 911 GT3

    Some automakers can’t make up their minds. Or maybe they just like confusing the public. Such is the case with Porsche, which has been playing a back-and-forth game with the whole hybrid 911 idea. First they dangle it out in front of the public, hinting that maybe they are making a hybrid and spy photographers grabbed pictures of what seemed to be a hybrid Porsche 911 last summer.

    Then Porsche CEO Micheal Macht comes out and says no, Porsche will not make hybrid versions of the 911 or Boxster.

    Now Porsche says they have a flywheel-electric-hybrid 911 GT3 race car to show off at the 2010 Geneva car show. Oh Porsche, how you toy with our heartstrings.

    (more…)

  • Happy 2010: Bay State Startups Ring in the New Year with $355M in January Venture Funding

    Erin Kutz wrote:

    Apparently, Massachusetts venture investors aren’t like most American consumers in January, when purse strings tighten and spending comes to a halt following the previous month’s holiday shopping excesses. By contrast, they significantly upped their investments in the state’s tech and life sciences startups, investing $355.2 million across 28 equity deals, according to information provided by private company intelligence platform CB Insights.  That’s at least $130 million more than the $224 million in venture funding that 36 startups wrapped up in December.

    January’s dollar figures make it the best month in venture investing that we’ve tracked so far (we started in June), thanks to huge deals in software, healthcare, and energy. In fact, January’s dollar totals toppled the previous best month to date, September, by more than 50 percent, when startups raised $228 million across 25 deals.

    The largest January equity deal came in at a whopping $120 million for Southborough, Ma-based IkaSytems, providers of process automation and intelligence management software for the healthcare payer market. Essex Woodlands Health Ventures and Providence Equity Partners led the growth equity round. This put it $85 million ahead of the next biggest venture deal of the month, the $35 million Series B round that went to Alnara Pharmaceuticals, a Boston-based company that plans to seek FDA approval for its enzyme-replacement drug for patients with cystic fibrosis. The spread between the top two deals was much bigger than the $4 million difference between the first and second place deals in December, when venture financings were all grouped more closely in value. The Alnara financing was also way ahead of the January third-place deal, $23.8 million for Lowell-based energy company Konarka Technologies. The remaining January venture deals followed more closely at each other’s heels, as you can see in the list at the end of this story.

    January Venture Investing

    Software companies took home the biggest share of venture funds at $167.7 million, and knocked the healthcare sector off of its throne, largely thanks to the IkaSystems deal (healthcare had previously led all other sectors in venture dollars every month that we tracked). The five remaining software startup venture financings accounted for $47.7 million. Even without the IkaSystems financing, software companies still pulled in more than they did in December ($30.5 million across five deals), when the sector ranked fourth in dollars raised.

    The previous sector champ, healthcare, came in second in terms of venture dollars amassed at $121.1 million, but still had …Next Page »







  • My Favorite Energy Plays: Geothermal and Nuclear

    Last month, I traveled halfway around the world to Australia and New Zealand while researching one of my favorite investment themes: the growing scarcity of resources like water, farmland, and energy.

    One of the highlights of my trip was taking a group of subscribers to visit one of the world’s best resource investors – Rick Rule – at his farm outside of Auckland, New Zealand. After eating lunch, we got down to the business of the market.

    Rule expects markets will be extremely volatile this year, which he considers a gift. It’s what allows you to pick up assets on the cheap. Specifically, assets in his favorite sector, natural resources.

    There are simple reasons why Rule likes resources: For a long period of time, very little new investment occurred in most resource industries. So now they are playing catch-up. From 1982-2000, there was no net investment in the resource sector, Rule maintains. These industries require continuous investment because they are, by definition, self- depleting. If you run a mine, for example, every day you run it, the deposit gets smaller.

    At the same time, global demand for resources has been booming. “When Indonesians make a little extra money, they buy stuff,” Rule explains simply. “They upgrade from bicycles to cars. They buy air conditioners for the first time. They buy refrigerators.” All of these things use basic materials – steel, aluminum, and other metals. They use energy.

    Rule sums it up this way: “When we Americans spend money, we buy services. When poor people spend money, they buy stuff.” He points out China uses only 3% as much oil as the US on a per capita basis. Therefore, if Chinese oil demand were to rise only to the level of South Korea on a per capita basis, which is 16% that of the US, then China’s incremental oil demand would account for all of current world production.

    Not surprisingly, Rule’s favorite sector in the resource sector is energy. “Energy is cheap, and it’s not going to stay cheap. Natural gas is the same price as it was in 1980 on inflation-adjusted terms.”

    Demand is going up and supply is problematic. Rule points out that most of the oil in the world is produced by national oil companies (NOCs), like those of Venezuela, Peru, Iran, Mexico, and Indonesia – not by the ExxonMobils and Chevrons of the world. These NOCs are starving themselves of much-needed reinvestment so that they can spend the proceeds on social programs or to advance political objectives. Many of these countries are on the verge of halting oil exports, simply because local demand is close to consuming all the local oil production.

    Another factor in favor of rising energy prices is “carbon hysteria.” Skirting the issue of whether global warming is real or not, there are consequences to the current drive to reduce carbon emissions. For instance, “coal is bad” has become the pervasive governmental point of view. So if you found a bunch of coal in Australia or New Zealand and wanted to develop it, Rule says, you probably couldn’t. Governments hate coal, despite the fact that most of the world still relies on coal.

    So what does Rule like here? His favorites are geothermal and uranium.

    “I really like geothermal,” he says. And the US is one of the best places in the world to develop geothermal reservoirs into power-generation facilities. Political consensus in the US is that geothermal is good. Power companies want it and are willing to pay up for it because it’s “green.” Political subsidies make the economics of geothermal even more compelling. Rule maintains you can earn a 22% internal rate of return with a cost of capital less than 5%. These are far better returns than solar or wind projects generate.

    “I can’t say when geothermal stock will take off,” Rule said. “But the businesses work stupidly well. They really work. It almost doesn’t matter what stock you buy, just own the sector.” Rule reeled off four names to own – Ram Power, Nevada Geothermal, Sierra Geothermal, and US Geothermal.

    They are speculative little ventures, but owning a basket is probably a good move. As for the speculative nature of the stocks, Rule said the best stock he ever owned was an Australian penny stock. “I bought it for 1.5 cents per share and sold it for $10 per share,” he said. “It was the best stock of my life.”

    He also likes uranium. Uranium had a mania and then the price collapsed, and the stocks with it, but the businesses kept getting better and better. “The uranium story that fed the mania is still in place.” Rule said we consume more uranium than we produce. “The uranium price has to go up. And more importantly, it can go up.” Meaning, the price of uranium is very low. It could double and still not have any meaningful impact on the economics of a nuclear plant. “People don’t care much about uranium today, but in three years, they are going to care a lot.”

    Rule’s favorite themes are much the same as mine. As I explained in the January 27th edition of The Daily Reckoning, I’m a big fan of buying mid-sized oil and gas stocks right now because, like Rule, I believe oil and natural gas prices are going to be higher three years from now. But I’m also digging into other energy sectors like geothermal and nuclear.

    I am persuaded by Rule’s analysis.

    Regards,

    Chris Mayer
    for The Daily Reckoning Australia

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  • Ukraine: “Start of Stabilisation”

    Ari Rusila of BalkanBlog analyzes the outcome of the Ukrainian presidential election and makes some forecasts.

  • Propel Fuels Gets Cash for CA Expansion

    Gregory T. Huang wrote:

    Propel Fuels, the alternative fuel company founded in Seattle but now based in Sacramento, CA, announced today it has raised $12 million in Series C equity financing led by new investor Craton Equity Partners, along with $8 million in debt financing. Previous investors Nth Power and @Ventures also participated in the equity round. The money will be used to help Propel expand its network of fuel stations around California. The company currently owns and operates 11 stations around Seattle and Sacramento, selling ethanol and biodiesel fuels.







  • Veolia Energy Buys Comfort Link

    Wade Roush wrote:

    Veolia Energy North America, a Boston-based company that provides “district energy” or centralized heating, cooling, and power generation for 1,100 government and industry customers, said today that it has acquired Comfort Link of Baltimore, MD. Formerly a partnership between Baltimore Gas and Electric and Monumental Investment Corporation, Comfort Link uses an 11-mile network of chilled water pipes to provide district cooling to 50 customers in the Baltimore area. Financial terms of the deal were not disclosed.





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  • Wind Power Industry Convenes in San Diego Amid Howls Over Which Way Stimulus Funds Are Blowing

    Wind farm
    Bruce V. Bigelow wrote:

    The movers and shakers in wind power are gathering in San Diego this week for what some renewable energy advocates view as the U.S. industry’s most important annual meeting—the Wind Power Finance & Investment Summit. They may be in for a chilly reception, though, with recent news accounts that foreign energy companies have been reaping a windfall in U.S. economic stimulus funding.

    More than three-quarters of the $2 billion in federal stimulus funding that’s been awarded to help create green jobs in the U.S. has gone to foreign-owned companies, according to a front-page story published yesterday by The San Diego Union-Tribune. An analysis of wind-energy grants was initially released in October by the Investigative Reporting Workshop, a nonprofit at American University in Washington D.C.

    The Union-Tribune published a follow-up report, prepared by the nonprofit Watchdog Institute at San Diego State University, that focused on grants that went to foreign wind energy companies with offices in San Diego County. The list includes Eurus Energy America, the La Jolla-based subsidiary of a Japanese company that got $91 million to build a wind farm in western Texas; enXco, the U.S. headquarters of a French-owned company that got $69.5 million to develop a wind farm in Indiana; and the Canon Power Group, with offices near Torrey Pines, which got $19 million to expand its wind farm near Klickitat, WA.

    Several wind industry executives explained in the report that development of their U.S. renewable energy projects would have come to a standstill without the funding provided through the …Next Page »







  • ‘Another fire’ at Suncor worries analysts

    Suncor Energy Inc. has been on fire lately, but for all the wrong reasons.

    Yesterday, the country's largest energy company had another fire at its oil sands operations, its third in five months. Analysts were not impressed, with some now questioning the company's reliability.

    "We have become increasingly concerned about [Suncor's] execution performance," Greg Pardy, analyst with RBC Capital Markets, said in a note Wednesday. 

    Expecting four weeks of repairs, Mr. Pardy has trimmed his 2010 synthetic oil production forecast to 284,000 barrels a day, down 3.4%, while raising expected cash costs 4% to $38 a barrel.

    He's also downgraded Suncor to Sector Perform, and cut his target price 6% to $46.

    "It is never easy to downgrade a stock once most of the bad news appears to be reflected in its valuation, but Suncor may trade in a sideways range in coming months pending improved oil sands operating performance and execution in general," he said.

    Meanwhile Andrew Potter, analyst with UBS, maintains a Buy rating and $47 price target, noting the fire does not have any material impact on asset value but it does freeze any operational momentum Suncor had built up through 2009.

    Eric Lam

  • Enterprise Holdings will move its fleet of buses to biodiesel

    From Green Right Now Reports

    Enterprise Holdings today announced that it will convert its entire fleet of more than 600 Alamo Rent A Car, Enterprise Rent-A-Car and National Car Rental airport shuttle buses  in 50 North American markets to begin using at least 5 percent biodiesel (B5). The company said it will immediately convert buses in nine markets to 20 percent biodiesel (B20) as a first step toward the company’s goal of converting its entire bus fleet to B20 over the next five years.

    Pictured at the press conference are (l-r) Joe Jobe, CEO of NBB; Dr. Richard Sayre, Director, Enterprise Rent-A-Car Institute for Renewable Fuels; and Lee Broughton, director of corporate identity and sustainability for Enterprise Holdings. (Photo:

    Joe Jobe, CEO of the National Biodiesel Board; Dr. Richard Sayre, Director of Enterprise Rent-A-Car Institute for Renewable Fuels; and Lee Broughton, director of corporate identity and sustainability for Enterprise Holdings. (Photo: National Biodiesel Board)

    Enterprise Holdings expects to complete the conversion to all B5 by spring of this year, with at least 50 percent converted to B20 by the end of next year. Buses in nine markets are immediately being converted to run on B20 where the fuel is centrally stored and available: Boston, Chicago, Denver, Detroit, Los Angeles, Miami, Raleigh/Durham, San Antonio and San Diego.

    “This investment in biodiesel follows our commitment to our customers and our business to use our fleet to help grow the clean fuel market. By embracing alternative fuels and engine technologies, they have a greater opportunity to become commercially viable,” said Lee Broughton, director of corporate identity and sustainability for Enterprise Holdings. “Biodiesel’s benefits to the environment support our commitment to environmental stewardship, as well as our sustainable approach to managing our business for long-term success.”

    In addition to embracing biodiesel and other alternative fuels as they become commercially viable, Enterprise Holdings has spent millions in support of renewable fuels research. In 2007, the company’s owners, the Taylor family, made a $25 million grant to the Donald Danforth Plant Science Center in St. Louis to create the Enterprise Rent-A-Car Institute for Renewable Fuels. Led by renowned plant researcher Dr. Richard Sayre, top scientists work at the Institute to develop alternatives to finite fossil fuels by finding new ways to create fuel from renewable, reliable plant sources.

    The announcement was made at the National Biodiesel Conference in Grapevine, Texas.

  • Defiant Iran accelerates nuclear program

    TEHRAN, Iran — Iran began enriching uranium to a higher level on Tuesday, an acceleration of its nuclear program that was followed by a U.S. threat of a “significant regime of sanctions.”

    Speaking in Washington, President Barack Obama said the process of developing an additional set of sanctions on Iran was moving along quickly, but he gave no specific timeline.

    Iran, he said, was still pursuing a nuclear program that would lead to nuclear weapons.

    Iran’s announcement Tuesday that it has begun enriching uranium to a higher level raised fears that the process could eventually be used to give the Islamic republic nuclear weapons. Iran denies that its program is geared toward acquiring a nuclear weapon.

    France and the U.S. have said that Iran’s action left no choice but to push harder for a fourth set of U.N. Security Council sanctions to punish it. Russia, which has close ties to Iran and has opposed new sanctions, appeared to edge closer to Washington’s position, saying the new enrichment plans show the suspicions about Iran’s intentions are well-founded.

    Iranian state television said the process began in the presence of inspectors from the U.N. nuclear watchdog agency. Uranium has to be enriched to fuel nuclear power plants and Iran needs the 20 percent enriched fuel for a research reactor producing medical isotopes.

    Enriching uranium to 90 percent, however, creates the material for nuclear weapons, which many countries are afraid Iran is seeking. Iran denies the charge.

    In an effort to defuse the crisis, the International Atomic Energy Agency brokered a deal last year in which Iran would ship out its low enriched uranium to be processed abroad and returned a year later.

    Iran initially rejected the deal, then later said that if an acceptable alternative could be reached, it would not continue the high level enriching process.

    Ali Akbar Salehi, a vice president as well as the head of the country’s nuclear program, said the further enrichment would be unnecessary if the West found a way to provide Iran with the needed fuel.

    “Whenever they provide the fuel, we will halt production of 20 percent,” he told state TV late Monday.

    Iran has so far enriched uranium to a level of 3.5 percent, which is suitable for use in fueling nuclear power plants.

    On Tuesday, the spokesman of Iran’s Foreign Ministry, Ramin Mehmanparast, said any plan by the West to impose new Security Council resolutions would not be helpful.

    “If they attempt another resolution, they are making a mistake. It is not helpful in resolving the nuclear dispute between Iran and the West,” he said.

    “They are completely wrong if they think our people will back down even a single step.”

    Salehi said Iran has been trying to buy the higher enriched fuel for its research reactor for the past several months, but the West made providing the fuel conditional on Iran’s acceptance of the U.N.-drafted agreement to ship its uranium stockpile abroad first.

    That plan would come with some safeguards, because the enriched fuel provided to Iran would be in a form that would be difficult to further process to make weapons.

    According to the report on state TV, the higher level enrichment began after Iranian scientists injected 25 kilograms of 3.5 percent enriched UF6, or Uranium hexafluoride, gas into a cascade of 164 centrifuge machines at a laboratory in the central town of Natanz, some 150 miles (241 kilometers) south of Tehran.

    The machines are expected to produce some 2.5 kilograms of 20 percent enriched uranium out of 25 kilograms of gas every month, according to the report.

    It said inspectors from the International Atomic Energy Agency were present during the injection.

    When asked about the enrichment process, Gill Tudor of the IAEA only said that the agency had inspectors in the country already.

    “The agency continues to have inspectors in Iran conducting normal safeguard operations,” Tudor said.

    Pentagon spokesman Geoff Morrell said Defense Secretary Robert Gates believes a new U.N. resolution would lay the legal groundwork countries need to impose sanctions independently and pressure Iran to abandon its nuclear program.

    German Foreign Minister Guido Westerwelle, meanwhile, said Tuesday that Germany is “very concerned about the developments in Iran,” and that “if Iran insists on refusing to join negotiations, talks at the United Nations will be unavoidable and we will then have to talk about new measures.”

    “There is also the possibility of widening the sanctions,” he told reporters in Berlin.

    No new U.N. Security Council sanctions can be passed, however, without unanimous agreement from all members, including China, which has been reluctant to impose new punitive measures on Iran.

    China called for more talks on Tuesday, with Foreign Ministry spokesman Ma Zhaoxu, saying “I hope the relevant parties will step up efforts and push for progress in the dialogue and negotiations.”

    Russia, another Security Council member, has also been reluctant to back new sanctions.

    The nation’s security chief said on Tuesday, however, that Iran’s decision to enrich uranium to higher levels has added to doubts about its nuclear program.

    “Iran says it doesn’t want to have nuclear weapons. But its actions, including its decision to enrich uranium to 20 percent, have raised doubts among other nations, and these doubts are quite well-founded,” Nikolai Patrushev was quoted as saying by Russian news agencies.

    Iran says it needs the 20 percent enriched fuel for a research reactor producing radio isotopes to treat cancer and manufacture radiography materials. Iran says more than 850,000 people need the products for their illnesses.

    Read the original article on DailyHerald.com.


  • US$82 oil equals higher distribution at Canadian Oils Sands Trust

    If oil prices get back to US$82 a barrel and stay there, Canadian Oil Sands Trust could raise its quarterly distribution to 50¢ a unit, up from 35¢ now, says Versant Partners analyst Mark Friesen.

    "Distributions will be somewhat impacted following the mandatory conversion to a corporation at the end of 2010; however, management of the Trust has indicated that it will continue to maintain a discretionary dividend policy going forward," he said in note to clients

    "At our oil price estimates, we estimate that Canadian Oil Sands will pay roughly $1 billion of distributions this year, and without a competing use of funds will be in a position to pay roughly $1 billion of dividends next year before becoming cash taxable, likely in the end of 2011 or early 2012 time frame based on our oil price outlook.

    Mr. Friesen initiated coverage of Canadian Oil Sands with a Buy rating and a $34 target price.

    In addition to the company's high level of free cash flow that will be used to pay distributions, but also consolidate additional working interests at Syncrude, it's flagship project, the analyst likes Canadian Oil Sands for its 95% unit price correlation to oil prices, its relatively low capital re-investment risk and the long life nature of its asset base.

    "Given our positive oil price outlook and the strong correlation of Canadian Oil Sands units to oil price, we would expect the units to perform well in an
    environment of strong oil prices," he said.

    David Pett 

  • Contradictions of City Life

    I have recently moved to Washington, D.C., a relatively larger and more urban setting than that of my little lake house back in the Midwest. I have never lived in such a metropolitan city before and I have become greatly overwhelmed at times by the large amounts of buildings and people and the small occurrences of green space. Although the city I am from is not fitted with gorgeous scenery or a picturesque background, I still miss the simplicity of life out on the lake.

    It seems to be a contradiction to me: working for the EPA while surrounded by pavement, buildings, and almost all other signs of increasing urbanization. I like to think of myself as an environmentally conscious person, but the constant sound of cars, images of buildings, and working indoors make me think that I am a walking (or sitting) contradiction. However, I now realize that although I live in a city where being close to the natural environment is not something that can be achieved by simply walking outside; I can still make a positive, environmental difference.

    Getting away from the city and moving into a rural community may seem like the logical way to reduce your carbon footprint and avoid contributing to global warming, but this is not the case. Cities allow for mass public transit such that less carbon emissions can be released per person. The close proximities of buildings to each other also encourage people to walk or ride bikes rather than driving. Living in a city also tolerates high-rise buildings that use less energy. Less energy is being used to heat and power a large building as opposed to a large number of small buildings or houses.

    The actions that we can take everyday to be environmentally conscious can still be done no matter where we live. We can still recycle, turn off the lights and water when not being used, buy organic and locally grown food, take public transportation, reduce or eliminate meat from our diets, and advocate by saying something to those who are not always thinking about what is best for the environment. We may miss nature in its raw form, undisturbed by development, but this does not mean that we are unable to be environmentally aware people.

    About the author: Nikki Reising is an intern at the Office of Children’s Health Protection. She is a sophomore studying non-profit management at Indiana University.

  • Cheers to the Environment: PurposeEnergy Aims to Make Brewing More Sustainable

    purposelogo
    Erin Kutz wrote:

    When Eric Fitch decided to start his own company a few years back after working on a string of other startups, he knew clean energy was the way to go. “I couldn’t escape the gravity of this renewable energy thing,” he says.

    He thought the industrial and manufacturing arenas would be the best targets, as industries such as transportation were already teeming with renewable energy innovators. Luckily for Fitch, he had friends in the right places, one of those being Boston’s Harpoon Brewery. Fitch, a home brewer himself, knew firsthand how much waste beer production creates. Harpoon let him come in and analyze its operations, allowing him to build a model of its energy use and output—and to begin brewing up ideas about how the organic waste produced in the system could be converted to renewable energy.

    “While it’s quirky and cute, it’s also a good business model,” says Fitch, who has his bachelor’s and master’s degrees in mechanical engineering from MIT and a decade’s worth of experience at startups in industries as diverse as biotech, sports equipment, and software under his belt. “The beer brewing industry is the best marketing industry in the world,” he explains. Fitch’s aim is for his company, Arlington, MA-based PurposeEnergy, to excel in the beer market, and then let its first customers become the startup’s loudest advocates as it expands into other industries.

    Brewing and bottling beer creates organic byproducts at almost every step of the process, from spent grain and yeast to protein deposits. The resulting waste is mostly water with a high concentration of solids, which companies have to pay to transport offsite to treatment facilities that charge by the pound to make the water safe enough for disposal.

    PurposeEnergy, incorporated in 2007, has come up with system that uses a process called anaerobic digestion to turn the byproducts from brewing into renewable fuels. Installed on-site at a brewery, the “PurposeEnergy Biogas Facility” would convert much of the organic waste into methane, the main component of the natural gas that most breweries use to fuel their plants. In doing so, it would cut costs for energy and byproduct remediation by about …Next Page »







  • Amazon Buys Touchco, Infinia Raises More Cash, the Truth About Photobucket, & More Seattle-Area Deals News

    Gregory T. Huang wrote:

    Another quiet week for deals in the Northwest as we head into the depths of winter. Nevertheless, there were a few notable deals in software, hardware, and energy.

    —Kennewick, WA-based Infinia snapped up another $11.5 million in equity financing in a round that could total $75 million over time, as Luke reported. The investors in the round included Paul Allen’s Vulcan Capital and GLG Partners, both existing investors in the company. Infinia has raised more than $100 million, including a previous investment from Vinod Khosla, who says he is no longer involved with the company. Infinia, led by CEO J.D. Sitton, uses satellite dishes that capture rays of sunlight and channel them to a focal point that contains a single-piston Stirling engine, which uses the heat energy to produce electricity.

    —Who bought whom in the Ontela-Photobucket merger announced in December? It turns out News Corporation, which previously owned Photobucket, sold the subsidiary to Seattle-based Ontela and its investors at a $29 million loss. Although News Corp. still owns a stake in the merged company (Photobucket), Ontela’s investors—Steamboat Ventures, Oak Investment Partners, Covera Ventures, and Voyager Capital—apparently control the firm now. Ontela, which had 23 employees as of December, was formed in 2005 and backed by about $15 million in venture funding. Last week, Ontela co-founder and former CEO Dan Shapiro said he is leaving his role as chief technology officer of Photobucket.

    Microsoft (NASDAQ: MSFT) formed a partnership with the National Science Foundation (NSF) to provide cloud-computing resources to selected researchers and research groups through its Windows Azure software platform. Financial terms of the agreement weren’t given, but NSF will be in charge of awarding and managing the projects through its usual review process. Microsoft will grant the selected researchers free access to Azure’s cloud-based tools for three years.

    —Seattle-based Amazon has acquired Touchco, a touchscreen technology startup based in New York. The news was first reported by the New York Times. No financial terms were given, but according to the report, Amazon (NASDAQ: AMZN) will merge the New York University spinout’s technology and staff (about six people) into its Kindle hardware division, Lab126, based in Cupertino, CA. There is strong speculation that Amazon plans to add touchscreen capabilities to its Kindle e-reader device, in part to compete with Apple’s iPad.







  • Voyager Capital’s Daniel Ahn on the Firm’s Refocused Clean-IT Strategy

    Dan Ahn
    Gregory T. Huang wrote:

    To Voyager Capital managing director Daniel Ahn, “cleantech” is just a buzzword. “Clean IT” is much more precise—and, to the point, it’s something a hardcore techie venture capitalist can get his hands around.

    Last week, I spoke with Ahn by phone about Voyager’s recent investment in Coulomb Technologies, a Campbell, CA-based startup focused on electric vehicle infrastructure (networked smart chargers). The deal was a little different from what the Seattle-based VC firm is best known for investing in—digital media, software, and wireless—so I wanted to know if it’s a strategic shift, and whether this means we should expect more action at the intersection of energy and software. I particularly wanted to hear Ahn’s thoughts, since he is one of the Silicon Valley-based partners with Voyager who I don’t see as often as the firm’s local partners.

    “It’s a very conscious focus rather than a huge shift,” Ahn says. “This is a big opportunity,” for the “long term.” Voyager has made two previous investments in clean-IT, including Tropos Networks (green, cellular Wi-Fi) and Sensys Networks (vehicle traffic detection), both based in the San Francisco Bay Area. Coulomb builds on Voyager’s favored theme of using smart networks to increase efficiencies—this time in the burgeoning electric vehicle market.

    The Coulomb investment came about in part because of Jim Billmaier, the CEO of Seattle-based digital music firm Melodeo, which is also in Voyager’s portfolio. Billmaier is a founding investor in Charge Northwest, a five-person startup based in Woodinville, WA, which has a partnership with Coulomb to distribute its networked charging stations in Washington, British Columbia, Alaska, and a few other U.S. states. (At least one charging station has been deployed in Washington state so far.) Billmaier helped introduce Coulomb to the Voyager VCs, and once they understood the startup was solving a big software problem—not a capital-intensive energy problem—they were in.

    Voyager is looking at the “whole energy distribution problem,” Ahn says. “How can IT networks be used to make this more efficient, and make the electric grid more efficient?” He emphasizes that a lot of cleantech-related companies are not right for VCs, because of the large amount of money needed to develop projects in solar or biofuels, for instance. (This sounds similar to what Rick LeFaivre from OVP Venture Partners told me almost a year ago about the sweet spot for cleantech venture investing.)

    Ahn says he is looking at several other prospective clean-IT investments, in both Washington state and the Bay Area, which involve software and energy efficiency. “It really ties into our multi-location geography strategy,” he says. “It really helps to have a presence in all these different markets.”

    Not surprisingly, Ahn sees a huge market for electric vehicles, especially in the Northwest. Besides the eco-friendly stereotype, fueled in part by things like having the highest penetration of Toyota Prius hybrids in the country, there are state mandates and incentives for electric vehicle use and infrastructure development in Washington. (Meanwhile, some other techies in the Seattle area, like Mark Aggar of Microsoft, have raised concerns about electric vehicles and the environment.)

    Billmaier, who helps run the startup that sells electric charging stations locally, is naturally bullish on electric vehicles, too. “Washington and Oregon are going to set the model for how the nation does this,” he says. Billmaier also talks about his involvement with Charge Northwest with an eye toward the long-term sustainability of transportation and the environment. “We had the ‘a-ha,’” he says. “We’ve caused our children a lot of problems, so it’d be nice to solve a problem.”







  • Port of Rotterdam sailing to sustainability on tech wave

    The second largest city in the Netherlands after Amsterdam, Rotterdam boasts the largest port in Europe — and until recently held the title for the largest port on earth. However, it also has another sizable distinction — its CO2 emissions are equal to those of New York, a city with a population more than 10 times greater. Due to that oversized carbon footprint, the Port of Rotterdam, which encompasses about one-third of the greater Rotterdam municipality, has just partnered with GE to find innovative technology solutions that will help turn the bustling commercial hub into a sustainable one.


    Their ship’s come in: The agreement is closely tied to GE’s ecomagination and healthymagination initiatives, both of which help meet sustainability goals. Under ecomagination, GE develops solutions and technologies that are energy-efficient while healthymagination works to drive costs out of the system while simultaneously improving quality of care and increasing access. Pictured above is the Port of Rotterdam, seen when the Emma Mærsk is being unloaded. When launched in 2006, it was the largest container ship ever built. Photo: Vincent Jannink/AFP/Getty Images.

    The new strategic alliance will focus on GE ecomagination technologies and solutions in areas such as water management and re-use, energy efficiency and emissions reduction. The first effort out of the gate will involve creating a pilot smart grid project in the port of Rotterdam. Officials expect that there will soon be an increase in renewable energy production in the port area – and the first phase of the project will tackle the challenge of how to best adapt the electricity infrastructure to meet the changes.

    The agreement comes at a time when emissions generated from Rotterdam and the neighboring German Ruhr region are the highest in Europe. The issue led to the creation of the Rotterdam Climate Initiative, which has set the aggressive target of reducing CO2 emission by 50 percent by 2025 when compared to 1990 levels. Proposals currently being discussed to help meet that goal include developing a major Carbon Capture and Storage program by 2015; driving energy efficiency in businesses, homes and government facilities; and requiring the city council to make 75 percent of its purchases of goods and services be environmentally-friendly.

    As we described in our story this summer about GE’s sustainable cities road show, the work envisioned for Rotterdam, as with cities elsewhere, is designed to leverage a number of GE technologies and areas of expertise and create a coordinated solution on a large scale. It’s hoped that successes in one city can then be applied to other cities facing similar issues. Similarly, GE currently has four projects – in France, Italy, Spain and Hungary – that are among the first to be awarded “Benchmark of Excellence” status under the European Commission’s sustainable energy technology initiative. “We see tremendous potential for exploring local and international business opportunities, while using the port of Rotterdam as a demonstration site and vehicle for innovation and sustainable development,” said Mark Elborne, Regional Executive for North Europe.


    On course: Jeff Immelt, GE’s Chairman and CEO, visited Rotterdam in October to meet with city officials. He’s seen here in the control Room of the Port. With much of Rotterdam’s workforce commuting in, officials also hope that the new innovation projects will also improve the local quality of life and result in more people calling Rotterdam home.

    * Learn more about Rotterdam’s goals to reduce emissions
    * Read “GE’s “sustainable cities” road show tours Europe
    * Read “Google & GE call for home energy info in Copenhagen
    * Learn about four GE cities projects that received “Benchmark of Excellence” awards
    * Learn about Europe’s biggest initiative to reduce urban greenhouse gas emissions
    * Learn more about the European road show
    * Learn more about GE’s work on “Building Sustainable Cities”

  • Playing the Cardium

    Everything that’s old is new again, including parts of western Canada’s largest oil pool. 

    The Cardium zone has been catching much attention lately, thanks to new technology that is allowing oil and gas outfits to get at hydrocarbons otherwise beyond their reach.  Peters & Co. published a 54-page guidebook on the Cardium this week, and it came with this warning: “The recent focus has been on unconventional opportunities in the Cardium, with a proliferation in blanket statements and assumptions concerning the zone.”

    Fair enough. But, hey, sometimes you sweeping statements are helpful.

    “Nevertheless, as long as oil prices remain high (>US$75 per barrel), activity levels will mirror the commodity price and, although the long-term economics can still be debated, the payouts appear short (~32 months at US$75 per barrel), thereby limiting the economic downside,” the report said.

    Peters believes it is “critical” to distinguish between conventional and unconventional opportunities in the Cardium, and that medium-sized entities have the best shot at making a go of it.

    The break-even price for the play, Peters estimates, is about US$53 to US$64 per barrel, with the east Pembina coming in at the low end, and its western counterpart at the top. 

    Among companies operating in the unconventional Cardium Garrington zone, Peters’ top picks are NAL Resources, and Wild Stream Exploration Inc. 

    Bonavista Energy Trust Ltd., Bonterra Energy Corp., and PetroBakken Energy Ltd. are Peters’ favourites among those in the unconventional Cardium Pembina East category.

    Finally, the Calgary-based independent brokerage favours Bonterra, PetroBakken, Daylight Resources Trust Ltd., and Vermilion Energy Trust in the unconventional Cardium Pembina West group. 

    Carrie Tait

  • Fallbrook Technologies Spinoff Viryd Raises Another $5M for Wind Power Innovation

    Viryd Technologies logo
    Bruce V. Bigelow wrote:

    Viryd Technologies, a wind turbine technology startup spun out last May by San Diego’s Fallbrook Technologies, has secured a $5 million investment that includes a Chinese maker of automotive components.

    Viryd was founded near Austin, TX, to integrated Fallbrook’s proprietary transmission technology in power-generating wind turbines for the renewable energy. Unlike a conventional transmission, which uses a set of gears with specific fixed-speed ratios, Fallbrook’s continuously variable transmission uses a planetary mechanism that “shifts” seamlessly as a drive train accelerates and decelerates.

    Fallbrook CEO William Klehm tells me that Viryd shares many of the true-believer angel investors who invested $25 million in Fallbrook after it was founded in 1998, and who joined in the $29.4 million raised last year in Fallbrook’s first round of venture funding. Neither Viryd nor Fallbrook has identified its individual investors, although Klehm has previously disclosed that Fallbrook’s angels include Gary Jacobs, son of Qualcomm founder Irwin Jacobs, and Gary Weiss, whose Weiss Group provides consulting and executive search services.

    Viryd is announcing today it has raised another $5 million from its existing investors and China’s Ningbo Shentong Auto Decorations. Shentong also will name a representative to Viryd’s board of directors. The Texas company raised $5M from  individual investors last year. Viryd and Shentong Group plan to form a joint venture to manufacture wind turbines for markets worldwide, and especially in Asia and China, where the market for renewable energy is just emerging.

    Viryd says the design of its drive train enables the rotors of a wind turbine to rotate more efficiently at any wind speed. Its design also allows for the use of an inexpensive generator that can be connected directly to the utility grid without power electronics and inverters, according to the company. Fallbrook, meanwhile, continues to develop its NuVinci continuously variable transmission for the automotive market, saying its transmission without gears operates more efficiently and at lower cost than conventional transmissions.

    Viryd’s deal with Ninbo Shentong Auto could bear implications for Fallbrook as well. Based in Yuyao City in mainland China, the company’s customers include Shanghai General Motors, Shanghai Volkswagen, FAW-Volkswagen, Dongfeng Peugeot Citroen AutoMobile (DPCA) and Beijing Mercedes-Benz (Daimler Chrysler).







  • South Dakota Wind Resource Map

    southdakotawind_50m_800

    2010Feb7: South Dakota wind map shows the wind resource at 50 meters (NREL).

    Reference: U.S. Department of Energy, NREL, Wind Powering America http://www.windpoweringamerica.gov/maps_template.asp?stateab=sd

    Image Description: see case description. Image Location: U.S. Department of Energy, Wind Powering America http://www.windpoweringamerica.gov/maps_template.asp?stateab=sd Image Permission: This image is a work of a United States federal employee, taken or made during the course of an employee’s official duties. As a work of the U.S. federal government, the image is in the public domain.

  • ETHIOPIA: Dam Critics Won’t Go Away

    By IPS Correspondent ADDIS ABABA, Feb 6 (IPS) Ethiopia is building a 240-metre high dam on the Omo River that is intended to end the country's electricity shortage and supply power to neighbouring countries. Not everyone's happy.

    The Gilgel Gibe III dam will hold back 14.7 million cubic metres of water. Its 1,870 MW generating capacity will be a significant boost for the Ethiopian Electric Power Company (EEPCO) which has plans to extend electricity supply within the country and export power to other countries in East Africa.

    A 1.7 billion dollar contract to build the dam has been awarded to Italian multinational Salini Costruttori SPA. But the project's critics have assembled a damning dossier of problems with it.

    Two environmental organisations, Friends of Lake Turkana and International Rivers, are challenging the ecological soundness of the project. They say it threatens biodiversity in the Omo River and Lake Turkana which it feeds. The basin has large populations of Nile crocodiles, hippopotamus, and over 40 different species of fish.

    IR and FoLT say changes in the river's flow will also put the livelihoods of up to 200,000 people who depend on the lake for fishing, herding and irrigation at risk.

    The groups have raised questions over the quality of the environmental and social impact studies completed for the project.

    Gilgel Gibe III's opponents also point out that the contract to build the dam was not awarded through a competitive international tender; it was negotiated directly with Salini, in violation of Ethiopia's procurement guidelines.

    Procurement

    EEPCO argues that both Ethiopian and international procurement guidelines allowed Gibe III's contract to be reached without a tender process due to its size and huge financial requirements. EEPCO CEO Miheret Debebe says the project's opponents are using false allegations to try to stop the project.

    However Ken Ohashi, World Bank country director for Ethiopia and Sudan, confirmed that the omission of a competitive tender means the Bank cannot loan the Ethiopian government money for the project. This does not rule out World Bank involvement entirely.

    "In a situation like this, there is a possibility for us, in line with our guidelines, to help mobilise financing from the private market to finance the project by providing a guarantee to those interested in financing it," Ohashi told IPS.

    "If decided, we will provide guarantee against certain types of risk of non-repayment to commercial financiers – basically 'political' rather than 'commercial' risk of repayment," he said.

    Construction on Gibe III is already more than a third complete, but more money will be needed. The Ethiopian government's task of addressing concerns – environmental, social, technical and financial – in order to secure a World Bank credit guarantee has now been complicated by problems facing an earlier phase of the massive hydroelectric project.

    A cautionary tale

    Barely two weeks after it was formally opened on Jan. 14, the Gilgel Gibe II hydroelectric power station suffered a collapse in its main tunnel, forcing closure of the new facility while it is repaired.

    Gibe II, also built by Salini, has – or had – a generating capacity of 420MW; it relied on water released from the Gilgel Gibe I dam channeled through a 26 kilometre tunnel into the Omo River valley. The terms for this project too were negotiated between the Ethiopian government and Salini without competitive bidding.

    According to Italian World Bank watchdog group Campagna per la Riforma per la Banca Mondiale (CRBM), the 490 million euro contract for Gibe II (today equivalent to 670 million dollars) violated Italian and Ethiopian regulations. Italy's Directorate General for Development Cooperation (DGCS) nonetheless approved the largest single aid credit it had ever granted.

    This was against the advice of both Italy's finance ministry and DGCS's own internal evaluation unit. Reviewing that advice, CRBM lists the flaws: a no-bid contract, an inadequate feasibility study, the absence of funds for environmental mitigation, and an unrealistic projection for servicing the loan.

    The European Investment Bank also loaned the project 50 million euros ($69 million at today's exchange rate); according to the CRBM accepting Ethiopia's argument that it faced an emergency electrical shortage in lieu of more complete preparation and procedure.

    Construction ran into severe difficulties as the tunneling engineers encountered unexpected mud, sand and aquifers; the project was finally completed two years behind schedule, with the Ethiopian government – and taxpayers – picking up the cost overrun as the contract held Salini liable for any delays due to engineering failures, while these problems were due to an inadequate geological survey.

    Returning to Gibe III

    In 2009, a group of eight academics and consultants collaborating as the Africa Resources Working Group (ARWG) published a sharp critique of the studies done for Gibe III. The ARWG says that contrary to the findings of the environmental and social impact assessments provided by Salini and EEPCO, the downstream impacts of the dam will likely be devastating.

    They predict radical reduction of water flowing into Lake Turkana; the loss of cultivation of seasonally-flooded land in the Omo River delta, and of riverine forest and woodland the length of the river, damaging biodiversity and livelihoods.

    "Altogether, more than 200,000 indigenous peoples of the lowermost Omo Basin are dependent on riverside and delta recessional cultivation… This population would face massive economic losses, with widespread severe hunger, disease and loss of life occurring on a regional scale, if the Gibe III dam is completed."

    The authors reject the official studies' claims that lake water levels are already dropping due to evaporation from uncontrolled flooding, or that using the dam to deliberately increase water flow in the river during the dry season will alleviate drought.

    Instead, they explain their view that extensive leakage through fissures in the walls of the eventual reservoir behind the dam, as well as the planned abstraction of water for new commercial agriculture and industrial development just downstream will see water levels in Lake Turkana fall by as much as 10 metres. The ARWG also expresses concern that clay rich soil around the dam could become prone to landslides as it fills up – and to top it off: the dam site is on an active earthquake fault line.

    "An accurate assessment of environmental and social processes within the lower Omo Basin indicates that completion of the Gibe III dam would produce a broad range of negative effects, some of which would be catastrophic in the tri-country region where Sudan, Ethiopia and Kenya intersect."

    As the World Bank's review board meets on Mar. 5th, it will have much to consider. At stake is the life of a river, the fate of 200,000 people along its banks, and the commitments to transparent and effective aid made by governments and multilateral institutions alike.