May’s Colorado CleanTech Initiative offered perspectives from Anita Burke on the future of the planet along with two company business cases from Corvid and SolSource. Burke, a former oil industry executive, began by reminding the audience that the earth is an island and as such has finite resources. Burke believes we are currently in a state of “overshoot,” having over-consumed many of the planet’s resources. Burke specifically cited that, even according to oil industry projections, the planet has surpassed peak oil –the point at which maximum petroleum extraction is reached and after which production begins terminal decline – with extraction falling at 4-8% a year. Beyond just oil, Burke believes the earth is at “peak everything” with many factors – from population to atmospheric CO2 to the damning of rivers – increasing at unprecedented rates.
With limited resources remaining, Burke feels it essential to integrate new constructs and decision making processes into the use of the remaining natural resources. Specifically, she urged the use of energy return on energy invested as the key metric to evaluate decisions as opposed to the financially focused return on investment. She also urged companies to consider risk management around “hydrocarbon dependencies within their supply chains” because as hydrocarbons become less accessible these dependencies could bring down a business.
Burke called for drastic actions saying that “promoting the same information and policies as 20 years ago” will be ineffectual and insufficient given that the current situation is “20 times worse.” Among Burke’s recommendations are eliminating cars, immediately reducing CO2 emissions by 80%, preserving farmlands, forest, and wilderness, reducing meat consumption, and constructing two meter dykes on the coastline to repel advancing waters from increased temperature. Burke also calls for stabilization and reduction in human population, saying that 2.5B is the sustaining population for the planet (current population sits at about 6B). Keys to this reduction include women’s rights and availability of and education about contraception. Burke also touts a more localized model where more of what is used – from electricity to food – is produced near where it is consumed.
Steve Kroll and John Andrews offered the first company presentation of the evening discussing the Corvid Radiant Wall. The wall consists of two exterior layers of concrete and an interior layer lined with tubing to carry water. The water allows for the hydronic heating and cooling of the wall using any of a variety of systems including solar thermal panels, 95% efficient boilers, simple ground loops, night sky radiant cooling, and fluid coolers. The duo has applied for a patent around the wall construction, but noted they have also seen significant value in the know-how they have acquired in integrating these systems, which in many cases have not previously been used in combination. Use of the wall promises significant enhancements in energy efficiency due to reduced heating and cooling costs and can be constructed at costs similar to conventional construction. The wall can be built via a variety of methods – poured in place (site cast), pre-cast, or for tilt up construction (poured on the ground and tilted up). This flexibility opens a variety of potential markets including commercial and retail properties, municipal buildings, affordable housing units, and houses. The company’s focus for 2009 is to complete demonstration projects within its different target segments. Among these projects are a firehouse, a multi-unit affordable housing project, and a pool house. The company, which has been self-funded to date, expects to raise money near the end of the year.
SolSource, the second company presented, was founded in 2005 to offer a wide variety of solar solutions and services. This early entry, at a time before solar rebates were available in Colorado, was driven by CEO Jeff Scott’s experience in the solar market in Japan where the market developed much earlier. SolSource, in fact, operates three different businesses which all play in the solar arena: a distributor of solar system components including workforce training, an EPC (engineering, procurement, construction) contractor, and an integrator of solar systems. The company to date has played primarily in the Colorado and regional markets. While Scott expects the company’s distribution business to maintain this geographic footprint, the company is pursuing a more national reach for the integration business within the residential and small-to-mid-size commercial installation market. According to Scott, where SolSource truly distinguishes itself is in its customer service and “listening to the needs of the customer” rather than dictating the type of system they should have. Among keys to success, Scott cited “well-developed vendor relationships” which enable the company to get bids from vendors before establishing its own bids to customers, a process essential to sustained profitability given rapidly changing component prices. SolSource’s high revenue per employee has enabled it to maintain its workforce with no layoffs over the past six months. The company – which earned less than a $100,000 in its first year – is on pace to earn about $15M this year. SolSource is not currently seeking additional funding but is considering vertical integration through an expansion in manufacturing.
The Colorado CleanTech Initiative (CCI) is a monthly networking and business development venue to help promote economic development throughout Colorado. The CCI is designed to help build a Colorado clean energy cluster through a robust business network. This network includes successful, serial business entrepreneurial companies, as well as development professionals that go beyond business mentors. They include a wide range of investors (including numerous angel groups), and others such as marketing experts. In addition, CCI provides access to virtual and traditional incubation services. Meetings are held at the Denver Metro Chamber of Commerce on the last Tuesday of every month. They include networking time and presentations by emerging energy companies or clean energy experts. CCI sponsors are CORE, Colorado’s sustainable business trade association, and the National Renewable Energy Laboratory.
