And I’m the only one who can get at it!

One of my favorite movies is "There Will Be Blood". What a wonderful display of greed, what a remarkable showing of hatred, what an amazing insight into the power of natural resources. Made me want to become an oil man. Perhaps I still can become an energy man, of sorts…

A recent article in the LA Times continued the dicussion about companies harnessing pockets of heat within the earth. Investment money is starting to pour in; one researcher used the term "money falling from the sky". Another said it felt like "the new gold rush".

The traditional strategy that has been around for a minute is to find heated steam wells that already exist, and use that steam to turn turbines, etc. Most of the country’s steam megawatts are in CA.

The new hotness continues to be enhanced geothermal systems (EGS). It is the new hotness because it has that potential to allow most of the planet to establish geothermal systems, rather than locations on fault lines with steam wells. Simply dig down a few miles, inject some water in hole, let the core’s temperature turn that water into steam, insert turbine, built a distribution setup, tap in to the grid, and VOILA! Electricity!

Alright, probably not as easy as drilling for oil. But if one or a group was so inclined, could raise some cash, and knew about a nice little pocket of good heat in the earth (like oil prospecting, only easier), they could drill down and create an energy source…With all the money that’s about to flow into this sector, there’s bound to be space for a few creative self starters that can get some cash, put together a small talented team, and just make it happen.

Informational Links:

SUNFAB

One of the “heavy hitters” at Solar Power 2008 was Applied Materials. With a rather pimped out exhibition booth, they displayed their "Sun Fab" turnkey (sort of) production equipment. With a room full of installers, people were a little confused that they didn’t exactly SELL the panels, but they sold the equipment to MAKE the panels. "Wait, so I can’t buy panels from you? No but I want those panels, you make them, right? No? What do you do? Huh?"

As a worldwide company that focuses on their trademarked "Nanomanufacturing Technology", their primary bread and butter is in the equipment, service, and software products for semiconducters and flat panel displays, but they’ve been getting heavy into the solar industry. "Sun Fab" is all about driving costs down through a more intelligent, automated manufacturing equpment line that produces modules that are easier to install on a large scale.

I love that companies are thinking of the type of production we’ll need to sustain this industry once it scales up. If every building required solar in some shape or form, the need to continuously CHURN out panels will be required, just like any other common building material. In a recent Renewable Energy World podcast with executives from Sharp (a manufacturer), Applied Materials (equipment suppliers), and Borrego Solar (a CA and MA based installation company), representing each primary stage of the value chain, a concern exists in module availalbility as things grow. Borrego, one of the countries top installers, seems to have really thought through their module supply chain, but other less experienced installers could be in a tight spot.

If the new investment tax credits (the only good part of the "bank bailout") combined with the lift of the residential cap (with state rebates that could essential cover 50 percent of the cost of going solar) causes demand to EXPLODE, we’re going to need all the manufacturers we can get. So, if anyone has 100 million around and a product spec, I know some remarkable manufacturing engineers that would love to turn that 100 million into a couple billion.

13 Oct, 2008

Commercializing a Solar Breakthrough

Posted by: Mark In: Energy Editorial

Dollars and Research

Nearly every conversation I have about renewable technology, from solar to wind to geothermal, always goes from “it’s the next big thing” to “it’s too expensive for regular homeowners” to “once ‘they’ get the efficiency up and the cost comes down, then it will blow up". It’s frustrating. And, in spite of the buzz and excitement, these objections are partially valid. While you can generate all of your energy with current solar electric panels, it’s expensive. Less expensive with government rebates, but still, a large up front investment that requires up to 10 years to pay back. (Solar water heating is another point altogether, the entire country should have these on their roof.)

That proverbial "hump" is renewable energy’s challenge. But what’s difficult about the "hump" is that frog leaping current renewable technologies requires investment, experimental freedom, instinctual "hunch" following, luck, and usually a "huh?" moment. And that’s just the beginning. Going from R&D in a university setting to a free marketplace is where things get sticky. People want to (and should) get paid.

Take black silicon, the most recent "great green hype". Ten years ago researchers from Harvard discovered that if you roughen up the surface of a silicon wafer in the presence of a dopant (i.e. sulfur), you increase the photon sensitivity of the silicon. In solar terms, sunlight that lands on a panel’s surface could pass through and convert to electricity at a much greater efficiency. Great work, scientists. (You can geek out a little more with another old article from the Harvard Gazette.)

Now comes the arduous commercialization part. There are barriers between Harvard and licensing. There’s that business model thing. And, there are a myriad of industries that could benefit from this technology. Medical imaging, digital cameras, night vision, and surveillance companies have all popped their heads in the door with a "hey, what are you up to". The solar industry, which is still trying to establish a profitable process of manufacturing and pumping out pure silicon panels, is also in line. Some would argue that it needs to be moved to the front of the line.

The group that has finally licensed the patent for "Black Silicon", SiOnyx, has now positioned itself as a "process engineering" company, meaning that it will attempt to help current industries integrate this technology into current manufacturing processes in an efficient and seamless manner. Part of this group is the brilliant original research leader,Eric Mazur. As a fully funded entrepreneurial venture, the stakeholders (including VC’s and Harvard), will be looking to work with each industry individually to fully capitalize on their research. This appears to be a very smart approach, primarily because inserting the laser methodology into the current manufacturing processes would seem to be the simplest way of achieving quick integration across multiple industries.

The point is, these types of discoveries are what will finally end the "solar is too expensive" discussion. But, commercializing these discoveries takes a painfully long time when we’re all in a rush to decentralize our grid and generate our own power. Every politician, environmentalist, and citizen would love fast track this into the solar industry, but we are at the rightful mercy the free market. Hate it. But love it.

You can read more about SiOnyx at their corporate website here

As the world unanimously goes “uh oh” after seeing the stock charts on Wall Street, Iceland becomes the first country to legitimately teeter on bankruptcy as they nationalize their major financial institutions. Apparently, some cool kids, with their cocky Viking swagger and rebelious attitude against Dad’s fishing business, decided to invest in some European retail businesses and soccer teams. And, they were able to convince the national banks to "go in on it" with them and finance their investments.

Well, when you’re the national bank, and you’re making these investments with foreign debt that’s worth 10 times the country’s GDP, you have to know that a reckoning is coming. And here it is, in the form of Vladmir Putin. It appears that deregulation was interpreted around the world as “my parents are away, lets throw a party”, but then those troublemakers showed up and started breaking mom’s collectible John McCain plates. This has created a serious financial crunch in Iceland, who now are in need of a bailout (wait, no, "rescue package") of their own.

Time for a Hot Geothermal Steam Bath

The financial crisis here and around the world gives us a chance to focus on one of Iceland’s most remarkable achievements. No matter what happens with the banking system, they will have no problem staying warm, powering their lights, or in many cases, powering their cars. Iceland produces nearly all of its electricity from hydroelectric and geothermal, and heats 90 percent of its buildings with steam from geothermal. With all the concerns of inflation, overextended financial sectors, Russians, and bailouts, we should all take a nice hot spring steam before we, as members of the world economy, band together and solve this crisis with smart recovery policies and innovative energy investments.

Who knew that the Emergency Economic Stabilization Act of 2008 would include the extension of the renewable energy tax credit that is so necessary to maintain progress made thus far in the solar industry.  They kind of slipped that in there.  While the free market capitalist in me wants those unscrupulous banks to fail (and as I look through the other strange inclusions I get a little porked out), there is a credit freeze that’s killing businesses right now, and the unlocking of the good credit markets is nearly as important as the renewable tax credits themselves.

So what is included in this bill?

Renewable Tax Credit Extensions:  The Production Tax Credit (PTC) and the Investment Tax Credit (ITC) will be extended, which will solidify jobs and investment in the Solar and Wind industry. The PTC, which provides a tax credit for putting clean energy onto the grid, will be extened for 1 year, while the ITC, which allows homeowners and businesses to get a large credit for investing in renewable energy, will be extended for 8 years.

How can we get it to pass?

Really, the best way to flex your renewable muscles and help the renewable industry grow is to call your representative. This literally takes 5 minutes, and will help put a stamp on the validity of the bill.  Here is a resource to help you find your representative’s number.

An Insightful Guide to the Clean Energy Industry  Stay Fresh with the Feedburn





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