Senses: A blog about the Thirdi Software perception » Angela Merkel

America’s new self righteousness, the global greentech economy, and Alberta’s oil sands

Wes — Sat, 24 Oct 2009 21:45:38 +0000

President Obama is quoted in this weekend’s Globe and Mail, stating with authority that “America must finish first in the global race to dominate new energy technologies”, and why? Because in Obama’s estimation “The nation that wins this competition will be the nation that leads the global economy”. Maybe he read my earlier post about how Angela Merkel said the exact same thing about Germany’s economic recovery over a month ago. He probably didn’t, but maybe one of his aides did! Or maybe he spent some time strolling through Washington’s National Mall where the recent international Solar Decathlon was held. Incidentally team Germany’s solar powered house (or haus) won the event for the second time in a row. Canada placed near the top (4th out of 20) led by a joint effort between Simon Fraser University of Vancouver, and Ontario’s University of Waterloo and Ryerson University, whose project North House will be on display at the Vancouver 2010 Olympics. It looks like they still fell short of convincing some in Washington that we’re doing enough up here to create green technology solutions. Canada has been criticized, even by Canadian party leaders like Michael Ignatieff for falling behind the U.S. and other countries in researching and developing sustainable green energy technology, but perhaps most poignantly by aides and advisors within or close to Obama’s administration; who are steering the economy and moral compass of our largest trading partner. This was the case with former Clinton Chief of Staff and co-chair of President Obama’s transition team, John Podesta. The current President and CEO of the Center for American Progress spoke recently in Ottawa. He makes some very important observations, but I think he ignores a major point in our energy dialogue. He and others, cite access to capital as a significant problem to greentech startups in Canada, as has been addressed in a previous Senses post. As the economic cleantech train leaves the station, Canada might be rushing with some heavy luggage-in-hand to catch up.

According to Gerald Butts CEO of World Wildlife Fund Canada, we’re at the bottom of the list out of all the G-8 countries for our efforts to develop new technologies and become a serious player in the emerging greentech economy. Just this month, perhaps inspired by the Decathlon, the U.S. House of Representatives passed bill H.R.3585, the Solar Technology Roadmap. The bill designates $2.25 billion for solar research over the next five years. America clearly wants to develop and rely on sustainable and clean energy, but the elephant in the room right now is the growing importance of Canada’s oil sands and the continuing environmental challenges they pose. The oil sands (located almost entirely in Alberta) and their labour intensive bitumen extraction are a key pillar in American energy security. And a key pillar standing in the way of recent environmental treaties that Canada is hoped to be part of. So while close aides to Obama can criticize us for falling behind, they’re glossing over the reality that it’s largely because of their own industrial-economic needs. However, there are two new developments are aimed at making the process far less environmentally damaging.

New technology and methods to quicken reclamation of tailing ponds, coined Tailings Reduction Operations (TRO), will dramatically increase the speed at which tailing ponds can be cleaned up from years to weeks. This according to Suncor Energy who recently submitted a regulatory application for changes to the company’s oil sands mining and extraction operations dealing specifically with these tailing ponds. The several energy companies who operate tailing ponds in the province have come under fire repeatedly from environmental and native groups as well as scores of scientists and angry self righteous college students. Recently 1,606 ducks died in a tailing pond owned by Syncrude Energy causing international outrage; the energy company pleaded innocent in court to charges laid against it in those deaths. After that incident the Federal Government implored the industry to create new measures to deal with the tailing ponds. This announcement by Suncor is in response to that pressure. It will no doubt come under fire from some environmentalists regardless of how progressive and successful it may be, but I hope it’s a sign that things are rounding the bend in Alberta.

The second development involves a proposed $800 million dollars of Federal funding for carbon capture and sequestering in the province. The process of burying greenhouse gasses underground however is expensive, and some have been vocal about the economic realities and political trivialities preventing the CCS initiative from really catching on in Alberta. I think most of those voices might reside within the province itself, which has been historically cautious about federal involvement in its energy industry.

Politics and economics aside, it appears the will is there to develop the technology and practices to better the environmental record of Canada in relation to our role as an energy producing state. Until we deal with the Alberta issue though, we will continue to trail- if not fall behind- the United States, Germany and numerous other countries when it comes to the greentech economy that we’re told is unveiling itself around us. In markets around the world greentech IPOs are leading the economic recovery, but some worry we may be witnessing the birth of a greentech investment bubble. Caution aside, we know one thing is for sure. When the U.S. makes big changes to its economy it has a big impact on Canada. So maybe by proxy Obama will steer both his and our country to this promised land of unlimited clean energy and high paying jobs despite what actions political parties here might take. Or maybe his aides will simply continue to criticize us while their economy continues to gorge itself on our exported energy, including the oil sands, Quebec Hydro, BC Hydro etc. etc. Maybe some of their cleantech funding could’ve found its way north of the border being that they’re our largest customer.

Despite what America does, Canada doesn’t owe it to them to be a greentech leader. We owe it to ourselves. Whether Canada’s greentech economy will be developed on our own terms and of our own free will and accord, or if by the gravity of our neighbour we’re to be dragged into Obama’s new energy policy, remains to be seen. As of now though, it seems that the greatest challenge to becoming a clean energy leader are the oil sands; the largest source of oil outside of a politically volatile middle east. That puts us between a rock and a hard place and consumes a considerable amount of funding that could otherwise go to other greentech projects struggling for capital. Unless US energy policy is open and clear about elephant in the room, it falls short of addressing its full energy and environmental realities. And unless Canada can shift focus from cleaning the oil sands to utilizing and developing our clean alternatives we’ll continue to fall short of our friends hopes and expectations; but telling us to clean up our act when they’ve had the keys to the candy shop for years, piping oil from Alberta to their own refineries, is hypocricy. Now that this new and different kind of American self righteousness (which franklyI prefer) has taken hold of Washington, let’s hope that they’ll realize that in order to be the global greentech leader Obama wants them to be they should look to Canada as both a prime place to invest in and an ally to cooperate with, not just a country to criticize for not keeping up with them. John Podesta, if you want Canada to “keep up with you”, how about a little quid pro quo. We gave you Alberta, and now we’re trying to clean it up. Why not invest in our clean energy now too?

BC a cleantech leader? After Alberta and China maybe

Wes — Sun, 04 Oct 2009 23:11:36 +0000

In an earlier post I lauded Angela Merkel for seeing greentech (or cleantech) as a means to propel Germany and the EU out of the recent recession and not just a bone to throw out to voters, like some Canadian politicians seem to view it. Turns out that Greentech allround has truly come into itself as a strong investment engine once again, not only in Europe but here in North America and perhaps most of all in China. It’s only taken 30 years- including Tesla’s inventions about 100 years I suppose- but I’m feeling pretty positive about the recent news that Cleantech has become the largest U.S. venture capital sector and that China’s cleantech market was now potentially valued at one trillion annually. But really, we have few other options considering the finite and externality plagued industrial sectors of old are running out of gas- literally. So is it Obama’s generous opening of future American’s wallets that has caused this impressive growth? Some believe it is. I’ve been critical of Obama not putting enough funding into specific large scale greentech projects in the past- but maybe he and his super genius advisors knew that the scent of government funding to VC is like the scent of blood to sharks. In any event the funding for greentech still remains lower than it was in 2008 according to Daily Finance but the news is positive.

Instead of a frenzy of survival investments, the “IPO market has clearly reopened” as Parker Weil, co-director of the Merrill Lynch and Bank of America’s North America Energy and Power Group stated at a recent conference in San Francisco. Basing this belief on a number of things but perhaps most notably on the explosive success of A123 Systems’ IPO on the market late last month. As the A123 System website shows, they were recipients of a US Department of Energy Grant to build better batteries. That grant money came out of the Obama stimulus bill. So maybe my past criticisms can be abayed for now.

So what’s going on in Canada and in British Columbia?

Well, in Alberta the new Carbon Technology Fund has been growing thanks to the abundance of greenhouse gas emitters in that province. Now with $120 million to burn, Greentech is the buzzword in Edmonton.

In March Ontario announced a $250 million Greentech fund while shortly after that the Canadian Federal Government launched a $850-million clean energy fund, about $650-million of which goes more or less directly to Alberta in the form of carbon capture and storage initiatives. Something I believe the oil companies should be using their insane profits for instead of receiving tax dollars.

In Vancouver, Premier Campbell and Minister Stockwell Day celebrated the arrival of a hydrogen fuel cell powered bus. The bus is the first of what will eventually be the world’s largest fleet of fuel cell busses at 20 strong. The 2008 BC energy plan makes lots of noise about new emissions standards and in the process through the ICE (Innovative Clean Energy Fund) has “approved investments of over $47 million in 34 projects” throughout communities in the province (even though the fund is only $25-million) helping to develop clean and renewable energy; the exact details of which I would love to know. The Provincial Liberals seem committed to hydrogen, even though it has proved to be less viable than other forms of energy. Could it be that when they started thinking clean was cool, Ballard’s stock was roaring, and they haven’t really put much thought into it since? In any event, the fact that a new coal mine in the province is being seriously proposed, discredits any green credentials the current BC government is trying to build in my opion. And the mine has nothing to do with our energy needs either- 40% owned by Japanese and South Korean interests it will be for coking, in the manufacturing of steel products made in those countries. Much like Norwegian Salmon Farming corporations who own 90% of industrially farmed salmon operations in BC, keeping the profits but leaving the province with 100% of the pollution and problems, the BC government is keen to open the door to our environment to foreign interests once again. If the BC liberals really want to get greentech cred they’d embrace closed containment technology for salmon farms, like China has for trout, and put a stop to the Raven Site mine proposal. Both activities will otherwise take their environmental tolls in the same area of our Province, the Georgia Strait. And to the overall health of our environment globally.

So to sum it up, BC is being outdone by both China and Alberta when it comes to investing in clean, green technologies. How does that make you feel? You Alberta and China slagging, granola chewing, MacBook using, lululemon wearing, mountain biking, grouse grinding British Columbian?

$25 million to greentech in our province? And 100 million to a new coal mine? When Alberta is dwarfing BC in funding for cleantech, and China is embracing the clean technologies produced and rejected here, you have to shake your head and wonder how hypocritical it makes us look? Or rather how hypocritical the current provincial government make us look? Maybe, if and when, Gregor Robertson is Premier, he’ll take the same kind of leadership he’s shown in Vancouver with the Vancouver Greenest City initiative and we can really have something to show for in the province. Until then, we’re chasing the cleantech train instead of riding it.