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December 18, 2008

One Last Chance: Starting a Green Business

I live in Michigan with my family. We have owned our own construction business for over 10 years now, but with the economy we have watched everything we built slip away and like many others, we now find ourselves at a crossroad that we cannot deny. Either we try to wait for better days, or we change course to something new. We have chosen alternative energy. But after trying to weather the economic storm, we find ourselves in a place to only have one shot to financially make the right choice. The big question is which is the smartest direction to take in starting a alternative energy business in the future. If your son or daughter asked you for advice in this matter what would you tell them? Thank you for your valuable time. -- Christine, T., Mancelona. MI

Christine,

In this harsh economic meltdown, literally hundreds of thousands of small businesses are being pushed to the edge. My heart goes out to you. Energy prices, primarily gasoline and in some cases natural gas, are also going down in response to less demand due to this worldwide recession. And lack of credit for businesses and consumers also tamper demand to those interested in reducing energy costs, lowering emissions and being technology leaders. So I am not surprised about the gloomy outlook for the alternative energy market.

But, electricity prices are not lowering and in some cases still going up. State and local government incentive programs are still active, you can log onto www.dsireusa.org to find what incentives are offered. Because the economy is so bad, tax credits and tax exemptions may have less influence on market decisions because many businesses and individuals will not have large tax liabilities they are trying to offset, which made clean energy investments attractive.

So I would begin to focus my business to sectors receiving grants. In Michigan, I see these State Grant Programs: Biomass Energy Program Grants, Community Energy Project Grants, Energy Efficiency Grants, and Large-Scale Photovoltaic Demonstration Project Grants, and one Utility Rebate Program Wisconsin Public Power, Inc. - Renewable Energy Rebate. These areas would deserve attention because grants bring in dollars directly for the consumer.

The energy efficiency market is underserved. Whether it's buildings — insulation, double and triple-pane windows with low-e coatings, sealing ducts, smart energy controls, solar daylighting and water heating, pv attic vent fans and ground-coupled heat pumps, as well as water-saving technologies — all have immediate payback for the customer.

There is also industrial efficiency including smart controls, the aforementioned building efficiency applications, transpired solar and solar-driven radiant and air space heating, as well as extremely efficient motors, manufacturing controls, waste heat or combined heat and power systems and the host of on-site renewable energy distributed generation all make economic sense. States such as Michigan, are focusing on making their existing industries more competitive and the incoming Obama administration is expected to pump even more money into reviving our traditional industries as they emphasize growth in the green industries.

Finally, both the federal government and state and local governments have set goals for energy efficiency and renewables in their buildings and facilities, which include both renovations and new construction. I would contact the appropriate web sites for both federal, state and local governments to get onto their RFP announcement lists, so you can bid on projects. Governments are good clients because they have funds and will pay.

Teaming up with companies that have previously won construction and renovation contracts is a good tactic if they have performed well in prior instances. I have participated in many teamed procurements where I bring in my specific expertise and rely on others for their areas of expertise.

The economic downturn will get better, and as the economy gets better, demand for energy will increase and energy prices will again rise. I've been through this seesaw several times in my life. Whether you cycle in or out of the clean energy industries or stick through the ups and downs of this industry, the future still looks solid for the green alternative energy industries.

Best of luck,

Scott

Reader Comments (14)
 
No image available
December 19, 2008
A balanced and focused comment Scott. Educating the public thru classes and demonstration projects may be another source of grant-generated income.
Comment 1 of 14
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December 19, 2008
I have searched diligently for solutions to our energy crisis which is two part: inordinate and wasteful consumption, and dependence on finite fossil fuels -- no news with there.  The solution is syngas and biochar and algae-to-biodiesel.  These energy sources are the subject of Algal Oil Diesel (http://algaloildiesel.wetpaint.com ).

These technical solutions are now in commercial operation.  Biochar (terra preta) has been around over 7000 years and is agriculture's new "Black Gold".  So what are we waiting for?  Ans: Money to kick-start a coop public utility district.  In Oregon, that would be a Peoples Utility District. 
 
Energy, especially electrical energy, is the "lowest common denominator" of the solution, is long-term and drives most of our economy and life support.  The citizen-derived solution includes biodynamic agriculture production and syngas reactors which use woody waste and ag field waste to create syngas and biochar, and use CHP technology to generate green electricity. The algae is used to trap the flue gases from the syngas reactor and use such gases as nutrients. The biochar is a net negative CO2 sequester.  

I have in mind creating a Peoples Utility District in central Oregon and generate and sell locally, green electrical energy.  See: http://centralpud.wetpaint.com/page/PROPOSED+CPP+PLAN.
 
This is the "springboard".  We use the profits from CPP to help form other PUD's and give the newly create PUD help with the technology. See: http://algaloildiesel.wetpaint.com/page/SYNGAS+AND+BIOCHAR
 
We also create a "Community Development Credit Union" which helps sell the revenue bonds.  Our focus is local so sales of the bonds are made to our customers, suppliers and supporters --- as "locavore" as possible.
 
Comment 2 of 14
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December 19, 2008
Consider that energy is the "lowest common denominator" and controls all commerce and our quality of life.  Thus, all worker cooperatives should have a finger or leg in local green energy production and distribution.  My CPP plan is so designed.
 
I invite you and your friends to join in helping me create CPP and get it up and running in Oregon.  Once CPP and its credit union are established, then we will want to export all we know and some funding to any startup energy cooperative. 
 
There is a coop in Portland which owns a small biodiesel transesterification plant as to which all members have access for making their own biofuel, mostly from locally collected waste fryer oil. I heard that there are two such BUGs in California.
 
Even if your group are foodies or other end products, it would behoove you to engage in helping create energy coops all around the country.  Please take up my request with your board and let me know if they are interested.  If so, then we can workout the details.
Before you make up your mind about this science, please read the articles and research notes at the above wikiweb and study the technology summarized at: http://algaloildiesel.wetpaint.com/page/SYNGAS+AND+BIOCHAR
 
This and other technology would form the basis of a "locavore PUD" whereby many local syngas / CHP generating plants would be connected with customers via a "MESH" distribution system. This plan for Central Peoples Power (CCP), in schematic form, is at: http://centralpud.wetpaint.com/page/PROPOSED+CPP+PLAN
Comment 3 of 14
No image available
December 19, 2008
My purpose in writing you is to ask you to help me create the business plan for CCP and to review our proposed grant application for $50,000 grant, to the Bonneville Power Authority. I have had some experience in writing and obtaining grants and have written many standard business plans, but not for a cooperative, as such. My studies of intentional communities is found at: http://masallp.wetpaint.com/
 

Best regards,

Jim Miller
jimmiller5417@yahoo.com
Comment 4 of 14
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December 19, 2008
Having also been in the construciton, real estate and mortgage industry, I saw this crisis developing back in 2001 when mortgage underwrtiing went south, and with banks taking almost any mortgage paper, with the Frannie and Freddie fraud, it was just a matter of time, so I too looked at alternative energy as I had already been researching it for years. I shifted to green construction and low cost housing alternatives using compressed earth bricks, and started building low cost housing in Grenada to help with hurricane destruction.

Long story short, it was near impossible to get this form of construction accepted in U.S., even with hurricane destruction over past few years. Adbobe was thriving after many years of stigma of poor housing, but our system was one that produced hydraulically pressed bricks which looked just like a brick home when finished.

Using this form of construction, combined with off grid power generation and low cost HVAC system, I was aiming to produce a whole home solution to rising contruction costs, but sadly, economy started to go south on all construction, so I started to focus on hydrogen home generation systems combined with advanced generator technology and small rotary motor fueled by hydrogen to power generator.

Simply put, there will always be a need for lower cost energy, and with all the advances I have researched over the years, there will be many new green energy alternatives hitting market, so all you have to do is choose the right one and align with it. Where solar has failed to penetrate market due to cost, these newer breakthroughs hold more immediate promise. As example, an HVAC conversion at half the price of conventional heating and air conditioning and uses only 120VAC at a tenth of cost. That is where I am focusing at the moment for any new technology that is less costly to purchase, install and operate and is green will always have a market.

Good luck, Mike
Comment 5 of 14
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December 19, 2008
Christine
I do sympathize with your situation but your first need is to change your perspective.
If you move into a RE or any other business endeavor, and fail, you have not finished the game. You must take your newly gained education and experience learned from your not succeeding (I did not say failure) and start on another approach.
History is filled with success stories of people who would not give up. Those who see only defeat from temporary setbacks are the ones who have chosen not to succeed.
best of luck
Jim Duncan
North Texas Renewable Energy
Comment 6 of 14
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December 19, 2008
Scott, appreciate your enthusiasm and encouragement to Christine, but I have to question your characterization of efficiency measures such as low-e windows and ground-coupled heat pumps as having "immediate payback for the customer". If that were true, there would be no need for big incentive programs and the natural gas furnace industry would cease to exist!
Comment 7 of 14
No image available
December 19, 2008
Mike, I would like to talk to you regarding the advanced generator technology and the HVAC conversion. Please contact me at bobking99@bellsouth.net
Thanks
Comment 8 of 14
No image available
December 19, 2008
Mike,
I too would like to hear more about the HVAC conversion. Please email me with your contact information at jeff.shively@pagopagodivers.com.
Best regards.
Comment 9 of 14
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December 19, 2008
Christine,
please check out the recent issue of Solar Today, at solartoday.org
Nice info

I would suggest trying to really nail down the return on investment of a solar system to heat hot water for homes. If you are POSITIVE of a good return on investment for the homeowner, with one of the many companies offering this technology, then it might be good direction to at least consider. Now,,,,,,,,is there a market for this technolgy in your local area ? If there isn't the interest/demand, then mabe it's not a good idea yet. Go door to door, ask the people. If it was available, would they actually spend the money on a system ?

Also, check Sundrum Solar. Keep looking, there are more.

The Zero Enegy Home Challenge, is also interestng. It seems like more and more people are starting to learn about global warming, and asking what they can personally do. Properly building a home, will eventually be one answer that will gain momentum.

Thin film solar manufacturers are joining together with metal roof manufacturers, right now. Thus bringing the cost of solar down substantially. Fabral, is just one of those roofing manufactures.

Joe
Comment 10 of 14
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December 20, 2008
People feeding off the publicly funded conventional utility grids are like drug attics. You will never convince the attics to free themselves. And as long as giant publicly funded / subsidized utilities exist their mandate will always be to increase the consumption of their product, not reduce it.
I live in the Peoples Republic of Minnesota and our public utilities are not public anymore because of a half a__ed attempt to deregulate, but they are totally protected by the laws of the land and their viability is guaranteed. It goes deeper than that though. Add to this grim matrix the fact that local zoning authorities have thrown up regulations or outright bans on the installation of alternative energy systems and you now have a glimpse of the Iron Triangle that stands in the way of the alternative energy market.
Comment 11 of 14
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December 21, 2008
Look out for yourself, because no else is. Everybodies brother is getting in on the Alternative Energy Bandwagon. They are all competing with each other. I like this guys idea, and a lot of the homemade energy plans, that do it yourselfers are doing and going to win this game, before big time marketeers.

http://www.rinf.com/forum/showthread.php?t=6179


DJ
Comment 12 of 14
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December 22, 2008
Mike,
Could you explain in more detail you field of business and the HVAC conversion? Please email me with your contact information at samguzman@Advanced-Energy-Systems.com

Regards,
Sam Guzman
Comment 13 of 14
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December 30, 2008
Over the next few years there will be many new technologies developed .

A new Jersey privately owned research and development company has brought to market technologies that will allow the consumer to achieve a doubling and sometimes tripling of automotive fuel economy . They " Guarantee " a 50% improvement or 100% money back . There are several other systems similar however they are unable to sustain their gains and thus do not provide for performance guarantees .

Go to http://www.minimizefuelprice.com . View the two short videos that explain the technologies and how they accomplish sustainability .

They have been focusing on the training of master mechanics to fulfill the demand for " Certified " installation and tuning of their system . This network of trained Certified Installers , Certified Trainers and Certified optimizer Tuning Technicians ( COTTs ) since 06/25/2007 .

The COTTs are the main ingredient to ensure the gains are sustained . There is a dire need for training course applicants .
Comment 14 of 14
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