Practical Experience Reveals That Energy is a Business'
Third-Highest Cost.
Practical Experience Reveals That Energy is a Business'
Third-Highest Cost.
John Hurst www.RenewableEnergyStocks.com January, 2006
With America's commercial business sector leading demand, the
cost of providing energy to the nation's business and
residential consumers is expected to easily exceed $200 billion
this winter.
Walter W. 'Chip' Schroeder, President of Distributed Energy
Systems Corp. (NASDAQ: DESC), which started out as a hydrogen
company, succeeded originally on the strength of the excitement
surrounding fuel cells five years ago. "The reality is that
nobody has succeeded with fuel cells," he said, "to anything
like the degree of performance and particularly cost that they
were aiming to achieve by now."
With fuel cells still not ready for prime time, Distributed
Energy adjusted its sights by adopting ready-for-market
technologies and acquiring a company that builds projects and
delivers power to end users looking to supplementing their grids
and getting more control over their electricity supplies. It
worked and Schroeder now says, "We're trying to do above ground
what a number of technologies have proven very successful below
ground.
"Things like directional drilling, seismic and measurement well
drilling have greatly improved the ability to turn marginal
resources into profitable production. Above-ground technologies
are letting us direct energy to its highest and best uses, more
effectively. All electricity is not demanded equally. Now,
control over the price, reliability and quality of the power is
achieved." The subsidiary, Northern Power Systems, designs and
installs systems in parallel with a grid at points where the
value of electricity is highest.
"People need energy for all sorts of different uses, and some
are much more valuable than others. Technology is helping to
achieve differentiated quality of service in a way that really
wasn't commercially feasible even five or 10 years ago. We are
building high efficiency (70% or better) systems that yield
three to four year payback and significantly improved
reliability." he said.
George Burnes, President of SmartCool Systems, Inc. (OTC.PK:
SSCFF; TSXV: SSC), explains the primary driver towards
commercial energy efficient technology as being the desire to
reduce operating costs. Energy, he added, is typically the third
largest operating expense for a business, ranking behind only
salary costs and rent.
"In addition to this as we move forward into the 21st century,"
Burnes stated, "pressure from governments and environmental
lobby groups as well as geo-political events is accelerating
global demand to reduce the dependence on fossil-fuelled
electricity generation. International treaties such as the
'Kyoto Accord' have resulted in many countries formally
committing to significantly reduce 'green house gas' emissions.
"Recent geo-political instability in major fossil fuel producing
regions has only served to increase public demand within North
America to reduce dependence on fossil-fuelled electricity
generation. This has resulted in cash and tax incentives being
offered by utilities and local governments in many states and
provinces to encourage industrial, commercial and institutional
users to reduce electricity consumption through the installation
of energy savings equipment."
Burnes said businesses are looking for the means to reduce
costs, increase profits and satisfy ever-increasing demands to
reduce greenhouse gas emissions and preserve the environment.
The Dow Chemical Company (NYSE: DOW) said it has established
relationships with a number of organizations on energy
efficiency. Dow is an active member of the American Chemistry
Council's Energy Team. Dow is also a member of the Consumer
Alliance for Affordable Natural Gas (CAANG), which advocates for
a renewed nationwide focus on energy efficiency and
conservation, as part of a comprehensive and balanced U.S.
energy policy. The Company is participating in an industrial
energy efficiency campaign initiated by the U.S. Department of
Energy and is also a major corporate sponsor of the Alliance to
Save Energy's "The Power is in Your Hands" consumer energy
conservation campaign, launched in December, 2005.
A Dow spokesman in Houston, TX, commented, "Dow is also
committed to helping consumers reduce their energy consumption
by producing products that help lower electric bills while
making a positive difference for the environment. Cars, homes
and buildings use significant amounts of energy. Dow offers many
energy efficient solutions including STYROFOAM