Australian CleanTech

What’s Wrong with Cleantech?

2010-01-22T12:24:00.001+10:30

This article was published in Environmental Management News on 20 January 2010

This should be the time when the cleantech stocks start to significantly outperform all other stocks. It should be the time that those that have been investing in the sector finally get to say ‘I told you so!’ So why are the cleantech stocks in Australia faring so badly?

There are certainly some issues that have had clear impacts on those companies that need a strong, or indeed any, carbon price. The Australian Emissions Trading Scheme, or whatever it may be called in the end, is delayed and highly uncertain and the outcome of Copenhagen was even more underwhelming than the predictions. If you are a company getting ready to make money from a mandatory carbon market in Australia, there is still a little while to wait.

But there appears to be plenty of good news: the Renewable Energy Target is driving wind farms, although it is maybe driving solar hot water systems harder at this stage; the photovoltaic industry continues to thrive and is looking at further reductions to their supply costs in 2010 according to an upcoming report from the Clean Energy Council; and supply chain pressures are starting to build on the larger industrial companies with the publishing of the first NGERS figures and with analysis from companies such as Reputex that have analysed the supply chain emissions for the ASX200 companies. Even environmental standards in water, air quality, engine performance and recycling all seem to be creeping up, which should be driving the adoption of cleantech products and services.

There is undoubtedly the feel that the cleantech industry is growing quickly and that many are starting to generate good revenues with healthy margins. The public measure of cleantech, the ACT Australian Cleantech Index, is however having an appalling run. So where is this disconnect?

The ACT Australian Cleantech Index tracks 76 listed companies that generate the majority of their revenue (or future revenue if they have none) from defined cleantech activities. At the end of December 2009, the combined market capitalisation of all the constituents was A$10.5 billion, falling from its peak of $16.3 billion in July 2007. In FY07, the Index increased by 43%, more than the Small Ordinaries, and, in FY08, it fell by 16%, less than the ASX200. In FY09 however it fell by 39%, more than both of these benchmarks. The story has got worse over the first half of FY10 with the recovery experienced by most of the market bypassing most of the larger cleantech stocks.

Over the first half of the 2010 fiscal year, the ACT Australian CleanTech Index recorded a loss of 4.9%, compared with the 24.3% gain by the S&P ASX200 and the 26.7% gain by the S&P ASX Small Ordinaries.

The best performer of 1HQ FY10 Eco Quest Ltd, whose share price gained 189%. Other good performers, all of which had gains in excess of 50%, were Solco, Enviromission, Advanced Energy Systems, WHL Energy, Mission NewEnergy, Dolomatrix, Stericorp, Pro-Pac Packaging, Traffic Technologies, Gale Pacific, CBD Energy, Revetec, Greenearth Energy, Carbon Conscious, Pacific Enviromin and BioProspect.

Those that performed poorly with losses of greater than 50% over the first half of the year were Hydrotech International, Skydome Holdings, Pacific Environment and Jackgreen.

A closer analysis of the index performance shows that, whilst many of the smaller stocks have recovered quicker than the general market, the larger cleantech stocks such as Sims Metal, Transpacific Industries and Infigen Energy have not recovered as quickly. This has been the primary cause of the Australian Cleantech Index being left behind.

The sub-indices provide some further clues to this performance. The stand-out sub-sectors for the six months to December 2009 were the catch-all ACT Efficiency/Buildings/Biomaterials/Energy Storage/Fuel Cells Index, driven by strong performance by a number of different small stocks, and the ACT Biofuel Index, driven by the recovery of Mission NewEnergy.

The worst performer was the ACT Solar Index, driven by the 45% decline in the Quantum Energy share price over the period. Another poor performer was the ACT Waste Index, which contains some of the largest stocks (Sims Metal Management and Transpacific Industries).

So what does this all mean? Why isn’t the Index chart looking like the predicted ‘hockey stick’?

I think the recent results tell two stories. Firstly, and probably more reliably, it shows that the listed cleantech sector is still relatively small and immature. That the few larger companies have underperformed, generally for very specific reasons, has significantly impacted the whole index. If there were more, larger companies, then these isolated underperformers would not have such an impact.

Secondly, and maybe hopefully, the recent underperformance of the sector indicates that there is currently good value to be found in some of the stocks. 2010 is likely to see the listing of a number new cleantech companies, including at least one from China, as well as the recovery of some of those that have been slow to come back, so maybe this will be the year of the ‘hockey stick’.

The fundamental drivers of cleantech are unchanged, despite the delay in some of the carbon related schemes. It therefore feels just a matter of time until the performance of the listed cleantech sector reflects this promise.

I look forward to writing about how ‘I told you so’ in this column in January 2011.

Sydney Cleantech Network drinks, 11 Februay

2010-01-22T12:21:00.001+10:30

You are invited to attend the Sydney Cleantech Network on Thursday 11th February 2010, 5:30 until 7:00pm

at

the Offices of Macquarie Bank, Mezzanine, No.1 Martin Place, Sydney

Including:
- a presentation from Ben Keneally, Head of Marketing & Strategy at Better Place on The future of the electrification of transportation in Australia and its impact on energy storage and distribution.
- 2 minute pitches from growth companies looking for investors, partners or just wanting to announce company developments. Please register in advance if you want to pitch.

There is no charge for attendance but bookings are essential. Please RSVP by COB on Monday 8 February to scn@auscleantech.com.au

Who should attend?
The cleantech sector comprises industries with both environmental and economic benefits. Sub-sectors include renewable energy (wind, solar, wave, tidal, hydro and geothermal), water, waste and recycling, energy efficiency, green buildings, biomaterials, energy storage and fuel cells, environmental service providers and carbon traders. The Sydney Cleantech Network aims to provide education, forge links and facilitate collaboration between the cleantech sector, the finance industry, academia and government services.

Interested in Pitching?
There will be a limited number companies invited to pitch at each event. If you are interested in pitching, please email pitching@auscleantech.com.au for more information.

Adelaide Cleantech Network, Networking Drinks, 4th February

2010-01-22T12:18:00.002+10:30

You are invited to attend the Adelaide Cleantech Network drinks on
Thursday 4 February 2010, 5:30 until 7:00pm

at

the offices of Innovate SA, Level 14, 19 Grenfell St, Adelaide

Including:
- a short presentation on Business Innovation Through Sustainability by Saindhav Tamhane, Innovate SA.
- 2 minute pitches from growth companies looking for investors, partners or just wanting to announce company developments. Please register in advance if you intend to pitch.

There is no charge for attendance but bookings are required. Please RSVP by COB on Tuesday 2 February to rsvp@auscleantech.com.au

Companies that are investor ready and actively seeking investment are invited to undertake a two minute pitch. Please email pitching@auscleantech.com.au for more information

Who should attend?
The cleantech sector comprises industries with both environmental and economic benefits. Sub-sectors include renewable energy (wind, solar, wave, tidal, hydro and geothermal), water, waste and recycling, energy efficiency, green buildings, biomaterials, energy storage and fuel cells, environmental service providers and carbon traders. The Adelaide Cleantech Network aims to provide education, forge links and facilitate collaboration between the cleantech sector, the finance industry, academia and government services.

Water, water everywhere....

2009-11-22T12:09:00.003+10:30

This article was first published in the international Cleantech Investor magazine. Email info@auscleantech if you would like a full version of the article.

Australia is blessed with many natural resources to assist the growth of its cleantech sector. Some of the wind resources are exceptional, the wave resources are world leading and the hot rocks are driving big investments into the geothermal sector. Most of all, Australia is synonymous with solar radiation and much of the country has a ridiculous amount of solar resource to play with. There are of course issues with respect to NIMBY complaints for sites near communities and the fact that the best resources are never closest to those population centres – luckily the desert has few back yards to worry about.

Australia has another natural competitive advantage in the cleantech space: one that is not so apparent. The climate is highly variable with respect to its rainfall and as such there can be long periods of drought followed by long ‘wets’. Much of South-Eastern Australia is still suffering from the effects of a drought that started in the first years of decade. This has led to severe water restrictions in many areas, with the banning of sprinklers and specified watering days. This variability is likely to be exacerbated by climate change, but its existence is not new. The natural competitive advantage of having little water has therefore made the Australian water industry innovate to survive.

......

Sydney Cleantech Network Event - 19 November

2009-11-22T11:53:00.005+10:30

Clayton Utz hosted the Sydney Cleantech Network event on 19 November with over 140 attendees.

The evening featured a presentation from Matthew Warren, CEO of the Clean Energy Council on ‘Whether tax breaks help cleantech companies across the valley of death?’.

This was followed by two minute pitches from the following growth companies:

- BluGlass - Giles Bourne - www.bluglass.com.au (LEDs and Solar)
- NEP Solar - Johan Dreyer - www.nep-solar.com (Solar)
- Elemental Energy Technologies - Michael Urch - www.eettidal.com (Tidal)
- BTOLA - Bevan Dooley - www.btola.com (Biomass)
- Fuel Concepts - Andre Botelho - www.fuelconcepts.com - as I mentioned on night Andre was unfortunately detained and will present at the February event. (Vehicles)

Other links mentioned during the evening were:

- Azo Cleantech - www.azocleantech.com - onlisting of cleantech products and services.
- CleverGreen Conference, Adelaide, 15-16 February - www.southaustralia.biz/Innovation-in-SA /Clever-Green-Conference-2010.aspx
- Cleantech Investor, international cleantech publication - www.cleantechinvestor.com

The next event will be held on 11 February and will be hosted by Macquarie Bank. If you wish to be added to the distribution list for this and future events please email scn@auscleantech.com.au.

Sydney Cleantech Network Event, 19th November - SPEAKER & PICHTING COMPANY DETAILS

2009-11-06T21:29:00.001+10:30

You are invited to attend the Sydney Cleantech Network on Thursday 19 November 2009 from 5:30 until 7:00pm

at the offices of Clayton Utz, Level 34, No.1 O'Connell Street

Including:

- a presentation from Matthew Warren, CEO of the Clean Energy Council on ‘Whether tax breaks help cleantech companies across the valley of death?’.

- 2 minute pitches from the following growth companies:

BluGlass - BluGlass (ASX: BLG) is developing innovative semiconductor technology to reduce the cost of producing next generation high efficiency LED and solar cell devices.

BTOLA - A global opportunity to halve the cost of micro-generation, with BTOLA’s patent pending turbines that run on biomass, waste and more

Fuel Concepts - Fuel Concepts is an Australia based company that is the worldwide licensee and distributor for a patented technology (founded by Fuel Concepts of America) that substantially reduces fuel consumption and carbon emissions for any gas-electric vehicles.

Elemental Energy Technologies - The SeaUrchin is an elegantly simple and efficient, environmentally-friendly, second generation marine vortex turbine generator offering major cost, performance and deployment advantages over the first generation marine technologies occupying the market place today.

NEP Solar - NEP Solar is a supplier of concentrating solar thermal collectors; its first product the PolyTrough is a parabolic trough collector aimed at the industrial heat market (up to 250°C) focussing on lowest cost per kWh delivered over the life cycle .

There is no charge for attendance but bookings are essential and you will not be able to attend without having pre-registered.

Please RSVP by COB Tuesday 17 November to scn@auscleantech.com.au

Green Bubbles?

2009-11-06T21:25:00.001+10:30

This article was originally published in Ethical Investor

For those of you who always see the glass half-empty, there is much to worry about in ‘green’ investments at the moment. If you look a bit deeper however, the fundamentals of cleantech investing are actually becoming even stronger.

So, first for the bad news! The CPRS is still uncertain and appears to be getting weaker by the day. The geothermal industry is progressing slowly but is still suffering the aftershocks of Geodynamics well blow-out. The solar thermal industry was perplexed by the outlined criteria for the Solar Flagships Program, which is currently being rebuilt by the Boston Consulting Group. Furthermore, many see the credibility of solar thermal to be damaged by the collapse of Solar Systems after spending a huge $150m in development capital. The Biofuels industry collapsed in 2006 and, as indicated by the 43% loss in ACT Biofuels Index in the 12 months to 31 August, continues to decline. The plug-in electric vehicles being developed the world over will face little challenge from The Green Car Fund’s support of Holden’s four-cylinder ‘innovation’ and the hybrid Camry.

Wind farms could be seen as the only hope in the energy sub-sectors, but, with the honourable exception of Infigen Energy, little of the consequent investor benefits are held in dedicated listed vehicles.

Institutional investors in Australia, despite the great work of publications such as this, are largely unaware and uneducated on the potential and the practical risk profiles of cleantech investments. This has meant that will not provide funds and mandates to the venture industry to enable the commercialisation and growth of many of the emerging sectors. Some of the venture capital fund managers would love to be provided with more ambitious mandates, but the institutional investors are not yet ready to take that step.

The good news is that all of the above has meant that there has certainly been little irrational exuberance in the Australian cleantech market with the corollary that there was no Australian bubble to burst. The only sub-sector that showed signs overheating here was in the last group of listing geothermal companies.

But there is more good news other than there being no bubble to burst. The growth of cleantech investments is underpinned by four key and strong macro-economic drivers. Firstly, there are many tangible assets being constructed to provide core services such as power, water, waste and recycling. Secondly, the demand for these core services and for a reduced impacts on the natural environment is growing due to both population growth and increasing wealth. Thirdly, as the world continues to use and deplete its natural resources there is increasing pressure on communities to adopt cleantech solutions to increase efficiency and decrease waste. Finally there is the recognition of climate change and consequent regulatory regimes.

There is also increasing activity on a local and global scale that will assist in the growth of Australian cleantech companies and secure returns for their investors. Azo Cleantech, run out of Sydney, is fast becoming one of the world’s leading reference tools for cleantech companies and provides an opportunity to take Australian products to the world. The Adelaide and Sydney Cleantech Network’s offer opportunities for companies to pitch and for all involved in the industry to network and collaborate. My company is working successfully with Australian listed cleantech companies and successfully connecting them with institutional investors in Germany to increase the diversity and strength of their share registries.

Regardless of political decisions, the future for cleantech, both here and abroad, is bright. It has multiple global drivers and government backing which makes it stand out from previous growth industries. As it grows, mainstream corporate Australia will buy in because of supply chain pressures from their customers and also from increased environmental performance reporting by groups such as Reputex.
The glass is definitely half full and the opportunities for good returns from investing in cleantech are plentiful.

Australian politics, wind and batteries….

2009-11-06T21:21:00.001+10:30

This article was originally published in the international Cleantech Investor.

The media coverage of the latest round of climate related legislation in Australia has been hysterical to say the least. Emissions intensive industries will emigrate to carbon-friendly countries, coal fired power stations have already stopped long term maintenance causing power cuts in the height of summer, exports will be slashed, jobs will be lost and the country will generally go into a steep and unavoidable economic decline.

The voice of the cleantech industry is not as loud, but is not dissimilar – potential green jobs will be lost, the country will be left behind etc etc. I’m sure there is nothing unique about the Australian debate.

The legislation that has been passed establishes a Renewable Energy Target (RET) of 20% of stationary power to be generated from renewable sources by 2020. This will increase the annual generation from its current 9,500GWh to 45,000GWh. The legislation is enforced through energy retailers having to submit sufficient Renewable Energy Credits (RECs) as compared to their total energy sold. As the RECs can be banked in advance, it is believed that most of the target will be taken up onshore wind farms constructed over the next five years or so. This could lead to over 10,000MW of installed wind capacity being constructed at a cost of over A$20 billion. Forecast forward REC prices vary, but may end up at around A$40 with a REC being roughly equivalent to 1 tonne-CO2e.

Another piece of legislation that was defeated in the Upper House and will be re-introduced into the parliament in November is the Australian Emissions Trading Scheme, which the Government has called the Carbon Pollution Reduction Scheme (CPRS). This was voted down primarily by conservative politicians worried about impacts on both rural communities and emissions intensive industries. There was also a resurgence of climate scepticism and a view that there is no point making any decisions until after Copenhagen. The scheme, in its current form, is a heavily watered down version of the first draft. It proposes a fixed carbon tax for its first year of operation starting in July 2011 and then a tradeable carbon commodity thereafter. The targets are modest at only a 5% reduction on 2000 levels by 2020 and the carbon price is not expected to exceed A$25/tonne-CO2e during this time. There are aspirational targets that are bigger but the conditions are sufficiently onerous to preclude their consideration. There are carve outs for petrol and for most of the emissions intensive and export industries, so, even if passed, the CPRS will not appear to drive significant behaviour change. The draft allows for unlimited import of credits from CDM projects but no export of credits from Australian projects. This has met with disappointment from investors looking towards developing local projects and seeking to trade credits on other markets with tighter targets and the potential for higher carbon prices.

There has been significant debate here on the impacts of this legislation on the cleantech industry in general and which subsectors will be most impacted. Over the longer term, the technology winners will be those technologies that provide required solutions at the lowest costs. In the short term however, there will be a huge impacts on individuals, companies and investors.

A quick look at which of the sub-sectors of the Australian Cleantech Index have performed well in the last six months demonstrates the correlation between policy and investment returns. The ACT Solar Index has increase by 119% in the 6 months since 31 January, driven entirely by the increased demand for rooftop solar photovoltaic panels resulting from government rebates for small scale pV installations. For instance, investors with $1,000 invested in Quantum Energy on 31 January 2009 could have cashed in $3,750 if they had sold out six months later.
Over the same period, the ACT Wind Index increased by 33.1%, roughly in line with the overall index. The RET legislation had not yet been passed and investors were clearly not yet confident enough in its passage to inflate the share price of the likely beneficiaries. There is a strong expectation that these enhanced returns will now materialise.

Big solar also appears to be set to make significant progress through a A$1.5 billion Government funding program to be rolled out from 2010. Winners from this may include companies such as Wizard Power, Acquasol and Solar Systems.
A valid question is whether the investment in wind will exhaust the investment appetite for cleantech and leave nothing for the other sub-sectors. Will sub-sectors such as water, waste, vehicle technologies, energy efficiency and energy storage simply stagnate in Australia whilst their cleantech cousins in clean energy boom?
Looking at the fundamental drivers of cleantech, the answer is clearly ‘no’. The other sub-sectors may not accelerate as fast in the short term and maybe the investment returns will not be so strong. However, the demand for increased resource efficiency, reduced waste and improved environmental performance will ensure that technologies across the Australian cleantech spectrum will succeed even in the short term.

Given the focus of this edition is on electric vehicles (EVs), it is worth providing an overview of the current activity within this sub-sector in Australia. Better Place has recently announced its first Australian project in the nation’s capital, Canberra, with financial support from Macquarie Bank.

There has however been little progress on the domestic development of electric vehicles, with talk more of trials of imported vehicles from the likes of Mitsubishi and Renault. To demonstrate the status of the Australian car industry, the local GM subsidiary, GM Holden, made a big announcement in late 2008 that, with significant and vocal Government support, it would start to manufacture a four cylinder car within a few years as a significant energy efficiency on its standard six cylinder model!

Battery technologies are however progressing well and some of these may find homes in EVs manufactured elsewhere. technologies such as Cap-XX’s supercapacitors, Cougar Energy’s and V-Fuel’s vanadium based batteries and ZBB’s and RedFlow Energy’s zinc-bromide batteries are all progressing well. There are also some exciting battery technologies coming out of research institutions such as the CSIRO, although many of these struggle to secure sufficient seed funding.

In summary, the Australian legislative agenda is progressing, although more slowly than many had hoped when the current centre-left government was elected in late 2007. The biggest winner from policy settings to date have been household solar and it seems that wind may well be the big winner over the next few years. Australia is a long way behind on EV developments although its battery technologies have significant potential, if they are able to attract sufficient early stage funding.

Sydney Cleantech Network Event on Thursday 19th November 2009

2009-10-27T19:55:00.002+10:30

You are invited to attend the next Sydney Cleantech Network event on Thursday 19th November 2009,
5:30 until 7:00pm
at the offices of Clayton Utz at
Level 34, No.1 O'Connell Street, Sydney

Including:
- a presentation from a leading cleantech industry participant – details to be advised before the event.
- 2 minute pitches from growth companies looking for investors, partners or just wanting to announce company developments. Please register in advance if you want to pitch.

There is no charge for attendance but bookings are essential. Please RSVP by COB on Tuesday 17 November to scn@auscleantech.com.au

Who should attend?
The cleantech sector comprises industries with both environmental and economic benefits. Sub-sectors include renewable energy (wind, solar, wave, tidal, hydro and geothermal), water, waste and recycling, energy efficiency, green buildings, biomaterials, energy storage and fuel cells, environmental service providers and carbon traders. The Sydney Cleantech Network aims to provide education, forge links and facilitate collaboration between the cleantech sector, the finance industry, academia and government services.

Interested in Pitching?
There will be a limited number companies invited to pitch at each event. If you are interested in pitching, please email pitching@auscleantech.com.au for more information.

Future Events – diary note
- 11 February hosted by Macquarie
- 25 March hosted by New Energy Finance
- May 2010 hosted by the ASX
- July 2010 hosted by Griffith Hack

150 People Attend the Sydney Cleantech Network Launch

2009-10-10T18:13:00.005+10:30

The Sydney Cleantech Network launched with a packed room of 150 people in attendance. The event was hosted by KPMG at their offices on Sussex Street.

The attendees listened to Roger Price from Innovation Capital talk about their investee company Windlab Systems and how it has changed from a technology provider into an international wind farm developer. Importantly Roger also explained how VCs invest in people and businesses and that technology is just an enabling factor.

Five companies then did 'two minute pitches' explaining their products and services and detailing their upcoming funding requirements. The companies were:

- CMA Corporporation - A leading integrated Australian-based recycling group that provides products and services to customers across three continents.

- Acoustica - Commercialising the world’s best "Green" Noise Barrier - Quietwave® Captive Membrane Technology.

- T3Energy - Developer of both a solar space heating and super-insulated building technologies will reduce energy consumption in homes by up to 80% while offering a competitive and compelling alternative to conventional homes.

- Azure Energy - The Azure Energy ALI system produces seven forms of energy from Solar Energy, in all weather conditions

- Universal Power Storage - Universal Power Storage (UPS) has the only invention in the Massive Electrical Storage (MES) space that can potentially deliver the largest scale electrical storage system in the world: rectifying the largest market failure in the electricity market – base load storage.

Most importantly the attendees networked with people from cleantech companies, the finance sector, academia, professional services and the government.

The next event will be hosted by Clayton Utz on 19 November 2009 commencing at 5:30. Attendess must have registered to attend. Future functions will be hosted by Macquarie Bank, New Energy Finance, Griffith Hack and the ASX.

The Sydney Cleantech Network will hold events every couple of months. If you would like to be informed of future events or are interested in pitching please email scn@auscleantech.com.au.

Will Non-energy Cleantech be Left Behind?

2009-09-16T18:12:00.003+09:30

The Renewable Energy Target (RET) legislation has been passed by the Australian legislature but the Carbon Pollution Reduction Scheme (CPRS) was defeated. What impact will this have on the cleantech sector, both in the short and longer terms?
Let’s start with the longer term and consider the prospects for cleantech companies in, say, five years time. This outcome is reliant on the key drivers behind the adoption of cleantech. In my view there are four unique and significant drivers behind the global move towards clean technologies – and only one of those relies on regulatory measures.

Firstly, cleantech solutions are being integrated into many real assets that provide core services, such as power, water, waste and recycling over the long term. This ensures that any over-exuberance in investments, comparable to the IT bubble of the early 2000s, has a lower bound and tangible level.

Secondly, the demand for these core services of energy, water and resources is growing due to both population growth and increasing wealth and its consequent improved standard of living.

Thirdly, as the world continues to use and deplete its natural resources there is increasing pressure on communities to act sustainably. Not only is the demand increasing but the supply of resources is decreasing, so it is essential to use more innovative technology to improve efficiency and reduce waste.

Finally, and certainly not most significantly, there is the recognition of climate change and the consequent regulatory regimes, such as the RET and the CPRS. This is a separate driver from those above and, whilst it will result in additional growth in some cleantech sub-sectors, it does not underpin the cleantech sector as a whole. As a result, the longer term growth of cleantech is assured and will be unstoppable.
So whether the RET and/or the CPRS, and their equivalents in other countries, are passed now, next year or the year after will have little impact on the long term growth of the sector. The long term winners will be those technologies that provide required solutions at the lowest costs. There may be some minor technology variations if the early stage subsidies are not provided, causing some of the individual technologies to fall in the valley of death. In general however, the sectors that could be winners will still be winners and the ‘petty politics’ of 2009 will become a mere detail in a few autobiographies of retiring and elderly ex-ministers.

A valid question is whether this will exhaust the investment appetite for cleantech leaving nothing for all the other sub-sectors. Will sub-sectors such as water, waste, vehicle technologies, energy efficiency and energy storage stagnate whilst their cleantech cousins in clean energy boom?

Will the delay and weakness of what may become the CPRS mean that Australia’s non-energy related clean technologies will remain on the shelf?

Looking back at the fundamental drivers of cleantech, the answer is clearly ‘no’. The other sub-sectors may not accelerate as fast in the short term and maybe the investment returns will not be so strong. However, the demand for increased resource efficiency, reduced waste and improved environmental performance will ensure that technologies across the cleantech spectrum will succeed even in the short term. We may go through a different ‘sliding door’ with respect to the uptake schedule and the exact technology mix and this may have profound impacts on individual companies and investments. From a sector level, however, the industry growth will continue and innovation and adoption will be widespread for all industries.

Cleantech is not reliant on regulatory regimes. Furthermore, for the technologies that improve efficiencies, reduce waste and consequently increase customer profits, investment will always be available.

Politics may influence the short term behaviours, but the long term drivers for cleantech adoption are far bigger than mere national politics.

This is an abridged version of an article that was originally published on Environmental Management News in August 2009. For the full version, please email info@auscleantech.com.au

CleanFutures Secures Grant to Commercialise World Leading Biosensor

2009-09-16T18:04:00.003+09:30

An Adelaide company has secured funding to finalise prototypes and complete testing of a biosensor technology that is set to revolutionise the testing of water, wine and food throughout the world.

CleanFutures AquaSens, based in Adelaide, was formed specifically to develop the AquaSens biosensor. The technology is a rapid, highly sensitive sensor probe for the detection of nitrates and phosphates in water, and sulfites in wine and food products.

The technology was developed by Monash University in Victoria and had started its commercialisation process through a Victorian State Government body, Nanotechnology Victoria. When the funding was wound down for this body earlier this year, two South Australian entrepreneurs set about bringing the technology to Adelaide for further commercial development.

Kristin Alford and John O’Brien saw the global opportunity for the technology, secured the exclusive rights to commercialise it and established CleanFutures to bring to it to market.

Bio Innovation SA recognised this potential and has provided funding through its Business Development Initiative(BDI) grant to allow the final testing to be completed.

“We are delighted to support CleanFutures AquaSens and are excited about the potential their technology has for the water, wine and food industries,” said Mr Neil Finlayson, Bio Innovation SA’s Business Development Director.

The funding will enable CleanFutures AquaSens to design and manufacture industrial prototypes of the biosensor and to then conduct customer trials. One of these trials will be completed with the Australian Water Quality Centre, SA Water’s testing laboratory.

The technology allows for tests to be completed immediately and in the field rather than taking samples for further analysis in a laboratory. Results are within minutes rather than having to wait a week or more. Increased phosphates and nitrate levels are key indicators of the likelihood of blue-green algae forming. The use of this biosensor could provide early warning of problems in water bodies such as the River Murray.

“The BDI grant will enable CleanFutures AquaSens to complete critical milestones essential for progress through commercialisation, including designing and manufacturing an industrial prototype and conducting customer trials.”

“We are excited to be able to further the early commercialisation work conducted by Nanotechnology Victoria and Monash University”, said CleanFutures AquaSens’ CEO, Kristin Alford.

The issue of sulfite in wine is currently a major problem for the industry: as it is hard to detect and it is estimated that 1% of the population are sulfite-sensitive. With South Australia’s position as a leader in wine production, the development of the sulfite biosensor here is a natural fit. CleanFutures has arranged for the technology’s inventor, Professor Sam Adeloju from Monash, to work with both Flinders University and The Australian Wine Research Institute (AWRI) to finalise the required research for the sulfite application of the AquaSens technology.

“Once proven the sulfite biosensor will enable all wineries to test every barrel of wine and make sure that sulfite levels are managed effectively. This will provide clearer consumer information for those that are sensitive to sulfite,” said John O’Brien, CleanFutures AquaSens’ CFO.

“The ability to test both water and wine on the spot will enable water companies and wine makers to be able to manage their products better. We believe that this technology will revolutionise testing the world over and further enhance South Australia’s reputation for clean technologies,” Dr Alford added.

Adelaide Cleantech Network Drinks - Tuesday 6 October 5:30

2009-09-16T18:02:00.002+09:30

You are invited to attend the Adelaide Cleantech Network drinks on Tuesday 6 October 2009 at 5:30 until 7:00pm at the Historian Hotel, 18 Coromandel Place, Adelaide (between Pirie and Grenfell Streets and close to Gawler Place)

To be added to the distribution list for future events please email acn@auscleantech.com.au

The evening is sponsored by ZeroWaste SA and will include:
- a short presentation on a successful commercial sustainability case study funded in part by ZeroWaste SA.
- 2 minute pitches from growth companies looking for investors. This is your chance to tell the Adelaide Cleantech community what you are looking for or what you have achieved.

Details of the pitching companies will be provided here the week before the event.

There is no charge for attendance but bookings are required. Please RSVP by COB on Friday 2 October to rsvp@auscleantech.com.au

Interested in Pitching?
Companies that are investor ready and actively seeking investment are invited to undertake a two minute pitch. Also companies looking to announce progress or updates. The two minutes will be strictly enforced and you will be able to have a single slide on the screen. There will be a limited number companies invited to pitch at each event. If you are interested in pitching at this event or future events, please email pitching@auscleantech.com.au with your single proposed slide for more information.

Launch of the Sydney Cleantech Network

2009-08-29T21:18:00.002+09:30

The Launch of the Sydney Cleantech Network will be held on Tuesday 22 September 2009 from 5:30pm until 7:00pm at the offices of KPMG

at Level 15, 10 Shelley Street, Sydney (entry also via 7 Sussex St)

The evening will include:
- the formal launch and a presentation on the progress of the cleantech sector in NSW by the Hon Carmel Tebbutt, NSW Deputy Premier and Minister for Climate Change and the Environment.
- two minute pitches from companies seeking finance or partners

Further information is available at the Sydney Cleantech Network group on Linked-in at http://www.linkedin.com/groups?gid=1928638&trk=hb_side_g

To be added to the distribution list for future events please email scn@auscleantech.com.au

Adelaide CleanTech Network drinks - Tuesday 4 August 2009

2009-08-24T16:26:00.004+09:30

5:30 until 7:00pm
at the Thomson Playford Cutlers’ offices at
Level 7, 19 Gouger Street, Adelaide

To be added to the distribution list for future events please email acn@auscleantech.com.au

The August 2009 event included:
- a short presentation on the how the Australian Institute of Commercialisation and the Clean Energy Innovation Centre can help South Australian cleantech companies

- 2 minute pitches from four growth companies looking for investors, partners or just wanting to announce company developments. The companies that pitched at this event were:

- WattWatchers - energy and emissions home monitoring system - www.wattwatchers.com.au

- Lumenite - luminscent lighting equipment - www.lwp-lumenite.com

- COPROH - large scale biosequestration and land rehabilitation

- Cogen Microsystems - small scale distributed solar/gas hybrid cogenration systems - www.cogenmicro.com

The following companies have pitched at previous Adelaide Cleantech Network events:

- Flinders University Materials & BioEnergy Group - Nanomaterials for Stormwater harvesting

- CleanFutures - biosensors for Nitrates, Phosphates and Sulfites - www.cleanfutures.com.au

- Acquasol Infrastructure Ltd - large scale solar thermal/gas hybrid power and water generation project - www.acquasol.com.au

- Open Energy - demand management systems - www.openenergy.com.au

- Seadov - second generation wind turbines - www.seadov.com

Green Benefits for all Business

2009-08-03T15:08:00.002+09:30

Many businesses might assume that sustainability, emissions and cleantech are issues for only big corporates and that they do not have time to worry about these ‘nice-to-haves’. Small and Medium Enterprises (SMEs) are usually so focussed on ensuring sales, keeping costs down and chasing cash flows that, regardless of personal persuasions, keeping the company afloat rates a long way above saving the environment.

These views are exasperated by two types of media coverage of climate change: the no-hope horror stories inciting paralysing terror; and the ‘happy ever after thanks to science’ approach offering an effortless solution.

The continual coverage of melting ice sheets, sea level rises, droughts, severe storms and crop failures is essential in providing a context for debate on climate change. However, the tone is often so cataclysmic, so intent on relishing predictions of upcoming disasters, that many people are left with the defeatist attitude ‘We have passed the tipping point rendering all action pointless’.

Stories of wonderful ‘silver bullet’ inventions that will ‘solve’ the climate change problem are equally as damaging. Tales of genetically modified carbon-munching trees, or dumping iron filings into the ocean allow the listeners to relax and dismiss cautionary news. To those accepting such stories, the problem appears insignificant in the face of man’s scientific innovation.

However, if done well, ‘green’ activities can save money and increase sales for all companies. It does not need to be an extra task needing more management time but rather an excuse to review the business plan and position the company ahead of its competitors and ready for future growth.

There are many people offering to do ‘emissions audits’ and to provide carbon offsets, and these have their place. Much greater value can be secured however by a business assessing its strategies before adopting the quick fix (and extra costs) of carbon offsets. There are two key aspects of a business, whether it produces goods or services, that will drive the greatest increase in the bottom line.

Firstly, how can processes be changed to reduce waste and therefore increase efficiency? The waste may be measured in terms of input materials, consumables, utilities (power and water) and even human resources. The solutions might involve installing new equipment, streamlining approvals processes or recycling waste back into the start of the process. For all the inputs and outputs of a business, whatever it may produce, a balance can be drawn up to show what creates value and what creates waste. Waste streams can then either be reduced or beneficially used.

Waste is just a resource to which insufficient imagination has been applied. Once the waste streams are understood then some imagination and innovation can be applied to utilise and create value from some of these resources. These solutions often need external technical and business process advice to overcome the problem of managers ‘not knowing what they don’t know’.

Secondly, business must look outwards to see what changes are occurring to their business environment. Most importantly, an understanding of how its clients’ needs are changing. Large corporates are starting to look at the supply chain emissions of multiple inputs, Governments want to be seen to be procuring sustainably, hotels are assessing the environmental footprint of their menus and householders are increasingly buying ‘green’. If a company does not anticipate these changes, it will lose market share. If it continues to ignore them, it will go broke. By moving early, however, it is possible to gain customers and move ahead of competitors.

Over time, sustainability and climate change will change every aspect of how our communities work. This change presents huge opportunities for those willing to grab them. Opportunities to both improve their internal processes and to anticipate the changing needs of their customers. Those that do not evolve and are focussed only on the problems will find themselves left well behind. Which will you choose to be?

Australian CleanTech works with businesses to help them understand their efficiencies and the changing supply chain environment.

Open Letter to Senator Fielding

2009-08-03T15:07:00.001+09:30

13 July 2009

Dear Senator

As you would know, the news today widely reported that you have been unable to find coherent answers to your reasonable queries on climate change and have raised this issue with your fellow parliamentarians.

I am by no means a climate scientist, but I have heard some reasonably compelling answers to the points that you have raised. In Australia, Professor Barry Brook at the University of Adelaide is able to provide detailed explanations that may help arrest your concerns. I will be seeing Barry tomorrow and will let him know that you may be in contact.

Through contacts in the US and in Europe, I can also connect you with other leading global climate scientists who will be able to provide you with as much detail as you wish to see. There is of course no absolutes, no absolute proof – science as you know is merely a question of fitting the most likely cause with the most obvious consequence. The evidence appears however to be reasonably conclusive on many of the key points.

I would agree with you that science is not perfect. This is continually demonstrated in scientific fields such as medicine, but we continue to take treatments even when the diagnosis is not perfect. Like the human body, there is undoubtedly far more to learn and far greater understanding of our climate to be gained.

Some might consider the fact that the vast majority of global climate scientists agree in overview (if not in detail) to be merely a conspiracy of self-reinforcement amongst all those ‘white coats’. Others might consider that in fact the weight of probability appears to be strongly in favour of anthropogenic climate change caused by emissions of carbon dioxide and other greenhouse gases.

In the unlikely event that all the leading scientists have got it wrong, there is an interesting consideration that I first heard raised by Professor Stephen Schneider of Stanford University. He asked a public meeting in Adelaide Town Hall how many in the audience had house insurance, to which many hands were raised. He then asked how many people have had their house burn down, to which one poor chap at the back raised his hand. To many who have thought seriously about the issue, the insurance of reducing carbon emissions appears to be a sensible precaution just in case the world’s climate scientists happen to be correct.

If you are right, then I will happily applaud you once the scientists are standing with you. That you may be wrong and, through your actions, may even manage to turn global opinion against the climate science community, worries me immensely. I wish to invest in climate insurance for my family.

If there is a hint of uncertainty, then taking the safe route through backing the majority of climate scientists appears to be the only rationale course of action.

Please let me know if you would like to be introduced to any particular climate scientists – I would be more than happy to facilitate this through my contacts.

I apologise for making this an open letter with the media, but it is an issue that is too important to remain in private.

Best regards
John

BOOK LAUNCH SEMINARS

2009-06-24T11:55:00.005+09:30

Opportunities Beyond Carbon: Looking Forward to a Sustainable World

The book Opportunities Beyond Carbon: Looking Forward to a Sustainable World was launched in June at the Adelaide ‘Economy of the Future’ seminar. The book is published by Melbourne University Press.

The Sydney book launch seminar was held on Friday 10 July at the EBA's offices in Pott's Point. The Melbourne book launch seminar was held on Friday 17 July at Investec's offices on Collins Street.

‘Verily I say unto you: this is a new New Testament, containing hope of a planetary resurrection ... Read this book. Immediately. This book should be set to music and sung aloud by all policy makers.’
Phillip Adams, broadcaster, columnist.

The book aims to recast the debate on climate change from one of fear and problems to one of hope and opportunity. It contains a collection of essays from key politicians, investors, business people, activists and academics on how to make the most of the current predicament. The authors include the Hon Greg Hunt MP, the environment spokesperson for the Federal Opposition, Professor Sir David King of the University of Oxford, Bill Mckibben, the renowned American author, and Tenke Zoltani who works with Lord Nicholas Stern in London.

This fresh, lucid and practical optimism for the future offers a foundation for an entirely new and proactive attitude to climate change.

Opportunities Beyond Carbon presents climate change as potentially the ‘best crisis we ever had’. It maps the many opportunities for communities large and small, local and international, making the transition to a low carbon economy.

At the Adelaide launch, the book’s editor, John O’Brien said that ‘Media stories on climate change either focus on the dire consequences or on the ‘silver bullet’ scientific solutions. The community views the first as a reason not to get involved as the problem is too big and too remote in time and place. The second type of story also provides a reason not to get involved by telling themselves that “those clever scientist will sort it out for us!”'

‘By telling positive stories about beneficial changes made because of climate change, it will be possible to engage all levels of community and change the focus from one of fear to one of opportunity.’

‘The future visions provided in this book give cause for hope, optimism and celebration.’

The seminars feature some of the authors and provide insights into the science and regulatory status, the opportunities and solutions and how to secure the finance needed to pay for the transition.

Endorsements for the book include the following:

Ever since a former Astronomer Royal announced that “space travel is impossible” we have found ways to postpone the future. But there are much better things to do with carbon than setting it alight. This terrific book explores some of the most exciting alternatives—for a future replete with energy, sustainability and choice. Never before have the real possibilities been so interesting.
Robyn Williams, host of The Science Show, ABC Radio

By focussing on the opportunities rather than the challenges of climate change, this book provides an excellent platform to drive changes with tangible benefits for all. The breadth of opportunities covered gives hope that this will indeed be the ‘best crisis we ever had’.
Mark Lynas, author of Six Degrees: Our Future on a Hotter Planet.

The book can be purchased online from Melbourne University Press at www.mup.com.au/page/118

Can Australasia lead the Cleantech world?

2009-05-13T16:47:00.008+09:30

Australia and New Zealand have the opportunity to
leverage our technology innovation and green image to become global Cleantech leaders, driving a new wave of investment and green collar jobs.

The Adelaide Cleantech Network ran a seminar in early April that brought together some of Australasia’s leading Cleantech proponents. This practical discussion was designed to stimulate the relationships and business linkages that drive innovation, connecting attendees with potential clients, technology leaders, investors, researchers and policy leaders.

The event was run in collaboration with the Australia New Zealand Business Council and the Water Industry Alliance.

Speakers at the event included:
- His Excellency John Larkindale, New Zealand High Commissioner
- David Klingberg, Chairman of the Premier's Climate Change Council
- Andrew Dickson, Wind Prospects, on ‘The Growth of the Australasian Wind Industry to 2020’
- Professor Gus Nathan, University of Adelaide on ‘Sustainable utilisation of energy’
- Sean Ebert, Worley Parsons on ‘Australia’s solar thermal potential’
- Helga Brigden, Mercer Investment Consulting on ‘Harnessing superannuation money for cleantech initiatives’
- Kerry Rooney, Austrade on ‘International initiatives to sell Australasian cleantech’
- Vaughan Levitske , ZeroWaste on waste and recycling initiatives

It is hoped to stage this as an annual Australian New Zealand initiative.

The Beauty of Pessimism

2009-05-13T16:35:00.002+09:30

I am jealous of pessimists. Life must be so easy when all you can only ever see is the downsides and the reasons why things should not be changed.

I am even more jealous of pessimists who have access to expensive PR firms and lobbyists, who can make sure that a whole country is influenced by their psyche. This week has provided some fine demonstrations of pessimism at work. The federal Government backed down on its proposed CPRS plan under pressure from all sides to help shore up its poll ratings in order not to be remembered as a ‘oncer’ government (one that only lasted a single term). The Government viewed the option of being bold and courageous with pessimism, as it considered whether the voters would come with it. Sadly, it felt like it had more to do with getting ‘one over on Malcolm’ rather than serious policy formulation.

The industry commentators on these changes provided further examples: Mitch Hooke from the Minerals Council of Australia claimed the scheme’s delay ‘amounts to little more than a temporary stay of execution for thousands of mining jobs…’; Charles Burke from the National Farmers’ Federation explained how beef farmers would go broke; and the coal industry are still furious that they only get $750m.

Pessimism works well in driving two outcomes. Firstly it is great for increasing the fear of change – if you only see the negatives then why risk moving forward. Secondly, it encourages incrementalism – like walking down a rocky path on a moonless night, it is OK to shuffle forward slowly but far too risky to take a big step or maybe even a leap. So people continue to see the world through the same lens and just tinker at the margins.

The pessimists are right in that pricing carbon will cause jobs losses in emissions intensive industries. Given the whole point is to reduce consumption of emissions intensive products, job losses will demonstrate the scheme’s success. Viewed in isolation, this is a terrible outcome. Pessimists are good at looking at things in silos. Looking back over the last 30 years, Australia has lost and exported almost all of its jobs as manufacturing shut down and globalisation took hold. Many have deplored this loss.

Pessimists are also right in that some emissions intensive investment may, in the short term, go to countries less advanced on carbon pricing. This ‘carbon leakage’ will not result in increased emissions, as all new plants will be built with an eye on future global carbon schemes, but it may result in job losses here and gains elsewhere.

Sadly I am not a pessimist. I see that the export of Australian manufacturing jobs has helped the Australian workforce increase its skills and increase the country’s financial wealth. I see emissions intensive industries moving offshore as an opportunity for Australia to start focussing on the industries of the future – the cleantech industries – and thereby loosening the shackles to those industries that will inevitably go into decline as carbon is further restricted. I see an opportunity for unions to strongly advocate for the development of the new industries and their associated cleantech skills to secure future employment for their members, rather than seeking to protect jobs in twentieth century industries.

There are, of course, serious transition issues in all of this and there will be difficulties on a local level. Stewart Taggart of Desertec-Australia comments on this transition by stating that as long as governments focus on looking after workers rather than the shareholders, this will be manageable.

Dr Sam Wells from the University of Adelaide speaks brilliantly of how paradigm changes only occur when the change is driven by the attraction to something better rather than moving away from something bad. Through cleantech, Australia will create green jobs, will create more connected communities and in the process increase both wealth and even the happiness of its people. The paradigm shift requires a change of perspective to the positives of a cleantech future rather than all the negatives of the changes to existing industries.

Luckily, the growth of cleantech is not reliant on there being a strong carbon price. Renewable energies will be driven the Renewable Energy Target and other cleantech sub-sectors will be driven by resource depletion, population growth and increasing wealth and life quality expectations. That the CPRS will be weak is irrelevant to cleantech as it will grow and prosper regardless.

Optimists can see a brighter future, but then have the significant challenges of convincing the wider community that the short term pain is worthwhile and then delivering on the vision.

Life would be easy as a pessimist!

This article was originally published in Environment Management News

Securing Cleantech Benefits for Australia

2009-03-21T11:00:00.003+10:30

Australia has the chance to secure its long term economic security from taking a leading role in cleantech. What’s more the current financial downturn presents the perfect opportunity to make a step change to sustainable industries, replacing those emissions-intensive industries that will inevitably decline, and underwriting Australia’s GDP growth for decades. It will however take some bold and confident steps to be taken by Government and companies to fully secure these benefits.

Australia has a choice on whether it wishes to be a future technology taker or to become a global leader in clean technologies. There are many jurisdictions around the world that are seeking to establish themselves as centres of excellence for cleantech. In North America, regions such as Ontario, the North–Western States and Los Angeles have all been pushing hard to create industries of the future. In our region, the Singaporean Government have placed cleantech high on its priority list of industries for which it wants to become the ‘gateway to Asia’. Only this week, the Florida State Government issued a document titled Florida: Building a Foundation for Excellence in Clean Energy in which it considered the State’s strengths in solar, biomass, fuel cells and ocean currents and its strategy to become a global leader in each.

Australia clearly has world class natural resources in solar, wind, wave and geothermal energy. Through its lack of water, it has also been forced to innovate with some clever water management and efficiency technologies. So the question is then how does the country secure the greatest benefits from these natural advantages.
Government’s clearly have a part to play in this through targeted grants and other measures such as renewable energy targets (RET). In Australia, the RET will underwrite the roll out of mature wind technologies developed elsewhere, the Clean Energy Program (CEP) will hopefully drive some Australian innovation in solar and wave technologies and the Geothermal Drilling Program may further Australia’s leading position there. Despite protestations to the contrary, Governments alone will not do enough to guarantee success in any of these fields regardless of the quantum of grant money.

To create the best chance of success requires entrepreneurs and technology developers to collaborate and build companies and solutions that are ready to be sold to the world.

One technique that is being undertaken by a number of companies is to consolidate technology offerings. By pooling a number of similar development technologies, the chances of success for all involved are greatly improved. As part of a consortium, the individual technology developers can leverage off the greater scale to market their technology globally; investors have the opportunity to invest in a diverse portfolio of technologies rather than just backing a single product; and Australia benefits by seeing more of its technology commercialised at home and thereby builds a sustainable future for its communities.

Governments at all levels can assist in this process by providing hubs for this collaboration to occur as well as grants to help things progress, but it is those with the technologies that have the greatest influence on the success of this strategy. By choosing to become part of a group rather than being a stand-alone company changes the route to international commercialisation. Technologies are no longer the ‘babies’ of their inventors but rather become part of wider offering. Inventors must give up the need for total control and become part of a team – a team that has a greatly increased chance of success.

Two companies that I am involved with that are pursuing this strategy are GPAus and CleanFutures. GPAus is building a suite of emerging wind technologies that it can then take to global wind turbine manufacturers to enable them to accelerate their progression towards Gen-2 wind turbines. CleanFutures is assembling diverse nanotechnology-enabled environmental solutions that can be backed and commercialised as a portfolio.

Australia can be a technology exporter of future high value products that will create an advanced and sustainable manufacturing base for the country. This will occur if Governments provide the right environment and technology developers choose to work as a team to the benefit of all. It is the cleantech providers that join forces who will have the greatest chance of succeeding on a global scale and if they succeed then Australia will be the greatest beneficiary.

Companies interested in discussing participation with GPAus or CleanFutures should contact the author on john.obrien@auscleantech.com.au.

A Bio-Cleantech Future

2009-03-12T14:03:00.003+10:30

In a recent presentation to the SA BioAngels, John O'Brien explained the cross-over points between cleantech and biotech. This included a description of which if the cleantech sub-sectors can be calssed as 'bio-cleantech' and therefore have application potential for biotech companies and techniques.

Examples of both companies and investors that have successfully combined cleantech and biotech were also presented along with thoughts on how greater future benefits can be secured.

For a copy of the slides from this presentation, please email your request to info@auscleantech.com.au

Launch of CleanFutures

2009-02-18T15:09:00.004+10:30

South Australia continues to be a focal point for expertise in clean and sustainable technologies with the launch of new venture CleanFutures.

CleanFutures is a joint venture of NanoVentures Australia, Australian CleanTech and Bridge8 with the goal of successfully commercialising nanotechnologies that enable clean futures.

Our combination of capabilities and connections means we are able to successfully fund and commercialise technologies that enable clean futures.

By combining the IP, technology transfer and commercialisation project management skills of NanoVentures Australia (NVA), with the clean technology and investment market knowledge of Australian CleanTech and the futures work, government networks and marketing capability of Bridge8, CleanFutures plans to establish the template for the commercialisation of enabling technologies.

Dr Kristin Alford, Managing Director of foresight and science communications firm Bridge8 Pty Ltd, said “Technologies that succeed in the future will be ones that serve the community in a sustainable way. These emerging technologies will developed by combining many disciplines. Our combination of skills means we can take an innovative and integrated approach to commercialisation and makes this joint venture an attractive proposition for South Australia.”

Commenting on the launch of CleanFutures, Barry Brook, the Sir Hubert Wilkins Chair of Climate Change at the University of Adelaide, said, “There is an urgent need for innovative solutions and new technologies to address the ever more present problem of climate change. The opportunities for those that provide these solutions are huge.”

CleanFutures has commenced planning for its first three technologies:
• Carbon nanotube composites for wind turbine blades;
• Aquasens, a rapid, highly sensitive sensor probe for the detection of nitrates and phosphates in water, and sulphites in wine and food products; and
• Oxipure, a patented technology for the effective removal of contaminants including arsenic, phosphates and silicates from environmental waters.

It is believed that there are many future applications that will be brought to market through the integrated approach of nanotechnology and cleantech: an approach that appears to be a world first.

John O’Brien, Managing Director of Australian CleanTech, said “Nanotechnology provides many of the enabling mechanisms that allow cleantech companies to deliver both environmental benefits and investment returns. I am very excited about the launch of CleanFutures, as I believe it has the potential to deliver many game changing technologies with benefits for the community, the environment and the economy. These technologies will enable the future to be clean.”

Dr Peter Binks, CEO of NanoVentures Australia, said “NanoVentures Australia has a portfolio of cleantech technologies ready for market. We see great opportunities in South Australia, with its outstanding research base and strong manufacturing industry”.

CleanFutures was initiated through discussions between the partners at two recently launched industry networks: the Adelaide Cleantech Network (led by Australian CleanTech) and the Australian Nano Business Forum.

“The launch of CleanFutures is a tangible outcome of industry networking and demonstrates the benefits of meeting new colleagues and sharing interests”, said Dr Kristin Alford.

Further information about us, our technologies and our capabilities is available at http://www.cleanfutures.com.au or by emailing cleanfutures@auscleantech.com.au.

European Investors Looking for Australian Clean Technologies

2009-02-18T15:05:00.003+10:30

Europe is a strange place at the moment. Having managed to escape the heaviest snow London has experienced for many years and come back to another Australian heatwave, and despite the extreme pessimism in the City, I am enthusiastic about the potential for securing European money to invest in Australian cleantech companies.

Whilst I was there, the front page of The Times of London showed a big picture of the Blitz with a headline saying that the economy has not been this bad since then. There are daily and significant job losses being announced, wild cat strikes over the use of Italian and Portuguese construction workers ‘taking British workers jobs’ and many in the finance community both without a job and facing significant community backlash. It makes the Australian version of the financial crisis seem mild.

The investors I met were all focussed on cleantech and were all remarkably positive and looking forward to a year of growth in 2009. Many were increasing staff levels and confident that they would be able to raise new funds during the year. It was a wonderful contrast to the feeling held by the rest of the country. There was a view that the rest of the UK may be a ‘basket case’ but that cleantech was the one area that is set to thrive.

One consequence of the financial crisis is slight change to the investment mandates. There appears to be an increased emphasis on late stage pre-IPO type capital, as opposed to seed investments, and also on sectors less dependent on carbon pricing such as waste, recycling, building materials and energy efficiency. It was felt that the volatile conditions would lead to unpredictability in carbon pricing that may lead to short term revenue issues. There is also a greater desire to see definitive sales strategies in place and to gain an understanding of exactly how and when revenues will be generated.

These investment groups have either previously raised funds that they are looking to invest or have institutional investors ready to provide further capital as required. The one common problem they seemed to face was enough high quality investment targets in which to invest these funds.

There was also a common view that Australia is an excellent source of technology research and development and that there may be many potential products and companies that would be suitable for investment. The bonus with this arrangement would be that through securing a European investment, companies may then be able to more easily access the larger European markets and thereby increase the value of the company and returns to its investors.

Some of the funds seemed keen to co-invest with local investment partners. This also provides the opportunity for Australian based investment funds to mitigate their investment risks and establish ties with European partners.

It seems as though many in Australia have been looking to the big venture capital funds from Silicon Valley to secure international investment and that there have been limited ties to date with European investors. This feels like a big opportunity that we have been ignoring. A number of the European funds are currently actively looking for Australian investments and are keen to hear of any suitable opportunities.

The investment opportunities for Australian cleantech companies have been clear for some time. My recent trip to Europe has not only reinforced this opinion in a global context but also highlighted the potential to secure additional sources of investment and access to new markets. The future for Australian clean technologies seems even brighter than before.

This article was originally published in Environment Management News

Three Shades of Green

2009-01-04T15:31:00.002+10:30

In a recent interview, the Chief Scientist of Great Britain, John Beddington, stated that the biggest obstacle to moving towards a sustainable future was the actions of committed environmentalists. As a committed advocate to creating solutions to climate change, this seems like an interesting position. However, his vision of future driven by technological adaption, by cleantech, stands in contrast to the anti-consumption rhetoric of traditional environmentalists. It also stands against the incremental greening of many large industrial companies who provide token support for environmental issues whilst still operating unsustainable businesses. Cleantech provides a shade of green that is both sustainable and attractive.

In late October, the Queensland Government held its Sustainability Awards on the Gold Coast. That the dinner was held in one of the least sustainable developments in the country was not lost on many of the attendees. There were many awards for good work being undertaken by companies in varied industries. Improved agricultural practices, smart battery technology and the climate change campaign by the Courier Mail were all feted. There were however many examples of heavy industrial companies merely greening around the edges. The evening started with an acknowledgement of Xtrata’s $3m support for hairy nose wombats. In a wonderful display of cognitive dissonance, the company movie showed rescued wombats without any acknowledgement of the damage the company’s coal mining does to the natural environment. One guest commented that it was like celebrating a tobacco company’s donation to lung cancer research!

Following this dinner, I was lucky enough to spend a few days in Byron Bay. On the local radio and in the local rag, we were encouraged to embrace the ‘counter-culture’ of the region and save the world by reducing consumption, eschewing technology and going back to basics. In the profit centre of Byron this felt as much of an oxymoron as sustainability on the Gold Coast. John Beddington would not have felt comfortable sipping his latte on Jonson Street.

Cleantech offers so much more: far more than greening around the edges and so much more attractive than heading into the mountains in rags. Cleantech provides technologies that enable ongoing development in a way that improves the planet’s ecosystems – it does not require sacrifice and it is more forward looking than mere ‘end of the pipe’ or incremental solutions. It does, however, require new ways of thinking, an ability and willingness to view the world through a different lens and a commitment to the making of lateral connections that have not been made before.

An article in the Time magazine of October 2008, Michael Grunwald profiled Arnold Schwartzenegger as one of the world’s Heroes of the Environment. Arnie has been a driving force behind cleantech development adopting the ethos that ‘you don’t have to be a girly-man to help save the planet’. The article tells us that ‘[he] ridicules traditional environmentalists as prohibitionists scolds who want us to drive wimpy cars and live like monks; he’s selling a future of a clean environment and a booming green-tech economy with all the gizmos that anyone could want.’

Incumbent emissions intensive companies, who fear that change and technological innovation will lead to a decrease in profits, are the obvious opponents of cleantech. What many in the cleantech world may not yet have realised is the danger posed by the self proclaimed ‘pure’ greenies of Byron Bay and elsewhere.

In a three way fight for the ascendancy between greening, greenies and cleantech, the smart money can only be on cleantech. In the end, ‘greenwash’ will always be seen as the superficial marketing exercise it truly is. The attraction towards a positive message will always be stronger than negative messages that prohibit what is harmful. To quote Arnie in his drive to cement California as a global cleantech leader ‘guilt doesn’t work’. To develop sustainability does not require counter-cultures or clever marketing: rather than rebelling, we can enable a great future through adopting cleantech solutions.

This article was originally published in Environmental Management News in December 2008

How Nanotech is Driving Cleantech Growth

2009-01-04T15:11:00.007+10:30

South Australia Cements Leadership Position in both Cleantech and Nanotechnology

An Adelaide seminar on 8 December heard how nanotechnologies are being harnessed to deliver clean technology solutions for Australia and the world.

The high level seminar, titled ‘How Nanotechnology is Driving CleanTech Growth’ was organised by the Adelaide Cleantech Network, the only organisation of its kind in Australia. The conference brought together 80 representatives of business, finance, government and academia to promote collaboration across these groups and stimulate the growth of cleantech companies.

The Adelaide Cleantech Network is the initiative of Australian CleanTech which provides research services and investment analysis of the cleantech sector.

Commenting on the event, John O’Brien, Managing Director of Australian CleanTech said that Australia will adapt quickly to a future of low emissions by providing an environment for new companies and technologies to flourish. “Maintaining and protecting existing industries is important in the short term, but it does not result in a leadership position in the long run,” he said.

“Adelaide is leading the way in demonstrating how the collaboration between business, finance, government and academia can produce sustainable companies providing investment returns and economic development.”

The seminar was held in conjunction with the Australian Nano Business Forum. The Australian Nano Business Forum is the peak national body representing and promoting Australian industries and companies involved in nanotechnology. The ANBF provides a collective voice for member organisations engaged in this emerging technology, as well as facilitating links between other key stakeholders.

The seminar examined the bridge between nanotechnologies and clean technologies through both overview presentations and specific case studies. The panellists explained the potential that nanotechnology has to deliver environmentally friendly development in many varied ways.

The case studies come from Australian organisations that are leading the world:
• Dyesol Ltd is commercializing thin film solar photovoltaic materials that can be integrated into roof or window materials;
• Flinders University is undertaking ground breaking research into biofuels; and
• NanoVic is developing wind turbine blades from carbon nanotubes.

Professor Tanya Monro from the University of Adelaide started the afternoon with an overview of the potential for nanotechnology to drive cleantech growth.

The growth of nanotechnologies and clean technologies is being driven by much more than just climate change and government emissions trading. “Increasing wealth, increasing populations and decreasing natural resources require the world to adapt to cleaner technologies”, Mr O’Brien said

Australian CleanTech has estimated that, if the Australian growth matches the global forecasts, annual revenue for the Australian cleantech sector could exceed $40Bn within the next 10 years.

This seminar is a first for Australia and cements South Australia’s position as a leader in both cleantech and nanotechnology.

For information on future Adelaide Cleantech Network events please email acn@auscleantech.com.au

Environmental Entrepreneurs: the Missing Link on the Road to a Carbon Constrained World

2008-11-29T18:47:00.001+10:30

Engineers are at the forefront of the transition to a carbon constrained world. New technologies are needed that will allow the world to adapt whilst ensuring a good quality of life for all its inhabitants. Only through the innovation and entrepreneurship that engineers can provide will these technologies be conceived and delivered.

However it must be recognised that a vital link is required to facilitate the work of engineers. Connections between the technical and financial communities are essential to achieve desired outcomes. Through an understanding of both new sustainable technologies and the world of finance, the ‘environmental entrepreneur’ can make connections and innovations in how technologies are financed and adopted by the community. The paper considers the theory of innovation cultures and how this can be applied to assist the transition to a carbon constrained world.

The full paper for this abstract was publsihed in the Australian Journal of Civil Engineering, Vol. 5 No.1- Special Issue on Leadership, Business and Management, Engineers Australia.

Please contact info@auscleantech.com.au for a full version of the article.

Cleantech: Investing in the future

2008-11-29T18:41:00.002+10:30

Cleantech: it’s one of those words that once you see it for the first time, it seems to turn up in every newspaper. Although a reasonably common term in US venture capital circles for several years, ‘cleantech’ has until recently been relatively unheard of in Australia.

But what exactly is ‘cleantech’ and why does the definition seem to change depending on where you look?

An example of the guiding principles behind cleantech is provided by the US firm Clean Edge:

A diverse range of products, services and processes that harness renewable materials and energy sources, dramatically reduce the use of natural resources and cut or eliminate emissions and wastes.

Broadly, the term seems to encompass companies that have both environmental and economic benefits.
Cleantech however tends to be a more amorphous industry group than, say, environmental services, and a less rigid investment asset class than, say, financial services.

Sectors that appear to fit into the definition of cleantech without dispute include:

Renewable energy – wind, solar thermal and photovoltaics, wave, tidal, hydro, geothermal, biomass and biogas;
Water technologies that increase efficiency;
Energy efficiency, green buildings and biomaterials;
Waste management and recycling;
Energy storage and fuel cell technologies;
Low emission vehicle technologies; and
Environmental Services

Other sectors are controversial with some including them within cleantech by reason of their environmental benefits whilst others reject them because of insufficient positive environmental benefits or too many perceived negative impacts. Examples include:

Biofuels are seen by some as the saviour to high oil prices and energy security issues but by others as the cause of rising food prices, food riots and increasing monoculture.
Carbon Trading is clearly driving much of the investment behaviour in cleantech, but it is questionable whether the act of trading has any direct environmental benefits.
‘Clean’ fossil fuels, including natural gas, coal seam methane, underground coal gasification, gas to liquids, carbon capture and storage and clean coal technologies, have reduced emissions profiles but, as fossil fuels are, at best, only transition resources.
Nuclear power, along with its associated uranium production and treatment, clearly has a lower emissions profile than the fossil fuel equivalent but deep concerns remain over the environmental and social impacts of uranium transport, usage and waste storage.
Agri-Businesses are often included in many measures of environmental performance due to their clear interaction with the environment, even though this interaction is not always a positive one for the environment and the communities involved.

It is clear that decisions on what is included as being part of cleantech depends on the viewpoint and vested interest held. Lobby groups, investment fund managers and participating companies all have desired outcomes that help shape their arguments on the definition.

Despite this, cleantech is not is just another term for Socially Responsible Investments (SRI) or Environmental, Social and Governance (ESG) performance. Cleantech is a term which embraces organisations whose essence, whose raison d’être, is to provide environmental benefits. SRI and ESG look at incremental improvements in company performance and can be seen as ‘operational hygiene’ measures that find the best in class. Cleantech is about doing ‘more good’ rather than ‘less bad’.

Regardless of the definition and of any environmental benefits that may ensue, the question remains as to whether the sector is one that should be of interest to investors.

Some commentators have dismissed the cleantech phenomenon as being a mere ‘green bubble’, similar to the IT bubble or the current leveraged debt bubble that is currently exploding. However the drivers behind cleantech’s growth are significantly different. Firstly, there are many real assets being constructed to provide core services such as power, water, waste and recycling. Secondly, the demand for these core services is growing due to population growth and increasing wealth. Thirdly, as the world continues to use and deplete its natural resources there is increasing pressure on communities to act sustainably. Finally there is the recognition of climate change and consequent regulatory regimes. This is a separate driver from those above and, whilst it will result in additional growth in some cleantech sub-sectors, it does not underpin the cleantech sector as a whole. As a result, the growth of cleantech as a whole appears to be unstoppable.

The question then is which technologies and which stocks are likely to outperform the cleantech sector benchmarks. Many cleantech companies are early stage and therefore have high levels of risk. Some of these risky companies have the potential to be world leaders and this may be of interest for the speculative investor. Some of the sub-sectors, however, such as water and waste, are more mature and have companies with steady and growing revenues which will be of interest to conservative investors.

Despite the lack of clarity on the definition of cleantech, it therefore seems to offer a range of investment options with the common thread that the investee companies are all working towards environmentally positive outcomes. Given the strength of the drivers behind the cleantech sector, it is an opportunity to invest in the future.

This article was originally published in the ASX monthly newsletter.

Cleantech Leadership Threatened by Ignorance

2008-11-16T10:18:00.001+10:30

Australia has the opportunity to be a global leader in cleantech. A strong and robust Carbon Pollution Reduction Scheme (CPRS) will facilitate the investment and innovation required to enable many companies to commercialise their clean technologies. However, the Federal Government appears to be heading towards a decision to appease the emissions intensive industries, a disastrous short term approach that would sabotage this leadership opportunity. It is essential that all those who want to see Australia build a long term future understand this issue and make their feelings known.

Every indication from the Government is that it will honour its election commitment to introduce the CPRS in 2010. However, as the potential impacts of the scheme become more fully understood, pressure has been building to ensure a soft start. This softness might be obtained by the setting of very modest targets and the provision of many free permits. An alternative approach would be to fix or cap the price of permits in the market for a number of years to remove volatility. Fixed price permits would merely act as a tax. Emissions would not be seen as carrying any intrinsic value and few tradeable assets could be created by those reducing emissions. Thus the introduction of fixed priced permits or capped prices is a particularly obnoxious and dangerous threat to Australia’s aim to be a leader in the carbon constrained world ahead.

At last month’s Carbon Market Expo, held on the Gold Coast, speaker after speaker implored the Federal Government not to adopt a fixed price or capped permit scheme even if it is pressured into the adoption of a soft start approach. The reasoning behind these arguments put forward by Australian and international investors, traders, cleantech companies and environmental NGOs was that a fixed price would stifle investment. Without investment technologies will not be commercialised and Australia will languish as the rest of the world invents and profits from the technologies of the future. It is true that this may provide a benefit to some of the old emissions intensive industries, but it is no way to build strong foundations for Australia’s future.

Much of the danger lies in the understanding, or lack thereof, by the general public. Lobbying and community engagement by the emissions intensive industries has been well funded and effective. Stories of the future benefits that would be betrayed by a soft policy decision have not gained wide coverage. It appears that the public has been persuaded that a fixed price is the low risk option. What has not been communicated is that a decision to adopt a fixed or capped price is a decision to be a follower rather than a leader in global carbon markets. It is a decision not to build the foundations of a smart country.

I am reminded of two widely discussed public issues, the outcomes of which would no doubt have been different if the issues had been subject to informed and rational debate. The national referendum on whether Australia should become a republic was cleverly manipulated to achieve the outcome desired by the then Prime Minister. Tactics of fear and confusion were used to great effect, together with an emphasis on divisions between republicans. Voters were denied the opportunity simply to say ‘yes’ or ‘no’ to the concept of a republic. If such a straight forward question had been posed, most commentators seem convinced that a ‘yes’ vote would have resulted.

The defeated town referendum on the indirect potable recycled water scheme in Toowoomba again shows how the introduction of fear and confusion into a debate can work extremely well for those opposing change.
In both of these, the outcome was not what the voters would have chosen if they had been fully informed and not been led to fear change. The old adage of ‘better the devil you know’ is often applied without reason. Common sense too often faces defeat by the ignorance engendered by a poorly communicated debate.

Australians now stand at a turning point. We can choose to fear change and let the Government be persuaded to make Australia a technology taker by adopting fixed or capped carbon price. Alternatively, we could choose to build the foundations of cleantech leadership through investment and innovation.

The absence of an official referendum should not cloud the great power of the community, of the readers of this column. The Australian Federal Government is influenced by community opinion. It is incumbent on all of us to explain our position clearly and loudly.

This article was originally published in Environmental Management News on 6 November 2008.

'Bailing out' the Environment

2008-10-05T22:37:00.002+10:30

The last couple of weeks have made history in the management of global financial markets. The threat of a looming global financial crisis has led to the swift implementation of brave ideas by governments and regulators. The response may reveal how the world could avert the looming crises of climate change and resource depletion by backing the clean technology (‘cleantech’) sector.

The United States Federal Government rushed through emergency legislation that will inject up to US$700 billion into the banking system to remove the problem of ‘toxic debt’ from the US financial markets. This debt will apparently include sub-prime mortgages, credit card and other debts that could cause large financial institutions to come under increasing pressure. The financial crisis has already led to the nationalisation of three of the larger US financial institutions and the Government’s response is an attempt to stabilise other companies before they too need to be nationalised. In addition to this ‘bail out’, regulations have been implemented to restrict short selling practices, preventing hedge funds profiteering from, and thereby driving, the collapse of companies. Several markets around the world have emulated this response in varying degrees, with Australia taking the most extreme position.

AT the same time Gordon Brown, the UK Prime Minister, has been calling for an international system of regulation to oversee the global financial system, admitting that it is impossible to effectively regulate the world’s markets on a national basis alone.

Commentary, other than from hedge funds, appears to be generally supportive of the initiatives taken in the US and elsewhere. They are commended as being necessary and courageous moves to shore up the global economy and to reduce the risk of the world descending into financial depression. Confidence in the decisions made has stemmed from deep knowledge of causal factors in economics and the likely responses.

The world of course faces another potential catastrophe that could have an impact far worse than a financial meltdown: continuing global climate change and resource depletion.

Of course, the precise consequences of both financial depression and climate change are uncertain, but the risk of catastrophic outcomes of both is very real. Indeed, the issues involved in both problems are in many ways similar. There are companies that will fail due to pursuing toxic, legacy activities beyond the bounds of a sustainable system; there are groups profiteering from activities detrimental to the health of the overall system; there is a need for government investment combined with regulation; there is a drive towards global regulation; and, if done well, there are immense opportunities to increase both global wealth and well being.

Imagine what would be achieved by a response to the global ecological environment on a par with what we’ve seen for the financial environment. Consider a Bernanke/Paulson type team, with knowledge and confidence in the economic and environmental consequences of their recommendations, persuading a President in one of the richest countries of the world that there is a looming global crisis and that, as one of the worst offenders, there is a responsibility to secure the global system through an investment of several hundreds of billions of dollars.

Not only would such an approach ‘bail out’ the world from a possible catastrophe, but it would also drive a new global industry with the potential to improve the quality of life for all the world’s inhabitants: not merely through increasing wealth, although that is an important aspect, but also by changing the way wealth is created by breaking the ties with emissions and resource depletion.

The adoption of cleantech will happen regardless of such an intervention, but it will be a far less painful experience if the courage and belief demonstrated by recent actions in Washington were to be replicated in the response to global climate change.

This article was originally published in Environmental Management News and on ABC Online. To read the bizarre collection of comments on the latter site follow the link - http://www.abc.net.au/news/stories/2008/10/03/2381148.htm

CPRS Green Paper Submission

2008-09-26T12:48:00.002+09:30

Plan to Build Australia as a Centre of Excellence for Clean Technology

Australian CleanTech made a submission to the Department of Climate Change on the Carbon Pollution Reduction Scheme Green Paper. The submission focussed on how to best secure the long term opportunities that are being presented by the transition to a low carbon economy rather than focussing on short term gains or losses by industry participants. A seven point plan is presented in this submission with an overview presented below.

For a full copy of the submission see http://www.climatechange.gov.au/greenpaper/consultation/submissions.html or request a copy at info@auscleantech.com.au

Stage 1 - Carbon Risk: Don’t back long term losers
Understand the carbon risk of current Australian industries and make sure that, other than transitional measures, we do not back those industries that will inevitably decline as carbon pricing increases. Australia will not deliver a prosperous future by being the last to be supporting legacy industries.

Stage 2 - Facilitate Easy Wins: Back Energy Efficiency Service Providers
Back the suppliers and service providers of the ‘easy wins’ for emissions reduction through matched expansion funding. Energy efficiency products and services will provide the quickest return on investment. By investing in the service providers rather than grants to emitters there will be greater and longer term economic development from generating expertise and commercial knowledge, rather than simply providing greater longevity for single companies.

Stage 3 – Build Supply Side Capability: Cleantech Parks – Promote and support the development of sustainable manufacturing and innovation hubs. Examples of State based initiatives include the Tonsly Park proposal in South Australia and the Springfield development in Queensland. To make these true successes, they need to very specifically target and attract Australian and international companies that are or have the chance to play on the world stage. This process should also look at attracting industries at varying points in their maturity.

Stage 4 – Build the Demand Side through the Australian Climate Initiative
Taking the Clinton Climate Initiative (CCI) as a template, there may be an opportunity to stimulate the sustainable manufacturing initiatives of Stage 3 by effectively forming a buying group of local councils and State and Federal Government departments. To do this on an Australian scale, an ‘Australian Climate Initiative’ (ACI) would only require an initial group of several State and Federal Government departments and some key Councils. Through publicity and exposure, others would be encouraged to join across all three tiers of Government.

Stage 5 - Local Empowerment: Facilitate Local Innovation
Promote projects and provide facilitation services to enable local councils and local communities to develop smaller scale projects in their own area. This will allow the community to feel part of the solution, will harness many more hands, will attract greater and more diverse investment models and will deliver significant community behaviour change. A Victorian example is the Hepburn Wind Farm project. Another example is the proposed Just Peachy project in the northern suburbs of Adelaide that combines urban regeneration, increased social capital underpinned by the growth in sustainable businesses.

Stage 6 – Negotiate Infrastructure Hurdles
There are some large scale infrastructure projects that are unlikely to be developed in the short term without Government leadership. If these projects are delivered, however, they will provide a step change in the delivery of new technologies and a spring board for the country to become a centre of excellence. The best example of this is a High Voltage Direct Current (HVDC) cable that could be constructed from the renewable energy resource rich areas of the country to the energy demand centres.

Stage 7 – Demonstrate Success: Power Parks
Professor Stephen Schneider from Stanford University suggested the South Australian Government develop power parks promoting multiple low emissions technologies and ‘showcase the State as a centre for innovation in greenhouse emissions reduction and renewable energy development’. This concept could be developed across the country with demonstration facilities in specific sectors show casing the best of breed for many technologies.

Cleantech Growth through Collaboration

2008-09-01T14:02:00.002+09:30

Tangible cleantech outcomes can only be effectively achieved through collaboration between the four core groups of cleantech participants and by adopting a four point collaboration strategy.

The four core participant groups of the cleantech industry are business, governments, researchers and the finance community. Extraordinary outcomes will be achieved by combining the knowledge, capacity and resources of each of these groups.

The combination of innovative research, business needs, commercialisation skills, financial drivers and all three tiers of Government can deliver solutions that not only meet environmental needs but also deliver economic and social dividends. If any one of the core groups is missed from any stage of the process then the result will be, at best, sub-optimal.

Collaboration between the core groups must occur throughout the lifecycle of the project. The adoption of a four point collaboration strategy facilitates behaviours which lead to cleantech innovation and growth.

Strategy 1 - Networks. Cleantech networks are starting to emerge. They provide valuable forums for making new connections and starting new discussions. One example is the Adelaide Cleantech Network, which organises educational events to facilitate cleantech growth in addition to other opportunities for members of the core groups to meet and exchange information and opinions.
Strategy 2 – Drive Demand. Through establishing buying groups of companies, government departments, local councils or businesses, it is possible to jump start emerging technologies.
Step 3 – Drive Innovation. The establishment of cleantech manufacturing and development parks creates and enables the positive interdependencies between researchers, companies and financiers. This enhances product development both in terms of quality and time to market.
Step 4 – Demonstrate Success. Highly publicised demonstration parks or projects are required to provide access to multiple technologies in-situ. The successful technologies are likely to be those that were conceived at network events and borne from the impetus of buying groups and cleantech parks.

Amidst the noise of emissions intensive industries crying foul, the voice of opportunity is starting to be heard. Grasping this opportunity requires the implementation of a comprehensive collaboration strategy that brings together the four core groups of cleantech participants. Governments and other facilitators can lead this strategy, but it requires commitment from all four groups for it to succeed. Once implemented, the multiple dividend streams of cleantech will be fully unleashed.

This is an edited extract of an article that was originally published on Environmental Management News. For a full version of the article please email info@auscleantech.com.au

Adelaide Cleantech Network - Grants & Investment Seminar

2008-08-12T21:50:00.017+09:30

The First Adelaide Cleantech Network Seminar was held on Tuesday 2 September 2008 at the National Wine Centre in Adelaide

The high level seminar was organised by the Adelaide Cleantech Network, the only organisation of its kind in Australia. The conference brought together representatives of business, finance, government and academia and promoted collaboration across these groups to stimulate the growth of cleantech companies.

Commenting on the event, John O’Brien, Managing Director of Australian CleanTech said that Australia will adapt quickly to a future of low emissions and resource constraints by providing an environment for new companies and technologies to flourish. “Maintaining and protecting existing industries is important in the short term, but it does not result in a leadership position in the long run,” he said.

“Adelaide is leading the way in demonstrating how the collaboration between business, finance, government and academia can produce sustainable companies providing investment returns and economic development.”

The first session of the seminar focussed on State and Federal Government grants and incentives available to cleantech companies. This included one of the few good news stories from the closure of Mitsubishi’s Tonsely Park plant. The Federal and State Governments have jointly launched the South Australian Innovation and Investment Fund which will provide up to $30m for investment in new manufacturing ventures. Another grant that was discussed was the Federal Government’s Climate Ready Grant that will provide up to $5m of matched funding to successful applicants.

Show casing a successful case study, Anthony Kittel, the Managing Director of Lonsdale-based REDARC talked about his company’s success in securing a multi-million dollar grant that has enabled it to expand its operations.

The second session of the PricewaterhouseCoopers event turned the focus from companies to investors. It started with an overview of the Rudd Government’s Carbon Pollution Reduction Scheme along with the current state of lobbying by ‘big business’ looking to protect and forward their interests. Other topics included an overview of picking stock market winners and losers for a carbon constrained world and the investment strategy of South African bank, Investec, to make money from cleantech.

In the last session of the morning, Fiona Waterhouse from the Australian Cleantech Marketplace explained the new ways Australian investors can access environmentally friendly investments. Included was a commentary on the world-first Sustainable Investment Market, the Sydney based stock exchange that will only list cleantech companies.

Cleantech investment differs from ‘socially responsible investments’ and their ilk, focusing only on companies whose output positively enhances communities and ecologies. “It is about doing ‘more good’ rather than ‘less bad’,” Mr O’Brien explained.

To round off the day IBM Australia’s Malcolm Mackey explained how IT is the enabler of both the technologies and investment returns associated with cleantech.

Australian CleanTech has estimated that, if the Australian growth matches the global forecasts, annual revenue for the Australian cleantech sector could exceed $40Bn within the next 10 years.

“Successful cleantech investments are about looking at future trends and understanding which technologies will achieve both economic and sustainable development,” Mr O’Brien said.

“The drivers behind cleantech are much more than just climate change. Increasing wealth, increasing populations and decreasing natural resources require the world to adapt to cleaner technologies,” he added.

Mr O’Brien concluded by dismissing what some commentators have coined as a ‘green bubble’, similar to the IT bubble of the turn of the century. “With many real assets being constructed and global demand for its products and services increasing, the cleantech revolution is here to stay.”

“Finally we have a solution to the dichotomy between good returns and positive environmental investments. We now have a way to make money and save the world.”

EMAIL acn@auscleantech.com.au FOR INFORMATION ON FUTURE EVENTS

The Cleantech Cure for Climate Fatigue

2008-08-02T17:55:00.005+09:30

A new challenge for those fighting the effects of climate change is on the horizon - ‘climate fatigue’. Each day the public is bombarded with terrifying prognoses for the future that they and their forebears have created.

Many people are understandably confused about the possible effects of climate change and feel an inability to make any meaningful difference. They sense a lack of control and eventually fear will give way to resigned boredom and the distractions of more immediate and local issues. So, ironically, as media exposure on the issue of climate change increases so too does the danger of climate fatigue.

Yet it is essential that individuals and their communities do stay motivated and engaged with the solutions to climate change – it is not enough simply to rely upon scientists and politicians to alleviate the consequences. Cleantech provides the solutions that will deliver both global and local benefits and ensure the community engagement is maintained.

“Climate fatigue” may be compared with the well documented phenomenon of famine fatigue. As news of ever more famines continue however, the length and depth of compassionate feelings reduces until there is tendency to accept famines as unavoidable.

Famine fatigue or, more generally, compassion fatigue occurs fastest when the suffering is far removed. Climate fatigue is no different, as shown by Putin’s retort that Russians are unlikely to suffer from a slight rise in temperature, and the effects of climate change are often seen as a problem belonging to the distant future and far flung places of the world. However, recent Australian weather conditions – both floods and droughts – have focussed many Australians on the immediacy and relevancy of the problems created by climate change. Extreme weather patterns elsewhere, such as the US and parts of Europe, have had the same effect. Enthusiasm for change is high, both here and abroad, and fatigue has yet to set in.

To harness this enthusiasm and secure its benefits requires two aspects: firstly, local benefits must be visible to communities so that the benefits of change are clear; and secondly, networks and forums must be established to facilitate new connections and enable new collaborations. This is where cleantech comes in.

Focusing on local benefits whilst also delivering part of a national or international solution is not easy. It requires collaboration and understanding between business, investors, academia, all three tiers of government and most importantly the general public. Providing a forum to have these conversations is a vital first step to delivering the greatest benefits from changes that are going to be required as a result of climate change.

One example of this first step is the recently formed Adelaide Cleantech Network. This brings together all of the disparate groups and enables discussions to start on wider more ambitious solutions.

By changing the story from one of worry to one of opportunity, cleantech alters the whole dynamic of climate change. It is a twist on the concept “think global - act local” which has historically been seen as taking local detrimental actions to achieve global benefits. Instead this is thinking about worrying global events and turning them into an excuse to deliver local benefits.

By focussing on how cleantech solutions can deliver local, as well as global, benefits and by starting new conversations and collaborative relationships, we have the opportunity to make climate change seen as the great motivator to a better world.

This is an extract of the full article that was first published Environmental Management News. For a full version of the article please email info@auscleantech.com.au

What is Cleantech?

2008-07-10T22:03:00.004+09:30

On forming Australian CleanTech early in 2007, I was asked several times whether I would be cleaning carpets and curtains. Although understanding of the term has now grown to a point where I no longer face queries about rejuvenating soft furnishings, the actual definition of ‘cleantech’ seems to change depending where you look.
John O’Brien, Australian CleanTech

Guiding principles may be given in an attempt to define what cleantech is. An example is the following from US firm Clean Edge, which states cleantech is:

A diverse range of products, services and processes that harness renewable materials and energy sources, dramatically reduce the use of natural resources and cut or eliminate emissions and wastes.

Broadly, cleantech seems to encompass companies that have both environmental and economic benefits.However, each individual is left to decide whether a particular industry sector fits within the spirit of cleantech as defined by such principles. Some organisations clearly state what they are and are not including in their definition, but then do not go on to explain how these decisions have been made.

The term cleantech therefore tends to be a more amorphous industry group than, say, environmental services, and a less rigid investment asset class than, say, financial services.

Sectors that appear to fit into the definition of cleantech without dispute include:

Renewable energy – wind, solar thermal and photovoltaics, wave, tidal, hydro, geothermal, biomass and biogas;
Water technologies that increase efficiency;
Energy efficiency, green buildings and biomaterials;
Waste management and recycling;
Energy storage and fuel cell technologies;
Low emission vehicle technologies; and
Environmental Services.

Other sectors are controversial with some including them within cleantech by reason of their environmental benefits whilst other reject them because of insufficient positive environmental benefits, or too many perceived negative impacts. Examples include:

Biofuel, an emotive subject seen by some as the saviour to high oil prices and energy security issues but by others as the cause of rising food prices, food riots and increasing monoculture.

Carbon Trading is clearly driving much of the investment behaviour in cleantech, but it is questionable whether the act of trading has any direct environmental benefits.

‘Clean’ fossil fuels include natural gas, coal seam methane, underground coal gasification, gas to liquids, carbon capture and storage and clean coal technologies.

Nuclear power clearly has a lower emissions profile than the fossil fuel equivalent and is highly likely to form part of the long term global solution to climate change. However, deep concerns remain over the environmental and social impacts of uranium transport, usage and waste storage.

Agri-Businesses, included in many measures of environmental performance due to their clear interaction with the environment. Yet this interaction is not always a positive one for the environment and the communities involved.

It is clear that decisions on what counts as cleantech depends on the viewpoint and vested interest held. Lobby groups, investment fund managers and participating companies all have desired outcomes that help shape their arguments on the definition.

Despite this, cleantech is not is just another term for Socially Responsible Investments (SRI) or Environmental, Social and Governance (ESG) performance. Cleantech is a term which embraces organisations whose essence, whose raison d’être, is to provide environmental benefits.SRI and ESG look at incremental improvements in company performance and can be seen as ‘operational hygiene’ measures that find the best in class. Cleantech is about doing ‘more good’ rather than ‘less bad’.

To those who ask ‘What is cleantech and what does it encompass?’ there is no definitive answer as both subjective opinion and vested interests are involved. However, this should not detract from the multiple benefits available to investors, communities, employees and society from the work of the cleantech industry.

This is an extract of the full article that was published Environmental Management News. For a full version of the article please email info@auscleantech.com.au

Adelaide GreenDrinks

2008-07-10T21:49:00.005+09:30

Cultivating an Eco-Minded Community

First meeting: 8th July ‘08.

Venue: Sangria, Corner of Gouger and Morphett St, Adelaide

Regular meetings : Second Tuesday of the month.

Contact Details: suhit.anantula [at] worldisgreen.com or 0433 601 501

Next meeting: 12th August, 2008

People are the key. And the best way to learn more and make life interesting is to meet more people. And what better way to do that than to have a regular place to chill out, drink and discuss.

And in the green area, there is something called Green Drinks managed by Edwin at Biothinking. Green Drinks is an organic, self-organising network running in 380 cities worldwide.

Australian cities like Melbourne and Sydney have their version of the Green Drinks and Adelaide lacked this. Well, not anymore.

For more information see http://worldisgreen.com/

“Make Money and Save the World”

2008-07-02T22:49:00.002+09:30

Cleantech Index Outperforms Market for Second Year Running

The ACT Australian CleanTech Index has outperformed both the S&P ASX200 and the S&P Small Ordinaries for the second year running.

Over the 2008 fiscal year, the ACT Australian CleanTech Index recorded a loss of 16.0%, better than the S&P ASX200’s loss of 16.4% and significantly better than the S&P ASX Small Ordinaries’ loss of 23.0%.

The Index is the initiative of Australian CleanTech which provides research services and investment analysis of the cleantech sector.

Commenting on the results, John O’Brien, Managing Director of Australian CleanTech said that the strength in the cleantech concept comes from its diversity. Over the year some of the cleantech sub-sectors performed extremely poorly with the Biofuels industry continuing to tank. However, the waste sub-sector held up the index this year through its strong annual growth. In previous years, it has been sub-sectors such as Geothermal that have provided this growth.

“Successful cleantech investments are about looking at future trends and understanding what technologies will achieve both economic and sustainable development,” Mr O’Brien said.

“The drivers behind cleantech are much more than just climate change. Increasing wealth, increasing populations and decreasing natural resources require the world to adapt to cleaner technologies,” he added.

The ACT Australian CleanTech Index monitors companies across 14 industry sectors: solar; wind; biofuel; water; waste management; energy efficiency; energy storage & fuel cells; wave, tidal & hydro; biogas generation; vehicle technologies; geothermal; carbon trading; environmental service providers; and ‘other’ additional companies providing beneficial environmental and economic outcomes.

Cleantech focuses on companies whose output positively enhances the communities and ecologies in which they reside. “It is about doing ‘more good’ rather than ‘less bad’,” Mr O’Brien explained.

The market capitalisation of the 73 stocks in the ACT Australian CleanTech Index now exceeds A$15 billion. The best performers over the 2008 fiscal year were Sims Metal Group and Cougar Energy with some of the many that performed poorly including Traffic Technologies, Energy Developments, Viridis, Australian Ethical Investments and Ceramic Fuel Cells.

The performance of the seven sub-indices underneath the ACT Australian CleanTech Index reflected the wider market with strong gains in FY07 offset by losses in FY08. The ACT Wind Index, ACT Waste Index and the ACT Geothermal Index are all showing strong net gains over the two years with the ACT Environmental Services Index joining the ACT Biofuels Index with notable losses.

Mr O’Brien concluded “Some commentators have dismissed the cleantech phenomenon as being a mere ‘green bubble’, similar to the IT bubble of the turn of the century. With many real assets being constructed and global demand for the products and services increasing, the cleantech revolution is here to stay”.

“Finally we have a solution to the dichotomy between good returns and positive environmental investments. We now have a way to make money and save the world.”

Inaugural Adelaide Cleantech Networking Drinks

2008-07-02T22:35:00.002+09:30

The inaugural Adelaide Cleantech Networking drinks were held on Tuesday 1 July 2008. Over 80 people attended the event and made the inaugural drinks a great success. Attendees included representatives of water, energy, waste, carbon and environmental services companies. There was also a good representation from the finance industry with companies attending from venture capital, private equity, stockbroking and financial services. Finally there were also people from Government agencies and professional services firms.

The sponsor for the evening was Playford Capital and the event was kindly hosted in the rooms of the Water Industry Alliance. Playford Capital announced a cleantech deal that they closed the previous week with Ember Technologies to enable them to commercialise their energy efficiency technology.

The next Adelaide Cleantech Network drinks will be held on Tuesday 5th August. If you are interested in attending or learning more of the Adelaide Cleantech Network please email acn@auscleantech.com.au.

Adelaide Cleantech Network Events

2008-06-06T14:53:00.005+09:30

To receive further information about all events, please email acn@auscleantech.com.au with Register for the Adelaide Cleantech Network in the Subject line.

Are you interested in Cleantech?
The cleantech sector comprises industries with both environmental and economic benefits. Sub-sectors include renewable energy (wind, solar, wave, tidal, hydro and geothermal), water, waste and recycling, energy efficiency, green buildings, biomaterials, energy storage and fuel cells, environmental service providers and carbon traders.

Monthly Drinks
To provide a regular and informal environment for collaboration and networking, the Adelaide Cleantech Network will hold monthly drinks and nibbles on the:

FIRST TUESDAY OF EVERY MONTH
5:30 until 7:00pm

The Adelaide Cleantech Network Drinks begin on Tuesday 1 July 2008. Bookings are essential for these events.

Formal Seminars
More formal seminars on specific topics will be held on the

FIRST TUESDAY OF EVERY QUARTER

These seminars will vary in format but will generally conclude by joining the monthly Adelaide Cleantech Network drinks. The Adelaide Cleantech Network formal seminars begin on Tuesday 2 September 2008.

Who will you meet?
The Adelaide Cleantech Network aims to provide education and links to the finance industry and government services.
Investor involvement ranges from angel investors and venture capital companies that can provide early stage capital through to larger financial institutions able to fund major infrastructure projects. These attendees find the sector highly attractive because the participating companies are involved in high growth industries, have strong reputational capital and offer a positive outlook.

A diverse range of industry participants including industry associations, Government departments and Universities are involved in the Adelaide Cleantech Network. Global connections are provided through international affiliated organisations.

Take the Opportunity!

Be part of the Adelaide Cleantech Network and help enable South Australia to become a centre of excellence for cleantech.

Beyond Carbon 2008

2008-06-04T07:48:00.006+09:30

Australian CleanTech was one of the organising partner of the Beyond Carbon 2008 conference held in Adelaide on 3-5 June 2008. Over 250 people attended the first day and the launch of the Adelaide Cleantech Network.

Beyond Carbon 2008 explored the challenges and opportunities presented by the transition to a carbon constrained economy, from multiple perspectives and for multiple audiences.

The conference included business and local government days, public seminars, a High School Climate Ambassador workshop and a dinner for 50 experts to provide guidance on how the world can take advantages of the opportunities provided by the necessity to transition to a carbon constrained economy.

The dialogue will continue at the Beyond Carbon 2009 event in June 2009.

The content of the business day was summarised at http://worldisgreen.com/

Technology Commercialisation Services

2008-05-14T15:54:00.004+09:30

May 2008

Australian CleanTech has launched a Technology Commercialisation service to help companies bring new cleantech technologies to market both in Australia and internationally

Technology Commercialisation
The technology commercialisation services offered include:
· Technology valuation
· Intellectual Property protection strategies
· Marketing strategy development
· Business Plan preparation
· R&D Tax Concession assistance
· Grant application preparation

Basic Commercialisation Package – to assist early stage companies bring their products to market, Australian CleanTech offers an economic commercialisation service consisting of:
· Half-day workshop to develop strategy and guide the preparation of the business plan
· Review of draft documents.
· Distribution to targeted investors both in Australia and internationally.
· The charge for this package is a flat rate to the client of $2,000.

Australian CleanTech can also provide more extensive assistance tailored to meet specific commercialisation needs.

Companies looking for assistance in commercialising their technologies should contact us at john.obrien@auscleantech.com.au or 0419 826 372

The Unstoppable Growth of Cleantech

2008-05-04T13:07:00.003+09:30

May 2008

The Clean Technology sector will be the success story of the next 20 years. Its global revenue has grown exponentially over the last few years and this growth is forecast to continue for many years to come.

Some commentators have dismissed the phenomenon as being a mere ‘green bubble’, similar to the IT bubble of the turn of the century. However the drivers behind cleantech’s growth are significantly different. Firstly, there are many real assets being constructed to provide core services such as power, water, waste and recycling. Secondly, the demand for these core services is growing due to population growth and increasing wealth. Thirdly, as the world continues to use and deplete its natural resources there is increasing pressure on communities to act sustainably. Finally there is the recognition of climate change and consequent regulatory regimes. This is a separate driver from those above and, whilst it will result in additional growth in some cleantech sub-sectors, it does not underpin the cleantech sector as a whole. As a result, the growth of cleantech will be unstoppable.

Research and forecasts by Clean Edge indicate that the clean energy sector alone had global revenues of US$77.3Bn in 2007 and this is forecast to rise to over US$250Bn by 2017.

In Australia, the definitive measure of cleantech performance is the ACT Australian CleanTech Index. This tracks 73 cleantech companies listed on Australian exchanges with combined forecast FY08 revenues of over A$13Bn and a combined market capitalisation at the end of April 2008 of over A$15Bn. The ACT Index outperformed both the S&P/ASX200 and the S&P/ASX Small Ordinaries during the 2006-07 financial year with a gain of 42.9%. Over the first four months of 2008, the ACT Index has again outperformed both of its benchmarks. If the Australian growth matches the global forecasts, annual revenue for the Australian cleantech sector could exceed $40Bn within the next 10 years.

The future for cleantech, both here and abroad, is bright. It has multiple global drivers and government backing which makes it stand out from previous growth industries. As it grows, mainstream corporate Australia will buy in through purchasing and acquisition decisions and this will enable the entire economy to move towards sustainability. By combining industry with investors, the cleantech sector will underpin and be essential for the transition to a sustainable world.

This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au

2020 Ideas

2008-05-04T13:01:00.003+09:30

April 2008

I’ve put together some thoughts on climate change policy and actions. They are split into two groups with the first focussing on how to enable the general public to be ‘part of the solution’ and the second on steps the Government can take if it has the courage to face down its detractors.
Being Part of the Solution

To achieve widespread involvement and adoption of climate friendly products and activities, there needs to be an alignment of individual economic benefits with behavioural changes that speed the transition to a low carbon economy. This can be achieved by costing in externalities and encouraging efficient resource use. The proposed Emissions Trading Scheme (ETS) will achieve this to some extent for power and manufactured materials and there other emerging schemes that will achieve this for water.

A more direct, and possibly more successful, involvement in the solution can be through enabling the general public to profit from the growth in clean technology solutions:

Dedicating, or even mandating, a proportion of superannuation savings to investment in companies that are providing the solutions would certainly spur growth.
A simple option to encourage take up of household technologies such as solar panels and water tanks, would be for the high street banks to facilitate the costs of such purchases to be added to an existing mortgage.
Perhaps more interesting are community funded projects such as Hepburn Wind Co-operative in Victoria. Such projects benefit not only the environment but the communities involved as well.

Courage
Australia’s extensive coal reserves lend support to the proposal that it lead global efforts into making carbon capture and storage (CCS) a viable economic and environmental option. However, the doubtful sustainability of filling up reservoirs to store sequestered carbon and the question of large scale cross country liquid carbon pipelines seems to limit the long term viability of CCS.

There are two large scale projects that the Government could pursue that would have significant impacts on reducing the source of emissions as follows:

In his interim report, Garnaut discussed using the proceeds of the ETS auctions for publicly funded infrastructure to facilitate the uptake of low emissions technologies. To encourage utility scale development utilising Australia’s best resources, a DC power cable network could be laid starting near Ceduna in SA, running through the prime locations for geothermal and solar thermal and connecting into the NSW grid somewhere in the west of the state.
Given Australia has much of the world’s uranium that we are happy to dig up and sell to the world for use in nuclear power stations, it is difficult to argue against the development of a world’s best practice nuclear plant with an on-site integrated uranium supply and disposal chain.

These are brave calls on long term infrastructure projects that would fundamentally change the country. Will the Government have the courage to follow through and establish the infrastructure to allow the long term exploitation of its greatest sustainable assets of natural nuclear power, wind and solar rather than backing an ‘end of the pipe’ solution for the power source of the industrial revolution?

This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au

The Battle for Emissions Trading Profits

2008-05-04T12:56:00.003+09:30

March 2008

The debate on the design of the Australian Emissions Trading Scheme (ETS) has only just begun. There have been a few opening salvos but, as yet, the battle has hardly started. The fight will be hard because the design of the ETS will make or break individual companies and maybe even entire industries. We should expect the fight to get nasty!

One of the most contentious issues is whether or not emissions intensive industries should be given free permits. This was the approach adopted when the European Union ETS was introduced in an attempt to appease industry and get the scheme approved. Europe however is now back tracking. By their nature, the emissions intensive industries are the very ones that need to change the most for any serious emissions targets to be met. If market mechanisms are implemented that exempts these companies, then an ETS cannot possibly achieve its optimum outcome.

A system that is designed to reduce emissions must of course affect those that produce the most emissions.

The industry groups of the high emitters such as the Australian Industry Greenhouse Network have valid arguments. Why should regulations intervene in a free market? If consumers want to change to other products of better quality or lower price then that is a valid market risk. If Government intervenes, that is regulatory risk and there should be compensation for any losses.

The extent to which profits will be affected will be proportional to the extent to which individual companies have prepared for this moment. Emissions trading will not be a shock to any large company. The world has been moving towards it for many years and the well run companies will have recognised this risk and put contingency plans in place.

There should be no pretence that the introduction of an ETS will not have a dramatic impact on the Australian economy. There will be winners and losers and there is big money at stake. The aim of the scheme is to enable a transition to a low carbon economy with the least pain along the way. However, it is inevitable that there will be some local discomfort. However, the birth of the new economy will be eased by wisely spending the significant funds raised from the auction of the permits.

To provide the best outcome for Australia, and to demonstrate the most effective ETS for the world, the Government must adhere to its goal of achieving emissions targets in the most efficient way. It matters not in this context whether profits are lost by large emissions intensive industrial companies or are gained by investors in innovative low emissions companies. In addition, a long term solution requires that threats to jobs in specific sectors or regions have no impact on the policy framework. These emotive arguments must be ignored for the greatest benefit to all.

This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au

Emissions Trading - A Question of Courage

2008-05-04T12:48:00.004+09:30

March 2008

Australia is poised to move from global laggard on climate change policy to trailblazer, setting the benchmark on emissions trading and innovative policy implementation. Australia’s unique position of inaction and isolation presents it with the opportunity to build the world’s best emissions trading scheme (ETS). The year ahead will determine whether it has the courage to deliver on this potential.

The introduction of an ETS will have a major impact on the Australian economy and there will be big winners and big losers. As a result intensive lobbying efforts will be made by all sides. The best outcome for the nation will be achieved if Rudd ignores the vested interests and listens only to the economists and the political strategists. Australia’s inaction to date presents an opportunity to use the experience gained elsewhere to design the world’s most effective ETS. By demonstrating an innovative and courageous system, the world will have a pilot scheme on which to base the emerging global system. Australia could perform a huge service to the world by focussing on the ideal system and ignoring purely local perspectives.

His current world trip is the perfect forum perfectly timed for Rudd to become the travelling salesman for an effective solution to climate change. Australia can lead the way for the world on how to best deal with emissions but needs the world’s support to overcome local resistance to structural change. He stands to gain the world’s support and a position of strength from Australia will benefit. Returning home a hero, he would be emboldened with the strength to resist those who wish to lead him from his path. The opportunity awaits.

An earlier version of this article was published in the London-based CARBONfirst journal that is published by IDEACarbon, a consultancy group co-founded by Sir Nicholas Stern.

This is an edited extract of an article written by John O'Brien. Full a copy of the full article please contact info@auscleantech.com.au

GPAus Windpower

2008-05-04T10:33:00.004+09:30

April 2008

Creative Destruction
GPAus Windpower’s simple and wonderfully innovative business model allows local communities to invest in local wind farms and buy power from the same facility.

The business model involves the creative destruction of the downstream energy industry by allowing customers to become investors directly in generation assets. By rolling the model out in multiple countries, it has the potential to change the global energy industry.

One of the challenges with the concept is that it only requires a fairly modest corporate investment to get it started. Without the need for further investment and the consequent balance sheet benefits, listed energy companies find it difficult to get excited about the potential opportunities. Listed companies are also reluctant to dilute their equity and share ownership with communities in the way that this model envisages. In Australia, we have canvassed the major energy companies without success as it appears to not provide them with the right benefits and holds the threat of changing the dynamics of the whole industry and threatening entrenched strategies.

Engaging Millions of People
By enabling 1,000 community investors to ‘own’ each 2MW turbine, the community become part of the solution. Through the refinancing of each wind farm, the development of additional assets and the repetitive refinancing, the community engagement potential is huge.

In developing countries, the community investment model can be restructured and, in conjunction with micro-finance, can enable economic development for the bottom on the pyramid. We will have the answer to “ Its such a big problem, what can I do!”

For more information on this exciting project, contact Australian CleanTech

Launch of the Adelaide CleanTech Network

2008-05-04T10:16:00.008+09:30

April 2008

The Adelaide Cleantech Network will establish South Australia as a leading national and international provider of Clean Technology services, products and innovation. The concept has been developed and will be launched by Australian CleanTech in association with industry and State Government partners. The Adelaide Cleantech Network will be officially launched at the Beyond Carbon 2008 Conference on 3 June 2008 in Adelaide.

The Value of a Cleantech Network
Whilst the concept of industry clustering is not new, one of the components that has often been missing is the active participation of financial institutions. Commonly, clusters have been formed to facilitate participants to grow through knowledge banks and knowledge transfer and enabling the opportunity to form bidding/buying groups. The inclusion of financial participants however creates additional opportunities to commercialise technologies and obtain funding for business growth. Through regular gatherings and communication, the Adelaide Cleantech Network will enable South Australia’s companies to keep ahead of the overall growth of the cleantech sector.

Investor Interest
The proposition to investors is highly attractive. The participating companies are all involved in high growth industries, have strong reputational capital and offer a positive outlook. The global industry growth is being driven not only by climate change concerns, but also by population growth and increasing wealth leading to both increased strain on environmental resources and an increased ability to pay for the solutions. Investor involvement will range from angel investors and venture capital companies that can provide early stage capital through to larger financial institutions able to fund major infrastructure projects. Additionally, more traditional debt and equity providers will provide advice and offer assistance to the industry participants.

Industry Participants
A diverse range of industry participants have expressed an interest in being involved in the Adelaide Cleantech Network. Industry associations for the water, waste management, environmental, renewable energy and remediation industries; Government departments covering recycling, natural resources and economic development; and University innovation and commercialisation departments.

In addition, the Adelaide Cleantech Network will provide connections to global cleantech investors and companies through a range of international affiliated organisations. This will present opportunities for both inbound and outbound cleantech investment.

To attend the launch of the Adelaide Cleantech Network book through CEDA at http://ceda.com.au/public/events/29100.html

ACT Australian CleanTech Index

2008-05-01T12:08:00.006+09:30

March 2008

The ACT Australian Cleantech Index provides a measure of the performance of the Australian listed stocks in the Cleantech sector. With over 70 companies following under the coverage of the index and with a combined market capitalisation of over $15Bn, the index presents for the first time a picture of the industry’s growth in a single measure.

The index is weighted by market capitalisation and is benchmarked against both the S&P/ASX200 and the S&P/ASX Small Ordinaries.

The rules for the formulation and management of the index have been developed with reference to global best practice.

Organisations interested in using the ACT Australian Cleantech Index should contact us for more information

11 March 2008 - ACT Australian Cleantech Index launch media release

2 April 2008 - 3Q08 Performance Report

1 May 2008 - April 2008 Performance Report.pdf

1 June 2008 - May 2008 Performance Report.pdf