18 December 2009

China rising, green real estate premiums, and other company, market and government information

Top Stories

Green Giant--Beijing's crash program for clean energy.reliability medium.
"Letter from China" reviews China's efforts over the past decades to become a leader in clean technology, and its success in many fields. David Sandalow, the U.S. Assistant Secretary of Energy for Policy and International Affairs, told the author, "China’s investment in clean energy is extraordinary." For America, he added, the implication is clear: "Unless the U.S. makes investments, we are not competitive in the clean-tech sector in the years and decades to come." Interviews and visits to cleantech businesses in China. See The New Yorker.

3 out of 10 registered CDM projects never receive CERs.reliability high.
Researchers at PointCarbon have found that 30% of projects passed by the UN CDM Board never actually generate any certified tradable reductions, because although the projects have been approved they fail final certification. "To date 1,950 Clean Development Mechanism (CDM) projects, set to generate more than 1,700 million certified emissions reductions (CERs), have been approved by the UN’s CDM Executive Board (EB). However, only 358 million CERs – from little more than 600 projects, which were due to deliver around 1,050 million CERs – have been issued" "most market participants automatically assume that with time all registered projects get their first issuance. However, according to Point Carbon, 3 out of 10 registered projects have never made it to issuance". See PointCarbon site. [Maybe this is why investors can capture 30% of CDM spending: they take significant risks. See earlier item here.]

PwC predicts low-carbon economy will usher in new era of corporate alliances.reliability high.
"International moves to promote energy self-sufficiency and cut carbon emissions will create a unique opportunity for innovative start-ups to emerge as key infrastructure players over the next few years, according to a major report from PricewaterhouseCoopers (PwC). The consultancy giant said the transition to a low-carbon economy will spark a period of historic flux within the business community, characterised by fast-emerging companies and heightened mergers and acquisition activity across the clean tech sector." More highlights of report "Cleantech revolution: Building smart infrastructures". From Business Green. Access PwC press release and report here.

Companies, Industries, Markets and Supply Chains

Carbon Capture and Sequestration Could Reach $221B by 2030: Study.reliability medium.
Political and other forces "could push the emerging industry to capture and store carbon emissions from power plants toward global annual revenues of $128 billion to $221 billion by 2030, according to a report" from Pike Research. Highlights. See earth2tech.

Greener Pastures for Commercial Real Estate.reliability medium.
Guest Contributor Matthew J. Kotchen says "New research shows that green-certified buildings command substantially higher rents and selling prices." "After closely matching buildings and controlling for important structural and location characteristics, they find that office space in green-certified buildings rents for a premium of 3% per square foot. And after adjusting for even higher occupancy rates in green buildings, the effective rental premium is closer to 6% per square foot. What is more, comparable results are found in significantly higher sale prices, from which the green rental premium is consistent with a capitalization rate of just over 6%." More highlights of studies. From Wall Street Journal Real Time Economics blog.

Khosla Bets on Wind, Joins GE to Back Danotek.reliability medium.
"High-profile cleantech investor Vinod Khosla has made his first publicly announced bet in the wind industry, backing Danotek Motion Technologies, a designer and manufacturer of advanced electrical generators for wind turbines. Khosla’s venture firm Khosla Ventures led the $13.2 million round of funding for the Canton, Mich.-based startup, and according to the release, this marks the first investment for Khosla Ventures' new 'late-stage Venture Expansion Fund.' CMEA Capital, Energy Capital Management and GE Energy Financial Services, the investment arm of General Electric also joined the round" See earth2tech.

Fat Spaniel wins $4.6M, points to growth in home solar generation.reliability high.
"As renewable sources of energy like wind and solar power start to gain more momentum, measurement and analysis startup Fat Spaniel may start to see bigger business . . . and now it’s raised $4.6 million in debt financing to continue meeting demand, according to a filing with the SEC." More on the company. See GreenBeat.

Government and Regulation

Brazil holds 1,800MW wind power auction.reliability high.
"Brazil has held its first energy sale directed exclusively at wind power. More than 1,800MW of wind energy was contracted [at] $82.8 per MWh. The proceeds of the auction will allow for the construction of 71 generation projects across five states in the northeast and south of the country." The 20-year value of the contracts is $10.9bn. From NewNet. [Eight cents per kWh (wholesale) sounds pretty good.]

India offers new subsidies for grid-connected wind power.reliability high.
"The government of India’s Ministry of New and Renewable Energy said today it is offering new incentives for grid-connected renewable wind power generation, the Wall Street Journal reported. Wind electricity producers are expected to receive Rs 0.50 ($0.01) per unit of electricity fed into the grid under the new program. The average wind power price in India is about Rs 3 per unit." From Cleantech Group.

[Crossposted from HaraBara.com courtesy of HaraBara, Inc. Copyright © 2009 HaraBara, Inc.]