Are Fuel Cells The Next Big Thing For Phone Companies?

June 7, 2010

Solar and wind-powered cellular base stations are finally taking off. Next up: hydrogen fuel cells, compressed air storage and lithium ion batteries.

A push for renewable-energy base stations appears to be gaining momentum in the telecom industry, with routers and other network-access gear likely to follow suit and go green someday.

The adoption of solar and wind powered cellular base stations seems to be picking up as solar prices fall.

The market acceptance is fueled by lower costs, particular after last year’s sharp fall in solar panels prices. But system engineering is making great strides as well, translating higher solar and wind energy efficiencies into higher overall product performance.

The expanding market is the reflection of a multi-year push by the telecommunications industry for alternative power – and in that sense it mirrors the initiatives of other industry trying to grasp the energy realities of the 21st Century.

But the story has a unique twist. The industry has an obvious starting point: the remote cellular base stations springing up in hard-to-reach developing communities, where trucking in fuel for diesel generators is expensive.

Until recently, solar and wind energy were the two technologies mature enough for deployment. Still, high costs caused the market to evolve slowly, with only a few hundred solar base stations sold a year.

That changed last year. With the dramatic price reductions in solar panels during 2009, the market accelerated. As many as 5,000 solar powered based stations now operate around the world, and, by 2012, this is estimated to balloon to more than 100,000.

“We see a dramatic shift in the market,” says Frederic Wauquiez, a marketing director for alternative energy programs at Alcatel-Lucent. Low-cost electricity from the grid is holding back buying in developed countries, but places such as India, China and Africa are showing growth.

With that success, new technologies are coming to market. Among the leaders are Motorola, which in the past year more than doubled the base stations using hydrogen fuel cells for back-up power at its SINE network in Denmark. More than 100 are in service.

Sprint also employs at least 250 hydrogen fuels cells for back-up power at its cellular towers with technology from ReliOn of Spokane and Altergy. The company received a $7.3 million Energy Department grant to boost its back-up power capability to 72 hours from 15.

Alcatel-Lucent is working with fuel cells in limited trails and says the technology will be the next it introduces. The company’s position is that fuel cells will never be the sole source of base-station power, Wauquiez says. The economics are not there when hydrogen must be carted into a remote site, he says.

At the same time, the French company is working with compressed-air energy storage, advanced vertical-axis wind turbines and lithium-ion batteries. Compressed air will come, Wauquiez says, but the efficiency is low. Advanced turbine designs are “interesting,” and Alcatel-Lucent has battery manufacturers trying to develop the right battery for its needs, he says.

Alcatel-Lucent finds the alternative fuels market important enough to mention in the Corporate Social Responsibility Report it issued last week. The company estimates it has as many as 340 alternative-fuel energy base stations in the field, a 40 percent increase in a year and a more upbeat achievement than the report’s 30 percent target.

So what is this year’s objective? Wauquiez won’t say. It is still being hashed out, he said, but it will be more ambitious than in 2009. Perhaps this confidence is a sign renewable energy products really do have a foothold in the industry.


Banker Reveals How The Pentagon Is Subsidising Foreign Oil Imports To U.S.

October 6, 2009

The U.S. has only itself to blame - and the U.S. military - for its dependency on foreign oil

The U.S. has only itself to blame - and the U.S. military - for its dependency on foreign oil

What a shocker!

According to the GrowthPoint Technology Partners‘ managing director Robert Horstmeyer, the U.S. military helps subsidising the price of the country’s foreign oil imports to a staggering $50 per barrel of crude; today the barrel of crude rose a bit over $70.

All energies are subsidised, not just the clean, renewable ones

So if Horstmeyer’s calculation is right, the “real” price of gasoline in the U.S. should be closer to $5-$6 a gallon than the average price of $3 in California today, for example.

“It’s very difficult to figure out, when you’re looking at different energy supply, what the real cost of energy is. Everything is subsidised and some of it is dramatically subsidised,” explains Horstmeyer, speaking at an event on solar energy hosted by the SDForum.

The investment banker claims – citing military sources – that the Pentagon is spending about a third of its defense budget – which represents $518.3 billion in fiscal year 2009 – to protect the oil fields in the Middle East, “plus 2 wars!”

“So we’re talking hundreds of billions of dollars a year to import maybe 10 million barrels a day. So if we want to cost that oil properly, we should add $50 a barrel to those imported barrels coming from the Middle East,” explains the investment banker.

Follows are 2 video excerpts. The first related to Horstmeyer’s comments on oil subsidies and the second is his introduction remarks.


!8 Hot Solar Energy Startups

September 9, 2009

Many of their names aren’t the first to pop to mind when you think of solar technology.

But they were identified Wednesday as the world’s most promising solar companies by the Cleantech Group and the Guardian, publishers of the Guardian newspaper in Britain.

Part of the so-called Cleantech 100, the firms are privately held and said to have the potential for fast growth. Ten are from the United States, seven from Europe and one from Israel.

By the way, the Cleantech 100 includes companies in eight other market segments, and we will publish their names in coming days. Overall, there are 55 startups from the United States, 13 from the United Kingdom, 10 from Germany, five are from Israel and three from India. No Chinese companies made the list.

Here are the top solar companies:


Despite Downturn German Solar Market Will Grow 25% This Year

August 31, 2009

Solar markets around the world have suffered mightily from the global recession.

Demand has plummeted and prices have fallen sharply.

German market grows as Spanish market shrinks

German market grows as Spanish market shrinks

In Germany, however, expansion is expected to continue, with the market rising 25 percent and retaking the crown as Europe’s largest.

The country should consume 2,000 MW of new solar capacity this year compared with 1,600 MW last year, says Winfried Hoffmann, president of the European Photovoltaic Industry Association.

Europe’s former leader, Spain, added 2,500 MW of capacity in 2008, but will cap the additions at 500 MW this year as national subsidies dry up.

As a whole, Europe expects solar power will provide 12 percent of its energy by 2020, Hoffmann said.


Solar Powered Cellular Base Stations A New Growth Market

August 25, 2009

Wireless cell phone and Internet access is taken for granted in the developed world.

Millions of cellular base stations grace highways, city centers and suburb neighborhoods.

This is less the case in the undeveloped world, where supplying power can be a gating factor. Electric power isn’t always available, and trucking in diesel to run generators is expensive and polluting.

These difficulties are creating the need for off-the-grid cellular base stations powered by solar panels and wind turbines. By 2014, there will be more than 230,000 cellular stations in third world countries power by alternative energy, says In-Stat.

This implies annual growth of 30 percent – an attractive proposition given the slow recovery the world is experiencing.

In-Stat expects most of the base stations to pop up in South Asia, Africa, the Caribbean and South America.


Strengthening Seen In Solar Market

August 24, 2009

For months, solar panel pricing has been weak as over production gluts the market with excess supply.

This imbalance may be moderating, at least temporarily. Prices earlier this month began to firm after six weeks of decline.

This suggests inventories are drying up, says G Dan Hutcheson, director of the Web site weSRCH and CEO of VLSI Research. When inventories get low, resellers need to replenish their shelves with new orders to manufacturers.

The pricing news comes even as producers continue to feel the pain of a weak market. Late last week, Chinese producer Suntech Power Holdings said second-quarter sales fell by a third and profits plunged 81 percent.

The company cut its expected annual production plans to 600 megawatts, down from previous projection of as high as 700 megawatts.

Hutcheson said retail solar panel prices rose 3 percent the week of Aug. 14 to $4.62 from $4.49 a week earlier. Prices are still off 7 percent from last year.

But special sale pricing programs ended, as did a steady drop in prices.

This decline may be temporary as over supply is a long-term problem that will likely plague the industry into 2010. But some respite may be welcome.


Unsold Solar Cells Piling Up In Warehouses

July 27, 2009

The woes of the solar industry continue and are likely to get worse.

Once in short supply, polysilicon wafers for solar cells are in abundance and prices are falling

Once in short supply, polysilicon wafers for solar cells are in abundance and prices are falling

With demand having collapsed at the start of the year and new factories continuing to come on line, unsold solar cells and modules are piling up in warehouses.

The industry’s only salvation may be a price collapse, making solar cells as cheap as optical bandwidth at the depths of the dot-com washout.

At that point, the dynamics of the industry could change dramatically. Until then, companies will have an increasingly difficult time making money.

In a sign of the continuing troubles, inventories of solar gear, including silicon wafers, soared 64 percent in the first quarter, according to iSuppli.

The glut added 1.5 months of supply to an industry already producing more goods than the market is able to absorb. Prices have suffered and will decline further.

ISuppli believes that the “spot” market price for a kilogram for polysilicon, a foundation material for solar cells, will fall to $50 by December from $180 a kilogram at the start of the year. It is a startling decline.

Companies such as REC, Yingli, and SolarWorld have felt the brunt of the inventory excess because they are involved in all stages of solar cell production, from the polysilicon to wafers and cells. Inventories for these integrated manufacturers rose to more than 161 days from 86 days in the first quarter of last year.

ISuppli expects inventories to continue swelling into 2010 –with the woes facing producers mounting.

Source: iSuppli

Source: iSuppli


Clean Tech Investing Is Victim Of Downturn

July 20, 2009

Venture capital investing sprang back a bit in the second quarter as general partners poured money into healthcare startups.

But clean-tech investing continued to suffer. Investment levels fell back to the early days of the category in 2006.

Green tech investing was down 70 percent in the second quarter

Green tech investing was down 70 percent in the second quarter

Clearly concerns such as falling demand and over capacity weighed heavily on general partners. With an energy bill taking a back seat to healthcare, government policy also appeared a bit murky to investors.

According to Dow Jones VentureSource, venture capitalists put just $317 million into clean-tech deals in the second quarter. While that is up 52 percent from the tepid first quarter, it is down a whopping 70 percent from a year ago.

Investments in renewable energy companies fell an even greater 75 percent. Only 16 deals were done compared with 30 last year.

Expect the cold feet to continue. Venture capitalists will likely need to see the demand picture brighten before thawing out their wallets.

Unless, of course, global warming acts first.


Cleantech Investments Hit Record $8.4 Billion In 2008

January 7, 2009

According to San Francisco, Calif.-market research firm Cleantech Group, venture capital investment in clean technology fell 35% in the fourth quarter, compare to last year’s figure, to $1.7 billion.

Although its both the steepest quarterly drop in two years and the smallest amount invested in six quarters, 2008 was a good year for U.S. cleantech startups, raising $5.8 billion in 241 “disclosed” investment rounds, up 56% from 2007.

All in all, VC investments in cleantech hit a record $8.4 billion, up from $6.1 billion in 2007. Solar continued to account for the lion’s share of investments with 40% of the total, followed by biofuels, transportation and wind.

Top investors included Khosla Ventures, which participated in 21 disclosed rounds, and Kleiner Perkins, which participated in 18. Vinod Khosla, founder of Khosla Ventures and former lead of KP’s clean tech practice, is one of the pioneer in clean-tech investing.


Solar Startup Prepares To Expand Globally

December 17, 2008

Sungevity is building a business around a simple proposition: it claims it can save consumers 10 percent by automating the installation of solar cells on rooftops.

Company will test its business plan, says Danny Kennedy

Company will test its business plan, says Danny Kennedy

The Berkeley startup operates in San Francisco and several surrounding counties, letting customers use its Web site to order from among five different systems.

In February, it will expand to Germany and into other communities across the U.S., hoping to test whether its Web-based ordering will work as it partners with local contractors.

“The real restraints are labor and workforce training,” says President Danny Kennedy about residential solar. “We make it easier and cheaper.”

Sungevity claims it has sold more than 125 systems since opening for business in April. “We’ve taken out the site visit” by replying on satellite maps, says Kennedy.

Kennedy said the company began its Bay Area business to prove whether the model works. Satisfied, it is preparing to expand, and to raise money for that expansion. Kennedy won’t say how much, but he claims that by the end of 2009, Sungevity will have tested its business concept.


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