Robert WeissbourdRW Ventures, LLC

CEii TrentinoSeptember 11, 2010

The Energy of the Future for the Economy of the Present:

Business Opportunities in the Green Economy

Today’s Agenda

I. Defining the Green Economy

II. Direct Business Opportunities

III. Regional Business Strategies

IV. Indirect Opportunities Arising from Systems

V. Sustainability Strategies

The Next Economy is Green

The next American economy will be… low-carbon. -- Larry Summers, Chief Economic Adviser to the President

Million

s o

f U

.S.

Dollars

Investment in Building Energy Efficiency Sub-

Sectors1,200

1,000

800

600

400

200

0

2005 2006 2007 2008 2009

Source: Cleantech Group, LLC

20

30

Source: Bloomberg New Energy Finance

Expected Global Annual Clean Energy Investment

Billion

s o

f U

.S.

Dollars

600

500

400

300

200

100

0

20

05

20

10

20

15

20

20

20

05

What Exactly IS the Green Economy? First, Drivers …

Demand for low carbon technologies is driving growth of Green Tech.

Demand for clean energy generation

Demand for products that reduce energy

consumptionDemand for products that reduce pollution

Global Warming and Pollution

High Fossil Fuel Prices Demand for Environmentally Friendly

Products

Increasing Clean Energy Generation

Clean Energy Sources

Clean energy growth spans generation, storage, and infrastructure sectors.

Wave Energy Biomass Power

Wind Geothermal Solar Fuel Cells Hydro

Systems that conserve energy

Reducing Energy Consumption

Products that conserve energy

Processes that conserve energy

Reduced consumption opportunities run across and beyond the economy.

An Info-Tech Analogy

Like IT, Green Tech will affect the way every company does business.

Producers Users

Many Segments of the Green Economy

The segments of the green economy are varied and ill defined.

Function Category SegmentIncrease

Clean Energy

Generation

Energy source Wind Solar Geothermal Biopower Hydro Wave Alt. Fuels

Energy storage Fuel Cells Advanced Batteries Hybrid Systems

Energy infrastructure

Transmission Management Smart Grids

Reduce consumpti

on of energy

and natural

resources

ProductsApplianc

esLightin

gBuilding Materials

Water Conservatio

n

Audits & Retrofits

Sust. Design &

Construction

Alt. Vehicles

ProcessesLife cycle design Packagin

gSmart Production Recycling

Sustainable Forestry Sustainable Aquaculture

Sustainable Food Processing

Systems Logistics Transit Systems Local Food Systems

Reduce pollution

Products Non-toxic and renewable materials Non-toxic cleaning products

Systems Ecosystem Regeneration

Industrial Ecology Land Conservation

ServicesWaste and Wastewater

ManagementAir and Water Purification

Emissions control

Organic Farming

Support Services Research & Development

Advocacy & Policy

Education Green Consulting

Green Finance

Green Real Estate

DISCUSSION

Today’s Agenda

I. Defining the Green Economy

II. Direct Business Opportunities

III. Regional Business Strategies

IV. Indirect Opportunities - Systems Change

V. Sustainability Strategies

The Puget Sound Region’s Building Energy Efficiency “Cluster”

Understanding Production Clusters

Identifying Opportunities in the Green Economy

Materials Components Manufacturers Logistics & Operations

End Use

Understanding Emerging Markets and their Supply Chains: A Wind Power Example

Firms can adapt existing production capacities to fit emerging markets.

Example: Joining the Green Supply Chain

Auto-supplier created gearbox housings product line for wind developer.

New 42,000 sq foot facility

Gearbox housings

Example: Spotting an emerging market

Welding company added streetcar and wave energy product lines.

Example: Reducing Pollution by Turning Waste into Profit

Alternative uses for waste create sales and production opportunities.

DISCUSSION

Today’s Agenda

I. Defining the Green Economy

II. Direct Business Opportunities

III. Regional Business Strategies

IV. Indirect Opportunities - Systems Change

V. Sustainability Strategies

Regional Green Strategy Development

Identify Emerging Opportunities

Apply established economic development strategies to green opportunities.

Analyze Regional Assets

Determine Development Needs

Develop Products and Services

sectors

Example: Regional Support for Transition to Wind

Regions target growth strategies building on existing companies.

Great Lakes Wind Network (GLWN)

Emerging Opportunities: Wind energy sector growing Support for wind industry

from government

Regional Assets: Strong component

manufacturing base Home to R&D centers Existing network of

manufacturers (WIRE-Net)

Development Needs: Increased connections

between manufacturing base and wind sector

Manufacturers knowledge of wind energy sector needs

Products and Services: Interactive supply chain map Supply chain workshops On-site evaluations

Example: Converting an Industry

Green Building Products Initiative (GBPI) in Pittsburgh

Building Supply Industry

Products and Services: Identification of potential product lines Green training events and information exchanges Grants for innovative product development Online Green Building Product Directory Assistance with certification, labeling, marketing,

etc. Help retooling process to meet green standards

Example: Building Market Demand

Energy Score generates demand and reduces transaction costs for retrofits.

DISCUSSION

Today’s Agenda

I. Defining the Green Economy

II. Direct Business Opportunities

III. Regional Business Strategies

IV. Indirect Opportunities - Systems Change

V. Sustainability Strategies

Demand for local goods creates local business opportunities

Local Production

Local Production Systems

Food grown/produced locally

Irv and Shelly’s Fresh Picks

Chicago’s Downtown Farmstand

Local supply chain

Great Lakes Wind Network

Green Building Products Initiative

Transit Oriented Development and

Transportation Infrastructure

TOD spurs new economic activity while reducing costs and carbon.

Spatial Efficiency

Improve transportation infrastructure

Encourage compact, mixed- use, walkable communities

Support biking through paths and racks

DISCUSSION

Today’s Agenda

I. Defining the Green Economy

II. Direct Business Opportunities

III. Regional Business Strategies

IV. Indirect Opportunities - Systems Change

V. Sustainability Strategies

Sustainability: Good for All Companies

Acting “greenly” is good for the bottom line.

Cost Savings Resilience Branding

Liability Avoidance

A Path to Sustainability

Specific actions determined by company characteristics.

Example of Sustainable Success

South Coast Mold, Inc.

35-year-old tool and die shop with 8 employees in Irvine, CA

In one year: reduced energy by

20% saved over $1,600

in energy costs recorded highest

revenues in company history

Sustainability generates cost savings and brand enhancement.

DISCUSSION

Robert WeissbourdRW Ventures, LLC

CEii TrentinoSeptember 11, 2010

The Energy of the Future for the Economy of the Present:

Business Opportunities in the Green Economy