Drivers of a New Energy Economy

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Drivers of a New Energy Economy

• Center of Excellence for Energy Technology
• Annual Best Practices Summit
• June 26, 2008
• Rhys Roth, Climate Solutions

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Seismic Shifts in Energy Markets Change
Mega-Drivers

• Energy Security Goes Bipartisan
• Oil Sticker Shock
• Carbon Caps are Coming
• Clean Energy Scaling Up

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Change Mega-DriverEnergy Security Goes
Bipartisan

• "If you're thinking about this as an
  environmental issue first and foremost, you're
  missing the point. (Energy independence) is a
  national security emergency."
• -- Frank Gaffney, Center for Security Policy

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Change Mega-Driver Oil Sticker Shock

• MY JUNE 2005 SLIDE SAID
• Oil price pressure is up
• World oil price permanently over 50/barrel?
• Led by exploding demand in China and India
• Many think it will go higher.
• --------------------------------------------------
  -------
• EIAs new projection for 2009
• 126/barrel average

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Crude Costs US Oil Imports April 2008 29.3B
? rate of 350B/yr!
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Change Mega-Driver Carbon Caps are Coming

• John McCain Proposing carbon cap-and-trade
  system to cut global warming pollution 60 below
  1990 levels by 2050
• Pledges a climate policy to spur the development
  and deployment of advanced technology.
• Barack Obama Proposing cap-and-trade to cut
  global warming pollution 80 below 1990 levels by
  2050
• Invest 150B over 10 years in clean energy

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Change Mega-Driver Clean Energy Scaling Up

• Global revenues for renewables grew 40 last year
  to 77 billion
• Total investment in renewables grew 60 to 148
  billion
• U.S. venture capital investment in new energy
  technology
• 10 years ago 50 million/yr
• Last year 2,600 million/yr
• In 2007, nearly 1 out of 10 of total venture
  investment went to a clean energy company

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What Top NW Investors are Saying
We see clean energy technology, given the right
policy signals, as a ripe opportunity for
increasing investment and job creation in our
region Clean energy can become as big and
valuable to the Northwest as semiconductors,
electronic and computer equipment, software and
communications technology. Nancy Floyd, Nth
Power Dave Chen, Equilibrium Capital Steve
Saltzman, Intel Capital
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Northwest Clean Energy Jobs Some Examples

• McKinstry (throughout Northwest) Energy efficient
  commercial building systems (1,200 jobs, 280M
  annual sales)
• Solaicx (Portland, OR) Silicon wafers for solar
  PV (52M investment and 100 jobs by end of 2008)
• SolarWorld AG (Hillsboro, OR) Silicon wafers for
  solar PV (400M new investment and eventually
  1000 workers)
• Solar Grade Silicon (Moses Lake, WA) Silicon
  feedstock for solar PV (170 jobs in 2005)
• Itron (Liberty Lake, WA) HQs of global smart
  electricity and water meter company (8500 jobs
  globally, 1.5B in annual revenues)
• Vestas Americas HQ (Portland, OR) US HQs worlds
  largest wind turbine manufacturer
• Hoku Materials (Pocatello, ID) Polysilicon for
  solar PV (260M investment initial payroll of
  200 jobs)
• Nordic Windpower (Pocatello, ID) Wind turbine
  manufacturing (160 jobs)
• Pacific Ethanol (Boardman, OR) Cellulosic
  ethanol demonstration project (48M investment)
  and (Burley, ID) Corn ethanol reducing ghgs by
  40 (120M investment)

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Northwest Clean Energy Jobs Some Areas of Great
Potential

• Solar manufacturing
• Green building and Energy efficiency
• Smart grid
• Next-Gen biofuels-bioenergy-biomaterials
• Wind installation and maintenance
• Electrification of vehicles

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Thank You!

• Rhys Roth
• Climate Solutions
• 360-352-1763, x101
• rhys_at_climatesolutions.org
• www.climatesolutions.org