ChinaWatch: Gripes Over Google

Welcome to ChinaWatch, WMB’s digest of news from the country with the world’s second largest economy and our chief rival to global dominance. Our aim is to keep you informed.


Tax Violations Denied

Chinese authorities found three companies linked to Google Inc. broke tax rules and are investigating possible tax avoidance, a Chinese state-run newspaper reports, raising the risk of fresh pressure on the Internet search giant.



Google, the world's largest Internet search company, says two of the companies named were its units, and a third was a separate firm that works closely with Google, Reuters reports.

But Google denies the tax violations alleged in the Chinese-language Economic Daily.

“We believe we are, and always have been, in full compliance with Chinese tax law,” Google says.

Even if the report is unfounded or embellished, it could bring fresh headaches in China for Google, which has gone through difficult times there since early last year when it quarreled with the one-party government over Internet censorship and hacking attacks.

China generates a small percentage of Google's revenues, but is the world's largest Internet market with more than 450 million users.

The country's search market, dominated by homegrown Baidu Inc., was worth 11 billion yuan ($1.7 billion) in 2010 and is likely to grow by about 50 percent each year for the next four years, according to iResearch.

The Economic Daily reports the three companies investigated and punished were “Google enterprises in China.”

“The taxation authorities have already investigated and punished the three companies according to the law,” the ED reports.

The companies were accused of presenting false and unjustified claims to the total value of 40 million yuan ($6 million), according to the report.

Solar Over Nukes

China, the world’s biggest energy consumer, will cut its 2020 target for nuclear power capacity and build more solar farms following Japan’s atomic crisis, according to an official at the National Development and Reform Commission.

The country will reduce its nuclear capacity goal of 80 gigawatts, says Ren Dongming, director of the renewable energy development center under the economic planner’s energy research institute.

But while he did not give a new nuclear target, the goal for solar-power capacity will increase from the current target of 20 gigawatts, Bloomberg reports.

“We can see delays in some projects, but in the longer term, I don’t see how they can change the program they have in place without facing drastic power shortages,” says David Lennox, an analyst at Fat Prophets in Sydney. “It’s difficult to see what their alternatives to nuclear are.”

Radiation leaks from the crippled Fukushima Dai-Ichi power station following Japan’s record March 11 earthquake have prompted other countries to review their nuclear development.

NDRC Vice Chairman Xie Zhenhua says China won’t alter its atomic energy plans, even as the Cabinet had stopped approving new nuclear plants, pending safety checks.

The crisis in Japan will encourage “healthy development” of the Chinese nuclear industry in the long term as the Fukushima accident will prompt China to take additional safety measures, says Cao Peixi, chairman of Huaneng Power International Inc.

China’s biggest electricity producer won’t alter its nuclear plans because of Japan, according to Cao.

The Chinese government approved on March 1 a proposal by parent China Huaneng Group to develop a 4,000-megawatt atomic plant in Shandong province, says Cao, who’s also president of the group.

The country, building more reactors than any other, currently has at least 14 atomic units in operation, according to data from the World Nuclear Association.

The world’s fastest- growing major economy is constructing at least 27 reactors and has 50 more planned, according to the association. The country started operating its first commercial nuclear plant in 1994.

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ChinaWatch: Sources of Power

Welcome to ChinaWatch, WMB’s digest of news from the country with the world’s second largest economy and our chief rival to global dominance. Our aim is to keep you informed.


IPhones At Risk?

The key to hundreds of modern technologies, from iPhones to smart-bombs, lies in little-known rare earth metals, 95 percent of which are mined by China (picture below shows mining camp).

The nation's decision to slash exports has left the West scrabbling for alternative supplies.

Some 17 rare earth metals are the magic ingredient in almost everything that makes modern life possible.


They may have exotic-sounding names such as terbium, europium, dysprosium and lutetium, but they also have decidedly everyday applications; from BlackBerrys and iPhones to catalytic converters and low-energy light bulbs.

Known in China as "industrial vitamins," rare earths are an essential component in green technologies such as electric cars, solar panels and wind-turbines.

Rare earths are not only essential for civilian life; the world's hi-tech armies also need rare earths for a host of applications from toughening tank armor to guiding smart-bombs and powering night-vision goggles.

Given their global application, it may come as a surprise to know that 95 percent of world rare earths production is controlled by a single country – China.

Last year, China's ministry of commerce announced drastic cuts in the amount of rare earths it would make available for export.

Quotas were cut by more than 70 percent for the second half of 2010 to only 8,000 tons, compared with 29,000 tons for the same period the previous year, at a time when global demand for rare earth elements was picking up fast.

Analysts say quotas are expected to shrink again, this year by 11 percent. Rare earths demand has tripled in the past decade to an estimated 136,000 tons this year. By 2014, some analysts are now predicting a 20,000-ton shortfall in key metals.

More Than Air

Despite surpassing U.S. installed wind capacity in 2010, one third of China’s installed wind capacity is not connected to the grid.



China’s National Energy Administration claims it will prioritize connectivity over renewables growth in its upcoming five-year plan.

The NEA has made public its focus on strategic wind energy growth through more hands-on energy policy and management on the national level.

The key areas of connectivity, project approval, and balancing present vs. new investors will take center stage over the next five years of Chinese wind development, according to the NEA.

Although this is a China-specific renewables issue, the world at large will be severely affected by the decision and policy that takes place over the next five years regarding China’s cleantech industry.

In 2009, the World Resources Institute found that 70% of all of China’s energy came from coal, which is a huge contributor to climate change.

When the Kyoto Protocol was signed and ratified in China in 2002, the country was classified as "developing" and it did not have to adhere to the greenhouse gas reduction criteria.

Since China has overtaken America in emissions in recent years and is projected to grow enormously over the next five years, its energy mix of greenhouse gas contributors and renewables is crucial to the world’s development.

China has promised a 40-45 percent reduction in energy intensity by 2020, based on 2005 levels.

Yet there is strong criticism over whether this is attainable given China’s growth rates and continued dependence on coal.

ChinaWatch

Passive Homes Save Energy

It may be possible to heat your living space by hosting a dinner party. With cutting-edge, well-insulated “green” homes, you may not even need a furnace or boiler, just your body heat.

“It’s like living in a glass thermos,” says Dr. John Eckfeldt, a physician who built a passive home in bitter-cold Isabella, Minn. Eckfeldt notes the temperature inside remains comfortable even as he watches snow falling outside.

In these homes the windows never feel cold, nor do the concrete floors, even though they don’t have in-floor heating. The homes also are super quiet because of insulation.

The technology started in Europe, where thousands of such homes have been built. Now it’s starting to catch on in the United States as consumers seek to cut energy bills.

Passive homes don’t require expensive solar panels or wind turbines. Instead, they focus on old-tech building science that is capable of reducing energy use up to 90 percent.

Blast From Past?

These homes are different from passive solar homes of the 1970s – south-facing windows for heating, thick walls and roofs, as well as efficient appliances and lighting.

The secret today is in superior insulation and air sealing. A mechanical system brings in fresh air, and it is heated or cooled as needed.

“It’s growing exponentially,” says Tom DiGiovanni, who heads the Passive House Alliance, a nationwide nonprofit group established last year to promote the standard.

Proponents say the passive standard’s prime tenets – insulation and air sealing – also can be used by owners of traditional homes because windows are becoming more affordable and building codes are demanding greater efficiency.

“It could be mainstream in five years,” says Nate Kredich, vice president of residential market development for the private U.S. Green Building Council, which has its own “green” rating system. The group, comprised of community of leaders, is working to make green buildings available to everyone within a generation.

By The Numbers

Passive homes cost 6 percent to 12 percent more than other types of new homes, but they recoup their investment in lower utility bills in seven to 12 years, according to DiGiovanni.

“The biggest extra cost is the windows,” he says, noting U.S. companies only recently began making triple-pane types. California’s Serious Materials makes ultra-efficient dual-pane windows which some U.S. passive homes have used.

“It’s innately reasonable,” says architect David Peabody, who designed the first passive homes in Washington, D.C.

He says the extra cost was about 8 percent, but the annual utility bills for the 4,200-square-foot homes are projected to be about $750.

U.S. households spent an average of $2,639 on energy for homes that size in 2005, the most recent year for available data.

Home Designs Limited

Most passive homes have limited windows and a boxy shape. Homes with curves and larger footprints require extra insulation and sealing, adding cost. Huge curved windows with upscale finishes can cost $450 per square foot.

John Semmelhack, a passive house consultant from Charlottesville, Va., says the criteria are very stringent. This is especially true if the owner is trying to achieve the top rating from the U.S. Green Building Council.

Regardless of location, passive homes cannot have a heating or cooling load above 4,755 BTUs per square foot. This is about one-tenth that of homes built to current building codes.

Passive homes also must be airtight, with meticulous sealing of ducts, joints, and hairline cracks.

To avoid overheating, the house must have exterior shading, ventilation and a cooling system. Generally, only a small solar panel is needed to meet the requirements of a “zero energy home.”

The Green View

WMB believes passive energy homes may provide many opportunities for manufacturers and suppliers to meet consumer demands, from materials to design.

As energy costs – particularly those for heating fuel oil – continue to jump at alarming and unpredictable rates, the consumer market will benefit from growing availability of passive homes.

It’s time to think inside, not outside, the box!

TechMan

ChinaWatch: Sunny Economics

Welcome to ChinaWatch, WMB’s digest of news from the country with the world’s second largest economy. Whether we like it or not, China has a major impact on our financial health, so we keep tabs on what the big news is from our rival.


Driving Domestic Path

China's leadership is promising to steer the economy in a new direction in its blueprint for the next five years that would empower consumers and narrow a yawning wealth gap but require politically contentious reforms.

The latest Five-Year Plan calls for creating self-sustaining growth based on domestic consumption and reducing China's reliance on exports and investment.

That will require a cut in subsidies to state industries and curbs on local development plans that could provoke a backlash among some in the ruling Communist Party.

The leadership has said for years that China needs to alter a system Premier Wen Jiabao has declared “unbalanced, uncoordinated and unsustainable.’’

But they avoided major reforms until the global crisis wiped out millions of export-dependent factory jobs and drove home the danger of over reliance on trade.

“The road map is clear, but the extent to which the political will and power is sufficient remains to be seen,’’ says Alistair Thornton, China analyst for IHS Global Insight, in an interview with the Associated Press.

If carried out, the plan could drive a far-reaching transformation of the world's second-largest economy from low-cost factory into a major consumer market.

It would shift money from companies to households, which could narrow the gulf between a rich elite and fledgling middle class who have profited from economic reform and China's poor majority.

More consumer demand could help to boost imports, narrowing China's trade surplus with the United States and other major economies.

Soaring Solar Power

China, the world’s biggest electricity consumer, is trying to figure out how to capture a larger share of the solar-energy market without losing money, according to Bloomberg News.

The government will spend at least a year studying Europe’s system of paying above-market prices for solar power before deciding if there’s a better way to spur clean-energy plants across China, says Wu Dacheng, an adviser to national power regulators.

The delay has stalled projects planned on Chinese soil by developers such as U.S.-based First Solar Inc.

“We need to learn from European countries like Germany” that pay subsidized rates to spark solar-panel installations, says Wu, vice chairman of the Solar Photovoltaic Committee of China’s Renewable Energy Society.

Europe, which attracted more than $65 billion in solar plant investment in 2010, is providing lessons for China.

Germany, the largest panel market, together with Spain and France carried out four unscheduled subsidy cuts in 2010, trying to slow a torrent of projects by developers and speculators.

China’s wait-and-see strategy on projects is part of a broader industrial plan to take a leading global role in harnessing energy from the sun.

China is first focusing state support on its own equipment manufacturers. That helps them gain market share and cut prices, lowering the eventual cost of a nationwide solar construction program China plans for itself.

“China is definitely playing a longer game in solar,” says Daniel Guttmann, head of renewable energy strategy at the consulting firm PricewaterhouseCoopers in London. “It has done a lot to subsidize its manufacturers.”

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ChinaWatch: Solar, Euro, Partners

Welcome to ChinaWatch, WMB’s digest of news from the country with the world’s second largest economy. Click the links for more info.

No Sunny Move

Evergreen Solar, the third largest solar panel producer in the United States, is moving its production operations to China and laying off nearly 1,000 American workers because of high production costs in the States, officials say.

This comes as a surprise, especially because the company rose to the top so quickly after being funded by the Massachusetts’ government.

The part of Evergreen Solar moving to China is the company’s main production facility in Devons, MA. Evergreen Solar representatives say they are receiving major support from the Chinese government.

Solar panel production is only a small part of the whole U.S. energy production industry. But concerns about climate changes and energy deficits are affecting the industry, with renewable energy facilities (especially producers) on the rise.

Though the U.S. government supports producers in the renewable sector, the Chinese government is moving ahead by offering larger support. It’s estimated that more than 50% of the global production in renewable energy is based in China.

Embracing The Euro

Growing into its role as a global economic power, China is pledging to buy billions of dollars' worth of bonds in European governments to help restore confidence in the debt-ridden region, the Los Angeles Times reports.

The move is the latest evidence that the giant Asian nation is developing ties with strategically important trading partners and expanding its influence in areas where it has long played a minor role.

In what European media have dubbed a charm offensive, Chinese Vice Premier Li Keqiang was all smiles on a recent swing through the continent, assuring the Germans that their economy was complementary to China's and praising the Spanish as good friends.

He also dispensed plenty of largess, promising to aid the souring economies of Spain and Portugal — pledges that were seen as more than just goodwill.

If Beijing wants its economy to keep flourishing, China can't afford the collapse of the euro any more than the nations that use it. The European Union is China's biggest trading partner, and China is the EU's second-biggest export market.

Global Partnership Awaits

U.S. Treasury Secretary Timothy Geithner says China is expected to be the United States' largest trading partner 10 years down the line, adding that America is benefiting because of the economic ties between the two nations.

“It's very important to understand that this is a relationship with very substantial economic benefits to the United States,’’ Xinhua quoted Geithner, as saying.

He also said that in 2010, American exports to China exceeded the 100 billion dollars mark.

“They are growing at about twice the pace of our exports to the rest of the world,’’ Geithner says. “What that means is our exports to China will double in the next four to five years, and that means China is likely to become our largest trading partner sometime roughly 10 years from today.”

Currently, both the countries are each other's second largest trading partners.

ChinaWatch: Homes To Footwear

Welcome to ChinaWatch, WMB’s digest of news from the country with the world’s second largest economy. Click the links for more info.

They Want Homes

China says land sales shot up 70 percent last year as the country's land and resources minister warned of social unrest among frustrated Chinese who can't afford to buy a home.

Land and resources minister Xu Shaoshi says 2.7 trillion yuan ($470 billion) was spent on land transactions last year. His comments were posted on the ministry's website, according to Bloomberg Businessweek.

He says the land transactions had resulted in uneven benefits and social conflicts.

Authorities have been trying to cool China's property market by discouraging investment buying that has helped drive prices out of reach for many city dwellers.

Largest Solar Roof

China Sunergy (CSUN) has secured a 7 MW solar module supply contract with CEEG (Nanjing) Solar Energy Research Institute, for the Nanjing South Railway Station solar roof project.

It's the world's largest stand-alone building integrated photovoltaic (BIPV) project for one structure and will be one of the most energy-efficient public buildings in China, Reuters reports.

“China Sunergy is delighted to be the module supplier for the largest stand-alone BIPV project in the world,” says Stephen Zhifang Cai, CEO of China Sunergy.

“We are very happy to see our high-quality solar panels being used in this landmark project, which will certainly raise public awareness and appreciation of renewable energy. We look forward to playing an increasingly bigger role in building China's eco-friendly projects.”

Longest Sea Bridge

At 26.4 miles long, the Qingdao Haiwan Bridge would easily cross the English Channel and is almost three miles longer than the previous record-holder, the Lake Pontchartrain Causeway in the state of Louisiana.

The vast structure links the center of the booming port city of Qingdao in eastern China's Shandong Province with the suburb of Huangdao, spanning the wide blue waters of Jiaozhou Bay.

Built in just four years, the sheer scale of the bridge reveals the advances made by Chinese engineers in recent years, The Telegraph reports.

No longer dependant on western expertise for such sophisticated projects, China's six-lane road bridge is supported by more than 5,200 columns and was designed by the Shandong Gausu Group.

When it opens to traffic later this year, the bridge is expected to carry over 30,000 cars a day and will cut the commute between the city of Qingdao and the sprawling suburb of Huangdao by between 20 and 30 minutes.

At least 10,000 workers toiled in two teams around the clock to build the bridge, which was constructed from opposite ends and recently connected in the middle.

Footing The Bill

Phoenix Suns star Steve Nash is the latest in a growing list of NBA superstars to shed ties to global footwear giants in favor of more obscure Chinese brands, Portland Business Journal reports.

Footwear site Counterkicks.com, among others, reports Nash is leaving Washington County-based Nike Inc. after 15 years to join up with Luyou, a Chinese brand whose slogan “I Think I Can” seems like an ambivalent response to Nike’s “Just Do It.”

Nash follows Boston Celtics forward Kevin Garnett, who in August swapped his Adidas kicks for a pair made by Hong Kong-based ANTA Sports Ltd., making him the most high-profile Chinese defection to date.

Revved Over China's 3D Bus

You have to hand it to the Chinese; they're a nation full of surprises, the latest being a 3D bus that straddles cars, in theory reducing pollution and traffic congestion. Imagine the impact on anyone living or commuting in urban areas.

The Shenzhen Huashi Future Parking Equipment Co. is developing a "3D Express Coach" (also known as a "three-dimensional fast bus").

The bus, operating like a moving tunnel through which cars travel, represents a cross between a futuristic sci-fi flick and “Harry Potter and the Prisoner of Azkaban” – in particular the scene where Harry’s bus compacts to squeeze into the space between vehicles.

And this is the same China that has surpassed the United States as the world leader in energy consumption and greenhouse gas emissions? The innovation allows cars less than 2 meters tall to travel underneath the upper level of the vehicle, which will be carrying passengers.

According to China Hush, the 6-meter-wide 3D Express Coach will be powered by a combination of electricity and solar energy, and will be able to travel up to 60 kilometers per hour and carry 1,200 to 1,400 passengers.

The first 115 miles of track is set for construction in Beijing's Mentougou district starting in late 2010. Song Youzhou, chairman of the 3D bus company, boasts it will take only a year and 500 million yuan (around $73 million) to build the futuristic transportation system.

As China Hush notes, a big concern at the top of an urban transportation planner’s mind is how to speed traffic. Putting more buses on the road will jam the roads even worse and deteriorate the air; building more subway is costly and time consuming.


The straddling bus, first exhibited at the 13th Beijing International High-tech Expo in May, represents a cheaper, greener and faster alternative. It is completely powered by municipal electricity and solar energy, and achieves "zero toxic gas throughout the process," according to The Urban Times.

Ultrasonic waves from the end of the bus will keep high-profile vehicles or trucks from entering the tunnel. The bus will use laser rays to scan, so cars which get too close to the passage will activate a bus alarm, the Times reports.

Inside the bus, turn lights will alert vehicles when the bus intends to change direction. Also, a radar scanning system will be embedded on the bus walls to warn cars from getting too close to the bus wheels.

China receives much criticism (and rightly so) in the United States and elsewhere for its lack of human rights and export of products containing toxic-hazardous materials, but the straddling bus is a smart drive toward a global solution.


Imagine such a vehicle operating in New York City, Washington, Chicago and Los Angeles. Instead of widening highways, which typically exceed capacity after the ribbon is cut, why can’t America develop innovative transportation technology?

China does not hold a monopoly on brainpower; we have many bright and talented professionals in this country (the land that put a human on the moon in 1969, perhaps mankind’s ultimate achievement to date).

America’s best days don’t have to be behind it (stealing from President Ronald Reagan) if we choose to use forward thinking, entrepreneurial will and financial muscle to develop solutions for the planet.

Instead of lamenting how China is vying against us for world domination (trade and energy), we should steal a page from our Cold War past involving the old Soviet Union and compete directly, political systems aside.

Anyone who appreciates the history of the United States knows we do our best when Americans are faced with competitive challenges. It’s how inventions result and consumers benefit.


We should be looking to see if we can do better than the Chinese version of the straddling bus. If we can put someone on the moon, about 239,000 miles away, we can certainly get a better handle on problems here on Earth.

President Reagan had it right in his first inaugural address in 1981:

"It is time for us to realize that we're too great a nation to limit ourselves to small dreams. We're not, as some would have us believe, doomed to an inevitable decline. I do not believe in a fate that will fall on us no matter what we do. I do believe in a fate that will fall on us if we do nothing. So, with all the creative energy at our command, let us begin an era of national renewal."

As for me, I practice what I preach at writenowworks.com.

Riding Energy’s Next Wave

New worldwide companies are being formed in a quest to learn how to capture the power of oceans and seas.

Wave power is the transport of energy by ocean surface waves, and the capture of that energy to do useful work – for example, for electricity generation, water desalination, or the pumping of water into reservoirs, according to Wikipedia.

The world’s first commercial wave energy farm was launched in 2008 three miles off the north coast of Portugal. Agucadoura Wave Park consists of three devises which can each produce 750 kilowatt hours of power. While this state-of-the-art wave farm may be considered a novelty for now, we at WMB don’t think that will be the case for long.

Waves are the result of wind blowing over the surface of the ocean. In many areas of the world, the wind blows with consistency and enough force to provide continuous waves. There is considerable energy in ocean waves. In turn, wave power devices extract energy directly from the surface motion of ocean waves or from pressure fluctuations below the surface.

About 70 percent of the earth is covered with water, and this water is the largest single repository of solar energy. One only need watch waves crashing into a rocky shore to appreciate the potential energy and force that is produced.

If just 2 percent of the ocean’s energy were converted to electricity, it would meet the entire world's power needs, according to the Northwest National Marine Renewable Energy Center in Washington state.

Even better, waves are predictable unlike solar power; this makes grid requirement more practical. Since greater numbers of people are living within 50 miles of oceans, power would not need to be transported long distances.

Wave energy has lagged solar and wind energy development mainly because of technical reasons. But now many of these problems have been solved. Oceans can be unforgiving, hostile and difficult to control, and salt water is corrosive. Creating devices that can withstand these conditions has been a challenge for years.

Most government money and private and industrial development were instead funneled to solar and wind power development. Big oil and gas companies have in recent years devised technologies adaptable to deeper and rougher waters. Even the BP oil disaster has taught engineers how to better understand deep water currents and waves.

Wave energy, more so than tidal energy, offers readily accessible ocean power. Tidal energy uses the currents in the sea, and wave energy draws power from the rise and fall of waves on the surface.

The Electric Power Research Institute, with offices and laboratories in California, North Carolina and Tennessee, conservatively estimates wave energy could provide about 6 percent of America’s electric needs, while tidal power could produce another 3 percent. To put this into perspective, hydroelectric power currently produces 6 percent of our power.

Wave devices come in a variety of designs, but all work to transform energy from the rolling motion of waves of water to electricity. Usually the aquatic motion is converted into mechanical energy that runs a turbine or generator.

Machines used in Portugal were designed by Pelamis Wave Power Co. of Scotland. Worldwide, there about 100 competing designs for wave and tidal converters. But as this industry matures, it will be necessary to weed out designs that are either too costly or inefficient.

Other designs include Aquamarine Power's Oyster and perhaps the most unusual wave energy converter, the Anaconda.
Developed by Great Britain’s Checkmate Seaenergy for use in deeper waters about 5 miles from shore, the Anaconda is a long sealed tube filled with water. It is attached to the seabed and pointed at incoming waves.

As each wave rolls over the tube, it creates and pushes a growing bulge within the length of the tube and builds pressure that operates a turbine at the other end. Such a devise may be 23 feet in diameter and 600 feet in length, and capable of generating 1 MW of power. The devise is constructed of a type of rubber and can survive years of use in seawater.

Costs for marine power are high but may drop rapidly as capacity and demand grow. Manufacturers predict this technology will produce power at 5 cents to 10 cents per kilowatt hour. But marine energy will need government support in the early stages, just like solar and wind-turbine. Wave energy is currently eligible for a 1.1 cent per kwh tax credit.

Pelamis officials say, “No new energy is competitive right out of the box,’’ but they claim that each doubling of capacity could bring down costs by 15 to 20 percent.

At WMB, we think government incentives could encourage private investors to back these new marine technologies because they help ensure the likelihood of return on investment.

K.P. Yue, a professor of ocean engineering at MIT, says, “It’s not ready for prime time – it needs about five to 10 years of development. But it could have a huge impact in 20 years.”

This post is by TechMan, WMB co-author who blogs about trends, issues and ideas affecting business, industry, technology and consumers.

Sunny Outlook For Solar Power

The best things in life are free and that’s certainly true when it comes to solar energy and the potential benefits it offers to the world, in particular the United States, one of the largest energy consumers on the planet.

President Obama’s recent announcement that the government will award $2 billion for new solar plants comes as much-needed welcome news amid all the political uproar about out-of-control government spending. If this particular spending of taxpayer money works as planned, it will create thousands of new jobs and increase the use of renewable energy sources.

Two companies will receive money from the president's $862 billion economic stimulus. Abengoa Solar will build one of the world's largest solar plants in Arizona and create 1,600 construction jobs; Abound Solar is building plants in Colorado and Indiana.

The Obama administration says those projects will create more than 2,000 construction jobs and 1,500 permanent jobs, according to the Associated Press.

Our politicians have jawed about ending our dependence on foreign oil since 1973-74, when the OPEC (Organization of Petroleum Exporting Countries) embargo jacked prices and created a shortage that led, among other things, to gasoline rationing at the pumps. Some folks may remember the odd/even license plate system for vehicle refueling?

While technology in all areas, including solar, has continued to evolve since the 1970s, our attitudes remain locked in the thinking of the previous century when it comes to the use of fossil fuels. That’s dangerous for America because many of our enemies sit on the largest oil supplies.

The growing interest in electric hybrid cars and windmill farms are good transitional steps that can be complemented by our country’s investment in widespread development of solar power. Individually, these things are a drop in the bucket but combined they could really reduce our use of oil (and minimize the need for more offshore drilling rigs?).

Abound Solar, a manufacturer of low-cost, cadmium telluride, thin-film photovoltaic solar modules, said in a news release that it would use the U.S. Department of Energy’s conditional commitment to the company for a $400 million, seven-year loan guarantee to expand its solar module manufacturing capabilities.

Colorado-based Abound Solar will use the DOE funds to increase production of its thin-film photovoltaic modules at an existing manufacturing plant and to establish a second manufacturing plant that will create more than 1,200 high-tech jobs in Colorado and Indiana, while “driving down the cost of solar power for its United States and international customers,” company officials say.

Abound Solar, which has raised about $200 million in venture capital and private equity since its founding in 2007, built its first production line in Longmont, Colo., and began commercial operations. Abound anticipates using $100 million of the U.S. loan proceeds to increase the capacity of its existing Longmont facility to 200 megawatts per year by the end of 2011.

The company plans to invest the balance of the guaranteed loan to support construction of a larger manufacturing facility in Tipton, Ind. When both plants are complete, Abound Solar will be able to produce more than 840 megawatts of solar modules annually.

“The DOE loan guarantee program is essential to helping companies like Abound Solar scale-up innovations in photovoltaic manufacturing that are critical to reducing the cost of alternative energy,” says Tom Tiller, Abound Solar president and CEO. “When Abound opened its first manufacturing plant in 2009, we committed to providing high-performing, lower-cost modules to our customers; DOE is helping us keep that promise. The proceeds of this loan will build on the momentum we have already established and confidently expand our operations,’’ Tiller says.

The DOE has offered a conditional commitment for a $1.45 billion loan guarantee to Abengoa Solar, headquartered in Denver. The loan will support the construction and start-up of Solana, a 250-net megawatt concentrating solar power plant in Arizona, a facility the company claims to be the largest of its type in the world.

Santiago Seage, CEO of Abengoa Solar, says “this conditional guarantee could allow us to start construction of Solana this year.”

Vice President Kate Maracas says “the building of Solana will also create between 1,600-1,700 new construction jobs, and operation of the plant will add another 85 permanent jobs. These construction and operating jobs will create a few thousand additional indirect jobs. Taken together, 98% of the jobs created by Solana will be American jobs – primarily from Arizona, and a smaller portion from neighboring states.”

There’s no doubt solar energy projects are, pardon the pun, basking in the sun these days. Take for example SolarWorld’s pitch by Larry Hagman, who played Texas oil tycoon J.R. Ewing in the hit 1970s shows Dallas and also starred in I Dream of Jeannie in the 1960s.

Hagman is calling for people to embrace solar technology as part of a new "Shine, Baby, Shine" ad campaign for the Oregon-based solar panel manufacturer which employs 2,700.

"In the past, it was always about the oil. The oil was flowing and so was money. I quit years ago but I'm still in the energy business. There's always a better alternative. Shine, baby, shine!" Hagman, 78, says in a commercial posted on the SolarWorld website, before cackling happily.

The ad shows him looking at a portrait of himself as Ewing, exiting his hillside estate in Ojai, Calif., where he lives with wife Maj, and looking up at a red roof containing a solar panel.

Hagman is a longtime advocate of renewable energy and owns one of the largest U.S. residential solar panel systems, which cost him $750,000 when he bought it in 2003. He says they reduced his annual power bill from $37,000 to $13 (no typo).

Commercials aside, solar energy offers U.S. consumers and businesses a reliable, cost-effective alternative to fossil fuels. Saving the planet and sparing your wallet: what a powerful combination!

As for me, I practice what I preach at writenowworks.com.

Where Tech Meets Green In Geneva

Spring is fast approaching with the arrival of the 80th annual Geneva International Motor Show which focuses on new design concepts and evolving technology.

The show, in the halls of the Geneva Palexo from now through Sunday, is one of the oldest in the world. Organizers expect it will draw between 650,000 and 700,000 visitors by conclusion of the 11-day event.

It offers some 100 World and European premieres in the private vehicle sector, with a distinct trend toward more ecologically-friendly automobiles.

For example, there are 16 premiere automobiles representing electric or alternately- powered technology. There is a Green Pavilion where “concept” cars reflect visions of the future. Suppliers, equipment specialists, and other exhibitors also are offering some 40 premieres.

Luc Argand, president of the Geneva International Motor Show, said the event provides visitors and the media with access to all major automobile manufacturers from throughout the world. “This is an important sign of confidence following the financial crisis that has impacted the global economy,” he said.

Organizers say “250 exhibitors from 30 countries” will be present, and they will cover the 78,000 square meters of available exhibition space.

Five exhibitors are presenting for the first time, including Bufori Motor Car Co. from Malaysia, and there is return of the venerable maque Hispano-Suiza.

Several of the previewed World Premieres included the Alfa Romeo Giulietta, the Audi 1, the Mini Countryman, the new Opel Meriva, the Porsche Cayenne, the Renault Wind, and the new generation of Sharan and Touareg from VW. Bentley, Citroen, Fiat, Lancia, Peugeot, and Renault have been present for all 80 editions of the Geneva exhibition.



GREEN TECH DRIVES NEW DESIGNS

The Green Pavilion 2010 presents a great diversity of information, technologies, ideas, projects, and concepts. The selection includes a scientific study of transportation via a solar powered vehicle slated to make a round-the-world voyage.

The pavilion also showcases potential directions that the automobile will develop in the future. Fuel cells, combined hybrid and natural gas vehicles, electric, and other concepts are presented. Materials and material design also are part of the big picture this week in Geneva.

Some highlights of the Green Pavilion 2010 include recharging stations of the future. ICARE is demonstrating stations by taking a trip around the world by incorporating solar and wind energy. ICARE will present a spectacular vehicle, which will be used by Marc Muller and his team, to take a voyage of 40,000 kilometers in one year beginning next May.

DOK ING has developed the XD, the first Croatian concept three-seat electric vehicle. Not only is it very attractive with its “gull-wing” doors, but it also is highly efficient with a range of 200-250 kilometers.

A start-up group called iVolt is presenting its concept car called Tazzari-Zero. The Italian company claims the car has an aluminum frame and is exceptionally strong and rigid. The car only weighs 550 kilograms and incorporates a lithium-iron battery. The car is designed for urban commutes and provides highly efficient transportation.

General Motors is presenting its most modern energy efficient fuel cell in the Opel model called HydroGen4. This automobile creates a new standard for fuel cells in the industry and uses hydrogen as a fuel source. Show visitors can test drive the car.

The BMW group is offering a feasibility model for electric powered transportation. The team from Vattenfall is presenting excerpts of the largest worldwide scientific study of electric powered transportation ever. The concept car is called the Mini E.

Students from the State University of Baden-Wurttemberg are presenting an all-electric car concept car called ELMAR. This design uses an electric motor on each wheel and is very lightweight.

Kia is showing its Forte LPI Hybrid. This design incorporates the advantages of directly- injected liquefied natural gas with a hybrid propulsion system. The vehicle on the floor shows how a four-door sedan uses wrap-around design incorporating the headlights and taillight assemblies in that configuration.

The Quaranta from Italdesign Giugiaro uses hybrid technology combined with solar power. This car, designed for longer distances beyond urban driving, is touted for its driving pleasure.

A Swiss company called TEXX is exhibiting its battery management system. The company claims the recharging system is the most efficient in the world.

Another Swiss company called ITU is presenting Green GT, the first electric racing car. Designed by three Swiss visionaries, it uses a carbon fiber chassis. The Quaranta sports car also is set for racing.


Although many of the vehicles presented at Geneva show do not meet U.S. standards, there are many technology concepts that carry over to the U.S. market.

We think it’s essential for our government to work in concert with our manufacturers to help compete in this highly competitive market, where technology and ecology intersect.

This posting is courtesy of TechMan, a contributor who tracks trends in business, industry and technology.