A Portugese Energy Company knows about US Growth

An article in Reuters earlier this week noted a Portugese energy company that knows first hand where energy growth is occurring in the United States. It may be surprising to the current White House, but not the market, the growth is not in the coal energy sector.  Per Timothy Gardner’s article “EDP bullish on US renewable power despite Trump’s support for coal” in Reuters, the following quote is compelling.

“‘U.S. renewables represent the growth engine of our company,’ António Mexia, who since 2006 has run the power utility EDP (EDP.LS), one of Portugal’s biggest companies, said in an interview on Tuesday.

U.S. wind and solar power projects represented 65 percent of new investments last year at EDP’s renewables arm EDPR (EDPR.LS), and are expected to continue at that rate in 2018 and in 2019, Mexia said. EDPR operates renewable projects in 11 other countries in Europe and the Americas.”

This is not inconsistent with other measures in America as solar and wind energy growth have risen with the continual fall in pricing. And, it is showing up in recurring double digit job growth in solar and wind energy.

I have cited the significant increase in wind energy across our plains states, but this is following the forecast of oil tycoon T. Boone Pickens, who appeared on “60 Minutes” more than five years ago. He noted that natural gas expansion is a bridge to wind energy. It is just buying us time to get the infrastructure ready and prices to get more effective. It should be noted that several states get over 10% of their electricity from wind energy, with Iowa  at just under 33% leading in percentage of total and Texas at 16% producing the most wind energy due to its size.

In California, North Carolina, Florida and other southern states in the east and west, solar energy is growing significantly. California, by itself, would be one if the most prolific solar countries. And, Tesla is more of a battery storage company than car company. Elon Musk went live with a massive battery storage site to help a French company power southern Australia with solar energy. It truly is a global industry, so seeing a Portugese company invest here in the US is not unusual.

The growth in energy jobs are in renewables. It would be nice if this was more publicly recognized by all of our elected leaders, not just the ones who are not funded by the fossil fuel industry.

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Mr. President, listen to the Department of Defense and CIA

One of the hardest jobs of any employee is managing up when they have a boss who is not very good at his or her role. Business is littered with stories of high performing individuals who fail miserably as managers. The President is not an exception as he has always been a better salesperson than manager as reported by financial reporters and biographers.

The folks working beneath him are doing their darnedest to keep him between the white lines and on message. Too often, he derails an effort by tweeting or being less than truthful or aware of the issues. Yet, there are two consistent messages that are being ignored by the boss from two important groups, which are making us less safe and secure.

First, the Department of Defense reiterated its recurring message that climate change is a key threat to national security due to destabilization and impact on readiness. As reported in Reuters yesterday, the DoD said 1,700 of its bases (about half) are threatened by wild weather patterns due to climate change. Per Reuters, “‘Changes in climate can potentially shape the environment in which we operate and the missions we are required to do,’ said the DoD in a report accompanying the survey.”

Yet, what is the President doing about? He is pulling the US out of the Paris Climate Change Accord, he has promoted more fossil fuel through words and actions, he has naysayed the climate science and his EPA director has removed climate change intellectual capital from the websites while firing, driving out or repositioning climate scientists.

Second, Mike Pompeo, the CIA director, said on Sunday, not only is there no question the Russians influenced our recent election, but he is certain they will do it again this fall. Yet, what is the President doing about it?

Although our Congress overwhelmingly voted on sanctions on Russia over the summer, the President said this week he would not impose those sanctions saying the threat is enough. And, in response to a request by Congress on the people who might be sanctioned, a cut and paste list was provided by the Treasury department. The term for this is called “phoning it in.” This on top of the President denying the intelligence, lying about his involvement, changing his stories multiple times and trying to undermine the efforts of the FBI and Special Prosecutor. All while the Russians continue their efforts.

These are threats to our national security and democracy, but we are failing to act. I am not alone in this view, but the Russians      have attacked our country though social media and cyber warfare and our Nero fiddles. His own DoD says climate change is a threat, but Nero’s response is to enable the threat, not circumvent it.

So, as the President fails to act, what are we going to do about it?

 

 

The weather outside is frightful

The weather outside is frightful. Inside it’s so delightful. And, since we’ve no place to go, let it snow, let it snow, let is snow.

Please think good thoughts for those who are exposed to the severe cold and wintry precipitation. May they stay warm and travel safely if they must. We will be in the teens here over several nights, but our Minnesota based friend, Hugh, said he awoke to 19 below, Fahrenheit. Yikes!

I also want to emphasize the word “weather.” The US President either purposefully or unknowingly confused climate with weather. If purposeful, his intent was to play up to the “climate change is hoax” crowd among his followers. Unfortunately, this becomes an annual confusion effort which is either cynical of filled with malintent. Someone needs to tell the President that it is summer time in the Southern Hemisphere and 2017 set a new record for average heat around the globe. A few days of frigid weather in December north of the equator and June south of the equator will not alter that fact.

It would be nice if the President did not forsake the US global standing and stay engaged as a leader on climate change efforts. We have some of the leading climate scientists and data in the world. We are also one of the two biggest carbon emitters. Fortunately, other state, city and business leaders will keep the US moving forward leveraging the many good efforts.

Have a wonderful 2018. Let’s move this ball forward. Our children and their children need us to.

Side of the Angels

A CFO once said during a meeting I was involved with “at least we are on the side of the Angels.” He was referring to a decision a Committee had made which was a conservative reading of the law. If they were wrong at least they would not be at risk.

I use this example as many decisions are made these days that run counter to what experts using data and analytics might say should be done. A good example is happening as of this writing in the US Congress. A law is being passed which goes against what several nonpartisan economic and budget organizations are saying will happen. It is also being sold as more than it is, which is a windfall for wealthy people and investors. These lawmakers are not on the side of the Angels on this issue.

Earlier this year, the President of the United States decided to pull the US out of the Paris Climate Change Accord. As a result, our country was not invited to a conference last week to plan ahead. We are the lone country in the world that will not be in the accord. Ironically, the accord permitted flexibility to reshape how we comply, so leaving was merely a political statement. Being a lone wolf on one of the two most important topics in the world does not leave us on the side of the Angels.

We must do our homework and make decisions based on data, analytics and nonpartisan opinions of experts. Making decisions off rhetoric and lobbyists’ wishes   tends not to be on the side of the Angels.

 

 

Need more to meet in the middle

The overarching theme of the book “Rancher, Farmer, Fisherman” by Miriam Horn is to accomplish lasting, impactful solutions (in this case with climate change and environmental concerns) we need to work with folks in the middle. In essence, the folks in the extremes are too strident and reluctant to compromise.

A good example comes from the Montana rancher as he combats climate change and environmental degradation caused by fracking for natural gas. He works with folks who will address the environmental issues, but permit him and his family to make a living ranching. He notes the fracking companies paint a picture that is far rosier than it is, while some extreme environmentalists want everything to stop and do nothing with the land. At personal risk, he built a coalition of ranchers, environmentalists and government officials who were willing to follow his lead to preserve the environment while permitting the ranchers to do their thing.

The Kansas farmer speaks to working in concert with the land and learning and sharing best practices with other area farmers and the agro-economics people at nearby Kansaa State University. Farmers want to maximize a sustainable yield on their crops, but climate change and water concerns increase the challenges to do so. He emphasizes growing what grows naturally in the area. There is a reason wheat and alfalfa are cash crops in Kansas. He notes the farm to table concept is not necessarily ideal – it would be a waste of water and land to try to grow everything there. As for climate change, they work with legislators to protect the water resources, but have to stop short of using that term with their representatives. They gain collaboration by speaking to what is happening, not identifying its lead cause.

The Louisiana based river man moves frieight up and down the Mississippi River. He understands the importance of experienced teams who know the river going both ways, with high, low or medium water levels. He has seen the significant dissipation of the wetlands in the Bayou which are causing huge problems to many, Engineers tried to outsmart the river and failed. In fairly dramatic fashion, the Gulf of Mexico is absorbing land due to rising sea levels and fewer buffers, So, they are working with scientists, businesses, and even the petroleum industry to slowly rebuild the Bayou.

It should be noted working in collaboration is how business and government work best. Yet, collaboration is hard work. For those who block the consideration of solutions, they need to be sidelined. In our toxic tribal political environment, we must remember each side does not own all the good ideas and both sides own some bad ones. Let’s follow the lead of these folks who get their hands dirty, understand what is happening and work together.

Drawdown – a detailed guide to reducing climate impact

Paul Hawken is an optimist about battling our climate change crisis. He is also active in planning to do something about it. But, who is he? Hawken is an author, advocate and businessman who is the Executive Director of Project Drawdown, based his book “Drawdown: The Most Comprehensive Plan Ever Priposed to Reverse Global Warming.”

The book is based on the concept of drawing down the amount of carbon that is getting dangerously present in our atmosphere and warming the planet. It summarizes 100 solutions noting their cost, long term savings and estimated impact. Project Drawdown has an impressive Board of Directiors and research staff offering a seriousness of purpose.

Rather than list all 100, let me note the top ten solutions, which are interesting and makes one think holistically. And, some of these have small price tags.

1. Refrigeration Management: While the hydrocarbons that were hurting the ozone were banned, their replacement (HFCs) is warming our planet, much of it released in the last few years of life of the refrigerator. There is a plan to phase out HFCs from new refrigerators. It is also key to decommission old refrigerators earlier to prevent the greater release.

2. Offshore Wind Turbines: With the heavy ocean breezes, the offshore turbines have a huge upside on savings and impact. As with onshore wind energy, the cost has dramatically declined and wind energy is ready to replace even more fossil fuel energy sourcing. Offshore wind energy is being used significantly by other countries, with the first US development opening last December off Rhode Island.

3. Reduced Food Waste: Of all the issues, with relative little cost, we can make a huge dent in emissions from unused, rotting food. Between supermarkets, restaurants and homes, this wastage could be minimized with some concerted efforts which would not compromise taste. Better labeling on best-by dates, using imperfect looking food, better food planning at home, better gleaning of unpacked crops, using local produce more, etc. would produce dividends.

4. Plant Rich Diet: If cows were a country, they would be third largest abuser of the climate change impact. By shifting to more plant rich diets, we can reduce the amount of emissions leaked into the atmosphere and improve our own health.

5. Tropical Forests: We have greatly reduced our carbon eating forests, which has changed the equation dramatically. The planet used to be covered 12% by tropical forests, but it has declined to 5%. By replenishing tropical forests, the trees can have a positive impact on the environment and absorb more carbon.

6. Educating Girls: I have been an advocate of this for civil rights and economics, but it has a significant impact on climate. Hawken notes through education, girls can enter womanhood on their own terms. Now, too many girls are married at very young ages and never have a chance to consider a career. The younger they are married, the more children they have. Also, more educated women, means more intellectual capital to solve problems.

7. Family Planning: This goes hand in hand with the education of women. Larger family size is highly correlated with increased poverty. It is also highly correlated with a larger carbon footprint. Our planet also does not have unlimited resources, so we need to use what we have more efficaciously. If all people consume like the average North American, we have 2X too many people already.

8. Solar Farms: The cost of solar has dropped dramatically and jobs are growing  at an annual double digit rate for the past several years. Solar farms are much cheaper to build than a power plant and will continue their growth rate as battery storage improves.

9. Silvopasture: What does this mean? It is an ancient practice of integrating trees and pastures for crops and livestock. The symbiosis of the two better controls carbon absorption in a sustainable way.

10. Rooftop Solar: Putting solar panels on rooftops scares utility companies as it changes their model. Solar energy need not be done only through big projects to be effective. It can be very decentralized, Utilities are pushing back in several states to buy surplus electricity at a lower rate than they sell it when you need it at night. As battery storage improves, solar power will be even more integrated and expansive.

Hawken says we need to be alarmed by what is happening by climate change, but we should plan to act and then act. While discouraged by the US pulling out of the Paris Climate Change Accord, he said the positive is far more Americans are aware of climate change and cities, states and businesses are acting in lieu of the void caused by the federal government.

I have been encouraged by this renewed vigor in addressing climate change. There are many good things occurring in the US and abroad. We can no longer wait and should celebrate, focus and leverage these solutions.

 

 

Climate of Hope

One of the positives of the US President pulling out of the Paris Climate Change Accord is it has galvanized the many who see the need to act to save our planet. Coupling the US exit with the President placing climate change deniers and fossil fuel supporters in key cabinet roles, he has placed the US government at the kids table, while the adults talk about solving the world’s problems.

Fortunately, even the President’s actions cannot stop the momentum as a tipping point on renewable energy and other efforts have been reached. As reported in the book “Climate of Hope,” by former New York City Mayor Michael Bloomberg and former Executive Director of the Sierra Club Carl Pope, cities, businesses and citizens have been leading the way. This is important as cities are significant contributors to climate change and can therefore make a huge dent in ameliorating its effect. And, they are sharing their successes formally and informally.

Some of these efforts include:

– Restoring and renovating older buildings into green buildings. Bloomberg touts the renovation of the 1931 built Empire State as a key example.

– Building new structures with an even greener footprint. In India they deploy white rooftops to reflect away the sun to minimize cooling costs, e.g,

– Building more pedestrian areas which provide safer and eco-friendly access to shops, restaurants and businesses. These car free zones actually are part of a solution to reroute traffic to reduce carbon polluting stoppage.

– Building with buffers to allow nature to do its jobs to absorb the pounding of the ocean, since,  so many large cities are coastal cities with some below sea level. We should use nature to provide defenses that stand the test of time.

– Developing master traffic plans embracing car sharing, ride sharing, bike sharing, pedestrian pathways, electric vehicles from buses to taxis, and the elegant use of mass transit based on capital needs and restrictions. Bloomberg is big on measuring things, so installing GPS in New York taxis allowed them to measure success and make modifications to their plans as executed.

– Planting more carbon saving trees in cities and other areas, as well as using other plants such as mangroves in coastal areas as they suck carbon out of the air.

– Conserving food and reducing wastage. We waste huge amounts of food, both before and after it is cooked. Imperfect fruits and vegetables go straight to the dumps unless concentrated efforts prevent it and guide distribution to other users. Buying local saves on transportation costs and emissions, as well.

– Challenging manufacturers for efficient production and distribution. For example, a significant amount of wood goes to pallets that are tossed after one use. Look to more durable pallets that can be reused. Plus, the US does an excellent job of distributing products by rail and can do even better, as the rest of the world improves their efforts. These transmodal distribution centers that marry the efforts of ships, planes, trains and trucks provide huge efficiences and enhance trade.

– Dissuading the building of new coal plants. Active efforts have reduced coal from over 53% market share in 1990 to 30% market share of energy in 2016. Market forces are reducing this further as natural gas became cheaper and renewable energy cost fell to become more on par with coal. If new coal plants must be built, do it in concert with retiring older, less efficient plants.

– Making investment funds available to pay for upfront costs for renewable energy in countries that have fewer capital funding sources. India could do even more with available funding, especially as they electrify more of the country.

The great news is these things are happening. And, they are being shared. Please read this book. It is brief and optimistic. Also, watch the soon to be released sequel to Al Gore’s “An Inconvenient Truth.” Then spread the news about what is happening.

To be frank, these actions are positive and smart irrespective of one’s stance on climate change. And, a final note from Bloomberg is the millennials are paying attention. They want to work in places that are doing their part to fight climate change. Think about that as you plan.