Watt Coms and Clean Tech
March 14th, 2007 by Vihar Sheth | Posted in Corporations, Energy, Responsibility, Sustainability, TechnologyI came across a great article today entitled, “Start-up fervor shifts to energy in Silicon Valley“. In it, Matt Richtel of the New York Times discusses how “Silicon Valley’s dot-com era may be giving way to the watt-com era.” Hopefully not in all ways of course, as I’d like the new “watt com” era to last longer than a few years. Some of the main points from the article:
“Out of the ashes of the Internet bust, many technology veterans have regrouped and found a new mission in alternative energy: developing wind power, solar panels, ethanol plants and hydrogen-powered cars.”
“The best and the brightest from leading business schools are pelting energy start-ups with resumes. And, of course, there are entrepreneurs from all backgrounds–but especially former dot-commers–who express a sense of wonder and purpose at the thought of transforming the $1 trillion domestic energy market while saving the planet.”
Is this all overblown crap like most of the tech boom in the late nineties? According to George Basile, who has a doctorate in biophysics from the University of California, Berkeley and specializes in energy issues, “There are real business models and real products to be sold–established markets and growing economics”. Woo hoo.
How’s it going so far?
“In the first three quarters of 2006, venture capital firms put $474 million into a broad range of Silicon Valley start-ups in energy storage, generation and efficiency, according to Cleantech Venture Network, an industry trade group. Energy was by far the fastest-growing area of interest, and the amount was on par with what was put into telecommunications and biotechnology. Yet the amount of money involved is still relatively small compared with the boom years. Over all, venture funding last year was still less than a third of the nearly $34 billion venture capitalists invested in the region in 2000, the peak of the bubble, according to the Center for the Continuing Study of the California Economy, based in Palo Alto.”
The difference here is motivation. Sure people want to make a buck, but there’s something else at work:
‘Apart from the profit motive, many here say they are driven by more unselfish concerns: cleaning up the atmosphere and creating energy independence for the United States. One of the phrases heard most often in the industry is: “Do well by doing good.” Al Gore, with his warnings of global warming, has been a Valley darling of late.’
Everyone needs energy to do everything. If Silicon Valley can be the hub of our ideas on a sustainable energy future than great. If not, no worries. I’m optimistic people everywhere are working their butts off to bring the U.S., if not the world, an alternative to fossil fuels. Now that green technology is attracting serious capital hopefully there’s no stopping this fuel-celled powered, hydrogen-emitting train. Just think, cleaner air and fewer wars!
