RE < C (Renewable Energy Cheaper Than Coal)
Clean and affordable energy is a growing need for our company, so we’re excited about launching RE < C, a strategic initiative whose mission is to develop electricity from renewable sources cheaper than electricity produced from coal. Initially, this project to create renewable energy cheaper than coal will focus on advanced solar thermal power, wind power technologies, and enhanced geothermal systems – but we’ll explore other potential breakthrough technologies too.
We’re busy assembling our own internal research and development group and hiring a team of engineers and energy experts tasked with building 1 gigawatt of renewable energy capacity that is cheaper than coal. (That’s enough electricity to power a city the size of San Francisco.) Google’s R&D effort will begin with a significant effort on solar thermal technology, and will also investigate enhanced geothermal systems and other areas.
Supporting Breakthrough Technologies
In conjunction with the RE < C major research and development initiative, Google.org will make strategic grants and investments in organizations working to produce renewable energy at a cost below that of coal-fired power plants.
Google.org is already working with two innovative corporations who are building potentially breakthrough technologies, and we look forward to collaborating with other members of the renewable energy field, including companies, R&D laboratories, and universities.
eSolar Inc. specializes in solar thermal power. Solar thermal technology replaces the fuel in a traditional power plant with heat produced from solar energy, and has great potential to produce utility-scale power that is cheaper than coal.
Makani Power Inc. is developing high-altitude wind energy extraction technologies aimed at harnessing the world’s most powerful wind resources. Capturing just a fraction of available high-energy wind would be sufficient to supply current global electricity needs.
Google's Green Commitment
This current initiative is just the next step in Google’s continuing commitment to a clean and green energy future. We have been working hard on energy efficiency and making our business environmentally sustainable.
Last spring we announced that we would be carbon neutral for 2007 and beyond, and we’re on track to meet this goal. We’ve taken concrete steps to reduce our carbon footprint and accelerate improvements in green technology. For example, through design improvements and the adoption of power-saving technologies, such as evaporative cooling, we have made great strides to bolster the efficiency of our data centers – the facilities that store the computers that enable Google to deliver accurate search results at lightning speed. We’ve also reduced the carbon footprint of our building and office operations - for example, by replacing incandescent bulbs with higher-efficiency lighting, and maximizing the use of natural light. And earlier this year we flipped the switch at our Mountain View headquarters on one of the largest corporate solar panel installations in the United States.
In addition to “greening” our own business, we’re also cooperating with members of the tech community to improve efficiency on a broader scale. In 2007, we teamed with Intel and other industry partners to form the Climate Savers Computing Initiative, a group which advocates the design and adoption of less wasteful computing infrastructure. (In November 2007, CSCI achieved a new milestone when we signed on our very first public sector partners, the state governments of Minnesota and Kansas.)
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Thursday, November 29, 2007
Google (GOOG) launches RE < C, funding clean power
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WARNING: Investing in common equity of public companies is a high risk, high potential reward activity. Owning investments in individual alternative energy companies is for high risk investors only, and medium risk investors should consider green mutual funds, clean energy funds, renewable power index funds and other sector plays. Even then, these should be owned as part of a widely diversified portfolio. There is a gathering mania for investing in publicly-traded alternative energy companies, similar to the computer, technology, internet and banking / real estate booms of the past two decades. There will be some nasty corrections along the way, and some years from now when they come crashing down en masse, the world will still benefit from all the amazingly advanced clean and efficient energy technology created during the bull run. (Above note re-written March 2009 as my earlier prediction of a market top and a crash in the sector starting in August '09 was hastened by the credit markets collapse and began in August 2008, before the bubble had fully formed. Of all the sectors in the equity markets, clean energy has the best prospects to assume market leadership and public favour; we are bouncing aong the bottom still, and those who have followed our guidance to begin including (in a judiciously blended portfolio of cash, bonds, stocks and yes, um... real estate) green energy investment funds dollar-cost-averaging programs in Winter and Spring of 2009 are well positioned for longterm capital growth.)
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