SBI Reports has been leading industrial market research reporting for more than a decade. The brand established SBI Energy to address the complex nature of the Energy and Resources industry. SBI Energy reports capture data vital to emerging energy market sectors on a global scale. Growth of energy technology, manufacturing, construction, transportation and investment is exciting in its innovations and opportunities, and integral to the advancement of security and science.
O Thank Heaven it’s 2011
The flurry of predictions made at the end of 2010 for the clean energy sector has created an exciting new buzz for 2011. Significantly advancing the U.S. toward a clean energy economy, 2011 will likely bring a spike in financial investing - now that Wall Street has claimed to have ‘figured out’ clean energy, along with an extension in tax credits that encourage more businesses to adopt ‘green’ practices and the creation of thousands of ‘green’ employment opportunities. Meanwhile, the clean energy manufacturing industry can expect to receive an additional $2.5 billion in funding in 2011 from the Recovery Act (ARRA). And, letting the good news roll, the global clean power sector is forecasted to see growth this year and continue its upward trend straight through 2020 - ultimately becoming a $2.3 trillion industry.
In just 18 months the U.S. spent more than $51 billion in public funding on clean energy project initiatives, research science, installations and infrastructure. Not enough to approach sustainability, but a significant play nonetheless, as many countries have made.
It’s also reported that U.S. is on track for its 2012 goal of doubling its renewable generation capacity. How old is that goal, anyway? What are our new goals? Where are the new clean energy policies and standards businesses need to move forward in their commitments and goals?
As the American public, we know a clean economy can’t arrive bagged and sterile in a flash while we wait. Our order requires recipes and ingredients yet to be known. It will be years in the making, always in the unfolding if we are wise, rather than slacking again to this level of paucity by negligence. So let’s celebrate what this bright New Year will bring in terms of building blocks for our future.
SBI Energy believes the power players are in the following sectors:
• Energy storage
• Rare earth minerals impact on renewable power generation
• Industrial equipment manufacturing, components
• Carbon and coal treatments, technologies
• Nuclear power applications development
• Substation automation
• Smart grid advancement
2011 is set to advance the clean energy industry. We stake our research on it. Cheers to progress and patience!
Why aren’t alternative fuels taking off more quickly? It’s a valid question given the large quantity of proposals for massive solar and wind turbine installations in the U.S and around the globe this year. Meanwhile, we hear little news of new alternative fuels projects. The answer, according to a new market study, Specialty Pipelines for Renewable and Alternative Energy Substances, lies in the transportation logistics.
Crude oil, finished fuels, and natural gas pipelines crisscross the United States and the globe. But in many cases, these existing pipelines are not suitable for the transport of sensitive biofuels. The chemical disposition of biofuels is substantially different from conventional fossil fuels. For example, the corrosiveness and water solubility of ethanol makes it incompatible with most existing pipelines.
Industry concerns also persist regarding the contamination of jet fuel, which has strict quality control, by residual biodiesel left in the pipeline. Current pipeline deliveries of biodiesel remain limited to B5 blends through pipelines that do not traffic jet fuel.
An additional inhibiter to immediate alternative fuel success resides in the lack of existing pipelines in remote regions where Biomethane and biogas are produced. As a result, biofuels are largely transport by truck or rail, which drives up costs and limits how effectively biofuels can be brought to market.
In order to support current and future alternative fuels development, producers and investors are looking towards specialty pipelines for their distribution needs. As a result research publisher SBI Energy forecasts that the market for specialty pipelines is expected to increase nearly 4-fold between 2010 and 2015. Substances carried in specialty pipelines - carbon dioxide, ethanol, biodiesel, and biomethane/biogas - have found market growth due to high petroleum prices, the development of enhanced oil recovery methods using carbon dioxide injection, carbon capture and sequestration system development, the presence or potential for carbon emissions penalties in several world markets. The fastest growing segment, Ethanol, will expand significantly as construction proceeds on dedicated ethanol pipelines, creating a market in excess of $1,000 million by 2014. The projected 2011-2015 CAGR for this market is 27.2%.
Green building renovations are defying the downward spiral seen in the general market for renovation work. As a result, green building retrofits that promote efficient energy usage are anticipated to increase substantially through 2015 and emerge as the “new normal” in the building industry, according to leading market research firm SBI Energy in the recently released report Green Building Materials and Construction, 2nd Edition.
Green renovations currently account for about 7% of the total renovation market, and are anticipated to grow to 13% of the market by 2015. Much of the sector’s growth can be attributed to stimulus funding throughout the world for energy efficiency improvements, though green building materials have shown that they are cost effective alternatives to standard building components and are increasingly in demand by businesses and homeowners alike. Rising energy costs and diminishing fuel resources will also continue to push energy efficiency measures, both for construction and for manufacturing.
“The majority of the world’s buildings are old and waste energy. We anticipate the building industry will see a significant increase in green building renovation to make structures more energy efficient, particularly since these types of retrofits pay for themselves after only a few years,” says Bernie Galing, SBI Energy analyst and author of the report.
In the green construction arena, an increasing number of builders are building more green homes and offices as a means to differentiate themselves from their competitors and as a way to weather a poor building environment. Green homes and buildings are not only in high demand, but they command a price premium when they are purchased or sold. In addition, green rental properties have higher occupancy rates and also command higher rents. With better designs, improved green building materials, and advanced construction techniques, green buildings are more durable, last about twice as long, use less energy, and have less of an impact on the environment than standard construction.
Global Green Building Materials and Construction, 2nd Edition provides a comprehensive assessment of both green building materials and green construction, cost considerations that have limited their growth, government incentives that have spurred their growth, consumer and business demand, potential opportunities for additional growth, and an assessment of developing technologies that are making green building products and green construction the “new normal”. Projected growth through 2015 for both of these markets is provided including discussion of economic conditions, environmental impacts, consumer-business-builder acceptance, stakeholder concerns, and government activities as they affect growth rates.
The world is going green. Of this I have no doubt. As I sit here writing about green building materials and construction on the 40th anniversary of Earth Day, it is becoming abundantly clear that “green” in all its forms has become mainstream.
Sure, everyday products such as detergents and cleaning products have been available and advertised for years. Organic foods are widely available, if still a little pricey. EnergyStar labels can be readily found on products ranging from light bulbs to appliances, as they have been for many years. References to energy efficiency, electric automobiles, wind and solar power, and water conservation among many other “green” concerns are replete throughout the media in all its forms. I have even overheard casual conversations about pending cap-and-trade legislation on several occasions.
What I have found lacking in the green marketplace is a concerted effort to advertise green building products and green construction. Although large well-known building supply centers – particularly The Home Depot and Lowes – now carry green building products and materials they have not done anything other than rudimentary and unimaginative advertising. One still has to look hard to find green building products in these stores as they are not very well displayed. Instead of large and distinctive signage indicating the location and proclaiming the benefits of green building products, one still has to look carefully at labels on each product. Where’s the differentiation? Where’s the call to action? Why isn’t this a bigger deal?
However, I have lately seen some indications that green building materials and construction is taking flight. While researching and writing this report I paid particular attention to casual mainstream media references to these topics as this would be a sign (at least to me) that green building materials and construction were no longer “special” topics. While such references were few and far between, in the past month I have seen several TV commercials from home builders touting their new “green” homes. The April 2010 issue of U.S News & World Report was devoted to the “Future of Energy” with a number of articles devoted to green construction and renovation. The April 22, 2010 edition of USA Today included “Blueprint for a green house”, an in-depth article about one woman’s experience in building a custom green home and some lessons everyone should consider when building “green”. While these are but a few examples it seems to me that the words “green” and “construction” are at last being “heard” through mainstream consumer media sources and have become part of the normal discourse and lexicon.
This is not to say that green building materials and construction have “arrived”. It only means that people are now starting to notice. The benefits of building green still need to be delivered to the masses and the costs for green products and construction still need some improvement. However, as the economy improves and home sales spick up, there will be a great opportunity to deliver this message.
One of the ways I think the benefits of building green can be delivered to the masses is to emphasize the unique products that have been developed and the advantages of using them. Having experienced the insulation capabilities of adobe brick (which is made from dirt and straw - can’t get much “greener” than that!) while living in New Mexico, I think much interest could be generated from products that are green and “out of the ordinary”. Oryzatech’s Lego-like STAK BLOCKS (made from rice straw) and Black Mountain’s sheep wool insulation are examples of two unique building products that are green and perform better and last longer than “standard” building products and could generate consumer interest.
I’d also like to use more green building products since I am doing several remodeling projects on my house. However, unless I see these products in a store or a home show or advertised in the newspaper I’m unlikely to find and use them. I’ll look on the internet but if shipping is too expensive I’ll buy something else locally. This just about sums up the biggest issue with green building materials – people don’t know about them and when they do, they are often hard to find (or too expensive). So, I’m hoping for a breakthrough in these two areas (soon). There’s a lot to do around the house.