Green Innovation & Regional Development: Wales & the World

1. Green Innovation & Regional Development: Wales & the World Phil Cooke Aalborg & Cardiff Universities

2. 1. What is Green Innovation? • ‘Green’ refers to ‘….diverse products, technologies and processes which, through improvements in the clean energy supply chain from energy source through to point of consumption, result in reduction in greenhouse gases.’ (Cooke, 2008) • Innovation, as ever, refers to ‘…the commercialisation of new knowledge..’ (neo-Schumpeterian/Evolutionary school, Freeman, 1987, Lundvall, 1992, Edquist, 1997)

3. Green Innovation: new challenges and opportunities

4. Green/Clean Technology Convergence E.G. Biomass, Biogas, Bioethanol, Wind, Wave, Tidal Energies, Hydrogen Fuel Cells, Hybrid Autos, Plug-ins, Clean Pumps, Filtration & Industrial Ecology etc. ‘Platforms’

5. 2. California’s ‘Jacobian’ Cluster ‘Platform’ Cluster Legend: Clean Tech Biotechnology Wireless ICT Agro-Food Organic Food Wine Film Click for

6. Shai Agassi (SAP), Founder, CEO Project Better Place, Palo Alto, SV Bob Metcalfe, Partner, Polaris Venture Partners, CEO GreenFuel (Camb.MA) Vinod Khosla, Founder Khosla Ventures. Sunil Paul, Seed investor, early stage cleantech, Nanosolar, Oorja. Elon Musk, Chairman, Tesla, Chairman, CEO SolarCity Steve Jurvetson, Partner, Draper Fisher Jurvetson. Bill Gross, Founder Idealab Steve Westly, Founder The Westly Group. Dan Whaley, Founder, CEO Climos.. Martin Eberhard, Founder, former CEO Tesla. Martin Roscheisen, Founder, CEO Nanosolar. Martin Tobias, Former CEO Imperium Renewables. Manny Hernandez, CFO SunPower. Jonathan Gay, CEO of GreenBox Jeff Skoll, Founder Skoll Foundation, investor in Tesla, Nanosolar. Mitch Mandich, CEO Range Fuels. Larry Gross, CEO of Edeniq. Bruce Sohn, President First Solar. David Kaplan, Founder V2Green. David Cope, CEO of PurFresh. 20 Who Ditched Infotech for CleantechWith their dotcom and broadband-based winnings, serial entrepreneurs of the ICT age have moved into the energy and cleantech markets

7. Emergent Cleantech Cluster?

8. 3. Israel’s Jacobian Clusters ICT Biotech Medtech Cleantech

9. Evolution by Mutation • Pythagoras Solar was founded in 2006 by Gonen Fink, previously at Check Point Software, The company has an R&D centre in Hakfar Hayarok, Israel and a US office in San Mateo, California • Ben-Gurion University of the Negev, a leader in research and development of technologies in the fields of water, energy and the environment, will invest in Israel Cleantech Ventures, Israel’s first cleantech focused venture capital fund • Israel Cleantech Ventures was established in 2006 to invest growth capital in Israel's energy, water and environmental leaders. To date, the Fund has invested in 6 companies • Israel Cleantech Invests in Pythagoras SolarPythagoras is a solar energy company developing innovative photovoltaic technology to revolutionize the cost of solar electricity. • Israel Cleantech Invests in AqWiseAqWise develops and implements innovative solutions for biological wastewater treatment and rapid filtration using movable plastic biomass carriers • Israel Cleantech Invests in Emefcy Bioenergy SystemsEmefcy is designing an innovative wastewater treatment system which will harness the energy inherent in organic components in wastewater • XJet Solar Energy Entrepreneur from Semiconductors • Orion Solar Energy Entrepreneur from Aerospace

10. 4. Jutland’s Solar Thermal Cluster Grundfos Sensor Danfoss A/S Source: ESTIF Data

11. The North Central Jutland Wind Turbine Cluster Source: Danish Wind Industry Association Data, 2007

12. N. Jutland’s Jacobian Cluster ‘Platform’ Clean Tech Biotechnology Wireless Agro-Food (Organic) Agro-Food (Conv.) Furniture Fashion Engineering (Fish) Engineering (Pipes)

13. N. Jutland: a Green Regional Innovation System • ‘Innovative Region: Flexible District Heating’ Platform • Biogas, Biomass, Solar Thermal, Wind - ‘plug-ins’ • ‘Social Network’ >100 ‘system’ & ‘solution’ firms • Aalborg U, Municipalities, DTI, VåxtForum Fund (40 mn.DK bid). • ‘Aggregators’ or ‘system integrators’ include: • Arcon Solar (Velux VHK), Exergi, Lokster (Pipework), Baracon (Biogas), Grundfos • Humvel, NIAS, EnergiPlan (consultants)

14. 5. Leading Hydrogen Fuel Cells Regions in Europe(Source: Nygaard, 2008)

15. Hydrogen Fuel Cells Production: Leading European Regions (Source: Nygaard, 2008)

16. Hydrogen Fuelled Vehicle Firms and Infrastructure: Wales Connaught Engineering Tribrid Bus Baglan EnergyPark The Narrow Car Company HFC Inventor Sir William Grove, born Swansea, 11th July, 1811

17. Related variety cluster spillovers(Source: Nygaard)

18. 6. Top European Fast Growth Eco-Businesses In Wales DST – 2/100 Atra – 10/100 Inetec – 14/100 G24i - 37/100 Pelikon – 80/100 Source: Library House, 2008 Pelikon

19. Environmental Innovation in Wales: 30 Solar Energy Equipment Manufacturers PHOTOVOLTAICS CLUSTER Royce Renewables PJB Systems Sharp Solar, Dulas; PV Systems; Corus Colours, ICP Solar, Jantec Solar, IQE VE Heating Bright Light Solar LlaniSolar Sunset Solar Solar Housing Sundance Renewables Thermonax SB Alternative Energy MicaulSolar Solarfit Solarfit Kingspan ICP Solar Sundance Renewablesalso Produce 300,000 Biofuellitres/yr. G24i Eco Energy Systems InterSolar Clear Sky KDUK

20. IGER – Novel Agricultural Products Research: Miscanthus & Wood Chips

21. Biofuels Producers in Wales The new facility in Swansea is believed to be the largest biodiesel plant in Wales Below: Wood Pellets Miscanthus ↓ 50 wood-chip farms supplying Bluestone Cardiff

22. Bluestone, Pembrokeshire, Wales • The Bluestone Project, valued at about €130m million • 340 timber chalets surrounding a 'Celtic Village' of 80 permanent buildings within the National Park • Adjoining Oakwood Leisure Park, next to which a Snow Dome, Waterworld, Tropical Garden and Sports Centre are proposed. • A community of up to 2,000 residents and 5,000 day visitors. • Jobs: 200 construction; 600 catering/hospitality; 100 suppliers • 3 MW Biomass (willow chips) CHP units burning fuel sourced from 2 specialist local farms by Pembrokeshire Bioenergy

23. Centre for Alternative Land Use (CALU) • Grant from Pembrokeshire Coast National Park Sustainable Development Fund (2005) • DEFRA Grant to develop and market carbon-neutral crops • Miscanthus and Short Rotation Willow Coppice trials Pembrokeshire Bioenergy Ltd 50 farmers growing energy crops to supply miscanthus& willow

24. Organic Food Producers & Distributors Cardiff

25. Conclusions • How much value is this green innovation activity creating? • US Corn Bioethanol share price peak $43 (May 2005) but down to $2 (September 2008) 2G expected to be better. • 1G had little effect on GHGs or US oil-dependence despite $80 bn. Subsidy • Wind power better EU - $85 billion invested, $200bn in decade • UK govt. £100 bn. Renewables Market • Bain & Co. UK wind alone £39 bn. Market (60,000 jobs - overestimates) • How many jobs? • Renewable Energy – UK govt.-160,000 anticipated (NIESR says 1/3 of that) • Germany, Denmark & Spain (70% EU Capacity) 133,000 employed in turbine ‘clusters’ • Biomass – Drax – 3 x 300MW biomass power plants to invest $3.5 bn (Energy Scale: City of Nottingham) • Previous Drax announcement: 100 jobs per 100 MW so approx. 900 • San Jose ‘Green Vision’ 25,000 in 10 years • Co-evolution: the Post-hydrocarbon Paradigm • Green niches • Green technological regime • Green Socio-technical Landscape