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

Green Innovation & Regional Development: Wales & the World

Phil Cooke

Aalborg & Cardiff Universities

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)

Green Innovation: new challenges and opportunities

Innovation Product Process Organizational Region Input

Radical Fuel Cells Membrane Carbon Trading Green Solar Paint Filtration Building Codes Disruptive Low Emission Low Energy Green Organic City LED Street/ Engines Pumps Construction Purchasing Traffic Lights

Recombinant Smart Meters Green Carbon Offsetting Local Sensors Manufacturing Agenda 21 Sustaining Photovoltaics Organic Organic Local Food Biocomposites Retailing Farms Networks Incremental Wind Energy 4G Catalysers Biomass CHP Tidal Energy 2G Biofuels

Fig.2. Innovation Category & Intensity Taxonomy

NB: LED: light-emitting diode; Local Agenda 21: neighbourhood or city policy to meet Kyoto protocols; CHP: combined heat and power plants; 2G/4G: second/fourth generation.

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’

2. California’s ‘Jacobian’ Cluster ‘Platform’

Cluster Legend:Clean TechBiotechnologyWirelessICTAgro-Food

Organic FoodWineFilm

Click for

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• 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.

Emergent Cleantech Cluster?

ICTBiotechMedtechCleantech

3. Israel’sJacobian Clusters

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

4. Jutland’s Solar Thermal Cluster

Source: ESTIF Data

Danfoss A/S

Grundfos Sensor

The North Central Jutland Wind Turbine Cluster

Source: Danish Wind Industry Association Data, 2007

Clean Tech Biotechnology

Wireless Agro-Food (Organic)

Agro-Food (Conv.) Furniture

Fashion Engineering (Fish)

Engineering (Pipes)

N. Jutland’s Jacobian Cluster ‘Platform’

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)

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

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

Baglan Energy Park

Tribrid Bus

Connaught Engineering

HFC Inventor Sir William Grove,born Swansea, 11th July, 1811

The Narrow Car Company

Hydrogen Fuelled Vehicle Firms and Infrastructure: Wales

Related variety cluster spillovers(Source: Nygaard)

6. Top European Fast Growth Eco-Businesses In Wales

Pelikon

DST – 2/100

Atra – 10/100

Inetec – 14/100

G24i - 37/100

Pelikon – 80/100

Source: Library House, 2008

Environmental Innovation in Wales: 30 Solar Energy Equipment Manufacturers

LlaniSolar

G24i

Sharp Solar, Dulas; PV Systems; Corus Colours, ICP Solar, Jantec

Solar, IQE

PHOTOVOLTAICS CLUSTER

ICP Solar

MicaulSolar

Clear Sky

ThermonaxSundance Renewables

Royce RenewablesPJB Systems

Solar Housing

Solarfit

KDUK

Sunset Solar

SB Alternative Energy

Bright Light Solar

VE Heating

Eco Energy Systems

Solarfit

InterSolar

Kingspan Sundance Renewables also Produce 300,000 Biofuel litres/yr.

IGER – Novel Agricultural Products Research: Miscanthus & Wood Chips

Germinal Holdings, Bristol

Germinal Holdings, Lincoln

IGER

IGER

SW Seed Ltd. Cambridge

Genus, Hampshire

Alltech, USA, Ireland &Worldwide

BPI Agri, London

R&D

SAs

Research Collaborations

Sanofi-Aventis Guildford

Advanta, Lincoln

Unilever, Cheshire

Genencor, Copenhagen

Alltech

Merial

Biotal, Cardiff Tesco

South Counties Foods

Dengie Crops

Dow Elanco

Monsanto Cultech, Port Talbot

Prya

Kemira, Helsinki

Molecular Nature

Spinout

Germinal Holdings N.I (2), RoI

Biofuels Producers in Wales

Cardiff

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

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

Pembrokeshire Bioenergy Ltd• 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

50 farmers growing energy crops tosupply miscanthus & willow

Centre for Alternative Land Use (CALU)

Organic Food Producers & Distributors

Cardiff

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