| The State of the Union and Alternative Energy |
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| Written by Mark Bershatsky | |
| Friday, 01 February 2008 | |
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On Monday night, President George W. Bush gave his seventh and final State of the Union address (eighth if you count the inauguration speech back in 2001). But before I continue, I would like to issue the disclaimer that this weblog is not designed to be an in-depth critique of our president's speech. There are plenty of other bloggers out there that are providing that. Instead, I wanted to comment on one particular section of the speech -- the alternative energy section. Especially given that this subject has been receiving increasingly more air time in recent State of the Union addresses. Two years ago, the phrase "addiction to oil" was quickly adopted into the American vernacular as GWB acknowledged spiking oil prices and the urgency of reducing our dependence on it. In last year's speech, with a simple acknowledgement of the risks associated with releasing greenhouse gases into the air, the words "climate change" prompted the buzz for 2007. And for the grand finale of his presidency, on Monday night, new concepts such as "carbon sequestration" and "advanced battery technologies" entered the mix. If history is an indicator those concepts will become mainstream soon enough. I was largely disappointed with the 2007 Energy Bill, as in my opinion, it will only help accomplish a mere fraction of what it should. I am hopeful that the next energy bill will be more all-encompassing. Carbon sequestration is the basis of our next-generation power plant. Indeed, with this technology, all CO2 emissions from the burning of fossil fuels will be captured and buried beneath the ground, and thus less likely to contribute to the greenhouse blanket in our atmosphere. A prototype of such a plant is currently in the works, and we can only hope to see government funding continue to pour into such projects. For a closer look at this prototype, dubbed "FutureGen," click here. Energy storage technologies will also need to be advanced as the clean energy revolution progresses. With the continued opining of the hybrid vehicle from our government, it only makes sense that players in the energy storage sector are clamoring to come up with improved batteries for hybrids. Additionally, the 150 year-old lead-acid technology that has long dominated the battery market by companies like Exide Technologies (XIDE) and EnerSys (ENS) are now facing competition by means of lithium ion technology, which is lighter, longer lasting, and more environmentally friendly. So while many of our politicians are championing themselves as being "eco-friendly" and want to be the ones known for advancing the alternative energy sector, the reality is that we are still far behind. All one needs to do to corroborate that is to look overseas, as much more business in the sector is being done in the European Union and China. By means of feed-in tariffs and generous production tax credits, proven technologies like solar and wind, respectively, are gaining much more traction there than in the United States. Indeed, the solar sector enjoyed a banner year in 2007 almost exclusively because of what solar companies accomplished outside of U.S. borders. We have already discussed this topic ad nauseum at The Panelist, so I must issue another disclaimer here to say that this article is also not exclusively about how America needs a more progressive government, and we will be running in place until that happens, yada yada yada. Unless you have been living underneath a rock in recent times (or are reading The Panelist for the first time), you have noticed that the American dollar is in free fall. When I was in college in the mid-90's, I occasionally took the one hour drive east from Ann Arbor, MI to Windsor, Ontario to visit the Canadian casinos that apparently had no qualms about taking money from people as young as age 19. My money was usually (okay, always) gone after traversing back and forth between the roulette and blackjack tables, but it was reassuring to know at the end of the night that I actually only lost approximately 65% of what I had originally set out to spend. Today, there would be no difference. Additionally, not too long ago (although it seems like forever), the greenback was stronger than the euro. The dollar's rapid decline has given foreign dictators like Iran's Mahmoud Ahmadinejad and Venezuala's Hugo Chavez more leverage in lobbying to detach their crude oil exports from "that worthless dollar." So, amidst a declining currency, massive budget deficits, entanglement in a war that is going nowhere, and now on the brink of recession, is America slipping in its place as the premiere global superpower? I never supported us going into Iraq and turning that country upside down, which is a large reason why we are in our current predicament, but contrary to what a lot of people believe, I would argue that no, we are not "slipping." We have been in crisis times like this before. I say that we are simply allowing the rest of the world to catch up. I wouldn't say that that is necessarily a bad thing either. America has long been advocating the benefits of globalization, and in a truly global world, there is no hegemony from one country. We cannot expect to maintain the best of both worlds forever. In this new "global planet" that we have established, the European Union and China are earning their rights to be labeled "superpowers" too. Okay, so back to alternative energy. The progress that the sector has made in two short years is stunning. And the potential that is still yet to be tapped is 20x greater. In a global world the superpowers have a chance to lead the charge against a global cause that is far more threatening than any war, budget deficit, or declining currency. That global cause is global warming. By creating a business climate that is favorable for the advancement of the sector, the European Union has so far done its part to lead the charge. China has a plan in place to do so. So why can't we? Disclosure: I do not own shares of XIDE or ENS. Site disclaimer  Photo:Fabio Gava, Creative Commons, Flickr Alternative Energy 
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Comments
(4)
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written by Arnaud , February 10, 2008
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written by M. Bershatsky , February 10, 2008
*snore*.....
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written by Arnaud , February 12, 2008
I know. That's what you apparently did during your college years.
It's now time to surge out of your lethargy big boy!
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written by Arnaud , February 12, 2008
Is this kind of comment "snore..." what is typically described as the liberal openness to other ideas and opinions?
Or does that qualifies as a "brilliant argument" in the line of hysterically crying "Racist!" or "Fascist!" to anything or anyone not to left of McGovern? Tag it:           |
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SOTU 2002:
Good jobs also depend on reliable and affordable energy. This Congress must act to encourage conservation, promote technology, build infrastructure, and it must act to increase energy production at home so America is less dependent on foreign oil.
SOTU 2003:
Our third goal is to promote energy independence for our country, while dramatically improving the environment. I have sent you a comprehensive energy plan to promote energy efficiency and conservation, to develop cleaner technology, and to produce more energy at home. I have sent you Clear Skies legislation that mandates a 70-percent cut in air pollution from power plants over the next 15 years.
I urge you to pass these measures, for the good of both our environment and our economy.
Even more, I ask you to take a crucial step and protect our environment in ways that generations before us could not have imagined.
In this century, the greatest environmental progress will come about not through endless lawsuits or command-and-control regulations, but through technology and innovation. Tonight I'm proposing $1.2 BILLION IN RESEARCH FUNDING so that America can lead the world in developing clean, hydrogen-powered automobiles.
A single chemical reaction between hydrogen and oxygen generates energy, which can be used to power a car -- producing only water, not exhaust fumes. With a new national commitment, our scientists and engineers will overcome obstacles to taking these cars from laboratory to showroom, so that the first car driven by a child born today could be powered by hydrogen, and pollution-free.
Join me in this important innovation to make our air significantly cleaner, and our country much less dependent on foreign sources of energy.
SOTU 2006:
Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology. Since 2001, WE HAVE SPENT NEARLY $10 BILLION TO DEVELOP CLEANER, CHEAPER, cheaper, and more reliable alternative ENERGY SOURCES -- and we are on the threshold of incredible advances.
So tonight, I announce the Advanced Energy Initiative -- a 22-PERCENT INCREASE IN CLEAN-ENERGY RESEARCH -- at the Department of Energy, to push for breakthroughs in two vital areas. To change how we power our homes and offices, we will INVEST more in zero-emission coal-fired plants, revolutionary SOLAR AND WIND TECHNOLOGIES, and clean, safe nuclear energy.
We must also change how we power our automobiles. We will increase our research in BETTER BATTERIES for hybrid and electric cars, and in pollution-free cars that run on hydrogen. We'll also FUND ADDITIONAL RESEARCH in cutting-edge methods of producing ethanol, not just from corn, but from wood chips and stalks, or switch grass. Our goal is to make this new kind of ethanol practical and competitive within six years.
Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by 2025. By applying the talent and technology of America, this country can dramatically improve our environment, move beyond a petroleum-based economy, and make our dependence on Middle Eastern oil a thing of the past.
First, I propose to double the federal commitment to the most critical basic research programs in the physical sciences over the next 10 years. This funding will support the work of America's most creative minds as they explore promising areas such as nanotechnology, supercomputing, and alternative energy sources.
and so on...