April 2009

Stimulus Public Relations As Green Public Relations

The New York Times today ran a front page story reviewing how the government's stimulus package has affected Anderson, Indiana. It includes a nice graphic showing how the stimulus money was allocated to the state and the town and how those funds have created jobs.

I also noticed a quote from the chief executive officer for the Flagship Enterprise Center, who noted the difficulty in navigating the various federal agencies doling out the federal funds. Flagship is producing hybrid vans, and executives there are investigating what stimulus money might be available to them.

It made me realize that once the federal funds are distributed, there is going to be a rush to demonstrate that the funds are working. Green public relations will mean stimulus public relations.

The White House blog published regular updates noting "the recovery in action," though for the most part the entries put the spotlight on municipalities that staved off reductions in police forces or started infrastructure projects.

Soon, we will start seeing media coverage of private companies, and how they have benefitted from the stimulus funds. The stories will no doubt connect the strategic objectives of the companies (selling more products) to the strategic objectives of the government (showing how the funding led to job growth).

When green companies are involved, stimulus public relations can dovetail green public relations. Any company looking to receive federal stimulus money should have a clear plan for the public relations opportunity that will result.
 

Posted by Ross Levanto on April 27, 2009 at 10:17 PM
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The Sears of Home Solar

Although its brand has seen better days, when I was young, we'd buy our household appliances at Sears, Roebuck, usually on a store charge card. Simple, easy and everywhere, Sears originally won over farmers by providing lower cost supplies than the local general stores. We've seen Wal-Mart and other large retailers swallow local businesses, but in residential solar, it appears there is a better way.

While residential solar is still a heavily siloed market with large and small installers fighting for leads, it's been fascinating to watch the industry shift over the last few years--from BP Solar teaming up with Home Depot to SunRun's annoucement this week that it's extending its offer outside California to Massachusetts and Arizona (total disclosure: SunRun is a Schwartz client). Rather than compete with local solar installers, SunRun partners with the best local companies to design and install systems for SunRun homeowners, who then pay SunRun for the solar electricity at a price lower than that of their local utility.

Greentech Media recently pondered if the solar industry will model itself after the PC industry, with companies such as Sungevity banking on homeowners looking to buy solar from the comfort of their computers (no site visit required!). With only 14 states currently offering incentives strong enough to grow the residential market, we won't see a national consumer solar brand emerge for some time, but I'm looking forward to the day when shopping for solar is as simple as buying a refrigerator (it will be more fun too).

Posted by Whitney Phaneuf on April 23, 2009 at 11:00 AM
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A Mighty Wind: Earth Day 2009

President Obama’s visit today at the site of a planned wind energy manufacturing plant in Iowa reminds us of the president’s dedication to renewable energy and creating more green collar jobs. Even more interesting than his well covered PR visit are the reports from Washington that the Interior Department is planning to announce new rules that will pave the way for wind turbines off the East Coast. Finally.

This move by the Obama administration could usher in a powerful new era for wind energy in this country. Currently, the US has zero offshore wind parks in operation. That’s right, not a one. Considering reports by the European Wind Energy Association (EWEA) that predicted by 2020 the EU will have between 20GW and 40GW of offshore wind energy capacity—you can say the US getting “blown away” by our European peers. (Sorry.)

From reduced turbulence, to higher wind speeds to increased transmission options, offshore offers tremendous opportunities to advance wind technology and ensure that it is a significant part of our renewable energy efforts. Currently, wind makes up less than 2 percent of all electricity generated in the US today. With offshore installations, such as Cape Wind off of Massachusetts’ Nantucket Sound, looking like their time may have come, we might actually have a real shot of reaching President Obama’s goal of 10 percent of electricity coming from renewable sources by 2012. And for individuals concerned with the environmental impact these wind parks will have, several environmental groups—including the Audubon Society—have backed offshore projects. 

It will be interesting to see how these rules impact businesses throughout the wind energy industry, and this news promises to offer some great discussions at the upcoming WINDPOWER 2009 show. We’ll have to hold tight to see what the report from the Interior says before we can understand their impact, and find what new public relations and public affairs opportunities these companies can pursue.

But so far, this is shaping up to look like a meaningful Earth Day. And wasn’t it time?
 

Posted by Erin DelLlano on April 22, 2009 at 2:56 PM
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VCs, States & Stimulus Continue to Fuel Cleantech; Light Shines on LEDs & Plasma

April may be taxing for many, but for the Cleantech industry it seems as though things hit rock bottom in Q1. Based on the news of the last two weeks, April funding showers may bring Q2 flowers.

Venture capital, state tax credits and stimulus money have started flowing into a number of cleantech and energy markets, giving the market a lot to PR about. During this week alone, we have seen two lighting-related technology companies announce a round of funding. Nuventix and Luxim each scored rounds for different approaches to the sustainable lighting issue, with the former cooling LEDs and the latter offering a plasma-based ligthing technology.

Meanwhile, energy storage technologies, such as batteries and fuel cells, are getting big tax breaks in Michigan to the tune of $300 million. Technologies that help replace lost auto manufacturing jobs will likely get some public affairs love from states like Michigan, Ohio and Indiana for the rest of 2009 and beyond. The DOE is also joining the party by kicking in $41.9 million in stimulus funds for fuel cell technologies.

Can the cleantech industry sustain the momentum into May? With Wind Power 2009 on the horizon, I expect we'll see some signficiant news from major renewable manufacturers related to that space. We then move into Intersolar Munich before we get to June. Everything considered, it looks as though cleantech could be rebounding from the funding doldrums that slowed things in Q1.

Posted by Jason Morris on April 16, 2009 at 5:27 PM
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Green Stimulus for the UK Economy?

In a recent interview with The Independent, UK Prime Minister Gordon Brown hinted that a slew of green initiatives will be announced as part of the Government's April 22 budget review, designed to drag Britain out of recession on a low carbon path.

Top of the list are new plans for electric and hybrid vehicles, which echo London Mayor Boris Johnson's pledge to make the city "the electric car capital of Europe" earlier this month. The Government is expected to announce trials of environmentally friendly cars in two or three cities and initiate talks with utilities companies to roll out a national network of roadside charging points.

Brown also said that the Government was considering a "scrappage" scheme to give consumers a £2,000 windfall when they trade their older, polluting cars in for new, lower emissions alternatives – a step called for by the UK's ailing automotive industry, which saw new car sales slide almost 30% in Q1 2009.

The news coincides with two European Investment Bank loans of £340m to Jaguar Land Rover and £373m to Nissan to fuel the development of green vehicles in their UK plants. But Brown's intent to deploy more low emission vehicles within the public sector should also act as encouragement to smaller, UK-based manufacturers, such as Smith Electric Vehicles and Modec, which are already seeing strong traction amongst high-profile enterprises such as DHL, Royal Mail, Tesco and UPS.

But aside from the automotive industry, what other environmental initiatives are the Government proposing? Well, Brown has promised to set a target of creating 400,000 jobs in "green industries" over the next five years, which loosely encompass "pharmaceuticals, healthcare, education, the creative industries, information technology, bioscience and advanced manufacturing".

Other plans are mooted to include greater support for the development of clean coal, guidelines for the installation of smart meters in every home in Britain, and relaxed planning rules to allow more wind farms to be built.

The latter measure will help to quell some of the ill feeling that the Department of Energy and Climate Change generated last month when it announced that the £50m well reserved for funding solar projects on public buildings had dried up three months early. 

While not as far reaching as the US' stimulus package, the rumoured measures at least highlight a growing appreciation that green technology could act as a major catalyst for reviving the UK's economy, resurrecting Britain's once thriving automotive sector and reducing the country's dependency on the financial and services industries.

We'll be watching closely for the official budget announcement later this month.

Posted by Luke Nava on April 14, 2009 at 9:07 AM
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Cleantech Venture Capital Could be Tops in 5 Years

Good news for the cleantech world: The National Venture Capital Association says that Cleantech could be the top market for venture investment within the next five years. That, combined with the billions being invested in feed-in tariffs (FITs), tax breaks like the ITC and PTC, and other incentives could make cleantech a top employer in the US in the very near future.

It is really a no brainer since the technologies in development, from solar and wind, to biofuels and deslination, solve a large number of global economic, geopolitical and environmental problems. Beyond just energy generation and creating potable drinking water, there will be billions in investments in smart grid, energy monitoring and management, and batteries.

We're big believers that the current economic environment has simply delayed the inevitable and that cleantech will be a New Deal-type growth engine for the US in the decades to come. We'll be reporting back from Wind Power in Chicago later this month where it will be interesting to see what the mood is of some of the companies involved in the event. If you're planning to attend, drop us a line.

Posted by Jason Morris on April 10, 2009 at 11:12 AM
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Knocking Biodiesel; Sweden's Big Wind Farm; Scotland Goes Algae

It's been a bad PR week for biodiesel.

First, Scotland announces it is investing $8 million in algae and seaweed-based biofuels. The reason? Because those sources have no impact on food prices, don't contribute to deforestation and aren't subject to commodity price fluctuations. Bad news for palm oil and other biodiesel types, but good news for my kids which can't stand it when seaweed touches their feet while swimming.

Then Forbes follows with a story about how biodiesels companies are going to have to start shuttering their doors without government subsidies for the same aforementioned reasons. Executives of biodiesel companies using corn, switchgrass and palm oil have called the deforestation and commodity pricing objections baseless, but a major media and government education campaign will need to take place to change perceptions. In the meantime, it looks as though algae-based fuels, like those being developed by Solix Biofuels, are gaining favor with policy makers, commercial customers and biofuel advocates.

One other interesting story from this week is from Sweden where we have our European Green PR headquarters: apparently govenment approval is the only thing keeping Sweden from having the world's largest wind farm. A company called Markbygden Vind AB is planning to install a multi-terawatt wind farm in the northern section of the country. An interesting post from Dave Tyler of Green Options discusses how there is likely to be a race for the biggest wind farm.

With Wind Power 2009 coming up in Chicago in early May, there will likely be a lot of discussion about major wind farm projects and the public affairs and public relations challenges with getting them planned, developed and built.

Posted by Jason Morris on April 8, 2009 at 6:56 PM
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Is the Stimulus Package Reviving Cleantech Funding and Valuations?

Earth2Tech has an interesting post on the fact that the stimulus package and cleantech funding from the federal government may be starting to thaw the VC funding freeze. Three companies announced funding this week, which was newsworthy in itself. But also interesting is the fact that none of the companies were in solar and instead were in markets that took the brunt of VC indifference during Q1.

Wind, biofuels and smart grid were the three markets drawing interest from several noteworthy investors, including GE Capital, DFJ, Polaris and Altira Group, a slightly less well known cleantech and energy venture firm with a pretty broad portfolio. Altira invested in both Southwest Windpower and OPX Biotechnology. 

The third company that received funding was Ember, the company behind the ZigBee wireless networking and control standard for smart meters. All three of the aforementioned markets, wind, smart grid and biofuels, stand to benefit from the stimulus package, including renewable energy and smart grid loan guarantees, tax credits, state energy projects and direct investment from the DOE.

We've talked before about how the Federal Government would serve as a bridge investor for the cleantech industry and eventually attract VC dollars back into the market. When companies can get capital from other sources that don't dilute company equity, it takes some of the risk out of the investment for private equity groups and VCs, while making the return potentially much more lucrative.

It used to be that PR was the engine that drove visibility with investment audiences. Now cleantech companies, including solar, wind, smart grid, energy management, biofuels and others, should be thinking about integrating public affairs and PR together to secure government funding and VC dollars. 

Will the stimulus ultimately bring back the cleantech VC market? Time will tell, but having the government as a customer and/or financial backer could be the thing that gets cleantech and green companies through the economic downturn.

Posted by Jason Morris on April 7, 2009 at 12:20 PM
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