Mass Insight Science & Technology Initiative
Mass Insight Corporation Science & Technology Newsletter
JULY 2005

RESOURCES
Presentations from the June 28 R&D Breakfast Briefing at TIAX:

The Alternative Energy Agenda
Michael Bevan, Partner, Energy Technology Group, Advent International

The Alternative Energy Agenda: How Viable an Alternative This Time Around?
John Collins, President, TIAX LLC

Fuel Cells to Market: Technological and Other Challenges
Ravi Datta, Director, Fuel Cell Center, Worcester Polytechnic Institute

Clean Energy: A Growing Opportunity for Massachusetts Business
Robert L. Pratt, Director, Massachusetts Renewable Energy Trust

Alternative Energy: The National Agenda and Massachusetts Opportunities
Steven Taub, Research Director, Cambridge Energy Research Associates (CERA), Emerging Generation Technologies Advisory Service


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UPDATES

On July 7th, the University of Massachusetts Amherst received a five-year, $3.1 million grant from the National Science Foundation to train experts in nanotechnology.

The grant will give students an interdisciplinary background in nanotechnology in addition to a Ph.D. in their home discipline. A partnership with the university's Isenberg School of Management will help students develop plans to commercialize the technology under the tutelage of advisors from both academia and industry.


BREAKFAST BRIEFING SERIES & eNEWSLETTER

Watch your mailbox for information about our upcoming R&D Breakfast Briefings

Our next briefing is scheduled for September 2005.

Click here or contact SciTech@massinsight.com for more information.


ABOUT THE SCIENCE & TECHNOLOGY INITIATIVE

The Science & Technology Initiative’s mission is to create a state policy to facilitate and support major science and technology education and research initiatives that improve Massachusetts’ competitive position and enhance its economic strength. For more information on the Initiative, click here.


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LEAD STORY

The New Economics of Alternative Energy

TIAX CEO John Collins, who hosted Mass Insight's R&D Strategic Alliances Breakfast on June 28, set the stage by saying a combination of high gas prices, the desire to reduce reliance on foreign oil and improved economics are combining to make the time right for increased use of renewable energy.


Phil Sharp

What follows are highlights from presentations by former Indiana Congressman Phil Sharp, who currently directs the Institute of Politics at Harvard University's Kennedy School of Government and was the keynote speaker; Rob Pratt, director of the Massachusetts Renewable Energy Trust; Michael Bevan of Advent International, a private equity firm; Steven Taub of Cambridge Energy Research Associates; and Ravi Datti, professor of chemical engineering at Worcester Polytechnic Institute.


PRESENTATION HIGHLIGHTS

Government Playing a Bigger Role in the Energy Marketplace

State Governments
  • 19 states now have Renewable Portfolio Standards that require electric companies to generate a certain portion of their electricity from renewable energy sources.
  • Massachusetts is one of 15 states that have funds like the Renewable Energy Trust that are dedicated to renewable energy.
  • In Massachusetts, the Trust has invested a total of $120 million in more than 350 projects.
Federal Government
  • More government intervention could be coming in the form of major energy legislation, which Sharp expects will pass this year.
  • A compromise was recently reached requiring oil companies to use a set percentage of ethanol in gasoline production.
  • 54 senators — including several Republicans — recently signed a resolution supporting carbon dioxide controls.

Renewable Energy Moving from Environmental to Economic Choice

  • A sharp increase in oil prices combined with steady decreases in renewable energy costs mean that fossil fuels no longer have a clear cost advantage.
  • Low interest rates have created an attractive environment for renewable energy sources that require large capital investments.
  • Venture capital investment in clean energy jumped from $300 million to $2 billion between 1995 and 1999.
  • Fortune 500 companies are now moving to renewable energy for economic reasons rather than simply to comply with regulations. Michael Bevan used DuPont as an example. As recently as 2000, their business relied entirely on fossil fuels. Today they are 15 percent reliant on renewable energy, with plans to increase to 25 percent.
  • The move away from an energy-intensive manufacturing economy has resulted in energy efficiency gains.

The Next Round of Energy Investments

National Trends
  • It is unlikely that any one source of renewable energy will become dominant.
  • A diversified energy industry also makes the nation less vulnerable to an interruption in the supply of any one energy source.
  • Although tough economic times and record federal deficits have resulted in reduced investment in energy research and development generally, federal investment in renewable energy is up slightly.
Massachusetts Issues
  • The last round of power plant investment was dominated by natural gas. As a result, almost half the electricity produced statewide comes from natural gas; more than 80 percent in greater Boston.
  • More power will be needed here by 2010; decisions about how that power will be generated are being made now.


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