Trends in Energy Analysis, from the BE 2008 conference

One of the presentations at the Bentley BE 2008 conference I had a chance to view was by Drury Crawley; Team Leader of Commercial Buildings R&D at DOE (Dept. of Energy).

(Side note: his title is WAY long……but he knows it, too….).

He covered trends in energy analysis, high performance buildings, and new business models for sustainability in buildings and facilities. I thought his high – level view of where the buildings / facility industry is going was very interesting, and it re-iterates a number of issues that I have seen in my work. Key themes included:

• Consolidation of the Buildings industry (mergers & acquisitions)
• Worker Health / Productivity / Comfort
• Green House Gas (GHG) inventory and management (note: 39% of carbon emissions come from buildings….)
• Green Buildings
• Zero Energy Buildings (ZEB)
• Energy Services Companies (ESCOs)
• Bioterrorism

Some thoughts on his presentation and viewpoints are below:

Water

Evaluating the impact of buildings on WAGES (Water, Air, Gas, Electric, Steam), Crawley cited figures indicating that buildings (including the electric power required) account for 45% of water use in the US alone. Not including electrical power, domestic use is 100 gpd per capita, and total water use considering the impact of electrical power generation is 140 Billion gallons a day. While most of the industry is currently focusing on driving down energy use and costs in buildings as a first step in achieving sustainability, it is clear that the ‘delta’ for improving water resource conservation is very high, and should also provide a strong market driver for adoption of technologies to maximize conservation and efficiency of water use in buildings.

Building Simulation

Similar to the advent of intelligent modeling driving adoption of green technologies (which I posted on here), Crawley maintains that building simulation allows for earlier decision making in the design – build process, particularly as it relates to energy use and analysis. In regards to technology, he sees the following major drivers: visualization, risk assessment (particularly for insurance), interoperability between systems, toxicity of the built environment, calculating ‘embodied’ energy via life cycle assessments (LCA), and integration of tools for thermal analysis, acoustics, and CFD for examples. It is clear that there is no one toolset to allow owners or consultants to conduct building simulations, and there is still a very strong need for training in simulation methodologies; not just the technology itself.

Another interesting point was that Green buildings and accreditation was driving the use of these simulation methodologies and tools; not higher energy costs.

Websites for more info on DOE’s commercial building R&D:

Buildings.energy.gov

http://www.energyplus.gov/

http://www.highperformancebuildings.gov/

Read more!

Investment Perspectives for the Water Sustainability Market

Have been discussing investment opportunities in the cleantech space with a number of investment groups, particularly in the water sector, which has not received much buzz or press to date. But given critical water demands here in the US (see the recent drought and related policy issues in the southeast) and overseas (need for consistent potable water supplies, as well as for agriculture), it is apparent that this sector within 'cleantech' has significant room to grow.

One investment group that is solely focused on the water sector is XPV Capital in Toronto Canada. I had a chance to talk with Khalil Maalouf, who is a partner, about the market conditions and emerging trends in the water sector. They are focusing solely on investments in water -related ventures, and have a 'book' of 300 or so investment opportunities worldwide in this general sector that they are tracking. Khalil generally described their interest in the following broad categories (I am paraphrasing to a certain degree; my notes in italics):

• Energy Efficiency of treatment & distribution systems
• Security (I am assuming it could be both physical and IT related security)
• Scarcity of Supply (identification of new sources, cost & time effective means of capture)
• Waste minimization (sludge management / recycling)
• Materials substitution (less toxic and less use of chemicals for treatment)

(I think another segment for investment opportunities is Information Technology; those required to find, capture, treat, distribute, recycle & reuse, and optimize systems throughout the water lifecycle)

Following XPV's definitions (and those of others) it would indicate that the market sector fo water sustainability opportunities itself is very broad. So what segments might catalyze interest and growth? I think energy efficiency technology to develop water supplies (includes technology such as desalination) and for water treatment may get traction, especially in arid areas such as the Middle East.

Following a recent post I wrote (link), another area of investment opportunity could be those technologies to allow for assessing, managing, and optimizing water use throughout the lifecycle of a product (consumer, construction, and industrial would be important verticals). This "embedded water" or "water footprinting" concept seems to have caught on in EMEA already; it remains to be seen how soon it follow similar concepts for CSR and sustainability reporting here in the US.

Read more!

Sustainability in the Water Sector

I read an interesting article about water sustainability; link is here. Terminology is also interesting: “Water Footprinting” and “Embedded Water” are phrases that are used; perhaps there is opportunity to brand this issue and break it out from other sustainability topics….

The author talks about impacts on water resources which are not adequately reflected in consumer products. Some examples:

- It takes 8000 liters of water to make pair of leather shoes,

- 2400 liters to make a hamburger, and

- 170 liters to make a pint of beer (Ok, so that one is not as compelling to some of you…)

In particular, the construction industry is identified as a market where there is a need for more enlightenment. This industry already incorporates the use of water saving products & devices; utilizes design & construction methodology to promote and achieve sustainability accreditation (i.e. LEED and BREAM); but is not on the vanguard of understanding the demands of water resources to manufacture supplies, equipment, and fixtures.

As ‘sustainability’ continue to develops in awareness, it would seem that specific areas (water, GHG, health & safety, toxics mgt, etc) will evolve and become well defined areas; thus driving more awareness, research, and development of tools that are specific to those problem sets. Again, lifecycle assessment may serve an important role in identifying and quantifying water resource impacts, so that decision makers and consumers have complete information upon which to make design and construction decisions.

Read more!