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Clean Advice Becomes an Export

Michael Kanellos: October 24, 2008, 9:05 AM

What does a company do after it implements programs to drastically cut greenhouse gas emissions and energy costs? It sells its life story.

NEC will soon launch a consulting division that will provide best practices on energy efficiency, waste management and greenhouse gas reductions, Ryosuke Ugo, chief manager of the environmental management division, and Koichi Inagaki, a manager in the group, said in a private meeting at NEC headquarters on a recent swing through Japan.

The division’s advice will largely revolve around NEC’s own experience in reducing its own carbon footprint. NEC has set a goal of becoming carbon neutral by 2011: It wants the carbon produced in manufacturing and using its products to equal the amount of carbon reduced by using them to replace travel or older, less efficient machines. (Put another way, NEC wants to halve its carbon output.)

In 2008, carbon output will come to 2.8 million tons while reduction will come to just over a million tons. While that’s far from mission accomplished, it represents a 50 percent improvement since 2005.

Some of the key tools: Web conferencing instead of travel, virtualization, deployment of blade servers, time shifting of server loads, more energy efficient ballasts in lights, RFID instead of bar codes, reflective films on florescent bulbs, thin client computing, better air conditioner in datacenters (air conditioning accounts for 44 percent of the power in their datacenters). Bioplastics, however, are in limbo because of the food controversy.

Expect others to follow. Nearly every conglomerate has set emissions reductions goals. Hitachi has set a goal of reducing its own carbon emissions by 100 million tons from present levels by 2025.

Is A123 Toast? Is GM Going With Another?

Michael Kanellos: October 24, 2008, 5:46 AM
One of the great dramas of green transportation will unfold over the next few weeks. General Motors has promised it will announce the vendor it has chosen to supply batteries for the Chevy Volt, the gas-electric hybrid on which GM has banked a good part of its future. The contest has been between two groups: one lead by LG Chemicals and another led by startup A123 Systems and Continental. GM is an investor in A123, which has given it something of an edge. However, it hasn't been smooth sailing for A123 lately. Earlier in the year, the company reported a big drop in revenue from a large customer. Black & Decker has been the companies biggest customer and the tool maker has experienced a big drop in sales itself. A123, however, said Black & Decker has been buying as many batteries as A123 could ship. Unconfirmed rumors swirled that the relationship had become a little rocky, steadfastly denied by A123. This week, Reuters reported that LG has won the contest and that it will be announced in November, possibly at the L.A. Auto Show. Nonetheless, in the same week that General Electric (corrected) touted its investment in A123, the company pointed out that it has invested in the company six times for a total of $55 million, and $30 million of that $55 million just went to A123 as part of a Series E financing. Losing the GM deal would be a disaster for A123. Getting the contract would give it a huge boost. We shall know soon.