The Morning Feedstock: June 11, 2008

Iberdrola chairman Ignacio Sanchez Galan argues this morning in a Financial Times interview that oil and gas should be removed from the power generation sector. Galan argued that oil and gas should be reserved as industrial inputs, such as for plastics and polymers, but that “we do have alternatives for energy production.” As such, the power companies are best suited to provide leadership on reducing reliance on fossil fuels. Joachim Betz, CEO of Weidmuller - a German electronic components manufacturer, agreed, saying “we don’t see at the moment any chance of replacing plastics with something not based on oil.” Still, Galan’s statements here tend a bit towards the self-promotional side. Iberdrola is the world’s largest wind power producer. Also, this argument is more than a little shortsighted. A large - and growing - number of companies are developing ways to commercialize non-oil based plastics and other materials. Dow and Crystalsev will produce polyethylene made from sugarcane ethanol in the next three years, Novomer - a startup - is using chemistry to develop green materials, and even the potato farmers are getting into the action. So, you know, just a quick reality check for everyone who thinks greentech is just about power gen.

Fuel protests in Spain and Portugal continued into their third day this morning. Talks between the truck drivers unions and government bodies were suspended today on news that two truckers died in separate, strike-related incidents. The protests have also moved across the border into France, where French drivers are now refusing to cross the Spanish border in a show of support and solidarity. Rising fuel prices, coupled with government unwillingness to mitigate the price increases, led to the strikes, which now threatens to deal a severe blow to the already reeling Spanish economy. Large auto makers in the country, including those owned by Mercedes and BMW, are shutting down operations temporarily because of a parts shortage caused by suspended shipments. Meanwhile, the British Government, is preparing to absorb a four-day, nationwide protest by Shell’s tanker drivers. Shell, which provides as much as 10 percent of the UK’s petrol, and the drivers’ union have reached an impasse over a salary increase. Meanwhile, fuel protests have spread wherever prices have skyrocketed - i.e., everywhere - with truckers in Hong Kong, India, and Nepal striking over the rising cost of fuel. Sound familiar? The truck drivers’ union in South Korea will vote soon on a strike action. One can only guess what happens when those strikes reach the U.S.

And finally today, on a bit of cheery news, thin film production equipment manufacturer Oerlikon has filed a patent infringement lawsuit against Sunfilm AG. But there’s a problem here. Sunfilm, a German company, is not the OEM of its production equipment. The company buys its equipment from Applied Materials - Oerlikon’s chief competitor in the race to supply the growing thin film industry. The lawsuit accuses Sunfilm (AMAT?) of infringing European Patent EP 0 871 979 B1, which has to do with the fundamentals of micromorph tandem cell technology. Oerlikon’s timing is also interesting. The lawsuit was filed on the day before the Intersolar conference in Munich - the industry’s largest - and is sure to cause some awkwardness at the annual LDK Beer Garden and Schnitzel Roast. Stay tuned…