75 Green Businesses You Can Start to Make Money and Make a Difference. Glenn Croston
help wind entrepreneurs, including permitting requirements, state incentives, the cost of power, and wind in the region.
Another form of small wind power is being designed and installed in architecture on buildings in the suburban and urban landscape. Rather than towers, wind turbines can be fixtures on buildings, capturing the wind gusting through the urban landscape. Ongoing experimentation in this new side of wind is expected to continue to improve output and lower costs. Aerovironment in Monrovia, California, and Aerotecture in Chicago, Illinois, are developing turbines to be installed on commercial buildings and other urban structures.
Types of small-wind-power opportunities include:
Given the early stage of the small wind sector and the small scale of the systems involved, this field is suited to smaller entrepreneurs looking for a way into wind power. Becoming a small-wind distributor or installer is an accessible option, especially for individuals experienced in working with mechanical or electrical systems. As more wind installations start popping up, people’s reluctance likely will diminish and the market should grow, similar to photovoltaics. There is plenty of room to grow and plenty of wind to go around.
OPPORTUNITY 3 Biodiesel Production
| The Market Need | Renewable fuels |
| The Mission | Join in the biofuel revolution with small-scale biodiesel pro duction |
| Knowledge to Start | Autos, fuels |
| Capital Required | $$ |
| Timing to Start | Months (for small-scale production) |
| Special Challenges | Source and cost of feedstocks as well as regulations for sales |
When it comes to transportation fuels, oil is king. In 2005, the world consumed about 30 billion barrels of oil (Energy Information Administration, eia.doe.gov), most of it for transportation, with millions of new cars coming on the road in the developing world. The consumption of oil accelerates climate change, pollutes the air, and generates geopolitical headaches spanning the globe, creating a massive opportunity for entrepreneurs working to change this with the production of biofuels such as biodiesel derived from plant or animal products.
INDUSTRY INFO
For more biodiesel industry information and statistics, see the National Biodiesel Board’s website at www.biodiesel.org.
The number of diesel cars introduced in the United States is increasing as awareness grows of the advantages of diesel. Petroleum diesel produces more power per gallon than gasoline, is more energy efficient, and uses simpler engines (without spark plugs or a distributor) that require less maintenance. However, petroleum diesel produces significant pollution and is nonrenewable. Biodiesel is superior to petroleum diesel in many ways. Produced from vegetable oils or animal fats, biodiesel burns more cleanly and is a renewable fuel that can fight climate change. Biodiesel can be produced from used cooking oils; grease; palm, canola (called rapeseed in many countries), soybean oil; or just about any other plant that makes oil. Unlike straight vegetable oil, biodiesel is chemically modified to suit engines right out of the factory, and diesel engines have run for hundreds of thousands of miles on the fuel. It is also nontoxic (unlike petroleum diesel or gasoline), and can be blended with petroleum diesel to increase engine lubrication. By improving engine lubrication, biodiesel fuel reduces engine wear and keeps them cleaner, reducing maintenance costs and breakdowns.
ECO-TIP
Straight vegetable oil can fuel a car for a short time, and it looks neat to pour vegetable oil in your car and drive around, but this nonstandard fuel quickly burns out engines that are not specifically modified to handle it.
The United States consumes about 58 billion gallons of diesel fuel and related petroleum products each year, and the National Biodiesel Board estimates that U.S. demand for biodiesel was about 225 million gallons in 2006. Production of biodiesel is increasing rapidly but remains only 0.4 percent of overall consumption. It has been estimated that even if the United States converted all its cooking oil and animal grease to biodiesel, this would cover only a small fraction of our needs. Planting all spare farmland with biodiesel crops such as canola or rapeseed could increase biodiesel’s share of our total diesel use to only between 10 and 20 percent. Entrepreneurs do not need to provide our entire diesel supply from biodiesel to build a business, however. Displacing even a small part of the oil we use can still be a successful business.
ECO-ISSUE
Although biodiesel has a lot of advantages, it does have a down side or two. Compared to petroleum diesel, biodiesel becomes a gel more easily at low temperatures, requiring specialized engine modification in colder areas.
IN THE LONG RUN
Competition for soy between biodiesel, food, and other uses is driving up its price, causing inflation and controversy about the cost of food. If the rising cost of soy keeps the price of biodiesel high, it will limit the market in the long run, driving production toward alternatives (see Opportunity 74).
Large biodiesel producers include agribusiness giants like Archer Daniels Midland (ADM), which is positioning itself as a potent global force in biodiesel and ethanol production. Regional production also is beginning to produce biodiesel locally using the feedstocks available where the fuel will be used. To address this market, regional producers—such as Pacific Biodiesel in Hawaii and Imperium Renewables in the Northwest—are developing production capacity around the country.
BEYOND SOY
Soy beans are the mainstay of U.S. biodiesel production, but the soy plant is neither the only oil-producing plant nor the best one. In Europe, canola is the main source of biodiesel, and a variety of other crops produce oil. There are ongoing opportunities in each region to grow a variety of crops for fuel. Having fuel-specific crops can help avoid the food-fuel controversy. ❦
GREEN MARKETS
Companies trying to improve their environmental impact are fueling their fleets with biofuels. This creates a great market for biodiesel fleet sales, guaranteeing a steady income with a good relationship.
Big players like ADM are hard to beat on price alone, with market power and economies of scale on their side, but innovative small businesses can compete by identifying local or regional niches. Establishing a unique brand is one way to carve out a market niche, as is the case with BioWillie biodiesel, endorsed and promoted by country music legend Willie Nelson. Biodiesel enthusiasts may prove loyal to a local brand with which they identify. Another way to differentiate your company is to use sustainable methods, such as avoiding pesticide use, competition with food, or clearing new land for fuel crops.
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