CleanTech Opportunities On The Rise

No question, buildings are energy hogs.  However, “CleanTech” innovations are leading to significant gains in energy efficiency and reduced consumption – not to mention major cost savings for owners and investment opportunities for both venture capital money and institutional investors.

The EPA estimates that buildings in the United States account for approximately 40 percent of total energy consumption and carbon dioxide emissions, 13 percent of water use and 160 million tons per year of construction and demolition debris.  These are staggering numbers and clearly create a need, and an opportunity, for innovative technologies and practices. 

Technologies already exist, and are being further developed and enhanced, to address these needs and seize these opportunities.  These “CleanTech” technologies allow for the operation of smart buildings capable of automatically regulating temperature and other energy consumption by factoring in environmental conditions. 

For example, automated HVAC and building management systems factor in the weather forecast and humidity levels, as well as specific building characteristics, such as heat retention, solar gain and internal air flows, to maximize efficiency gains.  Once “smart”, a building can generate significant savings for owners and tenants, as well as wider benefits related to reduced energy consumption and pressure on local power grids.

Due to these benefits, “CleanTech” has been a hot area for investment, although it too has seen its share of struggles in raising capital in recent quarters, to  However, a number of market observers who closely follow CleanTech predict that 2011 and 2012 will lead to a number of excellent opportunities for both new venture capital to support additional innovation, as well as consolidation and growth in proven technologies.

Developers and managers of commercial buildings are already tuning into the opportunities generated by “CleanTech”, and in some cases, municipalities are beginning to incorporate the efficiency requirements into their local ordinances. The immediate cost savings associated with CleanTech implementation, coupled with the long term social benefits of enhanced energy efficiency and reduced consumption, will only lead to greater investment opportunities.  Accordingly, getting involved in CleanTech now seems to be a smart move.