cleantech
cleantech insights

Is 5 the magic number for LEDs?

Emma Ritch

Lighting is responsible for about 7% of the carbon emitted by the U.S., and yet nearly all the lighting in buildings comes from technologies that are 5% to 30% efficient, leaving vast room for improvement. Consider for a moment how that compares to other energy users in a building—the energy conversion efficiency of heating is typically 70%, while electric motors are 85% to 95%.

That’s why there’s so much interest in LEDs, which are just a fraction of installed lighting sources today but expected to make up 80% of the general illumination market by 2020. Today LEDs are 20% to 30% energy efficient, but that’s improving at a rapid pace. There are also design and control advantages to LEDs that increase the overall efficiency of the system. However, the upfront cost is still much higher than traditional lighting technologies, and many manufacturer claims about the longevity of LEDs have yet to be seen in real-world applications.

But the buzz about LEDs is only getting stronger. Much like Moore’s Law for integrated circuits, Haitz’s Law says that process optimization is cutting the cost per lumen of LEDs by a factor of 10 every 10 years while the amount of light …

Another win for lighting controls as Redwood closes $15M round

Emma Ritch

Fremont, Calif.-based startup Redwood Systems revealed today it closed a $15 million Series B round for its LED lighting control system, coming on the heels of a $12.7 million Series B for Lumenergi, a lighting controls startup based in nearby Newark, California.

The two companies are illustrative of a fast-growing sub-sector within lighting that’s gaining investor support and market adoption. Lighting controls companies secured 16% of VC investment within lighting from 2005 to 2010, but that’s jumped to 21% in 2009 and 2010 to-date.

Source: Cleantech Group analysis

Why all the interest? Lighting is considered the low-hanging fruit for energy efficiency retrofits, as illumination accounts for  44% of electricity in U.S. office buildings and a quarter of the energy in residential buildings–roughly the same energy consumed by cooling. Lighting controls–including software, sensors, drivers, fixtures, and intelligent ballasts–can maximize energy efficiency of multiple lighting sources, with some vendors claiming up to 75% reduction in energy use due to controls technology.

Redwood offers a unique lighting control system that combines power and control of LEDs over the same low-voltage data cable for office buildings and data centers. While adoption of LEDs is projected to increase to about 80% of the …

Small step for Bridgelux, giant leap for US LED industry?

Emma Ritch

Livermore, Calif.-based lighting startup Bridgelux opened its U.S. factory last week, emphasizing the potential that still exists for LED developers in the United States to be competitive with China.

The key word? Potential. Only 20% of the U.S. factory is dedicated to serving U.S. customer demand, COO Karl Chicca told me. The remainder is focused on R&D and trials of LED materials, chips and packages that can produce brighter, more compact and lower-cost lights.

Chicca said the goal is to increase production at the factory to meet domestic demand…if it comes. Otherwise Bridgelux will use Livermore for R&D and manufacturing its most proprietary technology, while using partners in Asia for the bulk of production. So much for the good news that Bridgelux’s factory is the first new fab to open in 25 years in the San Francisco Bay Area, right?

The plant has brought has 170 employees and a $3.6 million-a-month payroll to Livermore, with plans to add 100 staff members in the next year. But Bridgelux CEO Bill Watkins said Bridgelux could have a significantly larger impact on the community, given the right government policy.

“It’s more important than jobs, it’s about building an industry, people, ” Watkins said.…

Big promises, but can lighting control systems deliver?

Emma Ritch

Lighting control systems are a hot sector within cleantech. The technology holds the promise of up to 75% reduction in energy use with little, if any, change in occupant behavior. Lighting accounts for about 20% of electricity use in the U.S., for example, so adoption of LCS can have a significant impact on worldwide energy consumption and emissions.

Source: U.S. Department of Energy Buildings Energy Data Book, Sept. 2008

There is significant buzz around the four startups that have come out of stealth in the past year—Adura Technologies, Redwood Systems, Daintree Networks and Cavet Technologies—as well as startups with slightly longer track records, Encelium Technologies and Starfield Controls. There are numerous other startups we’re tracking with complementary and tangential technology solutions, including Lumenergi, Digital Lumens, Juice Technology, Octus Energy and Echoflex.

ESCOs and major lighting corporations are amongst those in trials with LCS startups, and many LCS solutions are near commercial deployment thanks to the overlap in expertise with the IT sector.

Yet for all this attention, the LCS sector is still very early. Estimates are that fewer than 1% of buildings have advanced LCS installed. And there has been little …

Choosing energy audits wisely

Emma Ritch

It has the makings of a reality show on the Discovery Channel. Let’s call it When Energy Audits Go Bad. Each week, you can tune in for tales of predatory energy auditors that seek to sell high-cost appliances instead of economical and effective solutions.

The real-life tale I’m going to tell you isn’t that bad. But it does illustrate the need in the building efficiency sector for regulations that protect consumers and businesses.

A well-known investor in the cleantech sector, Neal Dikeman, sent me a link to his latest blog post that tracked his attempts to improve the energy efficiency of his new home. He went for the energy efficient windows and added insulation. And he hired a company to perform an energy audit. As he tells it, they offered to sell him a $950 solar attic fan that could result in marginal improvements, and overlooked low-cost solutions such as weather-stripping.

With his extensive background in finance and energy, Dikeman knew the suggestions didn’t make sense for him. He declined to buy the fan and blogged about his dissatisfaction, and the company is now offering to conduct a more-thorough audit. All’s well that ends well, right?

But this incident …

Energy Efficiency and Elevator Etiquette

Emma Ritch

Much of the cleantech research I do focuses on innovative technologies, advances to existing appliances, and new software solutions that enable greater levels of control. But in nearly every conversation I have with ESCOs such as Johnson Controls or Schneider Electric, they emphasize the huge factor that human behavior plays.

This was driven home to me when our office building in downtown San Francisco announced an Energy Alert Day. In order to conserve energy, the facility manager was shutting down two of the 12 elevators that serve the 20-story building.

My first thought was that the actual impact of energy efficiency would be negligible, while the inconvenience factor would be great. I frequently ride the elevator alone to our office on the 10th floor, and so do many of my colleagues. We rarely have to wait more than a minute for an elevator, and taking 17% of the elevators offline would likely mean the wait time would increase by a similar amount.

My colleague, David Hague here at the Cleantech Group, did some searching and found an online calculation for the energy used per floor by elevators. A 20-floor roundtrip consumes 100 Wh, approximately the same energy used in …

The Wal-Mart Effect

Emma Ritch

Wal-Mart’s ambitious plan to green its supply chain has trickled down to Redwood City, Calif.-based environmental and energy management startup Hara. And to hear Hara’s CEO Amit Chatterjee tell it, this is just the beginning.

Call it the Wal-Mart Effect. The retailing giant announced plans in February to cut 20 million metric tons of greenhouse gas emissions from its supply chain by the end of 2015. The catch is that it’s Wal-Mart’s suppliers making the changes to how they do business.

“It resulted in suddenly a shock across commodities manufacturing players,” Chatterjee told me. Manufacturers were left asking “how does my supply chain look, and how does it fit to Wal-Mart’s standards?”

“Wal-Mart has shaken the foundation of a lot of companies that never cared about this before,” Chatterjee said.

In comes Hara. The startup’s carbon accounting software can help companies track consumption of energy and natural resources across global supply chains. That visibility into consumption and emissions is the first step in reducing the use of energy, water and other resources, says Hara’s Chief Green Officer Michel Gelobter.

Just last week the startup revealed its first publicly announced deal linked to the Wal-Mart Effect. Toy maker Hasbro is …

Google-backed Makani seeking $25M for wind tech

Emma Ritch

Alameda, Calif.-based wind-power startup Makani Power is raising $25 million to develop and test the 1-megawatt prototype of its technology that uses kites to harness wind energy. Details in the Pitch of the week.

Filter technology promises 30% energy reduction for HVAC

Emma Ritch

Aspen Air is seeking $3 million for its high performance air filtration that improves air quality and energy efficiency. Details in the Pitch of the week.

France reaches cleantech tipping point

Emma Ritch

Government policy, private investment and innovative startups align to make France a contender to be a market leader, says Emma Ritch after the Cleantech Forum XXVII in Paris.