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A RESPONSIBLE STRATEA RESPONSIBLE STRATEA RESPONSIBLE STRATEA RESPONSIBLE STRATE
An insight into technologAn insight into technologAn insight into technologAn insight into technolog
2015201520152015
Aurélien Mottet
Academic Thesis submitted in fulfillment
of the requirements for the degree of
Master of Science in
20/08/2015
A RESPONSIBLE STRATEA RESPONSIBLE STRATEA RESPONSIBLE STRATEA RESPONSIBLE STRATEGY GY GY GY FORFORFORFOR SUSTAINABLESUSTAINABLESUSTAINABLESUSTAINABLE
An insight into technologAn insight into technologAn insight into technologAn insight into technologyyyy, economy and social behavior, economy and social behavior, economy and social behavior, economy and social behavior
2015201520152015
Aurélien Mottet - University of Lausanne
Academic Thesis submitted in fulfillment
of the requirements for the degree of
Master of Science in Management
20/08/2015
SUSTAINABLESUSTAINABLESUSTAINABLESUSTAINABLE ENERGENERGENERGENERGYYYY:::: , economy and social behavior, economy and social behavior, economy and social behavior, economy and social behavior
PREAMBLE
I would first like to thank God, for He provided me with the physical, intellectual and
financial capacities to achieve this Master of Science in Management program.
I am grateful to my wife who was of great support during these two years that have seen a
lot of events and changes in our lives: our wedding, the birth of a wonderful little girl and
an academic success.
My gratitude also goes to the academic institutions of the University of Lausanne and to
my supervisor, Pr. Ulrich Hoffrage, who provided significant comments and support.
I have learned a lot during this program, and I did not expect to embrace such interest into
the themes of ethics, social responsibility and sustainability. When one attends economic
courses, he would expect to hear about, finance, figures, money, profits, etc. But I was
stimulated to have a wider view of management, to develop that critical thinking which
does not to jump on fast and easy conclusions. These challenges have raised my awareness
about the role of economy in the society, about the identity of money and about what I
want my role to be in this system. A wise friend of mine taught me that money has no
value; money is just an instrument to measure the value of something, as the metric
system is an instrument to measure distances. As my perception of economic principles
evolved from "making money" to "making money in a good way", I developed a conviction
that we can do better than just "good" and I advocate that a sustainable economic system,
ultimately, should be "making and using money the right way".
From this new approach, I consider that the economy is to be managed and controlled in
conjunction with our environment so it improves our life, comfort and health, generation
after generation. I think that distorted social values and an unbridled race after profits
have driven individuals to dedicate half of their life spending their health for money and
the other half spending their money to recover health. This culture impacted our
civilization and on our natural environment. It has reduced our resources on which our
society has its foundation and jeopardized the future of the forthcoming generations. This
is not wiser than the man who saws the branch on which he sits.
Changing the way we think about how our lives are interconnected, our role in a society,
and our place in the natural environment can drive the necessary mindfulness to make
economic principles compatible with ethical, morale and sustainable values. Because our
survival as a species eventually depends on nature, which has been altered by human
economic activities, I feel our civilization is at a turn and our economic and social behavior
models need to evolve towards a new rationale. Business ethics, business and human
rights, corporate or individual social responsibility, ecology, renewable energies and green
technologies are some of the concepts that can be deployed to reinvent our circumstances
and restore a viable environment. This is my humble contribution to that vision, although
just a drop in the sea. But the sea is made of drops...
"Some call me Nature. Others call me Mother Nature. I've been here over 4.5 billion years.
22'500 times longer than you. I don't really need people. But people need me. Yes, your
future depends on me. When I thrive, you thrive. When I falter, you falter. Or worse.
But I've been here for eons. I have fed species greater than you. And I have starved species
greater than you. My oceans. My soil. My flowing streams. My forests. They all can take
you. Or leave you.
How you choose to live each day, whether you regard or disregard me, doesn't really
matter to me. One way. Or the other. Your actions will determine your fate. Not mine. I am
Nature. I will go on. I am prepared to evolve. Are you?"
Nature is speaking.
A Conservation International initiative
TABLE OF CONTENT
EXECUTIVE SUMMARY 1
INTRODUCTION 2
CONTEXT 2
OBJECTIVE OF THE STUDY 2
ENERGY AND POLLUTION 4
THE FACTORS OF GLOBAL POLLUTION 4
DEFINITIONS 4
DRIVERS OF POLLUTION 4
THE NEED FOR ENERGY 5
THE USE OF ENERGY 6
ENVIRONMENTAL POLLUTION 7
AIR POLLUTION 8
WATER POLLUTION 9
SOIL POLLUTION 10
THE CONSEQUENCES OF POLLUTION 11
ENVIRONMENTAL IMPACT 11
SOCIAL IMPACT 12
ECONOMIC IMPACT 13
THE NEW TECHNOLOGIES ALTERNATIVES 14
NEW TECHNOLOGIES 14
ENERGY PRODUCTION 15
SOLAR ENERGY 15
ELECTRIC MOTOR 18
ENERGY CONSUMPTION 20
CONSUMER CHOICE 20
CONSUMER BEHAVIOR 21
RECYCLING TO ENERGY 21
WASTE PLASTIC PYROLYSIS 21
PLASMA ARC GASIFICATION 23
THE BARRIERS TO SUSTAINABILITY 25
TECHNOLOGICAL BARRIERS 25
ECONOMIC BARRIERS 27
SOCIAL BARRIERS 27
POLITICAL BARRIERS 28
STRATEGY FOR SUSTAINABILITY 29
THE SUSTAINABLE STRATEGY 29
STRATEGY OBJECTIVES 29
DEFINITION OF SUSTAINABILITY 29
CRITERIA OF SUSTAINABILITY 31
PRODUCTION 32
TECHNOLOGICAL STRATEGY 32
ECONOMIC STRATEGY 32
SOCIAL STRATEGY 33
POLITICAL STRATEGY 34
CONSUMPTION 35
TECHNOLOGICAL STRATEGY 35
ECONOMIC STRATEGY 36
SOCIAL STRATEGY 36
POLITICAL STRATEGY 37
RECYCLING 38
TECHNOLOGICAL STRATEGY 38
ECONOMIC STRATEGY 39
SOCIAL STRATEGY 40
POLITICAL STRATEGY 40
A ROADMAP TO A SUSTAINABILITY 41
THE SUSTAINABLE VALUE FRAMEWORK 42
THE STRATEGIC SUSTAINABILITY FRAMEWORK 43
THE ITERATIVE MODEL FOR ENERGY TRANSITION 44
STRATEGIC RECOMMENDATIONS 45
SUCCESS STORIES 46
M-KOPA SOLAR 46
TESLA MOTORS 48
PLASTOIL AG 50
ADVANCED PLASMA POWER LTD 51
THE ALTERNATIVE STRATEGY IMPACT 52
ENVIRONMENTAL EXPECTATION 52
SOCIAL EXPECTATIONS 53
ECONOMIC EXPECTATIONS 53
LIMITATIONS TO RENEWABLE ENERGIES 54
CONCLUSION 56
APPENDIX I
SOURCES I
A RESPONSIBLE STRATEGY FOR SUSTAINABLE ENERGY:
An insight into technology, economy and social behavior
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
1
Executive summary
It’s widely recognized that we are hugely overspending our current
budget of natural and energy resources and that, at the existing rates of
their exploitation, there is no way for the environment to recover in good
time and continue performing well in the future. Environmental
sustainability is one of the Sustainable Development Goals proposed by the United Nations
as sustainable development standards by 2015; however, despite a dramatic situation,
close to be irreversible, environmental sustainability is and will remain challenging if it is
not embedded within a global vision which also associates economical and social
sustainability, with the support of technology for a transition towards renewable energies.
As renewable energy technologies are mature and plans are realistic, it appears that the
most significant barriers are political and social. At the edge of a new era, we need to write
human history with new economic and social models, not driven by an expected lack of
fossil energy, but by a voluntary transition based on a multidimensional long-term
economical, environmental and human perspective that will bring the salutary change
from fossil energy to renewable energy, from unrestrained consumption to responsible
consumption, and from energy waste to energy recycling.
Because goals only set a direction, the IMET© framework1 proposes an iterative and
cyclical transition model as a strategy which pleads for fast multiple and successive
changes, triggered by various initiatives in each sphere of influence, rather than an abrupt
global revolutionary change. The IMET© framework identifies four spheres of influence to
promote a change that are beneficial to the environment, the economy and the society:
• The technical sphere: commands the feasibility of any initiative
• The economical sphere: motivates the action through profitability potential
• The social sphere: drives the change for a mindfulness behavior
• The political sphere: holds the power to validate and enforce initiatives
Due to complex interactions and mutual influence between them, what emerges as a
realistic global strategy is a compelling argument in favor of balanced strategies, based on
technological innovation, financial support, social and individual responsibility, and
progressive legislation, that merge profitability concerns with ecological consciousness,
allowing for controlled sustainable development and stable, long-term economic success.
1 IMET: Iterative Model for Energy Transition
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
2
Introduction
Context
As consumption levels have increased, ways of communication have been revolutionized,
social and economic interaction have grown, and pollution has reached unrivaled levels,
the certainty that History is coming to an imminent turn has stimulated major
technological, social and political changes in the last two decades.
A new era is at sight, even already there. Experts have named it the anthropocene,
proposed and accepted as a new geological time scale which begun when human activities
started to have a significant global impact on Earth's ecosystems, resulting in biodiversity
decline, deforestation, pollution and climate changes.
Following early whistleblowers who sounded the alarm on pollution and climate change,
actions have taken place and translated into innovative technologies and political decisions
at national and global levels. New legislation and public opinion have also impacted the
economy by driving organizations to consider their responsibilities.
However, the results of these initiatives remain weak and the trend has not reversed yet.
Despite so-called political commitments and the availability of technologies, a global
agreement has not been reached and, to date, no sustainable economic system has
emerged. Such a system would require not only addressing many dimensions of high
complexity, but also need to take in considerations the various interests of each country.
Incompatible objectives at country level is also found at corporations' level, as their social
responsibility policies might largely differ from one another, depending on the nature of
the industry and on the goals of each company.
Objective of the study
Sustainable technology in the energy sector is based on utilizing renewable sources of
energy such as solar energy, wind power, hydropower, geothermal energy and bio energy.
However, more than 85% of the global production of energy is still fossil-based. The energy
transition addresses this proportion and aims to favor the production and use of
renewable energy, with the challenge of making the right choice on technologies that have
the potential to persist in the future.
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
3
The objective of the study is to explore the possibilities and opportunities to make a
change in managing the current environmental issues. It is an attempt to identify strategies
that will favor sustainability, expressed as a viable economy in a clean environment.
In a first step, we will draw a picture of the current situation in terms of pollution and
factors that have driven our ecosystem deterioration to such levels.
We will then describe some of the technologies that offer an alternative for a sustainable
economy, as well as their potential impact on the environment. Since there are countless
alternatives available, we have selected four technologies that have a high potential: solar
energy, electric engines, waste plastic pyrolysis and Plasma arc gasification.
Before exploring a strategy for a global sustainability, we will explore the barriers which
prevent the development and implementation of green technologies. The strategy will rely
on producers, consumers and institutions, and will demonstrate its long-term benefits. The
approach of the study is to identify the major drivers to focus on for a change, to explore
the alternatives and to propose a strategy for sustainability based on four axes:
• Technology
• Economy
• Society
• Politics
Although one may consider product design and product consumption should be addressed
in a study about sustainability, as the scope of the study focuses on energy, the reasoning
is circumcised to three main sectors that are sources of pollution:
• The production of energy
• The consumption of energy
• The recycling to energy
Based on a selection of alternative technologies, and recent theories about sustainability,
this strategy will be illustrated through the examples of some successful initiatives in
different industries.
Through this study, we want to contribute to rise of a global mindfulness about the
effective existence of alternative ways of producing and consuming energy. We believe we
can reverse the trend and that it is our global and individual responsibility to drive the
convergence towards sustainability.
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
4
Energy and pollution
The factors of global pollution
DefinitionsDefinitionsDefinitionsDefinitions
Pollution is defined as the presence or introduction into the natural environment of a
substance or contaminants that cause adverse change, and have harmful or poisonous
effects to living organisms. Pollution can be of various natures such as light pollution, noise
pollution or energy pollution and is generated by pollutants, which are the waste material
that contaminates air, water or soil, with a severity that depends on their chemical nature,
the concentration and the persistence.
Energy is the capacity of a physical system to perform work. It refers to the power derived
from the utilization of physical or chemical resources, which transforms the source of
energy into light, heat, movement or electricity. What is not transformed can be recycled
or be a source of waste and pollution.
Drivers of pollutionDrivers of pollutionDrivers of pollutionDrivers of pollution
Three fundamental forces drive the major trend behind the
levels of air, water and land pollution throughout the globe:
• Industrialization
• Population growth
• Globalization
Industrialization is the first fundamental cause of pollution. It
has set in motion the widespread use of fossil fuels (oil, gas &
coal) which are now the main sources of pollution.
Population growth is the second fundamental pollution cause. This growth increased the
demand for food and other goods, which is met by expanded production and use of
natural resources, which in turn leads to higher levels of pollution.
Globalization has become an effective facilitator of environmental degradation. As some
developing countries, besides the availability of cheap labor, have much looser laws on
environmental protection, many big industries prefers to move their facilities to such
“pollution havens” rather than work in more regulated markets.
Figure 1: The drivers of pollution.
Source: Tropical-rainforest-Animals
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
5
The need for energyThe need for energyThe need for energyThe need for energy
At the end of the 13th century, Europe reached the limits of the feudal mode of
production, which could not answer anymore the needs of a rapidly changing society. The
18th and 19th century industrial revolution emerged in a context of global political,
monetary and economic stability, which favored innovation and brought humanity to
another stage of its history. Since then, the need for energy had never decreased, driven
by a growing population, which globally uses 23% of all fossil fuels for the production of
food. Interestingly enough, there is a strong correlation between population growth, food
production and oil extraction.
Figure 2: Grain, oil and population trends 1985-2007. Source: Paul Chefurka (author), August 2007
Regrettably, however, the industrial progress came with a cost which effects were
perceived less than one century later. Because the need for energy mostly relied on fossil
energies such as oil, natural gas and coal, and depended on population growth, the global
environment has been heavily impacted by pollution. Despite obvious alerts, the disastrous
consequences over the environment remained underestimated and received little
consideration until the late 20th century, as governments became increasingly aware that
their economy, social standards, and even national security were threatened as they
depend somehow on the natural environment.
The level of pollution as now reached unprecedented levels, and a lot of natural
catastrophes are attributed to the global warming. As the need for energy is still growing
steadily, the global challenge is to solve the equation of satisfying the demand while
preserving our ecosystem. Renewable energies appear as the best options for a change in
favor of sustainable production processes.
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
6
The The The The useuseuseuse of energyof energyof energyof energy
Over 80% of the 13'462 million Toe (tons oil equivalent) energy consumed in the world
originates from fossil fuel fields. Oil (31%) natural gas (21%) and coal (29%) are the main
source of energy exploited around the globe, leaving very little shares to other sources
such as hydraulic, solar or wind as alternative sources of energy.
Figure 3: Energy consumption and share of consumption 2012. Source: International Energy Agency
Although alternative sources exist, they still do not benefit from the adequate support for
their development. History shows that the share of fossil-based energy has kept growing.
This results from economic choices, taken at a specific time and in a specific environment.
Things have changed since then, time and environment have changed, and maybe it is time
to make new economic choices if we want to preserve our future with a sustainable
system of production and consumption.
Figure 4: World energy production and consumption– source: International Energy Agency
Oil 4205 31.2%
Natural Gas 2848 21.2%
Coal 3967 29.5%
Nuclear 642 4.8%
Hydraulic 316 2.3%
Wind, solar, geothermal 142 1.1%
Biomass 1341 10.0%
Heat, others 1 0.0%
Total 13462 100%
Energy SourceConsumption
2012 (MToe)
Share of
consumption31%
21%30%
5% 2%1%
10%
0%Oil
Natural Gas
Coal
Nuclear
Hydraulic
Wind, solar, geothermal
Biomass
Heat, others
2008 2009 2010 2011 2012
World energy production 483.56 480.93 505.37 518.55 537.27
World energy consumption 485.72 480.00 508.12 520.27 524.08
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
7
Environmental pollution
The sources to pollution can be natural or anthropogenic (i.e.: resulting from human
activity - from which originates the name attributed to our era, anthropocene).
Along the millenaries, nature has proven its capacity to absorb many variations and the
ability to restore by itself. However, any use of natural resources at a rate higher than
nature's capacity to restore itself will result in pollution. Besides manufacturing and
agriculture, energy production and
consumption are the main anthropogenic
source of environmental pollution which
causes air, water and soil degradation.
Because we process, consume and throw
away a high volume of resources at a very
high rate, and the nature's own rate of re-
absorbing these resources back into its
structure and effectively neutralizing them
is much slower, production and
consumption are respectively the primary
and secondary causes of environmental
pollution.
But it is not just the concepts of production and consumption, but excessive production
and consumption which are the major contributors to man-caused pollution, worsen by
inefficient and dirty methods of production, as well as irresponsible consuming behavior
along the 4 steps of pollution:
• Power generation/energy production (Fossil fuel-based energy: Oil-based, Gas-
based and Coal-based generation; Nuclear Energy: Uranium-based generation).
• Manufacturing/product design (Raw materials extraction, Raw materials
processing, Heavy industry – e.g.: equipment and transport manufacturing, Light
industry – e.g.: textiles and pulp & paper, Construction).
• Consumption/product use (irresponsible behavior, waste of domestic power
consumption, transportation, landfill disposal).
• Disposal/product recycling (landfill disposal of post-consumption waste which
could actually be recycled; goods which cannot be recycled).
Figure 5: primary and secondary causes of pollution.
Source: Tropical-Rainforest-Animals
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
8
Air pollutionAir pollutionAir pollutionAir pollution
Air pollution refers to introduction of particulates, biological molecules, or other harmful
materials into Earth's atmosphere.
The natural sources can cause air pollution from:
• Dust from large areas of land with little or no vegetation
• Volcanic activity, which produce sulfur and ash particulates
• Wildfire emitting smoke and carbon monoxide
Anthropogenic sources of air pollution include:
• Stationery sources (e.g.: smoke stacks of power plants, manufacturing facilities,
waste incinerators, furnaces and other types of fuel-burning heating devices)
• Mobile sources (e.g.: motor vehicles, marine vessels, and aircraft)
• Fumes (e.g.: from paint, hair spray, aerosol sprays and other solvents)
• Agriculture (emissions of toxic organic volatile compounds, ammonia, pesticides...)
• Waste deposition in landfills, which generate methane, an asphyxiant and may
displace oxygen in an enclosed space
• Military sources (e.g.: nuclear weapons, toxic gases)
Pollution caused by the production and consumption of energy releases gaseous
pollutants in the atmosphere. These include sulfur dioxide (SO2), nitrogen oxides (NOx),
ozone (O3), carbon monoxide (CO), volatile organic compounds (VOC), hydrogen sulfide
(H2S), hydrogen fluoride (HF), hydrocarbons, toxics, greenhouse gases (CO2), and various
particle matter and gaseous forms of metals. They are corrosive to various materials and
causes damage to cultural resources (acid rains), can cause injury to ecosystems and
organisms, aggravate respiratory diseases, and reduce visibility.
Burning of fossil fuel like coal and petroleum
is the primary cause of air pollution. The
environmental impact of transport is
significant because it is a major user of
energy. Transportation accounts for about
half of the world's petroleum consumption.
Figure 6: Comparative evolution of car world production and level of CO2. Source: CarFree France
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
9
Water pollutionWater pollutionWater pollutionWater pollution
Water pollution results from a direct or indirect discharge of pollutants into water bodies
such as oceans, lakes, rivers, aquifers or groundwater. This form of environmental
degradation may appear as chemical, pathogen or physical changes such as elevated
temperature (thermal pollution) or discoloration. Effects range from harm to living
resources, to hazards to human health, hindrance to marine activities, including fishing,
impairment of quality for use of sea water and reduction of amenities.
Even if some sources of water pollution are natural (i.e.: organic matter, nutrients,
sediment or disease-causing organisms), most of the contaminants are organic and
inorganic substances from human activity such as:
• Sewage and wastewater
• Industrial waste (chemicals, nitrates, phosphates, mercury)
• Oil spills, drain or dumping
• Marine dumping or litter in the sea
• Underground storage leakages
• Nuclear waste
• Atmospheric deposition, caused by air pollution
• Global warming, disrupting many marine habitats and
threatening marine life
• Eutrophication2
Macroscopic pollution is a specific form of water pollution that refers to large visible items
polluting the water or marine debris when found on the open seas. It includes:
• Trash or garbage, such as paper, plastic, or food waste
• Nurdles (small ubiquitous waterborne plastic pellets)
• Shipwrecks
As about 80% of water pollution comes from the land, one major challenge is to control
nonpoint source of pollution, which is often the cumulative effect of small amounts of
contaminants gathered from a large area, including many small sources, like septic tanks,
cars, trucks, and boats, plus larger sources, such as farms, ranches, and forest areas.
Clean and plentiful water provides the foundation for prosperous communities. Dirty
water threatens our quality of life as it has become the world's biggest health risk.
2 Eutrophication is a processus that occurs when the environment becomes enriched with excessive nutrients
such as fertilizers from farming, causing algal bloom, which may block sunlight from photosynthetic marine
plants under the water surface, and disrupt the ecosystem.
Figure 7: Turtle caught by a 6-pack
ring. Source: Missouri Department
of Conservation
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
10
Soil pollutionSoil pollutionSoil pollutionSoil pollution
Soil pollution is defined as the presence of toxic chemicals (pollutants or contaminants) in
soil in high enough concentrations to be of risk to human health and ecosystem.
Such contaminants include heavy metals, inorganic ions and salts (e.g.: phosphates,
carbonates, sulfates, nitrates), and many organic compounds (e.g.: petroleum
hydrocarbons, polynuclear aromatic hydrocarbons, solvents, pesticides, alcohols, etc.).
Additionally, various compounds get into soil from the atmosphere (with precipitation
water, or by wind activity or other types of soil disturbances) and from surface water
bodies and shallow groundwater flowing through the soil.
Some natural causes exist, and include:
• Natural accumulation of compounds in soil (e.g.: concentration of perchlorate in
soils in arid environments)
• Natural production in soil under certain environmental conditions
However, most of the soil contamination is caused by human activities, like:
• Industrial activity, such as mining (which involves crushing and processing of raw
materials) and manufacturing (foundries, furnaces or construction process which
processes result in dispersion of contaminants in the environment)
• Agricultural activities, intensive farming and deforestation, which involves the
spread of chemicals such as herbicides, pesticides, insecticides and fertilizers
• Improper disposal of waste in landfills or dumping (including illegal dumping) of
chemicals, nuclear waste, toxic waste, plastic and electronic waste, or ammunitions
and agents of war3, which may leak to groundwater or generate polluted vapor.
• Accidental spills and leaks, such as oil spills (due to pipeline deterioration or
sabotage), or during storage, transport or use of chemicals.
• Indirect causes such as acid rain, which pollutes waters as a result of air pollution,
and dissolve away some of the important nutrients found in soil.
Soil contamination is correlated with the degree of industrialization and intensity of
chemical usage and its effects spread out to health on humans (it can cause congenital
illnesses and chronic health problems, from toxic dust and gases from landfills, not to
mention the unpleasant smell), soil fertility and change in soil structure. It also affects
growth of plants and may poison what we are eating.
3 For example, mustard gas stored during World War II has contaminated sites for up to 50 years.
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
11
The consequences of pollution
As a consequence of the excessive production and consumption of energy and goods,
pollution has resulted in geological instabilities, climate disorder, drought and floods,
diseases, health cost, threat on our quality of life, ecosystem and food chain
destabilization, endangered species. Meanwhile, the economic powers and leading nations
still struggle to agree on measures that could slow down or stop that pollution escalade,
which has turned into transboundary pollution as sometimes pollution that enters the
environment in one place has an effect hundreds or even thousands of miles away.
Environmental impactEnvironmental impactEnvironmental impactEnvironmental impact
A major environmental impact of air, water and soil pollution is global warming. Caused by
GHG4, the rise in the average temperature of the Earth's affects ecosystems in many ways:
• Weather: the probabilities of extreme weather events are rising as changes have
been observed in the amount, intensity, frequency, and type of precipitation.
• Cryosphere: the changes observed in areas of the Earth which are covered by snow
or ice include declines in Arctic sea ice extent, the widespread retreat of alpine
glaciers, and reduced snow cover in the Northern Hemisphere.
• Oceans: increased levels of CO2 have led to oceans acidification and oxygen
depletion, with adverse consequences for ocean life and wildlife. In parallel, the
rise of ocean temperature increases melting of land-base ice and sea level.
Other disastrous environmental effects on the ecosystem include:
• Biomagnification, which is the excessive concentration of a substance, such as
mercury, in an organism. This process occurs when substances such as pesticides or
heavy metals move up the food chain, work their way into rivers or lakes, and are
eaten by aquatic organisms such as fish, which in turn are eaten by large birds,
animals or humans.
• Smog and haze, which reduce the amount of sunlight received by plants to carry
out photosynthesis.
• Biodiversity reduction, as native species are outcompeted by invasive species.
• Soil infertility, which pH makes it unsuitable for plants, and potentially affect the
whole food chain.
4 Greenhouse gases
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
12
Social impactSocial impactSocial impactSocial impact
Obviously, pollution involves serious long-term health effects. But it also is a concern for
governments' national security and international relations.
Adverse air quality and soil pollution can kill many organisms including humans. Exposure
to pollutants, by inhalation or through consumption, causes respiratory and cardiovascular
diseases, throat inflammation, chest pain and congestion, pulmonary cancer and other
type of cancer, leukemia, birth defects and immune system defects and even
neurobehavioral disorders. Devastating social consequences are exemplified by a 2010
scientific study which estimated that 1.2 million people died prematurely each year in
China because of air pollution.
Worse than diseases such as typhoid or gastroenteritis, water pollution causes
approximately 14,000 deaths per day, due to contamination of drinking water by
untreated sewage, mostly in developing countries.
Not only pollution is a threat to our quality of life, it is also recognized to pose a problem to
national security interests for many governments. Global warming, for example, affects
our water reserve as one-sixth of the world's populations rely on glaciers and snowpack for
their water supply. A default on food and water self-sufficiency may create a dependency
on other countries and modify the geopolitics of the world. Reversely, the self-sufficient or
well-prepared country may face a high rate of immigration of climate refugees on its
territory. At last, climate change may threaten population security as more extreme events
and natural catastrophes may occur and cause more destruction, death and desolation.
"... the threat that climate change poses to our national security
interests, principally because of the impact it can have on countries
with less well developed infrastructure than we have."
Barack Obama, U.S. president February 10, 2015
The impact of pollution and climate change over a social system challenges its sensitivity
and vulnerability as it can affect food and water supply, with the potential to modify social
interaction and human settlements, as internal migration may depopulate rural areas and
overpopulate cities. It has been argued that environmental degradation, loss of access to
resources and resulting environmental migration could become a source of political
instability and even military conflict5.
5 N. Ninkovic analyzes that Chinese inter-river water transfer projects in the Tibetan Plateau will have
tremendous consequences on other downstream countries and could boil into a regional conflict.
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
13
Economic impactEconomic impactEconomic impactEconomic impact
Although it is estimated that only the rise of sea level may cost about 200 billion dollar to
the USA, the total economic impacts from pollution remain highly uncertain. One major
cost is related to the social impact which affects public health and productivity.
Based on the VSL6 methodology, the European section of the World Health Organization
reports the overall annual economic cost of health impacts and mortality from air
pollution, including estimates for morbidity costs, stood at US$ 1,575 trillion. By 2030,
researchers estimate the cost of pollution to rise to 3.2% of global GDP.
However, countless other areas are concerned with economic impact of pollution and
climate change. The below non exhaustive list provides an overview of the scale to which
pollution may adversely impact the economy, either national or global.
• Natural catastrophes involve cost to restore the damages
• Cleaning campaigns require some financing
• Restoring national parks or shores have a cost
• Building, maintaining and upgrading waste treatment facilities do not come cheap
• Infrastructures such as road, airport and railways require increased maintenance
and renewal as they are exposed to weather that they were not designed for
• Policies to reduce pollution put financial pressure on industries
• Agriculture, fishery and livestock production may be affected and may translate
into price variation due to offer and demand volatility
• Drinking water cost can increase, due to treatment costs increase
• Revenues from tourism and leisure activities may drop drastically
• Real estate values can decline due to an unpleasant environment, particularly
waterfront properties.
Although economic impacts are expected to vary regionally, aggregating impacts adds up
the total impact of pollution across economic sectors and regions. The financial benefits of
reducing pollution are self-evident since pollution cost, ultimately, will affect gross
domestic product (GDP) and the global trading system.
6 Present-day economics uses a standard method for assessing the cost of mortality at the level of society:
the “value of statistical life” (VSL), as derived from aggregating individuals’ willingness to pay to secure a
marginal reduction in the risk of premature death
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The new technologies alternatives
New technologies
Renewable energy is energy generated from natural sources: water, wind, solar, biomass
or geothermal. As long a nature has the capacity to replenish them, renewable energy
sources will always be available. Renewable energies play a key role in replacing the
world's dependence on non-renewable, fossil-based energy sources, such as coal, oil and
natural gas.
New technologies in an environmental context, is also called sustainable technologies or
green technologies. These refer to technologies that use renewable energy and do it in
ways that are essentially non-polluting. There are three important characteristics that
define a sustainable technology:
• Dematerialization and efficiency
The technology enables significant savings in terms of use of amounts of materials
and energy.
• Substitution
The technology enables a shift from:
a) Non-renewable resources (energy and material) to renewable ones,
b) Non-biodegradable or persistent materials/chemicals to bio-degradable ones,
c) Ecosystem consuming extractive systems to renewing and restorative ones.
• Prevention
The technology prevents polluting emissions, air, water and soil contamination, and
other negative environmental and human impacts.
As renewable energy use has grown much faster than even advocates anticipated, sourcing
100% of our energy from renewable sources has become realistic, at least in one sector:
electricity, which represents 18% of the world total energy consumption. Yet only 5% of
the production of electricity was based on renewable energy in 2012. According to WWF's
Climate Vision for 2050, if the right technologies are put in place, low-impact renewable
energy sources could provide 70% of energy supplied globally.
Some of the most advanced renewable energy technologies available are solar energy
(electricity), electric motors (transportation), sustainable design and process (building and
manufacturing), plastic pyrolysis and plasma arc gasification (recycling).
A responsible strategy to alternative energies
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Energy production
Solar energySolar energySolar energySolar energy
Solar energy is the radiant light and heat from the sun. It can be converted into electric
power using a range of technologies such as solar heating, photovoltaic panels, or solar
thermal energy.
Solar technologies started in the 1860s but their development stagnated until in the mid-
1990s as supply issues with oil and natural gas, as well as global warming concerns
accelerated the adoption of residential and commercial rooftop solar, as well as utility-
scale photovoltaic power stations. Lots of focus is put on the sun as a source of energy
because of its potentially endless availability of energy that can be exploited.
The graph below translates this potential by comparing the finite and the renewable
planetary energy reserves, and by demonstrating the potential for renewable resources to
serve the global energy consumption. The chart shows total recoverable reserves of finite
energy resources (i.e., coal, natural gas, petroleum, and uranium), but it only shows annual
energy potential for renewable resources.
Figure 8: Global energy potential. Source: Perez et al., 2009 (estimated power demand in 2050: 28 TW)
A responsible strategy to alternative energies
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Energy production based on solar technologies has a great potential as a healthy, safe, and
clean source of energy that preserves the environment. The industry exists but the
production has remained marginal, due to poor efficiency and a high investment cost...
until recent years. Indeed, over the last three decades, solar panel have seen a consistent
drop in price moving from $75/watt to around $0.75/watt, and even reached parity with
coal in some markets.
Based on trends, such as the Swanson effect7, economies of scale and companies
objectives, such as SunEdison who has publically targeted $0.40 per watt panels by the end
of 2016, some analysts are even forecasting a further 40% drop in price in the forthcoming
years. On a global scale, solar will be economically effective, without government
subsidies, if price reaches Citigroup’s prediction of $.25/watt by 2020.
"It's now a question of
how and where, not if,
solar becomes a dominant
force in energy markets".
(Alliance Bernstein's Michael
Parker and Flora Chang,
Business insider April 10, 2014.)
Figure 9: Price of crystalline silicon photovoltaic cells, $ per watt. Source: Bloomberg New Energy Finance
Combined with the Swanson effect, technological innovation brings a new competitive
advantage to solar energy, as effectiveness has reached unprecedented levels when, on
December 2014, Soitec, a world leader in high performance semiconductor materials,
announced that its new multi-junction solar cell converts 46 % (vs. 8% previously) of the
solar light into electrical energy.
7 Swanson's effect, or Swanson's Law, named after Richard Swanson, the founder of SunPower Corporation, a
solar panel manufacturer, is an observation that the price of solar photovoltaic modules tends to drop 20%
for every doubling of cumulative shipped volume. At present rates, costs halve about every 10 years.
A responsible strategy to alternative energies
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Legislation also plays a major role in a strategy for solar energy, for example through
policies that facilitate the acquisition of permits for solar installation, both in terms of time
and cost. Today, Germany is one of the most advanced countries in delivering permits, 7
times faster and 21 cheaper than the USA.
To date, solar energy is estimated at 1035.9 TWh per year, in progress of 16.1% since 2012,
68.6% being produced in Europe. This may represents only 4.5% of the total production of
electricity worldwide, but, according to Total's estimates it is actually more than twice of
what was forecasted for 2020!
Figure 10: world energy supply. Source: estimates by Total
The solar industry has grown more than expected these last years. Nevertheless, a strategy
based on costs reduction through innovation and market stimulation thanks to favorable
policies opens the perspective of an
accelerated growth, which will favor the
study of a further specific strategy by region.
Countries exposed to a high level of
sunlight, most of them being southern
developing countries, have the potential to
accelerate the penetration of the solar
industry in their economy.
Figure 11 : Global solar generation 2003-2012 (TWh), the top 10
Solar Countries. Source: BP energy outlook 2012
A responsible strategy to alternative energies
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Electric Electric Electric Electric motormotormotormotor
Electric motor converts electrical energy to mechanical energy. It is seen as a sustainable
alternative to the Internal Combustion Engine in the automotive industry. Not only is
electric motor about three times more efficient than internal combustion engine (which, at
best, converts to motion only 30% of the energy stored in the gasoline), but it is also non-
polluting as it generates no toxic gas, no carbon dioxide, no wasted heat and no noise.
Electric motors come in many varieties, each with a different approach to creating
mechanical force from the simple interaction of two magnetic fields. One of the most
efficient in automotive industry is claimed to be the three-phase Alternating Current (AC)
Induction motor, developed by Tesla Motors and first patented by Nikola Tesla in 1888.
Transportation represents 27% of total energy consumption (32% in the European Union),
account for half of the petroleum consumption and was responsible for 12% of GHG
emissions in 2005, and 14% in 2010. The electric motor
addresses mostly the light-duty segment of the automotive
industry, such as individual cars, which represents 53% of
energy consumption in transportation. The electric motor
can potentially reduce about half of GHG generated by the
transportation industry.
Figure 12: Global transportation energy
consumption. Source: World Economic
Forum 2011
Figure 13: Global anthropogenic GHG emission by sector (2005). Source: Climate Analysis Indicators Tool, World Resources
Institute
High levels of air pollution and carbon emissions
will surely become a major factor in the global auto industry going forward
costs, short driving ranges, long charging times, lack of charging facilities and battery
maintenance issues have outweigh
consumers. However, favored by supporting policies in some countries, latest trends
outline and exponential progression
43% of them being bought in 2014.
Figure 14: total sales of electric cars worldwide
Yet, because electric power is generated from batteries, the question
100% renewable energy sourcing
Sustainability", since they are manufactured from finite resources.
Elon Musk, Chairman and CEO of Tesla Motors,
batteries rely on the ability to recycle their components
is that there really is no material shortage
of metal that support a given size of an industry, it just keeps going in a recycling process.
(...) The only part of it [the battery] that is
why we moved from a pure cobalt cathode to nickel
much more efficient to recycle a battery pack, which has high concentration of nickel
cobalt-aluminum, than it is to mine a
Although electric motor for the automotive industry appear
pollution generated by cars, the industry is not mature yet and is competing with both the
traditional Internal Combustion Eng
benefits of performance and ecology
electric motors. Newly (2015)
of CO2 and water from high-
A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis
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pollution and carbon emissions are cited as reasons why electric vehicles
ly become a major factor in the global auto industry going forward
costs, short driving ranges, long charging times, lack of charging facilities and battery
outweighed the positive aspects in the minds of individua
. However, favored by supporting policies in some countries, latest trends
outline and exponential progression of the global market, as demand hits
43% of them being bought in 2014. Although electric cars segment, dominated by a f
manufacturers (
Nissan, Toyota, Mitsubishi, and
BYD in China)
half of a percent of the 85
million new vehicles sold in the
world, the production of
batteries for these cars
expected to grow more than
sevenfold by 20
: total sales of electric cars worldwide. Source: cleantechnica.com, James Ayre (author)
ecause electric power is generated from batteries, the question about
100% renewable energy sourcing of these batteries raises the paradox
, since they are manufactured from finite resources.
Elon Musk, Chairman and CEO of Tesla Motors, answers that the sustainability of these
ability to recycle their components: "The important fact
is that there really is no material shortage. Metal is recycled; so once you have the amount
of metal that support a given size of an industry, it just keeps going in a recycling process.
(...) The only part of it [the battery] that is scarce and only slightly sourced is cobalt
why we moved from a pure cobalt cathode to nickel-cobalt-aluminum cathode. (...) It is
much more efficient to recycle a battery pack, which has high concentration of nickel
aluminum, than it is to mine a rock which has a very low concentration"
Although electric motor for the automotive industry appears as a potential solution to
, the industry is not mature yet and is competing with both the
Internal Combustion Engine and the hybrid technologies, which combine
benefits of performance and ecology with an internal combustion engine and one or more
(2015), Audi even invented a zero-carbon footprint "e
-temperature electrolysis powered from renewable sources.
ponsible strategy to alternative energies
Academic Thesis 2015
are cited as reasons why electric vehicles
ly become a major factor in the global auto industry going forward. But so far, high
costs, short driving ranges, long charging times, lack of charging facilities and battery
in the minds of individual
. However, favored by supporting policies in some countries, latest trends
demand hits 740'000 units,
segment, dominated by a few
manufacturers (Chevrolet, Tesla,
Toyota, Mitsubishi, and
BYD in China) made up less than
half of a percent of the 85
new vehicles sold in the
world, the production of
batteries for these cars is
expected to grow more than
sevenfold by 2020.
James Ayre (author)
about the effective
radox of "Sustainable
that the sustainability of these
"The important fact with batteries
so once you have the amount
of metal that support a given size of an industry, it just keeps going in a recycling process.
and only slightly sourced is cobalt. That's
aluminum cathode. (...) It is
much more efficient to recycle a battery pack, which has high concentration of nickel-
rock which has a very low concentration".
as a potential solution to
, the industry is not mature yet and is competing with both the
which combine the
an internal combustion engine and one or more
carbon footprint "e-diesel" made
perature electrolysis powered from renewable sources.
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Energy consumption
The 1994 Oslo Symposium on Sustainable Consumption defines it as "the use of services
and related products which respond to basic needs and bring a better quality of life while
minimizing the use of natural resources and toxic materials as well as emissions of waste
and pollutants over the life cycle of the service or product so as not to jeopardize the
needs of future generations." As such, sustainable consumption shares a number of
common features with sustainable production.
As the environmental performance of any device is linked to consumers' choice and
behavior in using it, new technologies in energy consumption refer to devices and
equipments, but also production and consumption processes used by factories or
households that are efficient and sustainable in terms of energy usage.
Consumer choiceConsumer choiceConsumer choiceConsumer choice
The efficiency of a sustainable technology can be measured by its influence over consumer
choice at the three stages of their life cycle: manufacturing, consumption and disposal. Any
goods, from small electric device to buildings, are concerned with sustainable energy
consumption.
Sustainable manufacturing is the creation of products through economically-sound
processes that minimize negative environmental impacts while conserving energy and
natural resources, through the use of renewable energy and recyclable components.
Sustainable consumption is driven by low-energy devices, which preserve energy
resources and reduces emission of pollutants, and also by technological evolution which
may deliver economic efficiency, namely sustainable goods at a competitive price.
Disposal is sustainable to the extent to which the device is recyclable. Its efficiency is
however dependant on the availability of points to collect the used devices or equipment.
As sustainable design and environmental performance are becoming driving forces in
manufacturing and in the building industries, "new technologies" in sustainable
consumption are areas of expertise and processes that drive consumer choice and
influence energy consumption. For example, SolidWoks8 Certified Sustainable Design
Associate (CSDA) attests a sharp understanding of principles of environmental assessment
and sustainable design.
8 Dassault Systèmes SOLIDWORKS Corp. offers complete 3D software solutions to help better and faster
product design.
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Consumer behaviorConsumer behaviorConsumer behaviorConsumer behavior
New technologies may seem to have little influence on consumption patterns, as behavior
is more about social science and are influenced by the cultural context, which is dependent
on values, norms and assumptions. However, technology, such as Smartphone apps,
connected watch or domotics (home automation), can enable sustainable consumer habits
and has many ways to influence energy consumption behavior.
• Technology can substitute expected behavior with technical features, such as the
automatic switch off in electronic devices, smart thermostats that constantly
regulate heating, or the Start&Stop feature in some of our modern cars.
• Incorporating new features that force a specific consumption behavior also send a
cognitive alert and raises awareness about a change of norms in social behavior.
• Connected devices, tracking tools or energy consumption monitoring, can provide
information and help to adjust consumption behavior.
• As modern information technologies offer an unprecedented level of transparency
about product's origins and ethics, it may propose a tool, such as a Smartphone app
to tell the embedded carbon in the goods purchased.
• Technology can favor a switch from individual consumption to collective sharing,
such as car sharing. It can also facilitate exchanges platform, where goods can be
re-used instead of being disposed or wasted.
The radical transparency offered by technology could potentially affect energy
consumption through many ways, and support efficient social initiatives that are essential
to supports new behavior in energy consumption.
Recycling to energy
Waste plastic pyrolysisWaste plastic pyrolysisWaste plastic pyrolysisWaste plastic pyrolysis
Using around 8% of the world’s oil production, with continuous growth for more than 50
years, the global production of plastics rose to 241 million tons in 2012 and increased by
3.8% to reach 299 million tons in 2013. The 57 million tons of European production
account for 19% of the global production. PlasticsEurope, the European association of
plastics manufacturers, reports that, off the post-consumer plastic waste (25.2 million tons
in 2012), only 26.3% are recycled and 35.6% are recovered as energy. The remaining
38.1%, which become pollutants from disposal, represent 16.8% of the global production.
Pondered to a global scale, landfill disposals of plastics waste reach about 50 million tons,
accounting for 10% of the total waste we generate.
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The main problem with plastic is that it doesn't biodegrade, because no natural process
can break it down. Instead, it will fragment into smaller and smaller pieces of plastic
without breaking into simpler compounds. This process, known as photodegradation, can
take hundreds of years and produces small pieces of plastics called nurdles.
Figure 15: Production of plastics worldwide from 1950 to 2013 (in million metric tons). Source: statista.com
A potential option to the polluting accumulation of plastic products in the environment
that adversely affects lands, waterways and oceans and living organisms, including
humans, is the conversion of plastics into petroleum by thermal depolymerization or
pyrolysis process. Pyrolysis is the thermochemical decomposition of condensed organic
substances at elevated temperatures in the absence of oxygen.
The pyrolysis process for plastic takes the long chain of polymer molecules and breaks or
cracks them into shorter chains through heat and pressure. Essentially the process is
mimicking the natural process of the earth to break down carbon into oil which takes
million of years in nature. The pyrolysis process does this with intense heat in a closed
system in a short amount of time. It accepts almost any polymer or mix of polymer,
including rubber tires, and produces a liquid product, pyrolysis oil, that can be readily
stored and transported, or used directly as fuel or further refined into diesel or jet fuel.
As 1 gr. of plastic contains about 1 gr. of petroleum, turning plastic
waste into energy resource9 and reaching the zero-plastic-to-landfill
objective by 2020 can potentially save 80 million tons of plastic waste,
just in Europe; this is the equivalent of 1 billion barrels of oil, or 70
billion euro.
9 For example, Plastoil (Switzerland) converts 1 ton of plastics into 1000 liters of diesel, which are 850 kg of
fuel, the remaining 150 kg being pure resalable coal and some gas.
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Plasma arc gasificationPlasma arc gasificationPlasma arc gasificationPlasma arc gasification
Plasma gasification is a process which ionizes gas and catalyzes organic matter to convert
them into synthetic gas, electricity, and solid waste. It uses a plasma torch, which
temperature ranges from 2'200 to 13'900 °C, powered by an electric arc generated by a
strong electric current under high voltage.
Figure 16: Plasma arc gasification process diagram. Source: Alter NRG
This arc heats, melts and finally vaporizes waste through a molecular dissociation process.
It converts any kind of waste primarily into elemental gas (syngas), predominantly carbon
monoxide (CO), hydrogen (H2), and hydrocarbons (CH), among other components, which
can further be converted into electricity and liquid fuels, or refuel hydrogen-powered
vehicles. Meanwhile, the process transforms inorganic solids into glass-like solid waste (or
slag). Inert slag is granulated and can be marketed to the construction industry as
aggregate for use in blocks, additive to road, brick, gravel and paper. Regained metals from
dissociation process can safely return to metallurgic industry and be sold as a commodity.
Plasma processing of waste is ecologically clean. The entire conversion process generates
extremely low emissions as it occurs in containment where the lack of oxygen prevents the
formation of many toxic materials. The high temperatures in a reactor also prevent the
main components of the gas from forming toxic compounds such as furans, dioxins,
nitrogen oxides, or sulfur dioxide. Water filtration removes ash and gaseous pollutants.
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Plasma gasification is an emerging technology which has the potential to operate more
efficiently than other pyrolysis and combustion process as it provides nearly complete
conversion of municipal solid waste (MSW) to energy (the conversion rate of plasma
gasification exceeds 99%). The plasma arc technology has proven reliable at destroying any
material and hazardous waste (with the exception of nuclear waste) and can help process
landfill waste and transform environmental liabilities into renewable energy assets. It can
form an integral component in an improved waste management system to achieve zero-
waste and produce renewable fuels, whilst caring for the environment. Additionally, it is a
self-sustaining system as a portion of the syngas produced will feed on-site turbines, which
power the plasma torches and thus support the feed system.
Although plasma arc technology requires a large initial investment and necessitates
occasional maintenance, it has a great potential, as its utilization will improve public
health, will help preserve and restore the environment, and can safely achieve total and
irreversible destruction of hazardous and toxic compounds.
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The barriers to sustainability
We are we truly making progress towards achieving sustainability; however, there are
some recurring problems and barriers that are hindering us from the expected
achievements. These barriers are of different nature: technological, economic, social or
political, some of them having deep roots in the history.
Technological barriers
One major problem is efficiency. Efficiency relates to the maturity of the technology: how
much energy is needed to produce 1 unit of energy? This efficiency is measured by the
Energy Returned on Investment (EROI) an early concept that easily demonstrated the
advantages, as well as the investment needed, to exploit a source of energy. Also referred
to as Energy Returned on Energy Invested (EROEI), EROI is the ratio of energy returned to
energy invested in that energy source, along its entire life-cycle. When the number is large,
energy from that source is easy to get and cheap. However, when the number is small, the
energy from that source is difficult to get and expensive. When the number is one, there is
no return on the energy invested, and the entire investment has been wasted. The break-
even number for fueling our modern society is about 7.
����� =���� ������� ������
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The chart below estimates the EROI of a selection on fossil and renewable sources of
energy. It self-illustrates why over 80% of our energy is still from fossil sources.
Figure 17: Energy Return On Investment, relative to the breakeven value of 1.Source: Forbes
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Based on the argument that global efficiency of any economic choice is related to its
economical viability, many corporations refrained to engage decisions in favor of green
technologies such as the solar energy which EROI is under the economically viable
threshold. Thus, as long as fossil energies will prove to be more efficient than sustainable
ones, they will hold a competitive advantage.
However, in a contradictory study10, M. Raugei, P. Fullana and V. Fthenakis argue that
current comparisons are based on outdated data and that EROI performances of
photovoltaic panels have been consistently underestimated by a framed methodology.
They challenge the underlying assumptions and calculations, provide new calculations
based on the latest published life cycle analyses of PV systems, and demonstrate that the
solar technology for electricity production is economically viable and even comparable to
oil and coal-fired thermal electricity.
Figure 18: EROI of PV electricity, compared to the EROI of oil and coal-fired thermal electricity
In addition, as technology matures and innovation is stimulated, renewable energies are
becoming more and more efficient, as illustrated by the recent new solar cells developed
by Soitec in 2014, which raised the rate of conversion from 8% to 46% thanks to the use of
semi-conductors. This kind of technical advance, favored by the collaboration between
research institutes and the economy, may not only provide superior efficiency, but may
also partially compensate the economic constraints.
10
" The Energy Return on Energy Investment (EROI) of Photovoltaics: Methodology and Comparisons with
Fossil Fuel Life Cycles"
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Economic barriers
The second major strong barrier for renewable energies is financing. Because renewable
technologies essentially capitalize fuel costs, the cost of the equipment that uses "free
fuel" is more expensive than the cost of equipment that uses hydrocarbon fuel. This shared
view of paying more upfront and less to operate remains strong despite a consistent
decrease in the cost of production in some major renewable energy industry such as solar.
Although renewable technologies might prove more efficient in the long run, the initial
upfront payment opposes to short-term profitability and financial performance of a system
where the dominating development model is focused on economic growth and has
precedence over people's welfare and environmental limits.
Overcoming this barrier requires a shift in the worldview from treating the environment as
part of the economy to treating the economy as part of the environment.
Social barriers
Sustainability will not be potential without a significant change in consumption and
production patterns, particularly among the wealthy. Paired with population growth,
consumer behavior is the biggest social challenge to sustainability. Because it is difficult to
change a social behavior as they are embedded into social norms and cultural values, and
are somehow, part of the social identity.
Also, inequities and marginalization of the poor will limit the awareness about sustainable
development and environmental issues. Unsatisfied primary needs, lack of information
about resource reserves and technological alternatives, level of literacy, inadequate
interaction between civil society, corporation and government are some of the social
barriers to sustainability.
At last, self-interest, at individual, corporate or governmental level, combined with an
excessive tolerance, driven by the "broken window fallacy" (if someone is not punished for
a bad social behavior, the other individuals of a society will feel legitimate to act in the
same manner), and other group process and dynamics, will build strong barriers as well.
Our social norms regarding sustainability need to be updated or even reset. Perhaps we
should adopt a holistic view of nature in which nature is not an entity that exists separately
from us; the nature is us, we are an inalienable part of it, and we should care for it in the
most appropriate manner, as we would take care of ourselves.
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Political barriers
Political barriers to sustainability potentially affect all the other barriers. Outdated policies,
unenforced corporate governance norms, poor projects monitoring, lack of specific targets
(globally, nationally and at local level), absence of measurement and data to track
progress, resulting in a lack of information available to decision-makers, expose the
weakness and unwillingness of governmental and international institutions.
Political hurdles also sometimes relate to a lack of institutional experience in developing
countries to operate all the mechanism of democratic system (corruption, collusive tender
or contract award) or to economic interest (trade barriers, taxes, protectionism).
At last, one major barrier, maybe the major one, is the potential threat
over a global economic standard based on the monetary hegemony of
the U.S. currency: the petrodollar system.
This system, in which the major oil producers (OPEC) denominate all oil sales in U.S. dollars
(agreed under Nixon's government in 1975, in exchange of military protection), provides
the USA with a dominant position and constitutes the foundation for the valuation of the
US dollar by creating consistent international demand. Favoring green technologies against
fossil energy would reduce the demand of oil, thus the demand of US currency, thus the
value of the US dollar. The impact is comparable to that of dropping the petrodollar and
start trading oil in any other currency: it would translate into a collapse of the U.S
economy, which will imply dramatic collateral repercussions for the economy worldwide.
Those who are most concerned will legitimately want to protect their interests and delay
as much as possible an event that could potentially destabilize, or reverse, the balance of
power while profoundly affecting the international geopolitical strategies.
According to the 2013 Post Carbon Pathways report, the key roadblocks to the widespread
implementation of large-scale renewable energy and low carbon energy strategies are
climate change denial, the fossil fuels lobby, political inaction, unsustainable energy
consumption, outdated energy infrastructure, and financial constraints. The most
significant barriers, however, are primarily political and not technological.
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Strategy for sustainability
The sustainable strategy
Strategy objectivesStrategy objectivesStrategy objectivesStrategy objectives
The above analysis, which detailed the impact of human activities on the global ecosystem
and the challenges or obstacles on the path to a sustainable environment, raises the
question on how to achieve a goal such an ambitious as to build a sustainable world. This
starts with a vision, that of a world with no pollution.
As this may sound utopian, a wise consideration to some theories of motivation reveals
that a goal that is too ambitious actually kills motivation. It therefore calls for a more
rational approach of successive realistic goals in which the vision aims to reduce the
pollution and to propose a progressive step by step strategy.
As we have demonstrated that pollution is mostly of anthropogenic source, the main
question is about how to build and maintain a sustainable economy, made of sustainable
industries, which remain competitive against the traditional industries.
Through the example of four technologies (solar energy, electric engines, waste plastic
pyrolysis and Plasma arc gasification), we will address the four axes of action we have
identified (technology, politics, economic and social), to propose a strategy to favor the
emergence of economic activities that respond to the sustainability criteria.
Definition of sustainability Definition of sustainability Definition of sustainability Definition of sustainability
The term "sustainability" is derived from the Latin "sustinere", which means "maintain".
The word "sustainability" has been used more used in the sense of human sustainability on
the planet from the 1980's as worries about the future of humanity on Earth started to
become a major subject because of the levels of pollution and the degradation of the
ecosystem.
Sustainability is based on a simple observation: Everything that we need for our survival
and well-being depends, either directly or indirectly, on our natural environment, which
provide humanity with water, air, material and resources. Therefore, sustainability goals
are to create and maintain the conditions under which humans and nature can exist in
harmony, while fulfilling the social, economic and other requirements of present and
future generations.
Also referred as "sustainable development", the Brundtland Commission of t
Nations on March 20, 1987 defines sustainable development as "development that meets
the needs of the present without compromising the ability of future generations to meet
their own needs".
Sustainability has become wider that just ecology or
corporate social responsibility;
major pillars that have been recognized during the 2005
World Summit on Social Development
based on economic, social
specific relation between them, as bo
society pillars are constrained by environmental limits.
The economic, social and environmental
for numerous sustainability standards and certification
In recent years, sustainability science has emerged as a new academic discipline in order to
give sustainability a stronger analytic and scientific underpinning as it "
scholarship and practice, global and local perspectives from north and south, and
disciplines across the natural and social sciences, engineering, and medicine
This quote from Clark and Dickson
sustainable development, which consists of coordinating and balancing local and global
efforts to meet basic human needs without destroying or degrading the natural
environment. Not only this challenge faces
global interest, as well as contingencies and unforeseen consequences resulting from
worthy initiatives, but it also
between those needs and the environment.
Figure 20: Sustainability: at the
confluence of three constituent parts
Source: I UCN, W.M. Adams (author)
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Also referred as "sustainable development", the Brundtland Commission of t
Nations on March 20, 1987 defines sustainable development as "development that meets
the needs of the present without compromising the ability of future generations to meet
ecome wider that just ecology or
orporate social responsibility; At the confluence of three
that have been recognized during the 2005
World Summit on Social Development, sustainability is
social and environment, with a
specific relation between them, as both economy and
are constrained by environmental limits.
The economic, social and environmental pillars of sustainability serve as a common ground
for numerous sustainability standards and certification systems (e.g.: Rainforest Alliance,
Fairtrade and UTZ). Some experts are
future generation as a fourth pillar, which makes sense
as sustainability is associated with long
and ecological resiliency, that is the capacity of an
ecosystem to absorb disturbance and stil
basic structure and viability to serve the current and
future generation.
In recent years, sustainability science has emerged as a new academic discipline in order to
give sustainability a stronger analytic and scientific underpinning as it "
scholarship and practice, global and local perspectives from north and south, and
disciplines across the natural and social sciences, engineering, and medicine
This quote from Clark and Dickson (2003) actually points out one major cha
, which consists of coordinating and balancing local and global
efforts to meet basic human needs without destroying or degrading the natural
this challenge faces the possible opposition between
global interest, as well as contingencies and unforeseen consequences resulting from
also raises the question of how to represent the relationship
between those needs and the environment.
Figure 19: The
Source: Green Economics,
luence of three constituent parts.
, W.M. Adams (author)
ponsible strategy to alternative energies
Academic Thesis 2015
Also referred as "sustainable development", the Brundtland Commission of the United
Nations on March 20, 1987 defines sustainable development as "development that meets
the needs of the present without compromising the ability of future generations to meet
serve as a common ground
systems (e.g.: Rainforest Alliance,
experts are considering
future generation as a fourth pillar, which makes sense
as sustainability is associated with long-term thinking
that is the capacity of an
ecosystem to absorb disturbance and still retain its
basic structure and viability to serve the current and
In recent years, sustainability science has emerged as a new academic discipline in order to
give sustainability a stronger analytic and scientific underpinning as it "... brings together
scholarship and practice, global and local perspectives from north and south, and
disciplines across the natural and social sciences, engineering, and medicine".
actually points out one major challenge in
, which consists of coordinating and balancing local and global
efforts to meet basic human needs without destroying or degrading the natural
between local and
global interest, as well as contingencies and unforeseen consequences resulting from
raises the question of how to represent the relationship
Figure 19: The three pillars of sustainability.
Source: Green Economics, Scott Cato (author)
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The complexity of ensuring a desirable planet for all species, now and in the future, implies
responsible decision-making, proactive initiatives and effective innovation that minimizes
negative impact and maintains balance between ecological resilience, economic prosperity
and social justice. An efficient strategy should provide the framework and the tools that
could be used to serve a common goal in this journey to sustainability.
Criteria of sustainability Criteria of sustainability Criteria of sustainability Criteria of sustainability
The four axes of action, or spheres of influence, are technology, economy, social and
politics. They have the potential to interact efficiently and to build a viable world only if
their specific needs are met, since they do not have the same criteria. The challenge is thus
to make all these criteria compatible, at least at an acceptable level.
What is expected from technology is efficiency, represented by the ratio of the amount of
usable energy acquired from a particular energy resource to the amount of energy
expended to obtain that energy resource. Expressed by The Energy Return on Energy
Investment (EROI), efficiency also relates to the manufacturing process and the use of
recyclable material and is taken in account into the economical criteria as well.
Economic viability relates to the ability to generate financial results which are comparable
to the current fossil-based economy. One question is how to measure these results: are
they only financial, as per Milton Freidman economic argument of the stockholder theory,
or should we include environmental and social well-being, as proposed by Edward
Freeman's ethical argument of the stakeholder theory? History proves that only economic
and financial arguments cannot build sustainability, and pleads for a responsible value
creation, at the confluence of the economic and the ethical arguments.
Figure 21: Responsible value creation. Source: CRS course, HEC Lausanne, Pr. D. Philippe (2015)
Social adoption of green technologies and appropriate consumption behavior remain key
factors in the emergence of a sustainable society. It implies affordability and availability of
information about the sustainable goods and should improve overall social well-being.
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Political criteria for sustainability are exposed to sensitive economic and geostrategic
implications that can potentially destabilize the current world equilibrium. Although
preserving the current system is incompatible with sustainability at first sight, a
progressive evolution, rather than an abrupt revolution, of which even the political world
can benefit, can be considered to be the criteria of sustainability.
Production
This section explores and suggests strategies on technological economic, social and
political plans that can favor or stimulate the production of renewable energies.
Technological strategyTechnological strategyTechnological strategyTechnological strategy
The objective of innovation for renewable energy production is to beat fossil-based
sources of energy with a mix of energetic efficiency and a capacity to cover the demand.
Technology is the major area where innovation can make a difference. Since the last
decades, a lot of new technologies have emerged, one better than another. The challenge
is make a right choice that will impact the future, because making a choice also set new
standards, which is something that requires a lot of organizational leadership, long-term
industrial investments and coordinated actions of governmental and international
institutions. Innovation, as such, is favored through education, research and exchange of
ideas and knowledge, as well as by the availability of adequate infrastructures, such as an
incubation program or an innovation park.
The technological strategy for the production of renewable energies articulates around
three steps:
• Stimulate innovation to develop technologies
• Identify the most efficient technologies, able to compete against fossil energies
• Select the technologies that can be produced industrially to cover the demand
It is recommended to adapt this strategy to each specific environment, as the environment
may favor one particular technology or another one, depending on local conditions.
EconomicEconomicEconomicEconomic strategystrategystrategystrategy
On an economic point of view, the production of renewable energies must be economically
viable and competitive against the production of fossil energy. For that matter, the
appropriate technology must be first selected based on efficiency (EROI), profitability and
industrial capacity.
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To date, renewable energy technologies appeal only to a specific market subgroup. In
order to move the industry from a niche position to a global presence, the best economic
strategy for the production of renewable energy is a cyclic 2-step skimming strategy:
• Select markets (sectors, country, etc.) where the price per watt for renewable
energy is closest to that of the fossil-based energy or that have reached parity.
• Among these markets or sectors, the priority should be given to the ones where
there is the highest purchase power.
This strategy will allow a production increase and economies of scale, which in return will
impact the price downward and will open the selection of additional markets where
renewable energy price has now reached parity with fossil energy.
However, the details and implementation of such a strategy require a long and complex
global market study, as it also depends on many contextual factors such as geographic
implementation, social environment or infrastructure development. For example a sunny
climate will favor solar energy, while windy locations are better served with wind turbines;
governmental subsidies policies will help prioritize the markets selection; the level of
development could grant the first-mover advantage; high purchase power may favor
inspirational purchase decision (vs. rational) while low income call for an opposite strategy,
a BoP (Bottom of Pyramid)11 strategy, considered socially responsible.
Hence, the economic strategy for renewable energy production should be driven by a
progressive global market penetration.
Social StrategySocial StrategySocial StrategySocial Strategy
Most corporations are legitimately driven by the prospective of maximizing profits and
profit is mostly defined by the money the company is making. This narrow definition idles
the opportunities of an ethical strategy and it pressures the decision-makers who often
find themselves trapped into short-term benefit cycles. Researches have demonstrated the
impact of non-sustainability on health, prices, resources, margins, profit, and quality of life.
The social strategy for sustainability we propose is built around three pillars:
• Profit is not only measured by money, but rather by global short-term and long-
term stakeholders' benefits. Edward Freeman's ethical argument opposes
stockholders to stakeholders as benefiters of corporations' activities. This theory
11
Bottom of Pyramid strategy targets the lower part of Maslow's pyramid of needs, characterized by low
income households but a large number of them.
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involves employees, customers, suppliers, financiers, communities, governmental
bodies, political groups, trade associations, and trade unions. Competitors and
environment also often account as stakeholders. This theory is often criticized as it
may undermine the principles on which a market economy is based. As often,
extreme positions are not sustainable. This long-term view can benefit the
corporations only if their financial interests are preserved.
• Social responsibility and sustainability corporate policies may pay better than
traditional conceptions of management. Because awareness about ecology and
sustainability has raised drastically in this generation, corporations' social
involvements and sustainability initiatives became highly regarded, even by
investors. This turnaround in management practices is being turned into a
competitive advantage by companies that foresee the economic potential of
playing green through a CSR strategy that communicates heavily on their
environmental commitments and sustainability initiatives.
• There is a huge latent demand for low-priced high quality goods and affordable
services. Not only is this aggregated demand at the bottom of Maslow pyramid a
source of growth, but it challenges innovation in technology and in business
models.
The social strategy for the production of renewable energies suggests to:
• Create responsible value by considering financial and non-financial benefits
• Leverage CSR initiatives to expand profit and market share
• Develop a BoP strategy, which serves also both economic and technology interests
Experience shows that most companies do not spontaneously consider the ethical
argument, but this transition can be facilitated by pressure from the civil society and with
enforced but balanced governmental policies.
Political strategyPolitical strategyPolitical strategyPolitical strategy
As a policy maker, the political sphere has the potential to influence the technological,
economic and social axes.
Local legislations, with clear frames and enforcements measures to facilitate the
development of renewable technologies and to attract companies operating in this
industry must be presented and passed in concert with international programs and
legislations. Such policies may include financial incentives (subsidies or taxes), public
recognition (rewards or penalties), price policies, or competition regulations in favor of
A responsible strategy to alternative energies
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green technologies. Implemented at national and international level, even temporarily,
they should stimulate technological innovation, profitability and entrepreneurship in the
sector of sustainable energies.
The extension of producer responsibilities to the full life cycle of their products has also
proven to be efficient, as Shoichiro Kobayashi, from The Japan Plastics Industry Federation,
declared that its members have taken measures to reduce spillage of plastics nurdles.
Initiatives to support entrepreneurship to develop and exploit new ideas that emerges
from academics or research should be encouraged with public financing, sponsoring or
juridical facilitations (permits, license to operate), and specific scholarship. Supporting
educational or information campaigns will help to achieve targets ambitious enough to
make a change, but realistic enough not to hastily dislocate the current system.
The political strategy for the production of renewable energies recommends:
• An appraisal of corporate governance norms
• An update of codes of conduct and other multilateral control systems
• An entrepreneurial environment encouraged by research support, a favorable tax
system, some juridical facilitations and financial incentives.
A political strategy remains however very sensitive, and requires close cooperation with
nations and international institutions, as radical decisions may impact international
competitiveness and geostrategic positions. And even in case of a global agreement, the
coordination challenge remains a criterion of feasibility.
Consumption
Technological strategyTechnological strategyTechnological strategyTechnological strategy
Sustainability in consumption in not really relevant if the energy is renewable, thus,
infinite. However, we need to keep in mind that devices to produce sustainable energies
are made with material from limited resources and that pollution also results from disposal
of residual energy; Therefore, technological sustainability for the consumption of
renewable energies should target the efficient use of the device delivering energy.
The technological strategy for the consumption of renewable energies requires:
• The capacity that covers the demand
• A user-friendly (or easier than fossil-based technology) interface
• The availability of a service network for either acquisition or maintenance
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On the top of that, this strategy can be reinforced with economic and social expressions
through low-energy consumption devices, pleasant design, and fully recyclable material.
Economic strategyEconomic strategyEconomic strategyEconomic strategy
As it is for production, the consumption of renewable energies must be economically
viable and competitive for the final consumer. As the customer would pay more upfront
and less to operate, the problem is not cost, but financing.
Although cost reduction may drive a motivation to acquire and consume sustainable
energies, the main concern remains to cover the needs at a price more or less in parity
with fossil-based energy currently used by the consumer. This comparison can be achieved
by spreading the upfront cost over the device life-cycle and by expressing the investment
with a price per unit of energy. This, to be efficient, has to be communicated publicly.
The economic strategy for the consumption of renewable energies recommends:
• To express and communicate the total consumption cost in price per unit of energy
• To propose technologies that provides the same level of service at a price similar to
the current source of energy
• Reduce consumers' cost of ownership, by a combination of public policies
(subsidies or buy-backs) and technological advances (low-energy devices).
Social StrategySocial StrategySocial StrategySocial Strategy
The social strategy calls for a consumer behavior change. It should address the three steps
in consumption: acquisition, use and disposal. In any of them, information and education is
crucial. Initiatives, such as preventive and cleaning campaigns, raise awareness about
pollution and share knowledge about the availability and the use of sustainable energies.
Large diffusion of information has the potential to influence consumer choices and
adoption of sustainable technologies.
Education, either in schools, universities or through
campaigns, also contributes to alternative choices of
consumption. This adds to the pressure made on
corporations' managerial decision-making process to favor
alternatives for clean energy consumption, but also may
influence demand, stimulate supply and reduce prices.
Figure 22: Cleanup campaign on
Hawaiian shores. Source: epa.gov
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A psychographic segmentation (VALS Framework) should allow the social strategy to target
those "innovators" who are willing to pay a premium for green energy. In association with
key opinion leaders, they can potentially influence consumer behavior and favor the
emergence of consumer accountability: Individual Social Responsibility.
The Individual Social Responsibility principles aim to renovate communities' values to
implement a social strategy for the consumption of renewable energies by:
• Raising awareness through education and knowledge sharing
• Expanding familiarity with green technologies by spreading information
• Empowering consumers with informative tools (e.g.: consumption trackers)
• Promoting logic of sufficiency; this consists in consuming the right quantity of
material goods and services, for optimal health, well-being and happiness.
It is difficult in a society to talk about things like Corporate Social Responsibility without
talking about individual level responsibility, says Timothy M. Devinney, professor of
strategy at UTS Business School (University of Technology, Sydney, Australia). Individuals
make social choices through consumption. Although a choice process is complex and not
necessarily rational, nor ethical, social preferences mean they have a social responsibility,
which can be influenced, by various measures, either permissive or coercive.
Political strategyPolitical strategyPolitical strategyPolitical strategy
As with energy production, legislative measures and specific policies can be implemented
to favor, not only the consumption of green energy, but the responsible consumption of it.
Technological choices can be made at the political
level, particularly if specific choices can affect the
competitive position of a nation. For example, the
giant 155-megawatt Nzema solar project in Ghana
is the first step towards the government’s target of
generating 10% of its electricity from renewable
sources by 2020.
To favor the economical viability for the consumer, and until prices reach parity, favorable
taxes, subsides or buybacks of surplus will reduce consumers' cost of ownership and will
promote the adoption of sustainable sources of energy, like the solar energy, for example.
Figure 23: Over 630,000 solar PV modules
will be installed for the 155-megawatt
Nzema project in Ghana. Source: AP
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By adopting green technologies for the public infrastructures and services (administrative
buildings, hospitals, fleet vehicle, furniture, like recycled paper, etc.), the governmental
authorities would sets early standards as a socially responsible consumer and could be
further considered a key opinion leader. Besides, it will also stimulate the demand. Even
small decisions counts, as a Pittsburgh schoolboy demonstrated that switching to a new
font could reduce ink consumption by 24% and potentially save US$400 million per year.
Responsible Consumption of energies can be promoted by a political strategy in which:
• Energy policy rewards responsible consumption or amends irresponsible behavior
• The government stimulates the change through its technological choices.
• Public authorities set the example in being a responsible consumer.
The success of a sustainable strategy for renewable energy consumption is dependent on
the coordination of multiple sub-strategies which, together, can support the sustainability
objectives. Combined with an efficient recycling strategy, production and consumption
strategies are the components of a broader sustainability strategy that covers the full life-
cycle of energy.
Recycling
Technological strategyTechnological strategyTechnological strategyTechnological strategy
A lot of technical solutions for recycling exist. Although they all converge towards
sustainability, they can be classified into two categories:
• The waste to energy recycling (WtE), which converts material into reusable raw
material or into sources of energy (hydrogen, tar, oil, synthetic fuels,...).
Incinerator, gasification, thermal depolymerization, pyrolysis and plasma arc
gasification are some of the most popular Waste to Energy technologies.
• The waste energy recovery (WER), which captures waste energy (mainly excess
heat generated from manufacturing processes and domestic heating) and converts
it into power as clean as wind or solar. Waste heat recovery, combined heat and
power, heat pumps and thermal energy storage are technologies that can enable
the recycling of energy.
Both WtE and WER have proven to be efficient. The technological strategy is about choice
of the best technologies, which depends on the local environment. The priority in making a
decision should be based on:
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• The nature and availability of waste (it may be more relevant to recycle plastic than
heat in a tropical country)
• The efficiency of the technology (what can be recycled? at which cost?)
• The impact (on the environment, on the economy, on the society)
The technological strategy objective in recycling is guided by efficiency, which is a mix of
two variables: getting the most possible of any waste with the least amount of energy to
operate the process. The strategic tools to drive innovation in technology and reach that
objective remain education, research and knowledge sharing.
Economic strategyEconomic strategyEconomic strategyEconomic strategy
As opportunities largely depend on the local conditions, an economic strategy requires a
market analysis that takes in account many variables. The answers depend on the
environment of a specific market or country:
• What are the nature and the amount of the waste?
• What can be recycled?
• Which technologies are applicable?
• Which one is the most efficient?
• What are the needs that can be covered?
• What are the policies regarding recycling?
• What infrastructures are in place for the distribution of the energy recovered?
A Forbes article reported in 2013 that profit in recycling business were elusive. But it also
revealed a lack of sustainable business model and that profitability also depends on the
nature of the waste. Smart phones, plastic or paper demonstrated profitability, while glass
rarely, if ever, is profitable.
Still in Forbes, a year later, an article suggested an opposite conclusion as it titled "Profits,
Not Good Intentions, Drive The Global Recycling Industry". The author notes that usually,
but not always, the most profitable way is the most sustainable, building on the example of
recycling cars while the demand for steel is high. He concludes that the power of markets
can help to deliver the most sustainable solutions through innovative business models.
Although a careful analysis does not guarantee success, the above confirms that the
economic strategy, to generate profitability, is to adapt to the environment and to
changing market dynamics, with the constant challenge of remaining ethical and socially
responsible in a business where some just choose to export their waste.
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Social StrategySocial StrategySocial StrategySocial Strategy
The "Reduce, Reuse, Recycle" environmental slogan is what has driven sustainability
campaigns and contributed to the global awareness these last years. However, a
sustainable social strategy for energy recycling should address both the producers and the
consumers. Corporate and Individual Social responsibility are at the core of a sustainability
strategy in the recycling business, because recycling not only needs recycling facilities, but
also needs the consumer to be involved and informed about recycling alternatives and the
availability of disposal sites.
With regards to energy, a social approach will require a change of value through
education. The reuse and recycling of energy involves a voluntary approach from energy
consumers.
Ethical and responsible behavior is to be promoted through education and information
about the benefits of recycling other than financial (fewer landfills, less demand for virgin
materials, etc.). Publication of results and achievements, public recognition, access to
recycling technologies, but also exposure and penalties for unethical practices can drive
corporate social responsibility. However, while profits, markets, and innovators can help
keep the world clean, responsible consumers cannot just relax and hope they will take care
of everything. Only a collaborative approach, based on knowledge and responsibility can
build a sustainable energy recycling strategy.
Political strategyPolitical strategyPolitical strategyPolitical strategy
Governmental institutions have a lot of tools to promote waste-to-energy recycling.
Firstly, on a juridical level, regulation can be updated to reflect new possibilities and
technical advances. This concerns, for example, the delivery of permits to install facilities
that reuse or recycled energy, or to extend producers responsibility to the recycling
process, but also construction norms that reduces consumption or captures and reuses the
excess of energy.
Secondly, market regulation and prospective financial incentives can be decided in regards
with cost of recycling and market value of the recycled energy. Valuing recycled products
helps policies to be such that the cost of not recycling exceeds the cost of recycling.
Thirdly, the political strategy must also address public infrastructure, such as points for
waste separation and disposal, to facilitate social collaboration.
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At last, as progress needs to be assessed, a political strategy needs to set objectives that
can be measured.
The political strategy as well as the definition of key performance indicators, will reach
efficiency only in collaboration with the technological, economic and social strategies, but
also with other governments and international institutions.
A roadmap to a sustainability
A strategy, by nature a long-term vision, can drive actions towards the desired sustainable
change. It answers to a set of questions and should open to actionable plans.
• "Why?" expresses the problem definition: the environmental situation is not
sustainable and our survival, as a species is endangered
• "What?" expresses the objective or the vision: replace fossil energy by green
energy based on renewable sources.
• "Who?" identifies the stakeholders, the participants to the strategy: scientists,
researchers, corporations producing and consuming energy, individual consumers,
governments and global policy makers.
• "Where?" defines the geographic scope: the planet, but territorial priorities will
depend on the available technology, the social maturity, the level of the economy
and the power and reliability of local institutions.
• "How?" recommends a strategy made of actionable plans, adequate means and
consistent initiatives.
There are a lot of tools that support strategic thinking for industrial development. Porter's
5-forces competitive analysis could be of them. It would confront two sub-industries of the
energy industry, fossil energy and renewable energy, and would identify competitive
advantage for each of them. The analysis would then serve as a tool to evaluate how
renewable energy could beat fossil energy. This tool, designed for competitive strategy,
does not properly addresses sustainability issues. Its relevance in limited in the industry of
renewable energy, because the energetic transition is more a "must do" than a
competitive advantage positioning.
Instead, the "Sustainable Value Framework", by Stuart L. Hart and Mark B. Milstein
(2003), proposes clear directives around the "Sustainable Value" vision.
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The The The The SuSuSuSustainable Value Fstainable Value Fstainable Value Fstainable Value Frameworkrameworkrameworkramework
S. Hart and M. Milstein define sustainable strategies as the creation of value that
contributes to a more sustainable world while simultaneously driving shareholder value.
Figure 24: The "Sustainable Value Framework". Source: Stuart L. Hart and Mark B. Milstein (2003)
The global challenges associated with sustainability require performance on multiple
dimensions involving economic, social, and environmental concerns. Rather than a one-
dimensional nuisance, involving regulations, added cost, and liability, the Sustainable Value
Framework aims to equip firms with strategies that link the challenges of global
sustainability to the creation of shareholder value.
This framework is developed around a two dimensional tension between managing today’s
business while creating tomorrow’s and growing internal skills while growing new
perspectives from outside. The model results in a matrix with four distinct dimensions of
performance crucial to generating sustainable shareholder value: pollution, a civil society,
clean technology, and poverty. Each dimension proposes a strategy that derives from
specific business and sustainability drivers which objectives are to:
• Minimize risk
• Maximize shareholders value
• Maximize positive social impact
• Maximize positive environmental impact
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Figure 25: The Sustainable Value Framework: the strategies and strategy drivers
The The The The Strategic Sustainability Framework Strategic Sustainability Framework Strategic Sustainability Framework Strategic Sustainability Framework
R. Graham and S. Bretels revise Hart and Milstein’s framework and propose an alternative
framework to make it more generally applicable to a range of organizations and sectors.
The axes in the Strategic Sustainability Framework are reframed in terms more
understandable and suitable for business.
Figure 26: The Strategic Sustainability Framework. Source: R. Graham and S. Bretels (2011)
The vertical axis in represents the challenge of getting things done (actions), which is
described as a tension between producing immediate results and preparing for the future.
The horizontal axis represents the varied application of knowledge and perspective
Business driverBusiness driverBusiness driverBusiness driver Sustainability driverSustainability driverSustainability driverSustainability driver StrategyStrategyStrategyStrategy
cost & risk reductioncost & risk reductioncost & risk reductioncost & risk reduction environmental degradationenvironmental degradationenvironmental degradationenvironmental degradation
reputation & legitimacyreputation & legitimacyreputation & legitimacyreputation & legitimacy civil society stakeholderscivil society stakeholderscivil society stakeholderscivil society stakeholders
innovation & repositioninginnovation & repositioninginnovation & repositioninginnovation & repositioning long-term health on the planetlong-term health on the planetlong-term health on the planetlong-term health on the planet
growth path & trajectorygrowth path & trajectorygrowth path & trajectorygrowth path & trajectory global poverty & inequityglobal poverty & inequityglobal poverty & inequityglobal poverty & inequity
Internal & near-term performanceInternal & near-term performanceInternal & near-term performanceInternal & near-term performance
Near-term performance, but includes salient external Near-term performance, but includes salient external Near-term performance, but includes salient external Near-term performance, but includes salient external
stakeholdersstakeholdersstakeholdersstakeholders
perform efficiently in today’s businesses and develop skills to perform efficiently in today’s businesses and develop skills to perform efficiently in today’s businesses and develop skills to perform efficiently in today’s businesses and develop skills to
generate the products and services of the future.generate the products and services of the future.generate the products and services of the future.generate the products and services of the future.
external dimensions associated with future performanceexternal dimensions associated with future performanceexternal dimensions associated with future performanceexternal dimensions associated with future performance
Pollution preventionPollution preventionPollution preventionPollution prevention
Product stewardshipProduct stewardshipProduct stewardshipProduct stewardship
Clean techClean techClean techClean tech
Base of the pyramidBase of the pyramidBase of the pyramidBase of the pyramid
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(competencies) within business, which is described as a tension between applying existing
core knowledge and integrating new perspectives of others.
Graham and Bretels model remains similar of that of Hart & Milstein, as they head to
similar objectives, but the resulting strategies are described as more pragmatic:
• Waste prevention includes pollution prevention and adds social waste, such as
unproductive work, under-optimized process, or ineffective behavior.
• Stewardship includes product and service, and extends from integrating
stakeholders view to integrating external perspectives.
• Expanding opportunities re-envision core competencies to make them match to
plans and for the company's future, and applicable to non-technological innovation
or advances.
• Unmet needs and opportunities is a result-oriented vision rather than an altruist
concerns for social needs. As such, unmet needs and opportunities may not reside
only at the base of the pyramid.
The Iterative Model for EnThe Iterative Model for EnThe Iterative Model for EnThe Iterative Model for Energy Transitionergy Transitionergy Transitionergy Transition
We acknowledge that the challenge associated with sustainability, viewed through the
business lenses, is to identify strategies and practices that preserve natural resources and,
simultaneously, drive shareholder value.
The model we propose is a tool to support a specific strategy for alternative energies. It
considers the so-called triple bottom line, which are the benefits for the economic, social
and environmental pillars of sustainability.
The successful sustainable strategy for renewable energy production is built on tight
interactions and mutual influence between technology, economy, social and politics.
Because sustainable transitions deal with the complex coordination of multiple equilibria
and since technological progress can take time to mature, an evolution, based on a smooth
and continual but steady model of transition, rather than an abrupt revolution, is
recommended. Our Iterative Model for Energetic Transition (IMET©) model derives from
this recommendation. This cyclic model suggests that successive incremental changes can
be initiated from any of four "spheres of influence" and can have an impact at any stage of
the life-cycle of energy, from production to consumption and recycling. The sustainability
icon at the center simulates the triple bottom-line, confirming that any sustainability
strategy should converge towards objectives that are favorable to economy, society and
environment.
Figure 27: The Iterative Model for Energy Transition (IMET©)
The IMET© cyclic framework
founded on a progressive approach.
innovation, economy engagem
policies, can conciliate profitability concerns with ecological
being.
Strategic recommendationsStrategic recommendationsStrategic recommendationsStrategic recommendations
The strategy for sustainability
1. Technology: favor innovation
knowledge sharing, select solution
2. Economy: select a competitive technology; address the market with a skimming
strategy, based on a psychographic segmentation.
3. Social: address the u
social responsibility through education, information and thematic campaigns.
4. Politics: update energy policies and corporate governance norms, set global
objectives in collaboration with other gover
international institutions
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The Iterative Model for Energy Transition (IMET©) cyclic framework
lic framework recommends a realistic strategy for energetic transition
founded on a progressive approach. Discrete iterative initiatives based on technological
ngagement, social and individual responsibility, and
profitability concerns with ecological imperatives
strategy for sustainability can be implemented from four spheres of influence
: favor innovation through support to specific academic programs and
select solution based on efficiency and the economic viability
a competitive technology; address the market with a skimming
strategy, based on a psychographic segmentation.
: address the unserved bottom of pyramid consumers and develop individual
social responsibility through education, information and thematic campaigns.
update energy policies and corporate governance norms, set global
objectives in collaboration with other governments, energy agencies and
international institutions.
ponsible strategy to alternative energies
Academic Thesis 2015
for energetic transition
based on technological
, social and individual responsibility, and decisive energy
imperatives and social well-
spheres of influence:
fic academic programs and
based on efficiency and the economic viability.
a competitive technology; address the market with a skimming
nserved bottom of pyramid consumers and develop individual
social responsibility through education, information and thematic campaigns.
update energy policies and corporate governance norms, set global
nments, energy agencies and
All these strategies are interconnected
matrix of interactions and interests, sometimes in conflict.
coordination of balanced strategies
and political initiatives, which will
term objective. The earlier the initiatives
pollution will be for the global GDP and for the forthcoming generation.
Success stories
MMMM----Kopa SolarKopa SolarKopa SolarKopa Solar
We met Jesse Moore on February 2015 at the Seedstar World Conference, an exclusive
Switzerland-based startup competition in emerging markets. J. Moore is the k
disruptive innovation entrepr
achieve his vision to make high quality energy affordable to everyone, his company's (M
Kopa Solar) business model is clearly built around a Bo
M-KOPA sustainability strategy can be analyzed through the impact of economic, social
and political dimension.
The choice of the technology
solar energy is certainly what suits best countries such as Kenya, Uganda and Tanzania, as
their territories are among those that
been designed in accordance wit
basic. The M-KOPA solar home system includes:
• 8W high quality solar panel
• 2 LED lights with switches and multiple brightness settings
• 1 LED portable solar torch light
• Phone charging USB with 5 standar
• Portable solar radio
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interconnected and mutually influence each other in a complex
matrix of interactions and interests, sometimes in conflict. The successful strategy
d strategies between compatible technological, economical, social
which will collaborate towards a common triple bottom
The earlier the initiatives will be taken and applied, the lower the cost of
r the global GDP and for the forthcoming generation.
We met Jesse Moore on February 2015 at the Seedstar World Conference, an exclusive
based startup competition in emerging markets. J. Moore is the k
disruptive innovation entrepreneur driven by sustainability and social respo
achieve his vision to make high quality energy affordable to everyone, his company's (M
Kopa Solar) business model is clearly built around a BoP strategy.
M-KOPA Solar saves off-grid customers money by replacing
kerosene with affordable renewable energy. In less than 2
years since its launch, M-KOPA has connected more than
100,000 homes to solar power across Kenya, Uganda and
Tanzania, and is adding over 10,000 more homes each month.
Based on this growth M-KOPA was selected by Bloomberg as
the top “new energy pioneer” worldwide for 2014.
KOPA sustainability strategy can be analyzed through the impact of economic, social
technology has been adequately based on the natural environment:
solar energy is certainly what suits best countries such as Kenya, Uganda and Tanzania, as
their territories are among those that are most irradiate by the sun. The product has also
been designed in accordance with the "off-grid consumer" profile and needs, which are
KOPA solar home system includes:
8W high quality solar panel
2 LED lights with switches and multiple brightness settings
1 LED portable solar torch light
Phone charging USB with 5 standard connections
ponsible strategy to alternative energies
Academic Thesis 2015
and mutually influence each other in a complex
successful strategy is a
technological, economical, social
e towards a common triple bottom-line long
taken and applied, the lower the cost of
We met Jesse Moore on February 2015 at the Seedstar World Conference, an exclusive
based startup competition in emerging markets. J. Moore is the kind of
cial responsibility. To
achieve his vision to make high quality energy affordable to everyone, his company's (M-
customers money by replacing
kerosene with affordable renewable energy. In less than 2
KOPA has connected more than
100,000 homes to solar power across Kenya, Uganda and
Tanzania, and is adding over 10,000 more homes each month.
KOPA was selected by Bloomberg as
the top “new energy pioneer” worldwide for 2014.
KOPA sustainability strategy can be analyzed through the impact of economic, social
equately based on the natural environment:
solar energy is certainly what suits best countries such as Kenya, Uganda and Tanzania, as
The product has also
and needs, which are
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There is a huge unserved market of off-grid potential customers who demand basic and
reliable products. The 2-dimension BoP strategy successfully built an economically
sustainable business. It proposes a product that responds to the basic needs of isolated
rural households and it brings a solution to the financing barrier faced by low-income
customers with a pay-per-use installment plan: customers acquire solar systems for a small
deposit and then purchase daily usage “credits” for US $0.45, or less than the price of
traditional kerosene lighting. After one year of payments customers own their solar
systems outright and can upgrade to more power.
M-KOPA has been recognized for its pioneering business model and scale notably earning
the 2013 FT/IFC Excellence in Sustainable Finance Award.
The social sustainability is closely dependent on the economic strategy. M-KOPA business
model improves people quality of life by allowing off-grid households to get access to
electricity at an affordable price while preserving the environment. This fulfills the
company's vision, which holds in itself the values of social responsibility. One thing,
however, is not mentioned in the strategy, is the extension of social responsibility to the
customers themselves, and to the company when it comes to the disposal or recycling of
the devices they sell.
Politics, which includes governmental and international institutions, did not play a great
role in M-KOPA's sustainable strategy. This demonstrates that the absence of specific
policies of incentives should not refrain from developing technical, managerial or social
innovation towards renewable energies and sustainability. However, publicized recognition
through prize awards, or extension of responsibility to the full life-cycle of the product, are
areas where politics may play its partition for sustainability.
As M-KOPA carries on its mission, its social, economic
and environmental impacts spotlight this company as
a model of sustainability, with measurable results.
As of May 2015, M-KOPA impact includes:
• 200'000 homes connected to affordable solar power
• US $150 million of customer savings (over kerosene)
• 25'000'000 hours of fume-free lightning per month
• 260'000 tons of CO2 reduced
• 1650 employment created in East Africa
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TeslaTeslaTeslaTesla MMMMotorsotorsotorsotors
As transportation is one major source of pollution, it makes sense to address this sector in
a global sustainable strategy and consider the perspective of non-polluting vehicles.
Tesla Motors, Inc. is an American automotive and energy storage company. They gained
widespread attention in 2008 following their production of the Tesla Roadster, the first
fully electric sports car. As a pioneer, Tesla however faced a lot of challenges on a market
that was not ready for a change: many times close to
bankruptcy, Tesla posted profits for the first time in its
history only in the first quarter of 2013, after the
introduction of the Tesla Model S, in June 2012.
Chairman's vision consistently maintained Tesla's long-term strategic goal to create
affordable mass market electric vehicles. Elon Musk contributed US$70 million of his own
money to the company. Tesla success can be analyzed through the IMET© framework.
Thanks to the development of their patented Powerball battery technology, Tesla electric
engines could overcome two major barriers in the electric car industry: autonomy (from
370 to 430 km) and time for charging the batteries (20 minutes to charge up to 85%, in
stations equipped with superchargers). A third barrier was the availability of a recharging
station network to facilitate longer distance journeys, which was non-existent. In 2012,
Tesla Motors began building their own network of 480-volt fast-charging Supercharger
stations, which are becoming competitive against that of gas refueling stations.
The economic sustainability of Tesla is founded on a 3-step skimming strategy based on
VALS psychographic segmentation. It targets "innovators", "experiencers" or "achievers",
whose consumption behavior are highly driven by ideals, achievement, and self-expression
motivations rather than financial rationales.
The first stage, aligned with a long-term vision of sustainability, was to build reputation,
rather than profit, with the expensive, yet stunningly reliable Tesla Roadster. It opened to
the second stage of the strategy, with the production of the Model S, a premium sedan,
still expensive but competitive in the luxury segment. The offer will be soon enriched with
a SUV (Model X), which pre-order sales have reached 20'000 units, before engaging into
the third step of the agenda, which is to address the last layer of the skimming strategy
with a high-volume economy price mid-class vehicle, the Model 3. The success of Tesla's
strategy translates into sales volume that increased consistently and more than doubles in
the last 24 months (quarter 2, 2013 to quarter 2, 2015).
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Figure 28: Tesla Model S global sales by quarter
LMC Automotive, a global automotive industry
market intelligence provider even reported that,
during the first quarter of 2015, Tesla Model S
beats major competitors' models of the same
segment in the USA.
The social dimension is still a challenge which cannot depend on only one company. There
is no doubt that Tesla electric cars are acclaimed by the public, but this does not
necessarily translate into consumption behavior changes, because there is a strong set of
values and experience around car as a product. Some want to hear bold the noise of a
"real" engine, some want feel the torque when changing gear, and so on. Thus, it is not
only about technical progress and economic viability, but also about consumption behavior
and individual social responsibility. New values are attached to electric vehicle: cleanliness,
silence and performance, while consuming no fossil fuel. Such values could be spread
progressively by a large diffusion of the technology and by building a competitive industry.
So, on June 12, 2014, the company announced it will allow its technology patents be used
by anyone (under specific conditions). This will surely not only enlarge the consumer base
for electric vehicles, but it will challenge competitors' sustainability strategies and may
drive innovation for sustainable technologies.
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The Political institutions played a great role in the emergence of an electric car industry, as
the government approved a US$465 million in interest-bearing loans from the United
States Department of Energy in 2009. The funding was part of the US$8 billion Advanced
Technology Vehicles Manufacturing Loan Program. Furthermore, politics can still play a
major role in the success of the electric car industry by influencing consumption choices.
For example, federal credit and state tax credit system can still be reinforced, with policies
that favor taxation for companies which car fleet is electric. The sooner the industry will
reach maturity, the earlier it will be able to get rid of such subsidies and credits.
Since the electric car volume was more than confidential before 2012, Tesla invested
heavily in building an industry around the vision of a product that is attractive in terms of
price, use, technical specification and design, and which sustainability effects are expected
for the long term... including financial profitability.
PlastOil AGPlastOil AGPlastOil AGPlastOil AG
Environmentally speaking, plastic pyrolysis offers a sustainable energy recycling process.
However, the collection process, the availability of different sorts of plastic and
questionable profitability make it difficult to draw a real success story. Despite the claiming
of potential huge profits by plants manufacturers, only in 2004 did Zorba Industries declare
itself as India's first successful plastic pyrolysis plant. But, after deeper research, this
company does not seem very successful neither active in 2015.
Production costs and profitability uncertainties, in conjunction with political under-
commitment can prevent a technology to reach its full potential as a sustainable solution.
Plastic pyrolysis illustrates how a sustainable strategy depends on various internal and
external factors other than technical efficiency. A cost-benefit evaluation, conducted in
2013 by a group of Taiwan academic researchers, concluded that plastic pyrolysis oil
cannot compete with fossil energy in the current market without economic incentives, e.g.,
the implementation of subsidies. Today's oil prices fall even add more to the uncertainties
about the economic viability of plastic pyrolysis.
However, pilot projects such as plastOil AG in Sihlbrugg, Switzerland, has gathered some
success and claims to be technically efficient and economically viable. The plant, running
since 2006, is able to fully recycle plastic waste (85% in fuel, 15% in coal and some gas,
used to heat the pyrolysis system reactors) at a competitive production costs, estimated at
0.60 cents vs. 0.72 cents (excl. taxes) for similar product on the primary market. Not to
consider the savings on environmental compliance costs such as landfill taxes.
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Advanced Advanced Advanced Advanced Plasma Plasma Plasma Plasma PowerPowerPowerPower LtdLtdLtdLtd
Although the Plasma arc gasification or plasma gasification technology is technologically
mature and efficient, it is still at an early stage of its life-cycle. So far, barriers such as
economical effectiveness make it early for a success story. As the system then earns
revenues from the sale of power produced, a municipality that funds an estimated US$ 150
million project should seek a positive cash flow.
However, research projects and large-scale experiments have kept running around the
globe. Success became consistent as the economic barrier broke down with a plasma
gasification finally becoming cost effective: "We've finally reached a point where it's
actually going to be cheaper to take garbage to a plasma plant and make energy than it is
to take the garbage and just dump it into a landfill" says Lou Circeo, director of plasma
gasification research at Georgia Tech Research Institute and expert in that field.
This illustrates how politics and governmental institutions, through education and research
support can be involved into a long-term strategy for sustainability and green technologies.
Social acceptance still faces opposition, mainly from environmentalists. This is where we
see the mutual influence of technology, economic, politic and social. Education and
communication campaigns are necessary to communicate about technology efficiency
against pollution and its positive outcomes on social well-being.
One plasma arc gasification project that is successfully up and running is a relatively small
demonstration plant in Swindon, Wiltshire, England, operated by Advanced Plasma Power
(APP) since 2007.
The plant has an amazingly low environmental impact: it looks much like an ordinary
factory or warehouse, and has a modest smokestack that rises only 10m above its roof. A
full-scale plant built to a similar design could process 150'000 tons of ordinary household
and commercial waste per year, diverting some 98% of waste that would otherwise end up
in landfill. It would produce enough power for 17'500 homes and enough waste heat for
700. While it would be possible to build much bigger plants, it makes much more sense,
politically, environmentally, and economically, to construct many small plants geared to
local communities, removing their waste and producing power for them at the same time.
Over the time, the company has developed a specific competencies: the Gasplasma®
technology is a two-stage advanced conversion process which combines two long standing
and well proven technologies (gasification and plasma conversion) in a unique
configuration that offers a genuinely game-changing solution for a zero waste future.
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The alternative strategy impact
Renewable energies are expected to be a viable solution against the impact of fossil-based
energy. The alternative energies option brings a hope for a sustainable change, but still is
limited by the extent to which they can actually replace fossil energy. The advantages and
disadvantages of a sustainability strategy are to be analyzed with consideration to its
environmental, social and economic impact.
Environmental expectation
Renewable energies and green technologies are expected to reduce the pollution
generated by fossil-fuel combustion, responsible for the emission of pollutants. By
significantly reducing landfill disposal and waste proliferation, as well as using technologies
that generate little to no global warming emissions, such as carbon dioxide (CO2), nitrogen
oxide (NOX) and sulfur dioxide (SO2), the production and use of renewable energies are the
main drivers for the environment sustainability. By moving away from power generated by
fossil fuels the associated problems of air pollution are minimized.
Renewable energies associated with green technologies, at production, consumption and
recycling levels are expected to change the nature and amount of anthropogenic sources
of pollution and therefore reduce of air, water and soil contamination. The last Energy &
Climate Change report (World Energy Outlook) comments 2014 to be the first year where
energy-related CO2 emissions stalled despite a global economy expanding by 3%.
Figure 29: Global energy-related CO2 emissions. Source: IEA World Energy Outlook 2015
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However, the environmental benefits of renewable energies are related to the choice of
the technology to adopt, as some of these renewable energy systems come with adverse
environmental impacts. For example, hydropower projects such as dams can negatively
affect fish and wildlife, changing unalterably the surrounding ecosystem through
obstructing natural water flows and creating massive water reservoirs.
Yet the benefits of renewable energy projects extend further than just environmental, to
impact the social and economic environments, particularly for many developing countries,
where around 2 billion people don’t have access to the necessary power sources to
maintain a basic standard of living.
Social expectations
The progressive social adoption of renewable energies is expected to spread and to spark a
global mindfulness that impacts social values. The perception of an interdependent world
will hopefully translate into a change in consumer choices and behavior.
One major social expectation is the impact on public health, which can be measured by the
reduction of premature mortality due to breathing problems, neurological damage, heart
attacks, and cancer caused by air and water pollution.
In developed countries, renewable energies also provide security against disruptive events.
Green technologies, associated with a vast and inexhaustible energy supply, offer a more
reliable and resilient energy system. A distributed system (e.g. solar PV) is less prone to
large-scale failure because of its modularity: spread out over a large geographical area, a
severe weather event in one location will not cut off power to an entire region.
In the developing world, most governments focus on grid to supply heavily populated
regions, often leaving rural areas without access to a consistent supply of energy. As a
decentralized source of power, renewable energy could solve this distribution problem.
Other social benefits may include building community cohesion (because local people do
most of the work), reduce poverty and improve the living standard of rural population.
Economic expectations
Replacing fossil fuels with renewable energy has been found to not only to reduce
premature mortality, but also to lower lost workdays, and overall healthcare costs. The
Union of Concerned Scientists (UCS) estimates the U.S. aggregate national economic cost
associated with these health impacts is between $361.7 and $886.5 billion, which
represents between 2.5 to 6 percent of gross domestic product (GDP).
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Renewable energy also supports thousands of jobs as, compared with fossil fuel
technologies, which are typically mechanized and capital intensive, the renewable energy
industry is more labor-intensive. This means that, on average, more jobs are created for
each unit of electricity generated from renewable sources than from fossil fuels. This
industry requires employees in a variety of capacities, including manufacturing, project
development, construction and turbine installation, operations and maintenance,
transportation and logistics, and financial, legal, and consulting services.
Other benefits include, leasing or royalties paid to land owners on which projects are built,
new source of income for farmers by producing feedstock for biomass power facilities, and
less dependency on external suppliers and fossil energies prices, which are vulnerable to
political instabilities. Self-sufficiency will reduce money spent on importing energy by the
local government, while collecting taxes from renewable energy projects.
In addition, renewable energies help to stabilize prices. In contrast with fossil fuel prices
which can vary dramatically, renewable facilities, once the required upfront investments to
build are done, operate at very low cost and, for most technologies, the fuel is free. As a
result, renewable energy prices are relatively stable over time and, by increasing
competition and diversifying energy supplies, they have the potential to lower the price
and demand for fossil-based energy.
Limitations to renewable energies
Developing renewable energy technologies that exploit the sun, the wind, and geothermal
energy is critical to addressing concerns about climate change and environmental issues.
However, using renewable energy sources will not eliminate all environmental concerns.
Although renewable energy sources produce relatively low levels of GHG12 emissions,
manufacturing and transporting them produces some emissions and pollutants. The
production of some photovoltaic (PV) cells, for instance, requires the use of hazardous
materials which generate toxic substances that may contaminate water resources.
Renewable energy installations can also disrupt land use and wildlife habitat, and some
technologies consume significant quantities of water.
Also, despite their infinite availability, renewable energies heavily rely upon the weather
for sources of supply: rain, wind, and sunshine. Renewable energy sources may lack the
capacity to make energy because of unfavorable climate conditions.
12
Greenhouse gases
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Another limitation to renewable energy is that it has still not reached the capacity to
produce large quantity of energy as those produced by fossil-powered plants. To meet up
with this challenge, large tracts of land are required to produce energy quantities
competitive with fossil fuel burning. Additionally, renewable energy plants require high
initial investments.
At this stage of development, the renewable energy industry has still not reached its
maturity and is still in competition with fossil-based energy. But it has a promising future
as the primary production of renewable energy in within the EU-2813 has reached a 24.3%
share of total primary energy production from all sources in 2013. The share of renewable
energies in electricity production (including hydro) has been reported by Enerdata14 to
reach 30% in 2014.
Figure 30: World share of renewable energies in electricity production. Source: Enerdata (2014)
This analysis supports our proposal for a step-by-step iterative energy transition strategy,
as we have not yet reached the stage where we can totally get rid of fossil energy.
13
European Union 28 member states 14
Enerdata provides energy data, forecasts, market reports, research, news, consulting and training on the
global energy industry.
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Conclusion
"The solution to pollution is dilution", is a dictum which summarizes a traditional approach
to pollution management whereby sufficiently diluted pollution is not harmful.
Maybe a great solution in earlier centuries, this is no longer the case, as consideration of
the environment beyond direct impact on human beings has gained prominence. New
principles, often contained in modern regulation in developed countries, shifted from
diluting hazardous waste to make it non-hazardous. However, migration from pollution
dilution to elimination is often confronted by challenging technological, economical, social
and political barriers. Technology moves fast, and many renewable energy projects prove
themselves cost effective in the long term; yet, most countries lack the vision, knowledge
or money to invest in them. It is, however, much better to act now than later as the Stern
Review, a 700-page report about the economics of climate change, concludes that early
action could cost only 2% of the global GDP, but warns that the costs of delaying action will
result in significantly higher economic costs, up to 20% of GDP.
The renewable energies market is still a niche industry that needs tight collaboration with
the economic, social and political stakeholders to develop. As sustainable energy holds a
consistently growing share in en energy supply, some organizations claim that sourcing
100% of our energy from renewable source is possible. Strategically this means the
economy should be adapted to ensure environmental services are maintained.
Technological advances, economic choices, political initiatives, and consumer behavior are
the tools of a collective and individual social responsibility for the emergence of an
alternative system in which sustainability becomes a shared value, as ignition for a change
may originate from any of them... or all of them. The efficient strategy is an accelerator
which expresses the capacity to combine righteously these tools towards a collective
economic, social and environmental objective: To build and live in a sustainable world.
As the first generation to feel the impact of climate change and the last generation that
can do something about it, it is our responsibility to initiate a change and to take care of
our planet. Not that of someone else, because...
“The highest heavens belong to the Lord, but the earth he has given to mankind”
The Bible, Psalm 115:16
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"The Stone Age didn’t end for lack of stone,
and the oil age will end long before the
world runs out of oil."
Sheik Ahmed Zaki Yamani
Appendix
ENERGY PRODUCTION AND CONSUMPTION
Total primary energy production and consumption
ENERGY CONSUMPTION PROJECTIONS
World energy consumption will increase 56% by 2040
Total Primary Energy Production and Consumption (Quadrillion Btu)
World energy production
World energy consumption
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CONSUMPTION
Total primary energy production and consumption – source U.S. Energy Information Administration
OJECTIONS
increase 56% by 2040 – source: U.S. Energy Information Administration
Total Primary Energy Production and Consumption (Quadrillion Btu)
2008 2009 2010 2011 2012483.56 480.93 505.37 518.55 537.27
485.72 480.00 508.12 520.27 524.08
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source U.S. Energy Information Administration
source: U.S. Energy Information Administration
WORLD ENERGY CONSUMPTION BY TYPE
World energy consumption and population growth since 1820
AIR POLLUTION AND GLOBAL WARMING
Air pollutants can be from natural source or from human activities
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ION BY TYPE
World energy consumption and population growth since 1820 – source: ourinfiniteworld.com
AND GLOBAL WARMING
natural source or from human activities – source: U.S. department of Interior
"The current round of warming began during the
industrial revolution and has been accelerating
ever since. There is more than a coincidence, that
increases in CO2 emission and
vegetation are among the causes of the recent
rise in the Earth’s average surface temperature".
Richard P. Horwitz
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source: ourinfiniteworld.com
U.S. department of Interior
"The current round of warming began during the
industrial revolution and has been accelerating
ever since. There is more than a coincidence, that
emission and declines in
vegetation are among the causes of the recent
rise in the Earth’s average surface temperature".
GEOGRAPHIC SEGMENTATION FOR SOLAR TECHNOLOGY
Selecting the right technology for the right location:
on territory exposition to sun radiations, bu
VALS2 FRAMEWORK
VAL2 psychographic segmentation framework
profile based on values, attitude and lifestyle rath
Business Insights
Maslow’s hierarchy of needs
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FOR SOLAR TECHNOLOGY
Selecting the right technology for the right location: best locations for solar energy technologies
sun radiations, but also on economic opportunity - source. SolarGIS
VAL2 psychographic segmentation framework allows targeting potential customers based on the social
d on values, attitude and lifestyle rather than on a hierarchy of needs
Maslow’s hierarchy of needs
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energy technologies depends
source. SolarGIS
allows targeting potential customers based on the social
er than on a hierarchy of needs - source: Strategic
THE TOP 5 MODELS LEADING THE E
NISSAN LEAF
TESLA MODEL S
Top 5 electric car models – source: insideEVs
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MODELS LEADING THE ELECTRIC CAR INDUSTRY
TOYOTA PRIUS
MITSUBISHI
source: insideEVs
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CHEVROLET VOLT
ITSUBISHI OUTLANDER PHEV
SUSTAINABLE TECHNOLOGIES
Photovoltaic panels capture and convert solar energy to electricity
A battery pack and an electric drive unit
industry.
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Photovoltaic panels capture and convert solar energy to electricity
A battery pack and an electric drive unit provide a zero-pollution motorized engine to the automotive
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engine to the automotive
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Pyrolysis convert plastics and tires back into the raw material they originate from, such as diesel, without
the need to separate each type of plastics.
Plasma arc gasification is a complex process which allows virtually almost any type of waste to be recycled
into a source of energy
Audi new ecological diesel is made of CO2 and water and has a zero net carbon footprint, as it is being
created through high-temperature electrolysis powered from renewable sources.
STRATEGIC EVOLUTION OF SOME GREEN TECHNOL
Flat panel displays
• Political influencer: Environmental Regulations, like Restriction of Hazardous Substances (RoHS),
Waste Electrical and Electronic Equipment (WEEE), Energy Using Products (EuP), Energy Star, TCO
and others
• Technology and economy
represent cost reductions for panel makers, as long as the technologies improve and more suppliers
adopt them, green will eventually lead to lower costs.
• Social influencer: Social Responsibi
savings
Green Technology in Flat Panel Displays: Market Technology and Trends Report
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Audi new ecological diesel is made of CO2 and water and has a zero net carbon footprint, as it is being
temperature electrolysis powered from renewable sources.
F SOME GREEN TECHNOLOGIES
Political influencer: Environmental Regulations, like Restriction of Hazardous Substances (RoHS),
Waste Electrical and Electronic Equipment (WEEE), Energy Using Products (EuP), Energy Star, TCO
Technology and economy influencers: Cost Reduction: While not all green FPD technologies
represent cost reductions for panel makers, as long as the technologies improve and more suppliers
adopt them, green will eventually lead to lower costs.
Social influencer: Social Responsibility, such as corporate citizenship in areas including global energy
reen Technology in Flat Panel Displays: Market Technology and Trends Report - Source: DisplaySearch
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Audi new ecological diesel is made of CO2 and water and has a zero net carbon footprint, as it is being
Political influencer: Environmental Regulations, like Restriction of Hazardous Substances (RoHS),
Waste Electrical and Electronic Equipment (WEEE), Energy Using Products (EuP), Energy Star, TCO
influencers: Cost Reduction: While not all green FPD technologies
represent cost reductions for panel makers, as long as the technologies improve and more suppliers
lity, such as corporate citizenship in areas including global energy
Source: DisplaySearch
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A responsible strategy to alternative energies
A. Aurélien Mottet | Academic Thesis 2015
Mottet A. Aurélien, MScM 5.2 | University of Lausanne
Master Thesis - A Responsible Strategy to Alternative Energies
August 2015
Go Green!Go Green!Go Green!Go Green!