Written by Louie Liu and Ellen Xu
1975 – US scientist Wallace Broecker puts the term “global warming” into the public domain in the title of a scientific paper.
1998 – Strong El Nino conditions combine with global warming to produce the warmest year on record. The average global temperature reached 0.52C above the mean for the period 1961-90
2006 – Carbon emissions from fossil fuel burning and industry reach eight billion tonnes per year.
2012 – Arctic sea ice reaches a minimum extent of 3.41 million sq km (1.32 million sq mi), a record for the lowest summer cover since satellite measurements began in 1979.
2017…..
And yes, the climate change is happening without a doubt and it has impacted how we live and how businesses operate. Being one of the most mentioned culprits of climate change, fossil fuel, a conventional and reliable energy source, is designated to take a backseat. The change of energy landscape has created opportunities for some businesses. For the renewable energy players, the growing concerns of climate change have pushed them to the center stage in the energy industry. Among those companies, Vestas, an exclusive wind energy firm and a pioneer in the industry, has seen its business taking a significant leap forward.
Founded in 1945, Vestas entered the wind turbine industry in 1979 and produced wind turbines exclusively from 1989. They made a strong push during the 2000s as they saw strong government support to renewable energy, such as wind power. From 2000-2010, the world-installed capacity went nearly 10 folds, increasing from 24,320MW to 239,000MW in 10 years. Vestas truly believed that a stable energy supply is an essential part of the infrastructure for a developed society. Energy is central to nearly every major challenge and opportunity the world faces today. Be it jobs, security, climate change or food production – access to sustainable energy is essential for strengthening economies, protecting ecosystems, reducing poverty and achieving equity. To truly generate an impact to a sustainable future, Vestas tends to look at the whole lifecycle aspect of delivering products to market. A single Vestas wind turbine will generate around 25 to 40 times more energy than it uses in its entire lifecycle and return this back to society, providing a viable solution to the future of energy source.
Being one of the world top 3 wind turbine manufacturers, Vestas has enjoyed a successful run, leveraging its first-mover advantage and capturing a large share of the market. Since Vestas’ first IPO in 1998 on Nasdaq Copenhagen, its market cap has increased 40 times, and a lot of Vestas’ impressive milestones have to go to its effort in targeting environmental sustainability and a strong belief in a better future for human beings. At the same time, Vestas is also rewarded financially for its contribution to a more sustainable future.
Climate change has brought us harsher environmental conditions than human kind has ever witnessed, but at the same time it presents opportunities for companies who are dedicated to build a greener future. Although how we battle with climate change in this new era remains uncertain as our population expands and industrialization in developing nations does not show promising signs of slowing down, what one can predict is that more and more sustainable businesses will enter our sights, utilizing technological innovation to build a better world around us.
The work being done in the renewable energy field is great, however in order for it to become the norm, there needs to be more efficient and fool-proof ways to manage its variability.
Renewables pose some interesting debates. Besides the issues of energy loss and variability, which I believe technology could solve in the long run, there are other issues less talked about which are certainly quite important.
First of all, “rare earth” metals are used in electric car batteries, solar panels and wind turbines. Given that they are a finite resource, that acquiring these materials have serious environmental impact, and their geopolitical dynamics, the sector is doomed to suffer unless alternative materials are found or developed.
Another important effect of green tech has to do with their effect on the environment and animal travel patterns. Wind turbines are having negative effects for bird migration and even for bee travel across certain regions. This is because wind turbines are set up in areas of strong predictable wind currents, which are the same ones that have been used by animals for decades. The consequences of this animal travel disruption go beyond the animals themselves, and for example in the case of bees it affects crop pollination for example.
Interesting article. It would be nice to know how Vestas is reacting to perhaps greater competition as implied in the article (given that the market has expanded 10 folds) and how it is potentially setting the trend for competition going forward.
Wind power has lots of pros, but unfortunately in many places it’s not as viable as other sources of green power. In a country like Italy, where there is serious hydro-geologic risk and limited wind strength, finding the right location to place wind turbines is proving tricky and it’s strongly limiting the spread of this technology. I’m curious to see if technological advances in the field will make the turbines more secure and efficient – and maybe not as noisy – and will help in growing their presence.