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Google has long been a proponent of green technology and reducing carbon emissions for some time. In 2007 they announced a plan to become “carbon neutral”, reducing their carbon emissions from data centers and offices to zero. Part of the solution was building a massive solar panel at their Mountain View, California campus. They also supported (with VC money) the RechargeIT initiative, which promotes the use of plug-in hybrid electric vehicles. However, a November 27th announcement shows that Google’s commitment to renewable energy goes beyond reducing their office’s carbon footprint and giving money to other organizations. They are launching an initiative known as RE>C, which aims to develop cheaper and cleaner energy sources than coal. RE>C will “focus initially on advanced solar thermal power, wind power technologies, enhanced geothermal systems and other potential breakthrough technologies.” ( Google Press Center ). This move is not only responsible, but it also makes good business sense.

Google has millions to spend on side projects beyond the search engine and advertising core of their business, and renewable energy is increasingly an enticing investment as the world slowly wakes up to the reality of global warming. The burning of coal is currently the primary energy source for most people around the world, making up 40% of the world’s electricity production. It is also one of the leading producer of greenhouse gases, which contributes to the climate crisis. Coal is so popular because it is the cheapest energy source, but Google’s initiative aims to change this.

RE<C has already begun supporting two companies that are working towards cheaper electricity from solar and wind power. eSolar Inc. specializes in solar thermal power. They are driven by the simple concept that renewable energy should be priced competitively with fossil fuels. They produce relatively-small panels, which they call “heliostats”, and they are installed in configurations that maximize the energy absorbed. These installations are efficient, fast, and scalable to different sizes of power plants. Makani Power, which draws its name from the Hawaiian word “mah kah’ nee” meaning wind, focuses on high altitude wind energy. Founded by an MIT PhD and a wind surfing champion, Makani is developing high altitude wind capture technologies that have the energy potential to supply the entire globe.

Google has a real need for these types of technologies, as its data centers are some of the largest in the world. It’s not at all surprising that the biggest fish in the Silicon Valley pond is taking a stab at supporting renewable energy initiatives. What is surprising is that the move is not entirely a venture capital project. In addition to supporting companies like eSolar and Makani, Google will be hiring an in-house team of engineers and energy experts to work on the problem of cheaper-than-coal electricity. They will be tasked with the specific goal of “building 1 gigawatt of renewable energy capacity that is cheaper than coal. (That’s enough electricity to power a city the size of San Francisco.)” according to a Google press release. Though there are no specific numbers in terms of money allotted for this team, they are expected to complete their task “in years, not decades”.

While countless bloggers and industry experts are bemoaning Google’s apparent inability to stay within their realm of expertise, one cannot help but admire their hands-on approach. As an organization, they attract limitless talent, pull in countless billions, and have a reputation for success. They’re oozing money, and it’s hard to criticize a company that chooses to use their assets to support an important cause. Besides, this is essentially a business initiative. Renewable energy is beginning to catch on, and Google is getting in on the ground floor of an industry that is bound to grow. It’s a smart move, no matter how you look at it. Good PR + good ROI + doing good = a winning combination.

For more information about RE>C, please visit http://www.google.com/corporate/green/energy/index.html. To contact Google about investment, R&D, or project opportunities, send proposals and contact information to renewables@google.com.

Sunday, December 16th, 2007 Both comments and pings are currently closed.

By Haley January Eckels