Will Non-energy Cleantech be Left Behind?

The Renewable Energy Target (RET) legislation has been passed by the Australian legislature but the Carbon Pollution Reduction Scheme (CPRS) was defeated. What impact will this have on the cleantech sector, both in the short and longer terms?
Let’s start with the longer term and consider the prospects for cleantech companies in, say, five years time. This outcome is reliant on the key drivers behind the adoption of cleantech. In my view there are four unique and significant drivers behind the global move towards clean technologies – and only one of those relies on regulatory measures.

Firstly, cleantech solutions are being integrated into many real assets that provide core services, such as power, water, waste and recycling over the long term. This ensures that any over-exuberance in investments, comparable to the IT bubble of the early 2000s, has a lower bound and tangible level.

Secondly, the demand for these core services of energy, water and resources is growing due to both population growth and increasing wealth and its consequent improved standard of living.

Thirdly, as the world continues to use and deplete its natural resources there is increasing pressure on communities to act sustainably. Not only is the demand increasing but the supply of resources is decreasing, so it is essential to use more innovative technology to improve efficiency and reduce waste.

Finally, and certainly not most significantly, there is the recognition of climate change and the consequent regulatory regimes, such as the RET and the CPRS. This is a separate driver from those above and, whilst it will result in additional growth in some cleantech sub-sectors, it does not underpin the cleantech sector as a whole. As a result, the longer term growth of cleantech is assured and will be unstoppable.
So whether the RET and/or the CPRS, and their equivalents in other countries, are passed now, next year or the year after will have little impact on the long term growth of the sector. The long term winners will be those technologies that provide required solutions at the lowest costs. There may be some minor technology variations if the early stage subsidies are not provided, causing some of the individual technologies to fall in the valley of death. In general however, the sectors that could be winners will still be winners and the ‘petty politics’ of 2009 will become a mere detail in a few autobiographies of retiring and elderly ex-ministers.

A valid question is whether this will exhaust the investment appetite for cleantech leaving nothing for all the other sub-sectors. Will sub-sectors such as water, waste, vehicle technologies, energy efficiency and energy storage stagnate whilst their cleantech cousins in clean energy boom?

Will the delay and weakness of what may become the CPRS mean that Australia’s non-energy related clean technologies will remain on the shelf?

Looking back at the fundamental drivers of cleantech, the answer is clearly ‘no’. The other sub-sectors may not accelerate as fast in the short term and maybe the investment returns will not be so strong. However, the demand for increased resource efficiency, reduced waste and improved environmental performance will ensure that technologies across the cleantech spectrum will succeed even in the short term. We may go through a different ‘sliding door’ with respect to the uptake schedule and the exact technology mix and this may have profound impacts on individual companies and investments. From a sector level, however, the industry growth will continue and innovation and adoption will be widespread for all industries.

Cleantech is not reliant on regulatory regimes. Furthermore, for the technologies that improve efficiencies, reduce waste and consequently increase customer profits, investment will always be available.

Politics may influence the short term behaviours, but the long term drivers for cleantech adoption are far bigger than mere national politics.

This is an abridged version of an article that was originally published on Environmental Management News in August 2009. For the full version, please email info@auscleantech.com.au

CleanFutures Secures Grant to Commercialise World Leading Biosensor

An Adelaide company has secured funding to finalise prototypes and complete testing of a biosensor technology that is set to revolutionise the testing of water, wine and food throughout the world.

CleanFutures AquaSens, based in Adelaide, was formed specifically to develop the AquaSens biosensor. The technology is a rapid, highly sensitive sensor probe for the detection of nitrates and phosphates in water, and sulfites in wine and food products.

The technology was developed by Monash University in Victoria and had started its commercialisation process through a Victorian State Government body, Nanotechnology Victoria. When the funding was wound down for this body earlier this year, two South Australian entrepreneurs set about bringing the technology to Adelaide for further commercial development.

Kristin Alford and John O’Brien saw the global opportunity for the technology, secured the exclusive rights to commercialise it and established CleanFutures to bring to it to market.

Bio Innovation SA recognised this potential and has provided funding through its Business Development Initiative(BDI) grant to allow the final testing to be completed.

“We are delighted to support CleanFutures AquaSens and are excited about the potential their technology has for the water, wine and food industries,” said Mr Neil Finlayson, Bio Innovation SA’s Business Development Director.

The funding will enable CleanFutures AquaSens to design and manufacture industrial prototypes of the biosensor and to then conduct customer trials. One of these trials will be completed with the Australian Water Quality Centre, SA Water’s testing laboratory.

The technology allows for tests to be completed immediately and in the field rather than taking samples for further analysis in a laboratory. Results are within minutes rather than having to wait a week or more. Increased phosphates and nitrate levels are key indicators of the likelihood of blue-green algae forming. The use of this biosensor could provide early warning of problems in water bodies such as the River Murray.

“The BDI grant will enable CleanFutures AquaSens to complete critical milestones essential for progress through commercialisation, including designing and manufacturing an industrial prototype and conducting customer trials.”

“We are excited to be able to further the early commercialisation work conducted by Nanotechnology Victoria and Monash University”, said CleanFutures AquaSens’ CEO, Kristin Alford.

The issue of sulfite in wine is currently a major problem for the industry: as it is hard to detect and it is estimated that 1% of the population are sulfite-sensitive. With South Australia’s position as a leader in wine production, the development of the sulfite biosensor here is a natural fit. CleanFutures has arranged for the technology’s inventor, Professor Sam Adeloju from Monash, to work with both Flinders University and The Australian Wine Research Institute (AWRI) to finalise the required research for the sulfite application of the AquaSens technology.

“Once proven the sulfite biosensor will enable all wineries to test every barrel of wine and make sure that sulfite levels are managed effectively. This will provide clearer consumer information for those that are sensitive to sulfite,” said John O’Brien, CleanFutures AquaSens’ CFO.

“The ability to test both water and wine on the spot will enable water companies and wine makers to be able to manage their products better. We believe that this technology will revolutionise testing the world over and further enhance South Australia’s reputation for clean technologies,” Dr Alford added.

Adelaide Cleantech Network Drinks - Tuesday 6 October 5:30

You are invited to attend the Adelaide Cleantech Network drinks on Tuesday 6 October 2009 at 5:30 until 7:00pm at the Historian Hotel, 18 Coromandel Place, Adelaide (between Pirie and Grenfell Streets and close to Gawler Place)

To be added to the distribution list for future events please email acn@auscleantech.com.au

The evening is sponsored by ZeroWaste SA and will include:
- a short presentation on a successful commercial sustainability case study funded in part by ZeroWaste SA.
- 2 minute pitches from growth companies looking for investors. This is your chance to tell the Adelaide Cleantech community what you are looking for or what you have achieved.

Details of the pitching companies will be provided here the week before the event.

There is no charge for attendance but bookings are required. Please RSVP by COB on Friday 2 October to rsvp@auscleantech.com.au


Interested in Pitching?
Companies that are investor ready and actively seeking investment are invited to undertake a two minute pitch. Also companies looking to announce progress or updates. The two minutes will be strictly enforced and you will be able to have a single slide on the screen. There will be a limited number companies invited to pitch at each event. If you are interested in pitching at this event or future events, please email pitching@auscleantech.com.au with your single proposed slide for more information.