What do you know about clean technology or Cleantech investing? The name speaks for itself. The notion of clean technology is attributed to the environmentally friendly companies that strive to improve their performance and efficiency while lowering energy consumption, waste and various hazardous inputs. The logic is quite simple.
Clean technologies can help the companies to consume less energy and materials, produce less waste and, as the result, provide more economic value to the company’s shareholders.
When speaking about Cleantech, we usually imply 6 directional areas: energy, water, advanced materials, transportation, agriculture, energy efficiency and manufacturing.
Let’s start with the largest one and then delve deeper into the world of Cleantech.
Energy efficiency is a question that attracts much attention in both political and business circles. Understanding of global climate change, oil depletion and energy security concerns have given rise to an increased recognition of the importance of clean technologies. Besides, people have realised that using modern, energy efficient solutions can significantly reduce the costs of their business. Talking about energy as a whole, we should touch upon the solar, wind and biofuel power alternatives.
Though still not as widely spread as hydropower, solar technologies have great potential. Hydropower is restricted by the limited number of available water deposits, suitable dam sites, in particular. However, the greatest advantage of solar power lies in the unlimited nature of sunlight available in many places on our planet.
Solar power is good for heating and electricity. It is absolutely pollution free and friendly for the environment. The biggest obstacle for making this type of energy more widely used is its cost. For now, solar energy is still very expensive and dependent on the government’s help, in comparison with the availability of grid electricity. Nevertheless, this may quickly change because of the investment boom in solar power.
Wind power can also be used to produce electricity. Though this type of energy generation has been rapidly developing during the recent years, it still forms only a small part of global power use. Renewable and clean, wind power is rather inconsistent, which makes it only suitable as a supplementary energy source.