Tuesday, March 16, 2010

R&D necessary for Energy Policy and Private Sector Developement


As I rarely read the Herald, as it is a rather depressing Newspaper to read full of bitter criticisms by journalists who had previously left various media organizations due to lack of Journalistic Freedom, but an article of interest caught my attention, as it states an opinion that is spot on with my own personal philosophy as it relates to Private Sector: the necessity of R&D (Research and Development).

The author, Mr. Ralston Hymann, in the article “Private Sector must become more innovative now”, published Sunday 21st February 2010, by Ralston Hymann, ‘On the Frontier’ columnist, The Jamaica Herald quite correctly paints a picture of a Private Sector, both Local and FDI (Foreign Direct Investor), who are mostly in Jamaica to make money yet still do not wish to invest in R&D (Research and Development) with the assistance of the local universities.

Even being allegedly the root cause of the Economic Collapse that resulted in FINSAC and now still apparently singing the same song in the face of the JDX (Jamaica Debt Exchange)……….albeit one cannot start chastising the Private Sector before the end of the Fiscal Year 2010 – 2011, as it is still early days yet. 

The Government of Jamaica economic recovery plan as laid out in the article “'No more skylarking' - PM outlines economic programme and debt exchange”, published Thursday, January 14, 2010 by Arthur Hall, Senior Staff Reporter, The Jamaica Gleaner.

Which, as far as one can see, aims to:

  1. Increase the tax net
  2. Reduce local debt
  3. Sell off non-performing Government of Jamaica infrastructure
  4. Cauterize the continuous slide of the Jamaican dollar via a US dollar denominated loan from the IMF,
  5. Implementation of laws necessary to encourage growth such as the Credit Reporting Act and the CyberCrime Act.
  6. Reduce inflation by the separation of our economy from the US dollar by liberalizing the Energy Sector.

All stated in the article “Move to Tackle CyberCrime - Hacker got Golding”, published Sunday  February 14, 2010 by Philip Hamilton, Gleaner Writer, The Jamaica Gleaner.

However, once the Energy Policy as laid out by Senator James Robertson, Minister of Energy and Mining is implemented both in terms of allowing competition in the form of issuing Power Utility Company Licenses and Standards to produce and distribute Electrical Power using Renewable Resources, both Centralized and Distributed Models as well as Licenses and Standards for the production and distribution of Bio-Fuels i.e. Anhydrous Ethanol, E85, Bio-Diesel, Hydrogen, LNG (Liquid Natural Gas) and Biogas.

The Private Sector, both Local and FDI (Foreign Direct Investor) will have no excuse, as mass production and economy of scale implemented by interested entrants into the Energy Sector, if facilitated by the Senator James Robertson, Ministry of Mining and Energy by the use of financial incentives, such as equipment importation tax waivers and five (5) year income tax breaks would reduce the overall cost of Electricity and Fuel, prime drivers of inflation, the main disincentive to production.
                                         
R&D can help the Private Sector, both Local and FDI (Foreign Direct Investor), as it can help AT&T, Verizon, Sprint and T-Mobile as suggested in the article “Telcos Need to Ramp Up R&D to stay Competitive”, published August 27, 2009, 9:55PM EST by Stacey Higginbotham, GIGAOM, BusinessWeek.

This is necessary, as innovation is the essential spur that drives competition and creates innovative new products, such as the testing and introduction of high speed Fiber Optic connections direct to people’s homes as stated in the article “Google subsidizing ultrafast broadband test”, published February 10, 2010 8:58 AM PST by Stephen Shankland, CNET News - Deep Tech.

Or the development of Biodiesel using generically modified Escherichia coli bacteria, as stated in the article “Gene-altered bugs make biodiesel” published Wed Jan 27, 1:31 pm ET, AFP, Yahoo! News. This can be achieved by a Social Partnership with the Private and Public Sector, both Local Corporate and FDI (Foreign Direct Investors) to fund the overall cost of tuition at the University of the West Indies and other Universities.

The Government of Jamaica can also play its part by forcing the Private and Public Sector, both Local Corporate and FDI (Foreign Direct Investors) to invest in Tertiary Education via the provision of not only employment at the companies as part of their Undergraduate Degree Program but also by funding research programs for Postgraduate Masters and PhD students in Renewable Energy exchange for tax breaks and tax holidays.

As is the case in more developed Western Economies and Far East Economies such as the United States of America as suggested in the article "Turning the energy innovation engine at MIT", published March 8, 2010 8:29 AM PST by Martin LaMonica, CNET News - Green Tech.

Not Britain and Japan, as ironically, it is the countries such as People’s Republic of China that are leading the charge in terms of Research and Development, as the Developed First World Countries such as the United States of America, Britain and Japan as stated in the article “America's Green Innovation Problem”, published May 3, 2010, 4:41PM EST By Rob Atkinson and Devon Swezey, BusinessWeek - VIEWPOINT due to a lack of funding by their respective Governments.

Worse, Governments are being lulled into a sense of complacency by the fact that entrepreneurship is on the rise as stated in the article “Business Innovation 'Made Us Human' and Moves Us Forward”, published May 28, 2010, 11:29AM EST By Karen E. Klein , BusinessWeek - SMART ANSWERS.

But there is hope. Since the Deep Horizon Oil Leak off the coast of Louisiana on Tuesday April 20th 2010, still gushing for the last eleven (11) weeks and two (2) days, Senator Barack Obama, President of the United States of America, has come out criticizing BP initially who, despite their technological expertise, have failed to plug as stated in the article “BP fails to plug oil well with 'top kill' method”, published May 29, 2010 4:23 PM PDT, by Reuters, CNET News - Green Tech.

President of the United States of America, Barack Obama talking tough as stated in the article “Obama says ready to "kick ass" over Gulf oil spill”, published Tuesday Jun 8, 11:25 am ET, By Anna Driver and JoAnne Allen, Yahoo! News.

Even lashing out at comments made by BP CEO Tony Hayward for describing the oil disaster and the resulting spill as being “very modest” as stated in the article “Obama lashes BP Chief, media over oil disaster”, published Tuesday Jun 8, 11:25 am ET by Stephen Collinson, Yahoo! News. Now he is walking the walk of a converted man, as after making brash statement about a six (6) month moratorium on oil exploration as stated in the article “Obama signals tough stance on oil industry”, published Tuesday Jun 8, 11:25 am ET, By Russell Blinch and Rick Cowan, Yahoo! News.

This is backed up by feeble Democrat support as stated in the article “Democrats propose further tax hike on offshore oil”, published Tuesday June 8th 2010, By ANDREW TAYLOR, Associated Press Writer, Yahoo! News.

Obama’s actions were stopped by a Judge (possibly on the Big Oil Payroll?)  as stated in the article “Judge blocks Gulf offshore drilling moratorium”, published Tuesday June 22, 2010 By MICHAEL KUNZELMAN, Associated Press Writer, Yahoo! News.

Not to mention challenged by BP executives, who charged that it would disrupt the balance of Oil Supply if oil exploration is banned as stated in the article Big Oil strikes back, slams Obama's drilling plan”, published Tuesday June 22 2010 by JANE WARDELL and JENNIFER QUINN, Associated Press Writers, Yahoo! News.

Now Senator Barack Obama, President of the United States of America is singing a new tune. Not only had he initially come out in support of ending the dependence on oil of the United States of America as stated in the article “Obama: End dependence on fossil fuels”, published Wednesday June 2010, By JULIE PACE, Associated Press Writer, Yahoo! News.

But the President of the United States of America has also come out swinging in the direction of supporting more funding for Green Energy research start-ups in Silicon Valley to aid job creation in the Green Energy field as stated in the article “Obama commits billions to solar firms”, published July 4, 2010 11:34 AM PDT by Reuters, CNET News - Green Tech to counter the growing migration of companies to the People’s Republic of China, now awash with funding and Government Research money from the Government of the People’s Republic of China.

This change of strategy by the President of the United States of America is welcome, as currently due to the inactivity in the Energy and Solar fields for such a protracted length of time and lack of funding for Green Energy start-ups, there is a lack of trained or skilled personnel within the Green Energy field. This required companies taking IT and Telecoms People and re-training them to work in the Energy Field as stated in the article “People power in short supply for green tech”, published March 26, 2010 8:29 AM PDT by Martin LaMonica, CNET News - Green Tech.

A field still looking for its big innovation moment that could be a game changer as succinctly stated in the article “Green tech seeks its 'Netscape moment'”, published March 3, 2010 5:46 AM PST by Martin LaMonica, CNET News - Green Tech. There is the threat of theses investments becoming another Tech Bubble as was the case in the 90’s as stated in the article “Green Tech can't shake the bubble question”, published March 10, 2010 12:36 PM PST by Martin LaMonica, CNET News - Green Tech.

However, there are challenges, such as:

  1. Shortage of rare earth metals as stated in the article “Rare-earth metal recycling needed to power green tech”, published May 17, 2010 7:31 AM PDT by Martin LaMonica, CNET News - Green Tech
  2. Lack of funding within the United States of America as stated in the article “America's Green Innovation Problem”, published May 3, 2010, 4:41PM EST By Rob Atkinson and Devon Swezey, BusinessWeek – VIEWPOINT
  3. Lack of certification, now also finally being addressed by CompTIA, a certification body usually associated with computing as stated in the article “CompTIA offering Green IT exam”, published March 25, 2010 10:34 AM PDT by Lance Whitney, CNET News - Green Tech.

However, there is progress in the Bio-Fuels Sector.

The Bio-Fuel Industry is getting a boost as stated in the article “'Green' gas and diesel get boost in biofuel grants”, published December 4, 2009 12:33 PM PST, by Martin LaMonica, CNET News - Green Tech. This is specifically as it relates to the production of Anhydrous Ethanol using sewage, and pyrolized organic waste from any organic source as stated in the articles:

  1. Microbes to start making ethanol, Chemicals”, published November 18, 2009 9:52 AM PST by Martin LaMonica, CNET News – Green Tech
  2. Microbe converts sludge into ethanol”, published Friday 11, December 2009, by Martin LaMonica, CNET News – GreenTech
  3. Wood-chip ethanol maker opens plant”, published October 15, 2009 7:50 AM PDT by Martin LaMonica, CNET News – Green Tech
  4. A Forest epidemic turns into Energy opportunity”, published April 7, 2010 2:04 PM PDT by Candace Lombardi CNET News - Green Tech

Ditto for Bio-Diesel:

  1. Gene-altered bugs make biodiesel”, published Wed Jan 27, 1:31 pm ET by, AFP, Yahoo! News
  2. 'Green' gas and diesel get boost in Bio-Fuels grant”, published December 4, 2009 12:33 PM PST, by Martin LaMonica, CNET News - Green Tech
  3. Researchers coax bacteria to make Biodiesel”, published January 27, 2010 3:59 PM PST by Martin LaMonica.

Both must be accelerated.

Even in the traditional frontier of Solar power, the Government of Jamaica must begin its expansion with the recent implementation of practical Steam Plants in the case of eSolar as stated in the article “eSolar plugs solar plant into California grid”, published August 4, 2009 9:01 PM PDT by Martin LaMonica, CNET News - Green Tech as the only shining example thus far of a solar power plant able to deliver power competitively lower than that of Fossil Fuels.

Even the production of LPG (Liquid Petroleum Gas) and LNG (Liquid Natural Gas) as well as Hydrogen must be considered a part of the Energy mix along with the use of the Bloom Energy Server as stated in the article “Bloom Energy unveils fuel cell of the future”, published Thu Feb 25, 9:01 am ET by Glenn Chapman, AFP, Yahoo! News.

Apple Engineers have mysteriously been filing patents to develop Solar powered devices, possibly with the processor of these devices such as the:

  1. Apple iPod
  2. Apple iPod Nano
  3. Apple iPod Shuffle
  4. Apple iMac
  5. Apple Mac Mini
  6. Apple TV
  7. Apple Macbook Air
  8. Apple MacBook Pro
  9. Apple iPad, their latest toy

They should all be Solar powered, possibly from ambient light of even radiation from any part of the Electromagnetic Spectrum via the touch screen display as stated in the article “Apple eyes gadgets with built in Solar panels”, published January 22, 2010 7:46 AM PST by Martin LaMonica, CNET News - Green Tech.

This is further asserted in the article “Apple patent bid combines Solar with touch screen”, published June 7, 2010 6:31 AM PDT by Martin LaMonica, CNET News - Green Tech, thereby in theory eliminating the battery charger from their devices altogether.

This is an impressive leap forward by Apple, and it is hoped that the development of these Solar powered devices will result in a virtual extension of the battery time of these devices, and bring the convenience of self-charging Solar Technologies, long being designed for African countries with limited access to electricity, to Developed countries with consumers willing to pay a premium for technology that basically would cut the tethered electrical cord, still the last relic of an analog era that most devices have yet to free themselves.

Interestingly enough, the Nissan Leaf as described in the article “Nissan Leaf projected to be in the black”, published April 30, 2010 5:44 AM PDT by Reuters, CNET News - Green Tech as well as in the article “Nissan begins limited test-drives for Leaf EV” published June 11, 2010 6:32 AM PDT by Reuters, CNET News - Green Tech, is an all electric car, a car whose potential as a consumer product to attract droves of followers similar to that of Apple and its product cannot be underestimated.

Quiet as a golf cart, it now with a noisemaker to make its otherwise stealthy approach have a presence as stated in the article “Nissan Leaf brings the noise”, published June 11, 2010 9:51 AM PDT by Wayne Cunningham, CNET News - The Car Tech blog.

Battery powered cars are the future and will be the wave of the future. A future the People’s Republic of China is slowly muscling it way into via battery technology, as the People’s Republic of China BYD, a fifteen (15) year old company, is the foremost technology researcher on batteries in everything from mobile phones to cars

BYD would be in the running to overtake even the mighty Japan in the race to produce the first commercially viable electric car, as everyone is at the same point at the starting line as stated in the article “BYD Dreams of Electric Cars”, published June 28, 2010, 3:10PM EST By Inder Sidhu, BusinessWeek - BOOK EXCERPT.

Investment is definitely coming to Jamaica in the form of the Government of People’s Republic of China having already begun negotiating with the Government of Jamaica as it relates to acquiring the Kingston Wharves as part of a US$6 billion investment in the relocation of Tinson Pen and VernamField Aerodromes.

Not to mention the development of the railway specifically for the transshipment of goods and services between the aerodromes and Kingston Wharves as stated in the article “CHINESE WANT KINGSTON WHARVES” published Monday, March 08, 2010 by Paul Henry Observer staff reporter, The Jamaica Observer.

Chinese broadcasters present in the delegation from China Radio International and China Central Television were also in the island interested in going into broadcasting under the invitation of Senator Daryl Vaz, Minister of Information.

Much to the annoyance and alarm of the ill-prepared MAJ (Media Association of Jamaica) as stated in the article “Chinese media proposal troubles local interest group”, published: Tuesday April 6, 2010, The Daily Gleaner, all of which is of course in my blog article entitled “Chinese in Broadcasting  - The Beginning of massive investment in Jamaica to reach the USA.

Thus it is a matter of faith that the Government of Jamaica places in the hands of the Private Sector, both Local and FDI (Foreign Direct Investor) to take advantage of the opportunities presented to them and spur economic growth by partnering with local Universities to do research and Development in Green or Alternative Energy to create innovation here locally

Instead of waiting on the traditional Developed world as the People’s Republic of China is way ahead, cause for concern for those interested in making money from the Energy Sector.

All this needs to be achieved, preferably before the coming of Peak Oil in 2015, as time is now of the essence, as the sands of time have now been set for us, as 2015 is only five (5) years away. 

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