Nathaniel Payne's blogshttp://www.justmeans.com/editorials/sustainable-finance-and-responsible-investment/241.htmlFri, 25 May 2012 00:39:19 GMThttp://www.justmeans.com en hourly 1http://www.justmeans.com/American-Apparel-Founder-Dov-Charney-Faces--250-Million-Sexual-Assault-Lawsuit/46707.htmlWed, 09 Mar 2011 02:13:51 GMTNathaniel Payne Sexual voyeur? Eccentric entrepreneur? Predator? Criminal? While the adjectives might seem difficult to swallow, many of those terms are being used to describe American Apparel founder Dov Charney. According to papers filed earlier today, Mr. Charney has been slapped with a $250 million civil lawsuit for allegedly turning a teenage employee into his sex slave. According to the lawsuit, Mr Charney demanded the woman come to his New York City apartment the day she turned 18, answered the door in h Read Full Article ]]> Sexual voyeur? Eccentric entrepreneur? Predator? Criminal? While the adjectives might seem difficult to swallow, many of those terms are being used to describe American Apparel founder Dov Charney. According to papers filed earlier today, Mr. Charney has been slapped with a $250 million civil lawsuit for allegedly turning a teenage employee into his sex slave. According to the lawsuit, Mr Charney demanded the woman come to his New York City apartment the day she turned 18, answered the door in his underwear, dragged her inside and forced her to her knees so she could pleasure him. He is then accused of "holding her prisoner" in the apartment for several hours during which time he forced her to perform additional sexual acts, according to the lawsuit filed in Brooklyn Supreme Court. According to court documents, Mr Charney allegedly began harassing the woman in August 2007 when she was 17, telling her that she would be fired if she did not detail her sexual history, engage in "increasingly explicit" sexual functions and send him sexually explicit pictures. Court documents reveal that the pressure of Mr Charney's demands caused her to become "increasingly nervous and depressed", forcing a hospital stay after an "emotional breakdown", the suit alleged. He forced her to work longer hours and perform personal tasks without extra pay leading up to the alleged attack on the day she turned 18. Afterward, he continued to demand sexual service and communications in exchange for her continued employment at American Apparel, the suit said.While a lawyer for Mr Charney did not immediately respond to media requests, it is important to recognize that this is not the first time that the eccentric millionaire has been accused of sexually questionable human resource practices. In 2005 for example, Charney was targeted by two female employees in sexual harassment suits who accused Charney of exposing himself to them. One claims he invited her to masturbate with him and that he ran business meetings at his Los Angeles home wearing close to nothing. Another says he asked her to hire young women with whom he could have sex, Asians preferred. All describe him using foul language in their presence, much of it demeaning to women. According to one of the accusers attorneys, "the work environment at American Apparel makes Animal House look like choir practice." These lawsuits followed even more bizarre behavior reported earlier that year following Mr. Charney's interview for the women's magazine Jane. According to reports, Charney was described as engaging in oral sex with a female employee and masturbating in front of the reporter. While the behavior was deemed shocking, what was even more surprising was the fact that Mr. Charney did not deny taking part in any of the activities described. According to the American Apparel leader, Charney says that he befriended the writer over the course of the two months it took her to research the piece. When questioned, he reminded inquirers that he has "never done anything sexual that wasn't consensual." The reporter, Claudine Ko, confirmed his take on events to BusinessWeek.While sexual lawsuits seem to be synonymous with the American Apparel brand and its leaders, Charney and American Apparel have also faced numerous recent controversies, the least of which revolves around the company's inability to generate sustained revenue. Moreover, late last year, government investigators found that 1,800 of American Apparel's employees are either illegally working in the U.S. or potentially illegal workers. Those employees comprised about one-third of the clothier's Los Angeles manufacturing operation. The disclosure came as a result of an investigation by U.S. Immigration and Customs Enforcement. Of the 1,800 workers identified, 1,600 were deemed to be unauthorized to work in the United States. Immigration was unable to verify the status of the remaining 200.Nathaniel Payne is a researcher and teaching assistant from Simon Fraser University's Beedie School of Business. He is also an instructor in the School of Business at The British Columbia Institute of Technology (BCIT).]]>http://www.justmeans.com/The-Brain-Train--Merck-Partners-With-CDRD-To-Launch-Exciting-Post-Doctoral-Fellowship-Program/46605.htmlTue, 08 Mar 2011 18:05:38 GMTNathaniel Payne In the controversial world of pharmaceuticals, drug giant Merckhas shown an ability to sustainably manage both risk and reward. What's interesting, is that while one might expect an industry leader like Merck to stand still as the global economy restabilizes, Merck's behavior over the last year has been decidedly different. In fact, just this past week, Merck has announced a number of new exciting initiatives in both the education and research arena; initiatives,that will help improve the compan Read Full Article ]]> In the controversial world of pharmaceuticals, drug giant Merckhas shown an ability to sustainably manage both risk and reward. What's interesting, is that while one might expect an industry leader like Merck to stand still as the global economy restabilizes, Merck's behavior over the last year has been decidedly different. In fact, just this past week, Merck has announced a number of new exciting initiatives in both the education and research arena; initiatives,that will help improve the company's competitive positioningwhile positively impacting the company's brand and brand perception.Earlier this week, the Canadian Centre for Drug Research and Development (CDRD) announced that they have created a new, jointly sponsored Post-Doctoral Fellowship position to complement their already budding Post Doctoral Fellowship research program. This position will expand the CDRD's portfolio, and will be sponsoredby both the Michael Smith Foundation for Health Research and Merck Canada. According to the CDRD's Senior Vice President, Business & Strategic Affairs, Karimah Es Sabar, "A key element of CDRD's mandate is to provide the next generation of highly qualified drug development personnel, and CDRD's training program in drug development is truly unique - combining the best elements of industrial and academic based settings. This post-doctoral candidate will be a key member of our research teams and will gain a broad range of experience from many innovative projects and the mentorship provided at CDRD."CDRD's Postdoctoral Fellowship Program offersearly-career scientists the opportunity to contribute to and learn from the expertise of the CDRD staff. CDRD's Post Doctoral Fellows work closely with the Heads at their site or CDRD, conducting experiments, leading data management and generating reports, and helping them build a commercially attractive project package. In a recent press release, Dr. John Challis, President & CEO at the Michael Smith Foundation for Health Research, noted that "As a long-time supporter of early-career scientists, we are pleased to partner on this unique opportunity for post-doctoral fellows. Advancing the experience and knowledge in this field is critical to our ongoing growth in Canadian health research." Additionally, Patricia Massetti, Vice-President, Public Affairs and Patient Access, echoed these statements, noting that "Merck is pleased to partner with CDRD and the Michael Smith Foundation for Health Research for the advancement of scientific knowledge by sponsoring this post-doctoral fellowship program. This initiative is an example of Merck's ongoing commitment to health research and innovation in British Columbia and Canada."While this announcement has continued to strengthened Merck's reputation as an international supporter of research and education, Merck has also remained active in the mergers, diverstures, and acquisitions arena. In fact, on February 28, 2011, Fujifilm announced that it had reached an agreement with Merck & Co. under whichFujifilm will acquire the Merck BioManufacturing Network, a contract biopharmaceutical manufacturing and development business of Merck that provides contract-manufacturing services for recombinant proteins, vaccines, and monoclonal antibodies.Under the agreement, Fujifilm will purchase all of the equity interests in two Merck subsidiaries, Diosynth RTP and MSD Biologics (UK). Together, these two entities own all assets of the Merck BioManufacturing Network. The network consists of facilities of Diosynth in Research Triangle Park, North Carolina, and MSD Biologics (UK) in Billingham, United Kingdom, as well as the related manufacturing contracts, business-support operations, and workforce. As part of the agreement, Merck will continue to support development and manufacturing activities with these two companies. According to a recent press release by Shigetaka Komori, president and CEO of Fujifilm, Mr. Komori noted that "This acquisition provides an important addition to our pharmaceutical business with diverse capabilities and technical expertise in production of protein therapeutics."While initial reactions were mixed, a review of the transaction reveals that both parties are poised to reap significant benefits once the sale is approved. Over the last 5 years, Merck has built its contract biopharmaceutical business primarily through acquisitions. In late 2009, Merck acquired the Billingham site from the contract-manufacturing organization Avecia. Diosynth was part of Akzo Nobel, and in 2007, Schering-Plough acquired the human and animal-health business of Akzo Nobel. Merck acquired Schering-Plough in 2009. Following these acquisitions, Merck/MSD combined its biopharmaceutical manufacturing services businesses in the United States and U.K. into the Merck BioManufacturing Network, establishing what has arguably become one of the world's leading biopharmaceutical contract manufacturing organizations.In reviewing the proposed transaction details, Merck stands to receive compensation that will both significantly improve its liquidity while also accelerating development amonst its other product lines. Moreover, following the transaction, Merck/MSD will become a key Fujifilm customer that will continue to benefit from the expertise and experience of the combined businesses in biologics development and manufacturing. Finally, while Fujifilm will gain a successful revenue producing entity, Merck stands to further eliminate prevailing duplication within its manufacturing operations, while also improving its overall corporate liquidity.Nathaniel Payne is a researcher and teaching assistant from Simon Fraser University's Beedie School of Business. He is also an instructor in the School of Business at The British Columbia Institute of Technology (BCIT).]]>http://www.justmeans.com/Battle-In-Wisconsin--Protesters-Locked-In-Defiant-Capital/46056.htmlMon, 28 Feb 2011 03:37:30 GMTNathaniel Payne For the last two weeks, within the dense halls of Wisconsin's Capitol building, a battle has been raging. While originally stirred after Republican Governor Scott Walker introduced a controversial budget bill, the conflict has evolved into a state suffocating brawl; one, that has pitted public sector employees and their union supporters against Republican politicians. Two weeks ago, in a bold maneuver designed to prevent the labor bill from passing, union workers and lay citizens seized the Wisc Read Full Article ]]> For the last two weeks, within the dense halls of Wisconsin's Capitol building, a battle has been raging. While originally stirred after Republican Governor Scott Walker introduced a controversial budget bill, the conflict has evolved into a state suffocating brawl; one, that has pitted public sector employees and their union supporters against Republican politicians. Two weeks ago, in a bold maneuver designed to prevent the labor bill from passing, union workers and lay citizens seized the Wisconsin Capitol building, and Democratic senators fled the state. Early this morning, protesters were given until 4pm to leave the capital buildings, after which time police were to be called in to remove remaining protesters by force. Despite calls for calm, as the day rolled on, the probability of conflict escalated. As one labor union leader noted, "We have the right to be here. This is the people's house. This is a house of labor. This is a house that Wisconsin built!" Yet in a somewhat anti-climactic manner, 4pm came and passed with little activity. Shortly after 4pm, a temporary impasse was reached, with the authorities notifying protesters that they could remain in the Capitol buildings until tomorrow. So what's next? Well for one, while both sides rest, the quiet night has given many the opportunity to stop and wrestle with the important questions raised by this pivotal political and economic stalemate. Are the proposed changes to union bargaining rights necessary - as the governor has argued - to stop an over-zealous union who has been accused of using its strength to bludgeon required fiscal reform initiatives? Is the legislation proposed by governor Walker a genuine attack on individual rights and personal freedoms; one, which may be indicative of changes to labor bargaining power which may emerge in other states facing budgetary reform? And finally, what compromises, if any, must be made to bring this prickly issue to a quick and productive conclusion?When one surveys the crisis, one thing that continues to stand out is the diversity and strength of opinions held by the various actors. Tonight for example, despite defiant challenges from opposition Democratic leaders and union spokespeople, Wisconsin's Governor Scott Walker remained assertive, arguing that the proposed legislation contained the right tools necessary for long term fiscal reform and sustainability within the state. In an interview with NBC, the governor argued that "Wisconsin is broke, and unions consistently use their power to block necessary cost-saving measures. It's about time somebody stood up and told the truth in this state, and said, 'Here's our problem, here's the solution,' and acted on it. Because if we don't, we fail to make a commitment to the future."While some were sympathetic, others continued to struggle with this position, arguing that the accusations surrounding union blockages were over-stated. In fact, as AFL-CIO President Richard Trumka argued later, "This isn't about the budget crisis." Rather, as he suggested, these protests are in response to a fundamental assault on collective bargaining rights that are vitally important for the long term productivity of the state and the nation. As Trumka clarified, "Protesters are fundamentally upset with Wisconsin Governor Scott Walker's attack on collective bargaining rights. Governors that are willing to sit down and work with their employees can work out problems. We can solve them. But that's not what Governor Walker is doing. He says, 'I won't talk to you.' " This strong tone follows similar perspectives expressed by many other union leaders who agree that the governor is using financial arguments as a deceit. In fact, as Randi Weingarten noted in an interview with the American Federation of Teachers, "Workers have already said publicly that they would take the cuts to take-home pay that he has asked for here. So this is a ruse to shift power to his friends, because at the same time what he said was that he wanted to give tax breaks to the friends who put him into power." So who is correct?For starters, it is hard to argue that the proposed legislation does not attack the right of workers to collectively bargain. In fact, after reading the Republican bill passed by the Wisconsin Assembly, it is clear that passing of this bill would see the bulk of state workers collective-bargaining rights reduced. As one CNN analyst noted, "Among other things, the measure would require workers -- with the exception of police and firefighters -- to cover more of their health care premiums and pension contributions. Collective bargaining would be limited to wages, though any pay increases beyond the inflation rate would be subject to voter approval." On the other hand, a close examination of the state's public financial records reveals that Wisconsin faced a budget shortfall that requires decisive, coordinated action. Unfortunately, while many residents of the state admit that fiscal revisions are necessary - and are willing to support these changes - the strong rhetoric coming out of many coffee shops, towns, and cities across Wisconsin hint at the fact that many Wisconsin citizens do not believe that Governor Walker's plan will change the fate of Wisconsin for the better. In fact, many seem willing to wait for a better outcome. Both citizens and political critics have openly criticized Governor Walker as being an idealist who is secretly looking to end the collective bargaining power of employees. These criticisms have prevented the governor from having constructive debate regarding the financial future of the state. Furthermore, many others disagree fundamentally with the argument that reductions in the ability to bargain will lead to increases in fiscal productivity. As one individual noted, that message "is ridiculous because collective bargaining is the way to increase quality, not reduce it."With such diametrically opposed opinions, the challenge of predicting how, and when the conflict might be resolved, remains difficult. In fact, as tensions rise and time passes, it is reasonable to believe that a major conflict between the two sides is likely to erupt before the end comes near. With both sides unwilling to bend, the biggest question centers around timing. For now, the best thing that supporters can do is hunker down and wait while the Republican state leadership decides which hand to play next. One can only hope that, for the sake of the state, the people, its businesses, and its children, when those cards are played, the results will help bridge, rather than widen, the economic and political divisions emerging within Wisconsin.Nathaniel Payne is a researcher and teaching assistant at Simon Fraser University's Beedie School of Business. He is also an instructor in the School of Business at The British Columbia Institute of Technology (BCIT).]]>http://www.justmeans.com/Volvo-Launches-Aggressive-Chinese-Expansion/38426.htmlThu, 25 Nov 2010 01:17:13 GMTNathaniel Payne This morning, Swedish construction equipment manufacturer Volvo announced that it will invest more than $100 million in the expansion of products and production capacity in emerging markets. As the company's president Olof Persson explained, most of the investment will be channeled toward new and developing projects in China. During the press briefing, Volvo's president noted that, "Volvo is committed to supporting our capacity and product offerings in China and throughout Asia. We will achieve Read Full Article ]]> This morning, Swedish construction equipment manufacturer Volvo announced that it will invest more than $100 million in the expansion of products and production capacity in emerging markets. As the company's president Olof Persson explained, most of the investment will be channeled toward new and developing projects in China. During the press briefing, Volvo's president noted that, "Volvo is committed to supporting our capacity and product offerings in China and throughout Asia. We will achieve this by a comprehensive program of investments in our Asian industrial operations, a strengthening of our dealer network, and an expansion of our products that are more closely tailored to the specific needs of customers in this region." The announcements were made following Volvo's presentation at Bauma China, the biennial Asian construction equipment exhibition held in Shanghai. According to the initial press release, Volvo plans to set up a $30 million Volvo Technology Center in Jinan, Shandong province, while also investing $50 million into expanding its joint venture production facilities in Linyi, Shandong province. Construction of new facilities and equipment is expected to be completed by the end of 2012. In total, this new investment adds to the already $30 million that Volvo has invested in its Shanghai Volvo excavator manufacturing facility. Moreover, while the proposed investment is certain to improve Volvo's performance within China, it is important to recognize that Volvo has already achieved significant success within the Chinese marketplace. Recent financial reports indicate that Volvo's business in Asia has doubled since the beginning of 2010, with China being a economic driver. In particular, Volvo's excavator business, which builds and designs heavy equipment for large mining enterprises, has increased by more than 135 percent this year. Overall, it is important that investors and economic stakeholders continue to recognize the growth potential that emerging markets - including China - contain. Across the world, demand for reliable competitively priced equipment that supports excavating, construction, and infrastructure development continues to remain high. In fact, in late 2008, the Chinese government announced its intent to investment nearly US$602 billion in China's domestic economy, with 83 percent going to infrastructure construction. Since the money initially started flowing, booming demand has led to a boost in the production of construction equipment in China, with more than 234,000 units produced in 2010 alone (a figure that accounts for more than half of the world's total). With persistent short and long term market potential, as well as predictions that Chinese public infrastructure spending will grow by nearly 160 percent in the next five years (from the current 2.6 trillion yuan a year to 6.7 trillion yuan in 2015), Volvo appears to be well positioned. Moreover, while the new investment will primarily support Volvo's commercial units, Volvo's commitment to support the local premium customer segment with Volvo branded products promises to boost the company's performance and market value. On the whole, Volvo appears well positioned to capitalize on market growth and and around China. Volvo's dual brand approach offers a unique advantage which will enable them to meet the needs of a much wider customer base than competitors. Additionally, it is arguable that short term market share gains will be maintainable, particularly because Volvo is customizing many of its products specifically for Asian consumers - using local Chinese knowledge which enhances consumer buy-in while also leveraging an expanded Asian manufacturing footprint.]]>http://www.justmeans.com/New-International-Wind-Farm-Projects-Attract-Significant-Investment/37437.htmlWed, 24 Nov 2010 00:49:03 GMTNathaniel Payne Despite continued global economic uncertainty - uncertainty which is reducing the volume and frequency of announced investment in renewable energy projects - investment in wind farms and wind energy generation projects has remained surprisingly stable. To illustrate the investment potential that wind power markets hold, I have highlighted 3 major international wind power projects which have recently been announced. Individually and collectively, these projects not only illuminate the fact that n Read Full Article ]]> Despite continued global economic uncertainty - uncertainty which is reducing the volume and frequency of announced investment in renewable energy projects - investment in wind farms and wind energy generation projects has remained surprisingly stable. To illustrate the investment potential that wind power markets hold, I have highlighted 3 major international wind power projects which have recently been announced. Individually and collectively, these projects not only illuminate the fact that new renewable energy projects abound, but also showcase the renewable energy sector's short and long term economic and investment potential.China: Construction Of Two Major Wind Farms Is Expected To Start By The End Of 2010Last week, following the Chinese government's announcement that PetroChina will be forging an aggressive partnership with Royal Dutch Shell, the Chinese government announced that it intends to commence construction on two major Chinese wind power farms within the next month. The wind farms, which will be financed using private and public lenders, will be located in the valleys of the Yunnan-Guizhou Plateau, specifically Xiliangshan and Mabaidashan. Construction is expected to begin after a final environmental feasibility research review is completed. Upon completion, the two wind farms will have an installed capacity of approximately 49.5MW, and are expected to come online in early 2011. Overall, while the scope of the project is small, it is important to recognize that wind power projects continue to attract major investment within China. In fact, China is currently the world's largest wind power producer. Cumulatively, the Chinese wind power market segment is estimated to be worth more than US$13 billion. In 2009, China more than doubled its wind power capacity to 25.1gigawatts (GW) from 12.1GW in 2008.India: Acciona Begins Construction On Its Third Indian Wind FarmEarly last week, Spanish wind power developer Acciona Energy announced that it will be building a third wind turbine farm in Karnataka state, India. The farm will contain a total of thirty four, 1,650 kW turbines. This farm, along with the new 56 MW Tuppadahalli wind farm, are expected to be operational in 2011. Together, it is estimated that the total cost to build both projects will be US$58 million. Upon completion, the energy produced from these farms will replace the nearly 167,000 tonnes of CO2 that are emitted from traditional energy generation in Karnataka. From an analytical standpoint, it is important to recognize that Indian wind power projects - particularly those being built and financed by private, international investment firms (and corporations), continue to significantly impact India's power generation mix. Just recently, the Indian government announced that by 2022, it will have more than 20,000MW of wind generating capacity. Current wind capacity in India is 10,500MW. While this number pales in comparison to China, it is important to note that wind power projects are the biggest source of renewable energy in India, currently producing nearly 80% of the total renewable energy produced within the country.Vietnam: EAB Group Announces New Vietnamese Wind Power ProjectJust recently, German wind farm developer EAB Group - in a joint venture with Vietnamese trading production company Trasesco - announced plans to jointly develop a wind power technology project in Vinh Tan and Vinh Phuoc in Soc Trang. EAB, the company overseeing construction on the project (which is expected to begin in 2011), has also expressed interest in further developing projects in the Soc Trang province; a locale that is particularly suited to wind power generation.]]>http://www.justmeans.com/Flash-Forward--A-Review-Of-5-New-Renewable-Energy-Projects/37430.htmlWed, 17 Nov 2010 02:28:08 GMTNathaniel Payne While the last 6 months have seen a reduction in the volume of investment directed toward renewable energy projects, many organizations around the globe continue to dedicate significant resources toward the development of sustainable energy. In an effort to highlight some of the major announcements that have occurred over the last 2 weeks, I have included a summary of 5 major renewable energy investment projects which deserve to be recognized. Together, the 5 projects have attracted nearly US$3. Read Full Article ]]> While the last 6 months have seen a reduction in the volume of investment directed toward renewable energy projects, many organizations around the globe continue to dedicate significant resources toward the development of sustainable energy. In an effort to highlight some of the major announcements that have occurred over the last 2 weeks, I have included a summary of 5 major renewable energy investment projects which deserve to be recognized. Together, the 5 projects have attracted nearly US$3.5 billion in sustainable investment; investment, that will ultimately change the way that people and societies around the world work, dream, and play.China: Aero Auto plans to build a US$179 million solar cell production factory in ShanghaiLast week, Chinese energy developer Shanghai Aero Auto Electromechanical announced plans to invest US$179 million in a new a solar cell production project. The Shanghai based 200MW photovoltaic project, which will be funded through its subsidiary Shenzhou New Energy Development, will enable the firm to significantly increase the value of its total photovoltaic output; output, that is currently projected to be worth nearly US$2 billion. The project will be based out of the Pujiang Hi-tech Park in Shanghai, China.South Africa: The World Bank plans to invest US $85 million in new renewable energy & co-generation projectsJust last week, the World Bank announced plans to invest US$85 million in renewable energy and co-generation projects in South Africa. The investments will come from the World Bank's Clean Technology Fund. From the US$85 million, approximately US$50 million will be used to support wind and solar renewable energy projects, while US$35 million will be invested in co-generation projects. Moreover, in addition to the US$85 million, the World Bank has allocated an additional US$65 million towards sustainable investment projects originating in South Africa. The US$65 million fund is currently being managed by the African Development Bank. Overall, despite a lack of clarity regarding the project outcomes, the announced funding should enable South Africa to diversify its electricity generation portfolio. Currently, South Africa generates approximately 88% of its electricity from coal. With amiable wind and solar conditions, the new investment should enable South Africa to add renewable energy generation capacity quickly (assuming that legislative and regulatory obstacles do not impede progress).Russia: Rusnano and Renova allocate US$93 million toward the construction of Russia's first solar power stationThis past week, Russian state nanotechnology firm Rusnano and energy conglomerate Renova announced plans to collaborate on the construction of Russia's first solar power plant. The plant, which will be built in the town of Kislovodsk (which is located on the Black Sea by Khevel), will be a 50/50 joint venture between the two companies. Initial announcements indicate that the plant will have a 12.3MW capacity. The plant is expected to be complete by 2012. As a first for its country, the new project is extremely important. Currently, Russia is completely dependent on gas, coal, and nuclear energy. While the Russian government has previously discussed expanding investment in renewable energy, this concrete announcement may open the door to future wind and solar based renewable energy projects.India: Areva plans to invest US$3 billion in new Indian solar energy projectsEarly last week, French energy giant Areva announced plans to invest US$3 billion in new Indian solar energy projects. Currently, Areva produces approximately 60 megawatts (MW) of energy from biomass-fuel stations based around India. In total, Areva leadership hopes that the new investment will enable the company to produce up to 1000MW of thermal energy extra using solar energy. While some were surprised by the announcement, India's potential as a future global renewable energy leader should not be over looked. In fact, according to recent reports originating from the International Energy Agency (IEA), India has the potential to generate a significant portion of the world's global solar power capacity by 2020. In total, analysts expect that, once the new projects are operational, Indian solar projects could produce nearly 27 gigawatts (GW) of energy by 2020.United States: Campbell Soup Company invests $21.6 million in a new solar energy factoryEarlier this month, US soup manufacturer Campbell announced that it will be developing a new solar energy power plant in Ohio. The plant will provide energy exclusively for Campbell's main production plant, and will help the company meet its aggressive environmental and sustainability goals. According to industry reports, the solar facility is expected to cost US$21.6 million. The Ohio Department of Development is expected to be contributing a US$10.5 million loan toward the project. Upon completion, the plant is expected to generate around 50 megawatts of power annually.]]>http://www.justmeans.com/Building-For-The-Future--Shell-And-PetroChina-Forge-An-Ambitious-New-Partnership/37162.htmlMon, 15 Nov 2010 00:52:25 GMTNathaniel Payne As the search for sustainable resource supplies intensifies, a number of companies have turned to partnerships to support their ambitious plans. One company that has recently announced the formation of new partnerships to support its long term growth is Royal Dutch Shell. Recently, Royal Dutch Shell announced that it is deepening ties with China's largest state-run oil and gas operator, PetroChina. In particular, Shell is planning on signing a memorandum of agreement and commercial partnership c Read Full Article ]]> As the search for sustainable resource supplies intensifies, a number of companies have turned to partnerships to support their ambitious plans. One company that has recently announced the formation of new partnerships to support its long term growth is Royal Dutch Shell. Recently, Royal Dutch Shell announced that it is deepening ties with China's largest state-run oil and gas operator, PetroChina. In particular, Shell is planning on signing a memorandum of agreement and commercial partnership contract with PetroChina; an agreement that will enable both entities to jointly invest in new development projects in China - as well as Canada. Interestingly, while many experts have recognized the potential that China holds as a future leader in oil and gas production, few companies have had success pursuing lasting partnerships with Chinese based organizations. While the reasons are varied, it appears that this new partnership, which is supported by inter-organizational linkages at all levels of the corporate and political spectrum, will be a significant sustainable win for Royal Dutch Shell. Currently, the International Energy Agency (IEA) forecasts that China will account for 20% of global energy use by 2035. By inking this agreement, the new relationship will ensure that Shell is positioned at the forefront of future Chinese development and growth. Moreover, while PetroChina, has previously been unenthusiastic about the pursuit of international partnerships, this new relationship will directly support the company's long term growth plans. In particularly, PetroChina stands to make significant technological gains through its relationship with Shell; gains that - over time - will help transform China's state-owned companies from cash-rich acquirers to technology-rich leaders within the global energy industry.While the agreement between Shell and PetroChina is symbolic, it is clear that both partners are anxious to act; and act quickly. Following the signing of the initial agreement in Beijing by PetroChina's Chairman Jiang Jiemin and Shell CEO Peter Voser on November 9, both parties announced their intention to quickly to co-invest in a number of key projects. In particular, initial announcements indicate that both companies will begin jointly developing the Daning coal bed methane (CBM) block in Northern China, while also making significant investments in various oil-sands project in Canada. Additionally, both Shell and PetroChina have announced plans to direct new investment towards the development of the Changbei tight gas field in Shaanxi province. This project, in which Shell holds a 50% operating stake, is now producing about 3 billion cubic metres annually. In addition to the Changbei project, Shell and PetroChina are expected to accelerate the development of the shale gas extraction project currently operating in the Jinqui and Fushun blocks in south-west China's Sichuan province.While the new agreement will significantly increase the rate and pace of investment within China, the new relationship will also increase the scope of co-operation between PetroChina and Royal Dutch Shell in non-Chinese markets. For example, effective immediately, both companies will continue co-operating on gas exploration and oil & gas export projects in Qatar and Australia. Additionally, both companies have indicated the desire to aggressively explore sustainable energy and resource projects in various locations. Overall, while the full details of the partnership agreement have not been released - and the scope of future investment in sustainable energy and resource projects has not been clearly presented - the new partnership between PetroChina and Royal Dutch Shell looks certain to pay dividends for both companies, investors, and related stakeholders. Moreover, with initial reports indicating that Shell and PetroChina are planning on spending upwards of US $60 billion on foreign acquisitions over the coming 5 years, it is reasonable to expect that both organizations will continue to exert significant influence on the global oil, gas, and energy segments.]]>http://www.justmeans.com/Brazil-Is-Poised-To-Become-The-Global-Leader-In-Sustainable-Palm-Oil-Production/37164.htmlSat, 13 Nov 2010 14:58:47 GMTNathaniel Payne Across the globe, leading producers of Palm oil - particularly those situated in Indonesian and Malaysian - continue to face growing challenges. Producers in these nations frequently struggle to meet global demand targets, while also suffering from land shortages and logistical inefficiency. Moreover, many producers in these, as well as similar nations, continue to face environmental-sustainability challenges; issues, that are systematically reducing the attractiveness of their product in variou Read Full Article ]]> Across the globe, leading producers of Palm oil - particularly those situated in Indonesian and Malaysian - continue to face growing challenges. Producers in these nations frequently struggle to meet global demand targets, while also suffering from land shortages and logistical inefficiency. Moreover, many producers in these, as well as similar nations, continue to face environmental-sustainability challenges; issues, that are systematically reducing the attractiveness of their product in various consumer categories. One growing segment that continues to challenge traditional palm oil producers is the environmentally conscious food segment. As concerns over the impact of environmentally unsustainable palm oil production increase, many traditional producers are seeing demand for certified 'green' - or environmentally sustainable - crude palm oil (CPO) rise significantly. Moreover, despite the fact that sustainable palm oil demand currently accounts for only 3% of the global market, it is expected that demand for this type of product will continue to increase significantly (double digit market share gains) over the next year.As a palm oil producing nation, Brazil (and many of its organization's operating within the agricultural sector), appear well positioned to take advantage of increased consumer demand for environmentally sustainable palm oil. In fact, Brazil already has strict laws, regulations, and enforcement plans which govern palm plantation expansion and operation. In addition to the presence of strict legislation, Brazil also has two things that most of the world's dominant palm producing nations lack - capital and vision. Just recently, the Brazilian government publicly presented a plan which identifies the sustainable palm oil industry as a significant growth area. To support the plan, the government committed US$60 million dollars toward the development of the industry. This investment will support the government's "Programme for Sustainable Production of Palm Oil (O Programa de Produo Sustentvel de leo de Palma)", with the exclusive goal of supporting only sustainable manufacturers. Additionally, the plan aims to boost oil palm cultivation in degraded land, including previously cultivated farmland used for other crops. According to the Brazilian agricultural research agency Embrapa, the estimated amount of land suitable for such cultivation is close to 30mn hectares (ha), more than twice the 13mn ha of total global area harvested for oil palm cultivation currently available. Considering the fact that Brazil only has about 700,000 ha of cultivated land currently devoted to palm oil production, significant upside from a supply perspective appears to exist.In addition to the presence of available land, Brazil's stringent rules surrounding palm oil cultivation should accelerate the pace at which Brazilian-produced palm oil will be certified as 'sustainable' by the international body Roundtable on Sustainable Palm Oil (RSPO). For example, according to Agropalma, one of Brazil's top oil crop companies, palm oil plantations certified as sustainable must to be surrounded by forests which follow a 1:4 ratio. Within Brazil, most current and proposed palm oil nurseries exist in landscapes that meet or exceed these standards (a barrier to entry that few of the other major producers can satisfy). Moreover, from a trade perspective, Brazil's proximity to major markets, including the US and Europe should also provide a significant advantage, with lower freight costs offsetting the relatively higher cost of labor required to produce sustainable Brazilian palm oil (particularly when such costs are compared with unsustainable ventures in South East Asia and Africa). Moreover, since most environmentally-conscious customers reside in the US as well as the EU, it is highly plausible that Brazil's proximity to these markets will enable them to effectively penetrate these markets, stealing share from Malaysian and Indonesian based manufacturers, while also insulating themselves as the main global producer of environmentally sustainable palm oil.]]>http://www.justmeans.com/Heartbreak-In-Haiti--Devastating-Cholera-Outbreak-Cripples-The-Nation/37158.htmlSat, 13 Nov 2010 00:28:54 GMTNathaniel Payne Haiti, a nation struggling to recover after a devastating summer, has sadly been dealt another blow. Cholera, a disease that feeds off poverty, has slowly begun spreading throughout the nation. The Cholera outbreak, which first began in Haiti's Artibonite River valley in mid-October, was initially deemed contained. Unfortunately, Hurricane Tomas, which struck earlier this month, flooded rivers believed to be contaminated with cholera and submerged refugee communities already struggling to surviv Read Full Article ]]> Haiti, a nation struggling to recover after a devastating summer, has sadly been dealt another blow. Cholera, a disease that feeds off poverty, has slowly begun spreading throughout the nation. The Cholera outbreak, which first began in Haiti's Artibonite River valley in mid-October, was initially deemed contained. Unfortunately, Hurricane Tomas, which struck earlier this month, flooded rivers believed to be contaminated with cholera and submerged refugee communities already struggling to survive. According to officials from the World Health Organization, the death toll as of yesterday was 798, with more than 12,000 people diagnosed with the sickness. Moreover, with the number of new cases growing exponentially, many experts believe that the entire nation of almost 10 million people is at risk - namely because Haiti's citizens have little immunity to the disease. In response, the United Nations has issued a global appeal for resources, asking for more than $164 million in financial aid to support its initial response plan. In a statement released this afternoon, the United Nations noted that they believe Haiti is currently facing one of the most severe Cholera outbreaks witnessed over the past 100 years. Moreover, with more than 200,000 people expected to show symptoms in the coming months - and the nation's medical system inadequately prepared to deal with basic day to day illness - Haiti faces a dire race against time.While much discussion has focused on the human costs of the outbreak, one often forgotten element is the epidemic's economic impact. For example, when one reviews the base costs of the last major Cholera epidemic, which occurred in Peru in 1992, estimates reveal that Peru lost nearly $700 million in trade and travel revenue in the months following the epidemic. Moreover businesses - from small family businesses to larger state run organizations - crumbled, increasing poverty and hardship across the nation. While Haiti does not possess the same vibrant tourism or trade sector, it is clear that the Cholera outbreak will significantly impact trade within, as well as travel to, Haiti. Additionally, while the initial $164 million requested by aid agencies will help with the aid effort, this figure pales in comparison to the total aid needed to support the containment efforts. For example, in Peru, the estimated cost of medical supplies and medicines used to stop the Cholera outbreak in March of 1992 was US $44.9 million. Factoring in the increase in drug costs, as well as the increased logistical costs, it is clear that the base drug costs will be significantly higher for Haiti. Moreover, the $164 million requested is not meant to completely cover other significant indirect costs; costs, that will increase as the epidemic spreads. These costs include the cost of physician time, hospital stays, community outreach, production and economic activity foregone by friends or relatives of patients, transportation to health care providers, moving expenses, household costs to accommodate the needs of the affected person, and vocational, social and family counseling services.While the Haitian people have showed great resilience, it is an understatement to consider the current outbreak "alarming. " To date, Haiti has received only 37.8% of the money that was pledged to it by all countries for 2010-11 following the devastating earth-quake, and has little to no financial reserves available to slow or stop the disease. Moreover, the earthquake devastated the nation's health care system; one, that has not recovered due to delays in aid. Additionally, even with aid coming into the country, many of the most high risk areas - examples being the tent cities of Port-au-Prince - will not directly benefit. Many health officials fear that infection within these slums will spread quickly, accelerated by congested and unsanitary conditions. In many cases, individuals in the slums fail to receive treatment in a timely manner; a concern magnified by the fact the disease, if left untreated, a person can die within hours. Without a doubt, it is clear that this Cholera epidemic is set to unleash a wave of destruction that may dwarf anything we have seen in recent history. With fatality rates rising, and projections estimating that over 200,000 cases could be diagnosed within the next 6 months, the future does not look bright for Haiti or its resilient citizens.]]>http://www.justmeans.com/Free-Trade-Food-Fight--Is-Free-Trade-Really-Unsustainable-and-Destructive/36986.htmlThu, 11 Nov 2010 01:55:46 GMTNathaniel Payne For decades, debates surrounding the costs and benefits of free trade have raged. In both developing and developed nations, opinions remain mixed, particularly because the impact of major international trade agreements means different things to different people. On Wednesday morning, in central Tokyo, thousands of people gathered to stage a rally voicing their opposition to Japan's entry into the U.S.-backed trans-Pacific free-trade agreement. The protesters, representing nearly every layer of t Read Full Article ]]> For decades, debates surrounding the costs and benefits of free trade have raged. In both developing and developed nations, opinions remain mixed, particularly because the impact of major international trade agreements means different things to different people. On Wednesday morning, in central Tokyo, thousands of people gathered to stage a rally voicing their opposition to Japan's entry into the U.S.-backed trans-Pacific free-trade agreement. The protesters, representing nearly every layer of the Japanese social spectrum, argued vehemently that the acceptance of such a trade agreement would destroy Japan's agriculture sector. Interestingly, some protesters, many who were farmers, even argued that the government's decision to explore such an agreement was criminal. At first glance, I found myself sympathetic to the arguments posed by the protesters. Then, after consideration, I found myself questioning many of my initial emotions and reactions. Is free trade really destructive and unsustainable? Will Japan's agriculture sector really be destroyed it if chooses to enter into the proposed free trade agreement? More importantly, how should other nations approach the question of free trade, particularly when faced with forceful rhetoric from industry groups who argue that trade agreements are inherently destructive and unsustainable?In forming an educated response to the question of free trade's sustainability, the most logical starting point seems to be an analysis of Japan's agricultural environment (one that faces challenges similar to many other nations around the world). As a nation, Japan has a fairly modernized agricultural sector which produces fairly high yields. Its agricultural sector is generally self-sufficient, at least in its ability to produce enough rice to feed its nation's citizen. Unfortunately, while the sector is presently sustainable, the industry's long term sustainability remains suspect. Currently, Japan only has approximately 4.6 million hectares of arable land available for farming. This number is low in proportion to the nation's population. Moreover, as the population increases, the shortage of land is likely to negatively impact the nation's food supply, forcing it to rely on imports to fill the agricultural supply gaps. Additionally, despite enjoying higher than average yields, Japanese agriculture is extremely reliant on governmental support. This support, in the form of internal payments (as well as high import tariffs which insulate the industry) maintains the solvency of many businesses - particularly unproductive ones. Additionally, while the overall average productivity per farm is high, many farms, particularly those outside of the northern island of Hokkaido, are small an inefficient. This is a major problem. When one takes into account the disparity in overall output efficiency, along with the fact that nearly 60% of Japan's agricultural workers are over 65 (with little interest in farming among the younger generations), it is hard not to be concerned. No matter how you slice it, decreasing and uncertain supply, coupled with increased demand, create a problematic resource equation.Accepting this, we can now return to the question posed by many of the protesters: Is agricultural free trade destructive and unstable, particularly when a nation's entrance into such trade agreements is motivated by a resource supply shortage? Or, is entrance into such an agreement a viable solution that will address Japan's unsettling agriculture crisis? While the final answer to the question is complex, a high level overview of the facts makes it hard to accept the arguments posed by the protesters. As a researcher and perpetual student of developmental economics, I do not disagree that free trade will increase the pressure that many of Japan's smaller, less efficient farms will face (pressure that may lead to bankruptcy and personal distress). Unfortunately, a prolonged focus on this ignores the fundamental fact that, by not exploring imports and free trade, Japan may not be able to provide its citizens with enough food (in both the short and long term). When such a deficit arises, where will the supply come from? Moreover, if one refuses outright to consider increasing supply, and believes that Japan (like many other nations) must retool its consumption patterns to conform to the new reality, is it truly realistic to expect that Japan's citizen's will change their consumption habits if domestic food supply wains?Overall, while I am sympathetic to the fact that the proposed free trade environment may impose hardship on some businesses and families, I refuse to blame free trade outright for such hardship. On the contrary, I believe that the pain and duress that many of Japan's unproductive businesses might face once imports begin is entirely self created - one that is amplified by Japanese government's decision to commit significant dollars to support an industry which is highly unsustainable. Accepting this, I believe that international free trade which undermines the solvency of the unproductive farms would help - rather than hurt - Japan's economy. Japan, like many developed and developing nations, needs food. Unfortunately, if consumption habits (demand) will not change, then supply must. With this in mind, I believe that we should focus our blame on the consumption patterns that have created the need for free trade's existence, not free trade itself. Failure to address consumption and demand issues will mean that countries facing food and resource shortages will be forced to increase their reliance on international trade, particularly if individual citizens refuse to change their voracious consumption patterns. Sadly, until we collectively recognize this, and admit that consumption itself is the real culprit, "free trade" will continue to be unnecessarily ostracized and "criminalized."]]>http://www.justmeans.com/Uncertain-Future--Equity-Investment-In-Renewable-Energy-Projects-Continue-To-Slow/36451.htmlThu, 04 Nov 2010 23:54:47 GMTNathaniel Payne The fallout from the global economic contraction has touched nearly every industry segment. While many hoped that the renewable energy industry would remain unfazed, reduced equity activity, along with contractions in renewable equity markets, has blown threads of caution into the wind. One example that illustrates the plight of the renewable energy sector is the recent cancellation of First Wind's IPO. In what would have been one of the the first IPO's by a wind company in the United States, po Read Full Article ]]> The fallout from the global economic contraction has touched nearly every industry segment. While many hoped that the renewable energy industry would remain unfazed, reduced equity activity, along with contractions in renewable equity markets, has blown threads of caution into the wind. One example that illustrates the plight of the renewable energy sector is the recent cancellation of First Wind's IPO. In what would have been one of the the first IPO's by a wind company in the United States, power developer First Wind recently announced that it is withdrawing its Nasdaq listing and will be exploring other options. Market conditions were cited as the causal agent, despite the fact that the company reduced the price of the IPO 25% from US$24-26 per share to US$16-18 per share. As the company noted, many investors continue to remain skeptical of the wind industry's competitiveness, particularly when its costs are compared to other fuel sources. Moreover, First Wind's s unproven technology, heavy debt load (US$582 million as at September 30, 2010) and negative cash flow, arguably contributed to dampen investor interest.While First Wind's failure is not unique, its inability to attract capital highlights how prevalent instability within the renewable energy industry has become. According to the American Wind Energy Association (AWEA), the third quarter of 2010 represented the slowest quarter in three years for the wind industry. In fact, the United States wind industry added just 395 megawatts (MW) of generating capacity in Q3, a figure which is down by over 72% compared to prior years. What is also shocking is how quickly investor behavior changed. A recent report from the US Energy Information Administration (EIA) showed that while wind accounted for 39% of new installed capacity last year (versus just 13% from coal), in the first nine months of this year, wind accounted for just 14% (while coal contributed 39%).While the credit crunch is partly responsible for the equity slowdown, another critical factor influencing the performance within the renewable sector is a lack of legislative support. Based on the discrepancy between pricing of renewable energy versus conventional sources, it is quite clear that legislative support for clean energy is needed to ensure that the renewable energy sector remains viable and attractive. Unfortunately, many politicians continue to drag their feet. While motivations vary, some politicians in the United States appear hesitant to support clean energy, particularly because of the relatively cheap natural gas prices (which are expected to continue over the coming years). Additionally, with citizens demanding that government's tighten their coffers, investment in higher priced energy projects seems hardly justified (even is those sources would ultimately produce energy in a more environmentally unfriendly way). The same kind of behavior is also being observed in Europe, where legislation alterations aligned with the recent austerity measures continue to threaten future renewable energy investment. With these factors in mind, as well as the recent struggles of a number of other major renewable projects, it is clear that the wind sector's (and quite possible the entire renewable energy industry's), short term equity outlook remains weak.]]>http://www.justmeans.com/Can-Investment-In-Renewable-Energy-Break-Mexico-s-Conventional-Energy-Reliance/35264.htmlFri, 22 Oct 2010 00:29:27 GMTNathaniel Payne As a nation, Mexico is toiling in a state of constant change. Apart from the well publicized political and criminal problems, the country is expected to see its population increase from 108.5 million to 112.2 million over the next 4 years. Additionally, analysts expect GDP per capita to increase by 48%. While the population growth will increase strains on the country's resources, many continue to worry about Mexico's current - and future - energy needs. With the Mexican government's continued fo Read Full Article ]]> As a nation, Mexico is toiling in a state of constant change. Apart from the well publicized political and criminal problems, the country is expected to see its population increase from 108.5 million to 112.2 million over the next 4 years. Additionally, analysts expect GDP per capita to increase by 48%. While the population growth will increase strains on the country's resources, many continue to worry about Mexico's current - and future - energy needs. With the Mexican government's continued focus on economic development, electricity consumption per capita is expected to increase by 8% over the next 4 years. Additionally, Mexico's residential power consumption is expected to increase significantly (from an estimated 199TWh in 2010 to 222TWh by the end of 2014). This increase, along with the continued development of Mexico's business sectors, has brought Mexico to an impasse. Mexico needs energy, and to meet this need, it is going to have to invest, and invest quickly. Current forecasts indicate that Mexico will need to invest over US$51 billion over the next decade to meet the projected demand, a figure that could rise as the country develops. As foreign businesses continue to salivate, many continue to wonder what the increased energy demand will mean for renewable energy projects.In the search for answers, the first place one needs to look at is the recent history of renewable energy investment in Mexico. In January 2009, President Felipe Caldern inaugurated the first phase of the Eurus Wind Park. The wind park, which will be the largest in Latin America (and one of the biggest in the world), has a capacity of 250MW through 167 wind turbines. Construction of the wind farm, which cost US$550 million, has been carried out by Spain's Acciona Energy. To date, Acciona has secured US$375 million in funding to develop the Eurus Wind Park. Once completed, production will cover up to 25% of the electricity requirements of the Cemex cement plants in the country. In addition to this, the European Investment Bank confirmed this past May that it has lent US$99.44 million to Iberdrola to finance the construction of an additional wind farm in the south-west of Mexico. The loan will be used to build and commission the wind farm in Santo Domingo Ingenio in Oaxaca. The wind farm will have 121 turbines and an installed capacity of 103MW. The loan will also be used to build access roads and interconnection with the high-voltage network.While the projects above are promising, the critical problem that renewable energy continues to face is scale and efficiency. Currently, renewable energy sources in Mexico produce only 3.3% of the country's energy needs (a number that could potentially increase to 7.0% by 2014). Unfortunately, while significant investment is planned in the wind sector, the inability of renewable energy to contribute substantially to the power grid may put future renewable energy investment at risk. Recently, the Mexican government announced that they were strongly considering nuclear energy as main investment priority (one that may supersede renewable investment), despite the fact that this technology also carries significant construction costs and risk. Moreover, while nuclear energy is an option, many within the government continue to find it hard to overlook the cost efficiency of conventional energy, even if that investment may increase the country's environmental and health challenges. Overall, I believe that in the short term, despite the environmental benefits that renewable energy offers, conventional thermal sources including oil and gas will continue to dominate electricity generation and investment. Businesses and home consumers within Mexico do not appear to have the patience to wait for renewable energy production to meet demand, and it is unlikely that the Mexican government will also exude the required patience.]]>http://www.justmeans.com/African-Sunrise--Morocco-s-Solar-Power-Sector-Continues-To-Heat-Up/34386.htmlThu, 21 Oct 2010 01:03:02 GMTNathaniel Payne Early last week, the Moroccan Agency for Solar Energy (MASEN) announced that 50 bids were submitted for new solar projects. The bids came from a host of European based companies including Italy's Enel SpA, Spain's Abengoa SA and Actividades de Construccion y Servicios SA (ACS), as well as Germany's Solar Millennium AG and Siemens AG. While discussions surrounding Morocco's energy sector have historically received marginal press, the significant investment occurring within Morocco should not come Read Full Article ]]> Early last week, the Moroccan Agency for Solar Energy (MASEN) announced that 50 bids were submitted for new solar projects. The bids came from a host of European based companies including Italy's Enel SpA, Spain's Abengoa SA and Actividades de Construccion y Servicios SA (ACS), as well as Germany's Solar Millennium AG and Siemens AG. While discussions surrounding Morocco's energy sector have historically received marginal press, the significant investment occurring within Morocco should not come as a surprise. Currently, Morocco receives over 3,000 hours of intense sunshine annually. To take advantage of this abundant resource, the Moroccan government is planning to invest over US $9 billion in solar technology, making the country one of the most attractive renewable energy investment destinations in Africa. Specifically, Morocco is planning on creating 5 solar massive fields (and generating plants) that will be located in the Ouarzazate, Ain Bni Mathar, Foum Al Oued, Boujdour and Sebkhat Tah regions. Collectively, the African nation is counting on significant foreign investment to support this development; investment, that will ideally help the Moroccan government achieve its plan of generating at least 2,000MW of solar energy by 2020.While many within the renewable energy sector continue to cheer, what appears unclear - at least on the surface - is the Moroccan government's motivation to undertake such an aggressive investment. Specifically, on a continent that has significant international investment in non-sustainable energy resources, why isn't Morocco look toward more conventional energy sources including oil and gas? Unbeknown to most, Morocco is the only North African country that does not have indigenous energy resources located within border. Currently, Morocco imports 97% of its energy. This importation costs the country the equivalent of approximately 10% of its annual GDP. Moreover, this reliance continues to put pressure on the country's trade balance, while also negatively impacting public finances. Similarly, with demand for energy growing between 5% and 8% annually, Morocco has been forced to find sustainable renewable energy options in order to keep its finances stable. While geopolitical concerns exist, Morocco looks to have a bright, bright future. In fact, if Morocco can remain committed to its goals, the country stands to become one of the leading generator of renewable energy in North Africa. Overall, I believe that the next 12 - 24 months will see an increase in both the rate and amount of international investment within Morocco's renewable energy sector. In fact, judging from the initial bid responses, it is clear that many international companies are already aligning their resources to take advantage of this investment, particularly because Morocco holds tremendous potential as an energy exporting region - particularly to European nations.]]>http://www.justmeans.com/Auto-Evolution--Google-Creates-A-Car-That-Drives-Itself/34393.htmlWed, 20 Oct 2010 02:03:25 GMTNathaniel Payne Over the last few months, an electronic brain created by United States internet giant Google has autonomously driven cars nearly a quarter of a million kilometers around California. The cars, as well as the related software, are the brainchild of Sebastian Thrun, a prominent researcher who is currently the director of Stanford's Artificial Intelligence Laboratory. Thrun also works as a Google engineer, and was responsible for leading the team who designed the Stanley robot car and won a two-mill Read Full Article ]]> Over the last few months, an electronic brain created by United States internet giant Google has autonomously driven cars nearly a quarter of a million kilometers around California. The cars, as well as the related software, are the brainchild of Sebastian Thrun, a prominent researcher who is currently the director of Stanford's Artificial Intelligence Laboratory. Thrun also works as a Google engineer, and was responsible for leading the team who designed the Stanley robot car and won a two-million-dollar Pentagon prize. While Google's new artificial intelligence tools continue to revolutionize the automobile industry, Google's GPS satellite navigation technology was nearly fooled by a humble cyclist who jumped a red light. Thankfully, the car's human passenger - an on-board Google engineer - slammed the emergency button to disconnect the system. While the potential accident raised eyebrows, it is important to note that this intervention was one of only two that have been made by the human driver in over 140,000 miles (225,300 kilometres) of road tests.While Google's new technology is fascinating, the introduction of Google's autonomous vehicles continues to pose a number of interesting legal questions. The most relevant, concerns questions regarding how quickly current law will adapt to keep pace with the ever increasing technology innovation. Under current law, a human must be in control of a car at all times. Unfortunately, Google's vehicles, which are driven by artificial intelligent engines and occupied by human passengers, do not meet this standard. While the lag between technological reality and legality must be closed, Thrun believes that the introduction of the automated car - despite the narrowly averted pedestrian collision - will significantly save lives - reducing the number of accidents caused by human error. In fact, in a recent statement, the legendary engineer noted that "more than 1.2 million lives are lost every year in road traffic accidents. We believe our technology has the potential to cut that number, perhaps by as much as half." What is also interesting, is that car's intelligent engine can be programmed for different driving personalities -- from cautious mode, in which it is more likely to yield to another car, to aggressive, in which it is more likely to go first. And, to ensure safety, the passenger in the car can easily regain control using one of three methods: hit a red button near his right hand, touch the brake or turn the steering wheel, the paper said. Overall, Google's leadership remain optimistic and committed to the project. Google's goal is to build technologies within the auto and transportation sector that help prevent traffic accidents, free up people's time and reduce carbon emissions by fundamentally changing automobile use. As the last half a million kilometers have shown, Google's new technology appears well on its way to accomplishing that goal.]]>http://www.justmeans.com/Gap-s-Logo-Debacle--Clothing-Retailer-Cancels-Transition-To-New-Contemporary-Logo/35044.htmlTue, 19 Oct 2010 05:26:29 GMTNathaniel Payne In case you missed it, Gap - the clothing retailer - recently replaced its iconic blue logo with a more contemporary emblem that set the Gap name in bold Helvetica against a white canvas. A small blue square was placed in the upper-right corner. While hopes were high, online reaction was negative. Consumer's on all social networks slammed the logo, calling the offering sloppy and unattractive. Collectively, these consumers created an outcry so intense that Gap decided to scrap the redesign altog Read Full Article ]]> In case you missed it, Gap - the clothing retailer - recently replaced its iconic blue logo with a more contemporary emblem that set the Gap name in bold Helvetica against a white canvas. A small blue square was placed in the upper-right corner. While hopes were high, online reaction was negative. Consumer's on all social networks slammed the logo, calling the offering sloppy and unattractive. Collectively, these consumers created an outcry so intense that Gap decided to scrap the redesign altogether - just seven days after its introduction. While many internet gurus continue to cite this case as a demonstrative illustration of online power, for many others, Gap's decision to renege on its new logo is being perceived as weak. In fact, a number of analysts continue to argue that allowing such a prestigious brand to be bullied sets a dangerous precedent. While reaction to these arguments continues to be mixed, the overall chain of events has raise a number of important questions. Has Gap damaged its credibility, brand strength, and reputation by walking away from the new logo? How much should short term customer feedback influence the evaluation of a new logo, trademark, or brand slogan? And how should future companies integrate public decisions into the re-branding and re-marketing process?In a statement released yesterday, Gap North America recognized that it may have missed an opportunity to engage with customers by quickly abandoning the new logo. Gap's leadership also noted that the online community's strong negative response was the primary motivation for the logo's shelving. While these responses show insight, I am unconvinced that Gap's decision to shelve the new logo is the correct one? As many researchers and intelligent consumers know, there is far more to logo design than first, second, or third responses. In fact, one could argue that as social media has increased the ease and immediacy of opinion sharing online, people's penchant for the familiar and desire to contribute regardless of a campaigns substance may skew the re-dressing processes negatively from the outset. Moreover, even if one accepts that the new logo lacked pizazz, the argument that people would simply no longer shop at the Gap if their logo was changed is illogical, and extreme. Isn't it worth having a longer discussion with consumers? As one insightful analyst noted recently, "if Twitter were around in the late 1800s and the French government listened, there wouldn't be an Eiffel Tower today. Bold ventures are almost always hated before the public becomes enamored." Furthermore, one needs to also ask the following question; if Gaps' new logo was openly tested on social media outlets, which consumers would be most likely to weigh in? Old loyal fans? Fence-sitters? Persuadables? Interestingly, rather than having a negative reaction, consumers within these segments would arguably have seen the new logo and thought to themselves 'Maybe there's something new here, let's go to the store take a look.' While these consumers are primarily responsible for driving Gap's sales and brand, unfortunately, those same groups are the least likely of the relevant consumer groups to contribute online. Why then, would Gap management bow to consumer pressure from groups that are not inherently responsible for driving brands sales and profitability. While the answer is uncertain, one probable conclusion is fear; fear, of alienating consumers in any category. In North American Gap, stores that have been open a year or longer have seen sales decline for six consecutive months. Additionally, Gap's parent company has not seen an increase in new annual sales since the beginning of the 2005. With this in mind, many on Wall Street believe that Gap needed the new, "sexier" logo to give some of their stores a fighting change, particularly as consumer spending lulls.]]>http://www.justmeans.com/Android-powered-Smartphones-Propel-Sony-Ericsson-s-Strong-Quarterly-Results/35010.htmlMon, 18 Oct 2010 23:26:44 GMTNathaniel Payne While many manufacturers within the technology segment continue to struggle, handset manufacturer Sony Ericsson posted slightly improved financial and operational results for the fiscal quarter ended September 30, 2010. In fact, despite shipping fewer handsets and realizing a slight reduction in overall revenue, gross and operating margins greatly improved. Moreover, Sony's continued focus on higher-end products, including Android-powered smartphones, seemed to pay off, as the smart phone segmen Read Full Article ]]> While many manufacturers within the technology segment continue to struggle, handset manufacturer Sony Ericsson posted slightly improved financial and operational results for the fiscal quarter ended September 30, 2010. In fact, despite shipping fewer handsets and realizing a slight reduction in overall revenue, gross and operating margins greatly improved. Moreover, Sony's continued focus on higher-end products, including Android-powered smartphones, seemed to pay off, as the smart phone segment helped Sony maintain its high average sales prices (ASPs). Based on quarterly numbers, smart phones accounted for more than 50% of Sony Ericsson's total sales. Moreover, Sony's shift to the popular Android platform, as well as the launch of new Android-based Xperia devices in new markets - such as China and the US - helped Sony grow its overall sales, while also positioning the company for future sales growth (both units and dollars). While many are pleased with Sony's results, Sony's reliance on the smartphone market has continued to raise important questions. Is this segment sustainable? How must risk does it carry? Is Sony over-committed to the smartphone segment? And finally, will Sony's focus on high ASP products increase its risk, particularly if customers price sensitivity increases or consumer confidence (and spending) decreases?On the whole, it appears that Sony's confidence within this segment is reasonably placed. During the third quarter of 2010, Sony Ericsson shipped 10.4 million handsets in total. Based on percentage share, these numbers indicated that Sony's total Android shipments approached 6 million during the quarter. For Sony shareholders, this results are promising, particularly because industry estimates put total Android handset OS shipments at 10.6 million during the second quarter of 2010. Additionally, as Android is increasingly being adopted by other vendors such as Motorola, HTC, ZTE, Huawei and LG Electronics, as well as makers of tablet computers and related mobile internet devices, the demand and sales growth within this space is expected to increase. While future growth within the segment looks to benefit Sony, one concern is future competition and new entrants. Specifically, how will Sony's sales and market share be impacted when more technology manufacturers enter the segment? While the answer is uncertain, if Sony can simply maintain its sales unit growth, while also maintaining its high ASP, the company may have a winning combination that few competitors will be able to match. Moreover, even if competition increases within the low to moderate price bands, Sony's results may continue to be positive, assuming that it maintains its emphasis on high-end products with higher average sale prices (ASP's) (while also relying on steady consumer demand). Overall, the ASP for Sony's smartphone handsets was a little lower than the second quarter of 2010, but much improved from the end of the 2009 fiscal year. As a whole, Sony' Ericsson's operating margin improved from -12% during the 3rd quarter of 2009, to +4% during the 3rd quarter of 2010. in Q310. To continue maintaining this momentum, Sony Ericsson must remain focused, drive sales, while also increasing its brand recognition within the Android smartphone space.]]>http://www.justmeans.com/Google-Buys-Significant-Stake-In-Atlantic-Wind-Power-Project/34384.htmlSun, 17 Oct 2010 15:59:13 GMTNathaniel Payne Early last week, Google announced that it, along with new partner Good Energies, have each agreed to take a 37.5% stake in the $5 billion Atlantic Wind Connection (AWC) project. The transmission grid, which will be built off the US coast in the Atlantic Ocean, was first proposed by US based transmission line company Trans-Elect, who will also be in charge of construction. Initially, Google and Good Energies have committed US$200 million in capital investment to support development. Japanese trad Read Full Article ]]> Early last week, Google announced that it, along with new partner Good Energies, have each agreed to take a 37.5% stake in the $5 billion Atlantic Wind Connection (AWC) project. The transmission grid, which will be built off the US coast in the Atlantic Ocean, was first proposed by US based transmission line company Trans-Elect, who will also be in charge of construction. Initially, Google and Good Energies have committed US$200 million in capital investment to support development. Japanese trading house Marubeni has also taken a stake of 15% in the project. While Google has always been committed to unusual innovation, many were surprised to hear about this investment. Interestingly enough, Google's investment in this energy project is not its first within the energy sector. In fact, just recently, Google announced plans to invest in a number of UK wind projects, while also pursuing a partnership partnership with GE that will support the development of new technology for the United States electricity grid transmission infrastructure. According to Google leadership, construction on the Atlantic Wind Connection (AWC) farm is expected to start in 2013, and the first 150 mile phase (with an estimated cost of US$1.8 billion) is expected to be complete by 2016. The entire project will be online by 2021.While many are excited about Google's initial investment, many more are excited about what this investment means for the future of renewable energy in the United States. The transmission lines would run as far as 20 miles offshore from Virginia to New Jersey. The initial phase of the project would be capable of delivering 2,000 megawatts of wind energy enough to power about 500,000 homes. The transmission lines will also enable connected wind farms to send energy through the power grid to a number of major census metropolitan areas, including New York. While the project continues to generate significant interest, regulatory approval for the project is expected to be the biggest hurdle. Specifically, while the US federal government has been mostly receptive to the idea, the fact that this transmission project is the first of its kind could create legislative resistance. On the other hand, many proponents of the farm are optimistic, noting that because the project only needs to get approval from the federal government, the probability of timely approval is high. Moreover, while this project is one of the first major wind projects off the US coast, many believe that the construction of an extensive transmission line in the Atlantic Seaboard will be a major catalyst for offshore wind investment in the area. With strong winds, the potential to create highly productive wind farms that significantly contribute to the US energy grid is high. Moreover, the shallow waters in the Atlantic Seaboard mean that construction of wind farms would likely be significantly easier and cheaper than similar farms within the great lakes. Overall, compared with other countries, the United States has fallen significantly behind in terms of offshore wind capabilities. Although the United States is the world leader in installed onshore wind capacity, standing at 36.3 gigawatts (GW), it has yet to install any offshore wind. The first offshore wind project -- Cape Wind, a $1 billion 410MW wind farm to be located in Nantucket Sound, off the coast of Massachusetts -- is currently in the final stages of regulatory approval.]]>http://www.justmeans.com/The-Perfect-Blend--Verizon-Is-Set-To-Start-Selling-The-iPad-On-October-28/34625.htmlFri, 15 Oct 2010 00:06:15 GMTNathaniel Payne Early Thursday morning, Verizon Wireless announced that it will begin selling Apple's iPad at its 2,000 retail stores nationwide on Oct. 28. This announcement, ends AT&T's exclusive grip as the sole distributor for Apple's fanatically popular tablet, and sets the stage for a broader partnership between Apple and Verizon. To provide portfolio diversity, Verizon Wireless is planning on offering three iPad bundles, each featuring an iPad Wi-Fi model and a separate Verizon mobile hotspot device. The Read Full Article ]]> Early Thursday morning, Verizon Wireless announced that it will begin selling Apple's iPad at its 2,000 retail stores nationwide on Oct. 28. This announcement, ends AT&T's exclusive grip as the sole distributor for Apple's fanatically popular tablet, and sets the stage for a broader partnership between Apple and Verizon. To provide portfolio diversity, Verizon Wireless is planning on offering three iPad bundles, each featuring an iPad Wi-Fi model and a separate Verizon mobile hotspot device. The retail prices are expected to range from $630 for a 16 GB iPad to $830 for the 64 GB model. Those prices will match the cost of Apple's WiFi + 3G iPads, which currently comes with built-in 3G capabilities. Stand-alone, Wi-Fi only iPads -- which Verizon will also carry - will begin retailing at $500. While it is true that current AT&T iPad customers can already run their Wi-Fi iPads over non-AT&T networks (by using external devices), the Verizon partnership is unique. This partnership marks the first time that Apple has linked up to sell its devices with a U.S. wireless partner other than AT&T, and signals a change in Apple's marketing strategy. More importantly, many industry insiders believe that this partnership is the first of many between Apple and Verizon. In fact, many insiders believe that Verizon is working on bringing Apple's iPhone to its network in early 2011.While the new partnership will provide customers with increased choice, the Verizon partnership also raises a number of important questions. From a technological standpoint, the battery on Verizon's mobile Wi-Fi device is expected to last only 4 hours, compared to the nine to 10 hours Apple estimates iPad users can get from their devices while surfing on Wi-Fi networks. And while Verizon's smartphone data plans offer unlimited data use, sadly, Verizon's iPad data plan will be capped. A monthly plan offering up to 1 GB of data is expected to cost an additional $20. This amount compares to $15 on AT&T for a 250 MB data plan, or $25 for a 2 GB plan. While this is one of a number of slight differences, the larger questions surround the impact that this partnership will have on price competition within the technology market. While AT&T was Apple's first iPad partner, the new partnership will significantly increase supply throughout the United States. Similarly, with other retailers including Wal-Mart, Best Buy, and Target set to carry a larger supply of iPads, this Christmas season could see an aggressive price war break out between competing iPad retailers. While the impact of this price war remains uncertain, the partnership between Verizon and Apple looks like an excellent decision, one that will likely translate into increased revenues, market share, and share value. In fact, many believe that this Christmas season could be one of Apple's best.]]>http://www.justmeans.com/Virtual-Game-Changer--Twitter-Changes-CEO-And-Renews-Focus-On-Revenue-Generation/34398.htmlThu, 14 Oct 2010 13:39:38 GMTNathaniel Payne This past Monday, Twitter co-founder Evan Williams stepped down as chief executive of the San Fransisco based start-up. Following his departure, Williams handed over the operations of Twitter toGoogle veteran Dick Costolo, who was brought in last year to help themicro-blogging service generate revenue. In a recent post on the company blog, Williams noted that Costolo, who is currently serving as Twitter's chief operating officer,would immediately be taking overas CEO.Following the transition, Wi Read Full Article ]]> This past Monday, Twitter co-founder Evan Williams stepped down as chief executive of the San Fransisco based start-up. Following his departure, Williams handed over the operations of Twitter toGoogle veteran Dick Costolo, who was brought in last year to help themicro-blogging service generate revenue. In a recent post on the company blog, Williams noted that Costolo, who is currently serving as Twitter's chief operating officer,would immediately be taking overas CEO.Following the transition, Williams will switch his focus exclusively to product strategy development.Costolo, whose Web content distribution company Feedburner was purchased by Google in 2007, has been at the forefront of efforts to begin monetizing Twitter since he joined the company last year. More importantly,Costolo, hasextensiveexperience helping online companies generate revenue, having served as a consultant at Accenture (formerly Andersen Consulting) for seven years. He also understands how technology companiesgrow, as well as the steps required toeffectively scale an online business.According to Williams,since his tenure with the company began, Costolo has played a critical role helping Twitter devise and execute their revenue efforts, while simultaneously streamlining inter-office operations.Since its initial launch in 2006, Twitter, which allows users to fire off messages of 140 characters or less known as "tweets," has enjoyed skyrocketing popularity. According to Williams,Twitter currentlyemploys around 300 people, a number that has increased from 20 when he took over asCEOtwo years ago. Dorsey, Twitter's previous CEO, is currentlyTwitter's chairman.Over the last 2 years, under William's leadership,Twitter grew from three million registered users to more than 160 million today. Their product has in many ways become synonymous with popular culture, achieving strong market penetration and attention. Moreover,Twitter's user base and usage statistics continue to growin most international markets. Unfortunately,while Twitter's usage stats are positive,significantwork needs to be done on the monetization front to ensure Twitter's long term growth and solvency. Like any business, growth rate and user baseare not the soleindicators of operationalsuccess. Money talks. Inevitably, long term success within the virtual sphere means increasing a company'srevenues and ultimately profits. These increases are important - particularly for Twitter -because they will enable Twitter to increase its shareholder commitment, accesst to capital, market capitalization, and investment attractiveness. Moreover, such increases will enable Twitter to retain the culture that it currently holds,while enablingthe company to pursueaggressive user growth inunderdeveloped markets. Of note, Williams' departure comesthree weeks after Twitter unveiled an overhauled website that enablespeople to more easily sift through the growing mountain of micro-messages. Twitter's "Promoted Tweets" advertising service now allows companies and others to place"tweets" at the top of a page of search results. While the initial reception for the promoted tweets service has been positive, unfortunately,only time will tell whether this leadership change will bear fruit.More importantly, it will be interesting to watchhow users respond to the monetization strategies thatCostolo incorporates; users, who have historically been sensitive to the presence of advertisements within their online interface.]]>http://www.justmeans.com/Asian-Revival--Ford-s-Asia-Strategy-Yields-Record-Results-In-September/34381.htmlThu, 14 Oct 2010 12:25:23 GMTNathaniel Payne Despite persistent challenges in North American and European auto markets, Ford's Asia Pacific and Africa division has achieved record resultsin September. These resultsare primarily attributed toits aggressive focus on small cars; a strategy, that continues to increaseunit sales and brand loyalty.Moreover, Fordcontinues to make sound strategic investments in its supply chain; investments, that are both increasing localproduction participationwhile also reducing manufacturing costs through enhan Read Full Article ]]> Despite persistent challenges in North American and European auto markets, Ford's Asia Pacific and Africa division has achieved record resultsin September. These resultsare primarily attributed toits aggressive focus on small cars; a strategy, that continues to increaseunit sales and brand loyalty.Moreover, Fordcontinues to make sound strategic investments in its supply chain; investments, that are both increasing localproduction participationwhile also reducing manufacturing costs through enhanced economies of scale. For example, Ford'sdecision to produce the "Fiesta" at its sharedAutoAlliance plantin Thailand (shared with Mazda), has enabled Ford to triple its sales within Thailand. Moverover, with a new fully owned plant based in Thailand due to come onstream in 2012, Ford furtherexpects thatits growth withinSouth Asian markets, aswell as its share of regional exports, will continue to rise. Overall,a review of Ford's September financial & operations datarevealsthat Ford's combined sales inChina and India, reached 482,129 units for the nine months to September, up 50% year-on-year. Indian sales were also boosted because of the small car programme.In fact, Ford's flagship Indian model,the Figo, is expected to soon reach outputs of50,000 units.This output, combined with strong sales, enabledFord grow its sales within India by 146% in September, while realizing188% combined growthover the first 3quarters of this fiscal year. While Indian and South Asian markets continue to perform, growth within China remains positive, but modest.Sales within the chinese market were up 26% in September and 40% for the nine month year to date period. While the rate of growth is less than select South Asian markets, analysts expect that this growth rate will continue to rise, particularly as Ford ads engine production capacity through its joint venture with Changan Ford Mazda Automotive. Chinese sales growth will also be enhancedby Ford's expansioninto thecommercial vehicle market. This expansion will be aided by the construction of a new plant in China that Ford will be operating withJiangling Motors Corp (JAC).Once theUS$300 millionplant is operational, it is expected that bothFord and JAC vehicles will realize significant sales increases within China.Moreover, with China's infrastructure stimulus plan continually generating growthinrelated industries, including the construction sector,it is reasonable to expect that the demand for Ford's commercialvehicles will alsoincrease proportionally. Overall, Ford believes thatapproximately 70% ofits global growth (over the next decade) will come from its Asia Pacific and Africa regions. This September, Ford Asia's cumulative divisionsales of 78,700 units were up 27% year over year, andandsales of 651,856 units within Asia over the last 9 months represent a40% year over year gain.This growth significantly exceeds the modest growth of 21% year of year that Ford has realized in the United States for the last 9 months, and contrasts against the 5% decrease in European unit sales that Ford has realizedover the last 8 months. On the whole, Ford's performance is very much inline with the results seen by other automakers, with emerging markets continuallydriving significantly higher portions of global sales.]]>