By 2030 global energy consumption is projected to increase by 50 percent, with two-thirds of this increase in emerging economies. The International Energy Agency projects that energy-related CO2 emissions will increase by 50 percent in the next 25 years.
The global market for clean energy technologies was $10 billion in 2005: ten times higher than in the previous year. Two entrepreneurs in WRI’s New Ventures program have developed innovative ways to tap into this immense market:
Sumaya HMX
An innovator in efficient climate control solutions
Sumaya HMX has established itself in India’s burgeoning heating, ventilation and air conditioning (HVAC) industry by positioning its products as a less costly and more efficient alternative to traditional air conditioning. The company is tapping into a $1.8 billion thermal comfort market in India by leapfrogging the competition with its Ambiator technology.
This “open air conditioning” system uses a third less power than traditional models and operates without the use of chlorofluorocarbons, which contribute to global warming. The environmental component of this efficient technology is significant; over the next six years, the HMX founders expect their systems to offset 2 million tons of CO2 emissions.
Under current carbon trading systems, this would be equivalent to $10 million in revenue, an attractive figure as HMX considers selling its HVAC products in the European market.
The Ambiator has quickly become popular in India, where energy costs have risen at a staggering 30 percent over the last three years. Major clients such as Bosch, ABB, Ford and Wipro have installed the HMX system in their buildings, spurring a steady rise in sales since the company’s founding.
From 2001 to 2006, the company generated an 86 percent compounded annual growth rate. HMX has achieved nationwide reach and is planning to expand internationally in the coming years. As energy prices rise worldwide, the company is expected to continue its impressive growth trajectory as demand for efficient climate control solutions continues to expand.
Beijing Shenwu Thermal Energy Technology Co.
Pioneering clean energy for China
As China continues to experience GDP growth of about 8 percent per year, entrepreneurs like Dr. Wu Dao Hong have tapped into strong demand for energy efficient technologies. Beijing Shenwu manufactures equipment that reduces industrial fossil fuel consumption and carbon emissions, generating major energy and cost savings for its clients in the steel, petroleum, chemical and other sectors.
The company utilizes a proprietary patented combustion technology that the World Bank has recognized as one of world’s best energy saving solutions. Shenwu’s products, based on high temperature air combustion (HTAC) and other technologies, reduce energy consumption by 30 to 60 percent while increasing output by 10 percent - a competitive edge that has generated over $50 million per year in revenues for the company.
The technology also reduces carbon emissions by 30 percent, ensuring the company’s long-term viability in a carbon-constrained economy. Shenwu was the first Chinese company to join the Chicago Climate Exchange and, this year alone, will eliminate 6 million tons of CO2 from 170 separate installations.
The company’s forward-thinking approach and strong emphasis on research and development have made it a leader in combustion technology; Shenwu has captured 60 percent of the Chinese market for industrial furnaces using HTAC technologies and seeks investment to continue expansion in the broader thermal energy market.
With its innovative business model, this enterprise of 240 employees has made a profound impact on Chinese industry and led a new competitive drive for low emissions technology in the world’s second largest economy.
