Not sure where to focus your business? Clean energy is a good bet

    
     ^{_{PHOTO BY GREG KNUDSON}}

"Cleantech is an attractive space to be right now for business,” says Scott Walton, the CEO of Saint John-based Enovex. He should know; he’s on the ground floor of the sector and says its exploding with interest. “It’s a relatively new industry that doesn’t have firm boundaries, and its definition can extend to things we haven’t yet considered.”

In general clean technology, or cleantech, can be defined as consisting of such things as wind farms and fuel-efficiency devices, but it’s not restricted to those undertakings. It also encompasses new agricultural methods that reduce the use of fertilizer or water, new windows that enhance natural light, and—well, things we haven’t even thought of yet. Basically, as long as there’s a product or service that benefits the environment, it’s cleantech.

One thing is certain: Cleantech is a segment of the economy that governments and entrepreneurs are excited about. In fact, this year’s agreement between Newfoundland and Labrador and Nova Scotia to jointly develop the distribution line for the Muskrat Falls hydroelectric power project highlights the multibillion-dollar capacity of cleantech. And at the other end of the spectrum, small businesses are diving into this space, drawn by the love of both saving the environment and profits.

Since 2008 Walton’s company, Enovex, has been developing carbon-capture technology to remove the greenhouse gases emitted by coal-fired power plants. Recently he secured funding, a corporate partner, and sparked interest from investors from China, New York City, Chicago, Colorado, British Columbia, Alberta, and Ontario. “Our largest market potential is in China,” says Walton. “So our focus is to do everything we can to expose our technology there.”

All indicators suggest that cleantech will continue to boom for years to come. In fact, a 2010 Sustainable Technology Development Canada report reveals that the Canadian cleantech industry grew at a compound annual growth rate of 47% during the 2008/09 recession, during which the best companies achieved growth of 170%. Meanwhile, planned compound annual growth rate for 2010 to 2012 is 117%.

Part of the reason for the phenomenal growth is that around the world, governments are bringing in a constant stream of regulation that is forcing jurisdictions to find cleaner sources of energy. Tightening regulations have been announced in China, Europe, Canada, and some American states, ensuring that there is a ready market for the best innovations in this field. “We’re starting to see emission regulations and coal plant phase-out legislation implemented by many jurisdictions,” says Walton, “and it’s very exciting for us.”

The opportunities are especially pronounced in Atlantic Canada, which is highly reliant on energy powered by the burning of fossil fuels. Yet the region also has natural advantages for reducing its dependence on hydrocarbons: the Muskrat Falls project will probably succeed; we’re blessed with numerous sites suitable for wind power; and with the highest tides in the world, we could one day be a global leader in tidal power.

Are these projects too big for small businesses? Not really. Small entrepreneurs around the region are putting up wind towers, while others are working on the technology that will improve the efficiency of energy projects. “Our business is up over 200% year-on-year, and next year we expect over 150% growth,” says Jonathan Barry, the president of Seaforth Energy Inc., a Halifax-based green-energy company and wind-turbine manufacturer. That sort of growth is powering big and small businesses in cleantech, regardless of how you define it.