Sustainable Industries

By Nik Blosser

President, Celilo Group Media

March 2004

Prologue:

What is sustainability?

Definitions

• Brundtland Report: “…meet our own needs while allowing future generations to meet their own needs.”

• The Natural Step Framework: 4 “system conditions”

Victory (in sustainability)as defined by William McDonough

1. 100% of energy from renewable sources;

2. All products in the world made from either:

(i) biological nutrients that replenish the earth after use, or;

(ii) technical nutrients that are perpetually and safely recycled.

What are sustainable industries?

Businesses that have ecological innovation as a core part of their business model.

1. Products (renewable energy, technical ‘nutrients’);

2. Processes (biological and technical nutrient processes);

Sustainable Industries:

• Product manufacturers

• Distributors

• Raw material providers and brokers

• Professional service providers

The next Bill Gates will come from the renewable energy

world.

-- Theodore Roosevelt IV, Wall Street Investment Banker

Main Story:

Emergence of Sustainable Industries in the Northwest

Categories • Status • Opportunity

4 Major Categories

1. Green Building

2. Recycled Products

3. Sustainable Agriculture/Natural Resources

4. Renewable/Smart Energy

1. Green Building

• Raw lumber

• Wood products manufacturers

• Architects, contractors, interior designers

• Building efficiency systems and services.

Islandwood (LEED Gold)

Status

• City of Seattle leadership in LEED development

• Concentration of LEED experts in region

• GreenBuild conference in Portland, November 2004

• Booming growth in private sector development

Green Building

Barriers to growth:

- Marketing: demonstrating value in LEED certification;

- Policy: out-of-date building codes;

- Product availability.

2. Recycled Products

• Processors (paper, metal, glass, plastics, organics, wood, electronic waste)

• Manufacturers using recycled products

Status

• Portland #1 recycling rate in the nation of larger metro areas (Waste News)

• Bottle bill in Oregon

• Scrap metal recycling expertise – exporting to Pacific Rim

• King County/City of Seattle bans on various materials

Recycling Opportunities

Material Type Generated Disposed Recovered Recovery Rate

COMPOSTABLE ORGANICS

Yard trimmings 256,297 52,801 203,496 79%

Food scraps 192,762 180,804 11,958 6%

Grease 10,825 - 10,825 N.A.

Total Compostable Organics 459,884 233,605 226,279 49%

Compostable Organics

Portland metro region 2002 (tons)

Portland Metro Region 2002 (tons)

Material Type Generated Disposed Recovered Recovery Rate

PAPER

Recyclable Paper

Newspaper 168,117 26,879 141,238 84%

Magazines 12,886 12,886 - 0%

Mixed waste paper 81,182 54,030 27,151 33%

Cardboard/kraft paper 249,131 41,328 207,803 83%

High-grade paper 49,537 20,440 29,097 59%

Recyclable Paper subtotal 560,853 155,563 405,290 72%

Non-recyclable Paper

Non-recyclable paper 52,884 52,884 NA

Non-recyclable packaging 18,859 18,859 NA

Mixed paper/materials 24,905 24,905 NA

Non-recyclable Paper subtotal 96,648 96,648 NA

Total Paper 657,502 252,212 405,290 62%

Paper

Construction & Demolition DebrisPortland Metro region 2002 (tons)

Material Type Generated Disposed Recovered Recovery Rate

Recyclable Wood        

Clean and painted lumber 44,817 44,817   NA

Pallets / Crates 17,044 17,044   NA

Other wood products 1,746 1,746   NA

Recyclable Wood subtotal 274,370 63,607 210,763 77%

Non-recyclable Wood        

Chemically treated lumber 1,219 1,219   NA

Mixed wood / materials 20,027 20,027   NA

Non-recyclable Wood subtotal 21,246 21,246 0 NA

Gypsum wallboard        

Gypsum wallboard new 34,326 31,167 3,159 9%

Gypsum wallboard old 20,382 20,382   NA

Roofing        

Roofing, recyclable 42,180 30,998 11,181 27%

Roofing, nonrecyclable 2,880 2,880   NA

Fiberglass insulation 4,117 4,117   NA

Porcelain and other inorganics (5) 33,364 32,670 694 2%

Total Construction & Demolition 432,865 207,068 225,797 52%

125,773

Other Materials

Portland Metro 2002 (tons) Material

Material Type Generated Disposed Recovered Recovery Rate

Total Glass 67,456 24,637 42,819 63%

Total Metal 167,232 67,132 100,100 60%

Total Plastic 149,609 138,610 10,998 7%

Total Other Organics 57,911 57,911 - 0%

Total Rubber 27,542 19,015 8,527 31%

Total Textiles and Carpet 73,361 71,612 1,748 2%

Total Furniture & Furnishings 23,291 23,291 - 0%

Total Electronic & Electrical Equipment 24,727 23,971 756 3%

Total Inerts (rock, sand, concrete) 57,056 37,146 19,910 35%

2. Recycled Products

Barriers to growth:

- Policy: raising recycling rates, particularly for construction & demolition debris and organics; WA reporting system needs improvement

- Markets: creating markets for various waste streams and materials;

- Engineering: “waste is a failure of design”

E-waste

3. Sustainable Agriculture/Natural Resources

• Organic and Food Alliance-certified farmers

• Marine Stewardship-certified seafood

• Food processors

• Food preparers/servers

Status

• National certifiers HQ in NW: Oregon Tilth, Food Alliance, Marine Stewardship Council, Organic Materials Review Institute (OMRI)

• WA: state organic certification; decent technical assistance for organic farmers

• OR: lacking in technical assistance and organic ag research

3. Sustainable Agriculture

Barriers to growth:

- Technical assistance: ag extension research;

- Policy: Transition assistance to farmers seeking certification is critical;

- Marketing: US citizens are simply used to paying too little for food.

4. Renewable/Smart Energy

Renewables (wind, solar, geothermal, wave, biomass, hydro)

• Development and Generation

• Manufacturing

• Transmission and consulting services

• Energy efficiency technologies

NW Windpower Advantages

• Oregon and Washington ranked in top ten in the nation for wind resources

• Wind “shapes” well with hydropower

• One of largest wind developers HQ in Portland (PPM)

• One of largest wind turbine manufacturers has US HQ in region (Vestas)

National ranking of NW green power programs

• Portland General Electric: #2 (and #1 IOU)

• PacifiCorp: #5

# of birds killed by wind turbines annually

6,000

4. Renewable/Smart Energy

Barriers to growth:

- Policy: federal tax credit for wind energy (lapsed this year)

- Policy: renewable portfolio standards in WA, OR and neighboring states

- Market: higher energy costs make renewables and smart energy tools more viable

Other possible categories

• Transportation: hybrid-electric cars, transit systems, fuel cells

• Green chemistry

By-the-wind sailor

If an invertebrate can sail into the wind, you can, too.

• Sustainable Industries Journal NW(monthly)

• Sustainable Industries Overview 2004 (annual)

• Chinook Book (annual Seattle/King County and Portland metro editions)

www.sijournal.com

For more information: