Definition

Biomass is the energy derived from the sun and stored in plants and animals. This energy can be released from biomass in several ways. Burning biomass produces heat (i.e. wood burnt in a fireplace). This heat produced by burning biomass can be used for generating electricity or for heating industries and homes. Biomass can also be converted into methane gas, raw material for natural gas, or ethanol and bio-diesel. Biomass is also a renewable source of energy.

Forms of Biomass

Wood: Since ancient times, wood has been used for heating and cooking. Wood waste is used to produce steam and electricity in the wood and paper products industries.

Garbage: The organic waste that is produced as garbage – food scraps, lawn clippings and leaves – is a source of biomass energy. Garbage can be burnt to produce steam that can be used for heating or generating electricity. When garbage rots in landfills it produces methane gas also called biogas, which is a fuel source.

Biofuels: Ethanol and Bio-diesel are biofuels blended with gasoline and diesel used for transportation. Ethanol is made from sugar found in grains such as corn, sorghum, wheat, potato skins, rice, sugarcane, sugar beets and yard clippings. Bio-diesel is made from vegetable oils, fats or restaurant greases.

Environmental impact

Biomass energy reduces air and water pollution. It increases soil quality and reduces erosion. Biomass when burnt produces carbon dioxide and pollutes the environment and does produce acid rain. But growing biomass crops offset equivalent amount of carbon dioxide. Burning of wood produces carbon mono-oxide and fine particles. Burning of garbage produces harmful gases which need to be filtered out to reduce their impact on the environment. Ethanol when blended with gasoline reduces its toxic pollutants but releases gaseous emissions that evaporate in the atmosphere.

Potential for biomass

Nearly 1.2 percent of electric sales in the U.S. come from biomass. About two percent of liquid fuel such as ethanol used in cars and trucks is made using biomass energy.
According to the Department of Energy, the U.S. can produce four percent of its transportation fuel from biomass by 2010 and 20 percent by 2030.

Reference

EERE Biomass Program

The Small Business Association (SBA) received an open letter from Senate Committee members on Small Business and Entrepreneurship July 31. The letter urged the SBA Administrator to implement programs on energy efficiency among small businesses as cited in the Energy Independence and Security Act 2007.

The initiatives in the Act include an education program for small business owners and employees on energy efficiency through the Energy Clearinghouse program. It also includes grants for conducting pilot energy audits and a telecommuting program for small business owners and their employees.

The business advisory firm Deloitte surveyed the business practices of UK entrepreneurs and found that they are going slow on adopting environmentally-friendly initiatives. Only 29% of the entrepreneurial businesses have undertaken carbon reductions steps. Other initiatives which require more focus and resources such as CO2 emissions reduction, water conservation and green procurement are less popular. According to Richard Crane, the entrepreneurial business partner at Deloitte, environmental initiatives are seen as a cost to the business rather than an opportunity. Further he cites two reasons why businesses should consider green practices:

• purchasing decisions of businesses and consumers are increasingly influenced by environmental factors
• environmental pressure on businesses and individuals brings the opportunities for new products and services to meet this goal

Our take on this – small businesses are more concerned about viability than sustainability. Fair point. But as Crane suggested, sustainability should not be thought of as a cost, but as an opportunity and a driver of strategy. Visit our forum to discuss how this might affect your business.

How To Reduce Energy Costs

Energy bills, especially electricity, are a large chunk of operating expenses for a small business. By practicing simple no-cost or low-cost steps, a business can significantly lower its electricity consumption and save money. The following five steps show you how. Be sure to save at least 10% on your electricity bill.

Step 1: Set sustainability goals.

Where do you want to be? Focus on where you want to take your business, say 2, 3, or 5 years down the road. Develop 3 to 4 goals that will make your business sustainable over a period of time. For example: Reduce energy bill by 25% in 12 months, replace all lights with CFLs by next month, reduce waste cost by 50% in two years, etc.

Step 2: Sustainability Assessment.

Where are you now? Gather baseline information on what your business pays for energy, key economic, environmental and social issues. This information will serve as a baseline for measuring progress on your sustainability goals.

Step 3: Appoint a sustainability champion.

A sustainability champion knows all about sustainability that can help your business achieve triple-bottom line success. This person will drive the program and be accountable for progress in sustainability initiatives.

Step 4: Create a roadmap for achieving sustainability goals.

How to get there? Identify the steps you need to take to achieve your sustainability goals. Develop an action plan to translate the vision into action oriented items. A good action plan should provide goals and objectives, identify issues and concerns, recommend items and assign responsibility.

Step 5: Sustainable measures.

Develop a set of yardsticks or indicators to measure progress based on the goals and roadmap. These yardsticks or indicators will highlight critical social, environmental and economic problems and provide a way to measure success in order to alleviate these problems.

Step 6: Pilot project.

Start with a small pilot project. Take on easy goals first and then the difficult ones. For example, educate yourself and your employees to turn off lights after use. Do this for a couple of months.

Step 7: Check your progress.

Using the set of yardsticks or indicators developed in step 5, measure your company’s progress periodically and make adjustments as necessary. Take on new sustainability projects by incorporating learning from the pilot project.

Market competition today has changed. Providing a great product or service is no longer enough to sustain business success. From customers to government agencies, all are demanding companies to take on corporate responsibility. Suppliers, investors, consumers alike are demanding companies to examine their business practices and take responsibility for its impact on the environment and society. A survey of social trends conducted by the research firm GlobeScan in 2007 found that consumers, 55% surveyed in North America, punish companies whose business practices harm the environment. These discriminating consumers have created a $306 billion ‘green’ market.

Financial markets are also showing interest in the role of sustainability practices of businesses. Dow Jones has created Dow Jones Sustainability Indexes to track the financial performance of sustainability driven companies. Al Gore and David Blood made a point in McKinsey Quarterly May 2007 that investing in sustainability delivers above-average returns.

Sustainability issues and climate change are increasingly influencing purchase decisions of consumers and customers. A company that ignores environmental or social issues may limit its value through loss of opportunities.

Definition

LEED is a green building rating system which is used for designing, constructing, operating and certifying buildings that have a low impact on the environment, promote good health of its occupants and are profitable. A LEED-certified building is verified by a third-party on its performance. LEED was created by the U.S. Green Building Council (U.S.GBC).

The focus of the LEED system is on the following five areas of a building project: energy efficiency, material selection, indoor environmental quality, sustainable site development and water savings.

The rating system consists of four levels: certified, silver, gold and platinum. These levels correspond to credits accrued in the above five areas. The certification review fees of Platinum certified buildings are refunded.

LEED Products

The following types of buildings and projects can be certified under LEED:

• LEED-NC for new construction
• LEED-EB for existing buildings
• LEED-CI for commercial interiors
• LEED-CS for core and shell
• LEED-H for houses
• LEED-ND for neighborhood development
• LEED-Schools
• LEED-Retail
• LEED-Healthcare

Sustainability in business refers to the way a company’s business practices impact the environment, economy and society. Sustainable business practices reflect a long-term view instead of focusing on short term economic gains. It is also referred to as triple-bottom-line strategy. When a company commits to sustainability, it means that the company’s business decisions will focus on conservation of resources, minimize waste, select environmentally and socially responsible partners and vendors, and provide a financially and emotionally rewarding place to work.

Sustainable business practices reduce operation costs, enhance productivity, and thereby increase profitability. It ensures long-term growth and prosperity. Sustainability saves money, for example, by reducing consumption of resources. It helps attract and retain customers who support businesses that engage in sustainable practices. Federal as well as state governments offer a wide variety of incentives and tax benefits to businesses for practicing sustainability.