San Francisco, Calif — Nov 27, ‘07 — Google said on Tuesday it plans to spend hundreds of millions of dollars to help drive down the cost of electricity made from renewable energy below the price of coal.
The project, which Google is calling RE<C, using mathematical symbols to denote “renewable energy cheaper than coal,” will be based in Google’s research and development group and is hiring dozens of engineers and targeting investment financing at advanced solar thermal power, wind power, enhanced geothermal systems and other new technologies, Google said.
The Web services and online advertising group will be a big customer for the project, running computers and networks on the electricity and selling back what’s left to the power grid.
“Our goal is to produce one gigawatt of renewable energy capacity that is cheaper than coal. We are optimistic this can be done in years, not decades,” Larry Page, Google’s co-founder and president of products, said in a statement.
A gigawatt can power a city the size of San Francisco. An analyst at broker Raymond James noted the entire US solar cell generation capacity at the end of 2006 was only just over half a gigawatt, while 11.6 gigawatts came from wind power.
“We see technologies we think can mature into very capable industries that can generate electricity cheaper than coal,” Page further added, “and we don’t see people talking about that as much as we would like.”
The company also said that Google.org, the philanthropic for-profit subsidiary that Google seeded in 2004 with three million shares of its stock, would invest in energy start-ups.
As part of the initiative, executives at Google.org said they are working with two companies that have “promising, scalable energy technologies.” One of these, eSolar, based in Pasadena, Calif., uses thousands of small mirrors to concentrate sunlight and generate steam that powers electric generators. The other, Makani Power of Alameda, Calif., is developing wind turbines that will run on powerful and generally more predictable winds at high altitudes.
Page, in an interview, said that failing to investigate new businesses could hurt Google more than any potential distraction. “If you look at companies that don’t do anything new,” he said, “they are guaranteed never to get bigger. They miss a lot of opportunities and they miss the next big things.”
In a conference call Tuesday with reporters, Sergey Brin, Google’s other founder and president of technology, said the effort was motivated in part by the company’s frustrating search for clean, cheap energy alternatives.
“It’s very hard to find options that aren’t coal-based or other dirty technologies,” he said. “We don’t feel good about being in that situation as a company. We feel hypocritical. We want to make investments happen so there will be alternatives for us to use down the road.” Both founders declined to specify what the company now spends on energy.
Idealism is hardly new at Google. In their Letter From the Founders before the company’s 2004 initial public stock offering, Page and Brin wrote: “Our goal is to develop services that significantly improve the lives of as many people as possible. In pursuing this goal, we may do things that we believe have a positive impact on the world, even if the near-term financial returns are not obvious.”
Google does not disclose the energy consumed in powering its online services, but local energy experts say it ranks as one of Silicon Valley’s biggest energy customers.
“As Google grows, we don’t want our core business to be part of the problem. We want to be part of the solution,” said Larry Brilliant, head of Google.org, the company’s philanthropic arm which will direct the energy investments.
Brin said he felt the company would be “hypocritical” not to do something. Google and its founders are big promoters of electric cars and the roof of its headquarters in Mountain View, California, supports a large solar energy installation.
The push comes as oil prices near $100 a barrel and coal, which generates 40 percent of the world’s electricity, faces regulatory and environmental pressures that may boost prices.
Google plans to spend tens of millions of dollars in 2008 on renewable energy development and other efforts. Its initial focus will be solar thermal and enhanced geothermal systems.
Eventually, the company would spend hundreds of millions of dollars in for-profit “breakthrough renewable energy projects.” Hydroelectric and nuclear energy are not part of the project.
Page believes no more than 1,000 researchers worldwide are focused on renewable energy cheaper than coal. “We would really like to get those people in one room and give them resources.” More at Google.