System Sustainability and Innovation The Engineering Challenge: “Embrace the Whole System” • Energy is not fuel alone; it is a set of components in an ecosystem. A dynamic set of forces that support growth only when dynamically balanced, and dangerous when static or extremely unbalanced! • The opportunity before us, as engineers, entrepreneurs, politicians and citizens, is to create systems that help us to dynamically optimize our fuel/energy/resource mix for sustainable human development. 3/8/07 SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Cradle to Cradle Systems Design Emulating Nature’s Material and Energy Flows Nature’s ecosystems function on some key principles that human design can emulate. 1. There is no “waste” in nature; the waste from one organism provides nutrients for another. 2. All life on earth is fueled by solar energy. 3. Life thrives on diversity, constantly adapting to fill niches. Cradle to Cradle Design remodels human industry using these natural principles. It envisions a world powered by the sun where growth is good, waste is “nutritious,” and productive diversity enriches human and natural communities. The application of cradle-to-cradle principles to industry creates cyclical material flows (cradle-to-cradle rather than cradle-to-grave) that, like the earth’s nutrient cycles, don’t recognize the concept of waste. Each material in a product is designed to be safe and effective, and to provide high quality resources for subsequent generations From McDonough.com “Cradle to Cradle Design Principles” 3/8/07 SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Let’s Look at the Peak Oil Challenge! A Supply and Demand Analysis What is right and what is wrong with this model? http://www.hubbertpeak.com/ 3/8/07 • It is a limited resource model -- And resources are limited! But Oil is not our only resource! • How does this it help us understand the problem? • What does it tell us about ourselves? • What analytical model would be better? • What are the missing variables? SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Systems, Innovation and Sustainability The Mystery of Capital: Hernando De Soto – The multiple dimensions of property)(Squatters) – The Other Path • Fighting Terrorists Strengthens Them; • Empowering Grass-Roots, Creative Producers Takes Power Away From Terrorists Natural Capital: Paul Hawken, Amory & Hunter Lovins: – Capitalize natural resources instead of depreciating them. – Organize financial systems “as if living systems mattered” Intellectual Property as Capital: – Open Source, Mega-Patents and GIN’s (Alliance Systems) – Empower creators of Intellectual Property and Innovation (Mega-patents) Efficiency = Capital: The more you save the more capital resources you have. The Globalization and Localization of Communities: Rational Systems – – – – 3/8/07 Systems within Systems -- sports analogy. Appropriate hierarchy (Bay Localize) Operate from self-sufficiency: Strengthen the Self-sufficiency of others. Seek to expand economies with appropriate collaboration and competition Rationalize competition over things that matter with appropriate rewards. SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Forest to Desert Lu Yongru (age 14) Hebei, PRC 2002 Waste is a name we give to raw materials we are not using productively. If we use them, they are not waste! • All processes (living and non-living) use natural resources and transform them into forms they cannot use; • Yet all resources can be used by some process. All resources are limited -- unless we learn how to reclaim wastes and put them back to work. • Once we learn, we can have a sustainable supply of resources for the future. Wasted resources also contaminate our environment: • They make life less healthy, more expensive and less sustainable. 3/8/07 SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Climate Change: Global Warming Plus Water and Soil Degradation as recognized by young Chinese children Saharan Water: Zhu Siying Age 6, Hubei, PRC 2002 3/8/07 Changes: Zeng Fei (age 15) Jiangxi, PRC 2002 SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Climate Change: Solar Dimming and Toxic Emissions as described by young Chinese children It is popular to wear a Gauze mask The Sandstorm is Coming Li Xiaoxiang (age 10) Hubei, PRC 2002 Zhu Xi (age 9) Yunnan, PRC 2002 3/8/07 SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 3/8/07 SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Sequester Carbon as Products QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Dry Ice and Liquid CO2 for Food Processing/Handling Qui ckTime™ and a TIFF (U ncompr essed) decompressor are needed to see thi s pi cture. Dry Ice for Ice Blasting Clean Fuels, Fertilizers, Industrial Chemicals Solvents gases and Firefighting Chemicals Carbon Nanotubes Biochar (Terra Preta) 3/8/07 Corn Grown with Biochar as a soil amendment SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Aerobic (Windrow) Composting No process is perfect by itself! Composting is a good way to recycle some wastes, however, it is not always effective or appropriate. The following factors may limit the applicability and effectiveness of windrow composting: • Substantial space is required for composting. • Excavation of contaminated soils is required and may cause the uncontrolled release of Volatile Organic Compounds (VOC’s) including methane CH4 and other Greenhouse Gases including CO2. • Composting results in a increase in material because of the addition of amendment material. • Although levels of metals may be reduced via dilution, heavy metals are not treated by this method. Also high levels of heavy metals can be toxic to the microorganisms. 3/8/07 SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 The EPA Recycling Paradigm Recognizes the Cradle to Cradle Objective 3/8/07 SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Full-Cycle Resource Utilization System Waste Generation Transfer Station Feedstock MRF: Materials Recycling Facility End-Users Energy Products Fabricators and Distributors Products Toxic Waste Energy Biorefinery Feedstocks Reclaimed Resources from Landfills, Manure Piles, etc. Products Farmers and Manufacturers 3/8/07 Feedstocks Raw Materials, Carbon, Fertilizers and Fuels SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 From a System Perspective, Energy/Resource Transformation is not about Choosing the Most Efficient Source; It is about Optimizing the Mix! QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Geothermal Landfills: Energy + Resources Solar Wind QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Efficiency Hydroelectric Biofuels Oil and Gas QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Atomic Power 3/8/07 Human Power Innovative Alliances: Global Innovation Networks Anaerobic Digestion SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Farmed Biomass Innovative Cybernetic Systems Organizational Intelligence Energetic Ingredients Organizational Processes “Horse” Power -- Brain Power Wind, Waves, Solar Energy Efficiency Animal + Man Power Cleaner Fossil Fuels Safe Nuclear Energy? 3/8/07 Life Cycle Efficiency Healthy Air, Water, and Soil Lifelong Education Quality of Life - Economics Adaptive Alliance Building SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007 Potential Research Assignments 1. United nations CDM System and Opportunities for Business to work in Developing Countries using CERs. Research the ones that have been successful and develop a business plan for either replicating some successful methodologies or develop a new methodology to make energy more efficient, reduce GHG emissions, and captuer either CERs or VERs. 2. Waste management: How can we divert waste and efficiently put it back to work? Pick a solution and build a business plan. Be sure to put it into the context of multiple other solutions that could complement your solution. 3. Many people believe that reducing our emissions and using energy efficiently will cost a fortune. Read Barron’s Quarterly arguments along those lines. Analyze two of their analyses and show how creative thinking and innovation will actually make more money for businesses that adopt them. 4. Analyze the cost of waste streams and the cost of converting them into energy and useful products. Build a business plan that will make it profitable to convert waste back into resources for sale. 5. Identify a method for sequestering carbon in useful products. Analyze the cost of doing so and develop a business model that would make it profitable to do so. 6. Research the literature and develop a business model for continuous innovation and adaptability that will be serve the triple bottom line. 7. Read the reports on Bill McDonough’s work in China. Why did the project fail when he has had so many successful projects? What will he need to do differently next time? 8. Read the Projections 2008 report of the Silicon Valley Leadership Group. Identify a project that could win their support, when the engineering is done well. Then design that engineering solution while taking into account the business and political requirements as well. Remember, no business plan will get funded unless it looks simple and convincing. 3/8/07 SJSU Presentation ©E3 Regenesis Solutions, Inc. 2007