1. adopted a Climate Protection Plan, which calls for greener
EXECUTIVE SUMMARY transportation and infrastructure for the immediate future.
Prosperous opportunities abound for UK and Florida investors Sir Alan Collins, Director-General for UK Trade & Investment in the
and developers willing to tackle global climate change. USA reaffirmed the UK’s commitment to combat climate change and to
lead by example whilst analyzing how the debate over climate change
UK Trade & Investment at the British Consulate-General in Miami, has transitioned from science to policy and, now, to investment.
The Greater Miami Chamber of Commerce and Enterprise Florida,
hosted a conference on Renewable Energy in Miami, Florida. The Matthew Partridge, Senior Biofuels Consultant for Wood Mackenzie
conference, “Trends in Global Innovation and Finance: The Tools Inc., addressed concerns surrounding biofuels and discussed key
of Technology Meet the World’s Energy Challenge,” addressed issues for their development. Analyzing the various drivers that are
how recent developments in the industry are creating business pushing biofuels forward as an alternative to fossil fuels, Mr
opportunities for the UK and Florida and influencing global Partridge argued that the best strategy for bringing the next
finance systems. generation of biofuels to market is through small, incremental steps.
The UK and Florida’s shared commitment to address climate The panel on Trends in Next Generation Biofuels, examined industrial
change, coupled with each region’s comparative advantages and biotechnology trends and new research developments in biofuels and
innovations, highlighted the conference’s objectives of promoting low carbon power generation. The speakers agreed that there is a
the continued innovation of renewable energy sources through great need to identify as many Second-generation biofuels as possible
international cooperation. Climate change is a global issue that whilst allowing market forces to dictate the eventual winners.
requires a global solution. As a result of geographical and
innovative core competencies, Miami is poised to position itself at The next panel, Power Generation from Renewable Sources, explored
the epicentre of the global renewable energy market. Coupled with broad trends in emerging technology areas such as marine, wind,
London’s determined policies to reduce global warming, the UK photovoltaic, solar and clean coal energy. The presentations
and Florida promise to lead the movement to seek and discover the emphasized the importance of partnership and collaboration in
newest and cleanest energy technologies. developing a large number of alternatives to satisfy present and future
energy needs.
The UK believes that climate change is the greatest long-term
challenge facing the world today. Further, recognizing that the UK Michael O’Sullivan, Senior Vice President of FPL Group, discussed
is facing a decline in indigenous energy supplies and is the current state of wind and solar projects in the US. Whilst FPL
transitioning towards becoming a net energy importer, London Group understands that wind is not a silver bullet, investment in the
intends to produce 20 percent of electricity through renewable sector has increased steadily, and particularly so during the 2007
energies by 2020. calendar year.
At the “Serve to Preserve Florida Summit on Global Climate The following panel addressed Greenhouse Gas Mitigation
Change,” held on 23 July, 2007, Florida Governor Charlie Crist Strategies: Links to Policies and Markets. The speakers offered
and UK Special Representative for climate change, John Ashton, insights into policy and regulatory frameworks and their effects as
signed a partnership to tackle global climate change. Additionally, they spur innovation and technology adoption. Carbon emissions
Florida Governor Charlie Crist signed three executive orders trading has emerged as a profitable endeavour for companies,
directing cuts in GHG emissions from energy consumption in investors, and industries and is a necessary step for national and state
Florida. The governor will request the state adopt a 20 percent by governments as well as the wider international community.
2020 Renewable Portfolio Standards (RPS) with a focus on solar
and wind energies. The partnership is expected to increase sector- The fourth panel presented on clean energy finance trends and
related trade between Florida and the UK. examined the characteristics of viable clean energy projects and
future growth opportunities. The presentations focused on
HM Consul-General Keith Allan welcomed the conference investment and development potential in Latin America and the
participants and recognized the efforts and leadership of Florida Caribbean.
Governor Charlie Crist and Miami Mayor Manny Diaz in
addressing climate change. Mr Allan also paid tribute to recent Jorge L. Arrizurieta, Chair of the International Policy Group and
developments in Florida, such as Citrus Energy’s plan to convert Governmental Consultant at Akerman Senterfitt, presented on
citrus waste into biomass feedstock for ethanol production, and Florida’s role in the development of biofuels for the hemisphere and
FPL’s plan to develop a massive solar plant in the state. beyond. Stressing Florida’s geographic advantage and other
competencies, as well as the solid UK-Florida commercial
Florida Energy Secretary Michael W. Sole cited examples of how relationship, Mr Arrizurieta emphasized the state’s unique
Florida is proactively addressing global warming based on opportunity to be at the epicentre of biofuel research and
Governor Crist’s executive orders. Addressing the potential development.
impact of renewable energies on Florida’s economy and
businesses, Mr Sole made a comparison to the dotcom era, calling Throughout the conference, the presenters expressed confidence in
this a “Second Industrial Revolution,” whilst claiming that there market forces. The conference demonstrated that market-sensible
will be no shortage of profitable ventures for those with vision and developments are being made and that profitable investment
an entrepreneurial spirit. opportunities exist. As demand for biofuels and clean energy
solutions continues to rise in the UK, Florida, and the world, UK
Miami Mayor Manny Diaz detailed how Miami has taken the lead Trade & Investment, The Greater Miami Chamber of Commerce, and
as a green city of the future. Miami is one of the original signators Enterprise Florida will help encourage the market to strengthen and
of the “U.S. Mayor’s Climate Protection Agreement, and has mature and will continue to strive to identify best prospect
solutions.

2. Governor Crist also signed three executive orders directing cuts in
REPORT GHG emissions from energy consumption in Florida. Further, the
governor will request the state adopt a 20 percent by 2020
TRENDS IN GLOBAL INNOVATION AND Renewable Portfolio Standards (RPS) with a focus on solar and wind
FINANCE: THE TOOLS OF TOMORROW energies. The partnership is expected to increase sector-related trade
MEET THE WORLD’S ENERGY CHALLENGES between Florida and the UK.
Background The UK enjoys the largest wind source in Europe. Capitalising on
UK Trade & Investment at the British Consulate-General in Miami, this comparative advantage, as well as on attractive tariffs and an
The Greater Miami Chamber of Commerce and Enterprise Florida, expanding supply chain, the UK wind energy sector is rapidly
hosted a conference on Renewable Energy in Miami, Florida. The developing. Whilst the UK wind energy capacity currently sits
conference, “Trends in Global Innovation and Finance: The Tools behind several European nations---Germany, the world’s leading
of Technology Meet the World’s Energy Challenge,” addressed wind energy nation has over 20 gigawatts (GWs) of wind energy
how recent developments in the industry are creating business capacity; 10 times as much as the UK 5---the Government deems this
opportunities for the UK and Florida and influencing global sector vital to achieve the UK’s energy goals. A concentrated focus
finance systems. on funding is aimed at ensuring that policies are in place to attract
private investment, assist project finance through long-term power
The UK and Florida’s shared commitment to address climate purchase agreements and stimulate activity through capital grants.
change, coupled with each region’s comparative advantages and The Offshore Wind Capital Grants Scheme has provided a total of
innovations, highlighted the conference’s objectives of promoting £117 million to fund the early development of offshore wind farms. On
the continued innovation of renewable energy sources through December 10, 2007 Energy Secretary John Hutton announced plans
international cooperation. Climate change is a global issue that to expand Britain’s offshore wind power generation. The draft plan
requires a global solution. As a result of geographical and could allow companies to produce up to 33 GWs of wind energy 6 .
innovative core competencies, Miami is poised to position itself at
the epicentre of the global renewable energy market. Coupled with Florida ranks third nationally in total energy consumption, with 8.6
London’s determined policies to reduce global warming, the UK million gallons of gasoline per annum. Currently, there are countless
and Florida promise to lead the movement to seek and discover the solar energy businesses, separated by solar product type such as
newest and cleanest energy technologies. solar electric power systems, solar water heating systems and
photovoltaic (PV) modules; 7 biomass energy businesses; 2
The UK believes that climate change is the greatest long-term renewable energy investment and financial services; and 21 wind
challenge facing the world today 1. Further, recognizing that the energy businesses. Juno Beach, Florida based Florida Power &
UK is facing a decline in indigenous energy supplies and is Light (FPL), the principal subsidiary of FPL Group, Inc., operates
transitioning towards becoming a net energy importer, London the largest wind farm in the world. Horse Hollow Wind Energy in
intends to produce 20 percent of electricity through renewable Texas runs 421 wind turbines and has a capacity of 735 megawatts
energies by 2020. Additionally, the UK requires that electric (MW).
companies obtain “Renewables Obligation Certificates (ROCs),
meaning that renewable energy companies have two sources of HM Consul-General Keith Allan welcomed the conference
income in high demand---the sale of energy and the sale of ROCs 2. participants and recognized the efforts and leadership of Florida
Moreover, under the Renewable Transport Obligation (RTFO), the Governor Charlie Crist and Miami Mayor Manny Diaz in addressing
UK has established a goal whereby 5 percent of total transport fuel climate change. Mr Allan also paid tribute to recent developments in
must be from renewable sources 3. In 2005, transport accounted for Florida, such as Citrus Energy’s plan to convert citrus waste into
around a quarter of UK energy consumption and for 27 percent of biomass feedstock for ethanol production, and FPL ’s plan to
greenhouse gases (GHGs) 4. develop a massive solar plant in the state. Further, Mr Allan noted
that 75 percent of all CO2 emissions are generated by the largest
At the “Serve to Preserve Florida Summit on Global Climate cities in the world, and commended London’s green efforts leading
Change,” held on 23 July, 2007, Florida Governor Charlie Crist up to the 2012 Summer Olympic Games and beyond.
and UK Special Representative for climate change, John Ashton,
signed a partnership to tackle global climate change. The state will Representing Florida Governor Charlie Crist, Florida Secretary for
exchange delegations with the UK and Germany to share public Environmental Protection and Chairman for the Governor’s Action
policy experiences, to exchange science and technology Team on Climate Change, Michael W. Sole, praised Florida’s efforts
concerning renewable energy sources and energy efficiency, and to to address the issue with actions rather than words 7. He stressed the
discuss and promote initiatives that broaden the Kyoto Protocol. importance of international cooperation in dealing with
environmental challenges, as well as the value of learning from
experience. In that regard, he credited the UK, thanked Mr Allan, and
1
HM GOVERNMENT, CLIMATE CHANGE: THE UK
PROGRAMME 2006, available at
www.defra.gov.uk/ENVIRONMENT/climatechange/
2
“Why wind power in the UK? Wind Energy Fact Sheet 2.
www.berr.gov.uk/files/file17775.pdf
3 5
“All cars will run on “biofuel mix by 2010” By Ben Webster. “UK wind power reaches milestone” BBC News. 9 Feb. 2007.
Nov. 2005. The Times Online. http://news.bbc.co.uk/2/hi/science/nature/6344215.stm
6
http://www.timesonline.co.uk/tol/news/article585544.ece “UK govt unveils plans to expand offshore wind energy.”
4
Banister, David. “Reducing energy use in UK transport.” www.forbes.com/markets/feeds/afx/2007/12/10/afx4422734.html
7
Transport Studies Unit Oxford University Centre for the Florida Department of Environmental Protection’s Action Team
Environment. Sep. 2007. reports can be found at http://www.dep.state.fl.us/climatechange

3. REPORT
commended the knowledge gained from discussing cap-and-trade
in the UK and the EU, along with carbon markets, with Head of
UK International Emissions Trading, Jill Duggan, as the state
contemplates adopting a European-style carbon trading system in
conjunction with California and other proactive states. Further,
Mr Sole cited examples of how Florida is proactively addressing
global warming based on Governor Crist ’s executive orders: more
energy efficient new buildings; a concerted plan to incrementally
reduce GHGs by 2025; a more fuel-efficient government vehicle
fleet; the installing of solar panels at the Governor’s Mansion;
and, pending expected Environmental Protection Agency (EPA)
approval, the adoption of vehicle emission standards. Addressing
the potential impact of renewable energies on Florida’s economy From left to right: HM Consul-General Keith Allan, Director-General
and businesses, Mr Sole made a comparison to the dotcom era, UK Trade & Investment USA, Sir Allan Collins, Miami Mayor Manny Diaz,
calling this a “Second Industrial Revolution,” whilst claiming and Florida Energy Secretary Michael W. Sole.
that there will be no shortage of profitable ventures for those with
vision and an entrepreneurial spirit. Matthew Partridge, Senior Biofuels Consultant for Wood Mackenzie
Inc. addressed concerns surrounding biofuels and discussed key
Miami Mayor Manny Diaz thanked Governor Crist and the drivers for their development. His presentation, “Biofuels: Energy
event’s sponsors and called for greater action on global warming Security, Climate Risk and Oil & Gas Markets,” began with a
by Washington. Recognizing that the issue must also be discussion of whether biofuels are a “panacea” or a “Pandora’s
addressed at the city-level, Mayor Diaz detailed how Miami has box.” Key benefits of biofuels include lower GHG emissions;
taken the lead as a green city of the future. Miami is one of the biodegradable and non-toxic qualities; and improved vehicle
original signators of the “U.S. Mayor’s Climate Protection performance. Key concerns include water scarcity; competition for
Agreement 8, and has adopted a Climate Protection Plan 9, which food; deforestation; and toxic-run off from agriculture. Despite these
calls for greener transportation and infrastructure for the immediate concerns, key drivers, such as the environment, tenuous energy
future. The city is replacing 200 fleet vehicles with flex-fuel supply security, and government policies are pushing biofuels
models and now requires all new buildings over 50,000 sq ft to be forward as an alternative to fossil fuels. Mr Partridge noted that due
LEED certified at the silver level 10. The presentation concluded to current infrastructure, the US is expected to demand substantially
with a call for individuals to assist governments by taking more ethanol whilst Europe will continue to demand biodiesel.
initiatives to reduce carbon emissions. Further, Mr. Partridge argued that the best strategy for bringing
biofuels to market is through small, incremental steps.
Sir Alan Collins, Director-General for UK Trade & Investment in
the USA reaffirmed the UK’s commitment to combat climate The panel on Trends in Next Generation Biofuels, examined
change and to lead by example. Citing the Stern Review 11, Sir industrial biotechnology trends and new research developments in
Alan analyzed how the debate over climate change has biofuels and low carbon power generation. Sean O’Hanlon,
transitioned from science to policy and, now, to investment. The Executive Director of the American Biofuels Council, chaired the
Stern Review, a report conducted by economist Sir Nicholas Stern panel. He cautioned that the transition to biofuels will not be
for the British government, concluded that GHGs could be smooth and that there is no single biofuel that will meet all energy
reduced cost-effectively and that the price of inaction was far too needs. The speaker suggested that the closest prospect could be
great to justify. Further, the Stern Review concluded that biobutanol, which is 13.5 times less evaporative than gasoline and
enormous business opportunities will be generated out of six times less evaporative than ethanol, and can be transported on
tackling the issue. current US infrastructure. The panel concluded overwhelmingly that
there is a great need to identify as many Second-generation biofuels
Noting that the UK has a promising track record of reducing as possible while allowing market forces to dictate the winners.
harmful emission whilst stimulating economic growth and that the
2006 Florida Energy Act is promoting capital investment and Raul Parisi, Vice President for Dynamotive Latinoamerica, briefly
accelerating utilization of renewable energies in the state, Sir introduced and described “BioOil,” which the company claims is
Alan called for entrepreneurs and businesses on both sides of the the only Second-generation industrial biofuel in the market.
Atlantic to forge partnerships and relationships in order to meet According to his presentation, “Industrial Fuels from Biomass:
the challenges posed by global warming. Redefining the Energy Matrix,” BioOil is produced by converting
organic residues such as forest and agricultural wastes through a
pyrolysis process—the decomposition of residue caused by a
thermal reaction. BioOil can currently be used for power and heat
8
For more information, please visit: generation and is expected to be used for transportation in the near
http://www.seattle.gov/mayor/climate future. Dynamotive Energy Systems is headquartered in Vancouver,
9
www.miamigov.com/cms/mayor/4060.asp Canada with offices in the UK, the US and Argentina.
10
For more information, please visit:
http://www.miamigov.com/msi/pages/GreenBuildings/default.asp Dr Jose R. Moreira, Senior Advisor for MGM International,
11
HM TREASURY, STERN REVIEW ON THE ECONOMICS discussed the challenges in bringing Second-generation biofuels to
OF CLIMATE CHANGE (2007), market. His presentation began with a discussion of First-
available at http://www.sternreview.org.uk

4. biobutanol’s potential as a a sustainable and environmentally
REPORT friendly biofuel that is expected to become a leading road
transportation solution within 5-10 years 12. Biobutanol has a
generation successes such as sugarcane ethanol usage in Brazil higher energy density than ethanol, and is also less corrosive, less
and corn ethanol in the US. Developing countries, however, are volatile, and closer to gasoline and diesel. Further, it more closely
largely unable to compete using feedstock crops. Additionally, fits existing fuel infrastructure and can be blended with gasoline,
agricultural prices have proven to be historically volatile. diesel as well as ethanol and biodiesel. Cost reduction challenges
Despite solid gains made by First-generation biofuels, demand for facing biobutanol’s ascent to market include reducing feedstock
fossil fuels is up. Second-generation sources are needed to costs and improving fermentation efficiency. Dr. Green concluded
compensate for the competitive shortcomings of the present array that the winners in the current attractive biofuel investment climate
of market-ready biofuels. will be those companies that can fill a supply chain in collaboration
and partnership.
The market cost of Second-generation biofuels is expected to be
one of the bigger challenges facing the sector. It is unlikely that The next panellist, Dr Larry Lemanski, Vice President for Research at
prices will be below those for sugarcane and corn ethanol. Dr Florida Atlantic University (FAU), presented on “Florida’s Ocean
Moreira concluded by reaffirming that there is room for, and a Energy.” Oceans, which cover more than 70 per cent of the earth, are
necessity for, all biofuels in order to tackle climate change. the largest and best solar collector on the planet and absorb the
energy equivalent of 250 billion barrels of oil each day. Florida is
The next panellist, David Stewart, CEO of Florida-based Citrus the closest major load centre to the Gulf Stream, the most energy
Energy, praised the efforts to connect US businesses with dense ocean current with a power potential equivalent to 4-8
European experience in addressing climate challenges. Further, he nuclear power plants (4-8 GWs). Dr Lemanski noted that ocean
commended the enthusiasm shown by Florida’s businesses and thermal energy holds great potential for Florida’s large coastal
the support provided by the state. His presentation, “Live Green population as it can help reduce energy consumption through cold
Go Orange: Producing ethanol and co-products from citrus water based air conditioning and can be used to generate large
residue,” detailed how Citrus Energy has been working on the volumes of potable water.
development and commercialization of citrus waste from Florida’s
citrus industry as a biomass feedstock for ethanol production. The Within 10 years, ocean energy could begin to be provided in
company has also partnered with FPL Energy to build a $10 commercially meaningful amounts.. Within 20 years, ocean-
million commercial scale citrus waste-ethanol plant. Mr Stewart generated electricity could significantly offset and help replace
added that he envisioned the potential development of a dozen fossil generation. Moreover, ocean energy could enhance the state’s
similar plants in Florida attached to factories that produce citrus energy independence by replacing imported hydrocarbons with
juices. Eventually, citrus peel ethanol could replace 1 percent of Florida’s ocean current energy while establishing a vibrant new
Florida’s fuel consumption. industry for Florida and the nation. Ocean energy has the potential
to eliminate tens of millions of metric tons of CO2 gas production
Recognizing that citrus waste ethanol is a niche rather than a per annum. With the UK firmly entrenched as a world leader in tidal
wide-ranging solution, Mr Stewart reaffirmed the panel’s belief and wave power research, and in the spirit of partnership and
that there are no silver bullets in solving our energy needs cooperation, Dr Lemanski led a delegation to the UK in late October
through biofuels, and that all options are welcomed. Comparing 2007 to meet with UK counterparts.
the current state of biofuels to the rise of the computer industry,
Mr Stewart called for more commercially viable alternatives to Cindy Tindell, Executive Director of Development for FPL Energy,
come to market. presented on why “We need more renewable energy.” With most of
the state’s population living within 10 miles of the 1,200-mile
Sam Shepherd, Director of Eco-Solids International, an Anglo- coastline, Florida faces a grave challenge to reduce its carbon
American technology development company, discussed the footprint and develop renewable energies to offset global warming.
prospects for algae oil. All algae plants are carbon neutral or While precipitous and rash actions would be extremely costly, there
negative. Algae production captures CO2 and converts it into oil are technologies that are proven, tested, and reliable. Ms Tindell
for bio-diesel feedstock. Further, algae can produce all the oil recounted FPL Group’s various investments in 18 states, ranging
needs of the US in a non-arable area the size of Maryland. Whilst from wind to solar to renewable energies, such as Citrus Energy’s
solid gains are being made, currently, the high cost of production ethanol plant. Currently, only a negligible percentage of ethanol is
has prevented algae oil from entering the marketplace. used as transport fuel in Florida. Statewide adoption will only occur
if and when consumers, along with industry and business suppliers,
The next panel, Power Generation from Renewable Sources, demand it.
explored broad trends in emerging technology areas such as
marine, wind, photovoltaic, solar and clean coal energy. The panel
was chaired by David Day, Director of Technology Licensing for
the University of Florida. Mr Day announced that with the
world’s fuel usage on the cusp of change, tomorrow’s challenges
can be met with technology being developed today. In addition,
he stressed that profitable renewable fuels can be produced from
biomass. The University of Florida has a working profitable
cellulosic plant in Japan that converts waste wood from
deconstruction of homes into ethanol.
12
For more on biobutanol and the BP-DuPont partnership to
Dr Edward Green, CEO of UK-based Green BioLogics, commercialize biobutanol, please refer to: Hargreaves, Steve.
highlighted the attributes of biobutanol in his presentation “Re- “Better than ethanol.” CNNMoney.com. Apr. 3, 2007.
commercialising the butanol fermentation.” Dr Green reaffirmed www.money.cnn.com/2007/04/02/news/economy/biobutanol/index.
htm

5. tax incentives for clean energy. A key concept is whether carbon-
reducing credits can be considered “additional.” Additional,
REPORT determines whether carbon credits are the main motivation behind a
given project. The Executive Board in Kyoto also interpreted
renewable energies as an additionality.
Dr David Hunter, Director of US Policy for the International
Emissions Trading Association, IETA presented on the prognosis of
the American Congress adopting cap-and-trade legislation.
Recognizing that GHG trading schemes provide the most efficient
means of achieving environmental objectives, that long-term policy
certainty is necessary to achieve cost-effective reductions, and that
the broad use of offsets and linkages to a global carbon market are
the best ways to contain costs, Dr Hunter expressed optimism that
cap-and-trade legislation would eventually be approved by
Congress. On December 6, 2007 the Senate Environmental and
Citrus Energy’s Mark Stewart with FPL’s Publics Work committee passed America’s Climate Security Act of
Cindy Tindell. 2007, which would create a cap-and-trade system for carbon
emissions and mandate a 70 percent cut in GHG pollution by
2050 13.
Michael O’Sullivan, Senior Vice President of FPL Group,
discussed the current state of wind and solar projects in the US. The next panellist, Dr Alex Rau, Principal for the Climate Wedge and
Whilst FPL Group understands that wind is not a silver bullet, Cheyne Carbon Fund, discussed the opportunities presented by
investment in the sector has increased steadily, and particularly GHG emission reduction. Noting that a cap-and-trade scheme
so during the 2007 calendar year. The 2007 US wind market is essentially creates property rights for emitting carbon into the
expected to approach 4,000 MW capacity, equalling $6-8 billion atmosphere, Dr Rau mentioned that any investment and/or strategy
in invested capital. Currently FPL Group’s wind investment total which leads to manufactured, verifiable reduction in GHG emissions
nearly $6 billion. Despite all the investment gains, only 0.6 has an intrinsic value in the form of “carbon assets.” There are four
percent of US energy comes from wind. general types of carbon assets: allowances; carbon credits; project
finance; and technology. Allowances refer to the reductions in
One of the fastest growing trends in the wind energy sector, overall emissions of a regulated entity under a carbon cap, whilst
particularly in the Northwest and Midwest US, is rate-based credits refer to reductions from specific projects.
wind, where utilities build wind farms and operate them in their
own service territories without external contracting. Further, Mr Moreover, Dr Rau highlighted how the GHG credit market has
O’Sullivan stated that solar energy does not currently enjoy the proven to be the main international driver for carbon reduction in
popularity of wind energy because it is costlier and more time developing countries. The Clean Development Mechanism (CDM),
consuming to initiate a given project. For instance, a modest an arrangement under the Kyoto Protocol, allows industrialised
output 250 MW solar facility’s building cost can range from countries to invest in projects that reduce emissions in developing
$700-900 million. Further, solar facilities require a far more countries as an alternative to more expensive emission reductions in
complicated supply chain that can take years to consolidate. their own countries. Further, carbon reduction projects worldwide
Nevertheless, FPL Group runs and operates a 310 MW solar have enjoyed a rapid growth in investment fund allocation,
facility in the American Mojave Desert, which is the largest solar particularly since the 2005 inception of the EU Emissions Trading
installation in the world. Mr O’Sullivan concluded his Scheme.
presentation by reiterating FPL ’s mission to provide low-cost
power in Florida and to make investments outside the state that Next, Ted Michaels, President of Integrated Waste Services
make economic sense—citing this as one of the main reasons why presented on “Waste-to-energy: converting garbage into clean,
FPL is not bullish on photovoltaic (PV), a solar power green power and reducing greenhouse gas emissions.” Currently,
technology that uses solar cells to convert sunlight directly into most municipal waste is buried in landfills around the country.
electricity. Whilst landfill gas can be captured and used to produce electricity,
modern incineration technology is a more productive method. Mr
Following Mr O’Sullivan’s discussion, the next panel addressed Michaels noted that for every ton of municipal waste, it is possible
Greenhouse Gas Mitigation Strategies: Links to Policies and to generate 20kw hours of electricity from landfill, compared to
Markets. The speakers offered insights into policy and regulatory 520kw hours from a waste energy plant. Further, one ton of waste
frameworks and their effects as they spur innovation and burned through a waste energy plant saves one ton of C02
technology adoption. John Mackle, Chief Financial Officer for emissions. The waste disposal sector burns 29 million tons of trash
MGM International, chaired the panel and discussed the merits of per annum.
a cap-and-trade scheme that allows for market flexibilities, rather
than the movement of capital through political means, to promote Mr Michaels highlighted how waste-to-energy (WTE) provides a
clean air. Carbon emissions trading has emerged as a profitable net GHG benefit. WTE avoids harmful methane emissions from
endeavour for companies, investors, and industries and is a landfills, avoids CO2 emissions from fossil fuel combustion, and
necessary step for national and state governments as well as the avoids CO2 emissions from metals recycling. The only downside to
wider international community. As a financial commodity, carbon WTE is that, compared to landfill waste disposal, plants are
emissions represent a growing $30 million international market.
Further, Mr Mackle noted how the Kyoto Protocol is a good
example of a working market mechanism. A major issue is how
such mechanisms will work in the US given current substantial 13
http://www.govtrack.us/congress/bill.xpd?bill=s110-2191

6. Next, Matt Cole, partner with Northbay Equity Partners, presented
REPORT on the characteristics of renewable energy projects that potentially
attract equity investors. Mr Cole suggested that investors generally
expensive to build. The cost is mitigated, however, once carbon favour banking projects with management teams with relevant
emissions are factored in. industry experience and a strong track record in the industry.
Further, equity investors look for companies with proprietary
With 11 WTE plants, Florida has more than any other state. At competitive advantages, such as technology, that allow renewable
present, there are 87 such plants total in the U.S. 30 percent of all energy to become more cost efficient. Further, Mr Cole noted the
waste in the U.S. is recycled, 60 percent is sent to landfills, and 8 importance of a business plan that focuses on exit prospects by
percent goes to waste energy. identifying the terminal value of the project.
Ian Waller, Managing Director with FiveBarGate Consultants Regulatory risks, such tariffs and subsidies to local producers, are
Limited, presented on the UK’s Renewables Transport Fuel common challenges for renewable energy in many markets. Building
Obligations programme (RTFO). Recognizing that there are a business plan that is highly dependent on a regulatory-driven
different cost profiles to saving carbon in different sectors, the UK profit stream, places the project at the whim of government volatility.
Government has implemented individual sector-specific Mr Cole also warned against swings in commodity prices and
mechanisms similar to cap-and-trade schemes. RTFO obliges fuel explained that biofuels are subject to double exposure as a result of
suppliers to include a proportion of biofuels within their oil and energy prices and agricultural cycles. Nevertheless, many
supplies. Certificates are then issued to suppliers below the cap, European and North American mega-fund firms have been willing to
and can then be traded to those over the cap. Thus, a trading commit capital in partnership with local investors, for renewable
market for transport fuel certificates is established. RTFO also energy projects in riskier markets such as Latin America. Per Mr
requires suppliers to report on the carbon savings of the fuel as Cole’s recollection, around USD$800 million have been invested in
well as the sustainability of the fuel. Mr Waller also discussed the Brazilian renewable energy projects in the past 18 months.
likelihood that the UK will move away from target volume to
carbon-based caps by 2010 14. In his presentation “Capitalizing on Green Energy Opportunities,”
Rodrigo Cordova, President and CEO of Canada-Chile Investments
The fourth panel presented on clean energy finance trends and Inc., provided tips on dealing with investors and developers of
examined the characteristics of viable clean energy projects and renewable energy projects. Echoing the panel’s belief that
future growth opportunities. Chris Walker, US Director for The establishing strong local relationships is of paramount importance
Climate Group chaired the panel and highlighted Florida’s rapid for foreign investors and developers wishing to do business in
ascension as a top player in the global clean energy economy. Mr Latin America, Mr Cordova highlighted how higher energy prices
Walker opined that Florida has moved faster on the issue in the have promoted investment in new projects in the region. Whilst
last six months than the EU has in the past seven years. Further, noting that today’s market is not keen on paying higher energy
Mr Walker explained that, although investment in clean energy prices to preserve the environment, Mr Cordova explained that the
has increased dramatically worldwide, swift acceleration, trend is changing, particularly in Latin America. The panel generally
particularly from the financial community, is needed to meet the agreed that Latin America is some five years behind Europe and
explosive demand and opportunities available today. Further North America in renewable energy development, and that
alluding to the idea that the clean energy economy is a successor narrowing this gap is an area where companies from the UK and
to the IT industry of the 1990s, Mr Walker showed the large Florida can capitalize,
number of prominent Silicon Valley players who have invested in
green technology companies. Presenting from an automaker’s perspective, Luis M. Kolster,
Director of Public Policy for General Motors Latin America, Africa
Alain Castro, Partner with Uruguay-based Energias Renovables and Middle East, discussed how GM is counting on ethanol to
del Sur provided a practitioner’s perspective on investing and reduce dependence on foreign oil and improve the environment. In
developing renewable energy projects in Latin America. Whilst “ E thanol Infrastructure, Partnering and Marketing Initiatives,” Mr
the region was not as proactive as Europe in addressing clean Kolster explained that GM believes that E85 ethanol has the
energy issues, investment has picked up recently. Mr Castro potential to reduce oil imports if 50 percent of all US vehicles were
showcased his company’s investment in a close-loop ethanol and flex-fuel. To that end, GM has around 2.5 million flex-fuel vehicles
electricity renewable energy plant in Uruguay that is likely to be on US roads and is planning to expand to 50 percent of total
the first integrated renewable energy project in Latin America. The production by 2012.
plant’s projected output is 150 million litres of ethanol and 10
MW of renewable energy. Although the auto industry has doubled fuel economy in the last 30
years, demand for oil has also increased yearly. GM believes that
Mr Castro also presented on some of the challenges faced in widespread adoption of ethanol will reduce GHG emissions by 20
establishing a renewable energy project in the region. Calling for percent for grain-based ethanol and 80 percent for biomass ethanol
a consistent set of laws that provide clear incentives for renewable that could be produced in Florida. Applying lessons learned from
energy generators, accelerated permitting, and a simpler, faster Brazil’s progressive ethanol market, Mr Kolster explained that
process for obtaining carbon credits, Mr Castro nevertheless successful producers need to have customer acceptance, competitive
expressed great optimism for the sector-related equity investment pricing, and availability to consumers through infrastructure.
in Latin America.
Juan Pablo Bonilla, Coordinator for the InterAmerican Development
14
Per Mr Waller’s example: this shift would mean that
Bank’s (IDB) Sustainable Energy and Climate Change Initiative
companies would be issued certificates based on their carbon (SECCI) introduced the bank-wide contribution to meet Latin
savings rather than by their use of a standard percentage of America’s and the Caribbean’s request for an expanded role in
biofuels (i.e., 20% by 2020). sustainable energy projects and climate change issues. The region

7. bringing products to market will create exciting opportunities for
REPORT both investors and producers.
faces increasing demand for energy, along with grave challenges Throughout the conference, the presenters expressed confidence in
over the rising cost of energy and supply reliability. Mr Bonilla market forces. The conference demonstrated that market-sensible
explained that SECCI intends to support the region in their quest developments are being made and that profitable investment
to find economically and environmentally sound energy solutions opportunities exist. As demand for biofuels and clean energy
by providing loans that stimulate and promote the development solutions continues to rise in the UK, Florida, and the world, UK
and use of renewable energy sources, energy efficiency Trade & Investment, The Greater Miami Chamber of Commerce, and
technologies and practices, carbon finance, and climate change Enterprise Florida will help encourage the market to strengthen and
adoption strategies aimed at reducing the region’s climate mature and will continue to strive to identify best prospect
vulnerability. Building on the panel’s position that regional solutions.
governments may impede project development, one of SECCI’s
priorities is to minimize policy barriers by integrating policy
reform with targeted policy and project financing for market
transformation. SECCI is funded through a specific IDB SECCI
fund and a multi-donor SECCI fund, for which the UK is the first
contributor.
With vast experience in promoting South Florida’s role as the
gateway to the Americas both nationally and internationally,
Jorge L. Arrizurieta, Chair of the International Policy Group and
Governmental Consultant at Akerman Senterfitt, presented on
Florida’s role in the development of biofuels for the hemisphere
and beyond. Stressing Florida’s geographic advantage and other
competencies, as well as the solid UK-Florida commercial
relationship, Mr Arrizurieta emphasized the state’s unique
opportunity to be at the epicentre of biofuels research and
development.
Akerman-Senterfitt’s Jorge Arrizurieta.
Close in proximity, culture, and commerce with countries in Latin
America and the Caribbean, South Florida will play a pivotal role
in meeting the region’s evolving energy needs. In that spirit, Mr
Arrizurieta mentioned the struggle to ratify a US-Brazil Free Trade
Agreement and the 54 cents-a-gallon tariff on the country’s
ethanol exports to the US, as policies that need to give way to
deeper cooperation.
Whilst ethanol can play a key part in reducing demand for fossil
fuels, the amount that would be needed to replace total
consumption is far greater than Florida, or the country, can supply
due to the economic reality of highest and best use of land. The
challenge, Mr Arrizurieta explained, is for suppliers and
consumers to organize and motivate an investment-friendly
economic climate. Further, Mr Arrizurieta informed that, unless
biofuels become a commodity, they will always be subject to
external-factor volatilities. Unlocking the cellulosic code and