Google GreenTech

I had a chance to have lunch with my old friend Bill Weihl, Google's GreenTech Tzar (prior Bill was CTO at Akamai). I asked Bill what Google brought to bear in this space (compared to the likes of Chevron for example) and got a remarkably good answer. He pointed out that much of the current alternative energy work is misdirected in the sense that it does nothing to diminish the use of coal for electric power which has unfortunately climate impact unless some magic clean coal solution can be found (don't bet the rent money on that). Coal power costs roughly $4/KWH. Alternative power (e.g. Wind, solar) fetches $10/KWH (driven by governmentally mandated use by power companies) so most of today's alternative energy is optimized to make $8/KWH power and sell it profitably for $10. Google is focusing on solutions that could possibly beat coal prices (taking the long term view). Oh, and as Bill points out, minimize your expectations for companies like Chevron and BP. They advertise their alternative efforts a lot but if you read a recent 10Q they are oil companies (period).