International Business Brief

The mining, drilling, refining, shipping, use and disposal of fossil fuel like coal, oil and natural gas, to make electricity pollutes the world’s air, consumes and pollutes water, hurts plants and animal life, creates toxic wastes and causes global warming. 

Air pollution aggravates asthma, the number one children’s health problem. Air pollution also causes disease and even premature death among vulnerable populations, including children, the elderly, and people with lung disease. A 1996 analysis by the Natural Resources Defense Council of studies by Harvard Medical School suggests that small particles in the air may be responsible for as many as 64,000 deaths each year from heart and lung disease. (UCS, 1999) 

The bi-products of fossil fuels, Greenhouse gases, are the cause of several major problems: 

• Sulfur oxides, is the main cause of acid rain which causes lakes and rivers to become too acidic to accommodate plant and animal life. 
• Nitrogen Oxide and ozone can irate the lungs, cause bronchitis and pneumonia, and decrease resistance to respiratory infections. 
• Carbon Dioxide a main contributor to global warming traps heat in the earth’s atmosphere. 
• Air toxic-metals, mercury, arsenic, and lead can accumulate in the fatty tissue of animals and humans causing severe health problems like mental retardation, nervous system damage, and developmental disorders. 
• Carbon monoxide, hydrocarbons, and large particles: dust, soot, smoke, and other suspended matter as well as small particles have been linked to serious health problems like chronic bronchitis, aggravated asthma and premature death. 

In a typical coal plant these dangerous chemicals and irritants can be releases in huge quantities: 

A Typical Coal Plant  

A typical 500-megawatt coal plant produces 3.5 billion kilowatt hours per year – enough to power a city of about 140,000 people. 

It burns 1.4 million tons of coal (the equivalent of 40 train cars of coal each day) and uses 2.2 billion gallons of water each year. In an average year, this one plant also generates the following: 

• 10,000 tons of sulfur dioxide 
• 10,200 tons of nitrogen oxide, equivalent to half a million late-model cars 
• 3.7 million tons of carbon dioxide, equivalent to cutting down 100 million trees 
• 500 tons of small particles 
• 220 tons of hydrocarbons 
• 720 tons of carbon monoxide  
• 125,000 pounds of ash and 193,000 pounds of sludge from the smokestack scrubber 
• 170 pounds of mercury, 225 pounds of arsenic, 114 pounds of lead, 4 pounds of cadmium, and other toxic heavy metals 
• Trace amounts of uranium. 

Large particles (10 microns in diameter) are regulated by the clean air act. In 1997, the Environment Protection Agency published a new rule limiting emissions of fine particles (2.5 microns). States have until 2005 to 2008 to submit plans to the EPA for meeting the standard, and another 12 years to actually comply. (UCS, 1999) 

Even with these new standards, the amounts allowed by the EPA can still cause irreversible damage. Also the lower amounts can even still cause major health problems. With the clear evidence of global warming and the mounting environmental and health problems associated with the use of fossil fuels, along with its rapidly declining availability it is clear that a shift needs to be made towards renewable energy resources such as wind power. Renewable energy resources could provide many immediate environmental benefits by avoiding the mass pollution caused by renewable resources. However the greatest benefit is the economical benefit. 

Wind energy is a booming international business. Global sales of wind turbines reach US$1.5 billion in 1997. (“Wind energy- A global market”, 2006) Since wind powers birth in 1891 the production of wind turbines has become Denmark’s fourth largest export commodity. 

Wind energy has expanded globally: in Europe, seven million people now get their electricity from the wind. (“Wind energy- A global market”, 2006) 

Government regulations have also helped the global expansion of renewable energy resources. Many countries have adopted reduction plans calling for 10% power production from renewable energy resources by 2020. However the governments have done little to aid the process, other than offer small tax incentives and rebates that have depended on the availability of government funds. 

With the clear threat that fossil fuels bring and the lack of commitment from the government, this could spell global disaster, especially if civilians don’t want to step up and make a change. With the clear benefits of wind power: A typical 600 kilowatt wind turbine can produce up to two million units of electricity in a year. This is the equivalent to the annual power consumption of 400 households. (“World beaters- the Danish wind industry”, 2006) With little to no pollution or other harmful risks, opposed to the hundreds, thousands, millions and even billions of tons of chemical waste and harmful risks associated with fossil fuels. 

One civilian engineering company from Germany, named Siemens, has tried to address the issue of renewable energy resources. For the last 18 years Siemens has been working a “niche” marketing plan which targets the offshore wind market. Siemens is No. 1 in the offshore market: with over 800 megawatts of installed capacity and an order backlog of more than three gigawatts. (“Energy Sector”, 2010) The company focuses the production and use of their wind turbines and related gear for use offshore rather than on.  

Siemens is currently sixth place in the overall wind market, however with their offshore “niche” they account for 7% of the market. With Siemens new innovations, that are revolutionizing the offshore market it is one of the fastest growing companies in the wind industry. With new innovations such as: a floating platform for use in deeper water and a direct-drive system, which will reduce the number of moving parts in the turbine making them more reliable for offshore use Siemens hopes to become the No. 3 producer of turbines globally by 2012. 

In the past year Siemens has expanded to the United States were they hope to find a huge market for their turbines because all of the United States wind energy is currently onshore. With new and expanding partnerships/co-operations Siemens is a prime example of the economic benefits that can be reached through wind power and other renewable energy resources. Siemens employees 428,000 people in nearly 190 countries, 295,000 people are employed by Siemens outside of Germany. And as an added testament to Siemens commitment to the advancement of renewable energy resources 74,600 new employees were hired in fiscal 2008.