Delivering Alternative Energy Solutions
The unprecedented concurrence of high oil prices, rising alarm about the impact of carbon-based fuels on global climate change, and heightened concern about the security of energy supplies has dramatically increased interest in alternative energies.
Stakeholders including energy companies, technology firms, governments, and venture capitalists are investing in the whole spectrum of alternatives to oil and coal—wind, solar, fuel cells, nuclear, hydrogen, tidal, geothermal, and biofuels, to name just a few. Working at the confluence of public policy, technology, and sustainability, Booz Allen Hamilton provides broad support to all sectors in the alternative energy field around the world.
"Booz Allen has always worked on the front lines on some of the most important issues facing society," says Viren Doshi, a senior vice president in Booz Allen's London office. "We ask, What are the world's toughest problems, and what are our clients doing to address them? Clean, renewable energy is one of these issues."
For instance, Booz Allen has supported BP on alternative energy strategies for a number of years, and played an important role in helping the company in its forays into biofuels, carbon sequestration for clean electricity generation, and solar power. BP is now a leading player in alternative energy. For example, BP is a manufacturer and marketer of photovoltaic (solar electric) modules and systems, with production facilities in the U.S., Spain, Australia, and India, and solar sales offices and authorized distributors around the world.
Nuclear energy is experiencing a renaissance, and Booz Allen has been working with a major utility client on developing a cost-effective process to build a new nuclear power plant. We also worked last year with the U.S. Enrichment Corporation (USEC), the United States' only indigenous source of enriched uranium used in commercial nuclear reactors for generating electric power. USEC was facing cash flow constraints due to rising energy costs, legacy contracts that were not indexed to energy costs, and capital infusion requirements necessary to design, build, and start up a new uranium enrichment facility. Booz Allen worked closely with USEC's senior executive team to develop a comprehensive strategy and change management program that identified the key variables and possible scenarios the team could use to maximize shareholder return.
Booz Allen addressed the future role of biofuels in a report called "A Biofuelled Future," prepared for the World Economic Forum Automotive Board of Governors. Our conclusion was that ethanol from corn can help reduce dependency on fossil fuels, but not enough, considering the amount of energy consumed in the making and distribution of the product. An alternative—and one that we are increasingly focusing on with clients—is cellulosic ethanol, in which common grasses are broken down into extremely efficient energy sources.
Our work in biofuels last year included an engagement in Brazil with Syngenta, a leading agribusiness company committed to sustainable agriculture, to assess opportunities for developing new solutions for the biofuels sector. "Brazil has the largest base of ethanol use in cars around the world, and it is the leading ethanol exporter worldwide given its low-cost sugarcane-based ethanol," says Ivan de Souza, a Booz Allen vice president in São Paulo.
Transit systems stand to be greatly affected by energy shifts, and Booz Allen is helping them deploy more environmentally sustainable technologies. One of the firm's more significant transit client engagements involves working with the Washington Metropolitan Area Transit Authority (WMATA) to create a proactive approach for meeting energy-related and environmental challenges. In addition to providing varied program management and engineering support in information technology, vehicle engineering, and smart-card technology, we are helping WMATA develop cleaner options for bus transportation, such as the use of compressed natural gas and hybrid gas/electric alternatives. We have also partnered with WMATA, commercial firms, and the federal government to propose programs to demonstrate the use of hydrogen fuel cell technology in public transit.
In the U.S., President George W. Bush outlined his Advanced Energy Initiative, an aggressive plan to reduce U.S. dependence on foreign oil and ensure a secure energy supply, in his 2006 State of the Union address. In response, the U.S. Department of Energy and the U.S. Department of Agriculture jointly sponsored the Advancing Renewable Energy Conference, which took place in October in St. Louis. The departments called on Booz Allen for its energy expertise, and to manage the entire conference.
"We oversaw everything from raising additional funding through corporate sponsorship to determining the agenda and scheduling speakers, which included President Bush," says Ken Saenz, a Booz Allen principal in McLean, Virginia. "This was the first joint conference these agencies had ever put on, and one of the most important outcomes was increased collaboration across government departments in addressing energy issues."
Around the world today, there is a growing awareness that alternative energy and energy independence are at the nexus of powerful developments in national security and global climate change. "Whether for the electricity grid or for oil supplies, the steps we need to take to improve security against terrorism and the steps we need to take to deal with global warming have much in common," says R. James Woolsey, a Booz Allen vice president based in McLean, and former director of central intelligence. "Taking a portfolio approach in dealing with both 'malevolent' and 'malignant' threats such as these is infinitely better than looking for a single all-resolving solution," says Woolsey.
story posted August 20, 2007
