A few years ago, my brother sent me an email link to a couple hundred acres of land in the middle of Nowhere, Nevada. Seriously, it was the ugliest land in the world with no development—no lines, no fences, no roads? I told him that there was a reason the land there was selling for such a cheap price, and while I couldn’t put my finger it, I’m sure there was a real good one (like aliens or nuclear waste dumping). He said, “don’t be dumb, dude, land’s land, there’s always value in it.” Well, not really, but I’m starting to think this land might have been a good deal. Here’s why…
EnviroMission is on the verge—it’s tested and ready to go—of breaking ground on the world’s first commercial solar tower power station. Todd Woody from Business 2.0, did an awesome article on this technology. It’s so serious that a half-mile tall solar tower is in planning for China and EnviroMission is hunting for land in the Southwestern United States.
Here are some of the pluses: (1) there’s no fuel (no exploration, transport, disposal, smog, or landscaping costs), (2) you can put it in the desert and it will be perfect—no one will live out there anyway, (3) the primary cost is in the initial development as operating costs are minimal, (4) it produces enough energy to power 100,000 homes sans pollution or planet-warming gases, (5) as compared to wind farms, the sun is more consistent (in the right locations), and (6) a large version of the tower could produce energy for the same cost (or better) as conventional power plants. Oh yeah, it looks good, too.
The cool thing about this technology is its potential to be disruptive. When you consider the costs of using coal, you can’t just think in terms of the purchase price (if you’re a commercial entity, the government, or public person). Why? Because there are hidden costs associated with things like coal: smog, mining deaths/accidents/health concerns, and transportation costs. With China and Australia on board with the solar tower, the global supply for other varieties of energy increases. They stop using coal as much as before. Ex: if China uses the solar tower instead of coal, then there’s more coal for other people to use. Coal will then get cheaper to use for those people that can’t use/afford the solar tower (or other alternative energy). My economics might be a little jacked, but I still think this will be an interesting business to follow.