The Upside of the Crisis

The financial crisis has resulted in a wave of business creativity and innovation. Many businesses have turned to implementing new green technology solutions as a way of reducing costs.

Many big corporations suffer from a lack of innovation due to their size. Like the proverbial captain of an oil tanker trying to change direction, they can take ages to respond. It’s not just a question of developing new products, it’s also a matter of marketing and making them commercially viable.

That remains one of the challenges faced by companies involved in the latest technological advances, such as genomic medicine and renewable energy. While larger companies have the advantage of greater resources, both in terms of obtaining outside capital as well as in-house skills, smaller businesses can be more nimble and seize upon opportunities more quickly.

Small businesses, who year after year look to cut costs in order to boost profits, have, for example, found a niche in the emerging green economy. Large retailers, car companies and national airlines have also come around and made significant inroads into their carbon footprints.

Below is a list of some of the best performing and most innovative small and large businesses. 

[Intelligent trash can]

BigBelly Solar is a smart trash can that uses the sun’s energy to compact garbage, cutting the need for trash collection trips by up to 80 percent and leading to savings in time, money and fuel while also reducing air and noise pollution.

The capacity to compress its own contents allows this green trash can to hold the volume of five traditional garbage cans. A built-in GPS and wireless monitoring system also alerts operating staff when the trash can is full. With all this, BigBelly Solars are still about the same size as traditional public bins; however, they do weigh in at a hefty 300 pounds.

Created by inventor Jim Poss, BigBelly Solars are intended for large-scale commercial use. The retail price for one unit is $3,995, but the savings it can generate are in the millions of dollars—good news for companies and governments looking to tighten their belts.

“Last year we sold 500 BigBelly Solars to the city of Philadelphia, which will help them to save $13 million over the next 10 years,” Richard Kenelly, the company’s vice president of marketing, says, adding the savings should cover for the initial investment in one to three years if the equipment is paid for upfront.

The company already has a presence in 46 American cities and expects to launch in Latin America by 2010. Those not willing to make the commitment to buy can rent or lease, as does Boston University, which has a long-term rental agreement with distributor Waste Management. The leasing rate varies from $90 to $150 a month, depending on the number of units, maintenance and length of the lease.

[Carbon trade]

For most of us, reducing greenhouse gas emissions is limited to boycotting Styrofoam cups or possibly driving a hybrid vehicle. But for Marco Monroy, reducing the carbon footprints of developing countries is his business.

As president of Miami-based MGM International—a carbon trade company with operations in six countries—Monroy purchases carbon credits from organizations that implement green projects (such as Sao Domingo II Hydroelectric Project in Brazil’s Amazon) and then sells them to businesses in the developed world, so countries can meet their Kyoto Protocol requirements.

How does this work? Well, if an oil company exceeds its limit for allowable gas emissions, it buys a carbon credit to compensate for the pollutants it generated. The proceeds from the sale go to the developing country, helping it to grow its economy without resorting to dirty industries. Monroy charges a fee between 1 and 25 percent of revenue for brokering the sale (the price depends on the volume and project in question).

“Right now we have 250 projects that reduce gas emissions and 20 major clients,” says Monroy. “Among them are Satoil (a Norwegian petroleum company), Honeywell, Petrobras, General Electric and Banco Santander.”

Monroy says the global market for carbon trading already reaches $30 billion and he expects it to continue growing, helping him rake in even more revenue. He expects MGM to generate sales of more than $60 million in 2010 and 2011.

[From the Trash to the Store]

TerraCycle’s business model follows the age-old refrain: one person’s trash is another’s treasure. The company has collected millions of used bottles, cereal boxes and packages, and has converted these materials into shopping bags, backpacks, watches, and pencil pouches.

In all, TerraCycle offers more than 150 products to consumers via large retailers like Target, Wal-Mart, OfficeMax, Whole Foods, and The Home Depot. In 2009, the company reported $7.6 million in revenue and its projection for 2010 is double that. Its number of employees also increased to 75 in 2009 from 50 in 2008.

The success of its offerings has turned TerraCycle into one of the fastest growing manufacturers of ecological products. “In 2009, in the midst of the crisis, we have grown between 25 and 30 percent,” says Albe Zakes, a TerraCycle spokesperson. “In December of 2009 we expanded to Mexico and in January of 2010 we started our operations in Brazil.”

TerraCycle expects to begin operating in every country in Latin America by the end of 2011 and has plans to expand to Spain, Holland, Germany and France by the end of this year.

Part of the company’s success lies in the way it acquires raw materials. TerraCycle pays two cents per bottle or used package (about 35 different materials) it collects from more than 6,000 schools, churches and community centers. These materials are used to manufacture yogurt containers and packages from Kashi, Aveeno and Trident. These products, says Zakes, “have between 60 and 80 percent less of a carbon footprint impact compared to traditional products.”

[Hidden secrets]

The fast-paced technological revolution has not found a cure for cancer, but it has allowed companies to help people uncover the mysteries of their genetic make up—all 6 billion bits of information.

For $99,000, Knome Inc. allows consumers to obtain their entire genetic sequence, revealing hidden genetic diseases. For example, a customer could find out whether they carry a gene that predisposes them to a certain cancer, diabetes or other hereditary diseases. Better yet, if the person was diagnosed with cancer, Knome can give them information about the right treatment to pursue.

CEO Jorge Conde has continued to grow the company as Americans have become more interested in learning the secrets their bodies conceal. However, the price tag keeps those answers elusive for most. In its attempt to expand, Knome has developed a service called Knome Discovery, which is a larger scale version of their consumer services catering to biomedical research universities and clinics.

[Vegetable Vehicle]