Googling energy

Google has been busy.

Not only does the company plan to leap from the Internet into the world of wireless - but also, according to the Wall Street Journal – it wants to get into alternative energy.

A quick thanks to Sui-Lee and my brother for pointing the story out to me.

Seems like the Sultan of Search plans to invest “hundreds of millions of dollars” to come up with clean energy production that will be cheaper than dirty dirty coal. Through investment, research, and actual plant building, the company hopes to create 1,000 megawatts of renewable energy.

Looks like there will be a stampede of alternative energy CEO’s and scientists flocking Mountain View, Calif., to get some of that sweet venture capital.

This situation brings up two interesting points.

The first is that for any significant environmental change to take place – real action, not just talk or bumper stickers – there needs to be a true economic incentive.

Google, I’m sure, is enjoying the good press about their green move, but co-founder Larry Page does not hide the fact that money is a main motivator. According to the Journal, “Mr. Page said the renewable-energy initiative, involving both the company itself and its philanthropic arm, wasn’t financially material to Google at this point but that he believed it would generate positive returns on Goggle’s investment over time.”

He has to say that, after all Google is now a public company, the Street usually does not like to see firms throwing millions of dollars to “crunchy causes.”

Google’s other co-founder Sergey Brin added that the company “will encourage its partners to license their technology for modest sums.” Looks like Google will be giving its clients the arm – if you want to do business with us, you’re going to be investing in renewable energy.

The second interesting point is that despite the pain caused by the current price of oil, in the long run its going to be a good thing. It will force us to make needed changes in our energy polices and bring about technology that would not have been invented if oil was at $40 a barrel.

Brin also says that Google plans to help bring electricity to the 1.6 billion people who currently live without it. Very noble. Than again, you can’t Google anything if you don’t have electricity.