What do Walmart, the U.S. Military and Intel Have in Common? More Than You Think
Originally posted at Wired on February 3, 2014
Walmart, the U.S. Department of Defense and Intel Corporation would seem a strange lot to put together. The largest retailer on earth, the most sophisticated military and the leading semiconductor company are vastly different arms of US power and success. However, they do share at least one trait: they are some of the biggest supporters of renewable energy and sustainability in the US.
Renewable energy is growing with solar, wind, biofuels and energy efficiency all becoming strong markets in their own rights. These three organizations have taken advantage of some overall trends in renewable energy:
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Renewable energy provides reliable energy supply;
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Renewable energy is cheaper in many areas and can help save lives; and
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Sustainability is something that consumers and stakeholders increasingly view as a “need to have” not a “nice to have.”
Walmart may seem an unlikely proponent of renewable energy. Based in conservative Arkansas, the retailer is about as American as apple pie. However, Walmart has recognized the competitive economics and consumer sentiment around clean power and sustainability. The retailer is creating a greener supply chain and more renewable power. Renewable power systems produce quite predictable amounts of energy, enabling Walmart to have a clear supply and cost of energy for the next 10+ years. In addition, Walmart benefits from strong green branding to its consumers.
Walmart committed to going 100% renewable several years ago. While it currently only gets 4% of its electricity from renewables, the company is one of the largest corporate supporters of rooftop solar, with more than 89 megawatts of solar at 215 locations in the US. Solar makes sense for Walmart, helping offset peak usage. The company has also installed fuel cells, which can be renewable if powered by biogas and has purchased wind power from third parties. Some have accused Walmart of greenwashing, but whether it is the company’s push into the renewable energy markets or adding organic foods to shelves, its activities reflect overall US trends towards an interest in green.
The Department of Defense has multiple green mandates, ranging from electricity procurement to fuel supply. They must produce or procure 25% of their energy from renewables by 2025 (approximately enough to power 750,000 homes), with an interim goal of 18% by 2018. Alongside this, each of the three major branches plans to install one gigawatt of solar by 2016 (Air Force) or 2020 (Army and Navy). For reference, three gigawatts are about the same scale as 12 coal plants or 2 nuclear plants. On the fuel supply side, the US military is a major supporter of biofuels for jets and ships.
Like Walmart, the military is taking advantage of improved economics in the renewable sector to procure stable power at competitive rates. All three major armed forces branches are moving ahead with their renewable efforts and the U.S. Army in particular has rolled out innovative programs such as Solar Strong, which aims to provide solar on 120,000 military housing units.
The military has another major reason beyond its federal mandates to grow its renewable energy footprint: it saves lives. Forward operating bases generally rely on diesel generators, requiring regular supply convoys. This puts troops at risk and is also extremely expensive. Utilizing solar, microwind and fuel cells, servicemen and women are taken out of harm’s way by not having to guard and deliver diesel to remote bases.
Intel has been even more aggressive than Walmart and the military in committing to renewable power. It currently tops the rankings of the EPA’s Green Power Partnership, utilizing market options to make 100% of its US energy usage green. The company primarily purchases third party green energy certificates (meaning they do not purchase actual renewable energy, but green credits created by renewable power being sold to other purchasers). In addition, it has more than seven megawatts (the equivalent of about 20 Walmart stores) of solar installed at company facilities. This commitment gives Intel real economic benefits while enabling it to pursue strong clean and green branding.
So stay tuned. As leading organizations such as Walmart, Defense and Intel commit to increasing their renewable and green footprints, it sends all the right signals to Main Street and Wall Street that renewable energy is important, scalable and good business.
What’s the next step for the military and corporate leaders like Walmart and Intel? Keep rolling out renewable power aggressively and figure out how to bring the promise of electric vehicles and sustainable transportation to their commercial vehicles and fighting machines.
Ed Sappin is the CEO of Sappin Global Strategies, a strategy and investment firm focused on the energy and innovation economies.
