Cost competitiveness in the energy sector requires scale and scale is harder to achieve with energy products. The reasons for this range from the costs of R&D, to cost of distribution infrastructure, production facilities, and parts or components pricing.
In the bioenergy arena the capabilities and potenial of the cooperative are amplified. The nature of the products (renewable consumables) and a new, time-sensitive, environmental credits market create a new opportunity. It is an opportunity of tremendous scale, with a variety of niche applications, products, and services required to adequately support industry growth and transition to maturity.
This is the first in a three-part blog designed to explore opportunities for cooperatives to thrive in the newly emerging sustainable energy sector. In Part 1, I discuss the basic principles of cooperative formation and outline an initial niche-based value-opportunity for cooperative activities in the sustainable energy sector.
It started with a vision of creating an organization that would serve the community as a local distribution hub for biofuels, with our initial efforts focused on the production of biodiesel.