ABB: taking the energy lead

LONDON, England (CNN) -- While the major oil firms dabble in renewable energy, some companies have turned their backs on fossil fuels and embraced alternative solutions.

One such firm is Europe's biggest industrial engineering company, ABB, which specialises in energy and engineering development, making everything from circuit-breakers to wind turbines.

The Swiss-Swedish firm sells to utilities, process industries, manufacturing and consumer industries and oil, gas, and petrochemical firms.

IN-DEPTH Climate change   • Q&A: Climate change   • Greenhouse effect   • Regional consequences   • Fossil fuel debate   • Analysis: After The Hague   • Message board   • Quick vote   • Recent news

For the last two years, ABB has been rated top of its industry group -- the electric industry group -- in the Dow Jones Sustainability Group Index, which rates firms on their environmental record.

Among other things, Dow Jones cited ABB's environmental policy and products, its high expenditure on research and development and its move into renewable energy and alternative energy solutions.

The company is also hailed by environmental campaign group Greenpeace for embracing alternative energy sources.

ABB addresses environmental issues in all of its operations and is a signatory to the International Chambers of Commerce Business Charter for Sustainable Development.

It has adopted the 16 principles of the charter, which include developing and providing environmentally safe products or services that are energy efficient and can be recycled, reused or disposed of safely.

New approach

In June 2000, ABB announced a new policy of providing small-scale decentralised energy solutions, including micro-turbines, fuel cells, combined heat and power generation, and a new radical design for wind power plants.

ABB President Jörgen Centerman said: "Rapid deregulation of energy markets, privatisation and the emergence of new, competitive technologies combine to give alternative energy solutions a growing appeal."

The company also completed the sale of its large-scale fossil fuel, hydro and nuclear power generation activities.

Michael Robertston of ABB's Sustainability Affairs department told CNN that environmental issues were the main reason for the move into alternative energy but it was also a question of growth.

"ABB wants to be a leader in its field of business and alternative energy is where the growth is in the energy market," he said.

There is overcapacity elsewhere in the industry and some areas such as nuclear power are totally stagnant," he said.

The company says information technology makes it possible to control many small power plants from a central point and that the deregulation and privatisation of the industry had given customers more choice.

"This means, that, for example, tomato growers in The Netherlands have become customers for micro turbines because as well as using the power in their greenhouses, they can also feed excess carbon dioxide into the greenhouses to help the tomatoes grow and they can sell any excess energy to power distributors," Robertson explained.

The company expects such solutions to play a fast-growing role in meeting the world's future energy needs in a more sustainable way.

"Wind power is currently the fastest-growing alternative energy source as it is the most competitive compared with other forms of power. However, other alternative sources such as fuel cells and micro turbines will become just as competitive before too long," Robertson added.

ABB
Dow Jones Sustainability Group Indexes
ICC

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.