Good news for shareholders of Toronto-based RuggedCom, one of the world’s leading makers of ruggedized networking gear for the smart grid. Facing a hostile takeover from St. Louis-based Belden Inc., RuggedCom has found a white knight in Siemens Canada Ltd., the Canadian subsidiary of German industrial giant Siemens AG.

Siemens has agreed to purchase RuggedCom for $382 million or $33 a share, compared to the $272.4 million or $22 a share offer from Beldon. It represents a 50% premium on a per-share basis and, quite frankly, Siemens is a better fit for RuggedCom and for keeping innovation in Ontario.

Siemens Canada, which is based in Burlington, Ont., has a strong and growing presence in Canada — about 4,400 employees and $3 billion in annual revenues. It is also pushing hard into the same smart grid space occupied by its main competitor, General Electric. Ontario is shaping up to become a hub of smart grid development in North America, so it makes sense for Siemens and Vaughan, Ont.-based RuggedCom to hook up.

I was the first journalist to write about RuggedCom with a story in the Toronto Star back in July 2006. Since then it has consistently grown revenues and profits, even during the downturn. “Either we’re going to get acquired by a strategic peer or reach a point where we’ve got … a good story to take it to an IPO,” company founder and CEO Marzio Pozzuoli confidently told me when we first spoke nearly six years ago. Pozzuoli, by the way, was a technology manager in GE’s power management operation before deciding to leave the company to found RuggedCom. Such a good move. The successful IPO part came true in 2007, and now the strategic acquisition part is coming true with the Siemens purchase. As Pozzuoli stated today, “We have great respect for Siemens and believe RuggedCom will be well positioned for continued growth and industry leadership under their ownership.”

Could RuggedCom have done it alone? Perhaps — but with the massive clout of Siemens behind it, it can do a heck of a lot better. That’s just how the cleantech space is expected to be over the coming years, as startups with great technology and proven leadership seek the resources and reach of established multinationals. An added benefit to this deal is that it seems to reinforce Siemens’ commitment to Ontario.

This is an encouraging sign for the Canadian clean technology sector. SAIL Venture Partners, the early-stage venture arm of SAIL Capital Partners, said today it is partnering up with the Canadian subsidiary of Stifel Financial Corp. to create a joint venture and fund that would tap into Canadian cleantech opportunities. Specifically, the fund would invest in early stage cleantech companies in Canada that have ready-for-market products. “SAIL’s expansion into Canada represents a tremendous vote of confidence in the quality of Canada’s cleantech sector,” according to David Fransen, Consul General of Canada in Los Angeles.

It’s nice to be loved.

My Clean Break column this past week looks at the missed opportunity of growing crops for biofuel production when making green chemicals is a higher value proposition, both economically and environmentally.

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By Tyler Hamilton

About seven million tonnes of grain corn was grown in Ontario in 2011, and by year’s end roughly 30 per cent of that is expected to go toward ethanol fuel production.

Let’s ignore for the moment the whole food-versus-fuel debate, and assume that devoting nearly a third of Ontario corn production to making renewable fuel doesn’t help drive up global food prices, or for that matter, reduce our capacity to feed the world.

Let’s focus instead on the use of corn as part of a greenhouse-gas reduction strategy that returns more economic value per harvested bushel. Through this lens, is biofuel production the best use of a renewable but also land-limited resource?

Corn, after all, doesn’t have to be made into ethanol and burned in the gas tanks of our cars to reduce our dependence on fossil fuels. It can also be used to make a variety of “green” chemicals that form the basis of a wide variety of products currently made from petroleum-based chemicals.

Let’s take, for example, Burlington, Ont.-based EcoSynthetix, which takes starch from corn to make certain biopolymers. These biodegradable biopolymers can displace petroleum-based ingredients used to make coatings for packaging and cardboard, adhesives, carpet backing, building materials and a wide range of other products.

John van Leeuwen, chairman and chief executive of EcoSynthetix, which had a successful initial public offering on the Toronto Stock Exchange in August, says he can make $35 worth of biolatex for every bushel of corn the company consumes in its process.

Ethanol, by comparison, fetches about $10 for every bushel of corn, he says. Indeed, the amount of corn that’s consumed annually by 10 large ethanol production plants – out of about 200 in North America—could probably supply enough starch for the entire emulsion polymer market worldwide if it were to switch to 100 per cent biopolymers.

More than that, EcoSynthetix’s biopolymer can compete head on with petroleum-based polymers that currently dominate the marketplace, unlike the heavily-subsidized ethanol industry. “We don’t need subsidies. We can actually go into a deal and offer a discount against petroleum-based products to win business,” says van Leeuwen.

Asked about the growing volume of corn consumed by the ethanol industry, van Leeuwen, without pointing fingers, responds sensibly. “We really need to be thoughtful as an industry to make sure what we make derives maximum value from our agricultural feedstocks.”

Such wise advice could be directed to Canada’s bioproducts sector as a whole, which as I wrote in August has been shrinking when it should be flourishing. That was the conclusion of a report by the Richard Ivey School of Business, which called Canada’s performance on the global stage “disappointing.”

In that report, ethanol represented more than two-thirds of Canada’s bio-products market, while higher-value polymers accounted for just 2 per cent and organic chemicals 12 per cent. In the area of green chemicals, Canada’s landscape was described as “stagnant.”

This isn’t just about corn; it’s also about how we choose to use agricultural residues, municipal organic waste, wood waste, algae biomass, and non-food crops.

Does it make sense to just burn this material for energy, or convert it into fuel so it can be burned? Or, should we be doing a better job of targeting niche markets with high-value “green” products that are just as effective at reducing our dependence on fossil fuels?

“There is an overemphasis on biomaterials as a source for energy,” says Dr. Rui Resendes, executive director of Kingston-based GreenCentre Canada, which helps commercialize green chemistry innovations coming out of Canadian universities.

And that energy isn’t as green as often claimed. After all, Resendes points out, the fertilizers used to grow crops are petroleum-based, as are many other products consumed along the supply chain.

“Just because you pluck it out of farmer’s field doesn’t mean it’s sustainable,” he says, adding that the entire value chain has to be considered. This is where green chemistry and the products it supports play a crucial role. “I’m a firm believer in technologies that are addressing niche markets where volumes are much smaller and margins are much higher.”

Green chemicals may be a broad category, but it’s one that serves highly targeted markets where petroleum-based products currently dominate, including the manufacture of fertilizers, polymers, and lubricants, to name a few.

And, as EcoSynthetix is demonstrating, you can be competitive and aim for profitability without relying on subsidies.

This isn’t to suggest we abandon biofuels. Renewable jet fuel, for instance, is emerging as an attractive subcategory of green fuels and fulfills a role that electricity, while an alternative source of energy for consumer vehicles, simply can’t based on current-day technology.

But certainly Canada can have a much more balanced portfolio, and that means doing a better job of nurturing our green chemistry sector, and – in the particular case of corn – getting more pop per kernel.

Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies.

FYI: This is a presentation and panel that I participated in in late September at the Evergreen Brick Works Forum on Leadership, Innovation and Sustainability. We were confined to a PechaKucha presentation format, meaning you have to go through 20 slides and spend no more than 20 seconds on each one — i.e. total presentation of just six minutes and 40 seconds. Needless to say, we all felt rushed, but it allowed more time for discussion. You can find the other panels here, as well as video of the keynote presentation from Jeremy Rifkin.

My Clean Break column today takes a look at a wind turbine design out of the University of Ottawa. It’s a twin contra-rotating blade system, meaning there are two sets of blades each spinning in opposite directions. The engineers who designed it say that wind-tunnel tests prove it is more efficient and — an added bonus — much quieter because the vibrations from each blade system help cancel out each other. Read the full column below:

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Tyler Hamilton

There was a time not so long ago that seeing a single wind turbine spinning in the distance was a novel experience for most people.

Not so much any more. There are now hundreds of wind turbines scattered across the province, representing 1,700 megawatts of wind capacity in Ontario alone — or just over a third of all capacity in Canada.

Hundreds more are in the queue waiting to be installed. Most are large turbines, about 2 megawatts or more in size, and between 80 and 100 metres high. All look pretty much the same: a big tall white tower with three spinning blades attached by rotor to a massive nacelle, which houses the generator and gearbox.

But as researchers continue to improve the efficiency of wind power generation it’s quite possible that the turbine of tomorrow will look dramatically different.

There are proposals for two-bladed turbines. There are vertical-axis turbines that look and spin like egg beaters. One company called FloDesign has a turbine that looks like a jet engine on an airplane, while Toronto-based WhalePower wants future turbine blades to resemble humpback whale flippers.

Over at the University of Ottawa, a group of students and professors who dub themselves the “Green Engineer” have come up with their own creative approach — a wind turbine with two sets of blades each spinning in opposite directions.

They call it the contra-rotating small wind energy converter. Wind tunnel tests on a prototype have shown that the design is up to 40 per cent more efficient and far less noisy than a conventional single-rotor system.

The benefits of having contra-rotating blades are well known. In fact, the design has existed for more than a century and is widely used, for example, in propeller systems of submarine torpedoes. The concept is also used in airplane and boat propulsion systems, not to mention those remote-controlled toy helicopters you can fly inside your house.

Riadh Habash, professor of technology and engineering at the University of Ottawa, says his team decided three years to apply the same approach to wind turbines and are encouraged so far with the results — so much so that they’re busy building a second prototype that will be mounted next summer atop a building on the Ottawa U campus.

Why is having two blade systems spinning in opposite directions more efficient?

When the wind blows into a conventional three-bladed, single-rotor wind turbine less than 40 per cent of its energy is converted into electricity. The rest escapes, much of it in the air wake that’s created behind the blades. That wake spins in the opposite direction (i.e. counter-clockwise) to those blades.

If a second rotor with another set of blades is right behind the first rotor, and if it is designed to also spin counter-clockwise, it can capture energy from that wake. The end result is a turbine system that harnesses much more energy from the initial flow of wind.

Experiments to date also suggest that a turbine with such a design can operate at lower wind speeds, allowing it to tap into a broader range of wind resources.

Habash says an added, but just as important, benefit is that the design is also quieter. “We have observed that when you have two sets of blades that are contra-rotating they achieve a kind of vibration cancellation. There is a clear reduction in vibration.”

This is good news, as one of the biggest issues hindering the deployment of wind energy — particularly in Ontario, for some reason — is concerns related to noise and inaudible vibrations reportedly experienced by nearby residents.

The Green Engineers and their industry partners, including Ottawa-based TRIAS Innovations, have some other tricks up their sleeves. All of them are aimed at producing a superior wind turbine with all parts — blades, generator, power electronics, drive train and tower — manufactured in Canada.

They’re even chatting with WhalePower about incorporating its whale-inspired blade design, further adding to turbine efficiency and noise reduction.

“Our target market for now is small wind turbines,” says Habash, who leads the team. “We are aiming at 10 kilowatts. But in the future that could go up to 100 kilowatts, and if we can prove the concept it could then be applied to much larger turbines.”

The project has been funded by the university, Ontario Power Authority, Ontario Centres of Excellence and Natural Sciences and Engineering Research Council of Canada.

Habash hopes to be able to demonstrate the second machine in a number of locations. One would be part of a combined wind and energy storage project in an aboriginal community. “We have some investors who are very interested in using this for community power,” he says.

It’s still early days, but it’s an example of how wind power design could evolve over the coming years, based on innovation coming directly out of Ontario.

Check out this YouTube video from the University of Ottawa.

Tyler Hamilton, author of Mad Like Tesla, writes weekly about green energy and clean technologies. Contact him at tyler@cleanbreak.ca