Alternative fuel race hitting high gear

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ONTARIO                                                   NOVEMBER 16, 2007 – VOL. 3, NO. 23                                                              NEWSSTAND $2




  Alternative fuel race hitting high gear
                                                   PIPE POWER                                                                              From vegetable
                                                                                                                                            oil to ethanol,
                                                                                                                                          choices growing
                                                                                                                                        By Tess van Straaten
                                                                                                                                        Business Edge




                                                                                                                                        D
                                                                                                                                                    elivery-truck operator
                                                                                                                                                    Rick Roos does not
                                                                                                                                                    have to worry about
                                                                                                                                                    how much he’ll pay at
                                                                                                                                        the pump as crude oil prices hit
                                                                                                                                        record levels. That’s because the
                                                                                                                                        Toronto-based businessman is
                                                                                                                                        driving innovation – literally.
                                                                                                                                           Roos converted his diesel truck
                                                                                                                                        to run on used ve g e t a ble oil
                                                                                                                                        almost three years ago and hasn’t
                                                                                                                                        looked back.
                                                                                                                                           “I was putting a lot of carbon
                                                                                                                                        out the tailpipe and my Visa bill
                                                                                                                                        was getting out of control,” says
                                                                                                                                        the owner of Roos Transport.
                                                                                                                                        “Now I get my fuel for free.”
                                                                                                                                           With one billion cars predicted
                                                                                                                                        to be on the road by 2020, accord-
                                                                                                                                        ing to the environmental research
                                                                                                                                        group WorldWatch Institute –
                                                                                                                                        almost 50 per cent more than 10
                                                                                                                                        years ago – the race to find a
                                                                                                                                        solution and reduce the reliance
                                                                                                                                        on fossil fuels is growing.
                                                                                                                                           Researchers, farmers, big
                                                                                                                                        business and industry are all now
                                                                                                                                        rushing to be the first over the
                                                                                                                                        finish line with an alternative fuel
                                                                                                                                        that can have mass-market appeal
                                                                                                                                        and eventually usurp traditional
                                                                                                     Larry MacDougal, Business Edge
                                                                                                                                        gasoline.


  Enbridge CEO wins energy laurels                                                                       SPECIAL REPORT
                                                                                                          ENERGY
                                                                                                                                        See GREEN

                                                                                                                                             Ontario ISSN 1710-7857
                                                                                                                                                                   Page 4



  Enbridge Inc. president and CEO Pat Daniel has come a long way from his small-town roots
  to the heady heights of Canadian Energy Person of the Year. And he has some very definite
  views about the pipeline potential – and pitfalls – in Canada’s North.(See 20 Questions on
  Page 6.)In this Special Report on Energy, our Business Edge writers examine a wide
  range of issues and opinions about corporate and government initiatives in energy
  production, technology and conservation.
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Page 2                                                                                                                                                             November 16, 2007


                                                                                       INSIDE EDGE
■ 20 QUESTIONS                            his sights set on companies             ■ REAL ESTATE EDGE                ■ OPINIONS                         and rising inflation, says export
From smalltown Alberta to                 that show stock momentum.               Toronto’s Hospital for Sick       The tax relief announced           analyst Stephen Poloz.
the energy sector boardroom,                                     Page 12          Children is being fitted with     by the federal government                                   Page 20
Enbridge Inc. president                                                           a solar thermal system.           should be just the first step to
and CEO Pat Daniel made it                ■ STREET LIFE                                                  Page 16    balancing the budget, says         ■ TECHNOLOGY EDGE
big.                                      Reports that Daimler and Ford                                             columnist D’Arcy Jenish.           Companies such as IBM are
                        Page 6            were talking with Ballard               ■ EDGE@WORK                                               Page 20    embracing “Green IT” to
                                          Power Systems about its fuel-           Australian researchers have                                          help their bottom line and the
■ FINANCIAL EDGE                          cell division sent the firm’s           developed a garment gizmo for     ■ EXPORT ANALYSIS                  environment, says columnist
Hesperian Capital portfolio               shares soaring prior to a sale.         busy business people.             The global economy is feeling      Tom Keenan.
manager Keith Leslie keeps                                         Page 14                                Page 18   the pressure of slowing growth                            Page 22




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Growing demand by China, India worries energy agency
The Canadian Press                 Paris-based agency said in its     Nobuo Tanaka said that rapid       stand to benefit economically      importance of the pair’s contri-
                                   2007 World Energy Outlook,         economic growth in China and       from China and India’s eco-        bution to collective efforts to
   Rapid economic growth in which concentrated on the                 India was a “legitimate aspira-    nomic development through          enhance global energy security.
China and India will have dev- implications of energy develop-        tion” that would improve the       international trade,”Tanaka said      “We need to act now to
astating consequences for the ments in those two emerging             quality of life of more than two   ahead of the report’s release in   bring about a radical shift in
world’s energy sup-                           economies for the       billion people and that needed     London.                            investment in favour of cleaner,
ply if governments SPECIAL REPORT rest of the world.                  to be supported by the rest of       However, the agency said that    more efficient and more secure
in those emerging        ENERGY The IEA – an                          the world.                         growing participation in inter-    energy technologies,” Tanaka
countries do not                              energy policy advis-       “Indeed, most countries         national trade highlighted the     said.
ramp up efforts to                            er for its 26 member
curb demand and                               countries, including
greenhouse         gas                        the U.S., Canada,
emissions, the Inter-                         Australia and 19
national      Energy                          E u ropean nations
Agency (IEA) says.                            including Germany
   The IEA says that                          and Britain – said
the two countries will account that China and India are trans-
for around 45 per cent of the forming the global energy sys-
i n c rease in global primary tem by dint of their sheer size.
energy demand through 2030,          China is expected to overtake
when the world’s energy needs the U.S. as the world’s biggest
are expected to be well over 50 emitter of carbon dioxide this
per cent higher than they are year – that’s three years earlier
today.                             than the agency had forecast in
   “ H ow China and India its annual report last year. India
respond to the rising threats to will become the third-biggest
their energy security will also emitter around 2015.
affect the rest of the world,” the   IEA exe c u t ive dire c t o r
Page 4                                                                                                                                                            November 16, 2007

GREEN from Page 1


  Vegetable oil helps to cut down fuel costs
   Roos’ veggie-oil truck, for                                                                                  tion even further, doubling it to primarily for fleet vehicles.
example, comes from restaurant                                                                                  around two billion litres a year.    Unlike E10, on which any
deep-fryers and would other-                                                                                       “Ethanol sells at a significant car manu factured after the
wise be a waste product. Local                                                                                  discount to gasoline, it’s a 1980s can run, E85 requires
pubs actually pay Roos to pick                                                                                  cheaper fuel, a cleaner-burning vehicle modifications or a flex-
it up and after mechanical fil-                                                                                 fuel and one pro-                               ible-fuel vehicle to
tering in his garage – to get out                                                                               duced domestically SPECIAL REPORT handle the high
the french fry bits – and de-                                                                                   that’s creating jobs ENERGY alcohol content.
watering, Roos is ready to hit                                                                                  in rural Manitoba,”                                 With more auto
the road.                                                                                                       Speer says. “Con-                               manufacture rs mak-
   “It’s a beautiful product and I                                                                              sumers definitely                               ing flex-fuel vehi-
personally find there ’s a slight                                                                               want that choice.”                              cles, outgoing Sask-
increase in power,” Roos says.                                                                                     South of the bor-                            a t c h ewan Pre m i e r
“You really can’t tell the differ-                                                                              der, consumers have                             Lorne Calvert had
ence – except that it really does                                                                               even more choice                                called for an E85
smell like french fries, which is                                                                               with E85, which as                              highway that would
certainly a nicer smell than gas.”                                                                              the name suggests is 85 per cent run coast-to-coast with pumps
   The truck runs on a two-                                                                                     ethanol.                           along the Trans-Canada and
tank system and can switch                                                                                         Readily available in the U.S. Yellowhead highways.
between vegetable oil and                                                                                       Midwest, E85 rings up sales at       It’s a major infrastru c t u re
petroleum diesel. In cooler                                                  Photo courtesy of Roos Transport   about 1,300 service stations – issue, but as the demand for E85
weather, the truck needs to be       Rick Roos finds his alternative fuel source, used vegetable oil,           set to double in the next year increases, i n s i d e rs believe build-
started with diesel to warm up                                                                                  or two – at a considerable ing the market domestically will
                                     delivers the scent of french fries along with saving money.
the oil, which usually takes                                                                                    discount.                          be critical to positioning Canada
about four to five city blocks.       challenge, it is a way we can        Beginning in 2010, a federal            Canada has only three public as a leading ethanol exporter.
Roos then flips to vegetable oil      reduce our use of fossil fuels –     requirement for five-per-cent        E85 pumps, with the high
for cleaner, greener motoring.        just one aspect of the solution      ethanol will pump up produc-         ethanol blend being used See ETHANOL                           Page 5
   While environmental con-           that can really assist local
cerns initially fuelled Roos’         economies and small farms.”
decision to convert the truck,          In harvesting the potential of
going green has also meant            food crops, ethanol is leading
making green.                         the race.
   “A drive from Toronto to             It’s already commerc i a l l y
Kingston costs me about $1 in         available in Canada and can be
diesel, compared to about $100        found, as a 10-per-cent eth-
if I wasn’t using vegetable oil,”     anol-blended gasoline (E10), at
Roos explains. “It allows me to       more than 1,000 retail outlets.
quote much lower than the               “It’s moving forward in full
other guys because I don’t have       force and by the end of this
fuel costs. Fuel is a huge one, so    year, Canada will be producing
it makes me more competitive.”        one billion litres of ethanol a
   In the competitive arena of        year,” says Robin Speer, direc-
politics, waste vegetable oil was     tor of public affairs for the
put to the test when Ontario          Canadian Renewa ble Fuels
Green Party Leader Frank de           Association. “It’s still largely
Jong used a converted Volks-          concentrated in corn-based
wagen Golf to power around            facilities in Ontario and
the province during the last          Quebec, but there are several
election.                             wheat-based facilities coming
   The car revved up an esti-         online on the Prairies in
mated 5,000 kilometres on the         Saskatchewan and Manitoba.”
campaign trail. Owner Chris             One of those facilities in
Walker, who converted the car         Minnedosa will produce 130
himself using a commercially          million litres of ethanol per year
available conversion kit, says the    alone when it’s at full capacity.
move is saving him at least $120      This will enable Manitoba to
a month.                              meet an ethanol mandate that
   “I’d rather the money for my       will be the highest in Canada,
transportation fuel go back into      calling for 8.5 per cent of all
Ontario instead of sending it         gasoline sold in the province to
overseas or to the big oil            be ethanol starting next year.
companies,” Walker says. “And           Saskatchewan already has a
while this is not a solution for      7.5-per-cent standard and
the entire transportation fuel        Ontario has five per cent.


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ETHANOL from Page 4


Corn-based ethanol’s clean credentials are in dispute
   “We’re actually a net ethanol      gen-powered buses operating             A new breed of hybrid is also    powered electric motor with a         the decision about cars yet,”
importer right now, so when           on Parliament Hill.                  here – the hybrid electric vehi-    conventional engine.                  Keith says. “Nobody can pick
these plants come online on the          It’s the first step in building   cle. Electric cars failed to take     With all these options,             what the best action is and any-
Prairies, we’ll have that capacity    the massive infrastructure nec-      off because of their short range,   experts say it’s impossible to tell   one who tells you they
to meet our standards and with        essary for public access to this     large batteries and difficulty      what will eventually re p l a c e     can is either overconfident or
that capacity we’ll then be able      gasoline alternative.                charging away from home.            gasoline as our fuel of choice.       selling something.”
to increase those low - l evel           With all the major automak-          The hybrid electric addresses      “It’s a 100-year decision and I        (Tess van Straaten can be reached
blends and see things like E85        ers working on fuel-cell vehi-       this by combining a battery-        don’t think we’re ready to make       at tess@businessedge.ca)
and ultimately become an              cles and many pro t o t y p e s
exporter as well,” Speer says.        already on the road, proponents
   H owever, despite ethanol          say it’s just a matter of time
being touted as a clean-burning       before the cost comes down
fuel, its green credentials are in    and hydrogen takes off.
dispute.                                 “The cars are expensive
   The production of ethanol –        t o d ay because they’re only
f rom the large amounts of            making 10 to 100 units –
power required to make it to          they’re not making large quan-
the fertilizers used in growing it    tities, so once they make large
– has many questioning                quantities the price will come
whether it actually burns more        down,” says Pierre Gauthier,Air
fossil fuels than it saves.           Liquide Canada’s director of
   “Corn-based ethanol is a joke      hydrogen energy.
environmentally,” says Univer-           Some estimates say we can
sity of Calgary Pro f. D av i d       expect mass production of fuel-
Keith, Canada research chair in       cell vehicles by 2012 or 2015,
energy and the environment.           but experts say that’s unrealistic
“Politically, it’s ve ry good         – especially when you consider
because it (addresses) farm state     the lack of infrastructure.
politics and oil security, but           “I’m not going to buy a car
it’s environmentally, at best,        that I can’t expect to fuel, so
ambiguous.                            you have this very hard chick-
   “If you do ethanol on a broad      en-and-egg problem – no one
scale, you need to fix the env i-     will buy the cars unless there’s
ronmental concerns.”                  refuelling infrastructure and no
   A greener alternative is cellu-    one will build the refuelling
lose ethanol, which is made           without the cars,” says Keith.
from agricultural waste such as          “It’s a slow process and if you
cereal straws.                        think there’s a five-year transi-
   Giving new meaning to the          tion to hydrogen cars, there’s a
old adage “ waste not, want           greater chance aliens will land.”
not,” this biofuel breakthrough          In the meantime, commer-
can be used in today’s cars and       cialization in niche markets is
compares favourably in cost to        accelerating into high gear.
conventional ethanol.                 Ballard Power Systems in Van-
   The agricultural waste used        couver, Canada’s largest hydro-
to make it can also be burned         gen fuel-cell company, signed
to generate power to run the          deals recently to provide its
cellulose ethanol facility.           technology for forklifts and
   Because of this ability to         back-up power.
provide both power and fuel,             “You have to find neare r
the U.S. Department of Energy         markets where you have com-
has determined cellulose              m e rcialization sooner,” says
ethanol reduces gre e n h o u s e     Ballard spokeswoman Rebecca
gases by 90 per cent compared         Young. “It’s the same technolo-
to gasoline.                          gy and putting the technology
   Making inroads in commer-          into those applications today
cializing cellulose ethanol,          will help drive the technology
Ottawa’s Iogen Corp. is pro-          forward as a whole and will
ducing about two million litres       help bring it to cars.”
of this next-generation biofuel          While fuel-cell cars are still
a year in the world’s only            several years away, Ballard is
demonstration-scale facility.         seeing success in the lucrative
   Plans are now underway to          bus market where infrastructure
build the world’s first commer-       and cost are less of an issue.
cial cellulose ethanol plant,            In a deal worth up to
most likely in Saskatchewan.          US$14.7 million, Ballard will
   “You can make millions of          provide fuel cells for up to 20
litres of ethanol by taking a         new BC Transit buses. Rolling
waste product like this or wood       onto B.C. roads by the end of
waste or grass clippings and          2009, the buses will be show-
turning it into a clean fuel,” says   cased during the 2010 Olympic
Speer.                                and Paralympic Winter Games
   Hydrogen-powered fuel cells        before being integrated into the
a re also driving ahead with          BC Transit fleet.
Canada’s first permanent                 The B.C. government is also
hydrogen refuelling station.          driving into the future after
   Launched in Ottawa last            adding hybrid vehicles to its
month by Air Liquide Canada           fleet for almost three years.
as part of the ongoing Hydro-         Officials hope to have hybrids
gen on the Hill project, the sta-     make up 30 per cent of the fleet
tion will supply three hydro-         by next year.
Page 6                                                                                                                                                  November 16, 2007


                                                                        20 QUESTIONS


   Energy chief builds pipeline to prosperity
  By Monte Stewart                                                                                                                In a way, I found it to be almost
  Business Edge                                                                                                                   purer engineering than what the
                                                                                                                                  real engineers did, because you used
             at Daniel is a small-town kid                                                                                        engineering theory to write


  P          who made it big.
                In the process, he also
             made Calgary-based pipeline
  builder and operator Enbridge Inc.
  big.The company has $10 billion
                                                                                                                                  programs. I found it very helpful in
                                                                                                                                  terms of polishing my engineering
                                                                                                                                  background, but also getting good
                                                                                                                                  overviews as to what went on in the
                                                                                                                                  corporation, because you were serving
  worth of new projects under                                                                                                     users in all different parts of the
  development.                                                                                                                    organization.The second thing was
     For his efforts, the blunt president                                                                                         maybe on the ‘what-not-to-do side.’
  and CEO, who grew up in the tiny                                                                                                Occidental Petrochemicals was the
  northwestern Alberta hamlet of                                                                                                  owner of Hooker Chemicals, a com-
  Entwistle, was recently named the                                                                                               pany that had some real challenges
  Canadian Energy Person of the Year                                                                                              around some of the environmental
  by the Canadian Energy Council, this                                                                                            problems that came out of the Love
  nation’s chapter of a world council.                                                                                            Canal, where old chemicals were put
     “What it really means to me is that                                                                                          in barrels and buried and started to
  Enbridge has attained a level of world                                                                                          leach into the soil in later years,
  and national prominence that we have                                                                                            creating a real health hazard.That
  come to the attention of a very                                                                                                 probably has helped give me a level of
  important organization like the                                                                                                 environmental awareness that has
  Energy Council of Canada,” says                                                                                                 stuck with me all the way through
  Daniel.                                                                                                                         my career.”
     “It’s not that many years ago that I                                                                                         7. Who were some of the people
  remember us as a little old crude oil                                                                                           who inspired you early in your
  pipeline company from Edmonton,”                                                                                                life or your career?
  he adds. “Now, we’re on the world                                                                                                  “I still consider my older brother
  stage.That’s something that I’m very                                                                                            (Terry) as a big inspiration. He’s one
  proud of.”                                                                                                                      of the smarter businessmen I’ve ever
     Enbridge has also garnered praise                                                                                            met. He teaches business at the
  for its corporate governance and                                                                                                University of Alberta’s school of
  reporting practices. If you check out                                                                                           business. Dave Betran, who I worked
  the Enbridge website, you can find                                                                                              for at Occidental, had an amazing
  out how many shares are owned by                                                                                                ability to sort the important things
  each board member, including Daniel.                                                                                            from the unimportant things. But
     “We’re a very open and transparent                                                                                           each boss along the way really
  company, and believe that it’s very                                                                                             contributed a lot to my career.Two
  important for investors to understand                                                                                           individuals who had the most effect
  what executives are paid,” says Daniel,                                                                                         later in my career were (Calgary
  who owns 324,547 shares, holds                                                                                                  businessman and philanthropist) Dick
  options on 1,657,400 shares and drew                                                           Larry MacDougal, Business Edge   Haskayne when I worked with him at
  total compensation of $2.8 million         Enbridge Inc. CEO Pat Daniel’s efforts have helped the pipeline builder earn         Home Oil and then Brian MacNeill,
  last year.                                 praise for its corporate governance and reporting practices.                         who was my predecessor here are
     “It’s really a transparency thing.”                                                                                          Enbridge.”
     His answers to our questions are       3. What were some of the early             little bit more involved academically      8. How would you describe your
  fairly clear, too . . .                   lessons you learned growing up             (in school). My mother and father          management style?
                                            around the farm?                           were both very strong on education.           “That’s really difficult. I’m sure
  1. What was it like living in                “Growing up around the farm,            I think they felt that being in a little   that those who work for me could
  Entwistle?                                inevitably hard work comes to mind.        bit bigger community, we might get         answer that much better than I can.
    “It was fantastic. Small farming        There was always work to be done.          a stronger education. I did my             But I think it’s a style of being
  community. I have really fond             Even though I would go there to            bachelor’s degree in chemical              very approachable (and) being very
  memories of my child-                                 play, inevitably my grand-     engineering at the University of           inclusive. I realize there are a lot of
  hood there. My father             SPECIAL REPORT father would say,‘Do this,          Alberta and then I went to the             things I don’t know.Therefore, I seek
  owned and operated a              ENERGY do that.’ Also, certain basic,              University of British Columbia and         the advice and counsel of people
  hardware store. I grew up                             core values are really         did my masters right after that (also in   around me a lot. But I also know that
  in the town, but my                                   emphasized in a farming        chemical engineering).”                    ultimately it’s my responsibility to
  grandfather had a farm a                              community (along with) a       5. What was your first job after           decide as best I can what direction
  quarter mile from town, so                            plain-language way of          university?                                this company should take. I also
  I was back and forth all                              expressing yourself.              “My first job was with Occidental       would say, and everybody around
  the time. It was a mixed                              (Farmers are) very blunt,      Petrochemicals in Buffalo, N.Y. It         me would agree, that I’m very
  farm (with) a little bit of                           open, honest and truthful      involved computer modelling and            involved in the business.That
  grain, a little bit of hay,                           people.”                       programming. I was one of the very         has pros and it has cons. I’m not
  cattle, a few pigs, a few chickens –      4. What steered you toward                 first generations of engineers that        saying that it’s necessarily the
  everything. I have three brothers and     engineering?                               used computers a lot.Therefore, as a       best attribute, but I’m not
  a sister, so there were five of us.”         “I always liked to tinker around and    new grad, that was very much in            comfortable unless I really do
  2. What were some of your early           do things. I really enjoyed the sciences   demand with most companies –               know everything that’s going on
  interests?                                in school.That and, probably, the fact     somebody to write programs for             in the business.”
    “I was absolutely convinced that I      that my older brother (Terry) went         engineers. Up until then, they were        9. What would you say are areas
  was going to be involved with horses      on and became an engineer. He was          doing everything by slide rule and by      that you’ve needed help with?
  in some way when I grew up – as a         also very technically inclined and very    hand.”                                        “My background is in engineering.
  rodeo guy or whatever. But, I also        good at the sciences in school.We          6. How do you think that                   I’ve never spent any time in finance.
  went from sport to sport year round,      moved to Red Deer when I was 10            first job prepared you for your            Hence, I’m not a financial expert.
  whether it was hockey in the winter       years old, when my father sold the         present position?                          Everything I’ve learned is by osmosis
  to baseball in the summer to football     hardware business and went to work            “I found that working in the            with regard to finance.
  in the fall.You just turned in one set    for a hardware firm there. Although        systems area, you got to see every-
  of equipment and grabbed the other.” I continued the sports thing, I got a           thing that went on in the company.         See 20 QUESTIONS               Page 8
November 16, 2007   Page 7
Page 8                                                                                                                                                  November 16, 2007

20 QUESTIONS from Page 6


 Engineer’s ‘soft skills’ needed help from HR
  “This is one of the reasons I     resources) skills. So I’ve had    as I was with Home Oil, you’d        formally put it back on the      pricing for their crude oil until
give Dick Haskayne a lot of         to rely on the skills of the      go through oil-price shocks or       frontburner yet. But we’ve had   they’re able to move some of
credit at Home Oil.As you           people in the HR area (for)       gas-price shocks where you           interest renewed over the last   it offshore – to create a little
may know, he’s got his name         some of the softer skills that    have to lay people off. I think      several months, primarily        bit of pricing tension in the
on the school of business at        don’t come very naturally to      firing people has been the           because Western Canadian         market.
the University of Calgary. I        an engineer.”                     single most difficult issue that     producers don’t feel they’ll
said, ‘Dick, I’ve got my (cre-      10. What do you see as            I’ve had to face along the way.      ever get full international      See PIPELINE             Page 9
dentials) working for you, but      some of the tougher               That’s one of the reasons I’m
you’ve paid me to do it, rather     decisions that you’ve had         so cautious when we start
than me having to go ahead          to make?                          adding people and growing the
and do it at your school.’ Also,      “There have been a variety      way we are today. I remind
being an engineer, we are           over the years. Being in the      everybody that, at some point
never known for our (human          upstream oil and gas business,    in time, you’re going to have
                                                                      to fire somebody. So be careful
                       PAT DANIEL                                     and don’t over-do (the grow-
                                                                      ing).There are also strategic
 ■ Title: President/CEO                                               decisions that one has to make
 ■ Born/raised/age: Edmonton/Entwistle,                               that you don’t like. Maybe
 Alta., and Red Deer/61.                                              you’ve got a division of the
 ■ Education: Daniel obtained under-                                  company that you need to
 graduate and master’s degrees in                                     dispose of – or dramatically
 chemical engineering from the University                             change the direction – and
 of Alberta and UBC, respectively. He                                 that impacts on an awful lot of
 has also completed management training                               people.”
 programs at Harvard and the University of
                                                                      11. What kind of feedback
 Western Ontario’s Richard Ivey School of
 Business.
                                                                      have you had since
 ■ Family: Wife Dora, sons Jarrod, 32,                                Enbridge announced that
                                                 Pat Daniel           it was interested in selling
 Paul, 29
 ■ Career: Daniel began his three-decade career in the energy         part of the Gateway
 industry with Occidental Petroleum in Buffalo. He was appointed      project to Chinese
 president and CEO on Jan. 1, 2001, after serving as director of      interests?
 planning for Enbridge subsidiary Interhome Energy Inc. and              “That has been back and
 starting up its technology and consulting business unit and          forth. About a year ago, we
 international division, and expanding its natural gas operation.     kind of put Gateway on hold,
 Before joining Enbridge about 13 years ago, his major stints         because we didn’t have enough
 included process engineering, information technology and             support for the commercial
 corporate planning positions with Hudson’s Bay Oil & Gas and
                                                                      (shipping) terms to really
 Home Oil.
 ■ Moonlighting: Daniel sits on the boards of EnCana Corp.,
                                                                      proceed with its development.
 Synenco Energy Inc. and Enerflex Systems Ltd. He also holds          But there were a variety of
 advisory and review board positions with AMEC, Accenture and         reactions. First of all, there was
 Air Liquide Holdings Inc., the University of Alberta’s business      a very broad national concern
 faculty and UBC’s engineering faculty. Charitable organizations      around this whole Gateway
 with which he’s involved include the Alberta Cancer Foundation,      project with regard to the
 S.T.A.R.S. Air Ambulance, Trout Unlimited and the Nature             investments that state-owned
 Conservancy of Canada.                                               Chinese oil companies would
 ■ Passions: Hiking, fly fishing, mountain scrambling, do-it-         make in the oilsands, and
 yourself home handiwork.                                             whether big investment in
                                                                      state-owned hands was a good
                                                                      idea. I personally think it is.
                    ENBRIDGE INC.                                     The issue around Gateway got
                                                                      broadened out into: Should
 ■ Brass: Pat Daniel, president and CEO; Stephen J. Wuori,
                                                                      the Chinese be buying a
 executive vice-president and chief financial officer; Richard
 Bird, executive vice-president, liquids pipeline; Stephen Letwin,
                                                                      Canadian oil and gas business?
 executive vice-president, gas transportation; James Schultz,         Obviously, the fact that people
 senior vice-president, new ventures; John Whelen, senior vice-       have done very few major
 president, corporate development; Alison Love, vice-president        business deals with the
 and corporate secretary; Bonnie DuPont, group vice-president,        Chinese meant there was some
 corporate resources; David Robottom, group vice-president,           concern in trying to negotiate
 corporate law.                                                       all of the agreements around
 ■ Profile: Enbridge builds and operates oil and gas pipelines in     people in a culture that we
 Canada, the U.S., Colombia and Spain. It ranks as a North            didn’t have a lot of experience
 American leader in energy delivery via a system that spans 5,000     in. Most of our projects are
 kilometres of mainline pipe in Canada and 5,600 kilometres in the
                                                                      either Canadian-customer
 U.S. The company operates the world’s longest crude oil pipeline
 system and Canada’s largest natural gas distribution company
                                                                      based or U.S.-customer based.
 through wholly owned subsidiary Enbridge Gas Distribution Inc.,      And there was a whole series
 which serves more than 1.5 million residential, commercial and       of questions around movement
 industrial customers in Ontario, Quebec and Upper New York           of crude oil by tanker along a
 State. Enbridge also builds and operates natural gas-gathering,      very environmentally sensitive
 processing and transmission systems, markets liquids, distributes    coast in British Columbia and,
 electrical power and provides retail energy products and services.   also, the challenges around
 ■ Stats: Enbridge has approximately $17 billion in assets and        building a pipeline through a
 4,500 employees. The company is also building $10 billion worth      very environmentally sensitive
 of new projects. Last year, Enbridge delivered 2.2 million barrels   countryside from Edmonton
 of petroleum per day across its North American system.               all the way out to Kitimat.The
 ■ Recent Stock Price (Exchange): $39.50 (52-week range,
                                                                      implied thought was,‘Why
 $41.60-$33.62).
 ■ Website: www.enbridge.com
                                                                      would you do this just to
 ■ HQ: 30th floor, Fifth Avenue Place, 425 1st Street S.W.,
                                                                      move crude oil to China?’ ”
 Calgary, T2P 3L8
                                                                      12. Have you renewed your
 ■ Phone: (403) 231-3900/(403) 231-3920.                              interest in Gateway?
                                                                         “Yeah, we have.We haven’t
November 16, 2007                                                                                                                                                Page 9

PIPELINE from Page 8


    Huge project may require multiple partners
   “So we continue to work on       Mackenzie Valley pipeline         they’re going to want to have    we’ve got a lot to contribute.”   pipeline in the discontinuous
trying to get commercial terms      being different                              significant control   17. What do you think             permafrost that would be
in place to proceed.”               from others?              SPECIAL REPORT of the pipeline –         builders and operators            applicable to a northern gas
13. Why did you seek to                “The first thing       ENERGY because without it,               can learn from your               pipeline.With regard to the
partner with TransCanada            to keep in mind is                           they have nothing.    partnership in the Arctic         Inuvik gas investment, the
Pipelines on the Canadian           that the producers                           However, I think      with AltaGas Services             main (thing) there related to
portion of the Alaska               will be major                                companies like        and the Inuvialuit                regulatory process and
pipeline?                           owners in the                                Enbridge, with        Petroleum?                        relationships with the First
   “We didn’t necessarily seek      Mackenzie Valley                             the pipeline            “There are several things to    Nations native people along
to partner with them.               line and the Alaska                          expertise, with the   learn. First of all, we own and   the way and in the communi-
However, we’ve indicated            gas pipeline proj-                           ability               operate the Norman Wells          ties, because we’ve got a very
along the way that this is such     ect. It’s fair to say                        to develop and        pipeline from Norman Wells        good working relationship
a massive project that there’s      that if they’re going to spend    facilitate                       down to Zama.There are a lot      there.
room for multiple companies         billions of dollars in develop-   these projects through the       of technical things that we’ve
to participate and it doesn’t       ing the reserves upstream, that   (regulatory) hearing process,    learned from running a            See PROGRAM           Page 10
make any sense to be fighting
over it.The Alaska pipeline
will probably (cost) in excess
of $20 billion. It’s going to tax
the financing capability of
many companies. At this point,
it’s very difficult to comment
(on the prognosis for a possible
partnership), because the
project itself has got a long
way to go.”
14. What would be the best
Canadian route for the
Alaska pipeline?
   “That’s a real challenge,
to be able to answer that
definitively, because right now
we have two projects – the
Mackenzie Valley project and
the Alaska project – that have
stalled.We need to re-assess the
economics and the routing of
both of those lines. But,
inevitably, they will come
through Alberta – if the
pipelines are built – and the
Alaska pipeline (will go)
through a corner of British
Columbia as well.”
15. What would be your
vision for a possible
combination of the lines?
   “The routing that was
discussed a number of years
ago, if they were to be a com-
bined project, would be to run
‘over the top and down the
valley.’That meant Prudhoe
Bay over to Inuvik and from
Inuvik south to Norman Wells,
and from Norman Wells down
to Zama, Alta., and then into
the Alberta (pipeline) grid.The
challenge is that you engage in
a lot of controversy over the
Alaska Wildlife Reserve.That’s
why we propose that the over-
the-top route would be off-
shore – shallow water offshore
– in order to avoid the reserve.
But that project hasn’t been
worked on for so long now,
because the state of Alaska was
strongly opposed to any rout-
ing that didn’t go through the
state. Hence, it’s almost
academic to talk about the
over-the-top route. It’s envi-
ronmentally feasible. It certain-
ly is well within the engineer-
ing capabilities of pipeline
contractors to do that job. In a
lot of ways, it may be less envi-
ronmentally impactful as well.”
16. How do you see the
ownership model of the
Page 10                                                                                                                                                        November 16, 2007




   ‘Going green’ drives corporate strategies                                                                 buy electricity from a sustain- Packard, Lenovo and Dell, for
 Environmentally                                           QUOTE . . .                                       a ble power reseller such as example, have an eWaste pro-
                                                                                                             B u l l f rog                   (bu l l gram that guarantees obsolete
  friendly firms                                                                                             frogpower.com), which, in turn, p roduct will be re s p o n s i bly

reduce overheads                      “The initial impact may be most                                        buys contracts from energy recycled. When equipment has
                                                                                                             companies that har-                               reached the end of
                                      evident on energy providers, but it                                    ness wind or other SPECIAL REPORT its lifecycle, ensure it
By Ian Harvey                                                                                                green sourc e s . It ENERGY is recycled by con-
Business Edge                         seems likely it will spread. From oil                                  costs a little more,                              tacting a reputable
                                                                                                             but the hundreds of                               contractor such as
      oing green isn’t just about
                                      and gas companies to retailers to                                      companies            who                          Geep             Inc.
G     social responsibility any-
more, it’s driving the bottom
                                      financial services companies to                                        h ave signed up
                                                                                                             think it’s worth it.
                                                                                                                                                               (geepinc.com) or see
                                                                                                                                                               if your municipality
line of your business.                governments, no provider of                                            ■         Park         It:                        has a program such
   E nv i ronmentally    friendly                                                                            Encourage your staff                              as Edmonton’s that
businesses attract and re t a i n     products or services will be                                           to opt out of the                                 collects and disman-
customers and also find there’s
sometimes a bonus payoff in
                                      immune from consumers’ scrutiny                                        rush hour a day or two a week tles electronic equipment for
                                                                                                             and work from home. They’ll recycling.
reducing overheads.
   Technology research firm and
                                      and action.        ”                                                   appreciate the serenity, it’ll cut ■ Videoconference It: It’s the
                                                                                                             emissions and you may find, as next best thing to being there,
consultants A c c e n t u re, for                  – Sander van ’t Noordende, group chief executive          Sun Microsystems does, that it maybe better. V i d e o c o n f e r-
example, surveyed more than                                 of Accenture’s resources operating group         cuts real estate costs because em- encing avoids having to fly
7,500 consumers worldwide in                                                                                 ployees can share desks. The across the country or around the
17 countries and found more         with products or services that     providers, but it seems likely it     California computer giant has world for a 20-minute meeting.
than 90 per cent of Canadian        reduced carbon emissions and       will spread,” said Sander van ’t      saved more than $400 million HP’s Halo’s system, for example,
respondents are concerned           71 per cent said they’d pay        Noordende, group chief execu-         since it began its program and, or Cisco’s Telepresence, are full
about climate change.               more – an average of 10 per        tive of Accenture’s re s o u rces     inspired by the success,Telus has high-definition with stellar
   What’s more, 93 per cent of      cent more – to do their part.      operating group.                      launched a telework project for sound and create such a real illu-
Canadians said they would             “The initial impact may be          “From oil and gas companies        its 30,000 employees. The pilot sion of being fa c e - t o - face that
switch to an energy provider        most evident on energy             to retailers to financial services    program with 170 workers saved you’ll see the other guy sweat
                                                                       companies to governments, no          13,865 hours of commuting when you squeeze his margi n s .
PROGRAM from Page 9                                                    provider of products or services      time, avoided $125,000 in fuel Such state-of-the-art systems are
                                                                       will be immune from con-              and maintenance costs, reduced expensive, of course. There are

 Maximizing Aboriginal                                                 sumers’ scrutiny and action.”
                                                                          Whether B2C to B2B, show-
                                                                       ing – and proving – your com-
                                                                                                             greenhouse gas emissions by 114 cheaper in-house solutions that
                                                                                                             tons and air pollutants by four tap into your existing computer
                                                                                                             tons. Best of all, 82 per cent said network, or you can book time
                                                                       mitment to the cause is mission       teleworking actually made them in someone else’s videoconfer-
 job opportunities key                                                 critical. Large enterprises don’t
                                                                       want to be exposed doing busi-
                                                                       ness with an environmentally
                                                                                                             more likely to remain a Telus ence room.
                                                                                                             employee.
                                                                                                             ■ I n t e l l i ge t IT: A Canadian
                                                                                                                              n
                                                                                                                                                     ■ Offset Your Carbon: If you
                                                                                                                                                     simply have no choice but to fly
   “That’s going to be              if you weren’t president           dangerous supplier any more           Federation of Independent or drive for business, then offset
absolutely critical to the          and CEO of Enbridge                than they want to discove r           Business survey found 83 per your carbon emission by buying
success of any northern             anymore?                           they’ve been dealing with a           cent of small business said credits. Air Canada offers the
pipeline project.”                     “(Chuckling) I guess at age     sweatshop using child labour.         “green” fa c t o rs play a role when c redits through a partnership
18. What is Enbridge                61, I should be starting to           Even the most modest busi-         p u rchasing technology. Those with zerofootprint.com and
doing to create business            think about that, shouldn’t I? I   ness can take some simple steps       constantly running PCs, serve rs you’ll find a carbon calculator
opportunities for First             would probably get involved        to clean up its carbon footprint.     and printers not only draw there and at carbonzerocanada
Nations?                            with a renewable energy com-       It’s a great public-relation tool     power, but generate heat, .com that will help figure how
   “We have a very active           pany. I think renewable energy     to remind customers they’re           which, in turn, draws more much carbon your bu s i n e s s
Aboriginal involvement              companies have got just great      not adding to the pro blem            power to run the HVAC.That’s activities generate.
program. Every single project       futures, and (renewable energy)    facing our planet and it’s            why technology make rs includ- ■ Biofuels: If your business
that we undertake, we work to       is something that I believe in.    virtually painless.                   ing Hewlett Packard, Lenovo, involves a fleet of vehicles or
maximize the Aboriginal             I would (also) probably do a          Here’s a list of Top 10 sug-       Dell and Sun Microsystems are other motor-driven machinery,
opportunities.That flows            little bit of fly fishing and I    gestions:                             offering low-power, low-heat consider switching to biofuels.
primarily in the form of            would go relax someplace           ■ Switch It: Joseph Zanchin           systems that not only generate Ethanol is getting a bad rap
employment opportunities for        down in Scottsdale, Ariz. I        put his environmental commit-         less heat and use less power, because it takes more energy to
people along the way, during        would spend a little bit more      ment in lights – literally –          they’re also smaller, take up a lot make a litre of fuel than the fuel
either the construction of          time hiking and travelling the     installing a wind turbine atop        less space and are quiet. Some generates, but you could con-
the pipeline project or in          world a little bit, too. Right     his Richmond Hill Honda               a re all-in-ones, such as the sider biodiesel. Government
subsequent operation.”              now, I must admit, I’m not         dealership. Not only is the tur-      Apple iMac; others are cigar- regulation will soon dictate
19. What does Enbridge do           really anxious to get out and      bine a highly visible sign, it also   box sized and hang on the back diesel fuel at the pumps must
to prevent squabbles with           travel because I have to do so     generates 110 megawatts of            of the flat-screen LCD monitor. contain two per cent biodiesel
landowners – whether                much travelling with work.         power annu a l l y, enough to         ■ Don’t Waste It: Think oil – made from oilseeds such as
they’re Aboriginals or              But at some point in time, it      power 17 homes and will               about what you throw out. canola, soybeans or rapeseed –
other landowners – on               would be fun to travel for the     remove 82.5 tons of CO2 e m i s-      Could that old computer be rising to 20 per cent over the
pipeline routes?                    fun of it again.”                  sions a year. Businesses small and    donated to a computer for next few years.
   “We work very closely with          (Monte Stewart can be reached   large could also copy companies       schools program? Or will it just
our landowners.We can’t pre-        at monte@businessedge.ca)          such as Wal-Mart Canada and           end up in landfill? Hewlett See TOURS                         Page 19
vent squabbles. I’m sure you
can appreciate, for a company
with operations right across
North America, inevitably
you’re going to end up with
some.We have had very few
over time and have got very
good relationships. It really
starts from the outset when
you’re negotiating the right of
way and follows right through
to cleanup after construction
and day-to-day operation.”
20. What would you do
November 16, 2007                                                                                                                                                               Page 11




Conference sheds new light on solar potential
By Laura Severs                    Hospital uses solar thermal         that it’s used the price will go       power, which directly converts        thin-film PV technology, which
Business Edge                      technology, Page 16                 down – in most countries there         the sun’s radiation into electric-    is projected to grow from 6.5
                                                                       are solar incentives to compete        ity, is expected to grow by 40        per cent of the market in 2007
   t may be years before Can-                                          with the less clean and non-           per cent a year by 2011, accord-      to 19 per cent in 2011, and
I  adian companies see the light attended. “Each year it’s grow-
in terms of solar energy’s busi- ing,” she says. “Five years ago,
                                                                       renewable technologies.”
                                                                          Overall, solar could provide
                                                                                                              ing to a re p o rt from RBC
                                                                                                              Capital Markets called Investing
                                                                                                                                                    excludes equipment makers
                                                                                                                                                    and derivative industries.
ness potential, industry experts our counterparts in the United        between 15 and 20 per cent of          in Solar Now.                             Bush says the primary driver
and analysts say.                 States had 1,000 people. This        Canada’s energy, if not more,             Even though the argument           in the global demand for solar-
   “Canada is way behind in year they had over 9,000. We               says McDonald. However, she            for solar energy is powerful, it’s    energy development is the
the adoption of re n ewa ble expect that kind of growth (in            adds, “you need the incentives         just not cheap enough yet, says       increase in government incen-
energies,” says Dave Egles, the future).”                              to get the people going.”              Stuart Bush, lead altern a t ive      tive programs.
vice-president of business strat-    Even though Canada is con-           Carmanah’s Egles says there         energy equity analyst for RBC             “Japan and Germany have led
egy for Victoria-based Carm- s i d e red to be lagging when            are tremendous growth oppor-           Capital Markets and author of         the way, but we believe several
anah Te c h n o l ogies                       it comes to wide-        tunities in many are a s . The         the report.                           other countries will likely be
Corp., which offers SPECIAL REPORT spread adoption of                  c o m p a ny ’s solar pro d u c t s       “PV solar electricity produc-      starting or expanding similar
renewable and ener- ENERGY solar                           energy,     include solar airfield lights,         tion is pollution-free, does not      incentive programs,” says Bush.
gy-efficient tech-                            McDonald says the        pedestrian and 24-hour bea-            produce greenhouse gases, does            “We believe profits in the
nology services.                              conference       will    cons, p rogr a m m a ble school-       not tap into finite fossil-fuel       solar industry are here to stay, as
   While         many                         look at more effec-      zone flashers and construction         re s o u rces and can be easily       both public and government
countries in Europe                           tive ways to offer       hazard markers, marine lights          integrated into the urban infra-      support will likely re m a i n
and several U.S.                              va rious technolo-       for the U.S. Coast Guard, as           stru c t u re, close to major         s t rong until product costs
states have devel-                            gies such as solar       well as solar LED bus stops and        demand needs,” Bush writes in         organically compete with grid
oped solar programs                           heating or cooling       bus-shelter lighting kits.             the report. “However, despite         electricity,” Bush adds, stating it
and products, “Can-                           and     incorporate         In addition, it provides cus-       the positive qualities, solar elec-   could take anywhere from six
ada is still thinking that them into buildings.                        tomized solar electric systems         tricity costs are currently high-     to eight years for PV to rival
electricity and energy is too        “The business community is        for remote oil and gas applica-        er than electricity generated         traditional electrical grid rates.
cheap,” he adds.                  starting to be open to it – it’s a   tions, and standalone solar elec-      by a natural gas or coal-fired            It’s the kind of news that bu s i-
   That issue is one of many business that’s growing, and              tric systems designed for indus-       facility.”                            nesses such as Calgary-based
likely to be discussed at the there’s a lot of interest from the                           m
                                                                       trial or telecom u n i c a t i o n s      Silicon-cell PV solar technol-     S u s t a i n a ble Energy Techn-
national Solar Confere n c e financial community (as con-              applications.                          ogy installations, which cur-         ologies like to hear. The com-
2007, a three-day event Nov. ventional energy costs continue              “We’ve had a bunch of suc-          rently account for almost 95                 ,
                                                                                                                                                    p a ny which makes invert e rs –
19-21 in Toronto staged by to rise),” says McDonald. “It’s a           cesses because we’ve found a           per cent of the market, will          d evices that take solar energy,
the Ottawa-based Canadian totally clean energy. It’s a secure          core customer who re a l i z e s       book gross profits of about           convert it into power and adjust
Solar Industries Association energy.                                   what advantages solar brings,”         US$7.7 billion in 2007, grow-         voltage levels to optimize that
(CanSIA).                            “In some cases there may          says Egles.                            ing to $11.5 billion in 2011,         power – launched its solar pro d-
   CanSIA exe c u t ive director need to be retrofitting and find-        Worldwide, demand for solar         says Bush.                            uct just under two years ago.
Elizabeth McDonald says the ing out whether a building is              power is hot.                             His estimate does not include
c o n f e rence should be well appropriate for it. The more               Photovoltaic (PV) solar             p rofits from the altern a t iv   e   See SOLAR                 Page 17
                                      Page 12                                                                              November 16, 2007



                  See Page 22




           ★ 1: THOMPSON CREEK                                             ★ 2: NEO MATERIAL                                         ★ 3: OPEN TEXT




 Leslie looks for momentum in stock buys
  Beating ‘herd’                          PRO’S 3 STARS
                                                                           eye on them right now.”
                                                                           ■ Leslie’s Risk Rating: High
                                                                                                                supports around 46,000
                                                                                                                customers in 114 countries
                                                                                                                                                 in the U.S. are putting out
                                                                                                                                                 higher numbers with their
  to the punch                                    FIRST STAR
                                                                           ■ Web Watch:
                                                                           www.thompsoncreekmetals.com
                                                                                                                and 12 languages.
                                                                                                                ■ Vital Stats: Price/Earnings
                                                                                                                                                 stock trading at a higher
                                                                                                                                                 multiple, so I believe there is
                                      ■  Thompson Creek Metals                                                  Ratio, 69.40; Revenue (last      potential here.”
  his main aim                        (TSX:TCM)                                      SECOND STAR                fiscal year), $595.7 Million;    ■ Leslie’s Risk Rating:
                                      ■ Recent Price: $23.98               ■  Neo Material                      Earnings Per Share, 0.47;        Medium
   (Business Edge writer David        ■ 52-Week Range:                     Technologies (TSX:NEM)               Market Cap, $1.6 billion.        ■ Web Watch:
Hatton profiles the top stock         $24.15-$6.75 (10/29-11/17)           ■ Recent Price: $5.39                ■ CEO: John Shackleton           www.opentext.com
picks of some of Canada’s most        ■ Snapshot: Thompson                 ■ 52-Week Range:                     ■ Head Office: Waterloo
accomplished investment pros.)        Creek Metals Company Inc. is         $5.60-$1.80 (10/29-11/06)            ■ Leslie’s View: “A little bit      NOTE: This feature is
   FEATURED PRO: Keith                the fifth-largest producer in        ■ Snapshot: Neo Material             more pricey but (trading at)     provided for informational
Leslie is vice-president,             the world of molybdenum,             Technologies Inc. is a               17.8 per cent (times) earnings   purposes. Investors are
partner and portfolio                 a metal known for its ability        producer, processor and              for a 17-per-cent return         advised to do their own
manager with Hesperian                to resist corrosion and              developer of Neo powders,            on equity. One of their          research or consult a qualified
Capital Management                    withstand intense amounts            rare earths, and zirconium-          more interesting software        investment professional
(www.hesperiancapital.com).           of heat.These properties             based engineered materials           applications is a webcast        before making investment
   The six-year veteran of the        make it attractive in manufac-       and applications through             right on your desktop that       decisions.
firm manages the Norrep Q             turing everything from aircraft      its Magnaquench and                  operates similar to conference      (David Hatton can be reached
fund and is a co-manager of           parts to industrial motors.          Performance Materials                calls. Some of their peers       at hatton@businessedge.ca)
the Norrep Income Growth The company also owns the                         business divisions.
Fund. Calgary-based                                 Thompson Creek         ■ CEO: Constantine
Hesperian manages                                   open-pit molyb-        Karayannopolous
the Norrep series of                                denum mine and         ■ Head Office: Toronto
funds.                                              mill in Idaho, 75      ■ Vital Stats: Price/Earnings
   Fund form: As of                                 per cent of the        Ratio (ttm), 12.80; Revenue
Oct. 31, 2007, the                                  Endako open-pit        (last fiscal year), $27.8 million;
Norrep Q fund has a                                 mine, mill and         Earnings Per Share (ttm), 0.42;
year-to-date return                                 roasting facility in   Market Cap, $431 million.
of 18.05 per cent                                   northern British       ■ Leslie’s View: “This is a
and a three-year                                    Columbia, and          company that separates rare
annualized return of                                a metallurgical        earths to help create powerful
26.57 per cent.                                     roasting facility      magnets.The stock is not
   Management             Keith Leslie              in Langeloth, Pa. It   expensive and meeting
Expense Ratio:                                      is developing a        analysts’ expectations every
Two per cent                          high-grade molybdenum                quarter.The perfect world is to
   Leslie’s Perspective: “As          deposit near Smithers, B.C.          find a good stock like this that
a quantitative analyst, I’m           ■ CEO: Kevin Loughrey                no analysts are covering. A few
more concerned about the              ■ Head Office: Toronto               of them have already found it
numbers a company is                  ■ Vital Stats: Price/Earnings        though and more will likely
producing rather than who is          Ratio (ttm), 26.40; Revenue          come onboard over the next
sitting on their management           (last fiscal year), US$150.8         year or so.”
team.                                 million; Earnings Per Share          ■ Leslie’s Risk Rating:
   “We look for stocks at a           (ttm), 0.93; Market Cap, $2.7        Medium
good momentum that are                million.                             ■ Web Watch:
reasonably priced.That’s the          ■ Leslie’s View: “The                www.amr-ltd.com
key. I will also look at the          company is currently trading
trailing averages more than           at 14 times trailing earnings                 THIRD STAR
others, because that tells me         and has a 78-per-cent return         ■ Open Text (TSX:OTC)
more of a story. Generally            on equity. If you look at the        ■ Recent Price: $32.63
one good quarter will put a           last three quarters it shows         ■ 52-Week Range:
company on my watch list.             there is definite potential.         $34.30-$18.65 (08/09-11/02)
But we wait for two good              They have a product with             ■ Snapshot: Open Text
quarters and what trends              consistent demand and the            Corp. is a Waterloo-based
there are before trying to            company has managed its              provider of enterprise
buy it before the herd (other         balance sheet well. I am             content management soft-
analysts).”                           definitely keeping an                ware.The company says it
November 16, 2007   Page 13
Page 14                                                                                                                                                     November 16, 2007




  Fuel-cell deal sparks rise in Ballard shares
                                                                                                                                                ironically lacking volatility
  Daimler, Ford                          BALLARD POWER SYSTEMS                                            BIOMIRA INC.                          after the news, merely holding
                                                                                                                                                flat after a six-month fall off
   successful                                                                                                                                   highs near $25.
                                                                                                                                                    Act IV: The ‘rite’ stuff
  suitors in sale                                                                                                                               ■ The Playe r: Rockcliff
                                                                                                                                                Resources Inc. (TSXV:RCR)
    of division                                                                                                                                 ■ Action: Up 28 per cent
                                                                                                                                                or $0.23 in a month (from
   (Street Life is a regular feature                                                                                                            $0.82 Oct. 5)
that profiles what’s playing in the                                                                                                             ■ Recent Price: $1.05
stock market.)                                                                                                                                  ■ 52-Week High/Low:
                                                                                                                                                $1.23/0.19
By Nicole Strandlund                                                                                                                               Say pyrite, pyrrhotite
Business Edge                                                                                                                                   chalcopyrite and sphalerite to
                                                                                                                                                a miner, and he’ll tell you
  Act I: Buy low, cell high                                                                                                                     you’ve found the “rite” stuff.
■ The   Player: Ballard                         SAXON FINANCIAL                                   ROCKCLIFF RESOURCES                              Sudbury-based Rockcliff
Power Systems (TSX:BLD)                                                                                                                         Resources can boast that very
■ Action: Up five per cent                                                                                                                      news.
or $0.23 in a month (from                                                                                                                          The exploration company
$4.91 Oct. 5)                                                                                                                                   drilled seven holes in central
■ Recent Price: $5.15                                                                                                                           Manitoba and all holes have
■ 52-Week High/Low:                                                                                                                             mineralization.
$9.15/4.32                                                                                                                                         More specifically: Intersected
   The rubber has finally hit                                                                                                                   volcanogenic massive sulfide
the road.Vancouver’s Ballard                                                                                                                    (VMS)-style mineralization.
Power Systems Inc. shares                                                                                                                       What does that mean?
closed at $5.15 (up 16 cents)                                                                                                                   Copper, zinc, lead, gold and
on the confirmation that                                                                                                                        silver, hopefully.
Ballard is selling its auto                                                                                                                        Drill core samples have
fuel-cell business to Daimler                                                                                                                   been sent for analysis to
AG and Ford Motor Co. In                                                   2008, the listing can stay.           Volatility and credit issues   Acme Analytical Labs in
response to rising shareholder
                                           STREET LIFE:                       That may be a tough sell,       rocked the market this quarter,   Vancouver.
excitement, Ballard officials                ANALYSIS                      though, considering Biomira’s      but even when a financial            These samples were taken
played footsie with the                                                    latest third-quarter financials.   company came out unscathed,       from the Rail Property on the
news until the day of the              (from $0.88 Oct. 5)                 The company’s net loss             investors didn’t seem             Snow Lake VMS Project, a
announcement on Nov. 8,                ■ Recent Price: $0.57               grew $3.1 million to $6.8          impressed.                        property in which Rockcliff
warning no deal had been               ■ 52-Week High/Low:                 million in the three months           Toronto-based Saxon            has the exclusive right to
inked.                                 $1.95/0.51                          ending Sept. 30, 2007              Financial Inc. announced a        earn a 100-per-cent interest
   Daimler currently owns                 It’s never good to get stroked   (compared to $3.7 million          17-per-cent higher profit in      from a subsidiary of HudBay
around 19 per cent of Ballard,         off the guest list, but at least    in the same quarter last           Q3 2007 than the same             Minerals Inc. (TSX:HBM).
and Ford owns 11 per cent.             receiving a warning ahead of        year), and revenue was down        quarter in 2006, up to $4.6          Rockcliff stock opened
They say they will now                 time softens the blow.              to $1.2 million from $1.7          million from $3.9 million.        at $0.88 the day of the
swap these 34.3 million                   Biomira Inc., the Edmonton       million in Q3 2006.                   Revenue was up to $13.9        news, to hit a high of $1.14.
shares for the auto assets and         biotech company focusing on            Biomira shares on TSX           million from $12.3 million in     HudBay shares dropped
move to create a private               cancer therapeutics, recently       hit a new 52-week low              Q3 2006, and assets under         four per cent to close at
company focused on fuel-cell           got a letter from Nasdaq            and dropped 12 per cent in a       management rose by $1.1           $25.23 the day of the
technology projects. Pending           warning that since the              day to close at $0.57 the day      billion to $13 billion.           announcement.
all regulatory and shareholder         company’s Nasdaq shares             of the announcement.                  Saxon has three principal         NOTE: The above is
approvals, Ballard expects to          (Nasdaq:BIOM) have                   Act III: It’s a tough crowd       businesses – one that manages     not intended as investment
realize an estimated gain on           closed under $1 for the 30          ■ The Player: Saxon                a family of mutual funds; an      advice to buy or sell any
the transaction of $95 to $105         days preceding the letter,          Financial Inc. (TSX:SFI)           institutional asset management    mentioned securities. Investors
million.                               Biomira is at risk for              ■ Action: Down four per            business; and a private client    should do due diligence
      Act II: Off the list             delisting.                          cent or $0.90 in a month           asset management business –       before investing. Quotes are
■ The Player: Biomira Inc.                If, however, BIOM shares         (from $22.09 Oct. 5)               also announced a $0.23            based on results through
(TSX:BRA)                              close at $1 or higher for           ■ Recent Price: $21.19             dividend payable at the           Nov. 5, 2007.
■ Action: Down 35 per                  at least 10 consecutive             ■ 52-Week High/Low:                end of November.                     (Nicole Strandlund can be
cent or $0.31 in a month               trading days before April 30,       $24.89/20.20                          In response, Saxon stock was   reached at nicole@businessedge.ca)
November 16, 2007                                                                                                                                                       Page 15




Securit shuffles management after plane crash
Business Edge                                                           markets. Its head office is in    Toronto,Vancouver and              CFO. She has prior experience
                                        MOVING ON                       Mississauga.                      abroad.                            acting as the CFO of public
  Securit Information                                                               ■ ■ ■                            ■ ■ ■                   mining companies. Joseph
Security has made its long-         investigation. Peace Arch has          Aurelian Resources Inc.          Challenging headwinds for        Giuffre has been appointed as
time board of advisers a board      three operating divisions –         (TSX:ARU) has named Keith         the Canadian beer market and       the Toronto company’s new
of directors and appointed          film, television and home           McKay as its CFO. McKay is        the failure of Brick Brewing       corporate secretary. He is
Robert Warshauer as                 entertainment. Its head office      a chartered accountant with 25    Co. Ltd. (TSX:BRB) to find         founding partner in Axium
president and CEO. Securit’s        is in Toronto.                      years of financial experience,    a potential buyer has led its      Law Corp. Formed in August
founder and former president                    ■ ■ ■                   most recently as senior VP of a   chief executive, Doug              by the amalgamation of
and CEO, Greg Brophy, was              Bird Construction                worldwide engineering and         Berchtold, to exit the com-        Morgain Minerals and Aurogin
killed Sept. 30 in a plane crash    Income Fund (TSX:                   project management services       pany. He joined the brewer in      Resources, Castle Gold’s focus
in Alaska.The ownership of          BDT.UN) says that Michael           firm. Aurelian explores for and   early 2004. Berchtold’s role       is on precious metals in
Securit was transferred to his      Martin, CFO and assistant           develops mineral projects in      wraps up after what founder        Mexico and Central
wife, Tracey Brophy. Greg           secretary of Bird Con-              Ecuador. Its head office is in    and executive chairman Jim         America.
founded Shred-it, the onsite        struction Co. Ltd., is leaving      Toronto.                          Brickman referred to as an                      ■ ■ ■
document-destruction division       to pursue other business inter-                 ■ ■ ■                 “intensive” company review            True North Corp. says
of Securit, in 1988. Securit’s      ests. He has agreed to remain         CML Healthcare Inc. and         that started in May and “took      Alan McMillan is its new
head office is in Oakville.         as CFO until March 28. Bird is      CML HealthCare Income             a fair bit more time than we       CEO, succeeding Rick
            ■ ■ ■                   a general contractor with           Fund (TSX: CLC.UN) have           thought.” In addition to its       Camilleri who will work
  AOL Canada Inc. has               offices in Toronto,Winnipeg,        named Kent Nicholson to           Brick craft brews, Brick           with McMillan during the
promoted Joseph Arcuri to           Calgary, Edmonton,Vancouver         the newly created post of         Brewing makes Laker, Red           transitional period. McMillan
general manager. In his new         and Seattle.                        COO. Nicholson was formerly       Cap and Formosa Springs            comes to True North with
role, Arcuri will oversee all                   ■ ■ ■                   divisional VP for petroleum       Draft. Brickman founded the        20 years in the technology
Canadian operations. He suc-           Sun Life Financial Inc.          operations and business devel-    company in 1984.                   business.True North is a
ceeds Jonathan Lister, who          (TSX, NYSE:SLF) is making           opment of Canadian Tire.The                  ■ ■ ■                   technology-enabled marketing
will be moving to London,           changes to its executive ranks      fund is an open-ended trust         Marketing services company       services company serving
England, to become senior VP        effective Jan. 1 to help acceler-   that owns CML HealthCare          Pareto Corp. (TSX:PTO) has         Fortune 2000 companies. It is
of operations for AOL Europe.       ate its growth in the wealth        Inc., which provides laboratory   appointed Karen Trudell as         headquartered in Mississauga
AOL Canada has its head             and retirement markets. Kevin       testing services in Ontario and   CFO. She replaces Clint            and trades as TN on the
office in Toronto and is a          Dougherty, president of Sun         medical imaging services across   Becker, who left to become         Venture Exchange.
wholly owned subsidiary of          Life Financial Canada,              Canada. Its head office is in     CFO of Marketwire, a private-                   ■ ■ ■
AOL LLC of Dulles,Va.               becomes president of Sun Life       Mississauga.                      ly owned newswire.Trudell is         Hi Ho Silver Resources
            ■ ■ ■                   Global Investments. Dean                        ■ ■ ■                 a chartered accountant and was     Inc. (CNQ:HIHO) says that
  Tom Flynn, executive VP           Connor, executive VP, suc-            Draxis Health Inc.              formerly CFO of Lakeport           director Jamie Rainbird has
for finance and treasurer,          ceeds Dougherty. Robert             (TSX:DAX, Nasdaq:DRAX)            Brewing Income Fund from           been appointed CFO. Rainbird
becomes acting CFO for              Salipante, president of Sun         says that its president and       2002 to 2007. Pareto is head-      brings extensive financial and
BMO Financial Group                 Life Financial U.S., will take      CEO, Dr. Martin Barkin,           quartered in Toronto.              business experience, and is
while Karen Maidment is on          the added role of leading a         will retire at the end of the                ■ ■ ■                   president and CEO of Intigold
medical leave. She will be          new international variable          year. Dan Brazier, the COO,         Arbor Memorial Services          Mines Ltd. He succeeds
available for consultation.The      annuity centre. Tom Bogart,         will take on Barkin’s duties      Inc. (TSX:ABO.A, ABO.B)            Wayne Turgeon, who will
bank has its head office in         executive VP and general            until a successor is appointed.   says its president and CEO,        continue as a consultant.
Toronto.                            counsel, will also become           Draxis Health, through its        Richard Innes, is retiring.        Hi Ho Silver Resources is
            ■ ■ ■                   chairman of subsidiary com-         wholly owned operating            Arbor owns cemeteries and          based in Mississauga.
  Michael Morrison has              panies Sun Life Insurance           subsidiary Draxis Specialty       funeral facilities in eight                     ■ ■ ■
been named VP and general           (Canada) Ltd. and Sun Life          Pharmaceuticals Inc., provides    provinces. Its head office is in      Pizza Pizza Ltd. has
manager for financial perform-      Assurance Co. of Canada             medical products. Its head        Toronto.                           announced that Daniel
ance management at Cognos           (U.S.). Sun Life Financial is an    office is in Mississauga.                    ■ ■ ■                   Vukovich, its COO, is leaving
(TSX:CSN, Nasdaq:COGN).             international financial services                ■ ■ ■                    Tarquin Group Inc.              to pursue other interests but
Morrison comes from Applix,         organization with its head            Uranium One Inc.                (TSXV:TQN) says that CFO           will remain a director of Pizza
where he served as chief            office in Toronto.                  (TSX:UUU) has appointed           Jennifer North is resigning        Pizza GP Inc. Michael
operating officer. Cognos                       ■ ■ ■                   Dennis Stover as executive        but has agreed to remain to        Overs, CEO of Pizza Pizza
provides enterprise planning           Genesis Worldwide Inc.           VP for the Americas. He was       allow the company time to          Ltd., has assumed responsibility
and business intelligence           (TSX:GWI) has appointed             previously COO of Energy          find a replacement.Tarquin         for the company’s daily
software and services. Its head     Jack Scivoletto as president        Metals Corp. Donna Wichers        aims to become a diversified       operations. Pizza Pizza Ltd. is
office is in Ottawa.                of subsidiary KML Engineer-         has been appointed senior VP      industrial technology company      a privately held Canadian
            ■ ■ ■                   ed Homes Ltd., which does           for ISR operations. She was       providing services to the global   corporation with head office
   Peace Arch Enter-                business as KML Building            previously senior VP for ISR      manufacturing market. Its head     in Toronto. It operates
tainment Group Inc. says            Solutions. Scivoletto has           operations at Energy Metals.      office is in Ottawa.               franchised and corporate
it has placed CEO Gary              managed his own business            Paul Clarke has joined                       ■ ■ ■                   restaurants under the brand
Howsam on administrative            involving land acquisition, land    Uranium One as senior VP            Castle Gold Corp.                names Pizza Pizza and
leave following his arrest in       development, financing and          and branch chief for              (TSXV:CSG) says its CFO,           Pizza 73.
connection with a U.S. federal      final build-out. Genesis devel-     Kazakhstan, working in            Michael Farrant, has resigned                         – with files from
investigation into certain trans-   ops and licenses structural         Almaty. Clarke was most           his position to pursue other                    The Canadian Press.
actions prior to his joining        building technology aimed at        recently with Highland Gold       business activities. Castle Gold      (E-mail notices and photos at
Peace Arch in 2003. Peace           the residential, commercial         Mining Ltd. in Moscow.            has appointed Maricruz             least two weeks before publication
Arch is not a party to the          and institutional building          Uranium One has offices in        Alvarado, CGA, as interim          date to murdoch@businessedge.ca)


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Page 16                                                                                                                                                                       November 16, 2007




 Hospital looks to reduce carbon footprint
  Company handles solar thermal
  system’s financing, management
By Saul Chernos                         and lower their environmental
Business Edge                           footprint, all at a locked-in cost
                                        that’s displacing their existing



T
                 oronto’s Hospital for fossil-fuel bill,” says Mondial
                 Sick Children is p resident and founder Alex
                 getting a new solar Winch.
                 thermal hot-water        “If you own a bu i l d i n g ,
system.                                 you’re committed to bu y i n g
   And, thanks to an arrange- energy forever, until you sell
ment with an intermediary that that building. Our customers
specializes in financing and realize that it’s more advanta-
managing this energy-saving geous to lock in energy prices
technology, the hospital won’t than floating with the price of
face any up-front capital or natural gas.”
c o n t i nuing maintenance ex-           With the Woodgreen non-
penditures.                             profit housing contract and
   The intermediary, Toronto- three similar projects under its
based Mondial Energy Inc., is belt, Mondial landed a major
serving as financier, p ro j e c t customer this past summer –
manager and owner of the solar the Hospital for Sick Children                                                                                      Photo courtesy of Mondial Energy Inc./Newscom
panels, heat exchangers, hold- in Toronto.                                   Mondial president Alex Winch checks out the solar panels on the roof of the Woodgreen project.
ing tanks and other pieces of             Nearly 100 solar ro o f t o p
infrastructure that can cost sev- panels are being connected to a
eral hundred thousand dollars heat exchanger, which will
but reduce long-
term energy costs SPECIAL REPORT age tanks that can
                                                    transfer heat to stor-     Looking for an Edge
by using the sun’s ENERGY hold 480 gallons of
rays to heat water
for everyday use.
                                                    hot water. The sys-
                                                    tem is designed to
                                                                               in your marketing strategy?
   Founded in 2004,                                 s t o re solar energy
Mondial
financed solar ther-
                       has                          for      use    when
                                                    demand is high but         Look no further!
mal systems for four                                the sun might not
non-profit residen-                                 be shining.                With its editorial excellence and unrivalled distribution, Business Edge News Magazine
tial buildings to                                       Currently,     the     presents an affordable and highly effective vehicle through which your business can speak
date.                                   hospital purchases steam from          directly to a massive audience of high-income consumers and business decision makers.
   Earlier this ye a r, Mondial Enwave Energy for hot-water
oversaw the installation of 108 generation, and Winch says this                Compelling editorial content has always been a foundation of our business, but
glazed flat-plate rooftop solar conventional system will                       the Edge’s distribution to 181,000+ Canadian companies truly sets us apart from
collectors and other compo- remain online for cloudy days.
                                                                               our competitors.
nents at one of these, a 170-             He adds, however, that when
unit complex operated by the Mondial system is installed                       Business Edge advertisers can target any or all of our four editions
Woodgreen                 Commu n i t y – the target is December – the
Services in Toronto.                    hospital stands to offset more         (Ontario, Man/Sask, Alberta and B.C.), reaching the majority of business addresses
   Proponents say the system than 750,000 lbs. of steam a                      in the major centres. There is always comprehensive coverage of the downtown districts
will generate one-third of the year.                                           in Toronto, Vancouver, Calgary and Edmonton. Rotating distribution, meanwhile, ensures
bu i l d i n g ’s annual hot-water        Mondial will meter the ener-         that over the course of two issues advertisers can reach about 98 per cent of business
requirements, reduce reliance gy delivered to the hospital’s                   addresses through Canada Post in all of the cities below.
on natural gas, ease the load on domestic hot-water system and
c o nventional boilers and allow the hospital to monitor                       Minimum number of businesses reached per edition*:
reduce Woodgreen’s annu a l its energy use in real time.
carbon-dioxide emissions by               Fred Girvan, the hospital’s           Toronto     33,000          Winnipeg  9,300          Calgary       28,000           Vancouver      26,000
more than 60 tonnes.                    director of facility operations,        Mississauga 11,200          Saskatoon 3,100          Edmonton      14,500           Richmond        4,200
   In much the same way a util- says the immediate advantage is                 Markham      3,900          Regina    2,900          Red Deer       1,800           Surrey          4,300
                                                                                Ottawa      10,700                                   Grand Prairie  1,300           Burnaby         2,300
ity charges for supplying elec- environmental – the facility
                                                                                London       5,250                                   Fort McMurray 1,250            New Westminster 1,600
tricity, oil or natural gas, expects to save roughly 95,000                                                                          Banff            200           Victoria        4,350
Mondial earns revenue by tonnes of greenhouse gases                                                                                  Canmore          225           Nanaimo         1,350
billing for energy at pre-estab- annually.                                                                                           Lethbridge     1,500           Kamloops        1,550
lished long-term rates.                   He anticipates economic                                                                    Cranbrook      1,000           Kelowna         2,500
   Rather than building its own returns, but on a gradual basis.                                                                                                    Vernon          1,100
solar thermal hot-water system “We’re looking at purchasing
– at a cost Mondial estimates at somewhere around $20,000 a                    * Individual city circulation numbers are all more than 50% of total business addresses per city based on Canada
                                                                               Post unaddressed mail data as of July 31, 2007.
$200,000 – and being responsi- year worth of energy fro m
ble for any maintenance,Wo o d- Mondial, which in our big
green will pay only for solar overall energy budget is very                                    Contact us now for more information
thermal energy delivered at a small.We’ll have to run it for a                                   on advertising in Business Edge
rate fixed for 10 years under a year to see just how this works
contract that is re n ewable.           out.”                                                        1.866.216.3343 ext 25
   “Our customers put up                                                                             Ads@BusinessEdge.ca
nothing, lock in a volatile cost, See CONSUMER Page 19
November 16, 2007                                                                                                                                                               Page 17



Troubled autoparts makers’ profits expected to fall
                                      from $1.7 billion last year.         from light trucks, minivans and       Big T h ree will incre a s i n g l y   Deripaska’s       Moscow-based
  Strong loonie                          “The recent strength of the       SUVs, which are becoming              diversify supply base in favour        Basic Element, would open
                                      Canadian dollar will ero d e         increasingly unpopular.               of lower-cost foreign parts,” the      doors to the bu r g e o n i n g
 among reasons                        profits for Canadian parts pro-         Finally, foreign competition is    report predicts.                       Russian car market, one of the
                                      ducers, as motor vehicle assem-      stiffening. China, which seven           Fo rtunately, Canadian pro-         fastest-growing in the world.
  for problems                        blers scale down auto exports in     years ago accounted for a mere        ducers Magna International                Linamar, a Guelph company
                                      response to slowing U.S.             1.6 per cent of parts imported        Inc. (TSX:MG.A) and Linamar            which has operations in North
The Canadian Press                    demand,” the report says.            by the U.S., last year supplied 5.8   Corp. (TSX:LNR) are also               America,       Germ a ny     and
                                         But the dollar is not the only    per cent of U.S. imports. Also,       expanding their customer base,         Hungary, has been expanding
  Profits for Canada’s battered       factor impinging on the sector,      Mexico has recently overtaken         the re p o rt adds, noting that        in Europe and recently raised
autoparts makers are expected         the board’s report adds.             Canada as the largest exporter of     Magna increased its sales to           its stake in its Hungarian unit
to tumble this year in response          The biggest customers for         a u t o p a rts to the U.S.           Europe by 20 per cent in the           and hopes to take the company
to the strong loonie, stiff for-      the Canadian parts sector are           The restructuring Big Three        last quarter alone.                    private.
eign competition and low              the Big Three (GM, Ford and          have already cut thousands of            Magna, Canada’s largest                In its report, the Conference
demand for domestic-made              Chrysler), which are increas-        jobs in Canada, with spillover        autoparts company, has struck a        Board says real autoparts pro-
vehicles, the Conference Board        ingly losing out to fore i g n       effects on their suppliers, main-     deal to sell a 42-per-cent stake       duction fell 7.7 per cent last
of Canada says.                       brands.                              ly in Ontario.                        in the company to a Russian            year and is expected to fall
  The Conference Board fore-             And       historically,    the       However, Japanese companies        billionaire for US$1.54 billion.       another 4.5 per cent.
casts profits will fall 41 per cent   Canadian parts suppliers have        Toyota and Honda have                    Under that transaction, 39-            But it sees conditions
to about $1 billion in 2007,          generated the largest business       expanded their assembly plants        year-old Russian magnate Oleg          improving slightly in the next
                                                                           in the province as they take          Deripaska, who has close ties to       few years, with the opening of
   Air Canada, Lufthansa expand                                            more market share away for
                                                                           their North American-based
                                                                                                                 President Vladimir Putin, gets
                                                                                                                 to nominate six members of a
                                                                                                                                                        the new Honda engine plant in
                                                                                                                                                        Alliston next ye a r, and the
                                                                           rivals.                               14-member board of directors           expansion of global supply
    their trans-Atlantic service                                              “In the face of the apprecia-
                                                                           tion of the Canadian dollar and
                                                                                                                 of a new holding company that
                                                                                                                 will control Magna.
                                                                                                                                                        chains. The re p o rt estimates
                                                                                                                                                        profits will rebound by 6.3 per
The Canadian Press                    partners in the 17-member Star       declining North American                 Magna says the deal with            cent in 2008, 3.5 per cent in
                                      Alliance, which also includes        motor vehicle production, the         Russian Machines, owned by             2009 and 6.8 per cent in 2010.
  Air Canada (TSX:AC.A) will          United Airlines and US
begin daily non-stop flights          Airways of the United States,
between Ottawa and Luft-              Scandinavian Airlines and
hansa’s main hub in Frankfurt,        Singapore Airlines.
Germany, starting next June,             Air Canada said its flights on
the Montreal-based airline            the new route are scheduled to
announced as Lufthansa un-            depart Ottawa at 7:35 p.m.,
veiled plans to expand its            arriving in Frankfurt at 8:55
Canadian service.                     a.m. the following day. Flights
  Lufthansa said its new              will depart Frankfurt at 2:15
Calgary-Frankfurt daily non-          p.m., arriving in Ottawa at 4:45
stop route will begin operating       p.m.
next April using a 221-seat              For Lufthansa, its flights will
Airbus A330-300.                      depart Calgary at 2:45 p.m. and
  Air Canada will operate             arrive in Frankfurt at 7:55 a.m.
between Ottawa and the                local time the next day. The
German business centre using          re t u rn flight will leave
211-seat Boeing 767-300 air-          Frankfurt at 11:10 a.m. and
craft.                                arrive in Calgary at 12:50 p.m.
  The two airlines are both           local time the same day.

SOLAR from Page 11

   Ontario is emerging as
   potential energy market
   “We’re focusing our resources      like ourselves who have created
where the biggest growth and          technologies and are creating
biggest potential is, and that’s in   products based on those tech-
Spain, in Italy and Greece,” says     nologies, which will sell, but
S u s t a i n a ble Energy CEO        there’s an interesting dichoto-
Michael Carten. “We don’t sell        my. I think the average man on
it in Canada – there’s a very         the street wants to see solar,
small market here. The only           but the politicians, with the
potential market is Ontario, and      exception of Ontario, are gen-
that’s only been a real market        erally opposed,” says Carten.
for the past 12 to 18 months             You can’t ask the business
and it’s still just emerging.”        c o m munity to take on the
   Carten is re f e rring to          challenge of developing solar
Ontario’s standard offer pro-         energy if the community itself
gram, where the provincial            isn’t ready to support it, he
government set a fixed price          adds.
for small re n ewa ble energy            “The message I try to get
projects. For solar, the fixed        across to people is you have to
price is 42 cents per kilowatt-       take responsibility for your own
hour and it’s designed to spur        life; it can be done at the com-
new solar energy projects.            munity level, at the municipal
   For solar to succeed in            level, at the provincial level –
Canada, C a rten says there must      they have the legi s l a t ive
be a strong push from the             authority.”
public.                                  (Laura Severs can be reached at
   “There are some companies          laura@businessedge.ca)
                                     Page 18                                                                                November 16, 2007
                                                                                                                                                         don’t grow it alone
  New Life Capital
  Helps You Profit
     See Page 12                                                                                                                                                 See Page 8




    ‘Smart closet’ can suit you up for success
By Tess van Straaten                                                                                                                                      “Sensors in the garments
Business Edge                                                                                                                                          enable us to monitor people’s
                                                                                                                                                       vital statistics and activity levels
   f you’ve ever stood in front of                                                                                                                     – when they get up, wa l k
I  your closet trying to figure
out what to wear for an impor-
                                                                                                                                                       a ro u n d , make bre a k fast and
                                                                                                                                                       dinner, or sleep,” Thomas
tant meeting, a new high-tech                                                                                                                          explains. “The technology can
wardrobe invention might be                                                                                                                            distinguish between normal
just the thing for you.                                                                                                                                and abnormal events, and alert
   The “smart wardrobe” keeps                                                                                                                          family or emergency services
track of when you wore an                                                                                                                              or, for people who live in
item, w h e re you wo re it,                                                                                                                           retirement villages, alert local
and can even tell you when                                                                                                                             medical staff if there’s a
your clothes need to be dry-                                                                                                                           problem.”
cleaned.                                                                                                                                                  There’s no word yet on how
   D eveloped by Australian                                                                                                                            much technology such as this
researchers, the garment gizmo                                                                                                                         might cost for the average user.
is being touted as a dress-for-                                                                                                                           The invention is still a lab
success solution that could give                                                                                                                       prototype and researchers aren’t
busy people the edge to get                                                                                                                            sure when it will be available in
ahead.                                                                                                                                                 Canadian closets, but many
   “The wardrobe can tell you                                                                                                                          professionals are already inter-
that you have a meeting this                                                                                                                           ested in how it can help them
morning with Joe Bloggs, that                                                                                                                          suit up for success.
you have worn the same shirt                                                                                                                              “It’s one less thing you have
the last three times you met                                                                         Photo courtesy of University of South Australia   to worry about in today’s busy
him and that maybe you should        PhD student Aaron Toney, left, and final-year computer systems engineering student Wynand                         world,” Gotlib says. “You don’t
wear something else or he                                                                                                                              have to worry about what you
will think you only have one
                                     Marais check out the University of South Australia’s ‘smart wardrobe’ system.                                     h ave to wear and whether
shirt,” says Prof. Bruce Thomas,     their smart garments,” Thomas        they don’t like what an anchor      flashing LED light in the cuff of        you’ll match. If a computer
d i rector of the wearable           explains. “The technology en-        or reporter is wearing.             your jacket.                             chip can map that out for you,
computer laboratory at the           ables wireless monitoring, data         “I’ve heard the calls come          “It will allow (business peo-         that’s great.”
University of South Australia.       downloads and many other             into the newsroom and while         ple) to keep information with               Image consultant Kilgour
   If you’re not sure what tie       features.”                           it’s disappointing people are       them at all times,”Thomas says.          agrees and thinks that many
matches your suit, if your skirt        The fashion features may          calling about someone’s outfit      “The suit becomes the data               of her clients would find the
is too tame for your new animal      sound frivolous to some, but         instead of their story, it’s        repository, letting people have          technology a huge timesaver.
print pumps, or whether you          business coaches and image           evidence of the fact that what      technology in their garments,            However, she’s quick to point
should go business casual or         consultants disagree.                you wear is scrutinized.”           but still use them in a normal           out that if you don’t have the
dressy for a weekend dinner             “Image is pretty important           Fashion faux pas aside, the      fashion.”                                right items in your closet to
with the boss, researchers say       and for some people it’s             smart-wardrobe technology can          The technology may also be            begin with, the sensors won’t
the smart wardrobe can tell you      critical,” says Diana Kilgour, of    also be adapted to pre l o a d      a lifesaver – literally. That’s          be able to give you style.
that, too.                           Image Consulting Vancouver.          news, music and daily schedules     because the smart suit doesn’t              “If you have a closet full of
   “This technology can help            Styling and dressing British      into smart garments.                miss a beat. It can monitor your         clothes that don’t work well
people make the most of              Columbia’s business elite for           And it gets better. Your         heart rate and other vital statis-       together, if the items are dated,
accessorizing and mixing their       over 25 years, Kilgour does          clothes will not only be able       tics. With an aging population,          ill-fitting or don’t flatter you,
wardrobe,” explains PhD stu-         image checkups and in-home           to alert you to incoming cell-      Thomas says future uses could            computer chips aren’t smarter
dent Aaron Toney, who devel-         “ wa rd robe therapy ” to help       phone calls during meetings,        include monitoring outpatient            enough to know that – at least
oped an alert function that          clients co-ordinate their closets.   but you’ll also be able to deter-   c a re and whether elderly               not yet.”
notifies smart-ward robe users       She says things like bad shoes,      mine whether a call is impor-       people are missing meals or                 (Tess van Straaten can be reached
when garments need to be dry-        dated suits and inappropriate        tant – all by looking at a tiny     falling over.                            at tess@businessedge.ca)
cleaned and even tracks cleaner      attire can have an impact on
pickups and deliveries.              your success at work.
   “It can also be connected to         “When things get in the way
an autonomous fashion butler         of us and our message – what
on the Internet, which can           we have to offer, what we can
suggest clothing choices for         d e l iver, what we can do –
casual or formal outings with        people won’t be as interested in
accessories to match.”               what we have to offer because
   The garment-integrated elec-      their mind is engaged by what’s
tronic technology works by           wrong with us.”
linking electronic hangers and          In a business where what you
clothes embedded with tiny           wear can be almost as impor-
electronic panels to an in-closet    tant as what you say, CTV
computer.                            Edmonton weekend news
   The panels, which are sewn        anchor Joel Gotlib couldn’t
into a collar or sleeve where        agree more.
they can’t be seen, store data          “If you look good, if you
such as the colour, fabric and       look presentable, it’s to your
cleaning instructions for a          benefit,” Gotlib says. “You’re
particular garment.                  coming into people’s liv i n g
   “When electronic hangers,         rooms and they have to like
each with their own ID and           what they see.”
metal connection, are placed on         A television personality for
the rail, the metal band in the      15 years, Gotlib says viewers
rail detects the hangers and         will call in to complain when
November 16, 2007                                                                                                                                                                                    Page 19

CONSUMER from Page 16                                                         TOURS from Page 10


  Solar-thermal deal Hummer operator’s moves
  considered unusual offset negative perceptions
   Girvan adds that if energy       systems can generally be suffi-
prices continue to rise – some-     ciently small-scale to enable a               But some businesses have                        ■     Green Starts at Home:              would create a paperless socie-
thing he expects – then the         degree of self-sufficiency and            gone a step further, like                           Most small businesses don’t have         ty. Yet you can cut paper con-
Mondial deal will ultimately        independence from utilities,              Canadian Hummer Adventures                          the resources to custom-build a          sumption by making a con-
prove cost-effective.               but the systems can also require          ( c a n a d i a n h u m m e r a d ve n t u re s .   n ew headquarters to meet                scious effort.Take a look at the
   Adam Hinckley, an alterna-       significant expertise and moni-           com), which offers year-round                       LEED (leadership in energy and           filing cabinets stuffed with
tive energy equity analyst with     toring.                                   off-road Hummer tours in the                        environmental design) standards          paper. Do you really need
CIBC World Marke t s , says            “The utility model exists to           Collingwood area of Georgian                        such as Manitoba Hydro’s new             them? Could you use the space
power-purchase agreements are       address nuisance. That’s what             Bay. To offset negative percep-                     Winnipeg headquarters. It                for something else? Have faxes
popular in North America, and       Mondial does for a living –               tions about the Hummer’s fuel                       incorporates state-of-the-art            delivered to the desktop, stop
he’s heard of 20-year agree-        they install these things so that         consumption, founder Andrew                         t e c h n o l ogy in energy efficiency   printing e-mails. Scan receipts
ments.                              the Hospital for Sick Children            Miller buys his fuel in the form                    and env i ronmentally friendly           as PDFs and store them digital-
   He explains that it can make     doesn’t have to worry about               of used potato-chip oil and has                     design.A small business, though,         ly and switch to a digital
sense for companies that spe-       choosing one or maintaining it,           converted his vehicles to run                       could either lease space in a            invoicing system. Ask clients
cialize in building or managing     or worrying about having a sta-           on it.                                              LEED-certified building or,              and suppliers if they would like
energy-producing facilities to      tionary engineer with an                  ■ Keep Cool: Business dress                         perhaps, choose a location close         to receive or send invoices elec-
own and maintain them and           expertise in solar power.”                used to be a three-piece suit,                      to a train or subway station, or         tronically to cut down paper.
sell the electricity.                  Mondial contracts work to              but few people see it as the                        re t rofit lighting with systems         And finally, look at the paper
   “It’s a no-brainer from the      specialist companies. Tay l o r           norm these days. Many compa-                        from Fifth Light (fifthlight.            you’re using. Xerox recently
point of view of the con-           Munro Energy Systems, an                  nies institute a casual-clothes                     com), whose technology dims              launched high-yield bu s i n e s s
sumer,” Hinckley says. “They        energy-systems manu fa c t u re r         summer policy that allows                           fluorescent lights by up to 75           paper that will be made in
put no money up front, they         based in Delta, B.C., designed            employees a more relaxed dress                      per cent without reducing                Canada and with less water and
don’t have to purchase any-         and installed the system                  code. Cooler employees means                        lumens (lighting power), cutting         fewer chemicals, cutting green-
thing, they don’t have to deal      Mondial operates at Wood-                 the air conditioning doesn’t                        energy consumption by 35 per             house emissions by 75 per cent.
with new technology or main-        green in Toronto.                         have to be cranked to high and                      cent or more.                            Because it’s lighter, it costs less
tain anything, and they get a          Taylor Munro president Joe             it also makes their commute a                       ■ Cut the Paper Trail: It                to ship or mail.
guaranteed rate.                    Thwaites says solar-thermal is            little more tolerable on those                      seem laughable we once talked               (Ian Harvey can be reached at
   “It makes it an easier sell to   relatively new in the marke t-            blistering summer days.                             about how digital technology             harvey@businessedge.ca)
the end consumer because the        place and the utility model
consumer is used to purchasing      makes sense for many kinds of
electricity rather than purchas-    c u s t o m e rs because it helps them
ing the infrastructure that gen-    u n d e rstand the financial issues.
erates electricity – or hot water      “Mondial has managed to
as may be the case here.”           bring it down to a position
   He adds that he sees a poten-    where people can compare
tial for immediate savings with     apples to apples on energy,”
increased return as fossil fuel-    Thwaites says. “If people can
based energy prices rise.           understand the economics,
   Hinckley says, however, that     there’s alw ays been a lot of
he is unaware of any power-         goodwill towards solar.
purchase agreements involving          “People are keen to have the
solar thermal for hot water.“It’s   technology, but the very fact
not a growth driver. Canada         that the capital cost is high
and the U.S. a re first-tier        makes it a barrier to a purchase,
nations where hot water is easy     compared to buying electricity
to come by. It’s generally used     or natural gas from your local
in places like China, and Third     utility where it’s pay-as-you-
World countries.”                   go.”
   At Energy Probe, a Toronto-         Thwaites says most of his
based think-tank, senior policy     customers buy their systems
analyst Norm Rubin says he’s        outright or through conven-
struck by the technology’s slow     tional financing plans, but these
rollout.                            are mainly single-unit residen-
   “If everybody’s really coming    tial and modest-size business
out ahead, then it seems to me      users who are buying relatively
this should be scaling out faster   small-scale, m a n a g e a ble sys-
than it is. I’m just wondering      tems.
why nobody has knocked on              “Mondial comes in for
my door suggesting that my          clients that aren’t able to pur-
south-facing roof might have a      chase it outright but are inter-
solar hot-water heater,” Rubin      ested in the technology.”
notes.                                 Winch            concedes       that
   “There’s an awful lot of big     Mondial is experiencing cus-
buildings in Toronto and an         tomer inertia, but he says inter-
awful lot of big hot-water          est is increasing and he’s getting
users. I’m either frustrated or     calls from across North
quizzical that this hasn’t rolled   America.
out like hula-hoops.”                  “People want to be second,
   Rubin says the utility model     third or fourth, but not first.
does hold attraction.               They want to see it working at
    “Lots of us drink milk but      other sites and then they’ll
we don’t own a cow, and there       come and talk to us.We’re now
a re obvious advantages to          starting to see unsolicited
doing things that way. Most of      re q u e s t s . The momentum is
us are not in the utility busi-     definitely shifting.”
ness.”                                 (Saul Chernos can be reached at
   He adds that solar-energy        chernos@businessedge.ca)
Page 20                                                                                                                                                       November 16, 2007




  Federal tax cuts a start, but more needed
I
       t has been a couple of                                                                                                                    over to municipalities – and he
       weeks now since Finance       Other levels of government are grabbing money back                                                          berated politicians for lacking
       Minister Jim Flaherty rose                                                                                                                the courage to “take advantage
       in the House of               but the rates on higher levels     suggests that if the federal         ment may increase theirs.The        of the opportunity that now
Commons to deliver the gov-          of taxable income remain           government gives up an               Alberta government, purely by       dangles so beguilingly in front
ernment’s fall economic and          unchanged.                         average of $12 billion revenue       coincidence, is preparing to        of their twitching noses.”
fiscal update.The reviews –             The third pillar in the pack-   in each of the next five years,      boost its royalties on oilsands        Likewise, provincial NDP
mostly glowing – have been           age was aimed at incorporated      its budgets should be balanced,      developments by some $1.4           Leader Howard Hampton sent
delivered.The applause has           businesses. It will reduce the     and that’s how it should be.         billion per year, which will        a letter to Premier Dalton
begun to subside and the             corporate income tax rate             But the status quo – in           surely wipe out some of the         McGuinty urging him to do
opposition Liberals have been        from 21 per cent to 15 per         terms of federal programs,           gains made through the lower-       the same and arguing that a
cowed into support-                              cent by 2012.          services and employment –            ing of corporate tax rates.         one-per-cent addition to the
ing the government                                  Business
                            OPINION were nearlygroups                   remains intact. Flaherty’s              Similarly, the City of Toronto   sales tax could raise $2 billion,
rather than toppling                                           unani-   package of tax cuts does noth-       has just been through an            a figure some experts disputed.
it in a non-                                     mous in their sup-     ing to come to grips with the        excruciating debate over new           Perhaps there is an alterna-
confidence vote.                                 port for the pack-     high taxes that have allowed         taxes that ended in victory for     tive to these endless demands
   Flaherty ann-                                 age. Newspaper         government payrolls and              the pro-tax side and added          for more money. Perhaps it is
ounced what he                                   columnists and edi-    budgets to grow almost yearly        fresh burdens to the shoulders      time for a thorough review of
called meaningful,                               torial writers were,   since the deficit-induced, fiscal    of ratepayers. A land-transfer      what our governments do, and
broad-based meas-                                for the most part,     crisis of the mid-1990s.             tax – imposed on the sale of        some consideration given to
ures that would                                  complimentary.            Figures compiled by the           property – takes effect Feb. 1      asking what they should or
deliver $60 billion                              Even the Canadian      30-member Organization for           and a vehicle-registration tax      should not be doing.
worth of tax relief                              Taxpayers Feder-       Economic Co-operation and            will kick in next fall.                The public sector has not
over the next five                               ation, a steadfast     Development indicate that the           These measures will cost         been through the restructuring
years.The GST will                               opponent of high       tax burden in Canada is lighter      Torontonians $175 million           that the private sector has
be cut to five per        D’Arcy Jenish          taxes and excessive    than in most European                next year and that figure is        experienced over the past 15
cent come Jan. 1,         Business Edge          spending, allowed      nations, but significantly heav-     expected to grow to $300            years.Those changes, at times
fulfilling a Tory                                that it was a good     ier than that of our nearest         million.                            painful, have given us a more
election promise to shave two        start, while arguing that more     neighbor and largest trading            We are now hearing a chant       efficient and competitive
points off the tax during their      needs to be done. Most of          partner, the United States.          from those who believe that         economy, which is now
first term in office.                these opinions were delivered         Total taxation in 2005, the       the Ontario government              generating the tax windfalls
   The basic personal exemp-         on the spur of the moment to       latest year for which figures are    should raise the provincial sales   that governments consume.
tion will increase by just           meet the demands of the daily      available, stood at 33.5 per cent    tax and re-occupy the ground           The same sort of changes,
over $600 to $9,600, retroac-        news cycle. Sober second           of gross domestic product            abandoned by Ottawa.                applied to government
tive to Jan. 1, 2007, and the        thought should tell us that        compared with the European           According to Globe and Mail         departments at all levels,
exemption will rise to $10,100 more can and should be done.             average of 38.4 per cent. In the     municipal affairs columnist         might improve the delivery of
on Jan. 1, 2009.The personal            This package deals with the     U.S., the total tax load stood at    John Barber, the province           services and provide taxpayers
rate on the first $30,000 of         excessive taxation that has        27.3 per cent of GDP.                would net some $400 million         with better value for their
taxable income falls to 15 per       contributed to large annual           The other potential problem       by bumping its sales tax to         money.
cent from 15.5 per cent, also        surpluses for most of the past     is this: As Ottawa reduces its       nine per cent from eight –             (D’Arcy Jenish can be reached
retroactive to Jan. 1 this year,     decade. Some elementary math       take, other levels of govern-        money that could be turned          at jenish@businessedge.ca)




Banks remember that ’70s show: Stagflation
 Slowing growth and                          the reference to two growth tracks.
                                                Back in the 1970s, this combination
                                                                                           currency, which accom-
                                                                                           panies rising resource            EXPORT
                                                                                                                                                prices likely in 2008, these
                                                                                                                                                divergences will narrow, but
  rising inflation are                       resulted in stagflation – slowing growth      prices.                          ANALYSIS they will remain large.
                                             and rising inflation – and efforts by           As commodity prices                                   The two-track economy will
 very real risks today                       central banks to walk a middle path
                                             between these two tracks resulted in a
                                                                                           ease, so too should the
                                                                                           Canadian dollar, but the
                                                                                                                                                also remain evident at the
                                                                                                                                                regional level. For 2007, we are
                                             major inflation outbreak that took years      continued two-track                                  forecasting export growth to



H
            igh and rising prices for        to correct. Central banks are very alert      nature of the global                                 range from 17 per cent for
            metals, oil and food have        to this risk.                                 backdrop will mean                                   Newfoundland and Labrador to
            put the global economy on           Even though the world economy is           persistent strength in                               minus two per cent for British
            two independent growth           decelerating, and inflation pressures are     the loonie.                                          Columbia. For 2008, something
tracks.                                      likely to ease in 2008, the risk that this      These divergent stresses                           similar: 12 per cent growth is
   The adjustments this is fostering can     is just the 1970s all over again will         will show up in a number                             forecast for Saskatchewan’s
be painful, and there is no let-up in        remain front and centre for the next          of ways, not least in the                            exports, around minus one per
sight.                                       12-18 months.                                 pattern of Canadian                                  cent for Ontario and Quebec.
   This is not the first time the world         And, even if oil and other commodi-        export sales. EDC is           Stephen Poloz            The bottom line? Unless
has been here.The same thing hap-            ty prices ratchet down during the             forecasting growth of 3.7 Export Development resource pricing goes into
pened in the mid- to late 1970s, when        global slowdown so that inflation risks       per cent in the dollar         Canada                wholesale retreat, the pressure
oil and other commodity prices surged.       dissipate entirely, those prices are likely   value of total Canadian                              to adapt to a two-track global
When this happens, resource sectors          to remain high by historical standards –      export sales in 2007.                        economy will persist for the next
grow rapidly, generate new jobs and          well above their averages during the last       But experience will range from             several years.
attract new investment.                      economic cycle.                               growth of 26 per cent for fertilizers, 20      Repositioning ourselves in interna-
   Meanwhile, sectors that use                  Which means that we are likely to be       per cent for ores and metals, and 15 per tional markets will be key to a
resources as inputs must restructure,        faced with a two-track economy for            cent for agri-food to outright declines      successful adaptation.
adopt new technologies that are less         the foreseeable future.                       in sales of eight per cent for consumer        (Stephen Poloz is a senior vice-president
resource-intensive and reduce                   In Canada, the pressure to adapt           goods, six per cent for cars and six per     and chief economist for Export Development
workforces.                                  to this two-speed world is being              cent for telecom equipment.                  Canada. He can be reached at
   Those sectors slow or stall – hence       magnified by the appreciation of our            With some declines in commodity            spoloz@edc.ca)
November 16, 2007                                                                                                                                                           Page 21




   Fashion sector models
    environmental look              good way to promote aware- Gordon Campbell was on his
  Toronto show                      ness for us and contribute back way to Europe to discuss car-
                                    to the environment for them,” bon offsetting.
  takes steps to                    said Conacher.                        He was the only Canadian
                                        CleanAirPass sponsored off- re p re s e n t a t ive at the Lisbon
    be energy                       setting the 276 tonnes of CO2 summit to sign an agreement
                                    emissions for Fashion Week, called the International Carbon
    conscious                       which amounted to a cost of Action Partnership (ICAP).
                                    just under $35,000, he added.         “A larger, global trading mar-
By David Hatton                         Inside the Fashion Week tent, ket will benefit British Col-
Business Edge                       designers seemed impressed by umbia and Canada, particularly
                                    the initiative. “I                               with our province
                                    always recycle at SPECIAL REPORT playing a pivotal role


C
            anadian      fashion
            designers       we re
            trying to make over
                                    h o m e,”
                                    designer
                                                   Calgary
                                                      Paul
                                                               ENERGY inevelop process to
                                                                                     d
                                                                                           the
                                                                                                a system,”
            their own image         Hardy said.“I know                               Campbell said in a
                        d
when they pre m i e re their        that energy and the                              statement.
spring/summer 2008 collec-          environment seem                                     “Tackling climate
tions with an energy-conscious      to be a big trend                                change       re q u i res
and environmentally friendly        everywhere I go.”                                international       co-
theme.                                  Spokespeople for                             operation and col-
   “We tried several new initia-    Fashion         Week                             laboration unlike
tives this year because we felt     events in other Canadian cities anything we have seen before. It
it was the right thing to do,”      including Va n c o u ver and is vitally important that as we
said Brooklyn Brownstone of         Montreal did not return calls design our own market systems
the Fashion Design Council of       asking if they would be follow- we co-ordinate with other
Canada. “Nobody here in the         ing Toronto’s energy-conscious provinces, states, nations and
office knows if other cities are    and environmental initiatives.      continents,” said Campbell.
doing it.                               But Clair Demerse, a climate-     “The partnership we have
   “We just thought it was the      change policy analyst with the signed today opens the door,
right thing to do for Toronto       Calgary-based Pembina Insti- for the first time ever, to
during Fashion Week.”               tute, warns that consumers need jurisdictions around the globe
   Events started with a fashion    to study any carbon emissions to share ideas and new tech-
show in late September featur-      offset offer carefully.“As the say- nologies, and ultimately will lay
ing 10 Canadian designers –         ing goes, the devil is in the the foundation for compatible
Thien Lee, Pat McDonagh,            details. People should ask what market-based systems to trade
Juma, Damzels in this Dress,        kind of carbon offset they are carbon offsets and cre d i t s
                                                                                                                                                      Brennan O’Connor, Business Edge
Annie Thompson, Farley Chat-        investing in,” she said.            worldwide.”
to, Rosa Costanzo,Thieves, Ula          Demerse says carbon offset-       (David Hatton can be reached at        A model wearing spring clothing designed by Calgary ’s Paul
Sukowska and Sarah Nicol –          ting is a new and unregulated hatton@businessedge.ca)                        H a rdy walks the catwalk at the L’ O real Fashion Week in Toronto.
who worked with sustainable         industry. S everal industry
fabrics.                            benchmarks, including Gold
   The environmentally friendly     Standard and ISO 14064, have
theme continued with models         emerged to measure the effec-
walking down a 20x30-ft. sod        tiveness of credits, but details
runway. The models’ hair was        can still vary widely.
done without any electricity            “One of the biggest ques-
and guests were served a choice     tions we ask is if the offset
between eco-friendly wines or       activity would have been per-
organic beers, according to a       formed anyway. If a company
press release.                      plants trees on a regular basis,
   In October, events during        then tries to claim they are
L’ O real Fashion Week we re        doing this as part of an offset
held inside a 30,000-sq.-ft. tent   process, then it isn’t new.”
set up in the public square out-        Demerse was about to give
side Toronto City Hall.             an example of a coming busi-
   Fashion bu ye rs and trade       ness trip she was taking from
media entering the tent to          O t t awa to Calgary. The
watch ru n way shows passed         Pembina Institute would pay
two signs for Toronto-based         for the offset credits used dur-
CleanAirPass.                       ing the flight, she explained.
   The company uses a complex       But when Demerse called back
system to measure carbon-           l a t e r, she declined to give
dioxide emissions, then sells       details.
credits to fund offsetting the          “That’s something we’re not
environmental damage.               prepared to talk about. There’s
   Those calculations take into     going to be a big announce-
account factors including the       ment in 2008 that will go much
number of attendees, guests and     further than that. It’s going to
carbon dioxide used by people       go into more detail than just
to travel an average distance to    business travel, like the build-
the eve n t , says CleanAirPass     ings we use for our offices,” she
CEO Bryce Conacher.                 said. “The guys here said I can’t
   “They approached us look-        talk about it right now
ing for a way to be more envi-      though.”
ronmentally friendly.This (con-         As Toronto Fashion Week was
cept) is fairly new, so it was a    wrapping up, B. C. Premier
                                        Page 22                                                                                                                      November 16, 2007




     Eco-computing can spell energy profits
B
          eleaguered IT man-     floor space that was converted                 ty, and releases it on demand       inate in our new products all       services at the Stanford Linear
          agers already have to  from data centres to offices is                under computer control.The          remaining uses of brominated        Accelerator Center in Calif-
          deal with fast-chang-  now being turned into central                  system is made by Quebec-           flame retardants (BFRs) and         ornia.They work on really big
          ing technologies,      server rooms. He also thinks                   based Groupe Énerstat Inc.          polyvinyl chloride (PVC) by         problems and needed to pop
rising user expectations and     that tape is coming back as                        IBM notes that the energy       2009.”                              in another 200 computers.
gnarly recruiting situations.    a “greener” data-storage                       savings associated with this           Lenovo, which was spun off          Problem was, according to
   Now, they face a new          medium than disk.                              project are in the vicinity of      from IBM and now does               Boeheim, they simply had no
challenge.They’re being asked,      Pratt says IBMers can have                  six per cent a year and will        US$13 billion in annual rev-        space and couldn’t build it in
“How Green is Your Silicon       either a laptop or a desktop                   reduce electrical power             enues from PC sales, is touting     time. So they became the first
Valley?”                                        computer, but not               demand by more                                   its new ThinkCentre    customer to get a “Project
   Under slogans like        FUTURE/ both.They must                             than one megawatt,          SPECIAL REPORT A61e desktop as sav-         Blackbox” unit from Sun
“Eco-computing”
and “Green IT,”               PRESENT walk to pool to
                                                printer
                                                        a central               saving the company
                                                                                $350,000 per year           ENERGY ing on average more
                                                                                                                                 than $20 a year in
                                                                                                                                                        Microsystems. It fits on a flat-
                                                                                                                                                        bed truck and basically gives
environmental aware-                                      pick up their         at that plant alone.                             energy costs and the   you a data centre in a box. A
ness has caught the                                       printouts and their       Pushing Green                                equivalent of the      very big box.
attention of computer                                     files are stored      IT is good business                              carbon dioxide            Elizabeth From, director of
giants such as Intel,                                     centrally, not on     for IBM. Pratt has                               emissions created by   strategy for California-based
IBM and Sun                                               energy-guzzling       just completed                                   two round-trip         Sun, brought the Blackbox to
Microsystems. And                                         PC hard disks.        presentations in                                 flights from Boston    Calgary recently and ushered a
they don’t need Al                                        Pratt says some       Toronto and                                      to New York.           stream of energy industry
Gore to preach for                                        people are even       Calgary as part of CIO Canada          At the bleeding edge of          executives through it. She says
them. It’s a matter of                                    turning off their     magazine’s “Frankly Speaking”       technology, Jai Menon, an           it takes server virtualization
dollars and cents.                                        computers at          breakfast series. He encourages IBM Fellow based in Almaden,            one step further.
  “The average data                                       night, or, if they    IT managers to do a data            Calif., recently showed off a          “We decided to get ‘out of
centre consumes             Tom Keenan                    must be left          centre energy audit, just like      possible future IBM product         the box’ and asked, what if
10 to 30 times the          Business Edge                 running, donating     you would do at home, and           nicknamed the IceCube. IBM          the unit to be virtualized was
amount of power as                                        the processing        points to a free tool on the        marketers apparently didn’t         the data centre, instead of the
the average office space, when        cycles to public service                  IBM website (www.ibm.com/           want to share a name with a         server? So we decouple the
compared on a square-foot             projects such as World                    systems/energyassess) to get        notorious rapper, so it’s prop-     brick-and-mortar aspect of
basis,” says Chris Pratt, strategic Community Grid.                             them started.                       erly called “Intelligent Bricks.”   the data centre from what
initiatives executive with IBM            The IBM folks are almost                  Pratt also notes that “you         Imagine a stack of generic,      it does.”
Canada.                               evangelistic about their green            don’t have to have a thousand       but very high-powered com-             At about US$500,000, it’s
  In fact, he says the costs of                      e.
                                      i n i t i a t iv Pratt says that IBM is   machines to benefit from this.      puting cubes that aren’t even       not for everyone. But it does,
running computers will soon           looking to save five billion              Someone who is a small or           connected to each other by          in her words, work well for
overtake the cost of buying           kilowatt hours,“which equals              medium-sized business, with 20 wires. Data is transferred by            companies that need reliable
them.This is supported by a           the power consumption of the              or 30 systems, can consolidate      capacitive coupling. Menon          plug-and-play computing
January 2007 study from               city of Paris, France.” He points         down to four or five systems        says this makes it easy to slip     capacity, even in remote or
research firm IDC that found          to their Bromont, Que., plant,            . . . and there ’s nothing but      out components that fail, cre-      disaster areas.
today, for every dollar spent on which has consistently exceed-                 benefits from that.”                ating an energy-efficient, high-       Like most computer vendors
new hardware, an additional 50 ed their energy saving targets.                      IT power consumption can        ly reliable system out of less-     hopping onto the Green IT
cents is spent on power and               Their latest innovation,              become an urgent business           reliable components.                train, From sees the push
cooling, more than double the         which IBM says is a first in              issue. IBM and other compa-            The thing looks like a bunch     to more environmental
amount of five years ago.The          North America, is “stored                 nies say they have customers,       of giant Lego until you realize     awareness as a golden business
power and cooling cost is ex-         cooling.” Pratt says this is a            mainly in California, who can- that the working prototype               opportunity for her company.
pected to rise to reach $1 per        process that allows them to               not take delivery of much-          cube can hold 27 terabytes             “Eco means economic and
$1 of hardware costs by 2012.         maximize the efficiency of                needed computers because            (27 million megabytes) of           energy and ecology,” she says.
  Pratt points to IBM’s own           their chillers and cooling, “and          they simply cannot get power        information and provide more        “So for us, it’s green money
efforts in this area, from “com- take full advantage of the free                for them at any price.              processing power than most of       and green environment.”
puters that will dynamically          cooling that comes from                       Almost all computer makers      us will ever need.                     (Tom Keenan is a professor at
turn parts of themselves off ” to Canada’s climate.”                            are joining the push to Green          Ah, but there are people         the University of Calgary and an
“server virtualization,” which            Think giant cylinders of a            IT. Dell has announced free         who will always want more.          expert on technology and its social
involves using fewer computers goop that stores thermal ener-                   recycling for any Dell-branded Folks like Chuck Boeheim, the            implications. He can be reached at
more intensively. He jokes that       gy like batteries store electrici-        product, and pledged to “elim- assistant director of computer           keenan@businessedge.ca)
November 16, 2007                                                                                                                                                Page 23


                                                                      COMING EVENTS
■ Technology Innovators           members $65, others $85.           Bruce Power. Location:             9 a.m.) – Opportunities for       ■ Empire Club (Nov. 28,
Breakfast (Nov. 20, 7:30 -        Info/register: e-mail              Toronto Board of Trade down-       Canadians in Russia and           noon) – Speaker: Lord Peter
9:30 a.m.) – Outsourcing soft-    admin@icd.ca or go to              town centre, 77 Adelaide St.W.     Ukraine. Location: Metro          Levene, chairman of Lloyd’s of
ware development. Location:       www.icd.ca                         Cost: BOT members $55,             Toronto Convention Centre.        London. Location: Fairmont
Toronto Board of Trade down-      ■ Exit Stage Right (Nov. 22,       others $75. Info/register:         Cost: CERBA members               Royal York Hotel, 100 Front
town centre, 77 Adelaide St.W.    8 a.m.) – Enterprise Focus ses-    www.bot.com                        $39.90, others $62.70.            St.W.,Toronto. Cost: Members
Cost: BOT members $55,            sion for stable companies with     ■ Canadian Club of Halton          Info/register:                    $40, others $55. Info/register:
others $75. Info/register:        a long history. Session leaders:   Peel (Nov. 26, 6 - 9:30 p.m.) –    www.cerbanet.org                  www.empireclub
www.bot.com                       Jordan Dolgin, partner, and        Speaker: R o b e rt Bateman,       ■ ICT Seminar Series (Nov.        foundation.com
■ The Growth Finance              Robin MacKnight, counsel,          wildlife artist and environmen-    28, 7:45 - 11 a.m.) – Topic:      ■ Eggs ’N Icons (Nov. 30,
Matrix (Nov. 20, 8 - 10 a.m.)     Wilson Vukelich LLP. Location:     talist. Location: Oakville Con-    Protection of Intellectual        7:15 - 9 a.m.) – Speaker:
– Session leader: Frank           ISCM, 1380 Rodick Rd.,             ference Centre, QEW & Bronte       Property and Technology.          Environment Minister John
Hayes, president of Stanley       Markham. Cost: $95.                Rd. Cost: Members $30, non-        Speakers: Lawyers from Miller     Baird. Location: Sheraton
Software Finance Inc.             Info/register: www.iscm.ca         members $40. Info/re gi s t e r:   Thomson. Location:Toronto         Ottawa Hotel, 150 Albert
Location: Innovation Synergy      ■ Power Breakfast (Nov. 23,        e-mail bwylie@globalserve.net      Board of Trade downtown           St. Cost: Ottawa Cof C
Centre in Markham (ISCM),         7:30 - 9 a.m.) – Speaker:          or call 905-827-6302.              centre, 77 Adelaide St.W. Cost:   members $30, others $40.
1380 Rodick Rd. Cost: $75.        Duncan Hawthorne,                  ■ International Construc-          Members $40, others $60.          Info/register: www. greater
Info/register: www.iscm.ca        president and CEO of               tion Conference (Nov. 27,          Info/register: www.bot.com        ottawachamber.com
■ Untangling the Web
(Nov. 20, 9:30 - 11:30 a.m.) –
Enterprise Toronto advanced
seminar series.Topic: Under-
standing the Internet and
whether you need a presence
on it. No fee. Location:
North York Civic Centre,
Committee Room No. 4,
5100 Yonge St. Info/register:
www.enterprisetoronto.com
■ Succeeding in a Highly
Competitive Marketplace
(Nov. 20, noon) – Canadian
Club of Toronto. Speaker:
Blake Goldring, chair and
CEO of AGF Management
Ltd. Location: Fairmont Royal
York Hotel, 100 Front St.W.
Cost: Members $60, others
$70. Info/register:
www.canadianclub.org
■ Strategic Leadership
Forum (Nov. 20, 6 - 8:30
p.m.) – Topic: Personal
integrity, a leadership impera-
tive. Location:The National
Club, 303 Bay St.,Toronto.
Cost: Members $48, others
$75. Info/register: e-mail
margo.street@slftoronto.com
■ Empire Club (Nov. 21,
noon) – Speaker: Philippe
Lacamp of Cathay Pacific
Airways.Topic: Canada/Hong
Kong/China, an aviation
perspective. Location:
Fairmont Royal York Hotel,
100 Front St.W. Cost:
Members $40, others $55.
Info/register: www.empire
clubfoundation.com
■ Factoring (Nov. 21, 8 -
9 a.m.) – Enterprise Toronto
morning seminar series.
Location:Toronto City Hall,
Second Floor, Committee
Room 2., 100 Queen St.W.
No fee. Info/register:
www.enterprisetoronto.com
■ Understanding Income
Statements (Nov. 21, 9:30 -
11:30 a.m.) – Enterprise
Toronto advanced seminar
series. Location: Toronto
City Hall, Second Floor,
Committee Room 2,
100 Queen St.W.
No fee. Info/register:
www.enterprisetoronto.com
■ Executive Compensation
(Nov. 22) – Institute of
Corporate Directors Ontario
chapter breakfast. Location:
Fairmont Royal York Hotel,
100 Front St.W. Cost: ICD
Page 24   November 16, 2007

				
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