Adam Lashinsky's dispatches on finance from the West Coast
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November 20, 2007, 5:50 pm

Clean energy will make Gore rich

By Adam Lashinsky, Sr. Editor at Large

The Wall Street Journal editorial page opined Tuesday about the Al Gore-Kleiner Perkins connection. Predictably, they didn’t have much nice to say about Gore, Kleiner or anyone else who believes there’s a climate-change crisis. Marc Gunther and I wrote a long article in the current issue of Fortune on the subject, which the Journal’s eco-skeptics graciously referenced.

A few of the points in the Journal editorial merit hashing over. First, the Journal rightly focuses on Gore’s financial opportunity. It’s worth quoting the paper in full.

[L]like the energy barons of an earlier age, Mr. Gore has the chance to achieve enormous wealth after being named last week as a new partner at the famously successful venture capital firm Kleiner Perkins. No fewer than three of his new colleagues sit on the Forbes list of wealthiest Americans. If Mr. Gore can develop market-based solutions to environmental challenges, we will cheer the well-deserved riches flowing his way. On the other hand, if he monetizes his Nobel Peace Prize by securing permanent government subsidies for nonmarket science projects, he’ll have earned a different judgment.

The Journal is onto more than it realizes here. Gore has said, and it has been printed in several places, that he’ll donate his (undisclosed) salary at Kleiner to the Alliance for Climate Protection, an advocacy group of which he is chairman and which he founded. (He’s also giving the group his Nobel winnings of $750,000.) What nobody reported on is that he is NOT giving away his profits from Kleiner’s investments. (I know this because I specifically asked Gore’s spokeswoman.) When venture capital is done well the profits, also known as carried interest, are much, much bigger than a partner’s salary. The profits also currently are taxed at a lower rate than ordinary income, which is the subject of current legislation in Congress.

As for the subsidies issue, it’s not like Sand Hill Road never has benefited from government intervention. The Internet itself grew out of a Defense Department project. And the lions of VC-land have lobbied successfully on a range of issue from visas for skilled immigrants to the accounting of stock options.

The Journal’s most salient point, and one we made in our article, is the inherent riskiness of applying venture capital to the energy industry. Energy projects take time and money, and lots of both. VC projects tend to be fast and cheap. As the noted venture capitalist Bill Draper told me recently, when I asked why his firm, Draper Richards, isn’t invested in green tech: “Capital intensity tends to be anathema to a venture capitalist.”

It’s simply too soon to prove the following point, but I believe that Kleiner’s investment in green technology carries with it the highest possibility of failure of anything it’s ever done. Then again, venture capital is the ultimate example of risk capital. Failure is assumed, and one sensational hit can make a fund.

If these guys succeed, not only will Al Gore get richer but the planet most likely will be in better shape. The Journal says it would be “as happy as the Sierra Club if one or more of these new technologies turns out to solve the secrets of cheap, efficient energy.” But could they stomach a breakthrough like that and Al Gore taking credit?

 

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Actually Al Gore did claim to create the internet without hesitation. The internet had been existance for a while. All he did was be on a panel that voted to help fund the world wide web (which should be a proud accomplishment). In a ‘00 Democratic Primary by CNN when asked why people should vote for him over his friend and colleague Bill Bradly, he responded with several things including “creating the internet” which is the same thing as inventing the internet.

Also–Anyone who thinks Republicans & Democrats at the top are not making millions/billions off either party are fools. Carter may have said we need to get off foreign oil but Democrats successfully blocked any nuclear expansion now for 30 years (which is the cleanest & cheapest technology out there besides arguably coal)

Posted By Rob, Greensboro, NC : November 26, 2007 6:42 pm

I saw Mr. Gore on the TODAY show a few weeks ago telling me that there was a “scientific consensus” that global warming was evident and that it was a man-made phenomenon.

I recently read an article about a river in Northern Canada where the ice had receded sufficiently to reveal 6,000 year old tree stumps and remains that had presumably been frozen over since that time.

First, “scientific consensus” is nonsensus. There is only the scientific method that is an established method for proving scientific fact. To take 30 years of reliable (we didn’t have the technology to adequately view the overall climate of the earth before then) and extrapolate fact from Earth’s million years of history is an irresponsible and dangerous hypothesis.

Second, if there are tree stumps in places that have been frozen over for 6,000 years, doesn’t that mean the Earth was warmer then? And yet, here we are……

Posted By Paul, South Bend, IN : November 26, 2007 2:24 pm

I love Ron’s (Suprize,AZ) comments from 11/23. He has straightened us out on the conspiracy theories emanating from the current Adminstration. He’s so smart.

Too bad he can’t spell “Cheney.”

Posted By Rich, Skillman, NJ : November 26, 2007 8:06 am

For the people that bad mouth coal. Turn off your power, quit going to Wal-Mart and buying your food, start home schooling your kids, grow your own food, slaughter your own meat, and drill yourself a well for water. Coal is America’s answer right now. Yes, we need to capture the carbon and use cleaner technology. But our economy thrives on coal. As for Gore and his people, how many flights have the took trying to promote this garbage. The concert they had, where did the energy come from. How much did they recycle from the concert? How much does he recycle now? Does he grow his own food or does he depend on a tractor trailer to haul to a store for him to purchase. The average American is better off with coal as electricity. Just burn it cleaner and capture the carbon or I guess our senior citizens will have more to worry about than to pay there bills or buy there medicine. If you don’t agree, then turn your switch off and quit depending on some of the hardest working American’s to supply everything for you. Do it yourself….

Posted By Derek, Pikeville, Kentucky : November 25, 2007 9:41 am

Careful with the motives of VPs. A VP once told me very clearly that “capital does not flow to make the world a better place.”

IMHO, the focus needs to be solely on electrical energy storage, that is, battery technology. That is the single most important area where a major breakthrough will shape the entire future development, an in particular, leave alternative combustion fuels in the dust (sorry ethanol).

If we can charge, discharge, and store sufficient energy per unit mass, with low losses, then the entire game is over, and we have solved several major problems at once. Electric vehicles can become commonplace within 5 years, eliminating all air pollution from transportation sources. Then, the energy generation can be made cleaner from the windfall created by reduced demand for hydrocarbon fuels for transportation. This is all possible using existing technology and the power grid. And they will be very fast and fun to drive.

Posted By Gaurav Goel, Austin, TX : November 25, 2007 4:12 am

Market forces will determine the best possible future energy technologies – not Gore, not Eaton, not Draper Richards – the overall market is far bigger than any one institution or any one person. There are plenty of challenges and opportunities for all of us. Massive climate change will force all of us to line up accordingly. Recently, I have not seen any horse and buggies drive by — it’s all been replaced by more advanced technologies. Soon, the gas station as way know it will no longer offer gasoline… I wouldn’t spend my time worrying over whether or not Al Gore will become rich. I would align your personal stock portfolio away from fossil fuels and big bad oil companies and towards advanced solar, electric utilities, nuclear power, wind, geothermal, advanced batteries, exotic materials and oh yes – agriculture – people will still need to eat as there electric cars are driven by artificial intelligent systems to the local ice cream store.

We are not moving backwards – people will continue to live big and enjoy. We are not going to cease traveling to restaurants, sporting events and buying consumer electronics — we, as a world are going to buy more and sell more, expand, develop and grow. It will all take clean, renewable energy and Iran won’t be the supplier.

As the dollar falls another 25% against the Euro, American-based manufacturing will grow and expand, requiring more electric power and water. America has these resources and coupled with advanced technology will have considerably more electric power – we have the southwest with invaluable land with no water but lots of sunshine. We have the upper midwest with abundant water and wind. We have the south with plenty of wind and sun and soil. We still have the fundamentals…

Posted By Stephen Orr, Findlay, Ohio : November 24, 2007 5:42 pm

People are missing the beauty of what Gore is doing. He’s getting the whole world worried about Global Warming, and then he’s fixing it with money flowing into himself and friends. The pinpoint of hypocrisy is that the technology they are backing cannot compete with coal unless they FORCE LEGISLATION ON C02. NOT ONLY DOES GORE WANT HIS ETHANOL SUBSIDIES, BUT ALSO C02 PENALITIES FOR COAL. If he pulls this off, then his patent-holding buddies at Ausra (solar) can compete. In reality, Ausra and Gore will make little contribution to energy, the same constituents who block coal also block the transmission lines corridors. Sucks to be wind and solar when transmission lines aren’t available. Gore will try to pass legislation for transmission as well.

Posted By Charles Salt Lake, UT : November 23, 2007 5:08 pm

Gore a little fish in a big sea.

What you printed is probably true but here is some of the rest of the story. Although Gore is out of politics he still is a player on the world stage. Big green may get as big as big oil some day but right now they are navigating through a sea of big oil companies and there supporters. Without big oil being so big, big green would of had a very difficult time establishing itself. Gore has Dick Chaney to thank for that. I’m very surprised that no one has mentioned how much one of big oil and big defense supporters like Dick Chaney and his wife’s net worth is.

Lynne Chaney’s was on the Board of directors at Lockheed and we all know who use to run Halliburton. Lockheed and Halliburton Stock prices are up over 4 times what they were right after they took office. The Chaney’s net worth through there trust fund alone must be in the billions. Dick singlehandedly, through his actions on the political stage, pumped up the price of oil and defense stocks after he won the presidency and he is not done yet.

Most of us are too stupid to realize when he first was elected how far he would go to line his pockets. If we wait around just a little longer when oil goes to 200 dollars an once after Dick Chaney bombs Iran and thousands more brave American young men loose there lives then it will be too late. When the Chaney’s leaves office he will be one of the richest men in the world and Gore will have him to thank for his new found wealth.….

Posted By Ron, Surprise, AZ : November 23, 2007 1:05 pm

We have the technology to eliminate greenhouse gases from all combustion engines and all smokestacks.

We can also build a non-toxic battery that charges instantly.

If we can get the funding we will have it in full scale production within 18 months.

PS: Gore’s spokeswoman knows we exist. Oh, and if you think I’m kidding I have the test data from Eaton and Delphi to prove it, so no jokes please.

Posted By Eric, Nevada : November 22, 2007 3:33 pm

The entrenched Establishment: the oil/gas/coal energy producers and their political whores are threatened by any progress of alternative energy forms.Bush,Cheney and their right-wing corrupt cronies are responsible for doing little to advance the world away from energy sources that DIRECTLY fund TERRORISM. President Carter,in the 1970’s , implored America to develop non-carbon energy sources.But NO,Big Oil vetoed that idea.If Americans had the balls to do that 30 years ago,the US and its allies could tell the oil/terrorist sponsor nations to go F**K off. We would have made significant progress in reducing pollution and creating numerous new industries.The republicans are fear mongers and will do/say ANYTHING to paralyize America and the rest of the lucid thinking world from breaking free of carbon based energy sources.We’re at the beginning of that process.Just think: we would have developed numerous alternative energy sources which could have improved our lives.The question is this: continue with outdated energy sources or break free of that and move forward into the 21st CENTURY and rid the world of deadly carbon based energy sources. I live in Texas and know all too well about the energy monopolies prepetrated by the energy companies. CHANGE is happening globally and America NEEDS to be at the forefront of the process or we’ll become a second class power.Vote for change with your wallets and buy and use energy efficient cars,products,etc. And for your sake vote forward thinking candidates who have/will enact and pass legislation that will spur development of new energy sources.Which means JOBS,money,prosperity and national security!!!!

Posted By Tim Houston Texas : November 22, 2007 1:58 pm

For the last time, AL Gore actually was a very key player in the early stages of the internet and championed an early piece of legislation that helped the internet develop. So stop quoting some Republican smear dreamt up by Karl Rove. While Al Gore’s comments can be taken the wrong way, in a broad since the internet of today owes alot to Mr. Gore. While no one man can claim to have invented the internet and Al Gore never has claimed sole responsibility. Those who continue to argue this point are the same people argueing that John Kerry didn’t deserved all 3 of his purple hearts. Even if he didn’t have one purple heart, I’d still rather follow him into battle than some draft dodging, coke addicted, prep school cheerleader and yes Bush was a male cheerleader. Probably why he hates homosexuals so much, self-haters are always the worst.

Posted By Mike, PGH,PA : November 22, 2007 3:44 am

Whoever develops the technology for cheap, renewable and enviormentally friendly energy will be the Carnegie and Fords of the 21st century. Do we want China or Europe to be the center of these new trillion dollar industries. We can forget it like General Motors did with hybrid technology in the 1990’s leaving the way open for toyota to dominate. Or we can reclaim our rightful role as the most technologically advanced nation. I work in the energy industry, specificly various coal power plants in the northest. While none of the current alternatives can replace coal as of yet, any reduction in energy consumption would be helpful. Most Americans would be shocked to realize that the average desktop computer alone requires six pounds of coal to power it for one hour. Just think how much energy and carbon emissions we could save by office buildings installing solar panels or using solar powered water heaters which are currently required by law in the Isreal. Whether you believe Al Gore is an idiot or not, I personelly just avoid the whole global warming debate, though your a moron if you don’t beleive it. So forget the warming debate, and think of this maybe we’re not to blame for global warming but regardless it doewsn’t matter what matters is we are putting millions of tons of pollutants in the air period that is fact. So badly that schools in texas and other states cancel athletic practice over pollution fears. Thats in America with clean air laws now think of what china’s air must be like and remeber it drifts right over the US. We also changing the PH of the oceans, no one is even really sure what that is going to casue. so when some loud mouth idiot starts with the golbal warming fraud arguement, don’t argue just let him try to explain the positive effects of millions of poinds of sulfur and other chemicals in our air. I’ll be thinking that as I watch 100,000 pounds of coal go out our smoke stack tommorrow and the next day and the next day. One final word there has been a lot of “Clean Coal” commericals on TV lately, well speaking for the coal industry it’s a bunch of crap there is no such think, we are currenly able to reduce sulfur emissions but can make no inroads on carbon production. The only currrent solution is Carbon sequestration technology, but unfortunately it is currently far to expansive and will never be adopted by the industry. Unless a carbon tax is enacted or government subsidies used to influence industry leaders. so next time you here clean coal, just remeber the average constuction date for the typical coal plant is in the 1950’s, I’ve even worked in ones with orignal 1938 boilers. Reducing waste is our only current avaliable solution. Along with increased tax breaks and subsidies for solar, wind, and other renewables. Nuclear energy which I have also worked with is safe and clean but it’s by products remain dangerous for 50,000 years, I mean come on it’s beyond comprehension 50,000 years. Talk about passing the buck, Maybe it’s just me but doesn’t anyone feel guilty about committing a thousand future generations to our short term energy problems. US plants are extremely safe, thats not really an issure but Nuclear will not solve our problems.

Posted By John, Pittsburgh,PA : November 22, 2007 3:35 am

Way to go, Gore. You are the man. I will be with you at every step of the way.

Posted By Dennis, Vancouver, and BC : November 21, 2007 7:14 pm

If we fast-forward to 2100, the emergence of solar energy will be viewed as one of the most transformative events of the 21st century. It will affect the environment, global economics and geopolitics. Solar can be deployed locally and there are no emissions. It will reduce air pollution, which will reduce the incidence of many public health problems such as the high incidence of asthma in urban settings. Since there are no noxious emissions, such as nitrous oxide and sulfur dioxide, associated with coal burning plants, the deployment of solar will alleviate the problems of acid rain and the denuding of forests due to acid rain. There is no carbon dioxide produced when semi-conductors such as silicon convert the sun’s energy into electricity. Therefore, the main cause of human induced global warming will be dramatically reduced from entering the atmosphere. Global politics will no longer be influenced by who has the largest petroleum reserves. This has led to strange bedfellows between Presidents and dictators, democracies and theocracies.

Once the renewable energy infrastructure is in place: solar panels, solar thermal collectors, concentrating solar power, windmills, tidal turbines, geothermal wells, there will be no need to horde non-renewable energy sources that are dwindling at an exponential rate. Our current course is unsustainable. The time period from the industrial revolution until now will be viewed historically as the fossil fuel era that enabled humans to advance to the renewable age. The fossil fuel era was necessary and served its purpose. It is just unsustainable. Electric cars powered by wind and solar will be the norm by the turn of the century and hopefully a lot sooner. The Renewable Revolution has begun. Energy is a huge business, and once wall street saw the huge potential for greenbacks in green energy, there was no turning back.

Right now, most renewable energy cannot compete with fossil fuels on a straight economic basis. Wind needs the federal production tax credit to be viable. Solar needs the 30% federal tax credit, and accelerated depreciation along with state specific rebate/financing programs in order to compete with coal, natural gas and nuclear generated electricity. Since most renewable energy is currently dependent on federal and state legislation that is short sighted and intermittent, it has been hard for renewable companies to effectively plan for the future and reach the economies of scale that will allow them to exist without government aid.

Germany currently has the most installed photovoltaic capacity despite being at 60 degrees north latitude and having the same solar resource as southern Alaska. The German government has made a long term commitment to solar through a feed in tariff that assures solar energy producers a stream of revenue at a set rate for a specified amount of time. Other countries have followed this model, most notably Spain where solar has taken off over the last 2 years as the feed in tariff model was adopted. Only a few of the states in the U.S. have significant solar programs, most notably California, New Jersey and Colorado. Most states that have any significant amount of solar installed have offered an upfront rebate to help offset the high upfront cost of installation.

This model has been successful in jump starting programs such as New Jersey’s, but it is proving to be unsustainable as the rebate programs become victims of their own success. New Jersey is currently transitioning from an upfront rebate program to a program that is more similar to the feed in tariffs found in Europe and Ontario. Each megawatt-hour of electricity produced in New Jersey generates an S-REC ( Solar Renewable Energy Credit) that trades in free market. Investor Owned Utilities purchase the S-REC’s in this market to meet their quota for clean energy specified in the Renewable Portfolio Standard. If they do not purchase the S-REC’s from homeowners or businesses that are producing solar electricity, they are forced to pay an alternative compliance payment (ACP) which is usually 50% more expensive than purchasing the S-REC’s in the market. The S-REC income to the owner of the solar array provides another stream of revenue in addition to their lower electric bill that aids in paying for the solar project. New Jersey is proposing to increase the ACP and establishing a floor for the S-REC in lieu of the current rebate program. With the federal tax credit, accelerated depreciation, S-REC income, lowered electric bill, many commercial projects in New Jersey have gotten IRR of 10% or more and paybacks of less than 7 years. With some creative financial engineering, many third parties are stepping in to finance solar project in New Jersey. Companies such as Sun Edison and MMA Renewable Ventures will own and operate a solar array, charging the customer a lower rate per kilowatt-hour with a fixed rate of price escalation over the next 25 years which is what most solar panels are warranted to produce electricity for with a .5% degradation/year) Wal-Mart and Staples are not interested in owning the solar array on their roof, however, they will sign up for a lower guaranteed electric rate over the next 25 years

Many states have adopted a Renewable Portfolio Standard (RPS) that mandates that investor owned utilities in the state produce a certain amount of their electricity by renewable means by a certain date. New Jersey’s RPS requires the IOU’s to produce 20% of their electricity by renewable means by 2022. It has also specified that 2% of this electricity come from solar. That translates into 1500MW of solar in New Jersey by 2022. Currently there are approximately 26MW installed. Each MW installed costs about $6,000,000. Approximately 60% of this cost is the solar panels. This is one small state. Imagine if the rest of the country adopts aggressive programs like this. No wonder, Sunpower is trading a 600 times trailing earnings!

Recently, there have been several major announcements of 500+ Megawatt concentrating solar power plants being planned for the Mojave Desert. These plants will use parabolic trough mirrors to concentrate the sun’s energy on oil contained in tubes. The oil will be heated to several hundred degrees Fahrenheit and used to turn water into steam, thereby running a turbine, which will produce electricity. There has been a plant like this running in the Mojave since 1984, successfully producing clean energy. Over the last 20 years, the price of oil went dramatically down, the price of electricity was cheap and there was no public movement towards green energy. However, as oil has spiked over $90/barrel, the price of natural gas has gone up, the electricity markets have become deregulated and the price of retail electricity has skyrocketed, concentrating solar plants are starting to make economic, environmental and political sense. Using a fuel free energy source such as solar will prevent wild price swings in electric rates such as those seen in California post deregulation. Solar can be compared to a fixed rate mortgage while fossil fuel power plants can be compared to an adjustable rate mortage (ARM). The fixed rate mortgage is more expensive to begin with but you are protected from huge price swings that come with fluctuations in interest rates. An expensive lesson Wall Street and Main Street have both learned in recent history.

One major obstacle is getting the transmission lines from the desert to the grid or from offshore wind farms to the coast. Government incentives are need to make this investment in infrastructure economically viable. There has been a greenshift in the American psyche which will reward politicians for supporting projects like this. The collapse of the bridge in Minnesota this past summer demonstrated that much of the United States infrastructure needs to be upgraded for the 21st century, the national electric grid included. Perhaps levying a tax on carbon dioxide or simply diverting money from foreign wars to domestic infrastructure could pay for these updates.

As far as public policy goes, the United States needs to adopt a coherent, long term commitment to supporting renewable energy. Government incentives will be needed in the beginning, but as economies of scale are reached in production and installation, the government incentives can be phased out. Just as Eisenhower built the national highway system post World War II, the United States needs to update it’s national electric grid and invest in renewable energy infrastructure that plugs right into a 21st century “smart” grid. By preventing events such as the blackout of 2003 and the blackout in Queens, NY in the summer of 2005, these updates will pay for themselves with the avoidance of one major event. It is in our national security and economic interests to focus on the issue of future energy needs immediately. The 30% federal tax credit and accelerated depreciation for solar, commercial projects needs to be extended to at least 2015 in for the industry to continue to grow, bring costs down and become competitive with traditional sources of electricity. With these extensions, which are currently part of the Energy Bill which is in committee, the solar industry will be able to reach the holy grail of “grid-parity”, whereby solar will be just as cheap, if not cheaper to produce than traditional sources of electric production. Once “grid parity” is reached, all incentives can be removed and the beauty of the free market will take over pushing solar energy to installed capacity levels unachievable through government subsidized programs.

John Moran
E-mail johnflanaganmoran@gmail.com

Posted By John Moran New York, New York : November 21, 2007 7:01 pm

Why does anyone care who fixes the problem and who cashes in. As long as the problem is fixed, then who gives a damn!

Posted By Tom, Milwaukee, Wisconsin : November 21, 2007 6:36 pm

Gore will get richer but the changes will have a negligible effect on the environment. He will be seen as the good guy while no real good is being done. This is why Gore rules.

Posted By Yadgyu, Harkeyville, TX : November 21, 2007 5:34 pm

It does not matter that Al Gore donated his salary to charity – his real profits come in the form of capital gains.

Gore is the Chairman of Generation Investment Management in London, which is a venture capital firm which includes investments in new energy and carbon trading schemes. His connection with Kleiner Perkins, etc is to lobby the government for regulations that will favor his GIM company and Kleiner’s VC funded businesses in the energy sector.

Al Gore makes his profit in the capital gains and stands to make hundreds of millions, if not much more. He is doing what any CEO does – he’s going around “selling” his business idea and lobbying for government regulation to favor his business and hopefully create road blocks for his competitors.

There is nothing saintly about what he is doing – its strictly business that will likely make him extremely wealthy.

Posted By Doug,Spokane,WA : November 21, 2007 4:20 pm

Why is it that so many comments pass along innuendos, rumors, and outright lies as if they were truth? With regard to research into Gore’s background, below is the text of a note made public before the 2000 election, written by Robert Kahn and Vinton Cerf. (Do your research, if you don’t know who they are!)

Granted, the jokes about Gore were funnier than this article below, at least in part because the jokes were based on untruths. In a similar vein, well-known jokes about Bush are more sad than funny…
——–
Al Gore and the Internet

By Robert Kahn and Vinton Cerf
Al Gore was the first political leader to recognize the importance of the Internet and to promote and support its development.

No one person or even small group of persons exclusively “invented” the Internet. It is the result of many years of ongoing collaboration among people in government and the university community. But as the two people who designed the basic architecture and the core protocols that make the Internet work, we would like to acknowledge VP Gore’s contributions as a Congressman, Senator and as Vice President. No other elected official, to our knowledge, has made a greater contribution over a longer period of time.

Last year the Vice President made a straightforward statement on his role. He said: “During my service in the United States Congress I took the initiative in creating the Internet.” We don’t think, as some people have argued, that Gore intended to claim he “invented” the Internet. Moreover, there is no question in our minds that while serving as Senator, Gore’s initiatives had a significant and beneficial effect on the still-evolving Internet. The fact of the matter is that Gore was talking about and promoting the Internet long before most people were listening. We feel it is timely to offer our perspective.

As far back as the 1970s Congressman Gore promoted the idea of high speed telecommunications as an engine for both economic growth and the improvement of our educational system. He was the first elected official to grasp the potential of computer communications to have a broader impact than just improving the conduct of science and scholarship. Though easily forgotten, now, at the time this was an unproven and controversial concept. Our work on the Internet started in 1973 and was based on even earlier work that took place in the mid-late 1960s. But the Internet, as we know it today, was not deployed until 1983. When the Internet was still in the early stages of its deployment, Congressman Gore provided intellectual leadership by helping create the vision of the potential benefits of high speed computing and communication. As an example, he sponsored hearings on how advanced technologies might be put to use in areas like coordinating the response of government agencies to natural disasters and other crises.

As a Senator in the 1980s Gore urged government agencies to consolidate what at the time were several dozen different and unconnected networks into an “Interagency Network.” Working in a bi-partisan manner with officials in Ronald Reagan and George Bush’s administrations, Gore secured the passage of the High Performance Computing and Communications Act in 1991. This “Gore Act” supported the National Research and Education Network (NREN) initiative that became one of the major vehicles for the spread of the Internet beyond the field of computer science.

As Vice President Gore promoted building the Internet both up and out, as well as releasing the Internet from the control of the government agencies that spawned it. He served as the major administration proponent for continued investment in advanced computing and networking and private sector initiatives such as Net Day. He was and is a strong proponent of extending access to the network to schools and libraries. Today, approximately 95% of our nation’s schools are on the Internet. Gore provided much-needed political support for the speedy privatization of the Internet when the time arrived for it to become a commercially-driven operation.

There are many factors that have contributed to the Internet’s rapid growth since the later 1980s, not the least of which has been political support for its privatization and continued support for research in advanced networking technology. No one in public life has been more intellectually engaged in helping to create the climate for a thriving Internet than the Vice President. Gore has been a clear champion of this effort, both in the councils of government and with the public at large.

The Vice President deserves credit for his early recognition of the value of high speed computing and communication and for his long-term and consistent articulation of the potential value of the Internet to American citizens and industry and, indeed, to the rest of the world.

Posted By Ron Lee, Woodland, CA : November 21, 2007 4:14 pm

Gore gets rich on clean energy and helps the planet.

bush and cheney get rich on dirty oil and profits funneled to middle east terrorists and the world goes to shit.

which do you prefer? or shall i rephrase the question, do you hate america enough to support bush and believe this right wing hit job?

Posted By billy, san diego, ca : November 21, 2007 4:03 pm

“NO, NO, NO!!!. This is blatantly wrong. Do your research. Everyone knows that Al Gore is personally responsible for inventing the internet.”
Tood’s right:
http://www.eff.org/Legislation/Bills_by_name/Old/info_infra_tech_s2937_92_gore.bill

Posted By Ivan G., Round Lake Beach, Ill. : November 21, 2007 3:47 pm

Who doesn’t stand to get rich by doing good work? Honestly. Don’t you stand to get rich by writing controversial articles? Hypocrite.

Posted By Sean, San Jose : November 21, 2007 3:24 pm

I don’t believe this could be any worse than the last years we have had with Bush and his cronies taking the US to the toliet.

Posted By Michael,Hendersonville, Tennessee : November 21, 2007 3:18 pm

Can the WSJ editorial page, and other like-minded individuals (read conservatives)stomach a breakthrough that leads to cheap, efficient energy? Sure, we can. After-all, we’re investors, too. Regardless of who “discovers” a breakthrough, if it’s a viable investment opportunity where we can invest our money in its equity and make money off the investment, who cares who discovers it. By the way, Gore has taken more credit for things for which he had little or nothing to do with. Anyone remember his claim to “inventing the internet?” Even ultra left-wing nutcase Chris Matthews made this point about Gore on his show the other night. And, by the way, Gore is already rich.

Posted By John, Kandahar, Afghanistan : November 21, 2007 3:14 pm

Your choice people

1) Send your cash and gold overseas and see little chance of the mony being spent in the US.

2) Use the biomass and alternative fuel source locally. The cash will circulate in the domestic market.

We can argue global warming all you want, but the dollars for oil game will continue.

Posted By Gordon, Detroit : November 21, 2007 2:47 pm

Silicon Valley is all about hype. They created the dotcom bubble …

Venture Capitalists are all about quick money. They claim they are advancing technology …

Posted By Steve, Santa Clara, CA : November 21, 2007 2:38 pm

@ the naysayers. There still is a flat-earth society. I hear they are looking for members. The IPCC includes the best and brightest scientists the world has to offer. Sure there are differences of opinion, but these are about minor issues. The overall conclusion is the same – anthropogenic warming, caused by use of fossil fuels. What will it take to get you to believe? Any bitterness you may express towards Al Gore and what he has done to raise awareness of this issue is sour grapes. Mobilizing the forces of capitalism in the search for meaningful solutions will result in some failures, capitalism is creative destruction. In the end, it is the only acceptable way to solve this problem.

Posted By Little Carbon Feet, Portland, OR : November 21, 2007 2:35 pm

How much did AL Gore make on Campaign when he run for President and how much did he keep when he lost?
How much did he get for leaving Congress?
How much Nobel prize he planned to keep?

Posted By yrk usa : November 21, 2007 1:48 pm

Well It sure beats The Bush family or Cheney’s profiting on the American People.

Posted By Anonymous : November 21, 2007 1:28 pm

While true, the viability of energy projects is not something VC typicaly involves itself in…science. The fact of the matter is that this isn’t about sales or products or service. Cold hard math from enormous engineering projects determines longterm viability and profitability. And science dictates the limits of “thinking outside the box” and innovation. Granted, the groundbreaking innovations of the century have always come from people who choose to push the boundaries, the real matter is, that many, many, MANY people try and very, very FEW even get a hint of success. Fewer still, not even double digit numbers, see breakthroughs in a century.

The big trouble is, even big oil companies like BP are in on the alternative energy race…and let’s face it, they have lots more funding to throw around than Al Gore.

Posted By J Houston, TX : November 21, 2007 11:47 am

Everyone knows this is just a front for Al Gore to hunt down Man-Bear-Pig.

Posted By James, Troy MI : November 21, 2007 10:36 am

“The Internet itself grew out of a Defense Department project.”

NO, NO, NO!!!. This is blatantly wrong. Do your research. Everyone knows that Al Gore is personally responsible for inventing the internet.

Posted By Todd, Seneca, SC : November 21, 2007 9:59 am

“But could they stomach a breakthrough like that and Al Gore taking credit?”

The answer is not just yes, but HELL yes. That is what they said, right? Learn to read!

Posted By David Lewisville, TX : November 21, 2007 9:44 am

Gore’s ‘man-made’ global warming is the biggest crock of crap that the counter-culture has ever tried to get over on the consumer.

Posted By Sanjong Thapa, East Jesus, Nebraska : November 21, 2007 8:27 am
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