Today marks a historic event in the American experience. One of the most exciting things from my perspective is the dawn of a more sustainable energy policy. Too long have our leaders from Nixon through today claimed we will end our dependence on foreign oil for a variety of good reasons: national security, little control of the supply (yet a huge percentage of the demand), and environmental concerns. This is not new information. The tools and resources we have begun to create over the last couple of decades now offer clear alternatives. So in honor of inauguration day I will lay out the business case for being proactive and forward thinking as we strive to achieve this illusive goal.

Oil, natural gas, uranium, and coal are all finite resources. By definition we will at one time in the near or distant future run out of these resources. In the interim the price will increase as the supply decreases. It’s not hard to imagine crossing the tipping point where energy and how we use it will be substantially impacted by a diminishing supply. The result on our economy and our livelihoods will make this current recession look like the good old days. Energy that allowed us to heat our homes, drive to work, receive goods and supplies, and visit our friends and family will be unaffordable. And that would be the end of our economic miracle.

Let’s not think in terms of quick solutions. Clean coal? The first problem is it does not exist. Considering we have a huge supply of coal we COULD invest in this emerging technology and maybe in a decade or two achieve a more environmentally acceptable coal burning process. Great. Problem is this benefits coal providers and existing coal energy plants much more than it benefits us. If you are looking to start an energy company, would you really want to expose yourself to shifting commodity prices and environmental concerns? Not if a better alternative exists.

I don’t need to discuss gas. It has been discussed to the point of inducing boredom since the early 70’s. So how about natural gas? Frankly, there are good business reasons to consider this technology. It burns clean and is an efficient fuel. It’s less expensive and best yet, we have a ton of it. Yes, there are plenty of environmental concerns but this is outside of a blog written on the business side of energy creation. Why else would oil tycoon turned pragmatist T Boone Pickens be such a huge proponent. For powering our fleets and major transportation systems there is a strong argument for considering natural gas; it makes business sense and ends our dependence on foreign resources. Still, it is by definition short term; a band aid until we find something better.

One of my favorite renewable energies that has come into vogue in recent years is ethanol. The absurdity of using food as fuel when we have starving people in this world disturbs me just as much as the energy inefficiency from production through consumption. It takes massive machinery to harvest and does not burn as efficiently as its petroleum counter part. Once again, as a business argument those points are irrelevant. Subsidies and prevalent supply make this a viable alternative to petroleum. Creation of this energy is dependent on the weather and the water supply which can and will be problematic. Also the Brazilians have developed a sugar cane and soy version that they can do a little cheaper than we can (without subsidies) and that’s a business threat. Again, if I were choosing to open an energy company now, would I choose corn based ethanol?

Uranium offers a good solution, but we all have grown up with the risks associated with nuclear energy. It’s hard to build plants that the public is downright fearful of and the waste is a liability. Though modern plant design (as evidenced by France’s nuclear production) assuages some of these concerns, nuclear energy production has a stigma that is hard to overcome. Obviously it too is a finite resource. It can be a long lasting, profitable, and efficient energy source but if I were to choose to open a plant, would I want to deal with that baggage? Not likely.

That being said, these technologies will not go easy into the night. In the short term they have subsidies and infrastructure and well funded lobby groups that are not easily dismantled or repurposed. I can’t tell you we will be free of these sources anytime soon. Petroleum alone has become such a staple in virtually every product we buy and use that it is likely to be with us for along time to come.

So what do we need to move toward renewable energy? We need investment in the infrastructure and incentives to move towards improving our ability to capture the wind and the heat the earth creates naturally. We need to further develop our ability to capture solar energy while avoiding unsustainable manufacturing materials. We need to subsidize a variety of new technologies and give tax credits to early adopters. We need to do a similar program for making our buildings and vehicles more efficient and less apt to waste. And we need to rethink how energy is created and distributed and not be suckered into an ad hoc state by state energy grid that hinders national development.

There are a lot of solid business opportunities here with or without subsidies. It’s time to eschew instant gratification and reliance on unsustainable energy options. The difficult part is taking these seemingly disparate ideas and centralizing our strategy. We need long term focus by bright people who are not beholden to old (well funded) ideas about energy. In fact, maybe the energy companies who spend so much money to fight these initiatives can join the party. Frankly, there in the best position to do something about it. In honor of this moment in history, let’s go out and make some money while we make a difference!