Mr. David Ostlie, president of Energy Performance System, Inc. (EPS) tried to introduce a new concept of
Whole – Tree EnergyTM (WTE) technology to the market. There are three key features that make this technology different (a) using whole hardwood trees to produce electricity, (b) drying the whole trees to avoid emissions, and
(c) implementing three – stage combustion for efficient combustion process. The objective of this project is to commercialize Whole – Tree EnergyTM(WTE) technology.
Even though studies have revealed successful results as well as feasibility of large – scale electricity production, there are some concerns regarding this technology.
1. The environment and pollution
Comparing to conventional coal – fired power plants, WTETM produces significantly less SO2, NOX, ash and CO2; therefore, reduce air pollution, acid rain, and global warming.
2. Jobs and economics development
By building WTETM plants, there will be over 600 jobs available for locals. This will be economically beneficial for the community.
3. Buying interest of utilities
T here is an opportunity to either retrofitting to use in WTETM technology or building new plants to use
WTETM technology.
Issues in this case and alternatives to solve the issue WTETM produces
(1)
In a utility’s decision whether to buy and use the WTETM technology (a) who comprises the buying center and (b) what aspects of the buying decision does each look at?
Due to prospective utility, customers are organizational markets, which have decision – making unit
(DMU)1 in the organization or company. The process of buying is made professionally by this decision – making unit (DMU) and based on rationality. Members of a buying center of each utility consist of production division
(users and deciders), R&D division (influencers and deciders), purchasing division (buyers and gatekeepers), and executive committee (approvers). Additional details in utility’s buying decision are as
References: Lamarre L. Electricity From Whole Trees. Electric Power Research Institute (Internet). 1994 (cited 2014 Sep 18) Wikipedia. Sustainable development (Internet). 2014(cited 2014 Sep 11). Available from: www.wikipedia.org/ wiki/sustainable_development.