Inside Track

March 5, 2011 at 7:16PM

Cargill Inc. is hoping to cut its ocean cargo fuel tab and greenhouse gas emissions by flying a kite.

The global fertilizer-to-food producer has signed an agreement to install a 320-square-meter kite made by SkySails of Germany on a 30,000-ton vessel chartered by Cargill. The sail is designed to cut consumption of dirty bunker fuel by up to 35 percent in ideal sailing conditions.

"For some time, we have been searching for a project that can help drive environmental best practice within the shipping industry and [we] see this as a meaningful first step," said G.J. van den Akker, head of Cargill's ocean transportation business. The shipping industry currently supports about 90 percent of the world's international trade in products and commodities. "In a world of finite resources, environmental stewardship makes good business sense. In addition to lowering greenhouse gas emissions, the SkySails technology aims to significantly reduce fuel consumption and costs. We are very impressed with the technology and see its installation on one of our chartered ships as the first part of an ongoing, long-term partnership."

SkySails, which last year raised more than $20 million in capital, has developed a patented technology that uses a kite that flies ahead of the vessel at a height of 125 to 450 yards in a figure-eight configuration. An automatic control system steers the kite and adjusts its flight path.

According to a study by the UN's International Maritime Organization, up to 100 million tons of carbon dioxide (CO2) could be saved every year by the broad application of the SkySails' technology on the world merchant fleet. This figure would equate to 11 percent of the CO2 emissions of Germany.

Cargill does not today own or operate ships, but transports more than 185 million tons of commodities annually.

SOLAR FIRM'S 1,000TH SALE

Lakeville-based Despatch Industries, a beneficiary of China's move to become the globe's biggest manufacturer of solar-energy installations, recently celebrated the sale of its 1,000th firing furnace at the Shanghai New International Photovoltaic Power Generation Conference and Exhibition in February.

The company also reported 2010 sales of more than $200 million, a doubling over the past several years.

"We had an exceptional year with all key areas of our business growing significantly . . . highlighted by the rapid growth of the China solar market," according to CEO Patrick Peyton. "We have aggressively increased our internal capacity to meet customer demand and we are expanding our local and international employee base in order to capitalize on future opportunities."

Despatch says it is the "market-leading metallization firing furnace equipment provider" to the world's solar-cell manufacturers. The company added more than 130 Minnesota jobs last year, bringing total employment close to 350 people. Despatch also makes high-test thermal technology for semiconductors used by the likes of 3M, Intel, Micron and other semiconductor, health care and industrial concerns.

AFRAID TO BUY?

TRY A LITTLE VANILLA

The poor economy may not be the only reason consumers aren't consuming. A new study has found that when people feel judged by a salesperson or are worried they won't get a fair deal, they won't pull the trigger on a purchase.

University of Minnesota marketing professor Kathleen Vohs, co-author of a study that will appear in an upcoming Journal of Consumer Research, tested this theory on consumers seeking car repairs and financial advice. The researchers found that consumers walk away if they feel they're playing into stereotypes (that they're bad at math or don't understand how cars work) -- even if they don't believe them. The actual behavior of the salesperson may not matter, Vohs said.

Vohs and colleagues Hakkyun Kim of Concordia University in Montreal and Kyoungmi Lee of Yonsei University in Seoul have two suggestions for retailers: Avoid advertising that plays into stereotypes; and do anything you can to reduce the anxiety and help consumers feel calm. A hint of vanilla, known for its calming properties, may just do the trick, the researchers assert.

NONPROFIT NOTES

•Twin Cities RISE! was one of 12 organizations selected from several hundred applicants to get $150,000 grants from the Elevate America Community Initiative sponsored by Microsoft. The grant will help RISE! fund a comprehensive set of technology-training resources.

"We are thrilled to receive this recognition and financial support from Microsoft," said Art Berman, president and CEO of Twin Cities RISE!, which trains hard-to-employ adults. "Technology skills training is critical to our participants' success, and this grant will help us to take our training program to an even higher level," said Berman, a former Ameriprise executive. More info: www.twincitiesrise.org.

•Finnegans, the Minneapolis-based nonprofit beer company that donates profits to local charities, has launched its March "Pint-a-Thon," -- a cross between a marathon and a night at the pub. Details at www.finnegans.org.

about the writer

about the writer

Neal St. Anthony

Columnist, reporter

Neal St. Anthony has been a Star Tribune business columnist/reporter since 1984. 

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