Within 16 days of its founding, the class had succeeded in meeting Dr. Ulrich’s challenge: 150 TerraPasses had already been sold, making it a profitable company.
Today, nine students (with the help of Dr. Ulrich and a few others) are still with the company and committed to both preserving the environment and making TerraPass a household name.
Where the Money Goes
The money generated by TerraPass sales is directed into three major areas: wind power, methane abatement, and industrial efficiency. One of the major avenues for wind power proponents is to allow people to select a “green power” option as an alternative and environmentally-friendly way of obtaining energy from utility companies. Methane abatement is a way of dealing with harmful landfill gasses by means of anaerobic digestion.
Finally, industrial efficiency is sought through markets such as the Chicago Climate Exchange, which institutes a cap and trade system via willing industrial participants. “It’s a voluntary framework that adheres to the Kyoto Protocol and seeks to reduce carbon emissions,” Arnold said. “It’s a place where companies can come together to find common solutions to our environmental problems.”
“We’re seeking to combine a belief in scientific research with a broad-based approach to solving our environmental problems.”
The Future
While TerraPass won’t solve all of the world’s environmental problems, Arnold believes that it can have a major impact. “TerraPass can solve global warming,” he said. “But local issues – such as the smog problem in Los Angeles – will require additional solutions.”
TerraPass sees itself as more than a student-run one-trick pony, however. As the company is listed under the name Benven LLC (short for Beneficial Ventures), Arnold says that there are a number of new environmentally-friendly initiatives in the works.
Arnold sees a bright future for TerraPass, and for other environmental-for-profit companies as well. “Social entrepreneurship is a growth industry. People are attracted to companies dedicated to making the world a better place.”
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Article comments
1 - mrbenning
Very nice article Eric!
I'm curious, though, about the company's potential to survive. It would definitely sway some guilt, but with it being voluntary I think the novelty might wear off.
Is the cost tax deductible?
2 - Eric Berlin
Thanks very much, mrb.
They do seem to have hit some kind of urge in the American public, likely upscale folk who are guilty about pounding the roads everyday. We'll have to see about long-term viability.
TerraPass is not tax deductible at present. You'd think that it would be a no brainer for some enterprising politician to set up a tax credit for investments/donations into these kinds of companies.
3 - Temple Stark
Tax-deductible would help.
You know what I've always thought would be a contradictary but powerful symbol - a military tank running on biofuel or peanut oil.
4 - Eric Berlin
You're right, Temple -- a tax deduction would be a no brainer, don't you think? It also makes Schwarzenegger -- a moderate Republican Gov a huge, progressive, gas guzzling state -- a very very smart target for this PR move.
Tanks running on peanut oil... I like it. Just doesn't vibe with the whole military-industrial-petro-oil complex thing though, does it?
5 - John Humphrey
Actually, the military is the largest consumer of biodiesel in the country. see this wired article: here
6 - Anonymous
Also, check out carbonfund.org as a tax deductible alternative to Terrapass.