Another Shiny Penny Hits Reality

Why Renewcell failed according to Elsa Wenzel Special Projects Editor
March 22, 2024 of Greenbiz.com

https://www.greenbiz.com/article/3-lessons-bankruptcy-circular-fashion-startup-renewcell

This time last year, Renewcell CEO Patrik Lundström appeared to have everything he needed to end the fashion industry’s dependence on emissions-heavy virgin cotton and replace it with Circulose, his company’s sustainable alternative made from recycled clothing:

The company had $29 million in financing from H&M over seven years to get production off the ground. The product itself was “world changing,” and looked and felt great, according to those who worked with it.

Renewcell had the clients: H&M, Tommy Hilfiger parent PVH and Zara parent Inditex each agreed to buy the product in multi-year “offtake” agreements. Levi’s launched its Circular 501 model jeans in 2022 with Circulose. The company’s factory in Sundsvall, 235 miles north of Stockholm, had a production capacity of 10,000 metric tons per month.

And the stock market agreed. In September, Renewcell’s stock hit a high for the year of about $9 per share. But by February, Renewcell had fired Lundström. The company lost its financing and filed for bankruptcy. The stock now sits about 50 cents, having lost 95 percent of its value.

When the end came, Renewcell’s chairman of the board, Michael Berg, blamed everybody else: “This is a sad day for the environment, our employees, our shareholders, and our other stakeholders, and it is a testament to the lack of leadership and necessary pace of change in the fashion industry,” he said in a statement.

Partners, analysts and employees are still sifting through the wreckage to figure out what went wrong. There were multiple factors, of course. But sources who spoke to GreenBiz cited these major reasons:

Circulose was too expensive

Management stumbled

Sales nosedived

Everyone wanted it, and no one wanted it

It is difficult to build a supply chain from scratch.

Amen!

Denial is not a River in Egypt

This statement is a pun intended to point out when people are in a state of denial about their future. I am alarmed that so many in the energy industry are in this state and not looking at simple facts before they make grand and glorious claims stating they will save the planet for future generations. I firmly believe they are denying simple facts as previous blogs have shown.

It was therefore refreshing to see so many new recent forecasts that temper this enthusiasm, starting with a feature article in the Wall Street Journal this morning:  https://climate.cmail19.com/t/d-e-elutuuy-drtjurjkiu-r/

It caught my eye because it pointed out the opportunity to use waste heat recovery in industrial processes to reduce energy use and thereby the emissions of big industry. I spent most of my adult life in this area and wrote several books on the subject. I even made the front page of the Wall Street Journal with my work with Southern Company. So when I read the ways they were thinking it would work, it struck me as odd that they didn’t do a little research to see what we learned about the obstacles to commercialization.

But, along with all this enthusiasm came some realistic predictions about the impacts. As you check into the research referenced in this article, you come across the graphic I included as the key one in this blog. Notice that we are not going to stop using fossil fuels anytime soon, and not until well past the end of this century.

How then can we think we are not putting more carbon dioxide into the atmosphere? Am I going too fast? Maybe so. Plus, where are the zealots’ answers to how all this worldwide use of fossil fuels is somehow going to be replaced with wind and solar … which ironically use enormous amounts of fossil fuels to manufacture, ship and install. Denial is such a natural human tendency, especially when you don’t want to face the obvious facts.

For example, we are all going to die. This is not a surprise. Yet very few of us can face this fact soberly and with a planned finish to our lives. Instead, we deny the facts that emerge as early warning signs. We don’t get medical attention until it is too late. We rationalize our lives and offer ourselves excuses for this or that. We are in a state of denial.

It is interesting to read Kubler-Ross’s Five Famous Stages of Death and Dying which has five key phases, the first of which is Denial:

Phase 1: Denial is a common defense mechanism used to protect oneself from the hardship of considering an upsetting reality. Kubler-Ross noted that patients would often reject the reality of the new information after the initial shock of receiving a terminal diagnosis. Patients may directly deny the diagnosis, attribute it to faulty tests or an unqualified physician, or simply avoid the topic in conversation. While persistent denial may be deleterious, a period of denial is quite normal in the context of terminal illness and could be important for processing difficult information. In some contexts, it can be challenging to distinguish denial from a lack of understanding, and this is one of many reasons that upsetting news should always be delivered clearly and directly. However, unless there is adequate reason to believe the patient truly misunderstands, providers do not need to repeatedly reeducate patients about the truth of their diagnosis, though recognizing the potential confusion can help balance a patient’s right to be informed with their freedom to reconcile that information without interference.

Phase 2: Anger is commonly experienced and expressed by patients as they concede the reality of a terminal illness. It may be directed at blaming medical providers for inadequately preventing the illness, family members for contributing to risks or not being sufficiently supportive, or spiritual providers or higher powers for the diagnosis’ injustice. The anger may also be generalized and undirected, manifesting as a shorter temper or a loss of patience. Recognizing anger as a natural response can help health care providers and loved ones tolerate what might otherwise feel like hurtful accusations. However, they must take care not to disregard criticism that may be warranted by attributing them solely to an emotional stage.

Phase 3: Bargaining typically manifests as patients seeking some measure of control over their illness. The negotiation could be verbalized or internal and could be medical, social, or religious. The patients’ proffered bargains could be rational, such as a commitment to adhere to treatment recommendations or accept help from their caregivers, or could represent more magical thinking, such as efforts to appease misattributed guilt they may feel is responsible for their diagnosis. While bargaining may mobilize more active participation from patients, health care providers and caregivers should take care not to mislead patients about their own power to fulfill the patients’ negotiations. Again, caregivers and providers do not need to repeatedly correct bargaining behavior that seems irrational but should recognize that participating too heartily in a patient’s bargains may distort their eventual understanding.

Phase 4: Depression is perhaps the most immediately understandable of Kubler-Ross’s stages, and patients experience it with unsurprising symptoms such as sadness, fatigue, and anhedonia. Spending time in the first three stages is potentially an unconscious effort to protect oneself from this emotional pain. While the patient’s actions may potentially be easier to understand, they may be more jarring in juxtaposition to behaviors arising from the first three stages. Consequently, caregivers may need to make a conscious effort to restore compassion that may have waned while caring for patients progressing through the first three stages.

And finally, Phase 5: Acceptance describes recognizing the reality of a difficult diagnosis while no longer protesting or struggling against it. Patients may focus on enjoying the time they have left and reflecting on their memories. They may begin to prepare for death practically by planning their funeral or helping to provide financially or emotionally for their loved ones. It is often portrayed as the last of Kubler-Ross’s stages and a sort of goal of the dying or grieving process. While caregivers and providers may find this stage less emotionally taxing, it is important to remember that it is not inherently more healthy than the other stages. As with denial, anger, bargaining, and depression, understanding the stages has less to do with promoting a fixed progression and more to do with anticipating patients’ experiences to allow more empathy and support for whatever they go through.

Inflation is NOT Down

I am furious that our news media is looking for any good news to support the Biden presidency. The news media is no longer about news … it is almost always about propaganda. This latest implication just makes my blood boil.

This morning’s “news” proclaimed that inflation is down to half of what it was. That is a lie. Inflation is higher than it has ever been … it is just the rate of the increase in inflation that has declined. In fact, as the graph shows, inflation these past few years is way above the levels for the prior administrations … both republican and democratic. Inflation is high.

Prices are not down … they are still sky high and painfully so for those trying to put food on the table. Yes, gasoline prices declined some from their high but they are still very high.

Perhaps the average American can see through this nonsense … perhaps not. All I know is that when I go the grocery store and pick up a box of cereal, it is the smallest box I can remember. Plus, the price is sky high. While I have stopped buying pancake mix, I am still struck by the price being twice or more higher than just a few years ago. Fortunately I am not suffering with these increases, but I know many are in our communities.

Perhaps most stunning of all is the price of fast food, especially hamburgers. Our son goes out to eat at Five Guys and racks up a $23 charge for one burger, French fries and a coke. Yes, it is a good sized meal … but really … are they kidding? So, I went to McDonalds and experienced the same thing even there although not quite as high with $14 for the trio.

By the way, I might suggest we study Waffle House over the past decade. By contrast, my occasional breakfasts at Waffle House have been pretty much the same price they have always charged. A big breakfast for about $10 plus a tip. Plus, I feel I am eating with family every time I dine there.

I am impressed with that, but I am incensed by our misinformation in the news. Worse yet, this morning the Wall Street Journal pointed out that the president is about to blame companies for raising prices over these past few years. Yes, the earnings may be up as well, but most of the cost increases were due to the government’s inflationary spending. Plus, the desire to have people working menial jobs earning a living wage doesn’t help.

I guess we will hear more about that tonight with the state of the union address. The state of the union is not good.

Take a look for yourself: https://www.wsj.com/articles/joe-biden-price-strike-force-business-consumers-white-house-council-of-economic-advisers-64178737?st=plb7phgnk6kutqx&reflink=desktopwebshare_permalink

Inflation is NOT down.

Making a Difference

This statement is at the root of what most professionals want to do with their lives. And yet, the media seems focused on convincing us that others will do this for us if we will just pay for them to do so. Take a look at this article on energy impacts we can all make in our homes: https://www.nytimes.com/interactive/2024/climate/tax-breaks-inflation-reduction-act.html

Nowhere do you see the easiest one that everyone can do whether they rent or own their home: adjust the thermostat. Every degree can change energy used by heating or air conditioning by about 8% … one degree makes a huge difference. The online energy calculators we developed are just about everywhere and there is no mention of using them. These calculators will provide conservative and accurate predictions of savings for all ideas in the home and rank them as to financial impacts.

Try it for yourself: https://account.tecoenergy.com/EnergyAudit/Estimated

Nope, what you have is yet another article implying that you should invest in solar for your roof and be happy that our government will solve the long-term climate challenges by strokes of their pens and funding the winners that make this possible.

One has only to look at the legacy of this thought for the past four decades to prove this idea is faulty. The government has always backed the wrong horse and then declared themselves brilliant when the unbanned what they banned in the past or quietly bankrupted the firms they backed.

We all want a better world for ourselves and our children. We all know we should eat less processed food, exercise, get a good night’s sleep, and love one another along the way.

Yet, we are all getting lazier and lazier as time goes on in our quest for convenience. Amazon is striving for same day deliveries and that is simply amazing. Yet, my garbage is now consists almost totally of their packaging.

My wife Susan came up with a brilliant idea … why not leave the packaging from the previous delivery on our porch so they can pick it up and reuse or recycle it. After all, those nice people delivering them are already walking to our front door and returning to their trucks empty-handed.

Isn’t that a brilliant way to make a difference? Isn’t it a blinding flash of the obvious? If somebody out there can get Amazon’s attention and suggest this, please do.

Oh, and by the way, Amazon just introduced a fund to focus on recycling.  You can see that here by searching for that topic on GreenBiz

Physician … heal thyself!