Apple Investing In Solar In China: The Importance Of Spin -- April 16, 2015

Okay, so this is the lede:

Apple is expanding its environmental efforts by investing in a new Chinese solar power project and preserving 36,000 acres of "sustainable" timberland in Maine and North Carolina.

The initiatives come as the tech giant this year met a self-imposed goal of powering all its U.S. operations with renewable energy to reduce carbon emissions — initiatives that have won high marks from environmental groups like Greenpeace.

On Thursday, Apple announced a new focus on using paper from trees harvested under environmentally sound conditions. It's also promising to use more renewable power overseas, where Apple relies heavily on contract manufacturers — and where a top executive acknowledged the company can do more.

Sounds like Apple is making a huge Chinese solar investment. Let's see. Deep in the article:

The new solar project in China has a capacity of 40 megawatts, which is smaller than some projects Apple has announced in the United States. By comparison, Apple is spending $850 million for rights to nearly half the output of a 280-megawatt solar facility planned for construction south of Apple's Cupertino, California, headquarters. That project will produce enough energy to power all of Apple's California offices, a computer center and 52 retail stores.

Still, the Chinese project will produce more than the amount of energy consumed by Apple's 19 corporate offices and 21 retail stores in China and Hong Kong, Jackson said. She added that Apple uses renewable energy for 87 percent of the power at its facilities worldwide.

So, two long paragraphs with lots of numbers to hide the "40-megawatt" figure. In the US:

The current national average of homes powered by a MW of solar photovoltaics is 164.

164 x 40 = 6,560 homes. About half of Williston before the boom. And this new Apple project is in ... drum roll ... China.

Whatever.

Now, back to $850 million for 140 megawatts = $6 million / MW.

From an August 25, 2014, post, this is 30-second sound bite for "cost of renewable megawatt":

• Solar: $3 million / MW
• Wind: $2.5 million / MW
• Natural gas: $865,000 / MW

So, for a few million dollars, Apple gets:

• a huge headline
• more exposure
• kudos from the environmentalists

What's not to like.

Disclaimer: I often make simple arithmetic errors. There may be factual and/or typographical errors above. If this information is important to you, visit the source.

Oh, that 36,000 acres of forestland? About 56 sections. Less than two townships in North Dakota.

I assume the money spent on these projects comes out of Apple's "advertising" budget.

But there's more: the wood chip industry in North Carolina is huge -- clearing forests to sell wood chips to England and Europe. The Apple connection is interesting.