Domestic Fuel

North Dakota State University has opened a first-of-its-kind wind-to-hydrogen project at the North Central Research Extension Center just south of Minot, ND.

In an article in the Minot Daily News, Sen. Byron Dorgan said this country desperately needs an energy source besides oil:

“In the longer term, in my judgment, the fuel of the future is going to be hydrogen,” Dorgan said. “I’m a big fan of the biofuels, I’m a big fan of ethanol, I believe it’s enormously important that we’ve invested in wind energy. But I believe —especially in the longer term — our grandkids need to be driving vehicles that put water vapor out the tailpipe and have twice the efficiency of power to the wheel. That comes with hydrogen fuel cells. It allows us to say to the Saudis and the Kuwaitis and others, ‘We don’t need your oil.’”

The intermittent wind energy will be used to secure a more reliable energy source: hydrogen. The power generated from the wind will be used to seperate hydrogen from water molecules. The hydrogen can then be used in vehicles and generators equipped to burn it.

Idaho is one of the windiest states in America, but it’s wind power generating capabilities have been all but nil… but that could soon change.

This story in the Idaho Statesman says a couple of regulatory cases at the Idaho Public Utilities Commission are finally being settled, ending a two-year moratorium on most new wind energy development in the state. Experts believe this could open the door to a power source with more potential than all of Idaho’s current energy resources combined:

“This is huge,” said Gerald Fleischman, an engineer with the Energy Division of the Idaho Department of Water Resources. “This is not a small, side alternative energy source that it’s nice to talk about and it’s going to help us out a little bit. That is not what it is. It is a big, monster resource.”

Fleischman calculates that Idaho could produce twice as much energy from wind as it produces and uses from all sources. “That’s the potential from identified sites. The real potential is probably bigger than that,” he said.

Idaho has just three commercial wind farms right now. But with the nearly finalized change in the commission’s rules and with the spiraling cost of natural gas to fire more conventional power plants, that number could grow dramatically.

Stock in wind-power generating companies could have portfolios breezing right along.

This post on the Seeking Alpha web site, a stock market opinion and analysis blog, points out that wind power generation rose 300% between 2000 and 2006. And it highlights 12 stocks you might want to consider if you want to add some of that rising sector to your holdings, including:

Alstom (AOMFF.PK), based in Spain; Americas Wind Energy Corporation (AWNE.OB), which manufactures, and markets wind turbines for the North American market; Composite Technology (CPTC.OB), which makes and markets wind generation turbines under the brand name ‘DeWind;’ Gamesa Corp. (GCTAF.PK) of Spain, which has an 18% share of the global wind turbine market; Energias de Portugal (EDPFY.PK), of Portugal, one of Europe’s largest electricity providers; Iberdrola Sa Sponsored ADR (IBDRY.PK), the world’s largest provider of wind power; Kore Holdings (KORH.PK), is a power provider, and a marketer of alternative energy; McKenzie Bay International Ltd. [MKBY.PK], which develops wind powered alternative energy systems; Mass Megawatts Wind Power Inc. (MMGW.OB), which develops prototype wind energy production equipment. Nordex (NRDXF.PK), a wind turbine company that is based in Germany; Tower Tech Holdings Inc. (TWRT.OB), which is involved in the engineering, manufacture, and sale of wind turbine extension towers to the wind energy industry; Vestas Wind Systems (VWSYF.PK), a Denmark-based company that is the world’s largest manufacturer of wind turbines; Western Wind Energy (WNDEF.PK), produces clean renewable electrical energy from over 500 wind turbine generators located in Tehachapi, and the San Gorgonio Pass, near Palm Springs, California.

Companies such as General Electric that have wind operations but are not primarily dedicated to that were not considered.

The flux in high-tech jobs in the renewable energy field has prompted Illinois State University to look at offering a bachelor’s degree in the field.

This article in the Matoon and Charleston, Illinois Journal Gazette Times-Courier says the degree would offer studies in biofuels, wind, and solar power:

If approved by the Illinois Board of Higher Education, ISU will launch the new major in the fall of 2008, joining just a handful of U.S. universities that have created renewable energy degrees since the Oregon Institute of Technology established the nation’s first program in 2005.

“It’s still cutting edge, so it’s like those folks who got into the computer field before everybody had a PC. They’ll be that far ahead of the game,” said Tehri Parker, executive director of the Midwest Renewable Energy Association.

The article goes on to say employers have already been contacting the school… five years before the earliest class would even be earning the new degrees.

An analyst with the Union of Concerned Scientists says there are potentially 355,000 jobs to be created in the electrical sector alone if Congress approves the group’s guidelines of 20% of electrical energy production coming from renewable sources by the year 2020.

For a long time, Texas was known to be a leader in the non-renewable energy fields… in particular, the petroleum market. But it looks like the Lone Star State is now poised to dominate the green fuel picture as well.

This story in the Houston Chronicle says Texas will lead the nation in renewable energy production by 2025, and could gain $22.8 billion in economic activity each year and more than 170,000 jobs overall:

The state’s energy production, which would supply about 4 percent of the U.S. needs in 2025, would come from biofuels, wind and solar power. Texas already leads the nation in wind energy production.

If the report’s estimates pan out, the economic impact nationwide in 2025 will be $700 billion annually and create 5.1 million jobs, mostly in rural areas.

Ironically, Texas Governor Rick Perry and the state legislature are, so far, are unwilling to sign on to that national “25 by 25″ effort.

Wind energy projects in Texas and Massachusetts have been chosen for two, $2-million grants from the U.S. Department of Energy.

According to this press release from the agency, DOE Secretary Samuel Bodman has announced the Commonwealth of Massachusetts Partnership in Massachusetts, and the Lone Star Wind Alliance in Texas will receive up to $2 million each in test equipment to develop large-scale wind blade test facilities, expected to be operational in 2009:

“These two testing facilities represent an important next step in the expansion of competitiveness of the U.S. domestic wind energy industry,” Secretary Bodman said, while hosting a press conference with Massachusetts Governor Deval Patrick. “We congratulate Massachusetts and Texas for their outstanding proposals and we believe this work will build upon the Administration’s goal of prompting states to research, develop and deploy more clean energy technologies.”

Ultimately, they hope to test wind turbine blades 100 yards long with the potential of producing 20% of the nation’s energy needs.

The Commonwealth of Massachusetts Partnership wants to build its test facility at the Boston Autoport in Boston Harbor. The Lone Star Wind Alliance test facility would be in Ingleside, Texas.

Pennsylvania Governor Ed Rendell was at the dedication of a new wind farm… the seventh one in the state.

According to this press release posted on Rendell’s web site, the Locust Ridge project in Schuylkill County is part of the state’s aggressive push for wind power:

At present, the state’s wind farms generate enough electricity to serve about 45,000 homes, or less than 1% of the Pennsylvania market. But the state expects another four wind farms to begin operating within the next year, more than doubling capacity.

“This is an exciting day for Pennsylvania,” said Governor Rendell while standing atop Locust Ridge in Schuylkill County. “This project shows the kind of growth we can achieve by committing ourselves to clean and renewable energy, and by making the strategic investments necessary to attract leading companies that create quality jobs for our men and women.”

Iberdrola, the largest owner and operator of renewable energy facilities in the world, owns the wind farm.

The U.S. Senate has hit an impasse over a proposed energy bill that makes larger allowances for alternative energy, in particular, wind power, than previous energy bills.

This AP story from Forbes.com says Democrats had hopes for an early vote on the measure, but Republicans were against many of the measures in the omnibus bill:

The impasse over renewable fuels came as Democrats said they would seek nearly $13.7 billion in tax breaks to promote clean energy, biofuels, more fuel efficient vehicles and conservation.

The Senate Finance Committee intends to discuss the tax plan on Tuesday, according to the committee chairman, Sen. Max Baucus, D-Mont. The proposal would extend dozens of tax breaks, such the one for building wind turbines. It also would create incentives such as tax credits for technology to capture carbon dioxide – the leading greenhouse gas – from power plants.

But some senators argued the wind requirement in the bill would not be feasible in their areas:

Senators from the South said utilities in their states could not meet the 15 percent requirement because they lack the wind power and other renewable resources prominent elsewhere, especially the West.

“I’m not impressed with wind being the national energy source for America,” said Sen. Pete Domenici, R-N.M., who led the opposition to the renewable fuels standard.

However, Sen. Jeff Bingaman, a New Mexico Democrat, argued southern states could make use of wood and other local resources to produce biofuels.

As you can see, it will most likely be a long, drawn-out fight.

A Michigan utility has inked a 20-year deal to buy renewable energy from John Deere.

According to this story on IndustryWeek.com, Wolverine Power Cooperative will get the power from Harvest Wind Farm, LLC… principally owned by John Deere:

The wind farm, which has been under development for three years, is slated for Huron County, Michigan.

John Deere Wind Energy is planning to begin construction of the 32-turbine project this summer, with commercial operation scheduled for early 2008. Wolverine is purchasing renewable energy from the Harvest Wind Farm project for sale to its six member-companies and their retail customers.

The wind generation industry in America breathed a collective sigh of relief when a U.S. Congressman from a coal-producing state pulled a measure that would have effectively killed wind power generation as an alternative to coal-powered plants.

Natural Resources Committee Chairman Nick Rahall, D-West Virginia had been pushing for regulations that would require the U.S. Interior Department to protect birds and bats by regulating the siting and operation of energy wind turbines to ensure the safety of wildlife. According to this AP article in the Jackson Hole (WY) Star Tribune, wind industry officials said those rules would have halted the development of wind farms:

His action unleashed intense lobbying by the wind industry and renewable energy advocates, who argued that such restrictions would stop wind farm development at a time when wind is viewed as the most viable renewable alternative to fossil fuels and nuclear power for producing electricity.

This “will allow wind power to continue to thrive,” said Markey. Rahall said he expects Markey’s amendment to get final approval, although it must still go through a formal committee vote.

The article goes on to say the turnaround shows how much more clout the wind power industry has now compared to a few years ago. Having some big allies, such as General Electric, now in the game sure doesn’t hurt either.

Attendees to the American Wind Energy Association's annual conference going on this week in Los Angeles heard that their industry faces quite a challenge to go from the current 1% of U.S. energy supplies to President Bush's goal of 20% by 2030. In fact, it could be a half-billion-dollar challenge.

This article from Reuters says delegates are trying to figure out how to reach that goal:

That would mean by 2030 there will have to be 325 gigawatts of installed wind turbines in the United States, said Michael Robinson of the National Renewable Energy Laboratory.

Lukefahr said over the next 15 years wind power is the least costly and easiest to develop alternative to coal and natural gas. Beyond that, Lukefahr said he could not be sure what will be in store for alternative energy.

Indeed. Consider the fact that wind power grew in the U.S. by 20 percent last year to light up the equivilant of three million homes… and it's expected to take a similar leap again this year.

About 7,000 people are attending this year's conference… and that's up from 5,000 last year and only about 1,000 in 2001.

This past long weekend, I had the chance to travel back home to Iowa to one of my favorite fishing spots in the entire world: Spirit Lake. This natural lake is up in the northwest corner of the state, and it takes nearly 10 hours to get there from my home in Missouri. Full of walleyes, it is a destination I gladly load up the family car with the wife, the kids, and the dogs, and hit the road for a butt-wearing 10 hours behind the wheel.

As I was in the homestretch of my 500-plus mile trip, burning plenty of $3.25/gallon gas, I noticed an alternative fuel source turning above the farm fields just a few miles off Highway 71… windmills.

For years, I’ve seen the turbines in the distance. Now that I’m reporting on this type of energy source, I decided to get a closer look. Turning at a corner where many times my family and I have stopped for gas and snacks, we made our way to where the white turbines turn in the constant breeze of an area known as Buffalo Ridge… a high spot of land that seems to catch every breeze… and a natural for the approximately 260 turbines along its flat plateau. Locals say it is one of the largest wind farms in the world. It’s no wonder nearby Storm Lake earned its name and reputation of constantly have a significant chop on its shallow waters.

The turbines are spectacular to see… looming over the farm fields, whooshing as the wind turns their huge blades, generating power that will be available for many years to come… possibly forever.

In the meantime, I thought about the gas station back on the corner of Highway 71 where I turned. In front of the pumps is a concrete statue of a dinosaur, symbolic of the fossil fuel that flows from those pumps. I thought how fitting a symbol for that type of fuel. Dinosaurs are extinct and won’t be coming back. Much like the concrete in the statue, the oil industry in many ways is immovable – stuck in a dwindling supply that will become extinct in its own time, maybe sooner than we think. Contrast that with the constant motion of the turbines. If the wind supply is ever exhausted, we’ll have more problems than how to light our homes. Even the more stationary corn and soybean fields below the wind generators hold the promise of renewable fuel in the form of ethanol and biodiesel.

The wind did have some drawbacks. When we finally arrived at our destination of Spirit Lake, the wind was fueling some good-sized waves… too big to let me chase the much-desired walleyes and northern pike like I would like to. At least for a while. The next day the winds calmed, and we picked up plenty of walleyes… and the biggest pike my Dad has got in more than 70 years of fishing – 37″ long, weighing 10 pounds. That’s big enough to make even a concrete dinosaur smile.

North Carolina-based Duke Energy has acquired the wind power development business assets of Tierra Energy. According to this press release on Duke's web site, it bought more than 1,000 megawatts of wind assets under development in the Western and Southwestern United States. About 240 megawatts in Texas and Wyoming will be up and running commercially by the end of next year with the rest operational possibly by 2009.

“As our nation’s appetite for electricity continues to grow, renewable energy will play a larger role in meeting that demand,” said Duke Energy Chairman, President and CEO, James E. Rogers. “This acquisition supports our strategy to increase our investment in renewable energy and national efforts to reduce carbon emissions.”

Tierra Energy President David Marks will become Duke Energy's senior vice president, business development – wind energy. Five other senior Tierra management team members will also join Duke.

This isn't Duke's first venture into the clean energy market. The company also has purchase agreements for wind generation in Indiana and just put in solar panels at 10 Indiana schools.

Federal officials say North Dakota is poised to be an energy giant. This story in the Houston Chronicle quotes John Mizroch, the principal assistant secretary in the Office of Energy Efficiency and Renewable Energy, as the keynote speaker Monday at a renewable fuels conference at Bismarck State College:

“This state, it seems to me in particular _ which does have rich resources in energy and underused resources, particularly in wind _ I think could be an energy giant,” he said.

“It’s more than 300,000 megawatts of good wind power. The problem is, as with certain things in life, the wind energy is not where the populations are,” he said.

And of course, the farming state has plenty to contribute to ethanol and biodiesel production. North Dakota Sen. Byron Dorgan was a co-sponsor of Monday’s conference. He said his home state could turn out a million gallons of renewable fuels each year by the year 2012. Dorgan wants Congress to require refineries to produce and use at least 36 billion gallons of renewable fuels by 2022.

A $200 million wind power plant is slated to be built near Dallas Center in Central Iowa. While that might not be that unique, the fact that much of the operation will be underground sure is. A unique underground rock formation in the area makes the Iowa Stored Energy Plant Agency idea possible. Gotta love that wind captured in a jar logo! Click here to see a demo of the project.

This article in the Des Moines Register explains how it will work:

The process uses wind energy to force air into the underground shale formation as far as 3,000 feet below ground. The compression is usually done through the night when electrical use is not at its peak. Then, during the day, the compressed air is brought back up and used to run turbines that create electricity.

As the air moves through the rock, water that is currently in the rock is displaced to the surrounding area.

Officials say the water forced from the rock is not water that is used by the area population and is not drinkable.

The project is years from even a groundbreaking ceremony… probably not until 2011 or 2012. Area residents are invited to a public meeting about the project tonight (Thursday, May 16th), at 7 at the Dallas Center Memorial Hall, 1502 Walnut Street.

If anyone who reads this blog goes to the meeting, let us know how it goes.