Domestic Fuel

A new report from the feds says, due to the recession, overall energy consumption in the U.S. dropped in 2009. However, renewable energy … biodiesel, ethanol, wind, solar and hydro power … use during that same period actually increased.

This report from the U.S. Energy Information Administration shows that overall energy consumption in 2009 dropped by 4.8 percent, the second year in a row that consumption dropped and just the third time since 1949 that energy consumption has declined for two or more consecutive years. But clean energy sources fared much better during that same time:

Consumption of all major fuels declined between 2008 and 2009, except for renewables. Coal dropped the most, falling 12 percent, while petroleum consumption fell nearly 5 percent, and natural gas consumption fell 2 percent. Even nuclear fuel consumption fell by nearly 1 percent…

Hydropower consumption grew 6.3 percent in 2009…

The report goes on to say that wind went from a “relatively minor renewable energy source” to making up nearly 10 percent of total renewable energy consumption. In addition, biodiesel and ethanol got good boosts from various financial incentives and mandates.

Manitoba, Canada is now the proud province of a new wind farm. The 138 megawatt (MW) St. Joseph Wind project has been completed by the Pattern Energy Group LP (Pattern) and should generate enough power to meet the electricity needs of 50,000 homes in the Manitoba area. Pattern and Manitoba Hydro have entered into a 27-year power purchase agreement for the sale of energy produced by the project. To celebrate the accomplishment, the Manitoba Minister of Innovation, Energy and Mines, David Chomiak spoke during an opening ceremony.

“This wind farm is one of the largest in the country and will produce enough energy to power 50,000 homes,” said Minister Chomiak. “It showcases our province’s dedication to creating renewable energy and continuing to build Manitoba Hydro. This project has also provided a solid boost to the local economy creating new opportunities and jobs.”

Over the life of the wind farm, Pattern will pay an estimated $38 million to landholders and an additional $44 million in local municipal taxes with two-thirds of the tax revenue dedicated to education and one-third committed to host communities. This is a significant revenue boast for the area.

Mike Garland, Pattern’s CEO said, “The St. Joseph wind project created 350 jobs during its construction, 75 percent of which came from Manitoba, with another 20 percent from other Canadian provinces, in addition to the permanent crew of 10 workers we hired to operate and maintain the project. The success of this project is due to the support and commitment of all those involved, including the Province of Manitoba, Mortenson Canada, local landowners and the great community of St. Joseph. By working together to harness the steady winds of St. Joseph, we have created jobs, revenue, and a significant source of clean and renewable energy for Manitobans.”

“We commend the excellent and timely work of Mortenson Canada, which completed the construction of this world-class wind project in just under a year – an extraordinary timeline for a project of this size and scope, especially considering the harsh winter conditions,” added Garland.

Manitoba Premier Greg Selinger set the first group of turbines in motion back in January and today’s event marked the milestone of the project becoming fully operational.

April 22, 2011 marks the 41st Earth Day and many are calling for Earth Day to be expanded to include issues surrounding energy independence. Those who lobby for energy independence also lobby for the increased use of renewable energy including wind, solar, geothermal and biofuels. Today, renewable energy company Green Mountain Energy Company, is offering some green tips for Earth Month 2011. Green Mountain Energy not only provides “green” energy for consumers such as wind and solar energy, but also offers carbon offset products.

Earth Month 10 Tips for 2011:

1. 1. Switch to Cleaner Electricity for Your Home. The production of electricity is the leading cause of industrial air pollution.
2. 2. Plant a Tree. A single tree can absorb up to 2,000 pounds of CO2 over its lifetime, while also providing shade and animal habitat.
3. 3. Send e-cards. Go online and send an e-card instead of printed greeting cards to save paper and CO2 emissions associated with mailing and shipping.
4. 4. Use all-natural decoration. Buy colorful fruits and vegetables as centerpieces throughout the home. Then when they ripen, find a new recipe to enjoy them with.
5. 5. Use the real thing. Instead of using paper and plastic dinnerware, use real plates, bowls, and silverware. Not only does it decrease waste, but it looks nicer, too.
6. 6. Seal your house up. Caulking and weather stripping around doors, windows, and other cracks can prevent air leaks and save on your heating and cooling bills.
7. 7. BYOB. Bring your own bags to the grocery store. It takes one 15- to 20-year-old tree to make enough paper for 700 grocery bags.
8. 8. Pay bills online. If every family in the United States viewed and paid bills online, the country would save almost 1 billion pounds of paper and avoid 3.9 billion pounds of GHGs.
9. 9. Practice green gift wrapping. Use old maps or newspaper and reuse gift bags.
10. 10. Live every day like it’s Earth Day. Take a pledge as a household to practice sustainability every day of the year.

Want to make these tips stick? Green Mountain Energy suggests that you engage in the eco-activities as an entire family.

In the past several years, there seems to be a growing number of people who believe that global warming is a very orchestrated political and environmental hoax. As hype around Earth Day is growing (April 22, 2011), I thought it would be interesting to read, “Climate of Corruption: Politics and Power Behind the Global Warming Hoax,” by Larry Bell. Now Larry Bell is no more a climate scientist than Al Gore. He is a space architect and doesn’t pretend to be anything different. But Bell believes there is a conspiracy amongst us relating to the horrors of climate change that center around fossil-fuel CO2 emissions.

He writes, “Understand that the real impetus behind the cooked numbers and doomspeak of the global warmers has little to do with the state of the environment and much to do with shackling capitalism and transforming the American way of life in the interests of global wealth redistribution (“social justice”).

Bell acknowledges that climate change is real – only that it is not man-made- and says that no one can reliably predict what Earth’s global climate will be in a decade or longer. What he sees as the real problem is the global energy supply dilemma, one that he believes has no simple solution.

Throughout the book, Bell lays out his case for his way of thinking beginning with “outing” those who are “cooking the climate books.” This includes Al Gore as well as the United Nations’ Intergovernmental Panel on Climate Change (IPCC). In other words, he “sets the record straight.” From there, he highlights those that he believes are political hijackers of science – meaning policy makers who have molded climate science research to support their own agenda – mainly cap and trade. (I fondly call this crap and raid.) Bell argues that all forms of cap and trade are scams.
Read the rest of this post…

President Obama today released his administration’s Blueprint for A Secure Energy Future that outlines the comprehensive national energy policy.

“In an economy that relies on oil, rising prices at the pump affect everybody – workers and farmers; truck drivers and restaurant owners,” said the president during a speech in Georgetown. “The only way for America’s energy supply to be truly secure is by permanently reducing our dependence on oil.”

As alternatives to oil, Obama voiced support for both natural gas and biofuels, “not just ethanol, but biofuels made from things like switchgrass, wood chips, and biomass.”

“That’s why we’re investing in things like fueling stations and research into the next generation of biofuels,” he said. “Over the next two years, we’ll help entrepreneurs break ground on four next-generation biorefineries – each with a capacity of more than 20 million gallons per year. And going forward, we should look for ways to reform biofuels incentives to make sure they meet today’s challenges and save taxpayers money.” Obama also urged the expansion of alternative vehicles in the federal fleet and announced that he is directing agencies to purchase 100% alternative fuel, hybrid, or electric vehicles by 2015.

The ethanol industry was pleased with the president’s comments. “America’s ethanol industry stands ready to work with the Obama Administration and Congress to transform current biofuel policies to reflect the evolving nature of the industry and the fiscal concerns voiced by many on Capitol Hill,” said Renewable Fuels Association (RFA) President and CEO Bob Dinneen. “That means we must think outside the box when it comes to incentivizing the use of ethanol, expanding the market for ethanol, and accelerating the commercialization of advanced ethanol technologies.”

“President Obama deserves credit for identifying both short and long term solutions to reducing our nation’s dependence on foreign oil by encouraging the increased use of ethanol and next generation biofuels. He particularly recognized the role of America’s farmers in the production of corn ethanol today and next-generation biofuels in the future. Ethanol is part of the solution, whether that ethanol comes from grain or cellulosic biomass,” said Tom Buis, CEO of Growth Energy.

The president also encouraged the increased use of other clean energy sources, including wind and solar and encouraged Congress to maintain critical investments in clean energy. “At a moment like this, sacrificing these investments would weaken our energy security and make us more dependent on oil, not less,” he said.

Fact sheet from the White House on America’s Energy Security

A multitude of leading energy trade associations today wrote to Congressional leaders with a request for Congress to maintain support and funding for the U.S. Department of Energy (DOE) including the Loan Guarantee Program. The program, in part, is used to help bring emerging alternative energy technologies to market. Groups that signed the letter include the Advanced Ethanol Council (AEC), the American Wind Energy Association (AWEA), the Biomass Power Association, the Clean Economy Network (CEN), the Geothermal Energy Association, the Solar Energy Industries Association (SEIA), and the Renewable Fuels Association (RFA). A hearing on federal loan guarantee programs is scheduled for Thursday, March 31, in the House Appropriations Subcommittee on Energy and Water.

The organizations wrote in their letter, “[W]e write today in support of Federal programs implemented to foster the development and expanded use of domestically-produced clean and renewable energy in the United States. Together, our industries account for over half a million jobs in the United States and counting. Existing federal programs continue to foster growth and allow U.S. businesses to lead a worldwide effort to deploy power plants, manufacturing facilities and fuel production facilities across the country.”

The groups stressed how economically unsustainable America’s dependence on imported energy, especially oil, has become. With oil prices hovering around the $100 per barrel mark, the country sends hundreds of billions of dollars to OPEC members. The groups stressed that support and investment in renewable energy technologies can lessen this dependence while creating jobs. While the organizations recognize budget issues are of utmost concern in Congressional leaders, they still urged members of Congress to take a holistic look at the benefits of America’s renewable energy industry.

“As Congress moves forward with efforts to cut federal spending, it is important to recognize and retain programs that create American jobs, leverage private sector investment and increase tax revenue,” the letter continued. “The DOE Loan Guarantee Program is one of these programs. Eliminating funding for this program will disrupt and delay dozens of projects that are seeking a DOE loan guarantee, and will have very real impacts on job creation and energy security efforts currently underway. We strongly support efforts to prevent funding cuts and preserve the DOE Loan Guarantee Program in its current state.”

The full letter can be read here.

Germany is taking the lead in offshore wind development and believes they have secured number one status with its new offshore wind park located off the Baltic Sea coast. The project is set to enter the testing phase. This week, the country is wooing renewable energy and environmental technologies to Germany during the AMERICANA conference in Montreal, Canada.

“For decades Germany has shown a dedicated commitment to environmental technologies. Only through sustainable industrial policy can we continue to foster innovation and generate economic growth independent of resource consumption. With this philosophy, Germany has created the ideal conditions for innovative cleantech companies to reach a large and sophisticated market,” said Thomas Grigoleit, Director of Renewable Energies and Resources at Germany Trade & Invest in Berlin.

Germany is arguably one of the few countries that has not only met but surpassed its climate goals. It surpassed its environmental goals in 2010 – two years early- and is on track to meet is 2020 goals. One way the country has met its initiatives is through the use of renewable energy such as wind and solar. As Europe’s leading wind energy generator and the world’s top solar power producer, Germany is now tackling some of the industries leading challenges including energy storage to compensate for a fluctuating renewable energy supply and smart energy management technologies. The country is also looking at electric mobility as an important component, with renewable electricity slated to increase as a proportion of total energy consumption.

Yet energy is not the only area upon which Germany has set its sights. The country is also researching water efficiency in agriculture and food production. With the introduction of various new research and development incentives with significant funds behind them, Germany is supporting projects contributing to the reduction of water consumption in the food supply chain.

Juhl Wind has completed a utility scale wind project in Meeker County Minnesota near the city of Atwater. The Danielson Wind Project, which is estimated to produce 19.8 megawatts (MW) of wind energy per year, cost nearly $42 million. The project was built in conjunction with the Adams Wind Project, also a 19.8 MW wind project and located in Meeker County, Minn. Juhl Wind served as both the developer and owner’s representative for the construction phase for both projects.

“We are very pleased with the startup and initial operation of the Alstom ECO 86 wind turbines and expect a very solid long-term operation,” stated Dan Juhl, CEO of Juhl Wind, Inc. “For Juhl as a company, Danielson is one of six projects we have been developing and constructing in the past couple of years. We recently announced the sale of our 20 MW Grant County wind farm, completion of the Adams Wind Project and we expect to wrap up our other projects in the next few months. Taken together, we believe this group of projects will result in very strong financial performance for our company in 2011 and will put us in a very strong position for the next few years of our growth.”

The Danielson Wind Project began construction in October of 2010 and consists of 12 Alstom ECO 86 Wind Turbines. The energy produced is being sold to Xcel Energy under a 20 year, 19.8 MW power purchase agreement. The wind farm incorporates one of the company’s “community wind” structures where ownership is shared with the local residents and farmers who own the land that the project is located on.

Andy Geissbuehler, the vice president and general manager with Alstom Wind Business North America, noted that his company appreciated the opportunity to work with Dan Juhl and his team “in order to bring the proven performance and environmental benefits of Alstom’s technology” to the project.

“As we have pointed out in our last couple of announcements, the Danielson project represents the success we have had in moving six major projects forward in the past couple of years,” added Juhl Wind President John Mitola. “In spite of the 2008 recession, we found a way to move almost $150 million in projects forward and we are pleased we are beginning to see the financial results and the project outcomes we targeted at the outset. We believe this level of performance puts Juhl into a class by itself when compared to other independent developers of wind power.”

The Environmental Protection Agency (EPA) has named Washington D.C. as the leading EPA Green Power Community. Combined, government, businesses, institutions, and residents in the nation’s capital are collectively purchasing nearly 756 million kilowatt-hours (kWh) of green power each year. This is enough to meet 8 percent of the city’s total electricity use. All voluntary, this feat catapulted the city into the number one spot in the country on EPA’s rankings.

District leaders kicked off a District Green Power Challenge today during the District’s EPA Green Power Recognition Ceremony that was held at Phelps Career High School in northeast DC to encourage more residents and businesses to switch to green power. The first goal of the challenge is to increase citywide green power purchases by 33 percent by August 31 of this year in hopes of keeping their #1 ranking. This increase would also mean that the city’s electricity users are purchasing 10 percent from green power or 1 Billion kWh each year.

“This is a huge honor for Washington, D.C. and we are proud to be recognized by the U.S. Environmental Protection Agency,” said Mayor Vincent Gray. “The purchase of green power by our citizens and businesses is cleaning our air and supporting growth of the clean energy economy. When we clean the air, we improve the health of our residents, and particularly our children. We are sending a message to other communities across the country that supporting clean power is a sound business decision and the right thing to do. I’m proud that the District of Columbia government is leading the way, purchasing 50 percent of our electricity through the Washington Gas Energy Services, Inc. wind power program.”

There are currently 36 Green Power Communities across the country. To be given the designation, a city, town or village must have government, business and residents that commit to purchasing green power in amounts that meet or exceed EPA’s Green Power Community purchase requirements. Qualifying energy sources include wind, solar, geothermal, biogas, biomass, and low-impact hydro-electric power.

“The District of Columbia is setting an excellent example for the nation by harnessing clean energy,” said Elizabeth Craig, Acting Director of EPA’s Office of Atmospheric Programs. “We hope the city will continue to increase its use of green power and that other communities will follow suit.”

The Cedro Hill wind project, located in Bruni a rural south Texas town, went online in December 2010. Today, Edison Mission Group (EMG), a subsidiary of Edison International, officially dedicated the first wind farm in the Southern part of the state. When the conditions are favorable, the wind farm has the capacity to generate up to 150 megawatts (MW) of power, enough to meet the needs of nearly 40,000 average homes. All of the power produced by the Cedro Hill is being sold to CPS Energy of San Antonio, under a 20-year power purchase agreement.

“We are pleased to officially dedicate the first wind energy project located in south Texas,” said Pedro Pizarro, president of EMG. “Texas is an important state in the development of our renewable energy portfolio, and we look forward to generating clean, environmentally friendly power for the customers of CPS Energy.”

Cedro Hill is powered by 100 GE turbines with a generating capacity of 1.5 MW each. The wind farm spans nearly 20,000 acres. It interconnects to the electric grid at the La Quinta switching station and connects to CPS Energy through the 138-Kilvolt Lobo-Falfurrias transmission line. The total project investment was $300 million. For Webb County, where the project is located, the wind farm will provide the local economy with $100 million in property taxes and payments to local landowners over the next 20 years. In addition, the company will be contributing $250,000 to the Webb County Consolidated Independent School District for 10 years starting in 2013.

Richard Peña, CPS Energy senior vice president of Energy Development added, “Cedro Hill is a valuable addition to CPS Energy’s renewable energy portfolio, providing 150 megawatts of green energy to the residents of San Antonio and the surrounding area.

Cedro Hill is EMG’s third wind energy project in Texas, joining the 161-MW Wildorado Wind Ranch near Amarillo and the 149-MW Goat Wind project near San Angelo. EMG currently has 29 wind projects in 10 states with a total generating capacity of more than 1,800 MW of wind energy.

General Electric (GE) has introduced its 4.1-113 wind turbine, a four-megawatt (MW) class machine that is optimized for offshore use. In addition, the company has signed a contract to supply the turbines, along with other services, to Göteborg Energi for installation in the Gothenburg, Sweden harbor later this year. The project is supported by the Swedish Energy Agency. The announcement was made during the European Wind Energy Association’s conference today. GE also has joined the Chalmers Wind Energy Center to collaborate on additional projects.

While Sweden sees great opportunity for growth in offshore wind, North America has seen nothing but hurdles. Even approved projects (Cape Wind) in the U.S. have stalled and Canada has also significantly slowed its offshore wind efforts.

“We are proud to announce the next milestone in our offshore strategy plan. Our 4.1-113 wind turbine represents our most advanced technology. It is the only direct-drive wind turbine designed specifically for offshore today,” said Victor Abate, vice president—renewable energy for GE Power & Water. “With Göteborg Energi we have a great partner and we welcome the support of the local authorities on our project.”

According to GE, there are fewer moving parts and the direct-drive technology provides a simple, reliable design with built-in redundancy and partial operation for major components. Combined, these improvements keep the turbines operating more reliably at sea. GE says the direct-drive technology eliminates costly gearbox parts, lowers operating expenses, and also relies on an innovative modular approach to maximize in-situ repair and reduce the need for large repair vessels. The 4.1-113 blade design is optimized to maximize energy capture.

“GE offers the most advanced technology with a proven platform and maximum output,” said Jonas Cognell, director renewable electricity of Göteborg Energi. “In Sweden, there is still a lot of potential for the wind energy business, especially offshore.”

Canada is now the home to a giant renewable energy company. Vancouver-based Magma Energy, a geothermal company, has purchased wind, solar and hydro energy company Plutonic Power, also based in Vancouver, to form Alterra Power Corp. The deal is worth around $190 million but when the two companies are combined, their net worth is estimated to be worth $575 million.

In a financial analyst call this week, Ross Beaty, Magma’s Chairman and CEO said that “size matters” and “the power business is all about the cost of capital.”

In a press statement Beaty commented, “This merger will strengthen both companies and will create a larger, more diversified renewable energy company with assets across a broader spectrum of the clean energy industry. It has the potential to lower the cost of capital to develop each company’s existing growth assets, to enable those assets to be developed more quickly, and to better attract new opportunities for future development. Geothermal will remain a core focus of the new company, but hydro, wind and solar assets will be solid business platforms for future growth. In the renewable energy business, bigger is better and this combination will achieve that while enhancing returns to each company’s shareholders.”

The new company, Alterra Power Corp, intends to develop new energy sources either within Canada or globally, whatever projects will provide the best return on investment for shareholders. Magma already operates projects in the U.S., Iceland, and Latin America while Plutonic has wind projects in Canada and is looking to acquire some solar projects in the U.S.

Donald McInnes, Plutonic’s Vice-Chairman and CEO said, “2010 was a breakout year for Plutonic having completed the transition into an operating company. To continue to build on the success of our history as a project developer, a merger with Magma will provide our shareholders with the best path to further value creation achieved through a larger market size, greater liquidity, better access to capital, and diversity of geography and technology with a healthy development pipeline that provides significant growth opportunities.”

In conjunction with General Electric (CE), Plutonic Power operates Canada’s largest wind farm, the Dokie Wind project. Under a 25 year Electricity Purchase Agreement with BC Hydro, the now fully operational wind farm will is expected to generate 320,000-340,000 MWh per year – enough energy to power about 34,000 homes. It is comprised of 43 wind turbines and located in the foothills of the Canadian Rocky Mountains. As part of the project, Plutonic Power also built seven kilometres of transmission lines and an electric substation.

The U.S. Embassy in Helsinki, Finland is installing TurboMill micro-wind turbines to generate renewable energy. The wind turbines are manufactured by WindStream Technologies and the initiative is part of the embassy’s membership in the “League of Green Embassies” program that encourages energy efficiency and green building strategies.

The TurboMill is durable enough to survive for years in harsh winters as well as scalable so if the embassy’s energy needs grow, they can add more micro wind-turbines to their system. While many turbines need generous wind speeds to generate electricity, the TurboMill can generate energy even from low winds of ranging from only 4-5 mph.

The League of Green Embassies is a consortium of about 80 U.S. embassies that are working to incorporate the very best in new U.S. company products and technologies for energy efficiency and cost savings. The installation was highlighted at an embassy press event with Vice President Joe Biden on Tuesday, March 8.

“The League of Green Embassies is deeply committed to promoting energy efficient and high performance building practices,” said Ambassador Bruce Oreck. “U.S. embassies are perfect venues to illustrate U.S. green leadership. We want to promote U.S. companies with intelligent building products, services and technologies. WindStream’s innovative product fits well into this effort.”

Two new videos produced by Seimans in conjunction with Cannon Power Group demonstrate how a wind farm can benefit the local community. The videos are based on its Windy Point/Windy Flats (WP/WF) wind farm project in Goldendale, Washington with the first video focusing on the economic benefits of wind energy and the second video focusing on how to finance a wind energy project.

In the first video, Golendale residents tell the story of how the formerly struggling town has new life due to the wind farm. Like many small towns in America, the younger generation has had to leave home to find good paying jobs. But with the growth of renewable energy, such as wind power, the economic equation has been improved through the creation of new jobs and many of the “sons and daughters” are able to come home again.

To date, the capital investment in Klickitat County, where the WP/WF wind farm is located, exceeds $1 billion. The wind farm is actually one of the largest in the US with turbines spanning 30 miles along the Columbia River ridgeline. When completed, the wind farm will produce 500 megawatts (MW) of wind energy, enough to power more than 250,000 homes per year.

The turbines were manufactured by Siemans and “Wind Power Energizes a Community in Klickitat County,” and “Windy Flats – Financing Wind Energy Projects,” were produced by Siemens as part of its 2010 “Summer in America” campaign.

In a move that is already generating plenty of controversy (and I’m sure plenty of comments on this blog), the California State Senate has voted to require utilities in the state to get one-third of their energy from wind, solar and other renewables by the year 2020.

The Los Angeles Times reports the measure moves up the requirement from 20 percent and is bringing about backers and opponents:

“Right now we can begin to create the jobs that this state so desperately needs,” said state Sen. Joe Simitian (D-Palo Alto), the bill’s author.

In a report two years ago, the California Public Utilities Commission said energy costs would probably go up 7.1% if a third of electricity came from renewable sources. A spokeswoman for the agency said Thursday that some renewable energy prices have since declined, so the increase would probably not be so high.

In addition, the state’s Public Utilities Commission says it might take $115 billion to put in the facilities to generate that much renewable energy. On the upside, it could create 100,000 to 200,000 new jobs. No word on whether Gov. Jerry Brown, who campaigned on the 33 percent target, will support the measure should it pass the state Assembly, as it is expected to do.