Energy International Quarterly, #11

Energy International Quarterly

March/April 2011 vol. 2, issue 11

KING WIND How the UK is setting a green example, p.44

Shale Gas Rising But is it safe? p.32

Funding a Revolution

ARPA-E is pumping millions into clean technology—Meet four firms that are cashing in, p.38

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Features 32 What the Frack?

Some experts say shale gas is cleaner and greener than coal. Others claim it’s nearly impossible to extract the fuel safely. EIQ looks at both sides of the controversy.

38 Bankrolling a Revolution ARPA–E is pumping millions of stimulus dollars into the renewable energy industry, in hopes of establishing the United States as a leader in green technology.

44 King Wind The United Kingdom is aggressively expanding its capacity for wind energy—and setting a green example for other nations.

A FIRST FOR THE UK The North Hoyle Offshore Wind Farm, located in Liverpool Bay and put into operation in 2003, is the UK’s first major offshore renewable-power project.

Photo: Anthony Upton © 2003

Contents In Every Issue 6 Editor’s Note 9 Pipeline 12 Viewpoint 14 1,000 Words 66 A Look Ahead

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E&B Natural Resources’ crew works at the Antelope Hills oil field near Bakersfield, CA.

Departments Introducing 16 View From the Top

Unlimited Renewable Energies designs and installs windand solar-energy systems—at dizzying heights

Perspectives 18 Intelligent Expansion

NLS Welding grew slowly in order to maintain quality standards

18 Growth Spurt

E&B Natural Resources has quickly become one of California’s largest private exploration and production companies

Global Scope 20 Need a Lift?

Goracon Windpower Access Systems provides service lifts for wind-tower companies across four continents

22 Perfectly Paired

Pajak Engineering Ltd. pairs employees with projects that suit their strengths and interests

24 A Leg Up

juwi solar’s parent company boasts an international network of solar projects—which gives the firm an advantage over local competition

26 Getting Personal Global Seismic Repairs has clients all over the globe, but the firm’s personalized customer service feels downright neighborly 28 Looking East

Faced with new regulatory challenges, Seahawk Drilling looks to expand beyond North America

Technology 50 Safety First

Safety is Nu-Tec, Inc.’s first priority—and its most recent innovation could prevent disasters akin to the Deepwater Horizon oil spill

52 Industrial Strength

Fastorq’s bolting tools fortify equipment for clients in the oil, gas, and renewable-energy sectors

28

Seahawk Drilling’s workers are dedicated to maintaining a safe and efficient offshore work environment.

53 Green Prix Clean Green Network is innovating the racing circuit with its green technologies 56 Proceed with Caution

Renewable Energy Systems’ success shows that prudence pays off

57 In Hot Water Cinco Solar distributes, designs, and manufactures solar-powered water-heating systems Field Notes 59 Bucking the Trend

The global recession left many firms reeling, but Allied Power Group boasts of increasing revenue

61 Spin Doctors Gulf Coast Centrifuge’s products use radial motion to separate solids from drilling fluid 63 Campaigns for Clean Tech

For a marketing and ad agency, Hellman occupies an unusual niche—the energy sector

64 The Launch Pad Clean Energy Incubator helps start-ups bring new technologies to market energyinternationalquarterly.com | march/april 2011

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editor’s note

How do we look?

Feast your eyes on the all-new Energy International Quarterly. For the past few months, we’ve revamped our design and our content to better reflect the energy industry. Let us know what you think of the redesign—contact us through Twitter (@EnergyIntlmag) or online at energyinternationalquarterly.com.

Our cover story focuses on the aggressive expansion of the United Kingdom’s wind-energy industry. Since the 2008 Climate Change Act was passed, requiring a 34-percent reduction in greenhouse-gas emissions by 2020, many alternative energies will be utilized as part of the UK’s plans for the future, but wind—particularly offshore wind—is at the center of these efforts. In a matter of three to four years, the UK is slated to house several of the largest offshore wind farms in the world, producing upwards of 575 MW each. In “King Wind” (p. 44), EIQ correspondent Shawn Drury outlines the three rounds of new wind-farm plans that the UK’s Crown Estate has been developing for the last decade, and interviews some of the key players in the success of these plans.

On a more controversial note, the dangers surrounding the hydraulic fracturing methods used to extract shale gas in America have been a hot topic among natural-gas companies and the US EPA. In “What the Frack?” (p. 32), we present both the pros and the cons of the shale-gas conundrum—and both sides have viable arguments, showing that this is not a black-and-white issue.

Looking to the future of energy innovation, the US DOE’s Advanced Research Project Agency–Energy (ARPA–E) is funding the development of a number of exciting new technologies, hoping to establish some global credibility for the United States in the alternative-energy sector. Learn about the agency, and four of the innovations it’s funding, on p. 38.

In addition to these features, this issue is overflowing with interesting reads—from profiles of companies on the cutting edge of technological advancement to firms that work behind the scenes in the industry, providing services that are vital to energy production and storage. We hope you enjoy our new look!

Kathy Kidwell Managing Editor 6

energyinternationalquarterly.com | march/april 2011

Introducing the all-new energyinternationalquarterly.com • View the latest issue of Energy International Quarterly in a full-sized readable format • Get inspired by featured projects, designbuild firms, and engineers • Discover what’s in store for upcoming issues, and how your company can get involved • Find out what events the Energy International Quarterly staff will be attending and more!

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PipElINe Safeguarding the Grid

The National Institute of Standards and Technology’s new cyber-security guidelines aim to protect the US power grid during an era of modernization

S

mart-grid security is vital, yet increasingly complicated. The aging electric-power grid is being upgraded with digital smart meters and other advanced technologies, and new systems for delivering energy (wind farms, for example) are introducing similarly modernized systems.

As these efforts introduce improvements in efficiency and two-way communication across the grid, they usher in never-beforeencountered threats like grid-enabled hacking, information theft, or complete grid takeover, all of which are as potentially serious to electric utilities, communications corporations, and tech companies as they are to government, businesses, and private households.

Protecting data delivered through the smart grid is a primary concern of the Gaithersburg, Maryland-based National Institute of Standards and Technology (NIST), which released its detailed, threevolume Guidelines for Smart Grid Cyber Security in late 2010. The exhaustive report, which was 17 months in the making, is the product of The Cyber Security Working Group, a 450-member organization that includes representatives from academia and the public and private sectors, as well as input from two public reviews.

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Clocking in at more than 500 pages, the report arguably raises as many questions for the IT, telecommunications, and energy industries as it answers: 137 interfaces (points of interaction or information exchange between or within the smart grid’s systems and subsystems) are identified and are then broken into 22 categories based on shared or similar security characteristics. As for security requirements—either for the entire smart grid or for specific parts of it—189 are considered “high level.”

What does this mean for the electric-power industry, and how should utilities devise effective strategies to assess and address each risk’s potential impact? NIST’s Smart Grid Collaboration website hopes to answer this and other questions by providing a forum for stakeholders, including one maintained by the Smart Grid Testing and Certification Committee (SGTCC), which oversees (among other things) cyber security testing and certification for smart-grid standards. —katie gordon

Projected US Demand for Electricity In billion kWh, based on expected growth between 2006 and 2030

Blog Roll

The EIQ staff works hard to stay on top of energy-related news and developments.

Here’s a rundown of some of the blogs and websites we use as resources. by tyler coates 1. EnergyBoom, energyboom.com EnergyBoom offers editorials, user-generated content, and investor tips, which results in an unbiased view of the clean energy sector. Click the Daily Briefing header for a rundown on the latest green-energy news. The briefs are updated each morning, so content is always fresh. With its broad scope and rapid updates, EnergyBoom is a vital site for anyone with an interest in renewable energy resources.

6,000 5,000 4,000 3,000 2,000 1,000

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

2030

Source: US Dept. of Energy, Energy Information Administration, Annual Energy Outlook 2008

regional news

Fostering Energy Independence

Uranium Energy Corp ramps up US uranium production

The United States consumes 55 million reach the project’s initial production rate of 1 pounds of uranium each year, only 3.5 million million pounds of uranium per year. As UEC pounds of which is produced domestically. continues to expand, it aims to ramp up its Yet uranium is needed to fuel the nation’s 104 Hobson, Texas facility (the central processnuclear power reactors, which account for 20 ing facility for its South Texas projects) to percent of its energy supply. “The amount of its installed capacity of 2.5 million pounds of uranium being imported is mind-boggling,” uranium per year. says Admir Adnani, CEO of the Corpus Christi, UEC can mine uranium at a low price Texas-based Uranium Energy Corp (UEC). (about $14 per pound) because it employs “We are so dependent on foreign sources. If the unique in-situ recovery (ISR) method, that goes away, how would we power our which involves using carbonated H20 to plants?” dissolve uranium out of sandstone. Ura Adnani aims to solve this problem by nium is then isolated, processed, and sold ramping up US uranium production. UEC has by the pound. According to Adnani, uraacquired a number of permitted uranium- nium extracted via conventional mining is producing projects, including its Palangana more expensive ($40 to $45 per pound). project located in Duval County, Texas. There, “ISR is the lowest cost, most eco-friendly uranium production began in November of method of uranium mining known,” he says. last year. By the end of 2011, the firm hopes to —bridget herman

PipElINe 10

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2. DeSmogBlog, desmogblog.com James Hoggan, head of one of Canada’s leading public relations firms, leads the team behind DeSmogBlog, a site dedicated to cleaning up the confusion surrounding the global-warming debate. By exposing the influence that PR firms have on the public acceptance of climate change, DeSmogBlog strives to provide reliable information and raise awareness of how we view our impact on the planet.

3. CleanTechies, cleantechies.com CleanTechies, founded in 2008 by Ian Thomson, Marco Schmoecker, and Ceyalan Thompson, offers commentary focusing on renewable energy, resource efficiency, and green technology, as well as resources for those seeking career opportunities in the clean tech industry. (Cofounder Ian Thomson is an EIQ contributor; check out his column on p. 12.) Tip: if you’re hunting for a job in the clean-energy field, the site offers regular job postings, resume-writing help, and career advice.

4. Consumer Energy Report, consumerenergyreport.com/blogs Here, energy-industry insiders like Robert Rapier and Kaid Benfield speak on sustainable technologies, trends, and solutions. Recent posts have covered topics ranging from the benefits of biofuels to the negative environmental impact of the oil spill in the Gulf of Mexico. Many of the posts generate lively discussions and debates about energy and sustainability. Leave a comment and chime in!

One Minute With

Anne McKibbin

Policy Director with CNT Energy

EIQ: What is the mission of the Energy Savers program?

Anne McKibbin: Energy Savers

It can be daunting to retrofit a home, let alone a multi-unit apartment building. That’s why Chicago-based CNT Energy’s Energy Savers program aims to assist low-income property owners with large-scale energyefficiency retrofits (think boiler replacement, insulation improvement, and light-bulb replacement). CNT Energy’s Policy Director Anne McKibbin spoke with EIQ about the organization’s environmental and economic commitment to the Chicago community.

is part of an initiative called the Preservation Compact, which is a public-private commitment to reverse the loss of affordable rental housing in Cook County, [which includes] Chicago and its closer suburbs. We’ve got a real need for affordable housing throughout the city and the county, and the owners pass a lot of the savings on to the renters. We’re typically getting a 30 percent energy savings from retrofits.

EIQ: Do you target property owners, or do they approach Energy Savers?

McKibbin: To be honest, it works both ways.

We’ve had building owners come to us, and we also try to let the owners of these buildings know that we’re here and that we offer this service. We work with the Community Investment Corporation to help owners assemble a low-cost financing package to implement the recommendations. In some cases, grant funding is available for low-income properties.

EIQ: How long does the process usually take?

McKibbin: There isn’t much of a standard; if

everyone’s moving pretty quickly, it can take six months to a year [to perform the] initial audit, get all the financing together, and do the construction work itself. Then we’ll come back every year to check that it’s actually achieving the savings. So far, we’ve audited more than 15,000 units and are in the process of or have completed retrofits for 3,500 units.

EIQ: What would you say are the common problems that the audits identify and are able to change?

McKibbin: Our building stock in Chicago is

very old, and we are able to identify a lot of cost-effective, simple energy-efficiency improvements in buildings that were built in the 1920s to 1940s. [Common improvements include] ceiling-cavity insulation, air sealing,

boiler replacements, operations and management, and lighting. There is always a need for more-efficient lighting.

EIQ: What is the most extraordinary facet of the Energy Savers program?

McKibbin: The most unique thing about this

program is that we guide the owners through every single step of the process. We develop a plan to implement improvements, review bids from contractors, and even schedule and monitor installation work. After the work is done, the building owners allow us to review their energy bills, and we use that to do an annual performance monitoring on the building, which I think is helpful to building owners who are already busy running their own businesses. /////////////////////////////////////////////////////

interview by tyler coates

Energy Lit by tyler coates

Hot, Flat, and Crowded: Why We Need a Green Revolution—and How It Can Renew America

By Thomas L. Friedman; Farrar, Straus, and Giroux, 2008 Pulitzer Prize winner Thomas L. Friedman takes an economic approach to the global environmental crisis and argues that the United States is failing to lead an energy revolution, despite its numerous financial advantages. Friedman offers a barrage of solutions, such as calling on the government to make the market more favorable for investors of greenenergy technologies. In a call for America’s economic renewal, Friedman provides strategies for international energy restoration and revival.

Power Hungry: The Myths of “Green” Energy and the Real Fuels of the Future

By Robert Bryce; PublicAffairs, 2010 Renewable energy and green technology have become a global focus among lawmakers and activists, but what is the significance behind those buzz words? Armed with an exhaustive bank of statistics, journalist Robert Bryce examines the ways in which many socalled advances fail to provide cleaner, more durable energy sources. Bryce demonstrates that Denmark, a model for renewable energy, has not reduced its carbon emissions, while the United States has, despite popular opinion, moved beyond most nations to harness environmentally and economically sound energy sources. This is an important read for those on both sides of the climate-change debate. energyinternationalquarterly.com | march/april 2011

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viewpoint

Looking to Small Reactors

Though CleanTechies cofounder Ian Thomson has concerns about nuclear energy, he concedes that small modular reactors

I have often argued that, much could like the slow-food movement, energy consumers and producers should aspire to something akin to a slow-energy movement. As slowfood proponents suggest we should savor our food, eat less, and take into account where it comes from, I suggest a systemic approach to energy that pairs operational efficiency with locally appropriate, environmentally and economically sustainable energy sources. This approach calls for distributed generation systems located near the point of consumption, which reduce transmission loss and increase the value of locally available energy sources.

But what of areas that lack the sufficient local-energy resources or water needed to sustain a modern economy? I have an extreme answer: don’t build in such an unsustainable environment, or if you already have, then move. Realistically, this is not always possible, and idealism is often superseded

Small modular reactors are worth investigating for regions that have exhausted efficiency measures and are without access to sustainable (or any) energy resources. by a more pressing concern. For example, Manhattan is already built and represents a significant economic concern for the United States, if not the world. Whether a city is sustainable or not, moving is not always an option.

Centralized energy-generation facilities will continue to power dense, energy-intensive locations. Readers of Energy Interna12

be economic, environmental, and regionally appropriate tional Quarterly are doubtlessly aware that the case for nuclear energy has become increasingly compelling as carbon emission and energy-supply concerns have become more pressing, and renewable-energy technologies encounter political and logistical limitations.

Even while I am deeply concerned about the fully burdened externalities of nuclear energy—specifically storage and the threat of nuclear proliferation—I contend that there could be an economic, environmental, and regionally appropriate argument for developing small-scale nuclear facilities.

In my opinion, these facilities are worth investigating for regions that have exhausted efficiency measures and are without access to sustainable (or any) energy resources, yet still have a strategic argument for existing. The island of Guam, for example, has very real energy concerns, which are strengthened by the prospect of a massive population growth due to the potential displacement of American forces from Okinawa, Japan. A smallscale nuclear facility might alleviate these concerns.

The island currently has relatively high energy prices: according to the Guam Power Authority, consumers pay between 17 and 25 cents per kWh, and large peak consumers pay up to 93 cents per kWh. Virtually all of the island’s 1.8 GWh of net annual electricity generation comes from petroleum, including diesel and bunker fuel.

The Guam Power Authority (GPA) must invest heavily in hedging instruments to mitigate the impact of fuel spikes and is susceptible to supply disruptions even though it has decent renewable resources. The island had

energyinternationalquarterly.com | march/april 2011

good solar insolation and is in wind classes 6 and 7, meaning its winds measure between 17.9 miles per hour and 26.6 miles per hour at 50 meters above ground level.

The opportunity for wind and solar seems obvious, and the Guam Power Authority asked for proposals to develop 80 MW of renewable-energy projects on the island by 2013. Unfortunately, though, the island is smack in the middle of the Pacific’s “Typhoon Alley.” Were it not for the tremendous costs associated with insuring (or replacing) these systems after the inevitable categoryfive hurricane strikes, more wind and solar developers might have responded. The region’s realities, however, make it highly unlikely that renewable facilities will displace the current petroleum required for electricity or adequately respond to the energy demand if the Okinawa troops are relocated.

Small Modular Reactors (SMRs) offer a plausible solution to the island’s energy problems, which include economic, environmental, and severe-weather concerns. The selfcontained and deeply buried nature of SMR power plants offers protection from severe winds and weather. Given the United States’ commitment to maintaining a presence in the Western Pacific, it seems that Guam offers the United States an opportunity to further explore deploying a controversial yet potentially more sustainable and dependable energy source for this strategic outpost. /////////////////////////////////////////////////// About Ian Thomson Ian Thomson is the cofounder of CleanTechies (see p.

10), a consultant to clean technology companies, and an Energy Fellow with the Truman National Security Project.

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Browse through Green Business Quarterly online versions, explore advertising options, and sign up for your FREE subscripton on our website: www.greenbusinessquarterly.com

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1 000 words

Guiding Light In November of 2009, artist Michael Pendry and Siemens AG equipped a wind turbine with 9,000 LED lights, and erected the temporary landmark over the A9 Autobahn in Munich, Germany.

The installation, known as the Siemens Superstar, used as much electricity as a single hairdryer. Because of its efficiency, the landmark was seen as a symbol for green technology. It was popular among Munich residents, too—they asked that the project’s planned run (Nov. 29-Dec. 31) be extended an extra week.

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Photo: Thurston Rother

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introducing

View from the Top

Photo: Jody Warner/The Chronicle

es, farms, and residences throughout the Midwest. “We founded URE to promote renewable energies and provide jobs for the local economy,” Naylor says. “Our plan is for the Unlimited Renewable Energies, a subsidiary of company to evolve, and to leave a Tower Technologies, designs and installs wind- and positive footprint in the world.”

Not long after URE’s debut, solar-energy systems—often at dizzying heights Naylor heard about Focus on Energy, a statewide program that offers support and financial incentives, including grants, to businesses and Brandon Naylor has long been an avid outdoorsman and passionate rock climber. So when it came time to choose a professional direc- end-customers that either use renewable-energy systems or provide tion, he figured that his interest in climbing, paired with his electrical renewable-energy services. As a fledgling company that was also new and instrumentation background, made him a good fit for communi- to the renewable-energy industry, URE decided to apply for a business cations-tower work. The industry offered him the opportunity to be and marketing grant—and got it.

In July 2010, URE installed a 2.8-kilowatt tracking photovoltaic outside, climb, and put his experience to good use.

Rather than join an existing company, Naylor formed Tower Tech- system at its own offices. The system meets more than 25 percent of nologies in 2002. He began with basic tower inspections and, as he the firm’s electricity needs with solar energy. Thanks to a Focus on says, dove into “climbing and learning with each job.” Since then, the company’s offerings have expanded to include everything from raw land construction to inspection. Almost every employee is trained to climb, and their work takes them to projects across the country. The firm has been successful and, given the explosive growth in the communications field, its future looks rosy.

But Naylor wasn’t satisfied with just one successful business. While Tower Technologies was evolving into a thriving enterprise, he turned his attention towards another obsession: renewable energy.

Wind energy seemed like a good fit—and, due to the high elevation of most wind-turbine towers, it was a natural evolution from communication technology and tower work. But as he was taking training courses in wind services, Naylor discovered the ecofriendly power of solar technologies, such as photovoltaic (PV) and thermal, and was hooked. “I also found that I wasn’t the only one intrigued by these technologies,” Naylor says. “There was demand out there for all of it: wind, PV, and thermal.”

Encouraged by this demand, Naylor opened Unlimited Renewable Energies (URE) in 2008. The firm, based in Prairie du Sac, Wisconsin, offers turnkey services in wind- and solar-energy systems, from site assessment and design to installation and commissioning. Its target market is small businessHIGH ACHIEVERS Almost every employee, like this technician installing coaxial cable atop a monopole communications tower, is a trained climber.

At a Glance / Location: Prairie du Sac, WI / Founded: 2008 / Employees: 10 / Specialty: Turnkey services for solar-and wind-energy systems 16

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High Voltage

Photovoltaic services offered by URE

SERVICE: Tracking Photovoltaic System Installation RECENT PROJECT: In July 2010, URE finished installing a 2.8 kW tracking photovoltaic (PV) system at its own offices in Prairie du Sac (above). The new system has replaced more than 25 percent of the company’s electricity usage and helped promote awareness of renewable energy throughout the area. service: Photovoltaic System Installation RECENT PROJECT: Last September, URE began installing a 10 kW PV system on a new building in Madison, WI. Sequoya Commons features 17,000 square feet of retail space on the ground level, 45 condominiums, and a four-story, 100-unit apartment building.

Energy funding opportunity known as “cash-back rewards,” URE was reimbursed for some of the cost of the installation. In September 2010, the company began installing a 10-kilowatt photovoltaic system on a new mixed-use building in Madison, Wisconsin. Known as Sequoya Commons, the sprawling $34 million development features about 17,000 square feet of commercial space, 45 condominiums, and a four-story, 100-unit apartment building.

That may seem like big job for a staff of 10, but Naylor ensures that the employees at both URE and Tower Technologies receive constant training and continuing education, which enables them to work in a variety of positions. “Technologies are rapidly changing,” Naylor says.

“To be successful, not just at our company but in life, you need to be willing to learn something new every day.”

These days, consumers and businesses alike are learning the high price of energy, both for their wallets and the environment. While renewable-energy systems still require a greater up-front investment than many people are willing to pay out, Naylor believes that’s changing. More people want clean, renewable energy, and as demand spikes, prices will drop. “We believe that one influencing factor in our growth will be the rising cost of energy,” Naylor says. “The more energy costs, the more affordable and appealing renewable energy is to everyone.” —cristina adams

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perspectiveS

Intelligent Expansion

The founders of NLS Welding say their careful growth strategy allows them to uphold stringent quality standards

was added—before the office extension, operations were run out of the Scott home. “My basement and garage looked like a used welding store!”

Shannon jokes.

NLS has grown steadily for almost three decades, though the growth has been carefully planned. “We grew as what was required of us,” Nelson explains. “We wanted to expand [intelligently], so we capped our growth.” Because of it’s manageable size, the company was able to survive the recent economic downturn. While bigger companies have taken hits because they have had to satisfy more employees with less work, NLS has remained secure.

Although the industry has had to adapt to a slowdown, there is still plenty of work available. “Every year is different,” Nelson says. “The really big jobs that were available a few years ago [are now] divided into a larger amount of small jobs [so that more companies can work].” As a result, NLS frequently bids on smaller jobs that take weeks to complete (as opposed to months or years). The Scotts themselves have multiple specialties, and each has a hands-on role in the daily operations of their business.

They are pleased with what they’ve accomplished over the last 27 years. “I’m most proud of the reputation we have with the companies we work with, and of our relationship with our employees,” Nelson says.

Shannon and Nelson Scott say that two things have allowed their pipeline-construction and -maintenance company, NLS Welding, to succeed: a small, experienced staff and a carefully crafted plan for company growth. The Regina, Saskatchewan-based company has been in business for 27 years, and employs about 15 welders, pipefitters, and boom-truck operators. They count Enbridge Pipelines Inc., Alliance Pipeline Limited Partnership, Plains Midstream Canada, and Moose Jaw Refinery Partnership as major clients.

After working as a rig welder for many years, Nelson Scott grew tired of relying on others for steady work. When the industry took a downturn in the early 1980s, he saw an opportunity —carolyn dorant to break out on his own. He bought five acres of land in ReAt a Glance gina, the second-largest city in Saskatchewan—a province that Location: relies heavily on mining, oil and Bakersfield, CA Founded: gas, and agriculture. More than 1971 a decade after the purchase, Employees: the Scotts (who have now been 120 married for 24 years) built a E&B Natural Resources has quickly become Specialty: shop on the property. Then, Pipeline construction one of California’s largest private exploration and maintenance in 2000, an office extension

Growth Spurt

and production companies

“Our reputation means more to us than making big bucks.” Nelson and Sharon Scott, owners of NLS Welding, outline the importance of staying small in a big industry

It’s a control thing. We don’t want to grow beyond what we can control. You have to train employees firsthand, ensuring that they have the same philosophy that you have. We’ve been successful because we have a good core of people. If you don’t have that and you start hiring outside of it, employees won’t provide the quality you expect.

We’ve never advertised. It’s always been about our quality of work. Our reputation means more to us than making big bucks.

Our clients prefer quality over size. As a small firm, sometimes we’re overlooked for big jobs (even though we can do them). But our clients have remarked that bigger firms don’t provide the quality of work that we do.

18

energyinternationalquarterly.com | march/april 2011

In 1998, California-based oil and gas firm E&B Natural Resources was producing approximately 800 barrels of oil equivalent per day from a handful of fields located in California’s San Joaquin Valley. In 2003, company president Steve Layton implemented a new, growth-oriented strategy; by 2008, the company had surpassed $150 million in revenues, and, after several recent acquisitions, now produces over 6,000 barrels of oil per day from over 20 properties in California, Louisiana, Wyoming, and Texas.

“E&B has grown rapidly over the past five years through a very balanced, integrated strategy that combines acquisitions with development, exploration, and the use of company-owned or affiliated rigs and equipment,” explains Jim Tague, vice president of finance & planning.

At a Glance E&B’s affiliate, Excalibur Well Services, is the San Joaquin Valley’s third largest drilling and workover Location: service company. “This affiliation allows us to rapidly New Caney, TX Founded: develop,” Tague says. “By controlling our own sched1981 ule, we can develop properties at our pace.” The comEmployees: pany has other methods of vertical integration: E&B 11 owns its own equipment, so it avoids the costs associSpecialty: ated with equipment and rig rentals. “We are a little Hydraulic, mechanical and pneumatic tools more self sufficient than the average [exploration

and production] company,” Layton says.

E&B’s rapid growth is also the result of strategic money management. “We have grown from 1,500 barrels of oil per day to 6,000 over the past five years using only a credit line,” Tague says. “We have never gone to the equity markets, or used mezzanine funding, or any other form of high finance.”

Still, the company has challenges to overcome. E&B faces ongoing environmental regulations enforced by the government, such as the clean-air law passed four years ago in California, which holds companies accountable for industrial pollution and sets new standards to reduce air pollution and greenhouse gases. Though the strict regulations are helping to bring California to the forefront of the clean technology industry, they can also make business difficult for companies like E&B. “In our primary area of operation, air regulations are the most significant [regulatory] challenge that we face as an industry,” Layton says. “The regulatory environment is tough, but [the regulations] are enforced fairly.”

To show its commitment to the environment, the company has sought opportunities to support the development of the renewable energy industry. In February 2010, E&B made an equity investment in Green Earth Technologies, a leading manufacturer and marketer of environmentally safe consumer packaged goods and products. “The folks at [Green Earth Technologies] have a good idea,” Layton explains. “They are taking a resource that is underutilized and turning the resource into a product.”

E&B thinks the products made by Green Earth Technologies are both environmentally conscious and imperative to a future when oil and non-

renewable energy may be sparse. “Renewable energy is an important aspect of our energy needs,” Tague explains. “While it will not replace oil and gas anytime soon, continued worldwide development requires us to actively pursue all forms of energy—especially as the production of oil peaks and begins its inevitable decline.” —kelly matlock

“We control our own destiny.”

Jim Tauge, E&B’s VP of finance and planning, explains the perks of quick growth and internal funding We are one of the very few exploration and production firms to grow quickly through internal funding and a credit line. Most companies who grow more quickly issue equity to raise funds, which dilutes their ownership. It seems that at least 50 percent of all start-up oil and gas companies are formed with the goal of rapidly building up production and then selling to a larger company or going public.

E&B Natural Resources is a private company, and we have no desire to dilute current ownership with outside equity, so we grow through debt and cash flow.

We’re proud of our rapid growth, and we’d compare our growth record to any company out there. More importantly, we have no outside owners, so we control our own destiny.

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7/15/10 10:19:40 AM energyinternationalquarterly.com | march/april 2011 19

global scope RISING ACTION Goracon provides both ladder-guided and wire-rope-guided lifts.

Need a Lift?

Goracon Windpower Access Systems began by providing service lifts for tall buildings, and expanded into the wind-tower industry

In 2002, in Steinfurt, Germany, four engineers be installed in open and closed towers, both on land At a Glance banded together to form Goracon GmbH, a firm that deand offshore. The company also develops, designs, signed and produced permanent installations and platforms builds, and installs climb assists, which offer selfLocation: for high-rise buildings. The company began operating from guided stop-and-go adjustment features while reducAteinfurt, Germany; Atlanta, GA the basement of one partner’s house, but quickly grew to ing the weight of service workers during ascension—a Founded: fill four offices. The initial success was short-lived; when cost-effective option that works well for pre-existing 2002 business began to drop off just two years later, the founders towers. Customized-access platforms (such as tower Specialty: attended a wind-energy trade show and found new inspiraassembly platforms, maintenance platforms, moduWind-tower service tion. So they built a wind-tower service-lift prototype and lar platforms, and blade lifts, each of which consists lifts scheduled a meeting with one of the top manufacturers in of the platform itself, a supporting frame, and safety the world. gear) are also part of the product line; fall-protection “[The partners] said, ‘If you like it, we’ll talk business,’” systems have become another profitable niche. says Carl Vanhoutte, who now serves as president and gen With such explosive growth abroad, Vanhoutte began eral manager of the company’s US arm, Goracon Windpower Access Sys- angling for a North American outpost in late 2007; after visiting an Amertems LP. “‘And if you don’t, no harm done.’” ican Wind Energy Association (AWEA) trade show, the deal was sealed.

The meeting must have been a success, because Goracon has since Just a few short months later, in April 2008, Goracon Windpower Access completed construction of more than 2,000 service lifts on four conti- Systems, LP was launched in Atlanta, Georgia. nents, and currently offers a menu of eight different types of lifts. Similar Like its’ parent company, Goracon caught on quickly in the United to small elevators, these wire-rope- and ladder-guided lift systems per- States. Sales doubled from 2008 to 2009, from 30 units to 60. The firm has mit vertical transportation of more than one person at a time. They can grown in other areas, too. Originally, Goracon shipped all its US products 20

energyinternationalquarterly.com | march/april 2011

GORACON + AWEA

a Repower USA

project: 9 wire ropeguided service lifts at the Stoney Corners II wind farm in McBain, MI.

Goracon’s relationship with the American Wind Energy Association (AWEA) predates its official expansion into the United States. Goracon president and general manager Carl Vanhoutte attended an AWEA trade show to explore North American possibilities, and it was there that the company decided to move into the United States. It’s been a profitable affiliation thus far—AWEA has helped the firm to cement the following business partnerships:

a

s s

d

s Siemens

project: 153 climb assists at the Keenan II wind farm just south of Woodward, OK, and the Papalote Creek II wind farm in San Patricio County, TX.

Highlighted projects Goracon operations

d Doosan Heavy Industries

project: 101 ladderguided service lifts at a South Korean wind farm (in development).

from Germany, but the firm now has an 11,000-square-foot facility in Lawrenceville, Georgia, which allows the company to complete assembly on-site.

Goracon’s global presence continues to expand, too, with representation in Brazil, Japan, India, Australia, and throughout Europe. The company signed a contract with a Korean agent in March 2010; so far, two prototypes have been installed, and an order for 100 wind-tower lifts is ity,” Vanhoutte says, “but we aren’t the least expensive. In the end that nearly finalized. often decides the [initial] contract. Clients often come back to us, though, There are, of course, challenges to consider. As Vanhoutte laments, because of our values and ideals—we keep them happy, and I’m confident success abroad doesn’t always translate to American dollars. “We’ve done that we’ll continue to grow.” more than 2,000 units worldwide,” he says, “but it means nothing here, The firm’s values include a commitment to quality and service, but where legislation and liability regulations [are more difficult to navigate].” superior engineering is also a priority. The company has the unique flex Vanhoutte identifies long-standing loyalties among OEMs and their ibility to bring new and/or custom-made designs to the market, which preferred suppliers as another difficulty. He says that warranties make makes it a one-stop shop for those who need to reach high elevations. people fearful to branch out and use new suppliers.

“If we have it, we can help you,” Vanhoutte says, “and if we don’t, we’ll Pricing also presents a challenge. “We’re strong in service and qual- design it.” —annie fischer

Goracon has constructed more than 2,000 service lifts on four continents.

energyinternationalquarterly.com | march/april 2011

21

GLOBAL SCOPE

Pajak’s Operations

Pajak Engineering has drilled more than 3,000 wells in the past decade alone. At the moment, Pajak is working on a number of projects in Alberta and Manitoba with Galleon Energy Inc., Tournament Exploration Ltd., Greyhawke Resources Ltd. and Fair Sky Resources Inc. Internationally, Pajak continues to work on projects in Libya, Egypt and Chad.

Current project locations Regions where Pajak has provided services

perfectly paired

best service possible and treat them as best we can.”

Stellar customer service isn’t the firm’s only claim to fame. Lou Pajak was a visionary in the industry, particularly in regards to safety. In the 1960s, he initiated a formal system for well control and trained over 100 engineers and drilling-rig personnel. His training system was eventually taken over

by Enform, the safety association for Canada’s upstream oil and gas industry, which now certifies engineers and other personnel in the industry.

Today, safety is still a priority. Pajak strives to ensure its employees have a healthful and environmentally responsible place to work by maintaining strict Health, Safety, and Environment (HSE) guidelines and standards. “We have an outstanding HSE program here that encompasses ongoing training for our supervisors and engineers,” Sutherland says.

Pajak Engineering Ltd. was incorporated in 1985, after the firm expanded its menu of services to include engineering. Today, its objective is to provide the oil and gas industry with engineering, project management, and wellsite supervisory services for wellsite preparation, At a Glance drilling, completion, production, and lease restoration—both on and offshore. The firm Location: Calgary, AB has over 300 employees—including 250 field Founded: personnel—and operates in 19 countries 1966 worldwide.

Specialty: Sutherland, who joined the company in Engineering, project 1996, was handpicked by Lou Pajak to evenmanagement, well-site supervision tually take full ownership of the company

Pajak Engineering Ltd. matches employees with projects that suit their interests and experiences Pajak Engineering Ltd. takes a customized approach to project management: the firm strategically pairs its individual employees with projects that are suited to their professional strengths and experiences.

This ensures that each client is matched with uniquely qualified staffers.

It’s no surprise, then, that many industry insiders are eager to work for Pajak Engineering. “In fact, many [industry workers] will take early retirement from other companies because they prefer to work with us on a contract basis, and to specialize in areas where their strengths lie,” says Mickey Sutherland, the company’s president and CEO. “We match them up with customers who have those requirements.”

According to Sutherland, Pajak’s mandate is to give its clients the absolute best service and best personnel. “We have quality people and we are very dedicated to whichever operation we are working for,” he says.

This philosophy has earned Pajak plenty of business since it was founded in 1966 by three principals, including the company’s namesake, Lou Pajak (back then, the firm was known as Pajak Land & Offshore Ltd.).

The firm has drilled more than 3,000 wells in the past decade alone, and some of its high-profile clients include Shell, Exxon Mobil, Petro Canada, and, most recently, Halliburton. “Clients tend to gravitate to [us because] they feel comfortable working with [us],” he says. “We try to provide the 22

energyinternationalquarterly.com | march/april 2011

upon the retirement of the three original owners. Sutherland is an industry veteran: before taking up the reigns at Pajak, he spent more than 25 years working in the oil and gas industry. He was immediately impressed with the average company associate’s level of expertise. “Our typical employee has 20 to 35 years of experience,” he says.

Sutherland says that Pajak makes a conscious commitment to its workforce by offering ongoing training for tech-

“Our mandate is to give our clients the absolute best service and best personnel.”

Mickey Sutherland, President, CEO, & Owner

nical skills as well as soft skills, such as leadership training.

“We evaluate [our employees] on their level of ability with both hard skills and soft skills, and provide coaching for anything they would like to learn,” he says. —daniel casciato

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energyinternationalquarterly.com | march/april 2011

23

A Leg Up

The parent company of juwi solar boasts an international network of solar projects—which gives the firm an advantage over its local competition

juwi solar has an advantage over many other utility-scale photovoltaic-solar companies in America: the firm’s German-based parent company boasts a network of 450 megawatts in installed solar photovoltaic projects worldwide. Steve Ihnot, CFO of juwi solar’s North American outpost, says this far-reaching network gives the firm an edge. “While we’re a very independent group here in the United States and have all of the skillsets to execute our projects, we’re still able to take advantage of the lessons learned on other projects in other countries,” he says. juwi was founded in Germany by Fred Jung and Matthias Willenbacher in 1996. Back then, the firm had just one wind turbine. Over the last fifteen years, the company expanded to France, Spain, Italy, the Czech Republic, Costa Rica, and South Korea; in early 2008, juwi began operations in Boulder, Colorado.

“Our customers are able to benefit from the cumulative experience of the company’s work,” Ihnot says. “Many companies are bidding on proposals that they’re unable to execute. It’s frustrating for utility companies and for those of us participating in the proposal process,” he explains, adding that juwi solar has a track record of accurate proposals and completed projects.

Recent projects completed by juwi solar include the 12.6 MW Wyan-

112 ACRES OF POWER The Blue Wing Energy Solar facility, located in San Antonio, TX, produces 16 MW of energy.

24

energyinternationalquarterly.com | march/april 2011

At a Glance dot Solar Energy Facility in Upper Sandusky, Ohio, which spans 77 acres; the 15.01 megaLocation: watt Jacksonville Solar Energy Facility in Boulder, CO Jacksonville, Florida; and the 16 MW Blue Founded: Wing Energy Solar Facility in San Antonio, 2008 Employees: Texas, which spans 112 acres. “What we’ve 40 been able to accomplish—successfully exeSpecialty: cuting this size of project—is something that Large-scale utility very few people have been able to do here in photovoltaic projects the United States,” Ihnot says.

The North American solar branch of juwi places a premium on community involvement. “When a project comes to a community, you want to be out in front delivering the message and showing people that having this in your community is beneficial,” Ihnot says. “We like to highlight the fact that we are green and that we bring jobs and that we have an interesting technology that can be a learning experience in the education system.” As a part of this philosophy, juwi has built small solar facilities either on school grounds or in the school district nearest to their big projects. “In addition to free electricity, it allows them to show students how a solar-generation facility works,” Ihnot says. juwi has also developed a solar-energy curriculum for the schools that receive the solar systems.

Furthermore, juwi solar hires local contractors for its projects and has juwi managers give them on-the-job training.

“These guys are learning on our projects. We’re essentially teaching them these skills that we believe will benefit them in the future, because we believe that solar will be more and more prevalent in the coming years,” Ihnot explains.

The firm, which usually enlists project investors prior to starting construction, hopes to continue with the momentum it has built domestically and the momentum its parent company has developed internationally. In just over two years, the firm’s Boulder, Colorado, office has grown from

SUNNY ACRES The Wyandot Solar Energy Facility in Sandusky, OH, generates 12 MW of energy.

juwi’s operations FRANCE GERMANY Czech Republic ITALY SPAIN SOUTH KOREA UNITED STATES (Headquarters in Boulder, CO) COSTA RICA

RECENT US PROJECTS

Wyandot Solar Energy Facility Upper Sandusky, OH 12.6 MW, 77 acres

Blue Wing Energy Solar Facility San Antonio, TX 16 MW, 112 acres

three employees to almost 40.

“We’ve learned a lot,” Ihnot says. “About everything. From logistics to what equipment works best to the ability to do things right the first time.” And that experience gives the firm another avantage. “We’re able to make the compelling argument to potential investors and partners that we can deliver on our promises, and we can do it as well as anybody else.” —carolyn dorant

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25

GLOBAL SCOPE

Getting Personal

holder an educated guess [about] where to drill.”

Because there is always some level of uncertainty surrounding seismic acquisition, Global Seismic Repairs does its best to assist customers in achieving timely and accurate readings. Staffers test and demo their equipment to ensure that, according to their contract, it’s the proper gear, and that it works properly according to the manufacturer’s specifications.

“This kind of technical expertise is generally not offered by companies we would consider to be our competitors,” Goble says. “We offer these services because of our years of experience, and the specialty equipment we have at GSR.” In 2005, the firm expanded its menu of offerings by joining forces with Seismic Equipment Solutions, a privately owned Houston-based company offering seismic equipment lease and rental.

This partnership allowed GSR to add a greater number of channels of remote seismic electronics into their rental pool; it also allowed GSR to lease complete systems along with its industry-proven technical support. In 2007, GSR formed an additional strategic alliance with Seismic Source Company of Ponca City, Oklahoma, as well as an alliance with Laguna, California-based Ultera Systems. Due to these partnerships, Goble and his staff now offer an array of technical expertise including vibratorperformance checkouts, recording-system setups, technical audits, and field-service startups.

Goble draws much of this technical expertise from his own 30 years of experience in the industry, having served in almost every role possible— from recorder helper, or “juggie,” to observer to field-service manager.

“Through the diversity of my background in this business, I can provide a solution through experience that not many have attained,” Goble says.

Even for a firm armed with a few decades of experience, figuring out where to drill is still a challenge. “Seismic acquisition is as diverse as the planet we live on,” Goble says. “We use trucks, helicopters, tracked vehicles, quads, and utility vehicles for transportation of the equipment. We use dynamite, or VibroSeis, custom-built accelerated-weight drop units, airguns, betsy-guns, and most recently ‘no-energy source’ called MicroSeismic.”

Over the years, Goble has watched new gadgets and technologies

Global Seismic Repairs works with clients from across the globe, but the firm’s personalized approach to customer service feels downright neighborly Since Global Seismic Repairs (GSR) was founded in 2002, the firm has served as a one-stop-shop for seismic equipment sales, rentals, repairs, and solutions to seismic-acquisition service providers.

GSR operates in several continents, but continues to offer personalized services to its clients around the world. “We are a global company with a family mindset. We treat our customers to a homemade, ‘mom and pop,’ apple-pie experience,” explains Doug Goble, president of GSR. “From Alberta to Puntas Arenas, Chile, and from Ethiopia to New Zealand, we answer our phone and call our customers by name.”

Along with its stringent customer-service standards, the firm is committed to using the latest seismic technology. Many companies in the oiland gas-exploration industry are searching for new drilling opportunities, and looking to providers of seismic-acquisition services At a Glance to advise them on the most optimal places to drill. Still, even with the use of high-tech Location: seismic tools, finding oil can be difficult; Calgary, AB Founded: it’s impossible to predict its location with 2002 100-percent accuracy.

Employees: “[Using seismic technology to find oil] is 10 similar to performing an ultrasound to deSpecialty: termine a baby’s gender,” explains Doug Seismic equipment service and supply Goble, president of GSR. “It gives the stake-

GSR’s Operations

The blue spots on this map represent GSR’s operations, and the firm will soon be expanding into the regions shaded in yellow. Though GSR has outposts across the globe, staffers know customers by name.

Areas of planned expansion Areas of current operation

26

energyinternationalquarterly.com | march/april 2011

emerge, change the industry, and change his business. These new tools make acquisition projects more timely, cost effective, and efficient.

“Another advancement has been the acceptance of the digital sensors,” Goble says. “The sensor reduces the size and weight of the receiver, and improves the signal quality.” According to Goble, the adaptation of three-component configurations has been another key advancement.

“3C configuration allows recording of the vector in which the energy has arrived at the receiver, and other information, not recorded efficiently in the past,” he says.

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“We are a global company with a family mindset. From Ethiopia to New Zealand, we know our customers by name.”

Doug Goble, President

Over time, Goble has also seen a very significant increase in the amount of equipment used by each project crew. “When I started in 1980, we had 120 channels active. This equates to 120 receivers coupled to the earth and recording sound waves,” Goble says. “I would suggest today, in 2010, the average crew has 2,000 channels on the crew. There have been special crews with 10,000 channels and more.”

The increase in amount of equipment and the evolution of seismic technology seems to have only contributed to the growing success of GSR. “Both of these changes, in addition to others happening now, add value to what we are doing in the rental business,” Goble says. —kelly matlock

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27

GLOBAL SCOPE

US Offshore Drilling Currently open for exploration and development New areas open for exploration, study, and potential development

149

Newly protected areas Lack of support/ low resource potential

Looking East

Faced with new regulatory challenges, Seahawk Drilling looks to expand its reach beyond North America

113

52 65

In a time when there’s been no shortage of controversy $38,000 per day per rig to about $25,000 per day per rig, while minimizabout offshore oilrigs in the Gulf shore, Seahawk Drilling, an offshore ing operational downtime due to equipment problems. drilling company headquartered in Houston, Texas, is looking to expand Though Seahawk is doing well and looking to the future, Stilley says its reach outside of North America—currently, all the firm’s rigs are in the the firm is still facing plenty of new challenges. “We had a 30 day moraUS. “The challenges that we faced in 2010 will be replaced by new oppor- torium on shallow water drilling immediately after the Deepwater Horitunities in 2011,” predicts Randy Stilley, the firm’s CEO and president. zon incident, followed by new regulations for shallow water drilling and Meanwhile, the company is keeping operational efficiency, cost effec- a continued moratorium on deepwater drilling,” he says. “These new tiveness, and safety as its top priorities. “Safety is not just a policy any- regulations and potential further legislation make it difficult for our inmore,” explains Stilley. “It’s a requirement of doing business, and that’s dustry. The impact of the BP oil spill could create a reduction in drilling evident throughout the entire industry.” in the Gulf of Mexico for a long time. That’s where all of our operations The emphasis on safety is partly a reaction to the Deepwater Horizon are today, and that’s a real challenge for us.” drilling accident. Seahawk, which focuses exclusively on shallow-water Stilley says these new regulations may be on the rise. “We were drilling at depths up to 400 feet, has responded to the incident by rein- compliant with the new safety regulations days after they were issued,” forcing its safety practices. “We have a strong safety culture,” Stilley says. Stilley says, “but if we have a continuous string of new regulations and “Anyone working on our offshore rigs has the ability to shut down any continued problems with customers obtaining permits offshore because operations that they think are unsafe. The recent [Deepwater Horizon] of regulatory slowdowns, we may need to find a new place to operate our incident reinforced that culture with us.” rigs in the future.”

Seahawk’s reliance on its offshore em- The company is currently deciding where and how to expand, and ployees is a major reason it has been able hammering out plans to move some of its operations outside of the UnitAt a Glance to achieve success while many companies ed States and Mexico, possibly to regions of Africa and the Middle East. in the industry struggle. “We are trying to “[We’re looking] for opportunities to acquire additional jackups around Location: empower the people we have managing our the world, and we’ll be very focused on that over the next several years,” Houston, TX rigs offshore, when it comes to safety, main- Stilley says.

Founded: 2009 tenance, and everything else, to a greater ex- For now, though, Seahawk continues to thrive by staying true to its Employees: tent than we have in the past,” Stilley says. values and relying on the expertise of its employees. “We have very ex700 By empowering their offshore employees perienced and capable people working offshore for us, and we have very Specialty: to manage the rigs and solve problems as loyal customers who appreciate our performance and safety culture,” Offshore drilling they occur, Seahawk has also been able to Stilley says. “That gives us a great building block as we start expanding to Annual Sales: $300 million drastically reduce its operating costs from other areas of the world.” —kelly matlock 28

energyinternationalquarterly.com | march/april 2011

45 TCELE

Top offshore drilling regions

G&J LAND & MARINE FOOD DISTRIBITORS congratulates the SEAHAWK DRILLING INC on all of their success!

BR A N ATI N I NG VE O R S UR AR Y

H

Due to an increase in the US government’s drilling regulations, Seahawk is hoping to expand into other regions. In the map to the left, the figures represent the total number of active rigs in that region.

Pink circles represent where Seahawk is currently operating; orange circles represent where the firm hopes to expand.

74 75

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Researchers with the Massachusetts Institute of Technology say the United States has 650 trillion cubic feet of recoverable shale gas within its borders—enough to power the nation for three decades. As a bonus, the fuel is said to be more eco-friendly than coal. Instead of celebrating, though, many environmentalists are labeling shale as a danger to public health. EIQ looks at both sides of the controversy, p. 32.

WHAT THE FRACK, p.32 /// BANKROLLING A REVOLUTION, p.38 /// KING WIND, p.44 ////////////////////////////////////////// EIQ

energyinternationalquarterly.com | march/april 2011

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Hydraulic Fracturing (fracking) allows energy suppliers to extract shale gas from bands of rock beneath the earth’s surface. The process is said to be cleaner and greener than burning coal.

BUT IS IT SAFE?

he United States once bemoaned its rapidly depleting natural-gas reserves, but in recent years, has been considered gas rich. So what gives? Due to advances in horizontal drilling and hydraulic fracturing (known as fracking), it’s now possible to unlock shale-gas reserves from bands of rock beneath the earth’s surface. The process has created a boon for energy suppliers—the nation’s natural-gas reserves jumped by 35 percent from 2007 to 2009, according to data from the Potential Gas Committee—but it has also kicked up controversy. Fracking involves drilling down into shale formations below the water table and injecting water, sand, and other chemicals and hydraulic fracturing fluids into the reserve. According to some, the process is damaging to both the environment and public health, and should be stopped.

The controversy is gaining momentum, largely because shale gas is a significant part of the nation’s energy supply: it accounts for 15 to 20 percent of natural gas produced in the United States, and that number is likely to increase significantly in the next decade. Researchers with the Massachusetts Institute of Technology (MIT) estimate that the United States has 650 trillion cubic feet of recoverable shale gas within its borders—enough to last 30 years under current rates of consumption.

This development has a dramatic impact on the energy landscape of North America. Some are thrilled with the gas boon, and have dubbed shale gas as the fuel of the future. Others see the the process of extracting it as an environmental catastrophe. To get an accurate view of the controversy, EIQ spoke with sources on each side of the argument. energyinternationalquarterly.com | march/april 2011

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A Dirty, Dangerous Fuel At a US Environmental Protection Agency (EPA) hearing outside Pittsburgh last summer, unconvinced citizens presented objections about drilling in the Marcellus Shale, a rock formation that runs from New York to Tennessee and underlies three quarters of Pennsylvania.

Community members told personal stories of health ailments, dead farm animals, and contaminated wells—which they claim are the adverse affects of shale-gas drilling.

There is evidence to support some of these claims. The fracking process may involve the use of dangerous chemicals (at press time, energy producers are not required to reveal what is in their fracking fluids, though some have voluntarily released the information). Of particular concern are methane, a greenhouse gas that is 20 times as potent as carbon dioxide, and benzene, a carcinogen frequently found in raw natural gas. During the fracking process, methane and other hydrocarbon gases can potentially leak from pumps, flanges, or pipe connectors. Brad Copithorne, an energy- and financial-policy specialist with the Environmental Defense Fund, says that even if there are no leaks, the process of venting initial well output creates significant air pollution and greenhouse-gas emissions.

A study recently conducted by Robert W. Howarth, a professor with Cornell University, found that when methane leaks are considered, the life-cycle greenhouse gas footprint of shale gas actually has a worse effect on the climate than either coal or fuel oil.

Hydraulic fracturing fluids also contain chemicals and other pollutants that can contaminate ground and surface water with flowback, or fracturing fluid that has come back out of the well bore. In addition to chemical additives, Copithorne says that flowback may contain other toxins, such as heavy metals that are present in shale formations.

How Fracking Works

Drilling Rig

Hydraulic fracturing allows natural-gas producers to access gas reserves that are trapped in bands of rock beneath the earth’s surface. Here’s a step-by-step look at their process.

The upper reaches of the well are encased in cement

A drill bit bores thousands of feet down into shale deposits

Shale

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energyinternationalquarterly.com | march/april 2011

Millions of gallons of water are delivered to the well (nearly 200 tanker trucks worth) for use in fracking process

Wellhead 1,000 ft. long

Fresh water aquifer

Horizontal well 1,000 ft. long

The process of venting initial well output creates significant air pollution and greenhouse-gas emissions.

Shale gas proponents say these dangers can be minimized with careful drilling practices, but numerous shale-gas producers have demonstrated that they are not following basic safety procedures. According to records by the Pennsylvania Department of Environmental Protection, there were 1,614 violations issued to Pennsylvania Marcellus Shale drillers between January 1, 2008 and August 20, 2010—91 violations of Pennsylvania’s Clean Stream Law, 155 violations regarding the discharge of industrial waste, and 162 violations for improper construction of waste-water impounds.

When suspected water contamination has occurred, communities have trouble determining what chemicals were contained in the hydraulic-fracturing fluids, making it difficult to link contamination with drill sites. Shale gas producers often lack information on specific formulas obtained by their suppliers, even if they are willing to be transparent.

“If you’re using a lot of chemicals in the ground near my water well, I would want to know what you are using so if my water tastes funny one morning, I’ll know what to test for,” says Copithorne.

The Fuel of the Future Proponents of shale gas argue that shale provides the United States with an energy boon that is too good to pass. Natural gas can substitute the use of coal and oil, and help wean the nation off the dirtiest fossil fuels.

David Wochner, counsel and co-head of the Policy and Government Affairs Group at Sutherland Asbill & Brennan, says that shale gas is on the rise, and new infrastructure is needed to support its expansion. “New pipeline expansions are being announced every week from all the major interstate pipelines,” he says. “Companies are investing huge sums of capital right now in infrastructure expansion.”

Numerous natural-gas-fired power plants were built over the last decade. Gas demand skyrocketed, yet supply seemed to be waning. Shale gas production boosted supply, decreasing US reliance on costly imports, which is particularly significant because the demand for natural gas is bound to increase: Exxon Mobil estimates global gas consumption will climb by 55 percent by 2030.

Due to today’s lower gas prices, some power producers are idling spare coal capacity and running natural gas plants instead. This gen-

Fracking fluid is stored in tanks

Recovered water is stored in ponds

An electrical current is fed into the well

A perforating gun blows holes into the rock (fracking)

Fracking fluids are pumped into the well

The fluids holds the fractures open; natural gas is released and flows up and out of well

The rock is fractured under pressure from fracking fluids Shale

Shale

1,000 ft. long

energyinternationalquarterly.com | march/april 2011

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Taking Stock of Shale ducers can invest in these closed loop systems, and other improved processing equipment. According to the Environmental Defense Fund, this investment is usually paid back in only one to two years by sale of the captured natural gas.

Shale Gas Plays, Lower 48 States

Diligent gas producers can further minimize their ecological footprint by drilling multiple wells from a single pad, adequate remediation of drill sites, and minimizing the construction of new roads.

Some shale gas critics are very concerned that the typical well requires two to five million gallons of water.

Marcellus Water recycling techniques can reduce this total, and technological research may lead to further advances.

Woodford Fayetteville

Although some accidents and problems have been associated with shale gas, many are due to reckless proBarnett ducers not following basic safety protocol. This proves Haynesvillethat when extracting shale gas, responsibility is essenBossier Shale Gas Plays tial—but proponents of the fuel don’t think it should Basins be discounted completely. The opportunity to utilize the cleanest of the fossil fuels shouldn’t be squandered, warns Sergio C. Trindade, director of International Fuel Source: Engergy Information Administration Technology, Inc.

“It seems natural gas on a global scale, will surpass erates equal amounts of electricity but emits half the greenhouse gas oil as the main source of energy in the next thirty or forty years,” he says. “There is a growing and important role for gas. My pitch is, let’s emissions.

“We’re already seeing some utilities in the South reduce utiliza- use more gas and in more applications, but let’s use it more wisely tion of their least efficient coal power plants and switch on some of than we have in the past—let’s stretch it over longer periods of time their gas power plants,” Copithorne explains. “If gas and coal stay at by a combination of incremental supply done in an environmentally the same price levels that they are today, the amount of switching will sustainable way and with demand management and efficiency.” likely increase.”

The switch is arguably beneficial to the environment, especially if Pending legislation energy producers follow careful mining and storage practices. Care- Due to mounting concern about hydraulic fracturing, the EPA befully constructed wells that are properly cemented and cased lessen gan a two-year study of the practice in 2010; the study may result in the risk of gas leaks. When flowback is stored in open pits, it can leak a change of legislation. For example, under the Energy Policy Act of or overflow during storms; closed loop systems store flowback in steel 2005, hydraulic fracturing is exempt from federal regulation under tanks prior to disposal or reuse, and reduce contamination risks. Pro- the Safe Drinking Water Act. And because fracturing fluid ingredients

The US is rich in shale gas—according to researchers from MIT, it’s enough to power the nation for 30 years under current rates of consumption.

Milestones in the Recent History of Shale Gas 2003

July 2008

September 2009

March 2010

June 2010

Large-scale development

Natural gas prices peaks at

Gas prices fall to $2.41 mmBTU.

A study by Cornell University

An eruption at a Clearfield

of Barnet Shale ramps up,

$13.69 per billion BTU (mmBTU).

November 2009

with 300 billion cubic feet

professor Robert W. Howarth

County well spews natural

finds that, when methane leaks

gas and toxic wastewater

July 2009

US–China Shale Gas Resource

are considered, the greenhouse

for 16 hours before being

ExxonMobil drills first four wells

Initiative is announced. (See

gas footprint of shale gas is

capped.

July 2005

in the Horn River Basin, making

“Shale on the Move” sidebar.)

worse than coal and fuel oil.

United States Congress passes

the basin the most active area

the Energy Policy Act of 2005;

in Canadian shale development.

of production.

EPA begins a $1.9 million

the act exempts hydraulic frac-

comprehensive, peer-reviewed

turing from the restrictions of

study of the impact of hydraulic

the Safe Water Drinking Act.

fracturing on the environment and human health. The study is slated for release in 2012.

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energyinternationalquarterly.com | march/april 2011

Shale On the Move North America is a leader in shale gas extraction, but experts predict the energy source will soon become more popular in other regions. This could help ease political tension by giving more countries the ability to tap their own shale-gas reserves or pur-

chase gas from a larger pool of producers.

“Eastern Europe is a particularly compelling place for shale gas because there is a real necessity to [help Eastern European countries become gas independent],” explains Malone. When Russia cut off deliveries of natural gas to Ukraine in 2006, shortages were reported in countries as far away as Italy and France.

Poland is likely to be a hotbed of shale gas production, with Chevron, Exxon-Mobil, and ConocoPhilips already having licenses for shale gas exploration. Gas drilling is easiest in less populated areas, though, which presents a chal-

lenge to European gas developers.

China has also announced plans to explore and develop its shale gas reserves.

In late 2009, President Barack Obama and President Hu Jintao launched the USChina Shale Gas Resource Initiative. The Initiative aims to boost collaboration in shale gas resource assessment, technical developments, and investment opportunities. The Strategic Research Center for Oil and Gas aims to create between 15 and 30 billion cubic meters of drilling capacity by 2020, and to produce eight to twelve percent of China’s natural gas from shale deposits. Last May, the Chinese government announced plans to offer tax incentives and subsidies for shale gas production.

Because gas produces fewer greenhouse emmissions than coal, the switch could be good for the environment

are often unknown, it’s difficult to test potentially contaminated water.

“My expectation is that we will see federal legislation around the disclosure of fracking fluids, requiring at least a general listing and volumes of the chemical components, but not necessarily requiring companies to divulge trade secrets,” says David Wochner, counsel and co-head of the Policy and Government Affairs Group. He anticipates this as an intermediate step before the EPA releases the results of its study.

Drilling regulation can occur at both the state and federal level. Attitudes about drilling vary by region; as a result, stricter regulations may be created in some states.

July 2010

August 2010

ConocoPhillips drills its first

New York Senate approves

shale gas well in Poland

measure to prohibit new drilling

GasLand, a controversial HBO

York portion of the Marcellus

documentary written and direct-

Shale Formation

permits until May in the New

ed by Josh Fox, spotlights the negative impacts of hydraulic fracutring. The film goes on to win a string of awards, including one from the Sundance Film Festival.

“Haynesville, Barnett, and Eagle Ford are all areas that are oil and gas prone, where people have been drilling for 100 years and people are generally pretty friendly to it,” says Tony Montano, a senior oil and gas analyst for Ticonderoga Securities. “When you talk about moving into the Marcellus [Formation] in Pennsylvania, the population is ambivalent about the whole thing. Of course the landowners love the royalty checks, but there is a lot of concern that they are mortgaging their future by allowing gas drilling on the land.”

In some cases, public outcry has caused companies to voluntarily halt drilling, or stop it completely. “Already, Chesapeake [Energy Corporation] is bowing out of drilling in the New York City water shed because it isn’t worth the political hassle,” explains John Malone, a senior oil and gas analyst for Ticonderoga Securities. At press time, the New York Senate had approved a measure to prohibit new drilling permits in the New York segment of the Marcellus Shale until May of 2011.

Legislation aims to protect public health, but shale gas producers protest that it could boost production costs, altering the breakeven point for production, thus discouraging development of this industry in certain areas.

“The states will do their best to create a balance between protecting landowners and constituents and incentivizing the natural gas industry if they can do so safely,” explains Kirstin Gibbs, partner and head of the Natural Gas Regulatory Group at Sutherland Asbill & Brennan. “There can be significant tax revenue from the production of shale gas.” EIQ energyinternationalquarterly.com | march/april 2011

37

IN THE LAB Sun Catalytix founder Dan Nocera displays his groundbreaking discovery: an oxygen-evolving catalyst.

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energyinternationalquarterly.com | march/april 2011

the Department of Energy’s Advanced Research Project Agency–Energy (ARPA–E) is pumping millions of stimulus dollars into the renewableenergy industry, in hopes of establishing the United States as a leader in green technology

By Annie Fischer

Bankrolling a Revolution G

reat risk brings great reward.

That’s the fundamental ideology that drives the Department of Energy’s Advanced Research Projects Agency—Energy (ARPA—E). The agency, which was created under the 2007 America Competes Act, first received funding in April 2009 through the American Recovery and Reinvestment Act. It’s funneling those stimulus dollars into untested green-technology projects, and it hopes the financial risk will reap large dividends and establish the United States as a world leader in green-energy development.

The ARPA-E invests in the development of energy technologies that promise genuine transformation in the ways we generate, store, and use energy. These types of projects

have high commercial potential, but because they’re also a high technical and market risk, they are often unable to attract privatesector financing. Agency director Arun Majumdar explains that if just a fraction of the projects funded by the ARPA-E successfully reach the marketplace, the economic benefits would be enormous. The US could limit its reliance on foreign-energy imports, cut national greenhouse-gas emissions, and improve energy efficiency across the board.

At press time, the agency has awarded $349 million to 117 projects. Awardees are diverse: some funds go to prestigious universities and national labs, but small companies and nonprofits also receive considerable financial assistance. Majumdar says that almost 50 percent of the agency’s money goes

Photo: Len Rubenstein Photography

energyinternationalquarterly.com | march/april 2011

39

Coming Soon: Biofuels from aquafarmed macroalgae (seaweed)

E.I. du Pont de Nemours and Company MacroAlgae Butanol E.I. du Pont de Nemours and Company (d.b.a. DuPont) has already worked successfully with the DOE to develop new technologies like ethanol biofuels and advanced photovoltaic materials.

It’s no surprise, then, that the firm received additional funding through the ARPA–E. With that funding, DuPont has teamed up with Bio-Architecture Lab (BAL), a pioneer in the development of biofuels from aquafarmed macroalgae (seaweed); the two firms share an $8.9 million ARPA–E award.

The project’s mission is to create a microorganism that converts macroalgae to sugar, and then converts that sugar to isobutanol—all in a commercially viable and eco-friendly fashion. Each component has major benefits: macroalgae is environmentally sustainable (it uses land unsuitable for agriculture and does not require fresh water to farm) and isobutanol is projected to deliver a 90-percent-plus reduction in greenhouse-gas emissions compared to gasoline derived from petroleum. Despite these potential benefits, a seaweed-as-biomass research program is still an economic and scientific risk because there isn’t enough data available to validate the project’s cost.

If the project succeeds, though, macroalgal-derived isobutanol has tremendous global application and potential as a renewable-energy technology. According to the ARPA– E overview of the project, “at 163MM barrel-per-year production potential, macroalgalderived isobutanol has the potential to replace more than 5.2 percent … of gasoline per year in the United States alone”—that’s 6.8 billion gallons. More than 60 scientists will work on the project in Wilmington, Delaware, and Berkeley, California.

to small business or recent graduates who want to continue their research.

Each ARPA–E-funded project receives between $500,000 and $10 million, which is doled out over a period of one to three years.

The money is intended to help make laboratory work “market-ready.” Ideally, successful projects will then be picked up by the private sector. As for the others, Majumdar admits that it’s difficult to determine when less-effectual projects should be phased out.

“We monitor [each funded project] closely,” he says, “and we provide a written list of milestones that need to be met. If they’re 40

SEAWEED POWER DuPont employees are working to develop biofuels from farmed seaweed.

If successful, the project could increase domestic biofuel production, reduce US dependence on foreign fuels, and decrease greenhouse-gas emissions.

meeting around 90 percent, we’re happy— The agency’s support system includes a technology outreach team charged with fabut it’s also important to give them enough cilitating agency-funded technologies’ introtime to succeed.”

The agency is still in its infancy, and mak- duction to and adoption in the market, and liaising with the public to explain how those ing the best use of its allocated money is part of the learning curve. In Majumdar’s “Direc- technologies could be socially beneficial. The agency places high value on public relations. tor’s Letter” (published on the ARPA-E’s website), he explains the agency’s mission “We’re using taxpayer money, so we need to be able to explain to the public what it is we’re and pays special attention to the significance doing,” Majumdar says. Funded projects also of its post-funding support system. “If we are benefit from the expertise of technical proto foster rapid technological innovations,” he gram directors who relocate to Washington, writes, “we also need to innovate in creating a system and a process that enables [each AR- DC to serve three- to four-year term appointments and are chosen for their experience in PA–E-funded project] to thrive.”

energyinternationalquarterly.com | march/april 2011

Michigan State University Wave Disk Engine Norbert Mueller, an engineering professor at Michigan State University (MSU), is working in tandem with a team of scientists and engineers to produce a compact engine/generator known as a wave disk generator (WDG). The technology could revolutionize automotive efficiency at lower vehicle costs: it uses shock waves to convert either liquid fuel, compressed natural gas, or hydrogen into electrical power, and offers a near-term solution to diminishing oil supplies and CO2-emission-reduction goals.

On average, only 15 percent of automobile fuel is used for propulsion in gasoline-engine vehicles. The WDG hybrid uses 60 percent of the fuel for vehicle propulsion, and has the potential to significantly increase efficiency while reducing CO2 emissions by 90 percent. Compared with current plugin hybrid-electric vehicles, MSU’s hybrid would be 30-percent lighter and 30-percent less expensive, and refueling costs would be significantly lower.

About the size of a large cooking pot, the WDG replaces a current hybrid’s automotive internal combustion engine, radiator/water pump, fuel/air control, transmission, and generator. Its driving range is more than 500 miles.

Ultimately, MSU’s new platform could provide hyper-efficient vehicles with superior customer cost, safety, and utility. Continued oil- and gasoline-price increases could motivate rapid consumer-vehicle replacements over the next 15 years, and accelerated research—like that afforded by the ARPA–E—will help to more quickly transition the WDG to commercialization. Because breakthrough automotive research is difficult to fund without committed large customers, and because the technology requires developing new lowcost, high-RPM generators that currently do not exist in automotive markets, the ARPA–E awarded MSU more than $2.5 million for the project.

AUTO PROPULSION Norbert Mueller, associate professor of mechanical engineering, holds a design of a wave rotor motor.

Photo: G.L. Kohuth

Sun Catalytix Corporation Affordable Energy from Water and Sunlight

With $4.1 million in funding from the ARPA–E, Sun Catalytix is working to develop a versatile, inexpensive, efficient, self-repairing, and scalable method for storage of renewable energy.

The company will use a water-oxidation catalyst to generate hydrogen and oxygen from tap water or clean seawater. It enables the development of electrolyzers that operate with impure water, under benign conditions, at high efficiency, and at one-tenth the cost of conventional systems. In a process mimicking photosynthesis, photoelectrochemical cells are also used to convert sunlight and water into oxygen and hydrogen fuel. The new class of devices includes an inexpensive 100-watt electrolyzer and a direct solar-to-fuel PEC module.

The award has enabled Sun Catalytix to move its technology from the academic laboratory to a commercial setting for practical application and to focus on reaching milestones in the lab—instead of spending valuable man-hours on fundraising efforts. If successful, the Sun Catalytix technology will enable continuous power in off-grid locations at a much lower cost than existing technologies.

AFFORDABLE ENERGY Sun Catalytix hopes to use a wateroxidation catalyst to generate energy. If successful, the project will enable continuous, affordable power in off-grid locations.

Coming Soon: Clean, affordable power from tap water energyinternationalquarterly.com | march/april 2011

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Coming Soon: Transformational hybrid-drilling technology ARPA–E History

BIG MONEY Foro received the ARPA–E’s largest financial award to date.

Foro Energy Low-Contact Drilling Technology to Enable Economical EGS Wells In 2006, the Massachusetts Institute of Technology estimated that low- to mid-grade engineered geothermal systems (EGS) could provide more than 100 GWe of cost-competitive electric power by 2050—with a reasonable investment in research and development.

The ARPA–E bolstered the potential of this emerging technology when it awarded more than $9 million to Littleton, Colorado, start-up, Foro Energy.

An EGS produces energy from previously unusable sites by using hot, dry rock to heat water in artificially created reservoirs, which makes it possible to renewably harness natural resources for carbon-free electricity generation. In the United States, this natural resource is predominantly found beneath thick layers of ultra-hard crystalline basement rock, such as granite and basalt. One of the primary challenges of an EGS is the extremely high drilling costs. Conventional drill bits penetrate slowly and wear down quickly. It’s also tough to ensure the effectiveness of the artificial reservoir.

Foro Energy plans to use the ARPA–E funds to develop a transformational hybrid-drilling technology that both increases drilling rates up to 10 times relative to conventional technology and employs a unique thermal-energy technology that breaks and weakens the ultra-hard rock. If successful, this project could put the United States at the forefront of geothermalenergy technology and make thermal energy cost-competitive with natural-gas generators.

Led by Mark Zediker and Joel Moxley—both industry experts with venture-capital backgrounds—the company was granted $9.2 million by the agency as a 50-percent cost share with two other private investors. The award is ARPA–E’s largest to date.

tory director for the Energy and Environment science, business, and technology. department at Lawrence Berkeley National Because the agency provides such a Laboratory. He was involved with the governstrong network of support, an ARPA–E award is worth much more than its cash value. ment before joining the agency, too—Majumdar has testified before Congress on how to Awardees have the opportunity to draw on the reduce energy consumption in buildings. knowledge of these three teams, and agency members are among the best and brightest in His pride in the ARPA–E staff—whose their fields. Just look at Majumdar’s CV: be- members often have sacrificed hometown fore joining the ARPA–E, he served as an advi- living and better-paying jobs to work for this government agency—is apparent. “There’s a sor to startup companies and venture capital firms in the Silicon Valley—so he’s comfort- real sense of mission here,” Majumdar says. able working with emerging technologies. He “We’re doing what we have to do to put the learned about the inner workings of the ener- United States in the technological lead.” gy industry during a stint as associate labora- It’s unclear how long it might take the 42

energyinternationalquarterly.com | march/april 2011

Following the 2006 release of National Academies’ Rising Above the Gathering Storm report, which included a recommendation to establish the ARPA–E within the Department of Energy, President George W. Bush signed into law the America Competes Act, thus creating the agency. The ARPA–E was unfunded until April 2009, when it received $400 million through the American Recovery and Reinvestment Act. Five months later, President Barack Obama announced his nomination of Arun Majumdar as director.

The ARPA–E’s first Funding Opportunity Announcement (FOA) was non-restrictive in scope and subject, resulting in approximately 3,700 concept papers, reviewed by more than 500 scientists and engineers from academia and industry. From those submissions, the agency encouraged a subset to submit full applications and eventually received more than 300; in October 2009, following rigorous deliberation, the ARPA–E selected 37 proposals for award.

In contrast to that first call for submissions, which was open to all topics related to energy, the second and third FOAs were more focused. In April 2010, the agency awarded $106 million to 37 new projects in the fields of electrofuels, advanced carbon-capture technologies, and electric-vehicle batteries. In July 2010, 43 projects in grid-scale energy storage, power electronics, and building efficiency received another $92 million. At press time, the ARPA–E had awarded $349 million to 117 projects.

agency to give the United States a competitive edge in green technology. Majumdar says that a home run within the next five years is unrealistic. He says that by 2015, the ARPA–E’s vectors will point in the right direction, and cites a list of criteria the agency might use to measure its success: is there full-on investment from the private sector? Have investments led to new companies? Has the agency brought the best minds into the energy industry?

“We want to be able to say yes to all of [these questions],” Majumdar says, “and to make sure we continue taking risks and being bold.” EIQ

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King Wind The United Kingdom is aggressively expanding its capacity for wind energy—and setting a green example for other nations. By Shawn Drury

+ Why Wind?

The United Kingdom is an ideal setting for wind farms: as an island nation, it has plenty of shoreline that’s suitable for offshore turbines, which are less invasive and don’t gobble up otherwise useable land.

It’s no surprise, then, that public and private interests alike are joining forces to see that the UK maximizes its wind energy-generating potential.

The expansion of the UK’s wind-energy industry has been a long time in the making: in November 2008, the UK passed the Climate Change Act in an effort to address the effects of climate change and begin the task of divesting itself from carbon-based energy. The act mandated a 34-percent reduction in greenhouse-gas emissions by 2020, and committed the UK to gathering 15 percent of its overall energy from renewable sources (a seven-fold increase on then-current renewable-energy levels). To help meet this challenge, the UK has announced plans to establish a “green” investment bank sometime in 2011. The institution’s mission will be to raise the necessary funds, through public and private sources, that are needed to meet the car44

energyinternationalquarterly.com | march/april 2011

bon-reduction goals.

Although there are many forms of renewable energy, officials have made it clear they believe that wind—offshore wind, to be precise— will be the centerpiece of this effort.

Blueprint for Growth

The Crown Estate has been instrumental in the planning of new wind farms. The CE, as it’s commonly known, manages the property owned by the Crown, and its influence extends beyond the grass and soil. All of the UK’s seabeds, from the shoreline to 12 miles out into the ocean, fall under its governance.

The first phase of the Crown Estate’s involvement in the planning of wind farms is known as Round 1, and it predates the government’s official commitment to renewable energy by several years. In April 2001, the CE announced that 18 sites had been approved for offshore wind farms. Since the technology was still in the fledgling stage, projects were capped at a maximum of 30 turbines. Eleven of those original sites are now operational; the two largest, one at Kentish Flats and

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Adam Bruce, Global Head of Corporate Affairs, Mainstream Power Company

Offshore Growth 5000

Onshore Growth 4000

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David Bean, the executive director of PMSS, an independent consultancy headquartered in Romsey, UK, says his industry expertise has been in high demand lately. PMSS was founded in 1994, which, in wind-farm history, makes it positively prehistoric. As a veteran player in the wind power game, Bean has a keen understanding of the many parts that are necessary for a wind-power project to get off the ground, and actually start producing energy. According to Bean, technological capacity and a receptive market are both critical elements of the new era of wind-friendly energy policy.

Bean believes that investors are beginning to see wind as a longterm investment. “Wind energy will strengthen over time, the per capita earnings will go up,” he says. “It’s obviously a growing market.”

Adam Bruce, global head of corporate affairs with Mainstream Power Company, is also a veteran of the UK wind-energy scene. After a three-year stint as chairman of the British Wind Energy Association (BWEA), Bruce joined Mainstream Renewable Power, a development firm that helps secure the funding for and oversees the construction of new wind farms. Since it was founded in 2008, the company has quickly established a global presence. The firm has renewable operations in London, Santiago, Chile, and Cape Town, South Africa.

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another at Barrow, operate at 90 MW each. In total, the turbines from Round 1 produce 962 MW of energy.

Emboldened by the success of Round 1, more investors, manufacturers, and site representatives pooled their resources for Round 2 of the process. The two largest projects of Round 1 generate as much power as the second smallest projects in Round 2. When construction for Round 2 is complete (projected to be in 2014), the turbines will be producing 7.2 GW of energy. In fact, the two largest offshore wind farms in the world will be built during Round 2—the London Array, which will have about 300 turbines generating 1 GW of energy, and the Gwynt n Môr project off the coast of Wales, which will have 160 turbines producing 576 MW of power.

In 2008, nine more sites were confirmed for Round 3. Once they’re all built, there will be a total of 37 wind farm sites in the UK.

RAISING WIND By 2010, the UK’s onshore wind capacity growth had more than tripled from its 1999 capacity growth, which was less than 500 MW. The nation’s offshore wind capacity growth, which was virtually nonexistent in 2002, grew to more than 1 GW in 2010. energyinternationalquarterly.com | march/april 2011

45

+ what’s next The numbers on this map chart the locations of the United Kingdom’s six largest offshore wind farms, in various stages of completion. These are only the beginning of the nation’s wind-energy expansion. In January of 2010, the Crown Estate approved plans for Round 3 of its wind initiative, which will include 9 additional new wind farms that will generate upwards of 25 GW of combined power. Construction on Round 3 farms hasn’t yet begun, as individual developers are still seeking planning applications.

Here, all offshore-wind sites are shaded, with different colors denoting the round of the site’s development.

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4

Round 1 Wind Farm Site

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6

Round 2 Wind Farm Site

3 Round 1 & 2 Extension Scottish Wind Farm Exclusivity Award Round 3 Wind Farm Zone

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MAJOR UK WIND FARMS

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2

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1

1

London Array (175-341 turbines)

2

Greater Gabbard (140 turbines)

3

Arecleoch (60 turbines)

4

Walney (102 turbines)

5

Thanet (100 turbines)

6

Robin Rigg (60 turbines)

5

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capacity (in MW) of major UK wind farms Wind Activity

UK Continental Shelf Limit

Round 1 Wind Farm Site

1

Round 2 Wind Farm Site

0

Base Map

2

Renewable Energy Zone

Round 1 & 2 Wind Farm Extension

Territorial Waters Limit

Scottish Wind Farm Exclusivity Award

International Waters

3

Round 3 Wind Farm Zone

LONDON ARRAY GREATER GABBARD ARECLEOCH 1 GW 500 MW 367.2 MW (PROPOSED) (IN CONSTRUCTION) (IN CONSTRUCTION) S:\MARINE\Restricted\MaRS\GIS\Admin\Presentation\Map_Library\MXD\1_Current_Offshore_Wind_UK.mxd 46

energyinternationalquarterly.com | march/april 2011

4

60

1:6,000,000

120

5

Size : A4

240 km

Author : SR 6

QA

Positions shown relative to WGS 84. © Crown Copyright 14 July 2010. Reproduction in w prior consent of The Crown Estate. © British Crown and SeaZone Solutions Limited. All rig 012009.017. Elevation data supplied by SRTM.

16 New Burlington Place 6 Bell's Brae London W1S 2HX Edinburgh EH4 3BJ Tel: 020 7851 5080 Tel: 0131 260 6070 WALNEY THANET ROBIN RIGG 367.2 MW 300 MW 180 MW www.thecrownestate.co.uk (IN C0NSTRUCTION) (OPERATIONAL) (OPERATIONAL)

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“I’ve seen a lot more companies interested in doing business with the UK [since its wind industry began to expand].”

+ 50

Joanne Howard, Vice Consul for Renewable Energy & Clean Technology, United Kingdom Trade & Investment

building boom Wind turbines built in the UK (by year)

40 30 20 10 0

2004 12

+

2005 23

2006 22

2007 31

+

2008 39

2009 40

2010 42 APPROVED (at press time)

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Mainstream is currently leading the plan for a new wind farm off “Many viable projects don’t make it through the planning [stage],” he the coast of Hornsea in East Yorkshire (the 4 GW project was award- says. For example, three of the sites awarded during Round 1 by the ed in Round 3). Previously, the company helped fund and build Neart Crown Estate were never built, because the necessary permits could na Gaoithe, which will produce 450 MW. not be obtained through local agencies.

Bruce says partnerships are critical to the growth of the industry, Hilton believes that once the planning stage of production is and Mainstream worked in tandem with Siemens and Hochtief, Ger- modified, wind projeccts will run more smoothly. He’s focusing on many’s largest construction company, to build the Hornsea project. the personnel challenges that will arise when up to 145,000 positions “We look to build partnerships wherever we can, whether it is with will open in the wind sector over the course of the next several years. utilities, investors, or with local stakeholders such as fishermen and His suggestion? Look to energy professionals from other sectors. “My military installations,” he says. background is oil and gas,” he says. “There are a lot of people from that industry who can step right in.”

Joanne Howard, vice consul for Renewable Energy & Clean TechWhile Bruce is optimistic, he knows there is work to be done before nology with United Kingdom Trade and Investment (UKTI), agrees— the goals set for 2020 can be met. “We really needed to get started and she’s very busy these days, linking oil and gas professionals from today, yesterday to be honest,” he says. “We’re doing this just as there the US to the UK wind sector now that the wind energy goals for 2020 have been finalized. She’s also responsible for bringing UK wind prohas been a collapse in financial confidence.” fessionals to the United States to explore emerging wind opportu Andy Hilton, the managing director of Wind Power Renewables, a : JM 14 July 2010 firm specializing in wind-power project management, also believes nities. “I’ve seen a lot more companies interested in doing business whole or part is not permitted without thatLicence changes have to be made for the UK to meet its goals for 2020. with the United Kingdom [since its wind industry began to expand],” ghts reserved. Product No. Hilton has seen projects of many sizes, and worked on ventures as Howard says. large as 208 MW and as small as three turbines. He says that the pro- Despite the ominous predictions about climate change, Howard says cess for smaller enterprises (1 to 2 MW in total) to receive licenses it is an exciting time for energy-industry professionals because wind energy has the potential to boost the economy while protecting the enviand permits can be cumbersome.

“To build just a few turbines requires the same amount of planning ronment. Bruce agrees. “I have a sense of excitement about what wind and licensing as it does if I wanted to build a nuclear plant,” he says. could do for the economy,” he says. “That’s my motivation.” EIQ

Moving Forward

energyinternationalquarterly.com | march/april 2011

47

NU-TEC I n n o v a t i o n Te c h n o l o g y

PERFORMANCE YOU CAN COUNT ON. PRESSURE CONTROL EQUIPMENT • Lubricator • Flanges - Spools • Well Head Flange Adaptors • Frac Heads CONVENTIONAL FISHING EQUIPMENT • Taper Mills • Watermelon Mills • String Mills • Pirhana Mills • Junk Mills • Junk Basket • Bit Subs • Lift Subs • Cutlip Subs • Pin Taps (Taper) • Box Taps • Lead Blocks • Kick Subs • Latching Tool (for Packer Picking) • Washpipe • Shoes • Top Bushing • Canfield Bushing FULL SERVICE MACHINE SHOP • API Spec. 7 - 1 • API Spec. 6A • ISO 9001:2008

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SURFACE AND SUB-SEA B.O.P. TESTING • BOP Test Joints • Safety Valve Test Sounds • Standard API, Tubing or Premium Crossovers • Crossovers with Nu-Tec Seals • Fixed Casing Ram Test Tools • Weep & Spacer Subs STANDARD OILFIELD EQUIPMENT • Double Integral Weco Side Entry Subs • Single Integral Weco Side Entry Subs • Multi-Purpose Wash Subs • Integral Pup Joints

Nu-Tec Main Facility | 4800 Hwy 90 East, Lake Charles, LA 70615 | Phone: 337.439.0820 Fax: 337.439.0860 | E-mail: info@nutecinc.com | Toll-Free: 800.259.6843 | www.nutecinc.com

NU-TEC I n n o v a t i o n Te c h n o l o g y

OUR GOAL IS TO INCREASE SAFETY ON THE RIG.

RISER SAFETY VALVE and DRILL PIPE SAFETY VALVE ...it takes both.

Deepwater drilling for oil and gas offshore

will allow the gas influx to be released in

with Semisubmersible Drilling Rigs and Drill

a controlled manner through vent ports.

Ships requires the Blowout Preventer (BOP)

The gas can be vented safely by closing the

to be mounted on the sea floor far below

Diverter and venting through the Diverter

the drilling rig. The installation of a BOP in

lines. The RSV is rated to the same pressure

deepwater depths can create problems that

rating as the Riser or Drill Pipe whereas a

do not occur with a surface mounted BOP

typical Diverter is rated to only 500 psi. The

when a gas influx (a “kick”) occurs and the

RSV is a fail-safe design that only requires

gas consequently gets into the Riser above

the drill string to be lowered to be set. This

the BOP. As the gas influx moves upward

can be done in an emergency very quickly

in the Riser toward the surface the gas

and can prevent a massive explosion of mud

increases to many times the original volume

and gas from exploding from the Riser. The

and can become uncontrollable as it nears

RSV can be circulated through with normal

the upper part of the Riser. Control of the

circulation rates but can be set very quickly

gas in the Riser is crucial and requires a

by downward movement of the drill string.

different type of well control than a typical

The RSV should be on the rig floor along

well control situation with a surface BOP.

with a drill pipe safety valve to be used in an

The Riser Safety Valve (RSV) is designed to

emergency situation.

be installed in the drill string and set one stand (+-100’) below the rig floor to control

For more information, please give us a call or visit our website today.

the expansion of a gas influx in the Riser.

The RSV will not replace the Diverter but is a second safety device to the Diverter. The Patent Pending

RSV will seal off the Riser when set but

800.259.6843 www.nutecinc.com

Nu-Tec Main Facility | 4800 Hwy 90 East, Lake Charles, LA 70615 | Phone: 337.439.0820 Fax: 337.439.0860 | E-mail: info@nutecinc.com | Toll-Free: 800.259.6843 | www.nutecinc.com

technology

Safety First

When it comes to offshore drilling, safety is Nu-Tec, Inc.’s first priority— and its most recent innovation could prevent disasters akin to the 2010 Deepwater Horizon oil spill At a Glance Last summer’s oil-spill disaster in the Gulf of Mexico was perhaps the first time in recent memory that the human, wildlife, and environmental dangers associated with offshore drilling were suddenly (and frighteningly) brought to the American public’s attention. Questions quickly surfaced as to how such a tragic accident could happen, and how it could not have been better prevented. It’s reassuring to know that companies like Nu-Tec, Inc. are constantly thinking about and developing products that will help prevent a similar accident.

J. Terrell Williams, president and CEO of Nu-Tec, brings many years of expertise in the oil industry to this important cause. After starting in the oilfield with Humble Oil Co. (now Exxon) as a roustabout working offshore on a production platform, Williams quickly climbed to higher positions and was eventually transferred to the company’s offshore drilling group in New Orleans as a drilling/engineering technician. In this position, he received extensive training in offshore drilling—including deepwater operations and sub-sea well control. It was here that Williams was assigned to set up and instruct the first sub-sea well control school for Exxon.

After being promoted to drilling superintendent, Williams super-

Location: Lake Charles, LA Founded: 1991 Employees: 20 Specialty: The design, manufacture, and leasing of tools and equipment to increase safety and efficiency on offshoredrilling rigs

How it Works: Riser Safety Valve

Offshore-blowout preventers are usually installed in deep water, far below the drilling rig. This poses a threat to drill-site safety: if a gas influx occurs in the well, gas moves up the riser—expanding in volume several times by the time it reaches the surface. For example, an 840-gallon gas influx at a depth of 5,000 feet would expand to several thousand gallons by the time it reached the surface. Closing the diverter usually controls the gas influx, allowing the gas to exit through the diverter lines, but if the diverter fails, the gas will surround the rig and create an explosive situation. NuTec’s patent-pending Riser Safety Valve technology aims to eliminate this problem. The valve is installed at approximate water level, and controls the gas influx as it rises towards the surface. When it’s set, the valve seals off the riser and allows the influx to exit, at a controlled rate, through vent openings. The valve is not designed for use while drilling.

50

energyinternationalquarterly.com | march/april 2011

Riser Safety Valve Around 100 feet below rig floor

vised offshore-drilling operations in the Gulf of Mexico for Exxon.

He resigned from Exxon in 1978 and started a consulting business working with independent oil companies. While supervising drilling operations all over the Gulf states, both on land and offshore, he gained considerable experience with deep, high-pressure wells.

Williams went on to identify areas where new equipment designs could enhance both safety and operational issues.

In 1991, Williams developed and patented equipment associated with deepwater-blowout preventers, and formed Nu-Tec. Through additional innovations and leadership, Nu-Tec has grown to be a top manufacturer and lessor of equipment used for testing sub-sea blowout preventers, as well as surface equipment. The company provides its services to more than 100 clients—including all major and independent oil companies and drilling contractors.

According to Williams, deepwater drilling and production will continue to provide energy necessary to the United States. “Safety issues associated with deepwater drilling and production are being constantly reviewed—and improved well designs, procedures, and practices are constantly being implemented. In addition, newly designed equipment will help to ensure safety,” he says.

The control of gas influx in a riser on a deepwater drilling rig and the expansion on that gas as it rises to the surface is essential to prevent another incident like the Deepwater Horizon explosion. This is one critical issue that Williams believes should be reviewed. It is what he calls, “Riser Control”—or control of gas influxes in a deepwater riser as that influx rises to the surface.

“I personally have had experience with gas influxes in a riser on deepwater drilling rigs during well-control operations—it is a very dangerous situation if not properly controlled,” he says.

“After the Deepwater Horizon incident, I developed and patented a Riser Safety Valve that is installed as part of the drill string.

It is lowered into the top of the riser and can control the gas expansion in a riser to prevent an explosion of gas and hydrocarbons as the gas rises to the surface in the riser.”

Williams notes that innovation has been Nu-Tec’s lifeblood.

“We are continually reviewing current equipment, operations, and procedures being used in the industry to improve them for both safety and economic reasons.” Since daily costs of drilling operations in deepwater can easily exceed $1 million per day, the team at Nu-Tec is constantly trying to improve efficiencies of operations and safety.

It is this overall willingness to address almost any issue, as well as Nu-Tec’s ability to move on problems and challenges quickly, that allows the company to succeed in the industry. In addition, its innovative spirit and ability to produce results definitively sets Nu-Tec apart from the crowd and its competitors.

The company’s short-term goals are to continue providing quality services and products to the industry while enhancing safety on rigs. “We are also continuing to develop new equipment and products for the industry,” Williams adds.

Williams believes that Nu-Tec’s success is a result of a strong staff that is focused on developing new ideas for the industry and supplying quality equipment quickly. “People are the heart of any business,” he says. “Ideas are essential, but staying focused and having dedicated employees are also very essential for success.” —christopher cussat

LEAD/N.D.T. Lead Non-Destructive Testing, L.L.C.

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51

TECHNOLOGY

It’s bi-directional

The wrench is reversable, and runs at full speed in both directions.

Industrial Strength

Fastorq’s high-tech bolting tools help to fortify equipment for clients in the oil, gas, and renewable-energy sectors

In the 1960s, recent Purdue University graduIt’s durable ate George A. Sturdevant landed a mechanicalThe tool is composed of engineering job with an industrial-equipment long-lasting stainless steel. manufacturer. He quickly began to dislike the firm’s practice of tightening bolts with a sledgehammer. “People were getting hurt,” says Sturdevant. “I thought there had to be a better way [to exert force] safely.”

Surdevant quit the engineering job to search for a method of achieving torque—or force with a tool—that didn’t involve sledgehammars. In 1972, How it Works: Spin-Torq Wrench he designed the first hydraulic-torque wrench.

The bi-directional Spin-Torq wrench is 36 times faster than conventional torq wrenches. It’s The success of the wrench established Sturpowered by a DC-motor and modulated by a computer, and can go either forward or in devant as an authority on bolting technology. reverse without switching the position of the tool.

In 1981, Sturdevant founded Fastorq. Today, the New Caney, Texas-based firm operates out of a new 25,000-square-foot facility just north of Houston, and pro- Wiesbeck says that divers are limited to the depths they can work in. vides its clients in the nuclear-, marine-, wind- and power-energy However, using Remote Operated Vehicles (ROV), their reach is almost industries with a complete line of bolting products and solutions. unlimited. Wiesbeck explains that all of the company’s tools, especialFastorq’s bi-directional Spin-Torq wrench is one of the firm’s most ly the double-zip stud tensioner, Spin-Torq, nut splitters, and flange innovative products. Spin-Torq is 36 times faster than conventional spreaders, can be used in depths of 10,000 feet with no problems. torque wrenches. Powered by a DC motor and modulated by a com- In addition to its work with the oil and gas industry, the firm has puter, the tool can go either forward or in reverse without switching recently turned its attention to the needs of the wind-turbine inthe position of the tool—a feature that’s not offered by any other low- dustry. Sturdevant explains that the wind sector is experiencing inprofile wrench. The wrench’s secret weapon is its zip-nut technology, credible growth: in the state of Kansas alone, more than 5,000 wind which allows threaded components to turbines of 1.5 to 2.5 megawatts each will be operational in the next attach and disengage automatically. two years. Fastorq’s wind turbine foundation tensioners use the same The firm’s products are often used to double-zip technology as its subsea products. fortify equipment on offshore drill- The product is easy to use. “Tensioners zip on, then zip off,” WiesAt a Glance ing sites, where oil-and-gas industry beck says. “They are fully automatic. When pressure is applied to the workers use Remote Operated Vehi- tensioner, the threaded segments automatically lock on the stud.” AcLocation: cles (ROVs) to assemble equipment at cording to Wiesbeck, a wind tower foundation stud can be tensioned New Caney, TX depths prohibitive to divers. in about 20 seconds, from start to finish.

Founded: 1981 Fastorq also recently developed dou- Fastorq’s wind energy business is on the rise, and Sturdevant Employees: ble-zip tensioners, which are used by thinks it will continue to expand. “We have been supplying products 11 many industries, most notably in the to the wind industry for only three years, but it already [accounts for] Specialty: construction of drilling equipment for 10 percent of our business,” he says. “We expect that to double in the Hydraulic, mechanical, the oil and gas industry. next year.” —tom calarco and pneumatic tools 52

energyinternationalquarterly.com | march/april 2011

TECHNOLOGY

Green Prix

As sustainability becomes more important to consumers, renewable energy products continue to grow in popularity. But how many “green” producers are educating buyers about what’s best for their lifestyles? According to Cisek, not many. He says that families often spend more than necessary on solar panels or other pricey green products for their homes.

“Our primary goal is to educate the consumer,” he says. “Someone can say [to his or her friends] ‘I was quoted for a 5.5-kilowatt solar system for my house from this one company, but Clean Green American did a site evaluation and showed me how I can do energy-efficiency If you’re a race-car fan, you may be familiar with Clean Green Network. The Phoenix-based firm, known primarily for providing re- upgrades for less than $1,000.’” newable energy products for the home, recently rolled out the Indy In Cisek’s mind, many people want solar panels because they are Health and Fitness Trailer. The trailer, which is powered by solar hip and often discussed in the media, but they would probably be panels and uses battery-assist and wind technology, LED lighting, and thrilled with the results of energy-saving light bulbs. “An average heat-resistant barriers, is the sport’s first carbon-neutral transport home using energy-efficiency products can easily reduce its electric trailer to be used in the United States. It provides racers with a place bill by at least 20 percent if not 40 percent,” he says. to receive care from doctors, athletic trainers, and physical therapists, Unlike many renewable-energy providers who focus on just one and provides transportation for up to two vehicles. After the trailer green product or system, Clean Green Network offers more than was unveiled at the Toyota Grand Prix of Long Beach, it ran an entire 1,000 different products, including electric bikes, light bulbs, and hydrogen cells. “We can go into somebody’s home and not only proweekend on sustainable energy.

“We’ve been getting an overwhelm- vide solar or wind but provide lighting systems, capacitor boxes, raing response from Indy car fans, and diant barriers, low-flow water faucets, and a variety of other gadgets other teams are really interested in greening the race-car operation,” says At a Glance Garrett Cisek, the firm’s managing director.

Location: Cisek says that the trailer’s solar arPhoenix, AZ Founded: ray is one of the first to ever be built 2006 on a semi rig. “There was a lot of engiEmployees: neering involved to make it road wor44 thy,” he says. “Our primary focus was Specialty: to show how durable and robust a solar Renewable-energy and energy-efficient array can be, and here’s a racing transproduct distribution porter that drives all over the country, Annual Sales: over 50,000 miles every year, in every $11 million weather scenario—snow, sleet, rain.”

Distributors: How it’S POWERED: Indy Health and Fitness Trailer The Indy Health and Fitness Trailer The trailer is powered by solar panels, and uses battery-assist and wind Clean Green American, Clean Green Nation is just one of the firm’s many projects. technology, LED lighting, and heat-resistant barriers.

Clean Green Network is helping to green both the racing circuit and individual homes

and gizmos that reduce the amount of electricity a home is using,” he says.

Cisek attributes his company’s success to its distributors. “We don’t market or advertise,” he explains. “All of our business comes from distributors who are out there spreading the word. They are the backbone of our company.”

As the backbone of the company, the distributors at Clean Green Network are living out the company’s vision of bettering the environment while also educating the consumer on energy and sustainability. As the company’s mission statement says, “There is a culture here at Clean Green Network that emphasizes humanity and responsibility.

We believe we hold a deep responsibility to enhance and encourage a healthy, vibrant environment and ecology.” —by kelly matlock

energyinternationalquarterly.com | march/april 2011

53

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TECHNOLOGY

Proceed With Caution

Eric Hesher took his time growing Renewable Energy Systems— and, three years later, his prudence continues to pay off Eric Hesher’s interest in renewable energy was established at a young age— he dabbled in constructing rudimenAt a Glance tary solar-energy systems before he Location: ever enrolled in his first mechanicalAvilla, IN engineering course at Purdue UniverFounded: sity. Then he spent 15 years working on 2008 product development for the automoEmployees: tive and heavy-duty markets, and even2 FT, 3 PT Specialty: tually completed his MBA. Engineering and In 2008, Hesher turned his attenProgram Management tion back to energy: he founded Indiana-based Renewable Energy Systems, a firm that designs and installs energy-generating systems for homes, businesses, and schools in southern Michigan, western Ohio, and Indiana. According to Hesher, the growing need for renewable energy meant the time was right. So he researched systems and suppliers, self-financed the business, and began to proceed—with caution.

“I’m a pretty cautious person,” Hesher says, “and I wanted to go slow, learn carefully. That first year of business we really got a feel for our abilities—we did one solar installation, a couple wind turbines.

Since then, though, our growth has been exponential.”

In the first half of 2010, Hesher and his employees discovered a niche: renewable energy systems for schools. RES is currently completing an education project in Indianapolis that involves five 2.5-kilowatt wind turbines. The firm is also an exclusive dealer of Texas-based Home Energy Americas products, including turbines, solar panels, heat tubes, biomass furnaces, and electric vehicle charging systems—a product range that provides RES with an advantage over competitors.

“That flexibility allows us to provide better service for our customers,” Hesher explains. For example, a client may have a small-scale wind-energy system in mind—but if RES gets to the site and determines the wind supply is insufficient, the firm can instead design a better strategy. “Determining a customer’s needs,” he continues, “is by far the most important factor in the design process, in terms of evaluating what pay-

back can realistically be expected. We have to be willing to walk away from a client if it doesn’t make financial sense to install what they were anticipating.”

And that’s frustrating, particularly because there are so many new developments to be explored, like HEA’s EnergyBall (pictured below).

Solar-heat tubes also offer great value for the customer, and Hesher says that RES looks forward to installing more of those in the future.

In fact, to better reach the Midwest masses, RES is in the planning stages of constructing a site in northern Indiana that displays the full menu of the firm’s energy-generating offerings. Details are still under wraps, but Hesher hopes the exposure will help potential customers understand what is to be gained with the available systems.

“It should allow people to better understand how the systems work,” he says. “And how well they work.”

Once the individual system is designed, RES works with the local utilities and agencies to develop a site plan. The firm provides full installation and—while most systems are designed to be servicefree—any follow-up service that may be required. The lack of energy standards in the United States, though, is one of biggest challenges the firm faces. Hesher says that a given system might not make sense for one customer, while for another across town, it will.

In other words, each project has its own red tape. And while RES hasn’t yet encountered any major bureaucratic hurdles, the effort required by that system is a costly one. “Ultimately, of course,” Hesher notes, “the customer pays for it in the end.” —annie fischer

How it Works: EnergyBall

The EnergyBall is a spherical wind turbine with six curved blades attached at both ends to a rotor hub. Unlike traditional turbines, the EnergyBall creates a wind pattern that converges and accelerates through the rotor, which translates into higher aerodynamic efficiency. The turbine, which operates quietly, connects directly to the grid via an inverter—making it ideal for smallscale energy projects and good for both residential and commercial use.

BRAIN POWER RES installed five EnergyBalls on the campus of an Indianapolis charter school.

56

energyinternationalquarterly.com | march/april 2011

TECHNOLOGY

TECHNOLOGY

In Hot Water

Cinco Solar distributes, designs, and manufactures solar-powered water-heating systems

Hollis Fitch knows the energy biz: he spent the first seventeen years of his career in the oil industry. A few It’s versatile years ago, while working as a project manager on an offCinco distributes shore oil platform in Singapore, he began researching an Thermo Technologies’ alternative energy source. evacuated heat pipe tubes; lightweight and “I don’t know why, but I clicked on the Internet to look modular, they can be up solar power,” he says. “I was fascinated to see what had installed on almost happened in the fifteen years since I had last [researched any building. the topic].”

He started collecting information in a folder—taking note of the best solar panels, inverters, and water heaters—because he wanted to build a solar-powered home for himself in the San Antonio area. Fitch realized there was potential to turn his research into a business, and in 2007, he founded Cinco Solar.

How it Works: Thermomax CS-40 Thermo Technologies’ CS-40 solar collector is a “dry” heat pipe (1), containing In just three years, the firm has engineered three of evaporator fluid and condensate, which is attached to the back of an absorber plate the nation’s largest evacuated-tube-solar water-heating (2) within an evacuated glass tube (3). Vapor rises to the condenser bulb (4) at the systems. Fitch says that evacuated-tube collectors, which top of the heat pipe and the condenser bulb releases the latent heat of evaporation transfer solar energy into hot water, are a largely underinto the manifold, passing through a flexible connector (5). Due to the dry manifold appreciated component of the solar-thermal industry— connection, the CS-40 evacuated tubes can be replaced without the need to drain down the solar system. The absorber support clips (6) and end support (7) secure though approximately $35 billion a year is spent on makthe technology. ing hot water.

“People don’t realize that the single largest consumer of energy is commercial buildings, and it’s because of the f g a s h d j hot-water needs rather than electrical needs,” he says.

Since its inception, Cinco Solar and its twelve employees have had many triumphs, starting with its first project, the Army Residence Community in San Antonio, which was the recipient of the City of San Antonio’s prestigious Bill Sinkin Solar Technology Award. The success ning Thermomax solar-thermal-evacuated tubes. In April, Fitch flew of that project gave the company the experience to bid on their next project, the Bexar County Adult Detention Center, which in turn en- to Ireland to ink a deal; Cinco Solar is now the primary commercial abled them to bid on (and win) another project: the Norman Hacker- distributor of Kingspan solar-thermal collectors in the US. It’s a huge man science-building at the University of Texas. Cinco Solar’s instal- deal for Cinco Solar. “We’re going from being a fairly big local player to a national one,” says Fitch. The company spent much of fall 2010 lations are supplying up to 80 percent training and introducing the product around the country. of the hot-water demand for these facilities. Fitch attributes some of Cin- And though distribution accounts for 50 percent of the business co’s success to Bexar County. “Another (design and installation accounts for 40 percent, and manufacturing At a Glance accounts for the rest), the Kingspan deal hasn’t kept Cinco Solar from county might not have chosen to spend growing in all areas. “We’ve been designing and bidding on other a million dollars on a solar system for Location: projects, as well,” Fitch says. “Most of the focus is on large, institutheir jail,” he says, adding that people San Antonio, TX tional-type projects.” The firm has been working with the military on don’t give San Antonio enough credit Founded: 2007 a number of military base projects, and projects on a few American for its green initiatives.

Employees: embassies around the world.

These three projects were enough 12

“[There has been] a huge change over the past ten years in the pubto gain the attention of Kingspan ReSpecialty: lic’s awareness of solar [possibilities],” Fitch says. “I’m very optimistic newables, a Portadown, Ireland-based Evacuated-tube-solar and encouraged by the response we’ve gotten.” —carolyn dorant firm known for producing award-winwater-heating systems energyinternationalquarterly.com | march/april 2011

57

MANUFACTURER

C INCOSOLAR INCORPORATED

Kingspan

Energy International Quarterly

SOLAR

Cinco Solar, Inc. uses state-of-the-art evacuated tube technology to provide practical, complete solar thermal water heating solutions for large-scale commercial, institutional and industrial applications.

Services include: Sales & Distribution, Design & Engineering, Installation, Project Management Cinco Solar’s solar water heating systems are a natural fit to provide a renewable source of hot water for any facility or process that uses large amounts of hot water. Applications include, but are not limited to, domestic hot water, process heat, building heating and AC dehumidification and reheat. Properly sized, Cinco Solar’s solar thermal systems can eliminate up to 80% of the energy costs associated with producing hot water.

www.cincosolar.com info@cincosolar.com | 830.885.5110

Subscribe to EIQ and be connected to industry leaders across the world through a showcase of the best practices in the constantly changing energy market. Energy International Quarterly remains a reliable source for innovative features and comprehensive profiles that look to the future of power.

Subscriptions are FREE for industry professionals.

Sign up today at EnergyInternationalQuarterly.com

Turbine Repairs and Replacement Parts:

All from a single source.

Allied Power Group offers expedited, high-quality repairs of Industrial Gas Turbine hot gas path and combustion components, with extensive experience through F-Class equipment. Capabilities include GE Frame 3,5,6,7B/E/EA, 7F-FA/FA+e buckets, nozzles, shroud blocks, transition pieces, combustion liners, flow sleeves, compressor stators and more, as well as Siemens (Westinghouse) W501AA-D5A, W501F blades, vanes, ring segments, transitions, baskets, clamshells and more.

Allied Power Group also maintains a vast inventory of replacement components. With flexible options like exchange and loaner programs, consignment, sales, and inventory management, Allied Power Group is your one-stop-shop.

Office: 281.720.1324 | Cell: 713.775.1738 | kmoore@alliedpg.com Visit us at www.alliedpg.com

Product names, logos, brands and other trademarks mentioned herein are the property of their respective trademark holders. These trademark holders are not affiliated with Allied Power Group, nor do they endorse any of the products, services or methods supplied or used by Allied Power Group.

field notes

NEW DIGS The combustion and blade/

bucket repair line in APG’s new IGT Repair Shop includes a F7FA full wheel for bucket dimensional inspection.

Bucking the Trend The global recession left many firms reeling, but Allied Power Group boasts increasing revenue and a growing roster of employees

D

ue to the global recession, many companies have seen their revenues decrease—but not Allied Power Group (APG). Instead, APG boasts steadily increasing sales and an expanded menu of offerings. The firm’s success is the product of its commitment to providing excellent service. “I like to think I’ve picked the best and the brightest, and put together a really good team,” says Keith Marler, president of APG. “We attack our problems as a family, come up with solutions for our customer, and get the work done and out the door.”

Marler has more than two decades of industry experience. He began his career as a sandblaster at a turbine shop, and later worked in engineering for Preco. From those experiences, Marler handpicked the best practices and strategies, and implemented them at APG. “What makes us different is our service,” he says. “Being privately held gives

us a lot of flexibility to provide the customers with what they need.” As a result, APG is able to offer fast turnaround and flexible pricing.

APG started as a specialized repair shop, working exclusively on turbine buckets and blades. As the company grew, it expanded its repair services and parts product lines. Last year, the addition of a machine shop in Houston, Texas, greatly expanded its efficiency and capabilities. The new facility is a one-stop shop for repairs and parts. It specializes in the repair of industrial gas turbine (IGT) components, and has one of the largest inventories of Westinghouse and GE components. Customers can look to this facility for all of their repairs. energyinternationalquarterly.com | march/april 2011

59

30

2009

Location: Houston, TX Founded: 2000 Employees: 102 Specialty: Gas & steam turbine component parts/repair

20

2008 2007

REVENUE (IN MILLIONS)

At a Glance

25

15

10

2006

#645

#590

Growing Fast Each year since 2006, the firm has been ranked on Inc.’s list of the 5000 fastest-growing private companies in the United States. Now, it hopes to expand into the international market, particularly Asia, Europe, and South America. Here’s a look at how APG has grown over the last few years.

#378

2005 Not Ranked

5

0

#2,265

NUMBER OF EMPLOYEES 20

30

40

Marler believes APG has been successful, and experienced rapid revenue growth, because it has introduced many different services and product lines. He also finds his line of business to be immune to the economic climate. Even in a downturn, electric service is a necessity, and one of the last things a household will do without. Marler did notice a decrease in power-plant repair projects, but says APG compensated for this through expansion, and, despite a slow economy, experienced unprecedented growth.

The company also attributes its success to the growth of the natural-gas sector. Numerous facilities were built over the last decade,

50

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70

80

90

and a recent dip in natural-gas prices resulted in a boon for APG. “It is actually better for us when natural-gas prices go down, because it becomes cheaper to run the turbines [in gas-fired power plants]” Marler says. “When they make more profit, they repair more.”

Marler is confident that gas-fired generation will have a bright future. He says that gas turbines “generate more power in less space,” and leave a relatively small carbon footprint. “Because gas turbines are the most efficient and environmentally friendly, [gas] will continue to be a favored [method of] power generation,” he says. —sarah lozanova

FIEld Notes

ASM-American Surface Modifications, a Limited Liability Company was formed to offer coating services of exceptional quality at a competitive cost, while meeting customer’s delivery requirements.

Coatings, Technology, Solutions • hvof (high velocity oxy-fuel) • plasma spray ASM partners are internationally recognized experts in all of the processes related to coatings and surface modifications.

They are continually forming joint partnerships with independent suppliers and vendors to strengthen the portfolio of services. The technical staff of five have between them over 125 years of experience in coatings, surface modifications, and heat treating. It encompasses the latest technologies in surface enhancement and engineering.

• wire arc spray • heat treatment • shot peen • specialized coatings • alumnizing

Situated on the South side of Houston, CTS - Texas is ideally located in the heart of the Turbine Repair Capital of America. Initially established to provide service for the local Gas Turbine Component Repair companies, CTS - Texas has grown to support various Energy, Oil & Gas, Marine, Chemical, Commercial, and Aerospace customers located not only in Houston but throughout the United States from New York to California.

American Surface Modification, LLC 8712 Antelope Dr., Houston, TX 77063 P: (713) 975-1330 | F: (713) 975-0069 www.asm-llc.com

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energyinternationalquarterly.com | march/april 2011

100

cts texas | 4011 Chance Lane, Rosharon, TX 77583 P: (281) 431-1629 | F: (281) 431-2179 | www.cts-inc.net

FIEld Notes

Spin doctors

At a Glance

Gulf Coast Centrifuge’s products use radial motion to separate solids from drilling fluid

R

materials are kept inside the machine, providing maximum clarity and dryness (the SD-5000); and optimal-efficiency versions manufactured from stainless steel that can process more than 170 gallons per minute (the SD-4800).

In addition to the centrifuges, the GCC product line also includes shakers (which use the most powerful vibrators available in the industry, according to the company’s website), variablefrequency drives (enclosed devices that control motor speed by controlling the frequency of power to the motor), and tungsten carbide tiles (wear-resistant surface material for centrifuge conveyers). GCC has the capabilities to custom-design and -build all of this equipment, given a customer’s specifications.

Due to this sizeable menu of offerings, GCC’s business climate continues to improve, as evidenced by a recent acquisition in Oklahoma that should bring in another $1.5 million annually. Johnson points to the company’s customer service as one of the major drivers of its success, and says most work comes from repeat clients. According to him, bigger companies often won’t take time for smaller customers (ones buying 30 or 40 centrifuges), and some repair teams refuse to rebuild another company’s equipment. GCC, on the other hand, completes turnkey repairs in its own workshop facility. There, team members’ superior knowledge enables them to improve performance and reduce future rebuilding costs—regardless of the manufacturer.

“We’re all in competition,” says Johnson. “I’ll do anybody’s equipment—I can fix their machines as well as I can fix mine. It’s all about making money.” —annie fischer

icky Johnson lost his job in 2003 and, rather than join up with another corporation, chose to use his 30 years of industry experience to start his own equipment-manufacturing company, selling and renting centrifuges. Eight years later, his choice seems to have paid off: Magnolia, Texas-based Gulf Coast Centrifuge employs 17 staffers, banks $3 million annually, and operates in an 18,000-square-foot facility that includes welding, machine, and mechanical shops. “The economy hurt us pretty bad,” Johnson admits. “I didn’t lay anybody off, though—mainly just used that time to build inventory.”

The bulk of that inventory is GCC’s centrifuge line. A centrifuge is a device that separates dense materials from lighter ones—removing solids from drilling fluids, for example. The equipment, driven by an electric motor, works using the sedimentation principle, where centripetal acceleration forces the material to rotate perpendicularly around a fixed axis. The liquid/solid mixture (the slurry) enters the centrifuge through a feed tube and moves into the feed distribution chamber, which accelerates the speed of the slurry before it enters the bowl. In the bowl, the solids separate from the liquid and settle against the wall, while the clarified liquid flows out; the longer the material remains in the machine, the dryer the solid (the cake) will be. Centrifuges such as these are often used in oil-drilling operations for the recovery of barite, the removal or reduction of solids, and/or to control the density or viscosity—elements that each influence or guarantee the character of the drilling fluid.

GCC offers design, construction, repair and rental of centrifuges in five sizes, ranging from the smallest, the SD-2800 (used mostly in environmental waste management), to the largest, the SD-7200 (primarily recommended for heavy industrial operations). “The smaller ones are used a lot in the oil fields,” Johnson says, “whereas the big ones are the ones we SHAKE IT UP sell to, say, PPG Chemical.”

Gulf Coast Centri The rest of the line’s highfuge builds and sells shakers, like the new speed, high-volume decanting Dryer-Shaker package centrifuges—ones in which pictured here. The no screen is used to separate company uses the most powerful vibraliquids from solids, unlike filtors available in the tering centrifuges—includes industry. equipment specially designed for removing fine solids from high-density fluids (the SD4000); bowls with extra length to extend the length of time

Location: Magnolia, TX Founded: 2003 Employees: 17 Specialty: Centrifuge manufacturing Annual Revenue: $3 million

energyinternationalquarterly.com | march/april 2011

61

Service and

Commitment CTG Inc. is a custom rubber and plastic manufacturer specializing in the machining and molding of a variety of plastic and rubber materials. For nearly 25 years, we have been creating partnerships between ourselves and our customers through innovative problem-solving solutions.

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So the next time you are looking for quick responses, reasonable lead times and solutions to your difficult sealing opportunities, look no further than CTG Inc. We welcome the opportunity to talk futher with you.

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8819 Emmott Rd • Houston, TX • 800 -299-1683 web: www.ctgasket.com • email: ctgsales@ctgasket.com

SPREADING THE WORD Hellman designed the booth, videos, and materials for the DMI/Aevenia/Ottertail Power booth at WindPower 2010.

CAMPAIGNS FOR CLEAN TECH For a marketing and ad agency, Hellman occupies an unusual niche—the energy sector FIEld Notes

M

any advertising firms focus on consumer products and services— think food items, pharmaceuticals, spirits, and even insurance.

But Phil Akin, CEO of Hellman, an Iowa-based marketing and advertising agency, says his firm is devoted to its clients in the energy industry—and he doesn’t think it’s a bit unusual.

“Companies need to communicate with their customers about why they’re investing in these technologies,” he says. “These are rather complicated subjects that require big investments, and people need to understand what’s happening with their money.”

“Hellman was the first marketing and communications company to join the American Wind Energy Association (AWEA), and the firm has spent the past 10 years establishing the role of advertising and marketing for the energy industry. Recently, Hellman, a small business, has also solidified a subcontract with the Alliance for Sustainable Energy, LLC, managing and operating contractor of the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL). This laboratory is the nation’s primary source for renewable energy and energy efficiency research and development. The Alliance/NREL mission and strategy are focused on advancing the U.S. Department of Energy’s and the nation’s energy goals. Hellman will develop Web-related communications and provide video production services to assist in accomplishing these goals.

“That’s a big deal for us,” Akin says of the subcontract. Especially, he insists, since Hellman’s involvement with the energy sector was kind of an accident. In 1999, Waverly Light and Power installed the first wind turbine in Iowa, and they needed help explaining the benefits of wind power to the residents of Waverly. Hellman, which is based in Waterloo, Iowa, was near enough—and experienced enough— to deliver the message.

“We developed a campaign that helped them explain wind energy and why [the town] should become a part of it,” Akin says. “Over time, other utilities asked us to do the same kinds of things.” A new department at Hellman was born.

Next, the firm began working with component manufacturers. Today, Hellman boasts a roster of clients that includes General Electric, Alliant Energy, DMI, and Aevenia. These are, of course, not Hellman’s only accounts. Akin explains that the agency is involved in five industries—automotive aftermarket, agriculture, healthcare, industrial manufacturing, and energy. “Energy is by far the fastest

growing part of our portfolio, and that’s where our focus is,” he says.

The focus on energy is an organic shift for the firm, which has been in business for almost forty-five years. When Akin joined Hellman in 2005 as CEO, he evaluated all of the accounts. “[I] said we need to emphasize just two categories—renewable energy and healthcare,” he says. “I thougt these were areas for growth and would position us for growth, especially in Iowa, which was developing a lot of energy.” The decision was a wise one: “it was good timing and I guess [we had] a little bit of intuition that those areas were going to grow,” Akin says.

Iowa was an ideal setting for an agency looking to get involved in clean tech. “Iowa has the second-highest number of wind towers in the United States, behind Texas. A year and a half ago [we] surpassed California. Five years ago, Iowa was not even on the map, and in the last year and a half, Iowa [has surpassed a lot of other states],” Akin explains. Though Hellman was responsible for the Waverly Light & At a Glance Power campaign that built support for Iowa’s first wind turbine, Akin is modLocations: est about the firm’s part in transforming Waterloo, IA Iowa’s landscape—“we’re not responsible St. Paul, MN Founded: for [it], but we have played a part in [es1967 tablishing] Iowa as a renewable state.

Employees: We’ve certainly given [Iowa] a lot of hype,” 40 he says.

Specialty: In the future, Akin hopes that Hellman Advertising campaigns for the energy and will continue to build on the momentum healthcare sectors of its first 10 years in energy marketing.

Hoping to add blade manufacturers to the wind section of its energy portfolio, Akin says that Hellman is committed to educating its staff on solar energy.

And he’s happy to be the CEO of a company that’s helping spread the word about renewable energy. “We help a company become known to the industry, we help them package up and communicate, which helps them grow, which helps them add more jobs, [and] the fact that they developed that technology leads to a cleaner and more efficient solution, and that helps everybody,” he says. “It’s all very positive.”

—carolyn dorant energyinternationalquarterly.com | march/april 2011

63

At a Glance

The Launch Pad Clean Energy Incubator helps start-ups bring new technologies to market

Location: Austin, TX Founded: 1989 Employees: 10 Speciality: Clean Technology Partners: University of Texas, City of Austin, Austin Energy

C

M

Y

CM

MY

I

FIEld Notes

CY

CMY

K

n the late 1980s, the economy in Austin, Texas, was largely based on academia and state government. When two major research consortiums, Sematch and Microelectronics and Computer Technology Corporation (MCC), moved to Austin, it helped establish the city as a hub for technology.

Today, high-tech firms such as Samsung, IBM, Dell, AMD, Intel Corporation, Freescale Semiconductor, and Applied Materials all have operations in Austin.

Dr. George Kozmetsky, founder of the Austin Technology Incubator (ATI), has also played a part in ramping up the city’s tech focus. He founded ATI in 1989 with a vision for sustainable economic development in Austin. As the dean of the business school at the University of Texas, he had his finger on the pulse of the economic activity in Central Texas.

“George thought it was important to supplement those high-tech developments with an entrepreneurial community because it wasn’t just the big companies that were going to succeed,” says Mitch Jacobson, co-director of ATI’s Clean Energy Incubator (CEI). “It was going to be companies that were spun out of these companies or grown from the bottom up that were going to create a sustainable, positive impact for Austin. ATI was born to help companies get off the ground.”

Over the past two decades, ATI has worked with thousands of early-stage technology companies. The organization has graduated 275 viable companies through its program, boosting each start-up’s chance at success by providing strategic counsel, operational guidance, a network for finding talented employees, and investment capital opportunities. As a nonprofit organization under the um-

starting up As these seven start-ups develop, CEI is providing resources— such as operational guidance, networking opportunities, and financial advising—that boost their chances at success.

64

brella of the University of Texas, ATI has raised more than $800 million in investment capital for member companies and created a wealth of opportunities for the university community.

The organization has four divisions— bioscience, clean energy, information technology, and wireless—and its’ programs are funded by the University of Texas, the City of Austin, Austin Energy, the State Energy Conservation Office, and its own member fees.

Austin is a particularly good environment for a technology-and research-focused organization: the community has access to the tremendous intellectual wealth of the University of Texas. The Central Texas community and University of Texas professors and researchers generate the ideas and products behind the member companies.

Through paid internships or for college credit opportunities, participating college students gain real-world experience and get their foot in the door at innovative companies. “The city sees us as an economic development organization because we’re creating jobs,” says Jacobson. “Today, there’s nothing more pressing on people’s minds than job creation.”

CEI brings together many of the ingredients that help new companies thrive. Jacobson says that because CEI harnesses the support of academia, government, and the local business community, its’ affiliates have a greater chance at success. “Our model really works,” he says. “Starting a brand-new business is a very difficult and risky venture—most companies don’t make it. Anything we can do to harness the support of the University of Texas, the City of

Start-up: CMNA Power

Start-up: Trinity Thermal Systems

Start-up: International

The Project: High-altitude turbines

The Project: Patented IceCycle tech-

Brucite Corporation

(900–1,200 feet) make use of stron-

nology stores energy during off hours,

The Project: Water purification sys-

ger and more consistent wind currents.

and distributes it during peak periods.

tems and recycling conserve H20.

Learn more: cmnapower.com

Learn more: trinity-thermal.com

Learn more: ati.utexas.edu

energyinternationalquarterly.com | march/april 2011

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Austin

•

Dallas

•

Houston FIEld Notes

“ATI was born to help companies get off the ground.” Mitch Jacobson, co-director

Austin, and the Chamber of Commerce, companies have the likelihood to be much more successful.”

Member companies of the CEI span many sectors, including thermal energy storage, LED lights, energy-efficiency products, innovative inverters for solar- and wind-energy production, high-altitude wind generators, power-storage products, Internet-based irrigation systems, and water-purification and recycling products. “We don’t work with science projects that are still in the lab,” Jacobson says. “The companies at least have the idea down on paper, or in most cases are in the prototype stage.”

Jacobson sees clean energy as a dynamic industry with numerous opportunities for innovation, especially in the clean coal, car-

bon capture, battery, biofuels, energy efficiency, electric transportation, and energy storage technologies sectors.

“To reduce our carbon footprint and dependence on coal, we need to bring down the cost of renewable resources like wind, solar, hydropower, and geothermal-energy sources and look to new technologies that will bring down our foreign oil consumptions, as we increase use of technologies, such as electric vehicles and biofuels,” he says. —sarah lozanova

Start-up: Ideal Power Converters

Start-up: FireFly

Start-up: Kirkwood Labs

Start-up: Solavicta

The Project: Lightweight, cost-effi-

The Project: Replacing incandescent

The Project: Energy-monitoring sys-

The Project: This firm is developing a

cient solar inverters are cheaper and

and fluorescent bulbs with Smart LED

tem allows residential and commercial

solar technology that’s manufactured

lighter than conventional models.

bulbs reduces energy costs by 90%.

users to monitor energy consumption.

at just 50 cents/watt.

Learn more: idealpowerconverters.com

Learn more: fireflyledlight.com

Learn more: kirkwood-labs.com

Learn more: ati.utexas.edu

energyinternationalquarterly.com | march/april 2011

65

A look ahead

DiD YOU KNOW? For each additional meter in height, a turbine’s revenue increases by one percent.

Rethinking Turbine Towers

Frustrated by the limitations of steel wind turbine towers, Timber Tower cofounder Gregor Prass designed a more efficient wooden model. EIQ took a peek at his new design—currently in its pilot phase.

Ten years ago, Timber Tower cofounder Gregor Prass was at the helm of a German engineering firm that turned out 85-meter tubular steel towers for wind turbines—and he was frustrated with the limitations of building with steel. It was difficult and costly to transport the large one-piece towers, and tower height was restricted by logistics: each tower had to be shorter than 100 meters, or it would be too large in diameter to fit under overpasses. Prass decided it was time for a redesign.

In 2005, he began to design a new type of tower, composed of laminate wood panels. For easy transportation, the towers are manufactured in small pieces and assembled on-site. The towers are also eco-conscious—each is carbon neutral after four months and, after it reaches its lifespan of 20 years, the lumber can be recycled. In 2008, Prass cofounded Timber Tower; the Hanover, Germany-based firm aims to produce and market his design. The Timber Tower is still in its pilot stages, but in theory, wooden towers will reach up to 200 meters in height, and, for example, can be topped with a 1.5 MW wind turbine.

In late 2010, the firm successfully constructed its first smallscale test tower, and at press time, was gearing up to build its first full-scale prototype at the University of Hanover in Hanover, Germany. “We hope to erect up to 10 towers in 2011,” says Holger Giebel, the firm’s CEO. “We’re in talks with some major producers of wind turbines, and we hope to sign a contract with one of them soon.” —bridget herman

how it’s made Production

The laminated wood panels (see below) are currently produced by different suppliers in Germany and Austria. According to Giebel, Timber Tower hopes to debut its own production facility in 2012.

Transportation

Conventional-sized trucks can transport the components of a Timber Tower directly to a site.

Construction

Holzbau Cordes, a Rotenburg, Germanybased firm that specializes in the assembly of wooden roller coasters, assembles the Timber Towers on-site.

A CLOSER LOOK That’s no ordinary windturbine tower. This photo montage shows a completed Timber Tower topped with a Vensys turbine.

Photo: Carlos Arias Enciso

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energyinternationalquarterly.com | march/april 2011

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