Energy International Quarterly, #12

Energy International Quarterly

may/june 2011 vol. 3, issue 12

nucleaR comeback Southern Company breaks ground on two new nuclear facilities

solar impulse

Forget jet fuel—this plane is powered by the sun, p.30

Lighting the way

NALMCO members, including GE Lighting, on the benefits of joining the association, p.44

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Features 30 Defying Gravity Bertrand Piccard and André Borschberg, the two men at the helm of the Solar Impulse project, are planning to pilot a solar airplane around the world.

Their work just might change the way we look at fuel consumption.

38 Nuclear Comeback Proponents have long labeled nuclear energy as a boundless supply of green power, but high costs and safety concerns have slowed its growth in the United States—until recently.

44 Guiding Light In an effort to better serve lighting-industry professionals, The International Association of Lighting Management Companies (NALMCO) has modernized its image. EIQ’s profile of the organization and three of its member companies paints a clear picture: energy efficiency is the new standard.

new nukes Southern Company’s Vogtle plant, located near Waynesboro, GA, is already equipped with two nuclear reactors; two more are under construction.

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energyinternationalquarterly.com | may/june 2011

Contents



In Every Issue 6 Editor’s Note 9 Pipeline 14 1,000 Words 16 Viewpoint 66 A Look Ahead

Departments Introducing 18 Building a Biomass Empire

Enviva’s CEO, John Keppler, spoke with EIQ about the firm’s new name and its exciting new acquisitions.

Global Scope 20 Looking to Greener Pastures

American Electric Technology, Inc. has expanded beyond its traditional markets to explore the world of renewable energy.

11

zero emissions Mary Beth Stanek of General Motors talks about GM’s zero-emmissions fuel-cell cars.

26

FULLY CHARGED FastCAP Systems Inc.’s carbon-nanotube technology will revolutionize rechargeable batteries.

Technology 23 until now

Canada Control Works Inc. is updating the oil-and-gas industry’s above-ground drilling practices, which have long been outdated.

26 Staying Power

Dr. Riccardo Signorelli, CEO of FastCAP Systems Inc., believes his take on rechargeable batteries will change the future of hybrid cars.

Field Notes 56 An Unlikely Duo

When salesman Josh Mitten met Amish business owner Elam Beiler, the two forged an unlikely—but profitable— partnership.

58 The Turbine In My Backyard

64

breaking ground Superior Well Services has helped to develop the hydraulic-fracturing process.

Renewable Energy SD helps clients to take control of their own power supply.

60 100 Years Strong

For nearly 10 decades, Richardson-Wayland Electrical Company has provided stellar service.

62 Playing It Safe

Northern Clearing Inc. is committed to protecting both its employees and the natural environment.

64 Reaching Further Armed with patented advancements in hydraulic fracturing, Superior Well Services helps its clients extract oil and gas from hard-to-reach reserves.

energyinternationalquarterly.com | may/june 2011

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editor’s note

To go nuclear or not to go nuclear—that is the ques-

tion. For half of a century, power companies and environmentalists have been in a tug of war over this topic. What is most amusing about their debate is that they’ve switched sides. At first, nuclear was a costeffective large-scale energy source that power companies wanted to capitalize on, but environmentalists wanted to put the kibosh on, fearing the pollution of nuclear waste or worse: a nuclear holocaust. Now, when environmentalists see nuclear energy as a vehicle to end global warming (even Patrick Moore, one of the founders of Greenpeace, has joined the nuclear bandwagon), it’s the energy companies that are halting nuclear power-plant construction, citing economic burdens.

Except one project. In Waynesboro, Georgia, Southern Company is building two new units at its Vogtle nuclear power plant, a project that is slated to be the first new US nuclear development in more than 30 years, partially funded by the US government’s first successful nuclear-related loan. Learn more about what makes this project forge ahead while so many others have been paused in this issue’s cover story, “Nuclear Comeback” (p. 38).

Compared to the great nuclear-energy debate, other energy solutions aren’t as disputable. One such solution comes in the form of an aircraft outfitted with solar panels across its wings. Dubbed “Solar Impulse,” the plane is, to quote the great aviator and innovator Howard Hughes, “The way of the future.” In 2013, Solar Impulse will embark on a flight around the world powered entirely by the energy it harnesses from the sun’s rays. The beauty of this futuristic energy solution is that, as its co-creator Bertrand Piccard states, it utilizes the “technology of today, not the technology of tomorrow.” Read on about this technological advancement and the brilliant minds behind it on p. 30.

Do you have a new technology or innovation that you’d like to see in Energy International Quarterly? Let me know! Send information on your innovation to kathy@bgandh.com.

Until next issue,

Kathy Kidwell Managing Editor 6

energyinternationalquarterly.com | may/june 2011

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PipElINe Cashing in on Conservation

A California agricultural organization is offering financial incentives to customers who cut energy use

E

lectric utilities are getting creative about energy conservation. Incentive programs that aim to reduce stress on the electric grid during peak times—like hot summer afternoons—are gaining popularity.

In California, for example, PG&E and Southern California Edison are teaming up with energy aggregates to throw incentive dollars at large power users who reduce energy intake during peak periods. Incentive programs reduce the likelihood of blackouts and minimize the need for new power plants and transmission lines.

Now, the incentive trend is making its way to energy users in the agriculture industry— where both energy and water conservation have long been concerns.

In December of 2010, Peak Energy Agriculture Rewards (PEAR) program’s customers—mostly Fresno, California-based agriculture-industry firms with irrigation pumps, cold-storage facilities, and process plants— received thousands of reward dollars for cutting back on their use of electricity during pre-determined days and times. In 2011, the program has plans for doling out more than $5 million in various incentives.

The PEAR program also supplies customers with free devices that allow farmers to measure their energy output. The web-towireless equipment, designed by M2M Communications, controls the output of irrigation

tech savvy The PEAR program equips irrigation pumps with technology that measures energy usage.

energyinternationalquarterly.com | may/june 2011

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pumps and measures the pump’s water pressure and flow rate.

“Growers can receive more than $5,000 per year for shutting down one 250-horsepower pump for a small number of hours,” says Nic Stover, PEAR’s program manager. “Plus, [through the PEAR program] they can get about $20,000 of equipment at no charge.”

As an added benefit, PEAR aims to protect customers from Peak Day Pricing (PDP), a program that can ramp up electricity costs. At pdpanswers.com, potential PEAR clients determine if they’ll be subject to a hike in rates—and find out more about PEAR or other similar programs. EIQ

regional news

PipElINe

Spray-on Solar

regional news

Say Aloha to Clean Energy

The State of Hawaii partners with Keahole Solar Power, LLC to create a 5 MW solar-energy project Kalaeloa, HI. Keahole Solar Power, LLC, Power’s board of directors, the project will is teaming up with the Department of Ha- support the Hawaiian economy by creating waiian Home Lands (DHHL) to build Ha- several hundred local jobs. waii’s largest concentrated solar-power proj“DHHL is committed to helping Hawaii ect. The 5 MW project, called “Kalaeloa Solar reach its clean-energy goals,” Lui says. The One,” is DHHL’s first renewstate aims to source 70 perable initiative. Kaulana H. cent of its power from clean R. Park, chairman of the sources by 2030: 40 perHawaiian Homes Commiscent from renewables, and sion, says the partnership 30 percent from efficiency is a result of the DHHL’s measures. “This project is PORTION OF ITS TOTAL support of the Lingle-Aiona a major step, as it [will be] POWER THAT HAWAII AIMS Administration’s Hawaii the largest solar project in TO OBTAIN FROM CLEAN Clean Energy Initiative.

Hawaii and the first largeSOURCES BY 2030 According to Edward Lui, scale solar project on the a member of Keahole Solar island of Oahu.” EIQ

70%

holaniku project This 2 MW solar thermal project by Keahole Solar powers up to 500 homes a year.

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energyinternationalquarterly.com | may/june 2011

SolarWindow’s patent-pending spray-on coating can generate energy indoors from artificial light Burtonsville, MD. The US Department of Energy reports there are approximately 80 million single-family homes and 5 million commercial buildings in the United States. New Energy Technologies (NET) hopes to make good use of the 536 million square feet of area available on the windows of all of those buildings. The firm has developed SolarWindow technology that’s capable of generating electricity on transparent glass windows. And, thanks to recent technological advancements, the product can churn out power without the aid of natural sunlight. SolarWindow can generate power inside or outside, and in both natural and artificial light, offering the same interconnectivity as solar PV systems.

In 2010, the firm unveiled a 4” x 4” SolarWindow prototype, which is able to generate energy due to a patent-pending process that involves spraying solar cells onto glass.

If NET’s record of past accomplishments are any indication of it’s future, a full-size SolarWindow may be quickly coming to a building near you: in less than a year, scientists developed the product from the size of a grain of rice into its current four-inch incarnation. EIQ

» how it works: When light passes through the glass, it mobilizes electrons within the sprayon coating—which produce electricity. “We can generate electricity in windows, structural glass, or interiors where architectural glass is used as a divider,” says John Cocklin, New Energy Technology’s CEO. Cocklin says the firm hopes to build a commercial-scale prototype by the year’s end, and is currently investigating the product’s manufacturability.

PipElINe

and it suggests new inventions will take only if consumers don’t have to change behavior, and if the invention improves what they’re already doing. To drive a fuel-cell car, you don’t have to change your life—you’re not limited to a 20mile range, you don’t have to charge a battery for eight hours. That’s why these cars have the ability to be game changers. Hydrogen is what they fuel up with, but the experience is much like what drivers already do now.

One Minute With

EIQ: How much will a fuel-cell car cost?

Stanek: The price has not been announced, but

Mary Beth Stanek

General Motors’ Director of Federal Environmental and Energy Regulatory Affairs

General Motors is going green, and Mary Beth Stanek, the firm’s director of federal environmental and energy regulatory affairs, is at the helm of its eco efforts. Among other things, she works with stakeholders in both the government and the private sectors to bring new technologies to market. Stanek recently gave the keynote speech at Platts’ Next-Generation Biofuels conference; afterwards, EIQ spoke with her about what consumers will be driving into the future.

EIQ: Why do you think you were chosen to give the keynote speech at the Next-Generation Biofuels conference?

Stanek: General Motors (GM) has worked hard to support the introduction of biofuels. We started producing flex-fuel vehicles in 2000, and we’ve made a huge effort to support ethanol pumps going in around the country.

it’ll be comparable to other advanced-technology vehicles, like hybrids.

EIQ: How do fuel-cell cars work?

Stanek: Instead of having combustion enter

in the front of vehicle, they have various layers of fuel-cell packs. Hydrogen is dispensed from a dispensing unit to a hydrogen tank; then it’s released to the car, and it goes to these various fuel-cell packs. The hydrogen is introduced to oxygen, which creates energy and makes the battery turn the engine. Water vapor is whooshed out of the car, that’s the by-product.

Basically, two chemicals are introduced, and they create the energy that gets a battery to propel the wheel motors.

EIQ: Where will consumers fuel up with hydrogen?

Stanek: We have had partnerships with Shell and other independent

companies that have hydrogen-dispensing equipment at sites where our [fuel-cell car test] program is being deployed. —bridget herman

EIQ: Tell me about the E85 flex-fuel vehicle. How does it work?

Stanek: It’s a very mature technology. Various ratios of fuels can go in the

car, and the car understands the fuel flow with fuel sensors and software.

You go to a gas station and you can fuel up with gasoline or ethanol. The car performs with those two fuels mixing in the vehicle. [If consumers] want to move into locally produced or bio-based fuel, they have the choice.

Project driveway Chevrolet’s fuel-cell Equinox vehicle is part of GM’s Project Driveway program.

EIQ: GM’s website says the firm hopes to have half of its annual vehicle production outfitted for flex fuel by 2012. Are you on target to meet that goal?

Stanek: Definitely. We’re actually pretty close to that figure now. All of our popular models are outfitted for flex fuel—Cadillacs, Buicks, Malibus.

We’ll add the Volt in 2012.

EIQ: GM is also working to develop fuel-cell cars, which produce zero emissions. When, realistically, will they be commercially available? Do you think consumers will adapt to them quickly?

Stanek: As part of our Project Driveway program, we already have more than 100 [zero-emmissions test cars] on the road, and test drivers have logged over 1.7 million miles. We’re thinking [they’ll be commercially available] by 2015. There is a psychology term—”behavioral placidity”— energyinternationalquarterly.com | may/june 2011

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PipElINe

regional news

Fujian province Fuqing Jiangyin Industrial Park

Eco Firm, Evolving China Clean Energy’s Jiangyin plant reaches full capacity

Fujian Province, People’s Republic of China.

In the past year, China Clean Energy (CCGY), a producer of eco-conscious, toxin-free products made from renewable resources, has increased its revenue by 232 percent. The spike in profit is due largely to the late-2009 debut of the firm’s third production facility, located in the Fuqing Jiangyin Industrial Park in the Fujian Province of the People’s Republic of China.

CCGY has undergone many changes in the past decade.

The firm was mainly a producer of printer ink until 2006,

when it segued into the biodiesel and specialtychemical market. Printer ink is still one of its products, though the firm also produces textile soaps, cleaning sprays, and biodiesel fuel.

More developments are on the horizon: according to the firm’s CFO, William Chen, the plant began operating at full capacity in early 2011. “The Jiangyin plant has the capacity to produce 30,000 tons of specialty chemicals and 40,000 tons of biodiesel fuel per year,” he says. Chen says the firm is looking to open another new facility in 2012. “We are surprised by how much demand is out there,” he adds. EIQ

Energy Lit Sustainable Energy: ithout the Hot Air W

Disaster on the Horizon

By David JC MacKay, UIT Cambridge Ltd., 2009

By Bob Cavnar, Chelsea Green Publishing, 2010

Bob Cavnar is an oil-industry insider—he was once president and CEO of a private exploration firm—so his take on the Deepwater Horizon oil spill is particularly significant. Cavnar turns an oilman’s eye to the disaster, criticizing the government’s involvement (he claims BP and the Obama administration conspired to hide the severity of the spill from the American public) and poor rig technologies, among other things. Most importantly for the reader, he uses a strong narrative voice that keeps the pages turning. The first chapter (“Unleashing the Beast and Paying the Price”) is a work of New Journalism: it follows different Deepwater Horizon crew members through the terrifying moments that followed the tragic explosion, when “the blowout preventer just became a five-story hunk of useless scrap metal.” The book isn’t all doom and gloom, though. Cavnar provides a roadmap for an oil-spill-free future—including plans for an energy policy that aims to create a favorable environment for alternative-energy development and energy conservation. Cavnar himself has taken a turn towards sustainable energy: he now works as CEO of Luca Technologies, a firm that harnesses natural processes to produce natural gas. EIQ 12

energyinternationalquarterly.com | may/june 2011

The likes of Bill Gates and The Economist have touted this book as a must-read, and it’s easy to see why. Using straightforward statistics and graphics that are easy to decipher, MacKay—a Brit—explores whether or not the United Kingdom could function on its own ample supply of renewable resources. He concludes that at current rates of consumption, the renewable-energy infrastructure would be so large that it’d be unlikely to be accepted by the public. For example, to source a quarter of Britain’s current energy consumption from biomass, 75 percent of the nation would need to be covered with biomass plantations. In the second half of his tome, MacKay turns his attention to methods for closing the gap between consumption and renewable production, and explores potential solutions—like the energy potential of the Sahara desert.

Purchase the book or download the text for free at withouthotair.com. EIQ

We know what’s current in

Green Business Do you?

Browse through Green Business Quarterly online versions, explore advertising options, and sign up for your FREE subscription on our website: www.greenbusinessquarterly.com GREEN BUSINESS QUARTERLY JAN/FEB 2011

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EDITOR’S NOTE

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energyinternationalquarterly.com | may/june 2011

EDITOR’S NOTE

1 000 words

Zero Reaction Thierry Hof, a Netherlands-based photographer, captured this panoramic shot inside the non-functioning Zwentendorf Nuclear Power Plant in Austria. Because it was never put into operation, he was able to access sections of the plant that are usually off-limits to the public—like the reactor pictured here. “The power plant was completed in the ‘70s, but never started up because of widespread opposition,” he says. “There isn’t any form of radiation, so it was quite safe to photograph.” The plant is rated at 700 MW, and, after its construction, was discovered to be squarely on an earthquake fault zone, one of several reasons it was never put into operation. EIQ

Photo: Thurston Rother

Photo: Thierry Hof energyinternationalquarterly.com | may/june 2011

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David Hinkel & Mick Klein

Playing for Keeps

Towers Watson consultants Hinkel and Klein outline the results of the firm’s survey of oil-and-gas-industry employees, identifying what attracts, retains, and engages them during tumultuous mergers and acquisitions viewpoint

Over the last two years, the oil-and-gas industry has faced tough market conditions, a series of environmental crises, and much of the same uncertainty that has hit other industries in the wake of the global recession. Now, a growing number of these companies are looking to mergers and acquisitions (M&As) to put themselves back on a path to growth. But based on data from Towers Watson’s recent Global Workforce Study, realizing the goals of an M&A may be particularly challenging, given the layoffs and pay cuts that often come along with such a union. Integrating people and cultures is one of the hardest aspects of an M&A, but a positive company culture is critical to success. How can a company preserve morale during a merger? To help answer this question, the Global Workforce Study looked specifically at the attitudes of industry employees.

hen employees feel stymied in their W careers and pressured on the job, the ties that once bound them to their employer often begin to fray.

the trouble with m&as Mergers may be a good path to growth, but they can also lead to employee dissatisfaction and higher turnover. Our study revealed that oil-and-gas workers who went through an M&A were more likely than non-M&A employees to leave their job for better career-advancement opportunities, by a margin of 10 percentage points. They also felt they lost work-life balance, which they believed was an important element of their job. For instance, 34 percent of M&A employees said the demands of their jobs seriously interfered with their private lives, compared with 21 percent of employees who didn’t experience an M&A. In fact, 61 percent of M&A employees would actually leave their current jobs for better work-life balance, compared to just 51 percent of the non-M&A group.

When employees feel stymied in their careers and pressured on the job, the ties that once bound them to their employer often begin to fray. For instance, despite today’s relatively tight labor market, just 34 percent of the M&A oiland-gas workers surveyed plan to stay with their current employer, and 48 percent are open to moving elsewhere. Among those employees who didn’t go through an M&A, by contrast, 50 percent have no plans to leave their employer and only 40 percent are open to other employment opportunities.

What can oil-and-gas firms do to address employee concerns and lay the groundwork for a smooth transition after an M&A? Based on the research findings and practical experience, two key strategies emerge.

1. Customize Rewards One of the most striking findings from the study is the variability in attitudes and expectations across the workforce. There are marked differences when it comes to why people join or leave organizations, how much risk they’re comfortable taking on, what motivates them to give their full discretionary effort,

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energyinternationalquarterly.com | may/june 2011

Abandoned?

what they expect in terms of a rewards package, and what they want from their manager.

Among industry employees, for instance, the Towers Watson study revealed that skill-building, career development, mentoring, and status are important. Based on this knowledge, a company might customize rewards, especially for employees with high potential, to focus on things like highprofile stretch assignments, targeted rotational opportunities, and participation in a select coaching program.

The key is understanding what matters to critical talent, and designing reward packages that focus on those elements.

Following an M&A, employees often feel left behind.

34%

plan to stay with current employer

48%

are open to moving elsewhere

49% feel managers didn’t help them adapt

44%

feel managers

didn’t explain reasons for change

2. EQUIP Managers

with extra training feel managers During M&As, employees often look didn’t remove obstacles to their direct manager to help them make sense of all the changes taking place. Managers can play a pivotal role in any change-management process, but they need a clear understanding of their role, and the skills and support to execute their responsibilities. Provide extra training to managers, so they can best assist employees during this difficult time. Oil-and-gas companies that provide rewards tailored to the needs of their workforce and train managers to act as mentors stand a greater chance of engaging and retaining key talent.

46%

About David Hinkel and Mick Klein Hinkel is a senior consultant in Towers Watson’s Global Merger and Acquisition Group. He provides due diligence and implementation services to the private equity community, and to strategic buyers. Klein is a seniorretirement consultant for Towers Watson. He consults with organizations on design, implementation, and administration, among other things.

About The Global Workforce Study For more than a decade, Towers Watson has surveyed employees around the world and across industries on what attracts, retains, and engages them.

The firm’s most recent survey, conducted between November 2009 and January 2010, included responses from more than 20,000 employees in 22 markets; this article draws on data from the roughly 1,500 survey participants in the global oil-and-gas industry.

Enviva’s mission is to be the preferred partner and supplier of sustainably-sourced wood pellets and other processed biomass to serve power generation and industrial customers seeking to decrease their dependence on fossil fuels and reduce their carbon footprint. Enviva has been supplying wood chips and wood pellets to customers in the U.S. and Europe since 2007.

Sustainable Biomass Resources

Corporate Headquarters: 1309 East Cary Street, Suite 200 Richmond, VA 23219 804.381.4000 | Fax: 804.412.0229

www.envivabiomass.com energyinternationalquarterly.com | may/june 2011

17

introducing

Building a Biomass Empire EIQ spoke with Enviva CEO John Keppler about the firm’s new name and its recent acquisitions

Due partly to the recent acquisitions of CKS Energy in Amory, Mississippi, and Piney Woods Pellets in Wiggins, Mississippi, Enviva is growing quickly. The Richmond, Virginiabased parent company manufactures renewable biomass fuels (such as wood chips and wood pellets) for industrial-scale applications. Recently, the firm—founded in 2004 as Intrinergy—changed its name to reflect what it does best: providing biomass to renewable-energy consumers, both domestically and internationally. CEO John Keppler explains: EIQ: Why did you decide to shed the original Intrinergy name?

Keppler: When we were founded in 2004, Intrinergy was the name of

our overall corporate identity; we’ve always used the Enviva name for our biomass, fuel, and supply businesses. As we grew, Enviva became a very significant portion of our overall activities. As we’ve consolidated in the industry and the business, we’ve focused on Enviva branding, and many of our customers already know us as Enviva.

Keppler

At a Glance Location: Richmond, VA Founded: 2004 Specialty: Biomass-fuel manufacturing

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EIQ: How have your goals changed now that you’re focused almost solely on processing and supplying biomass?

Keppler: We aim to be the energy-generating sector’s largest producer and supplier of biomass energy—so our goal is to continue to expand our manufacturing capacity. We expect to be the preferred partner and supplier for utilities seeking to displace fossil fuels with clean, renewable, and sustainably generated biomass.

EIQ: How are you planning to accomplish that?

Keppler: We’re investing in facilities throughout the southeastern

United States, including wood-pellet-manufacturers CKS and Piney Woods. We’re also greenfielding and brownfielding plants, and will continue to put significant direct investments into sustainable manufac-

energyinternationalquarterly.com | may/june 2011

turing so we can build, own, and operate our production capacity, and meet increasing demand.

EIQ: Has the acquisition of CKS allowed Enviva to expand its menu of services, or does it simply allow Enviva to produce more sustainably manufactured wood pellets?

Keppler: It’s part of our overall manufacturing footprint. We’re expanding our acquired assets, so we will have an increase in production capabilities. We’re also investing in the broader supply chain.

EIQ: How do you think Enviva fits into conversations about renewable resources, alternative energies, and the future of the environment?

Keppler: I look at Enviva as a part of the solution. I don’t believe that there’s a silver bullet that will solve all of our environmental and energy challenges. What we bring to the discussion is a very cost-effective way for companies

and energy generators to reduce their overall carbonemissions profile without sacrificing system reliability.

EIQ: How do you think Enviva has been able to become so established in the energy industry?

Keppler: A good portion of our success is due to our staff. We’ve built a company around people that have boots-in-the-forest expertise—people who understand how to build, own, and operate energy-generating facilities and run complex manufacturing operations. We’re able to provide credibility of experience, and we’re able to share financial-, environmental-, and communityrelated goals and objectives with our customers.

EIQ: How does it feel to be a part of the evolving bio-

mass industry?

Keppler: It’s exciting. Biomass is such an important part of the move toward renewables. The level of activity and interest in this space is remarkable. We’re seeing the beginnings of an industry-led, consumer-led shift even in advance of what the US regulatory environment is currently pushing; that’s amazing to see. interview by carolyn dorant

www.hf-law.com

Biomass Resources in Thousand Tons/Year 500+ 250–500 150–250 100–150 50–100 0–50

BIOMASS RESOURCES in the united states

his map, created with data from the US Department of Energy’s National Renewable T Energy Laboratory, illustrates the biomass resources currently available across the nation.

It includes the following feedstock categories, among others: crop residues, forest and primary mill residues, methane emissions from landfills, and animal manure.

M. Seth Ginther sginther@hf-law.com (804) 771-9540

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Our Renewable Energy Practice Group provides services competitive with the largest national law firms, by delivering the quantity and quality of work typically expected of a “BigLaw” firm, but with a focus on responsiveness, cost-effectiveness and efficiency. Our goal is to provide our clients with superior legal service and sophisticated, but sensible, legal and business advice, without “overlawyering”. Moreover, each client represented by our Renewable Energy Practice Group will receive consistent hands-on attention from one of our partners, who will provide the requisite experience and expertise, while ensuring that our services are provided in the most cost-effective manner and with an eye towards our client’s bottom line. We offer a full range of “renewable energy” legal services including: • Project Development and Finance • Federal and Multi-State Regulatory and Legislative Matters • Federal and Multi-State Grants and Tax Incentives

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energyinternationalquarterly.com | may/june 2011

19

global scope

d

PECO Electric, Ltd. Canada

Looking to Greener Pastures

a M&I Electric Macturing Facility Beaumont, TX

a

a AETI Corporate Headquarters Houston, TX

d Neotec Mexico

South Coast Electric Systems Bay St. Louis, MS

a American Access Technologies/ Omega Metals Keystone Heights, FL

American Electric Technology, Inc. has expanded beyond its traditional markets to explore the world of renewable energy

The average company sticks to what it

knows best. It has a product or service and a reliable market, and it operates within that comfort zone—end of story. Other firms, like American Electric Technology, Inc. (AETI), find that exploring new territory can prove energizing, if not profitable.

The Houston-based provider of customdesigned power-delivery solutions is adept at trying out new things and ideas. Founded in 1946 in Beaumont, Texas, as Marine & Industrial Electric Industries (M&I), the company got its start by supplying electrical products and services to oil, gas, industrial, and marine businesses centered around the Gulf Coast.

In 2007, M&I merged with American Access Technologies, Inc. to create a publicly traded entity known as AETI. Today, AETI continues to offer electricalpower-conversion and -distribution equipment as power-delivery solutions to the global energy industry. This means that it supplies traditional oil- and gas-related industries with the necessary low- and medium-voltage electrical equipment and electrical construction, as well as around-the-clock technical service, to en20

energyinternationalquarterly.com | may/june 2011

sure power delivery from the source of power generation all the way to the user or the point of connection on the utility grid.

“Very few companies can offer this range of end-to-end solutions,” says John Skibinski, AETI’s vice president of new market development, who joined the company two years ago.

Since the 2007 merger, the company has grown both financially and geographically. In addition to its Houston headquarters, AETI has offices and manufacturing operations in Beaumont, Texas; Florida; and Mississippi. The firm also has joint-venture projects in China, Singapore, and Brazil. The company’s new Brazilian joint venture has been busy adding large oil and gas customers to its roster of clients.

AETI’s drive for growth has also propelled it to expand beyond its traditional energy customer base, and to pursue opportunities in the emerging field of renewable energy. Less than two years ago, AETI launched a renewableenergy initiative, leveraging its core engineering and manufacturing competencies into solar and wind. That flexibility has allowed the company to expand into new geographic markets and market segments.

At a Glance HEADQUARTERS: Houston, TX OTHER LocationS: Beaumont, TX; Keystone Heights, FL; Bay St. Louis, MS; Shaanxi, China; Singapore; Macae, Brazil Founded: 1946 Employees: 325 in the US, 200 more internationally Specialty: Traditional and renewable powerdelivery systems

s BOMAY Electric Industries Xian, Shaanxi, China

aETi’s Operations

d

When AETI debuted in 1946, its operations were centered in the Gulf Coast region and its clients were all in the oil-and-gas industry. (Back then, the company was known as Marine & Industrial Electric Industries.) Thanks in part to a 2007 merger and a string of strategic partnerships, the company now operates on four continents.

It has expanded its offerings, too: AETI services the wind and solar industries in the United States, and is bringing its renewable arm to China.

World Wide Power Dubai

a

d Control Technology Trinidad

d Norstat Venezuela

d Coretrading Ecuador

s Five Star Services Brazil

s M&I Electric Far East PTE, Ltd. Singapore

“Wind and solar product applications are technically similar to the other markets we serve,” Skibinski says. “So entry into renewable energies is an extension of our core competency: custom outdoor-grade harsh-application, selfcontained power distribution, control, and conversion systems.”

For now, solar is king of the renewable-energy domain, especially in the US market. The wind-energy industry, hampered by low natural-gas prices, needs a more stable investment or tax-credit environment in order to attract capital, grow, and provide jobs. Solar, on the other hand, is a more established industry, boasting both energy credits and a market for buying and selling them at least through 2016.

Moreover, solar facilities and farms require less-expensive equipment so the returns on investment are more predictable. Factor in the renewable-energy credits and the increasing affordability of solar-energy systems, and solar investments become inviting.

AETI saw a need for more reliable solarinverter technology and end-to-end solar farm

Sales/support/manufacturing s Joint ventures d Suppliers/other

AETI global operations Green initiatives underway

“For the renewable-energy industry to become self-sustaining, it has to be dispatchable. The energy has to be provided in direct response to consumer demand, cost effectively and without waste.” John Skibinski, VP, New Market Development

design and seized the opportunity to enter the market. Earlier this year, the company introduced the solar industry’s first Integrated Solar Inversion Station (ISIS), a pre-commissioned, utility-grade, 1 MW, complete solar-inverter system designed to provide greater, morereliable operating power for solar farms in the harshest environments.

“We can provide the solar combiners, inverters and substation equipment, electrical construction, and technical services,” Skibinski says.

“No other company can provide that equipment and services to the multi-megawatt farm owner or operator in a cost-effective manner.”

Looking ahead, Skibinski says that AETI has plans for growth, particularly in renewables. The company is also continuing its strategy of international expansion: it recently announced a new joint venture in China that focuses on bringing its wind and solar technologies to the Chinese renewable-energy market.

“For the renewable energy industry to become self-sustaining, it has to be dispatchable,” Skibinski says. “The energy has to be provided in direct response to consumer demand, cost effectively and without waste.”

No doubt, AETI will be among the first to pioneer this next frontier. —cristina adams energyinternationalquarterly.com | may/june 2011

21

canada control

_ elettronica

technology

Rising oil prices have fueled advances in underground drilling, but ground-level technologies have been stagnant for decades...

Until Now. “There’s been an enormous amount

of money spent on improving drilling in the oil-and-gas business, but when you look above ground, that stuff doesn’t look much different than it did in the 1950s,” says David Gray, president of Canada Control Works Inc. (CCW), an Edmonton, Alberta-based firm that manufacturers motor-control systems for the oil-andgas industry.

Gray says that rising oil prices have fueled advances in exploration and extraction, such as multi-stage hydraulic fracturing and horizontal drilling, but little technological progress

has occurred on the above-ground aspect of extraction—until now. A dedicated team of industry professionals at CCW has set out to change this by examining every aspect of the industry’s current artificial-lift system. The team has spent time identifying the system’s weaknesses and providing solutions. “[We see] a real opportunity to use modern, efficient motors, control systems, and mechanical systems to raise oil out of the ground,” Gray says.

This spirit of innovation is typical for CCW. When the firm was founded three years ago, its team packaged together several different technologies to create unique, customized energyefficiency solutions for 5- to 300-horsepower pump jacks, which reduce operating expenses through energy efficiency.

Pump jack

Location: Edmonton, AB Founded: 2008 Employees: 10 Specialty: Motor-control systems for the oil-and-gas industry

How it works: Enersaver Power II Pump Jack

Enersaver Power II xcess E power sold back to grid

Motor

CCW At a Glance

ccording to Gray, the Enersaver functions much like a A hybrid car—meaning the energy you use when you “accelerate” the pump is returned when you “brake” it. As the pump jack goes down, excess current is captured and repurposed as usable energy. That recycling results in energy savings of more than 25 percent. Its four-quadrant motor drive has two inverter systems (one controls the motor; the other feeds power back to the utility grid).

Stored energy is used to lift the rod stream back up, reducing the energy consumption of the pump jack. When captured energy exceeds the storage capacity, excess power is sold back to the utility grid.

energyinternationalquarterly.com | may/june 2011

23

TECHNOLOGY PUMP IT UP The Enersaver Power II generates power by harnessing the kinetic energy of the pump’s downstroke.

Make it Easy, Make it Satie Save Space, Time and Money Traditional Layout The company’s signature product, though, is the Enersaver Power II, a regenerative pump jack that harnesses the kinetic energy of the down stroke of the pump jack to generate power. It’s the first pump jack that produces the electricity to power itself.

“It functions like a hybrid car,” Gray says. “The energy that you use to accelerate, you get back when you brake. Braking turns the motor into a generator, taking the forward momentum and reconverting it back to electricity that is stored in the batteries.”

The economics of the Enersaver are impressive. For example, say a client is working with a four-jack pad and paying about $450,000 for energy over a period of four years. “We can cut that down to approximately $300,000,” Gray says.

Enersaver also helps to green drilling operations. Gray says that when the Enersaver is used with the typical 75-horsepower pump jack, it can reduce the carbon emissions associated with the electricity production by as much as 40 tons annually (when displacing electricity generated from coal). These results are maximized when paired with specialized gearbox oil and a carbon-fiber and Kevlar belt-drive system, which can each cut energy consumption by 5–10 percent. There are more than 500,000 pump jacks across North America, so if the Enersaver is widely applied, the potential energy savings are significant.

CCW also offers integrated solar- and wind-energy systems that provide power to artificial lifts located off the grid. “We can run wells for de-watering coalbed methane, where you just need a few hours of operation a day to clear the water, on straight solar [energy],” Gray says. “We also have integrated systems that combine solar, wind, and casing-well gas to provide a total off-grid solution. If you combine that with our energy-efficient drives, we can take companies off-grid.”

Such solutions are particularly appealing in areas where the power grid would otherwise need to be extended to enable drilling. “We have a client in Louisiana that has a quote from the power company for $3.5 million to build a [power] line to their field—they are very interested in finding out what we can do to provide another option,” Gray explains.

Moving forward, CCW will focus on using cutting-edge technologies to boost oilfield production. Gray says there are plenty of efficiency measures that can boost ground operations. “We are working to network smarter control drives together, to get real-time data across the whole field—[all to help] maximize oil production.”

—sarah lozanova 24

energyinternationalquarterly.com | may/june 2011

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CCW Inc. is a manufacturer and supplier of high-quality, custom-designed energy efficiency systems for the oil and gas industry. Among the leaders in the field for control systems for ESP, Pump Jacks, PCP and horizontal pumping systems, CCW introduces innovation and advanced technology to our entire range of products and services. We provide full solutions to our clients: product selection/customization, installation, expertise, application assistance and warranty services.

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21 Dry Dock Avenue, 8th Floor Boston, MA 02210 (857) 239-7500 www.fastcapsystems.com

TECHNOLOGY

Staying Power

Dr. Riccardo Signorelli, CEO of FastCAP Systems Inc., believes his take on rechargeable batteries will change the future of hybrid cars

At a Glance Location: Boston, MA Founded: 2010 Employees: 20 (12 full-time) specialties: Energy storage and rechargeable batteries for hybrid vehicles, natural-resource exploration/drilling

26

energyinternationalquarterly.com | may/june 2011

Hybrid electric vehicles (HEVs) debuted in 1997 when Toyota unveiled the hybrid Prius to Japanese consumers; it was introduced to North American consumers three years later. Since then, HEVs have been attracting attention, largely because of their potential to reduce fuel consumption and curb the carbon footprint of vehicles on the road.

But there are drawbacks and limitations to the current HEVs, which are powered in part by conventional batteries. “Everyone is familiar with batteries, and they are an essential component of HEV technology, but they have shortcomings,” explains Dr. Riccardo Signorelli, CEO of Boston-based FastCAP Systems Inc. Signorelli should know. For more than a decade, he’s been working to create a new type

of ultracapacitor that will complement—and possibly replace—the traditional batteries currently being used in hybrids.

In HEV applications, FastCAP ultracapacitors will first work in conjunction with traditional batteries to power an HEV. “Traditional batteries wear out when they are drained and recharged many times, or if they are drained rapidly in situations that demand high power— like during acceleration,” Signorelli says.

Here’s how the FastCAP ultracapacitors will work: when the consumer is rapidly accelerating, power is sourced from the capacitor.

This protects the battery from the stress and degradation associated with acceleration. “By combining the two technologies, you have an energy-storage system that is cheaper, lighter,

TECHNOLOGY

smaller, safer, and lasts longer,” Signorelli says.

“Ultracaps are rugged, capable of performing in extreme temperatures and conditions, and can endure hundreds of thousands, and perhaps millions of cycles of charge and discharge before replacement is needed.”

FastCAP’s ultracapacitors also recharge in just minutes, as opposed to the lengthy multiple-hour recharge process for conventional batteries.

Signorelli says his ultracapacitors have the potential to reduce annual fuel consumption by 80 million barrels of oil, save consumers $4 billion in fuel spending, and eliminate 24 tons of CO2 emissions. He has spent almost a decade perfecting his product. “I came to the United States from Italy 12 years ago to study at the

microscopic Vertically aligned carbon nanotubes, pictured above under the extreme magnification of a scanning electron microscope, are the heart of FastCAP’s technology. lab work Signorelli (left) and a team of engineers spent eight years working in a laboratory at MIT, with the aim of developing low-cost, high-performance ultracapacitors.

energyinternationalquarterly.com | may/june 2011

27

TECHNOLOGY

charge collector

How it Works: The Ultracapacitor

carbon active layer (not to scale)

NEGATIVE ELECTRODE

aqueous electrolyte

V

separator aqueous electrolyte

POSITIVE ELECTRODE

Ultracapacitors have two main components: carbonelectrode material and a liquid electrolyte. Two electrodes (one positive, one negative) are separated from each other by a paper-like insulator, and are then immersed into an electrolyte. Negative charges collect on the negatively charged carbon electrode, which then attracts positive ions from the electrolyte.

An equal and opposite process occurs on the positively charged electrode. This phenomenon, known as the “Helmholtz double-layer of charge” (in honor of German physicist Hermann Ludwig Ferdinand von Helmholtz), allows energy to be stored in the electric field created by the presence of the positive and negative charges.

carbon active layer charge collector

Li-ion Batteries

aqueous electrolyte

University of Texas, and then later pursued my doctorate at MIT,” he says. “I became interested in energy very early on, and felt strongly that energy was one of the most difficult issues that we would face in the United States.”

While working in a research lab at MIT for eight years with a team of engineers, Signorelli had one goal: to develop a high-performance, low-cost ultracapacitor. After several years of research and engineering work on the technology, his team reached a milestone. “About three years ago, we started having very encouraging results in the lab, a scientific breakthrough that we wanted to commercialize,” Signorelli explains. “Then, about two years ago, I began raising funding and assembling a team. I recruited my most dedicated lab partners at MIT, and we became FastCAP.” FastCAP has since grown into a team of 20 employees and advisors, and all employees have a passion for energy. “We have an extremely creative and passionate team,” Signorelli says. “We have an out-of-the-box mind-set, and are all working to release a breakthrough product that will be at the leading edge of energy-storage innovation.”

28

energyinternationalquarterly.com | may/june 2011

pore

V

With the help of its investors (which include the Department of Energy through the ARPA-E grant program, the Chesonis Family Foundation, and the Massachusetts Clean Energy Center), FastCAP recently moved into a 17,000-square-foot manufacturing and research facility in Boston’s Seaport District.

In its new facility, FastCAP is forging ahead with plans to market and sell first-generation

Commercial UltraCaps

High energy density

•

•

High efficiency

•

•

•

•

•

•

Eco-friendly and

abundant materials

•

•

Low upfront and twenty year costs

•

High power density

DETAIL SHOT of the activated carbon electrodes, which are at the center of FastCAP’s new ultracapaticors.

FastCAP’s UltraCaps

Long life

generation prototype is an ultracapacitor that can be used to power energy exploration in harsh environments, such as natural-gas or oil exploration.

Ultimately, Signorelli says, the goal is to provide the world an environmentally sensitive and transformational energy-storage solution.“If you were to ask a random person on the street what image comes to mind when

“The future of energy storage is light, cheap, fast, clean, safe, and reliable. At FastCAP, we aim to change the way the world looks at how we capture and store energy.” Dr. Riccardo Signorelli, CEO prototypes of its energy-storage technology, which, according to Signorelli, have the potential to transform the power grid and automotive industries, and to also create thousands of new jobs nationally and, eventually, globally, while also making HEVs accessible and affordable. And, although HEV drivers are FastCAP’s ultimate target market, the company’s first-

they think of a ‘battery’—the answer will likely be a cumbersome box full of heavy metals,” he says. “But the future of energy storage is light, cheap, fast, clean, safe, and reliable. At FastCAP, we aim to change the way the world looks at how we capture and store energy. That is our mission and our motto—to be the paradigm shift in energy storage.” —kelly matlock

Features olar Impulse founders Bertrand Piccard and S André Borschberg have developed a solar-powered plane, which they plan to pilot around the globe in 2013. (Borschberg has already flown, sans jet fuel, across Switzerland.) Their work is driven by a desire for sustainability: “Now that our plane has flown night and day without fuel, nobody can keep saying it’s not possible to do the same with cars, heating, cooling systems, or computers,” Piccard says. Read more, p. 30.

Defying Gravity, p.30 /// Nuclear Comeback, p.38 /// Guiding Light, p.44 /////////////////////////////////////////////// EIQ Photo: AFP / Pool / Fabrice Coffrini

energyinternationalquarterly.com | may/june 2011

29

A Boeing 747 needs more than 114,000 gallons of jet fuel to circumvent the globe.

This plane needs zero. story by Carolyn Dorant photos by stÉphane gros*

I

nstead of guzzling petroleum, the Solar Impulse is

fueled by the power of the sun, which is harvested by thousands of photovoltaic cells affixed to the wings of the aircraft.

Last year, the plane managed to remain airborne during a 26hour flight—the first-ever nighttime flight completed with a solar plane. And, in 2013—after more than a decade of planning, designing, building, and testing—two men will take turns piloting the one-seater craft around the world, without consuming a drop of fuel.

If they succeed, Bertrand Piccard and André Borschberg, the two men at the helm of the Solar Impulse project, just might change the way we look at fuel consumption.

30

energyinternationalquarterly.com | may/june 2011

* Except when noted. All photos © Solar Impulse

model a The Solar Impulse prototype plane (model HB-SIA) has already flown for 26 hours straight.

In 2012, the HB-SIB model, currently under construction, is slated to fly around the globe.

energyinternationalquarterly.com | may/june 2011

31

Portrait of Two Pilots It’s not difficult to understand why Bertrand Piccard, 52, has devoted his life to the pursuit of adventure. The Lausanne, Switzerland, native comes from a family of scientists, and his grandfather, Auguste Piccard, is rumored to be the inspiration for characters in film and television, including Star Trek’s Jean-Luc Picard and TinTin’s Professor Calculus. Auguste invented the principle of pressurized cockpits and was the first man to penetrate the stratosphere and see the curvature of the Earth with his own eyes; Bertrand’s father, Jacques Piccard, executed the world’s deepest dive in 1960 when he took his bathyscaphe seven miles down into the Mariana Trench.

“The environment in which I grew up was indeed very stimulating,” Piccard says. “Most of my father’s friends who were coming for lunch or dinner at home were astronauts, explorers, adventurers, divers, and environmentalists.”

These surroundings had a big impact on the young Piccard, and he vowed to embark on a life of adventure. His own ambitions began to take shape when he witnessed the launches of Apollo missions 7 through 12. “When I met the astronauts who were taking off for the moon, it was obvious for me that this was the type of life that I wanted to have,” he says. “It’s an interesting and useful life, and these role models showed me the way.”

As an adult, Piccard is certainly living an interesting and useful life. In 1999, he was the first person to complete a non-stop hot-air balloon flight around the globe. The journey, which Piccard completed in tandem with Brit32

energyinternationalquarterly.com | may/june 2011

THE PIONEERS Piccard (left) and Borschberg, both pilots, are at the helm of the Solar Impulse project.

ish copilot Brian Jones, took a total of 20 days.

The trip cemented his love of adventure and, four years later, the Solar Impulse project was launched. “The balloon flight around the world was for me a logical consequence of all of [my childhood] experiences, and, of course, Solar Impulse is now a way for me to continue the adventure, but in a more useful way,” Piccard says.

The first phase of the Solar Impulse adventure involved finding a partner. “I always say that [André Borschberg and I] make a relation that one plus one equals three; there is André, there is me, and then there is both of us. And I don’t think a project like this could be run by anybody other than both of us together.”

The pair met after Piccard spoke with the Swiss Federal Institute for Technology of Lausanne (EPFL) about his plans to build a solarpowered airplane able to fly around the world.

The EPFL invited Borschberg, an alum and MIT grad, to run a feasibility study of Piccard’s vision. Borschberg, who is a former Swiss air force pilot and has years of aviation experience, was curious about the possibilities of a solar-powered airplane. “To develop a new way of powering airplanes was extremely attractive,” Borschberg says. “I’ve always been involved in innovative situations, projects, and companies, and I like to work on new ideas.”

The project encountered difficulties from the outset. “Everything has been difficult, just because it started with no benchmark,” Piccard says. “Absolutely everything had to be

SOLAR IMPULSE

Solar Impulse’s HB-SIA has the wingspan of a 747 but weighs only as much as a mid-size car.

Solar Impulse’s HB-SIA model At a Glance Wingspan: 63.4 m Length: 21.85 m Height: 6.4 m Weight: 1,600 kg Power: Four 10-hp electric engines Solar cells: 11,628 Average flying speed: 70 km/h Take-off speed: 35 km/h Maximum altitude: 8,500 m (27,900 ft.)

Photo: Jean Revillard

energyinternationalquarterly.com | may/june 2011

33

“What we want to show is precisely that the technology of today allows our society to be much more independent from fossil energy.”

Bertrand Piccard, President

invented, from the first detail.” Borschberg, a Zurich native, agrees. “When we announced [our plans for] the project at the end of 2003, almost seven years ago, we had nothing. I mean we had a great idea, but there was no money, no partners, no team, [and] neither of us had experience building airplanes,” he says.

One of Borschberg’s first responsibilities aboard Solar Impulse was to assemble a dependable and talented team. “You don’t build a great team in a few months or even in a few years, but today we have an unbelievable 34

energyinternationalquarterly.com | may/june 2011

team,” he says. Piccard, too, is pleased. “André has done a great job putting the team together,” he says. “The partnership with André is extremely important for the project. I am someone who is more on the side of visions, of communication; I can raise enthusiasm. I can motivate people and partners to fund this project. André is more of an entrepreneur, a manager. He is the one who is running the project himself as a CEO. I think together we make a very, very good pair.”

Also helpful: Borschberg, who was in the

Swiss air force, piloted Solar Impulse’s first nighttime flight—a 26-hour trip. “He has [logged] thousands of hours on jet fighters, so he was the best qualified to make this mission,” Piccard comments.

An Environmentally Conscious Mission Greater than either man’s dreams, qualifications, or ambitions, both are intensely passionate about energy conservation, renewable energies, and the stimulation of future generations’ interest in environmental protection. As a result, they’re aligned when they speak about the goals of Solar Impulse. “What we want to show is precisely that the technology of today allows our society to be much more independent from fossil energy,” Piccard says. “All the technologies of Solar Impulse, if they were used massively today, would already allow our world to divide its fossil energy consumption by two.” What Piccard says—and what Borschberg agrees with—is that the project’s

2 TONS Solar Impulse

63.5m

560 TONS

Boeing 747

2 TONS

How it Works: Solar Impulse HB-SIA EIQ asked Piccard and Borschberg for the scoop on what the Solar Impulse plane is composed of, and how the craft actually works. We discovered that it’s of considerable size—it has a 63.4 meter wingspan, and a 1,600 kilogram takeoff weight—which means it’s about the size of a jumbo jet, but the weight of a midsize car. It’s structured of carbon-fiber-honeycomb composites, arranged in a sandwich assembly. The tiny cockpit measures 1.3 x 3 meter, and the tops of the wings are covered with almost 12,000 photovoltaic monocrystalline-silicon cells (10,748 on the wings and 880 on the horizontal stabilizer) that harness solar energy during the day. That energy is channeled towards two purposes: it runs four electrical engines that keep the plane moving, and it loads energy into lithiumpolymer batteries, so that the plane can fly at night. The batteries make up onefourth of the plane’s weight.

The plane is held aloft by four 10-horsepower motors protected in insulated gondolas to prevent the batteries from freezing in the cold temperatures found at high altitudes. It’s able to fly at approximately 70 km/h, or 43.5 mph. In direct, bright sunlight, the plane is able to absorb the equivalent of 1,000 watts per square meter or 1.3 HP of light power. Its takeoff speed is 35 km/h, or 21.7 mph.

In addition, Solar Impulse is constructed with easily available materials, and it has been assembled with what Piccard calls “the technology of today, not the technology of tomorrow.”

Photo: Jean Revillard

01 Building HISTORY Construction of the Solar Impulse HB-SIA prototype plane (immediate right, top) began in 2007.

02 testing the waters Before the prototype ever took to the skies, the Solar Impulse team conducted virtual flights in a variety of weather conditions.

Here, Piccard and Borschberg run the Solar Impulse virtual flight simulator (immediate right, bottom).

01

03 preparing for takeoff Many calculations, simulations, and tests were made at Solar Impulse’s construction hall (far right) before the prototype plane was revealed.

02

03

energyinternationalquarterly.com | may/june 2011

35

The Piccards: A Bold Brood

It’s no surprise that Bertrand Piccard has adventure flowing through his veins.

Just look at what his grandfather and father have accomplished before him.

Three Generations of Explorers  Auguste,  Jaques, and  Bertrand Piccard.

1922

1930

1932

1937

1945

1960

Auguste becomes a professor of physics at the Free University of Brussels.

He develops a pressurized, aluminum cockpit for hot-air-balloon crafts that can be flown to high altitudes. Pilots don’t need a pressure suit.

Auguste takes his cockpit to the altitude of 16,201 meters. At this height, he is able to measure cosmic rays and make observations about the atmosphere.

Auguste designs a similar pressurized cockpit for deep-sea exploration.

He constructs his bubble-shaped underwater cockpit. Because it can withstand great pressures, the craft maintains normal air pressure even when it’s submerged in great depths of water.

Jacques Piccard, Auguste’s son and a deep-sea explorer, pilots the Trieste, a bathyscaphe, to a depth of 35,800 feet.

“Life is more interesting and successful if we accept the unknown, the doubts, and the question marks...” Bertrand Piccard aim is really to show people what else could be accomplished with the same solar panels, the same batteries, and the same carbon fibers that power Solar Impulse.

“It’s clear that the technologies available today would allow us to keep the same quality of life but use less energy than we did and do currently,” Borschberg says.

And Piccard has a message for those who are wed to the use of less-sustainable fuel sources. “Now that our plane has flown night and day without fuel, nobody can honestly keep saying that it’s not possible to do the same with cars, heating, cooling systems, or computers,” he says.

Both men believe that changes in legis36

energyinternationalquarterly.com | may/june 2011

lation will be, to some degree, an answer to today’s energy problems. “Change certainly circles around some political decisions, such as new legislation, which would support the implementation of technologies to help to further save energy,” Borschberg says. In the meantime, both men hope the Solar Impulse project will spark a change in society. “We want to show politicians, the industry, and the economy everything that can be done with these technologies and motivate people to change their mindsets. So even after the ’round-theworld flight, this airplane will continue to be used as a demonstration platform of new technologies and environmentally friendly solutions,” Piccard says.

From a practical standpoint, Piccard believes renewables can be more affordable for end consumers. “A lot of people still believe that renewable technologies are still too expensive compared to fossil energy,” he says. “This is a big mistake because they confuse the price and the cost of energy.” Piccard argues that when evaluating the price of solar power, the entire cost is included up front. But when you pay for the price of oil, he says, all the costs are not factored in. “Not included, for example, is the cost of the reconstitution of all this oil that took two hundred million years to be made,” he says. Also uncalculated in fossil-fuel-related expenses is the cost of oil spills, CO2 emissions, and environmental problems. “This is where we still need to make a lot of explanations for the people to understand, to change their minds.”

Timeline photos: © Archives Piccard Family and National Geographic magazine

1964

1969

1999

2010

He carries 33,000 passengers into the depths of Lake Geneva during the Swiss National Exhibition in 1964 in the first tourist submarine. The craft is one of the four mesoscaphes (mid-depth submarines) he’ll build.

Jacques spends four weeks at the helm of a successful mission in a 50-foot submarine.

The vehicle, named Ben Franklin, travels the Gulf Stream at a depth of 1,000 feet. Crew members studied various topics, including underwater acoustics and the effects of isolation on humans.

Bertrand Piccard, a balloonist and the son of Jacques, works in tandem with fellow balloonist Brian Jones to complete the first nonstop balloon circumnavigation of the globe.

Bertrand’s Solar Impulse project reaches a milestone: the solar-powered HB-SIA prototype plane completes a successful 26-hour flight. In 2012, Bertrand and his partner André Borschberg will pilot the HB-SIB model around the globe.

Though they still face this and other obstacles, Borschberg and Piccard won’t be deferred. Piccard, for one, says he hopes to be remembered as a pioneer of environmentally friendly solutions and technologies, and for having motivated people to change their mindsets about renewables.

“When people ask me what qualities are necessary to be a pioneer, I always answer that we need to be able to cope with disappointments, problems, and frustrations before we have big successes,” he says. “We also learn that life is more interesting and successful if we accept the unknown, the doubts, and the question marks; if we can get rid of certainties, habits, and common assumptions. When we are out of our zone of comfort, then we are obliged to be creative—we are obliged to dig into ourselves to find new solutions.” EIQ Photo: AFP / Pool / Fabrice Coffrini

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Nuclear

comeback

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Proponents have long labeled nuclear energy as a boundless supply of green power, but high costs and safety concerns have slowed its growth in the United States— until recently.

By Annie Fischer under construction Two 1,100 MW reactors are being constructed at Southern Company’s Vogtle plant in Waynesboro, GA.

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In the 1970s, nuclear power was on the rise.

Defying the odds, one nuclear project continues to unfold according to plan. Developers have decided to forge ahead with the two 1,100 MW reactors slated for Atlanta, Georgia-based Southern Company’s Vogtle nuclear station.

And, due to improved licensing and funding practices and a sleek new reactor design, the new nukes may prove, once and for all, that the United States is ready for a nuclear renaissance.

What’s in the Works?

But the predicted nuclear renaissance lost considerable steam due to a string of setbacks and accidents. (Remember the Chernobyl disaster?) In recent years, a spike in the construction of nuclear power plants was again predicted, but progress has been sluggish. For example, over the past year, development has slowed— or come to a stop—on at least seven proposed nuclear projects in the United States. It seemed nuclear power plants would remain a small component of US energy supply.

A series of events in the fall of 2010 exemplify this stalled growth. In September, Exelon, operating the largest nuclear fleet in the United States, pushed pause on plans to construct a twin-reactor plant in Texas. In Florida, two

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unrelated projects hit the skids: Progress Energy says it won’t decide until 2012 whether to go ahead with its Levy County, Florida, site (though it will continue to recover $1.63 million in construction costs from customers in 2011); the expansion of Florida Power and Light’s Turkey Point plant has also been delayed. And when Constellation Energy failed to reach an agreement on a federal loan guarantee—the government was seeking an $880 million fee on a loan guarantee of $7.6 billion—the proposal for its third reactor unit at Calvert Cliffs in Lusby, Maryland, stalled. In late October 2010, Constellation instead inked a deal transferring sole ownership of the Calvert Cliffs venture to French utility giant Électricité de France.

southern company’s vogtle plant is located on a 3,000 acre plot of land near Waynesboro, Georgia. Vogtle Units 3 and 4 are poised to be the first new nuclear development in the United States in more than 30 years.

“Nuclear energy is clean, safe, reliable and economical,” says Beth Thomas, Southern Company’s communications coordinator. “And it’s a good value for customers.”

Southern should know: the company currently has some 4.4 million customers, who are served by its electric utilities in Georgia, Alabama, Mississippi, and Florida. Thomas believes that expanding its nuclear-energy capacity will be a boon for Southern Company, too—resulting in a balanced portfolio that’ll

ensure the company isn’t overly dependent on any one energy source to meet customers’ needs. Additionally, Southern has the right staff for running complex nuclear facilities: Southern Nuclear, one of its subsidiaries, now operates the two existing nuclear units at Plant Vogtle, as well as the Plant Hatch nuclear facility in nearby Baxley, Georgia, and Plant Farley, another nuclear facility near Dothan, Alabama.

Southern Company’s nuclear arm will also oversee construction and operations for the new Vogtle units. The project is expected to create approximately 3,500 jobs during the building process. Once Units 3 and 4 launch commercial operations (which the company anticipates will happen in 2016 and 2017, respectively), another 800 permanent jobs will be created.

Who’s Footing the Bill?

ations and regulatory processes. In 2005, thenPresident George W. Bush signed the Energy Policy Act into law, authorizing the government to issue federal loan guarantees to spur the development of nuclear stations, which typically cost more and take longer to build than coal- or natural-gas-based power plants.

Still, the process of financing the project was just beginning. In June 2010, Southern and the DOE came to an agreement on loan guarantees of $3.4 billion for the Vogtle expansion site.

At press time, Southern’s commitment stands as the first—and only—nuclear-related loan the government has successfully issued thus far.

And while the loan guarantees certainly benefit Southern’s customers—saving them $15 to $20 million in interest costs annually—Thomas says that the company is not dependent on government funding to build the new units.

There are other benefits to the agreement.

A senate bill signed in April 2009 allows Georgia Power, a partial owner (and funder) of the Vogtle plant, to include Construction Work in Progress (CWIP) into the rate base beginning in 2011, which allows the firm to recoup financing costs earlier rather than waiting for operations to commence. Georgia also has regulations in place that mandate customers pay whatever costs utilities spend to generate power, within reason (regulators decide whether or not the expenses are prudent). Essentially, the cost of construction is passed on to consumers, unlike in “merchant” environments—like the stalled Calvert Cliffs project—where companies build at their own risk.

That legislation offers considerable aid to the project’s $14 billion price tag. Cost will be split according to share among the plant’s

this project’s completion

will mark the end of a lengthy development process that began in 2004—that’s when Southern first submitted its proposal to the US Department of Energy’s (DOE) Nuclear Energy 2010 Program. The program, unveiled in 2002, aimed to identify potential nuclear power-plant sites, develop new technologies, and evaluate financial consider-

Southern’s commitment stands as the first—and only—nuclear-related loan the government has successfully issued thus far.

atlanta

Plant Vogtle aynesboro, GA W

adding on For more than 30 years, nuclear development has been at a standstill in the United States. Southern Company is poised to buck that trend by adding two new reactors to its Vogtle nuclear plant in Waynesboro, GA; the company estimates that the additions, known as Units 3 and 4, will be ready for commercial operation by 2016 and 2017, respectively. The process will create an estimated 3,500 jobs during the construction process, and 800 permanent positions. http://www.southerncompany.com/nuclearenergy/

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owners: Southern-owned Georgia Power (45.7 percent), Oglethorpe Power Corporation (30 percent), the Municipal Electric Authority of Georgia (22.7 percent) and Dalton Utilities (1.6 percent). Of the total $14 billion, Georgia Power will pitch in some $6.1 billion, including the aforementioned financing costs to be collected during construction, estimated at $1.7 billion.

A Newly Streamlined Approach still faces plenty of obstacles in the United States (more on that later), Southern seems to be sketching a valuable blueprint for the future of the industry.

“Being among the first [in the United States] to build a new nuclear energy plant [in three decades] does bring challenges,” Thomas admits. “But much is different today than when the first round of plants were built.”

For one thing, the US Nuclear Regulatory Commission’s (NRC) licensing process has been changed. Following the 1979 partial core meltdown at the Three Mile Island plant—which brought about more stringent emergency planning and reactor-operator training—modifications to licensing, inspection, and certification contributed both delays and additional capital costs. As a result, many of the units constructed in the 1980s ended up costing significantly more than estimated. For example, the price of Vogtle Units 1 and 2, both built in the late ‘80s, leapt from an estimated $660 million to a

while new nuclear development

whopping $8.87 billion.

Today’s more streamlined process (established by the NRC in 1989, though only recently used) standardizes those regulations and helps to prevent unplanned price escala-

“Many of [VOGTLE’S] operating procedures include more conservative measures than are laid out in [federal] regulations.” Beth Thomas, Communications CoordinatoR tions, which decreases uncertainty for utilities. Whereas the prior licensing approach required that construction be completed before operating license could be granted, plant designers can now apply for a combined construction permit and operating license (COL) before construction even begins. Developers can also achieve both site approval and design certification in advance.

According to Charles Pierce, Southern Nuclear’s deployment licensing manager for its new AP1000 reactors, those issuances—the early site permit, design certification, and COL— are three of the five major milestones needed to guarantee the success of Vogtle Units 3 and 4, in addition to limited work authorization and authority to operate. Southern Nuclear has been issued NRC’s early site permit and lim-

Westinghouse AP1000 The new units will each be outfitted with a sleek, newly designed reactor: the Westinghouse AP1000. Units 3 and 4 will be the first nuclear facilities in the United States licensed to operate with the AP1000, a two-loop pressurized-water reactor that has less safety valves, pumps, and saftey-related cables than earlier models of pressurized water reactors.

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ited work authorization on the Vogtle site; both were achieved in August 2009. At press time, design certification and the COL are expected to follow in late 2011, and Southern anticipates fulfilling its final licensing requirement in late

2015. “[The new process] allows for public input early,” Thomas says, “and essentially addresses all safety concerns on the front end before major safety-related construction begins.”

In the United States, a better licensing approach has dovetailed nicely with a standardization of design. While nuclear power plants in the past contained common technologies, overall plans were varied. Now, though, prospective builders have the option of choosing designs pre-approved by the NRC—such as Westinghouse’s AP1000.

The Vogtle units will be the first in the United States to be licensed to operate using the AP1000, a Generation III+ two-loop pressurized-water reactor. “It incorporates fewer moving parts and uses natural forces like gravity in its safety systems,” Thomas says. Compared to earlier-generation pressurized-water reactors, the AP1000 is a model of efficiency. It uses half as many safety-related valves, more than a third fewer pumps, and between 80 and 85 percent less safety-related piping and control cable. The technology relies on natural heat flow for cooling, hence its name—AP stands for Advanced Passive. Its modular design is also less expensive to build, partly because it uses existing technology. Standardization and type licensing will help to further reduce time and cost of construction.

Still, there have been a few hiccups in the design process. After the NRC approved the initial design in 2005, Westinghouse submitted some modifications that raised the NRC’s concerns.

Most notably, a critical feature of the AP1000 is its containment structure: a freestanding, 130-foot steel dome surrounded by a concrete shield and topped with a tank of emergency water. The NRC questioned the durability of the shield building, asking whether it would be strong enough to survive a disaster, natural or otherwise (think earthquakes, hurricanes, or airplane collisions); critics have argued that

nuclear’S BIG comeback uclear is gaining ground outside the United States, too. New plants are N under construction in Canada, Argentina, France, Finland, Slovakia, Iran, China, India, Japan, South Korea, Pakistan, and Taiwan.

Sweden Russia

Poland Nuclear reactors Planned/propsed reactors Operable reactor Reactor under construction Planned/propsed reactor

Czech Republic

Slovakia

Germany

Finland Lithuania

Netherlands

Belarus

Belgium

Ukraine

United Kingdom

Kazakhstan China

Canada France

North Korea

Turkey

United States

Japan

Armenia

Spain South Korea Switzerland Italy

Mexico

Vietnam

UAE

Slovenia

Thailand Egypt

Hungary Brazil

India

Indonesia

Israel Romania Bulgaria Bangladesh Pakistan

Argentina

Iran South Africa

radiation would be released in the case of an accident. Westinghouse has completed additional testing and analysis reports, though, and the NRC expects to undergo overall design certification review in September 2011.

And while the Vogtle plant will serve as the US nuclear industry’s reference plant for the AP1000, the China National Nuclear Corporation (CNNC) already has four of the units in development: two at the Sanmen Nuclear Power Station in Zhejiang, and two at the Haiyang Nuclear Power Plant in Shandong. Between both sites, there are a total of six units planned.

Construction on those projects, estimated to cost a combined $8 billion, began in 2008, which puts them about two years ahead of the Vogtle additions. In a video project update for Vogtle Units 3 and 4, Cheri Collins, Southern Company’s general manager of external alliances, states that Southern Nuclear signed a memorandum of understanding with CNNC, establishing expectations for sharing information and outlining future interactions, so that the nuclear projects will benefit each other.

A Matter of Security nuclear power continues to divide the court of public opinion. Proponents laud it as a clean, sustainable energy source that decreases

American dependence on foreign oil. It produces zero carbon emissions or greenhouse gases, which gives it a competitive edge against coal and natural gas—which would become particularly important if Congress were to pass climate-change legislation.

Opponents, on the other hand, consider nuclear power as dangerous and unpredictable.

Nay-sayers argue that nuclear poses health and environmental risks which outweigh its rewards—especially because nuclear waste can be harmful for more than 1,000 years. Likely adding to the uncertainty: the federal government’s plans for a national repository for that waste have stalled. More than a decade ago, President George W. Bush approved a site in Yucca Mountain, Nevada as the location for nuclear waste storage. No storage facility has been built, and in 2009, President Barack Obama announced that the site would not be used for nuclear waste storage. For now, the Vogtle plant’s nuclear waste is being stored above ground in concrete cylindrical containers. The firm says the containers are safe, and that they serve as radiation shields.

When asked about these and other safety concerns, Thomas maintains that the company takes a proactive approach toward security.

“Southern Company has safely operated nuclear energy plants for more than 30 years,”

she says, highlighting the company’s adherence to NRC regulations, as well as state and local procedures. These regulations include four major safety systems with varied functions: to monitor reactor conditions; to quickly shut down a reactor and stop the fission chain reaction; to control reactor pressure and cooling of fuel (that is, to continue carrying away generated heat following a reactor shut-down); and to contain radioactivity in the event of an accident. Federally licensed operators receive extensive training, and all personnel are subject to background checks. “Many of our plant-operating procedures include even more conservative measures than are laid out in the regulations,” Thomas adds.

According to Thomas, Southern believes that nuclear power provides the most cost-effective, reliable, and environmentally responsible fuel source today—and staffers are excited to move forward with the construction of Vogtle Units 3 and 4. At press time, cranes had been delivered and excavation had begun on Vogtle’s proposed site for the new units. And by leveraging government dollars and a more streamlined licensing process and design standardization, the company hopes to prove that navigating nuclear has become much more simple. EIQ energyinternationalquarterly.com | may/june 2011

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SOLAR IMPULSE

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energyinternationalquarterly.com | may/june 2011

SOLAR IMPULSE

Guiding Light In an effort to better serve lighting-industry professionals, the international association of lighting management companies (nalmco) has

modernized its own image. EIQ’s profile of the organization and three of its member companies paints a clear picture: energy efficiency is the new standard.

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SOLAR IMPULSE

im frank knows that good

things happen when you mix dedicated professionals with forwardthinking initiatives. As president of the International Association of Lighting Management Companies (NALMCO), Frank works to provide the association’s members with a platform for connecting with other industry professionals. “We’re bringing together the innovative manufacturer with the contractor [who works more closely with the end] customer,” he says. And, thanks to recent rebranding efforts and a new certification program, NALMCO is more prepared than ever to provide its members with a nurturing and supportive professional community. All of these elements contribute to what Frank describes as “a very productive environment.”

Fostering a Community

a trusted source Jim Frank, president of NALMCO, hopes the association’s website will be used as an information source for members.

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NALMCO’s mission statement names networking as one of its main values, and the association’s 57th Annual Convention and Tradeshow in October 2010, held in Cabo San Lucas, Mexico, provided the perfect opportunity for members to meet and compare notes.

Frank is proud of the relationships that NALMCO members are able to maintain with one another. “I think that our events solidify what are already strong relationships,” he says. “You can put a face to the name [of another lighting professional who lives] a thousand miles away, and then you feel more comfortable picking up the phone and calling or sending an e-mail to keep that contact going.”

Frank says the recent economic climate was a huge conversation topic at the convention. “Our industry has seen numerous technological advances in the past couple of years, but it all hit at a time when the economy was slowing down,” he says. “We’ve seen a good portion of our business turn toward energysaving projects. Since the economic slowdown made our industry more competitive, it’s made life very interesting for NALMCO members.”

Despite the challenges, NALMCO members are sticking together through the hard times. “We’re getting hit from a lot of different angles these days, but

energyinternationalquarterly.com | may/june 2011

that’s nothing special—there are always challenges,” Frank says. “Many small-business owners that are members of NALMCO thrive on those challenges, and they are a like-minded group who are enthusiastic about sharing their experiences with each other.”

NALMCO provides a place for contractors to meet and brainstorm strategies for solving the problems they face in their individual markets. “The interaction between contractors was very important back [when NALMCO was founded, in 1953],” Frank says.

“They were separated by distances, and for them to get together and talk about their industry, talk about business and business problems, and bring that back and try to be better, that was important.” Over the past 20 years, the association has expanded its role— it’s currently serving not only as a place where professionals can network and troubleshoot, but also as a voice in the lighting industry. “We believe we have a strong voice and message, and we’re a good resource for professionals in the lighting industry or users of lighting systems,” Frank says.

Modernizing the Brand

In recent years, the association has been working hard to increase its visibility with rebranding efforts that aim to bolster the NALMCO name and reputation. Its website, which Frank says members hope will become an information source, now invites visitors to check out the new look—a fresh logo graces the homepage. The association also has a new tagline (“The standard for lighting-management quality since 1953”), and Frank says it’s composed of more than just buzzwords. “Being the standard, emphasizing quality—these are very important to us,” he stresses. The goal is to strengthen outreach efforts so that people are able to trust NALMCO as a resource.

“Nonprofit trade associations are there to serve members, and it’s where we focused our marketing efforts,” he says.

SOLAR IMPULSE

One important component of NALMCO’s modernization efforts is a new certification program, the Certified Sustainable Lighting Consultant (CSLC) certification and exam. A step above the association’s Certified Lighting Management Consultant (CLMC) certification, the new certification was designed with 21st-century lighting professionals in mind.

“When we talk about sustainability, we’re talking about meeting the needs of the present without compromising the ability of future generations to meet their own needs,” Frank says. The new certification, he explains, looks at modern issues like the life-cycle cost of products, the possibilities of making things using natural resources, methods of transportation, modes of packaging, and disposal practices. “You hear people say reduce, reuse, recycle, things like that.

We’re considering that with our lighting systems, as well,” Frank explains. Many lighting professionals are, for example, looking to retrofit older systems instead of installing new ones, or for ways to replace old components with more efficient models.

The new certification is a labor of love: over the last two years, thousands of hours have been poured into brainstorming, writing, researching, and testing the program. NALMCO members worked in tandem with Applied Measurement Professionals, Inc. (AMP), for professional-test development designed to put the most effective product into the hands of its members.

“We have an excellent product [in this certification],” Frank explains. “We are very excited about it.”

NALMCO members share Frank’s excitement, and CSLC has been enthusiastically received. Ask Jim Frank about it, and he’ll tell you the response has been tremendous. “This is the first certification of its kind for the lighting industry, and it helps lead the way, which is what we want NALMCO to do,” he says. “It allows people to look at our industry differently, in a more responsible way, but we’re still not losing sight of the fact that lighting systems have a purpose, and businesses need to save money and operate properly.”

Looking Ahead

Despite a sleek new look, a more accurate tagline, and a new certification program that meets the needs of the lighting industry, NALMCO won’t be breaking with the core traditions that make up the foundation of its success. The association will continue to focus on recruiting new members, in order to strengthen the voice of the organization and to continue establishing it as the leader in the field of lighting management and maintenance. Somewhere down the line, Frank says, he’d like to see related associations band together with NALMCO to create an industry think tank. More people will benefit from more collaboration, he says, and adds, “We’re not politically motivated, but we’re aware of the impact we can have on certain legislative issues, or even perception issues— issues that affect the public.”

Frank believes that people are looking toward the future of the lighting industry with excitement. He says that public perception of energy-efficient technology has changed dramatically in the past decade.

With more and more people interested in going green, Frank knows that NALMCO has an opportunity to become a resource for professionals interested in meeting the demands for environmentally conscious products and services. So despite the bleak forecast some economists are projecting, he insists that there is interest in moving forward.

Frank is optimistic about the future, and not just because his organization is steadily building steam.

It’s also because, after decades in an industry grounded in illumination, he can see quite a few things clearly for himself: “We have to remind ourselves that we are resilient Americans, and that we have worked our way out of difficult situations before,” he says. EIQ — carolyn dorant

Signature style An updated logo and slogan are products of NALMCO’s recent rebranding efforts. The association also created a new certification program, which focuses on sustainability.

Generation Next

colorado lighting, inc. is a family business—

and its new generation of leaders is focused on controlling growth and increasing efficiency

S

ince it was founded in 1977 by Vic and Norma Frank, Colorado Lighting, Inc. (CLI) has been a family business. Vic and Norma’s children both play active roles in the company’s operations—their son Chris Frank acts as the vice president of operations, while daughter Robin O’Dorisio handles the marketing aspects.

Now that CLI is in its second generation, Norma maintains that the family business is poised to undergo a period of controlled growth that will “guarantee clients the same personal [and] professional treatment that they have all become accustomed to over the years.”

Chris explains that clients expect a personal touch from the Denverbased firm. “We are not about a prescriptive approach for customer’s needs,” he says. “We evaluate each customer individually and then formalize an energy-savings plan that is unique for their specific requirements.” The company’s projects run the gamut from indoor commercial and industrial facilities to outdoor lighting. It has also partnered with energyinternationalquarterly.com | may/june 2011

47

SOLAR IMPULSE task lighting Randy Molinaro, Colorado Lighting’s electric manager, works on an energy-efficient high-bay fixture.

utility providers to supply lighting redesign for several businesses.

As a major force in the Colorado energy sector, CLI’s foundation is built on recognized industry certifications as well as continuous employee training and development. “We have paved the way for our customers to see [our employees] as leaders in providing sustainable energy savings,” Chris explains. “Our commitment to continuous improvement also puts us on the cutting edge of technology usage.” Such services include GPS tracking and dispatching; customer monitoring and metering of energy usage and savings; lighting controls that monitor demand, daylighting, and occupancy; and an online access system that allows the customer to always be in contact with current projects or service requests via the CLI website.

In order to enhance the efficiency of its customers’ lighting systems, the firm specifies which products produce the greatest energy savings while providing maximum light output. CLI installs new lighting products and maintains those systems for continued efficiency.

Colorado Lighting is interested in more than just serving its current customers. “We are dedicated to pursuing research in all aspects of lighting,” Chris says, “[our interests range] from proven technologies to new advances in lighting.” Working with manufacturing partners as well as industry organizations such as NALMCO and the Illuminating Engineering Society of North America (IESNA), CLI strives to create and improve industry standards that can be utilized by anyone interested in providing quality solutions in the world of lighting.

For example, a recent research project found CLI partnering with IESNA, NALMCO, and the EPA to study luminaire dirt depreciation. This study—which involved more than 200 sites across the United States, ran for more than four years, and gathered data from 3,200 tests—validated scientific data to support a change in design and maintenance standards that can collectively save 10 percent of common expenses (ranging from $27 to $36 billion per year) to equal a potential reduced cost of $2.7-3.6 billion per year.

“This research is truly designed for the greater good of the industry,” Chris says, “and Colorado Lighting is dedicated to pursuing such research.”

Currently, Colorado Lighting is working with NALMCO to create a maintenance procedure for LED 48

energyinternationalquarterly.com | may/june 2011

lighting, tying in light output to life of product. It’s just another example of CLI’s commitment to energy efficiency, and it showcases the company’s environmental focus.

In terms of its future goals, Chris says that CLI will continue to build upon its current achievements.

“We have a commitment to new advances in energy savings and to highly trained employees who are capable of installing, commissioning, and maintaining these state of the art systems,” he says. “That has definitely shaped the strategic planning for the firm.”

—tyler coates

Colorado Lighting: NALMCO membership JOINED IN: 1984 REASON FOR JOINING: Another NALMCO member encouraged the firm to research the association.

BENEFITS OF MEMBERSHIP: The firm’s involvement with NALMCO has allowed staff members to stay up-to-date on manufacturing trends and product technology within the lighting industry.

Keeping Pace regency lighting’s Judah Regenstreif says the light ing industry is evolving at an incredible rate—and that NALMCO helps the company stay competitive

D

ecades ago, the lighting industry was simple. The business revolved around the straightforward illumination of spaces. Today, though, lighting is seen as a vehicle for lowering operating costs, working towards sustainability goals, improving the appearance of retail spaces, and boosting worker productivity.

“Nowadays, it seems like everybody is interested in looking at newer lighting technologies, whether that means going from T-12’s to T-8’s, incandescents to compact fluorescents, halogens to ceramic-metal halide, or ceramic-metal halide to LEDs,” explains Judah Regenstreif, the vice president of national sales for Regency Lighting. “Everyone is looking to save money and reduce operating costs.”

All these burgeoning trends give Regency a big opportunity to provide solutions to its customers. The firm works to inform clients of material savings, energy reductions, and rebates—without sacrificing the aesthetics.

Another notable development? Clients are increasingly concerned about their environmental impact—and they come to Regency already educated about how they can green their lighting systems. “Customers want to know how they can reduce their carbon footprint, which products they can recycle, and how they can reduce their energy consumption,” Judah says. “Most have become much more informed about the environmental impact of the products they use in their stores, which has forced Regency to become much more aware of environmental trends.”

A family-owned and -operated company, Regency Lighting has its finger on the

Nu Vue Lighting is an industry leader in providing “green” lighting solutions, supplying superior products comprised of the most advanced technology and highest-quality components available on the market today. We specialize in high efficiency LED and Induction lighting products to meet a wide array of indoor and outdoor lighting needs.

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         

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SOLAR IMPULSE

pulse of the industry. Lighting designers are certified through the National Council on Qualifications for the Lighting Professions; the firm has five LEED-accredited professionals. And, in order to bring a higher level of professionalism and expertise to the sales department, the entire Regency sales team has been tasked to complete NALMCO’s Certified Lighting Management Consultant certification.

Regency Lighting demonstrates a similar level of diligence when selecting product lines, so it’s only natural that the firm chose to partner with innovative and cutting-edge manufacturers like Osram/Sylvania, Philips Lighting, CREE, NuVue, and Janmar. “We want to bring our clients the best proven technologies,” Judah says. “There are hundreds of companies popping up all over the world, claiming they have the latest and greatest products, oftentimes backed by warranties that exceed the life of the company selling the product. Regency has spent the time vetting out which companies are viable and which are not.”

Like every industry, the economic climate has affected the lighting industry. “We’re seeing a dramatic shift away from new store build-outs and a move toward retrofit opportunities, or store refreshes to reduce operational expenses within each of our customer groups,” explains Isaac Regenstreif, vice president of operations for Regency Lighting.

all in the family Brothers Judah and Isaac Regenstreif bring a fresh perspective as the newest generation of principals in their family’s business, Regency Lighting.

Fortunately, despite the overall downturn in the construction industry, numerous opportunities exist to reduce operating costs through lighting. “We’ve been pleasantly surprised by the amount of customers who are still willing to invest in their stores, despite the economy, knowing that there’s an overall return on their investment.”

The Regenstreif brothers have seen the business that their father started nearly three decades ago thrive.

“Sadly, there are millions of people who are out of work right now, while we are in an industry that is growing and is very dynamic,” Judah says. “We’re grateful for the opportunity to be working in the lighting industry.”

—sarah lozanova

Regency Lighting: NALMCO MEMBERSHIP JOINED IN: 2004 LOOKING FOR: Networking and educational opportunities BENEFITS OF MEMBERSHIP: Staffers have become better educated on recent developments in the maintenance industry, developed additional partners for its maintenance business, and built increased awareness through lighting certification and training programs.

A Message from Nu Vue Lighting Nu Vue Lighting is a leading manufacturer of high-efficiency lighting solutions, specializing in innovative LED and induction products that consume up to 90 percent less energy without compromising light quality. We are committed to using the most advanced technology available to provide the market with products of superior quality that meet or exceed DOE standards. Nu Vue is proud to be a preferred supplier of Regency Lighting and is thankful for their continued support and partnership.

Everything Is (Efficiently) Illuminated ge lighting’s ESCO Program provides efficiency retrofits for

corporations looking to save energy and money

G

rowing public awareness about the importance of energy conservation is leading many Americans to make eco-conscious choices— whether that means lugging home the week’s groceries in a reusable canvas tote or choosing sustainable materials when building a new home. But can large corporations, organizations, and government agencies also step up their energy-saving

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strategies? According to Lou Mane, Energy Service Companies (ESCO) sales development manager for GE Lighting, the answer is yes—conglomerates can do much simply by seeking more efficient lighting.

“In today’s economic environment, many public and private organizations are focusing on reducing costs and increasing energy efficiency,” Mane explains.

“Companies are scrutinizing ways to cut energy usage associated with a building’s greatest power loads— lighting, heating, air conditioning, and processes.”

Mane argues that the issue is much bigger than the

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SOLAR IMPULSE

the Benefits of a Retrofit

Here’s a rundown of possible perks for GE customers who’ve had a lighting retrofit performed by qualified service providers. a SAVE MONEY Clients have reported up to $12,930 in electricity savings per year.

s SAVE ENERGY Energy retrofits can save up to 80,800 kWh of electricity per year—the equivalent of the annual CO2 emissions of nine US cars.

GE LIGHTING: NALMC0 membership JOINED IN: 2008 LOOKING FOR: Strong networking opportunities BENEFITS OF MEMBERSHIP: Aside from the networking opportunities, GE staffers who are also NALMCO members benefit from, among other perks, member pricing for attending events, a free subscription to the quarterly Lighting Management & Maintenance (LM&M) magazine, and member pricing on all NALMCO certifications and exams.

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cost of utilities. “A reduction in energy can also [shrink a nation’s] carbon footprint,” he explains. “In essence, saving energy costs associated with electricity, natural gas, heating oil, or steam can result in an immediate proportional reduction of CO2 and greenhouse gases.”

In 2009, GE rolled out a program dedicated to helping large groups save money while reducing their carbon footprints. The program provides a full-service approach to Energy Conservation Measures (ECMs) by establishing alliances with a number of Energy Service Companies (ESCOs); the latter provide customers with specialized assistance in creating strategic, large-scale plans for energy savings.

“Through the program, GE aims to help customers explore energy strategies that take into account such factors as cost of light payback, return on investment, rebates, financing, and government incentives that can reduce investment costs,” Mane says. “All of these options include, but are not limited to, lighting.”

In return, the ESCOs are listed on GE’s website in the network of service providers and given training and resources they wouldn’t have otherwise. “The program also benefits the service providers by better supporting their efforts with dedicated support teams, training, online tools, and possibly with co-branded marketing assistance,” Mane says.

The ESCOs are selected by GE according to specific criteria, so that not every service provider can become a member of the program. They must be credible, reliable, and able to fully support GE’s customers’ needs. “ESCO/Service Providers are chosen for not only their technical offerings, but the coverage they provide,” Mane explains. “For instance, in the case of retail or multi-locational commercial firms, a service provider should be chosen so that they satisfy the enduser’s goals and can provide adequate geographical coverage for all of their locations. Many of the providers can offer regional or, in some cases, national coverage for their customers.”

Before a service provider makes recommendations, the members have usually done their homework.

This may mean performing detailed background-data

energyinternationalquarterly.com | may/june 2011

collections, such as finding out a customer’s bottom line, knowing the cost of energy, visiting the facility or conducting an energy audit of the facility, identifying opportunities for energy savings, and finding out what the customer requirements are for payback or ROI. The service provider also considers a customer’s goals and objectives for overall energy savings. Once the ESCO evaluates the customer’s goals and energysaving opportunities, the service provider can offer a set of recommendations for energy savings across the company or organization.

Technology plays an important role in a service provider’s energy-conservation projects, and much emphasis is placed on newer technologies that provide energy reduction, longevity, and cost effectiveness. GE’s recent technological advancements, such as LED-lighting products, reduce energy levels and result in lower energy bills, while increased lamp-life technology results in reduced maintenance costs. The combination of lower energy cost and reduced maintenance can drive favorable economic project paybacks. Lighting products that fall into these categories include LED parking-lot lighting, LED refrigeratedcase lighting, LED signage, and LED screw-in spot lamps. Clients can also use enhancements, such as dimmable or bi-level control ballasts for fluorescent fixtures, to up the efficiency of existing light systems.

Once a company has taken advantage of the service provider’s energy conservation and lighting recommendations, the financial and environmental impacts for just that one customer can be astounding. “For example, [consider] a retail store that was lit 12 hours a day, seven days per week, using T12 fluorescent lamps and electronic ballasts,” Mane explains. “Energy rates were averaging $0.16 per kWh. The service provider analyzed the store and provided a basic retrofit where 150 fixtures were relamped from 4-lamp T12 lamps to 150, 2-lamp T8 lamps with electronic ballasts, including a reflector change.”

The ROI from the retrofit, compared to the meager fee it cost to perform it, says it all. “The project leveraged local rebates, offsetting the cost of the project by 30 percent, and provided an approximate simple payback of one year. Also, the store qualified for additional federal tax breaks afforded by EPAct, which allowed the retailer to reduce its taxable income and reduce its overall tax burden that year,” Mane says.

As a result, the retailer reduced its energy consumption by over 80,800 kWh per year, which equated to $12,930 in annual electricity savings. Mane explains that a company doing a retrofit reduces carbon emissions on the US grid by 49 metric tons annually, which is the equivalent of taking nine cars off the road in the US. As it creates similar environmental and financial success stories for a large number of GE’s commercial, government, and industrial customers, the ESCO program has expanded to more than 65 service

ELECTRICAL • MAINTENANCE • SOLAR • LIGHTING • CONTROLS

members in more than 100 locations throughout the United States.

The program will likely expand internationally in the near future. “Our plans are to replicate our best practices and efforts globally,” Mane says. “In North America, we are working with the Canadian teams to launch a similar program for 2011.” The firm is also looking to expand the program into Europe and Asia.

As the ESCO program grows, it helps GE achieve its larger strategic mission, which is to help other companies achieve their goals. “GE’s goal is to assist its vertical-market customers with energy options to help them reduce costs, mitigate risks associated with energy upgrades, and help achieve their environmental goals,” Mane says. “We want to help customers meet and exceed their energy goals, specifically in commercial, property-management, government, institutional, retail, healthcare, and industrial settings where energy savings can provide a strategic advantage.”

—kelly matlock

A Message from Aetna Lighting Corp.

For nearly a century, Aetna Lighting Corp. has provided the latest in commercial lighting technology backed by the highest level of customer service and a commitment to excellence. Congratulations, GE. We salute your breadth of knowledge, years of experience and dedication to teamwork.

A Message from Eco Lighting Eco Lighting congratulates General Electric on this new business endeavor. We stand ready to assist them and their customers in energy-efficient lighting upgrades.

A Message from Lime Energy Lime Energy shares the GE vision that businesses can benefit the environment through energy efficiency, while also reducing overall costs to boost profit. As a nationwide member of the GE Energy Service Provider Program, Lime Energy brings 30 years of experience and 2.5 billion square feet of completed projects to this team effort. America’s corporations and small businesses count on us to evaluate, design, and install the best solutions that reduce energy costs, slash maintenance expenses, and provide a better building in the process—while keeping a solid focus on the financial return.

A Message from Colorado Lighting, Inc. Colorado Lighting, Inc. is excited to be participating in GE’s newly established ESCO program. GE’s goals to promote energy efficiency are aligned with CLI’s emphasis on providing the latest energy-efficient technology to help our customers meet their reduction goals as well as giving them the opportunity to promote sustainability in their organization.

NOVATECH

ENERGY SERVICES GROUP, INC.

At NovaTech, • a nationwide leader in lighting retrofit services we guaranElectrical Maintenance • Solar tee you can see green in going green. These days, your company success is Controls measuredLighting not simply in•profi tability, but also corporate reputation gains.

NOVATECH

Or what’s known as the “triple bottom line” — how a company’s performing fi nancially, as well as its impact on the environment and society. Long ENERGY before “green” was fashionable or vogue,SERVICES NovaTech wasGROUP, leading the INC. way with intelligent lighting systems that dramatically reduced energy consumption, and delivered an equally impressive impact on energy costs. If you’re going green with your energy management, go with the firm that’s led the way for companies looking to get their lighting out of the dark — and their bottom line further in the black. is on the line, every time. And for you that results in unsurpassed convenience, unmatched value and uncommon integrity.

Electrical • Maintenance • Solar Lighting • Controls

At NovaTech, a nationwide leader in lighting retrofit services we guarantee you can see green in going green. These days, your company success is measured not simply in profitability, but also corporate reputation gains. Or what’s known as the “triple bottom line” — how a company’s performing financially, as well as its impact on the environment and society. Long before “green” was fashionable or vogue, NovaTech was leading the way with intelligent lighting systems that dramatically reduced energy consumption, and delivered an equally impressive impact on energy costs. If you’re going green with your energy management, go with the firm that’s led the way for companies looking to get their lighting out of the dark — and their bottom line further in the black. is on the line, every time. And for you that results in unsurpassed convenience, unmatched value and uncommon integrity.leader in lighting retrofit At NovaTech, a nationwide

services we Visit us online at www.novatechesg.com guarantee you can see green in going green. These days, your company success is measured not simply in profitability, but also corporate reputation gains. Or what’s known as the “triple bottom line” — how a company’s performing financially, as well as its impact on the environment and society. Long before “green” was fashionable or vogue, NovaTech was leading the way with intelligent lighting systems that dramatically reduced energy consumption, and delivered an equally impressive impact on energy costs. If www.novatechesg.com you’re going green with your energy management, go with the firm ▲ ENERGY ▲ ENVIRONMENT TECHNOLOGY that’s led the way for companies looking to get their lighting out of the dark — and their bottom line further in the black. is onthe the line, Aetna Corp. provides companies throughout every time. And for you that results in unsurpassed convenience, Northeast the latest in commercial lighting unmatched value and uncommon integrity.

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Services Lighting Audits Group Re-lamping Energy Saving Retrofits Maintenance & Repair Troubleshooting Utility Rebates/ EP Act Prep

NMLS, INC provides dedicated project managers, field supervisors, and highly trained lighting technicians to see all projects through completion. We have Master Electricians and Certified Engineers on staff as well.

We operate exclusively out of our corporate office to allow for one point contact to resolve all customer needs, purchasing, sales, and service requests.

Quality and service are our top priorities, therefore we have partnered up with major suppliers to provide the highest quality manufactured parts in the nation.

NLMS Currently Services: Retail Industrial Manufacturing Distribution Centers Office Buildings Conference Centers

Call Centers Banks Hospitals Schools Parking Garages And More...

Many businesses are being affected by the pressure of rising energy costs on overall profitability. NLMS has partnered up with national retailers, distribution centers, manufacturing/industrial plants, hospitals, schools and many others reducing energy costs by as much as 20-50%.

Our comprehensive solutions begin with a consultation and facility audit. We can provide all materials, labor, recycling, and trash disposal. We have the capabilites to prepare tax rebates and Federal EPAct filing. We can custom build programs to meet your specific needs; no project is too big or small.

NLMS is also a 100% woman-owned business, registered with the WBENC, which typically brings additional incentives to the customer, where applicable.

field notes

ASI At a Glance

An Unlikely duo When salesman Josh Mitten met Amish business owner Elam Beiler, the two forged an unlikely— but profitable—partnership

A

decade ago, solar power was a hobby for Josh Mitten. He was working in sales and business development, and he’d spend his spare time dabbling with his own mad-scientist solar projects. For example, he mounted solar panels on the roof of an equipment trailer to see how and if they worked. Solar was his passion, but it wasn’t his profession.

“It’s not as if I could go down to the temp agency and tell them to sign me up as a parttime solar worker,” Mitten recalls. “Eight or ten years ago, that kind of work didn’t really exist. I was self-educated in terms of solar.”

Then, in 2008, he met Elam Beiler—and everything changed. Beiler, who is Amish, had discovered the solar business while searching for a more efficient method of charging the batteries for his carriage. He read up on solar panels, bought one, and voilà—the batteries were ready to use. In no time, Beiler launched a company, Advanced Solar Industries (ASI), which offers similar energy solutions to local Amish and Mennonite communities. By the late 1990s, Beiler’s company had branched out beyond its traditional markets and was installing solar-energy systems for off-grid cabins and country homes.

Mitten was helping to plan a large clean-energy fair when he first met Beiler. He called on ASI to see if the company would be interested in

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participating. He and Beiler wound up speaking for several hours. At the end of their conversation, Mitten was offered the opportunity to join ASI and become part of the solar-power industry—and that’s exactly what he did.

Mitten’s timing couldn’t have been better.

With all the talk of climate change and clean energy, solar power soon became mainstream.

Now, all around the country, more businesses, large corporations, and homeowners are turning to solar for its long-term cost benefits and its energy efficiency.

a Sales/support/manufacturing s Joint ventures d Suppliers/other

Location: New Holland, PA Founded: 1995 Employees: 32 Specialty: Design, sales, and installation of residential and commercial solar-energy systems

That’s where ASI comes in. The New Holland, Pennsylvania-based firm sells, designs, and installs solar systems for residential and commercial clients. ASI works with only two manufacturers, MAGE Solar and Sun Power, because Mitten says they are two of the best, most-established companies in the industry.

Much of the design process involves sizing a system to usage, taking dimensions, and producing CAD (computer-aided design) drawings. For commercial projects, the design also involves full-scale electrical drawings, struc-

tural certifications, and building permits. And, because no two systems are alike, there’s no one-size-fits-all approach.

“We listen and try to determine what the client’s goals are,” says Mitten, who is now the company’s CEO. “Then we build a system to meet those goals.”

Mitten says that there are two ways to save with a solar-energy system. One is the actual dollars saved by canceling the monthly electric bill. The other comes from Renewable Energy Credits (REC). A certain amount of every

state’s energy must come from renewables.

Rather than installing solar systems or wind turbines themselves, utilities and power companies usually purchase RECs through energy brokers. In turn, brokers buy clean-energy certificates directly from homeowners, package them together as RECs, and then sell them.

On a recent $1.7 million golf-course project, for example, ASI installed a 303 kW system that will offset 80-85 percent of the course’s power usage. Between its electrically powered sprinkler systems, clubhouse, and restaurant,

Off the Grid For the past year, ASI has been the only company in Pennsylvania not connected to a utility. “We feel so strongly about energy independence that we choose to stand alone in our energy production,” CEO Josh Mitten says. Instead of the grid, its power is stored in a 6,000-pound battery bank—although there’s a back-up generator for emergencies. The battery bank receives power from a wind turbine and solar panels, and provides power to 15 offices and 15,000 square feet of workshop, warehouse, and showroom space. Existing off the grid has created some issues, however. If there’s a problem with one of the electrical components in ASI’s own mini-grid, the phones stop working, the Internet goes down, and the lights go off. For that reason, the company is looking at connecting to the grid in some minor fashion, while still producing most of its energy independently. “It’s not just about the business and the bottom line,” Mitten says. “It’s the right thing to do.”

the course produces about 350 MW per year.

Once the new system is paid off, the electricbill offset will be approximately $30,000 annually, and income generated through the REC program will ring in at about $110,000.

“These systems are becoming financially more attractive to businesses and homeowners,” Mitten says. “The offset in electrical and REC income typically pays off the loan in five years.”

Still, solar-energy systems require a large up-front investment. An average residential system from ASI can run about $40,000 to $45,000, while commercial systems range from $100,000 to $4.6 million. Even so, the cost hasn’t hampered company’s growth. In 2009, the company completed $3.4 million in contracts. Last year, that number spiked to $19 million.

“The challenge is the up-front cost,” Mitten says. “As soon as the banks realize that the solar systems last for 40 to 50 years and start financing these systems as investments in their own right, it will be doable for everyone—and their brother—overnight.” —cristina adams

FIEld Notes

Energy International Quarterly

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57

The Turbine in My Backyard

tried and true Renewable Energy SD is the only turbine provider to offer 50-meter, three-leg lattice towers.

Similar towers have been used for meteorological and communications purposes for more than a decade.

FIEld Notes

Renewable Energy SD installs wind turbines on client’s properties, allowing them to take control of their own power supply

W

At a Glance Location: Minneapolis, MN Founded: 2009 Employees: 60 Specialty: Small to mid-sized wind turbines

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energyinternationalquarterly.com | may/june 2011

ind energy is among the most cost efficient of alternativeenergy sources. That’s one of the reasons Shawn Dooling, president of Minneapolis, Minnesota-based Renewable Energy SD, aims to bring wind closer to his clients’ homes—into their backyards, in fact.

Renewable Energy SD specializes in the production and installation of mid-sized wind turbines, which are between 40 kW and 150 kW in strength and 50 meters high. These turbines are placed not on an official wind farm, but on the properties of individual landowners. It’s just the type of innovative approach that wind energy needs to reach critical mass.

The approach allows the individual to monitor both the amount of energy generated and consumed. In many cases it’s quite profitable.

“Many of our clients produce more than they use, so they get a check at the end of the month,” Dooling says.

Once a customer signs with Renewable En-

ergy SD, members of Dooling’s team head out to the property to take geological samples of the soil. Even though the energy source is up in the air, the key to an effective turbine, like a home, is its foundation. The soil samples tell engineers how much concrete to pour and how much rebar to use.

The procedure is an essential part of every Renewable Energy SD project. Dooling has seen soil samples with different readings, even though they were pulled only a few hundred yards apart. “You really have to know what you’re doing and do it right,” he says. “That extra thousand pounds of concrete can make a big difference in the performance of the turbine.”

Renewable Energy SD then begins the process of building the turbine. Between 90 and 120 days later, the turbine is operational because Renewable Energy SD orders and assembles the necessary parts and equipment from its two main suppliers: Polaris America, out of Columbus, Ohio, and Enertech, near Wichita, Kansas.

One of the firm’s most popular models can produce the same amount of energy as 170,000 pounds of coal over a 12-month period.

Dooling is proud to mention that his company only buys from American-owned and -operated companies. “We think it’s important to stimulate the economy by buying from American suppliers,” he says.

Renewable Energy SD has been keeping its suppliers busy. In 2010, its first full year of operations, the company has completed 125 projects.

Dooling confesses that the company has exceeded expectations. “We thought it would take a little time to get referrals, but we’ve had a lot of customers refer their sons, daughters, and neighbors to us.”

There’s little doubt that customers are satisfied with the product. The typical turbine lasts between 20 and 25 years, and one of the firm’s most popular models can produce the same amount of energy as 170,000 pounds of coal over a 12-month period. Once the turbine has been paid in full (it takes most customers between five and seven years), it can become an engine of profit.

But what makes Renewable Energy SD a success is the level of customer service provided before and after installation. Prior to installation, the presentations to potential customers are, “built around the facts,” Dooling says. He

goes on to say, “We show what government incentives are available, and, because of the short turnaround in production, we can predict costs very accurately. We explain what the expenses will be, and what customers can expect for a return on their investment. We handle all the permits that are needed.”

Once the turbine had been installed, Renewable Energy SD provides a five-year partsand-service warranty. Down the road, the firm will help its clients refurbish their turbines, which can mean an additional 20 to 25 years of life—and profitability.

“People want to do the right thing for the environment, and they like the idea of producing green energy,” he says. “But ultimately, there has to be a return on investment. Once people see that we offer both, it becomes a question of ‘Why wouldn’t you [buy a turbine]?’” —shawn drury

FIEld Notes

Renewable Energy SD, LLC is the largest provider of turnkey solutions for cogeneration wind turbine projects of all sizes.

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We offer: • Financing • Leasing • Green Power Purchase [Where we own and maintain the turbine] All of our wind turbines are proudly made in America! energyinternationalquarterly.com | may/june 2011

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100 Years StronG For nearly 10 decades, Richardson-Wayland Electrical Company has provided stellar transmission distribution and substation services

At a Glance Location: Roanoke, VA Founded: 1913 Specialty: Transmission distribution and substation service

FIEld Notes

R

oanoke, Virginia-based Richardson-Wayland Electrical Company has been in business for nearly a century—and, armed with almost 10 decades of experience, the firm continues to excel today. Established in 1913, Richardson-Wayland is one of the oldest contracting companies in the United States. “Some services have changed over the years,” says president John Safarik, “but for the most part, [the company has] always been a transmission distribution and substation service provider.

We’ve been successful for nearly 98 years by meeting and exceeding customer expectations.”

Safarik admits that the years have brought challenges. For example, recent changes in the economy have affected Richardson-Wayland, but the company has been able to maintain a profitable stance while providing reliable services to its clients. The firm has also faced some regulatory challenges in its home state.

“Virginia is a right-to-work state, so there’s a lot of competition from non-union contractors,” Safarik says. “It makes things a little more challenging.” Still, the firm is an industry leader in its home state, where it counts Dominion Power as one of its major clients. Additionally, Richardson-Wayland has found ways to branch out geographically. It has one satellite location in Petersburg, Virginia, and another in Reading, Pennsylvania. “Our market has really spread from the Virginia area up to as far north as Maine,” Safarik says, adding that the 60

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northern office allows for the company to easily provide services to northern locations like Pennsylvania, New Jersey, and New York.

Over the past century, the firm has kept stride with technological advances. It has recently extended its umbrella of services to include fiberoptic technology. Though it accounts for a small percentage of business, Safarik says that the ability to install fiber optics makes RichardsonWayland a viable competitor. He explains that their fiber-optic work is usually project-based.

“Our main involvement is the installation of the

it’s electrifying Richardson-Wayland installs substations, like the one pictured here. The firm also provides transmission distribution services and fiber-optic work.

fiber on projects, and we generally get a subcontractor to do the splicing and testing, unless the client wants to do that on their own.”

If you’ve driven through the state of Virginia, you may have unwittingly interacted with a Richardson-Wayland project. One of the firm’s most successful endeavors stems from its traffic-signal division. “We provide service to the Virginia Department of Transportation (VDOT), to municipals, and to county govern-

Though it accounts for a small percentage of business, Safarik says that the ability to install fiber optics makes Richardson-Wayland a viable competitor.

ments,” Safarik says. “We’re doing the maintenance and new construction for three of the five VDOT regions: the Staunton District in the northwest, the Salem District in the southwest, and the Richmond District, which

was completed on time—despite an unusually extreme winter in 2010. “Winchester has been delighted with the work we did and has asked us to come back to work on additional projects for the city,” Safarik explains. He’s now looking

and building the reputation in those areas that we have built in Virginia,” Safarik says. It is still tough to gain business in the current economic climate. The American Recovery and Reinvestment Act has aided a bit; the firm is currently working on a project in Atlantic City, installing recloser devices into the city’s smart grid.

The firm is planning to continue to grow its offerings during its next century of business. Many Richardson-Wayland employees have expertise in the utility business. “A number of us have utility backgrounds and understand what the utilities would like to have and how they would like to interact with their contractors,” Safarik says. “It’s an advantage to a greater degree because we can understand the language; every business has its own language and utility is no different, and when you understand the language and what [clients’] needs are, it makes it much easier to meet and exceed their expectations.” —tyler coates

“We can understand the language [of the utility companies]; every business has its own language.” John Safarik, President includes the capital and the eastern-central region of the state.” The current contract with VDOT allows for projects to be completed with the utmost efficiency and with minimal problems. One of the traffic-signal division’s biggest success stories was installing a trafficsignal system in the historic downtown area of Winchester, Virginia. The $4 million project

for opportunities to find comparable success in the surrounding states.

Expansion into additional geographic markets is definitely on the horizon for Richardson-Wayland. “What I want to see for this company is for it to be more established in the northeast, being a bigger part of providing services to the utilities and cooperatives

FIEld Notes

Energy International Quarterly

PO Box 12648 Roanoke, VA 24027 (540) 344-3244 info@rwec.com

Experienced , Safe , On Time

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.

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- Storm Response - Transmission - Distribution - Substation - Traffic Signal - Communication - EPC

Since 1913, Richardson-Wayland Electrical Company (RWEC) has been providing electrical contracting services to municipal, utility and industrial customers. Our company was built on a firm foundation of honesty and integrity, values that are at the core of everything we do. When you engage Richardson-Wayland’s services you benefit from our legacy of delivering consistent results, safely and on time, for almost a century!

www.argos-rwec.com energyinternationalquarterly.com | may/june 2011

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At a Glance

Playing It Safe Northern Clearing Inc. is committed to protecting both its employees and the natural environment

Location: Ashland, WI Founded: 1966 Employees: 1,000 Specialty: Land clearing

FIEld Notes

I

n the modern energy industry, there are two surefire ways to botch a project: by violating safety procedures or by violating environmental regulations. That’s why Northern Clearing Inc. (NCI), an Ashland, Wisconsin-based land-clearing company, relies on strict internal regulations to protect both its employees and the natural environment.

“We’ve been able to triple in size over the last decade because of our commitment to safety,” says Ryan Korpela, superintendent at NCI. “In today’s energy industry, safety is the most critical client demand.” Many of the firm’s clients, such as Michels Power and MJ Electric, provide utilities with electrical construction services.

NCI takes its commitment to safety seriously—the firm maintains a staff of full-time safety personnel, and all its superintendents are OSHA 500 certified, a level that exceeds industry standards. Additionally, several of the firm’s employees are International Society of Arboriculture Arborist and Tree Care Industry Association Tree Care Safety Professional certified.

“The evolution of environmental law has been the single biggest change that NCI has gone through,” Korpela explains. “We deal with protected species, mitigate bird-nesting disturbances, and apply herbicides to invasive weeds.

It makes the job more complicated, but we have embraced it.”

Korpela says this positive approach to eco regulations has helped the business to thrive.

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paving the way Northern Clearing offers right-of-way clearing services, which aid in the installation of fiber-optic lines and pipelines, among other things. A cleared corridor is more accessible for construction crews. Post-clearing, the firm takes an environmentally responsible approach: it also offers right-of-way restoration services.

NCI has expanded its services and specialties to include wetland matting, mat washing, and invasive-weed control services. “There used to be a lot of different options for crossing wetlands [before more stringent environmental regulations were put in place],” Korpela explains. “Now, we have to really minimize our disturbance.”

The firm treads lightly on each project site through the use of mat roads, bridge crossings, and low-ground-pressure equipment. Wetland matting involves bolting timbers together to

create a temporary corridor for trucks. The mats mitigate the damage made by deep tire tracks and, though they add a considerable amount of complexity to a project, they reduce NCI’s overall environmental impact.

“It’s easy to disregard [environmental stewardship initiatives] if your corporate mindset isn’t clear and concise,” says Bryan Custer, director of sales and marketing for NCI. “We have been very progressive [about] adapting to new environmental procedures, equipment, and policies.” Custer says NCI staffers take pride

Eco-Safe Wetland Solution: Mat Roads Instead of plowing through this wetland site, which would marr the land with fourinch ruts and mounds of slop, NCI uses mat roads, which are designed to minimize impact on sensitive environmental areas.

The reusable mats are made up of 8” x 8” timbers that are bolted together and laid atop a mesh layer that keeps mud from oozing between the planks. A specialized machine, called a TimberPro Forwarder (above), both lays and removes the mats.

Once the project is complete, the mats are cleaned to help prevent the spread of invasive species from one jobsite to the next.

FIEld Notes

“We’ve been able to triple in size over the last decade because of our commitment to safety.”

Ryan Korpela, Superintendent

in the firm’s commitment to preservation, and the firm makes it a point to be proactive in anticipating new regulatory requirements.

Because NCI has completed projects in 36 states, employees are knowledgeable about diverse ecosystems and topographies, from grasslands to dense forests. Each job site has unique ecological considerations—some projects need to be scheduled around a specific species’ nesting season, while another region may mandate a buffer zone for sensitive animals. No matter the project location, NCI makes minimal envi-

ronmental disturbance to the ecosystem, and performs restoration work upon each project’s completion.

Over the past two decades, NCI has added a string of new services, including clearing work for fiber-optic lines, golf-course construction, pipeline recoating, and access-road construction. And, because of the diverse skills of employees and the variety of well-maintained equipment that the company possesses, NCI is able to complete unusually demanding projects. “We have the capability in personnel and

equipment to do large clearing projects under really tight deadlines,” Korpela says. “We [recently cleared] 52 miles of right-of-way in 26 days. Few other contractors could do that.”

NCI has increasingly become more involved with projects from start to finish, relying less on subcontractors. This, combined with the fact that the company is privately held, creates a consistency that is rare in the industry. It’s long been a family business, too—current owners Craig, Richard, and Todd Vernon are the sons of company cofounder George Vernon.

“Remaining a family-owned business provides a continuity of the character, integrity, and hard work that Northern Clearing was founded on,” Custer explains. “Even though there are more than 1,000 employees now, the owners still offer their personal touch and are heavily involved in all day-to-day operations—which is rare in a company this size.”

—sarah lozanova energyinternationalquarterly.com | may/june 2011

63

equipment innovations SWS has won awards for its innovative techniques and equipment. Its pressure-pumping equipment is in the lot shown below.

Reaching further Armed with patented advancements in hydraulic fracturing, Superior Well Services is helping clients extract oil and gas from hard-to-reach reserves

I

n 1997, Superior Well Services opened for business and rolled out two service centers in Pennsylvania. Today, the firm is the fourthlargest pressure-pumping company in the world, and a leader in developing techniques that allow energy-producers to extract gas from formerly inaccessible locations.

Dave Wallace, Jake Linaberger, and Rhys Reese (the company’s CEO, president, and executive vice-president, respectively) built the company from almost nothing. “We grew primarily [by] pull-through from our existing customers,” says Dan Arnold, vice president of sales and marketing. “One of our customers had a drilling program in Alabama and asked if we would we be willing to work for them in that part of the country. We began our first major expansion by traveling to Alabama and working on our customers’ respective wells in that area while living in motels and various other temporary arrangements. Eventually, we found a suitable location and opened a shop there.”

It also helped that Superior’s management had developed many time-honored reAt a Glance lationships within the oil-and-gas industry.

Location: “We have a plethora of extremely talented Indiana, PA people and were able to attract a great many Founded: of these individuals by virtue of our network 1997 of relationships,” Arnold explains.

Specialty: Superior Well has also contributed to the Oil and gas pressure pumping development of the hydraulic-fracturing

FIEld Notes

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process, which has become its primary business. Hydraulic fracturing, known as fracking, creates fractures in bands of rock beneath the earth’s surface—which allows energy producers to access oil and natural gas.

“The shale reservoirs really emerged in our industry with the advent of the Barnett Shale well completions,” Arnold says. “It was discovered that you could put massive hydraulic fracturing treatments on these shales and make very good economical wells. A growing percentage of the business that we conduct today is dedicated to shale reservoirs.”

Superior’s rapid growth is due in part to its roster of well-connected staffers, but the firm has also gained momentum from employee’s technical expertise. “In the early days in particular, there was a great deal of latitude for our new employees to develop, explore, and realize their full potential,” Arnold says. “Today, I’d rate our technical staff among the best in the business. All of our innovations have been motivated by our strong desire to make better wells for our customers. This fact is absolute—if our customers [have] better wells, our business strengthens as a result.”

Arnold’s evaluation is no idle statement. Superior Well was the 2010 winner of the Hart Meritorious Award for Engineering Excellence presented by Hart Energy Publishing, a leading voice of the global-energy community, for two of its innovative developments: an optical viewer for the evaluation of rock fabrics and fractures; and a recipe for fracking fluid, which creates openings in rock formations and allows access to oil and gas. The latter, which is recyclable, also won the World Oil award in 2009 for the best drilling, completion, and production fluid.

“I’d rate our technical staff as among the best in the business.” Dan Arnold, VP of Sales & Marketing

“The unique chemistry of this fluid enables our customers to reuse their frac-completion water, creating a substantial savings logistically and environmentally,” Arnold says.

These successes led to Superior’s recent acquisition by Nabors Industries, the largest land driller in the world. “We certainly will now have opportunities in the future to expand our business domestically and internationally,” Arnold says of the company’s acquisition

by Nabors. “It’s an extremely well-managed organization, and its exposure worldwide will only help us continue to grow.”

Superior Well Services also provides services in environmental reclamation, grouting construction services, industrial pressuretesting applications, and full turnkey services.

“We’re excited about our potential to capture synergies with Nabors Industries as a result of our acquisition,” Arnold says, “as well as the fact that they have indicated that they want to help us grow.”

—tom calarco

CONCERNING SHALE GAS DEVELOPMENT STRATEGIES, THERE’S SAFETY IN OUR NUMBERS. Kroff Well Services does two things: We keep your water safe, and We support a strategic alliance with Superior Well Services.

FIEld Notes

Superior Services » Hydraulic Fracturing: A process whereby an engineered, environmentally friendly fluid cracks the rock and extends the crack by hydraulically pumping; in many cases, the fluid contains strategically-placed proponents that enable the cracks to remain open after their creation » Cementing Services: The pumping of a cement slurry into a well that helps stabilize the well bore and protects freshwater zones; this isolates hydrocarbons in the well » Nitrogen Services: Sometimes fracking fluid is nitrogenbased; in this process, water and nitrogen gas are pumped with a surfactant that creates a foam similar in consistency to that of shaving cream » Wireline (open hole and cased hole): Open hole is an investigative process that measures formation characteristics.

Cased hole is typically used as a method to perforate the rock, creating an initiation point for hydraulic fractures

Our numbers speak for themselves. We have more than two decades of water performance expertise. We provide rapid, 24-hour turnaround with detailed water analyses from our advanced labs. We hold joint patents with SWSI on frac fluid designs and water remediation for shale gas fracturing systems. We maintain geochemical and water quality data on hundreds of wells to provide an unprecedented predictive base for frac fluid design, and for flowback and production brine water reuse.

The result is an efficient, affordable, high-performance solution for shale plays with our overriding commitment to keeping your water safe.

» Pipeline Services (pigging): Method with which to test and measure the integrity of pipelines » Completion Tools (TCP—tubing conveyed perforating): Explosive charges are placed in a well bore with tubing instead of electric wire line

412-321-9800 • kroff.com

energyinternationalquarterly.com | may/june 2011

65

A look ahead

flash the message

LED screens deliver advertising, weather updates, local news, shopping, or tourism information.

Street Lights Get Smart

good sense

ach LED lamppost communiE cates with the overall system through wireless motion sensors, which respond to activity.

Energy use can drop by as much as 50 percent when streets are empty.

sounding off

A more advanced media component plays music through a built-in sound system and can also broadcast severeweather warnings and crime alerts, such as “Amber Alert” kidnapping announcements.

Built-in cameras and listening devices can be used for police or security surveillance.

Photo: Carlos Arias Enciso

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energyinternationalquarterly.com | may/june 2011

Illuminating Concepts’ fixtures may look like classic light poles, but they’re outfitted with energy-efficient LED lighting, along with wireless sound and security systems.

Equipped with LED bulbs and wireless features, Intellistreets light poles—developed by Illuminating Concepts in Farmington Hills, Michigan—are overachievers in the world of outdoor-lighting systems. The energy saved over time with LED light—which requires a higher upfront investment than older systems like high-pressure sodium (HPS) fixtures, but is more efficient and longer lasting—can translate into significant returns on investment for municipalities. More and more cities (including New York and Los Angeles) are making the switch to LED-only street lamps, and Ron Harwood, Illuminating Concepts’ president, says Intellistreets systems can be customized to respond to a city or neighborhood’s budget, urban planning, or development needs.

The fixtures are enabled by motion sensors and connected through a wireless network. Each lamppost has the ability to individually dim or brighten based on the amount of activity around it. The level of light on an empty street, for example, would be low until a fixture sensed that a pedestrian was approaching, and the system would grow brighter as a whole. The same wireless network provides the basis for Intellistreets’ information, entertainment, and security upgrades. Harwood used decades of experience in the lighting and sound business—Illuminating Concepts has completed designs for touring musicians like Bonnie Rait and spaces such as the NBC Experience Store in Rockefeller Center—to build audio, video, and surveillance systems directly into Intellistreets lampposts.

Harwood hopes that these enhancements will help revive the economy in struggling cities like Detroit, where Intellistreets will be installed in downtown areas before the end of the year. The idea is to draw people back into formerly vibrant shopping, entertainment, and park districts.

“Think of Intellistreets as an urban media system—people can hear new music from street lights, see LED banners with up-to-date news about the neighborhood, weather information, and upcoming events. It’s kind of like a big living room [for the whole city].” —katie gordon

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