energy international quarterly
march/april 2010 The US Department of Energy national research and development funding, and what it means for the energy industry DrSCADA Automation industrial automation solutions for companies around the globe Resource Energy Solutions maximizing functionality for the oil, gas, and mining industries
Swiss Solar Tech Ltd. european solar technologies find function in north america
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energy international quarterly march/april 2010
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CONTENTS
The Future of Fuel The US Department of Energy is making breakthrough developments in traditional and renewable fuel, and addressing our nation’s current and future energy needs. p. 39
The Office of Fossil Energy, responsible for managing the nation’s stock of traditional fossil fuels, provides financial support for projects that will advance environmental science and technology. p. 42
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The Office of Nuclear Energy is funding a new generation of nuclear reactors, while continuing maintenance of the existing commercial nuclear industry, to augment the nation’s supply of clean power. p. 50
energy international quarterly march/april 2010
The Office of Energy Efficiency and Renewable Energy brings clean, reliable, and affordable energy technologies to the global marketplace through extended research and development funding. p. 58
CONTENTS Turnkey Services 12 enerpro insulation ltd. is an Alberta-based pipeline-insulation firm whose business has remained steady throughout the recession thanks to their small size and diverse service offerings.
14 swiss solar tech ltd. has taken the solar expertise it acquired doing business in Switzerland and has applied it to the market in British Columbia.
16 drscada automation is a Calgarybased firm that specializes in designing and manufacturing industrial computing systems for oil-production companies across the globe.
19 glenbarra energy solutions, inc., which provides constructionmanagement services, has established itself as a leader in commercial and residential solar-thermal solutions. Plus
Research & Development 21 sea breeze energy, inc., based in Vancouver, has wind-energy, hydroelectric, and transmission projects in the works, making it a priority to provide clean, green power.
23 resource energy solutions is a Calgary-based firm that produces software to manage production and maximize opportunities for the oil, gas, and mining industries. RES focuses on engineering-specific functionalities that will continue to raise the bar on efficiency in the energy sector.
25 sifton energy, a Calgary-based company backed by a seasoned management team with a build-and-sell track record, aims to boost junior oil producers until they are fit for acquisitions by larger oil- and gas-exploration development and production companies.
Specialty Products 28 western ag enterprises, inc., an Arizona-based storage specialist, sees biomass as an emerging area of opportunity and is currently working to commercialize the biomass-storage process across the United States.
31 nelson & small, inc. opened 70 years ago as a furniture showroom; today the company is a leading distributor of high-efficiency and alternativeenergy products for multiple markets.
35 energrow, inc. manufactures oil presses that allow farmers to produce feed and fuel from soybeans, flax, and other seeds, helping to reduce costs.
37 coating robotics technical services, inc., a Tulsa-based company, performs preventative maintenance on pipelines transporting fluids from the deserts of Oman to the sea floor.
editor’s note 6 • energy bulletin 8 • last word 66
resource energy solutions makes cost and project life-cycle-management software for the oil, gas, and mining industries throughout Canada.
p. 23
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editor’s note
Gathering steam
E
veryday, advancements are made by power organizations all over the United States and abroad thanks to funding programs from the US Department of Energy. The ever-looming energy crisis has forced companies large and small to re-evaluate their directives and practices, and to diversify beyond their typical comfort zones. As this issue began to take shape, we saw more and more evidence that the development of cleaner, more reliable fuel sources has proven fruitful for the global energy infrastructure. We are excited to present in-depth coverage of three offices within the DOE that are significantly advancing the fields of fossil, nuclear, and renewable fuel (p. 39). “A renewable-energy economy is a true opportunity to create new jobs and reinvigorate America’s competitiveness. American innovation can be the catalyst that jumpstarts a new clean-energy Industrial Revolution,” says US Energy Secretary Steven Chu. For instance, the DOE’s Argonne National Laboratory is developing an important process that may change nuclear energy as we know it (p. 50), proving that research and development initiatives are the mission-critical element in obtaining a sustainable-energy infrastructure. The federal government is not the only entity making great strides in the global-energy sector. In this issue, you will find companies that are developing innovative products and practices in the fields of traditional and renewable fuel. We spoke with Energrow Inc. of Newton, Ontario (p. 35), which has developed a press system that allows
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Chemist Laurel Barnes prepares to test a metal-oxide-conversion process at the US Department of Energy’s Argonne National Labratory. In one step, the process converts spent commercial nuclear fuel into metal, which is then recycled into new fuel. Photo courtesy of Argonne National Laboratory. farmers to use their own crops to produce both usable livestock feed and diesel fuel. “Energrow sees its future in enabling farmers to be more self-sufficient in their fuel production,” says Jasmin Hofer, founder of the company. While this technology, as it stands, is not applicable outside the agriculture industry, it shows immense promise for the future of sustainable energy. Imagination is the first step toward immediate and continued innovation within the power industry. According to Susan Huber, president of
energy international quarterly march/april 2010
Swiss Solar Tech (p. 14), cover story, “There is no limitation for heat-recovery and alternativeenergy possibilities, except in the human mind.” Those in the energy industry would do well to heed this advice and think, as the saying goes, outside the box. As always, we hope the articles in this issue motivate, inform, and inspire your work. Enjoy. Molly Soat Features Editor
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energy international quarterly march/april 2010
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energy bulletin
Elevator company wins contract in China Hartford, Connecticut-based Otis Elevator Company—the world’s largest manufacturer and maintainer of “people-moving products,” including elevators, escalators, and moving walkways—was recently awarded a contract to supply and install 334 of its energy-efficient Gen2 elevators for the Longtan City Industry Zone (left) in Chengdu, China. The award-winning Gen2 technology reduces energy usage by up to 50 percent when compared to conventional systems. Otis, a unit of United Technologies Corp., is the leading elevator supplier for the 32-million-square-foot complex. The site is being developed by the Chengdu Yudu Industry Limited Corporation and will feature ecofriendly industrial, commercial, and residential buildings. Source: Otis Elevator Company
Wind power: the leading alternative energy The IP Solutions business of Thomson Reuters has released the results of its most recent research report, Alternative Energy Powers Up, which shows that wind technology has taken precedence in the field of alternative energy, particularly in Japan, but that solar power has stronger activity in China and continues to have high research and development investment. The study analyzes global patent activity from January 1998 through March 2009. Here are some key findings from the study:
Mars Chocolate and PSEG have announced the completion of a new solar garden in Hackettstown, New Jersey. The project is the largest solar facility installed in the state by a food-manufacturing plant, and it is the first project completed by PSEG Solar Source, a subsidiary of PSEG. Located adjacent to Mars Chocolate North America’s headquarters, where more than 1,200 associates work and where M&M’s are manufactured, the solar garden: • is comprised of more than 28,000 ground-mounted solar panels on 18 acres; • provides two megawatts of power during peak hours, which is equivalent to approximately 20 percent of the plant’s peak energy consumption; • will reduce carbon-dioxide emissions by more than 1,000 metric tons, equivalent to removing 190 vehicles from the road each year. The solar-garden project supports aggressive energy goals put in place by the state of New Jersey. Its Energy Master Plan calls for 20 percent of the state’s energy to come from renewable sources by the year 2020. A long-term partnership between Mars Chocolate North America and PSEG Solar Source will help to ensure the solar garden’s success. Source: Public Service Enterprise Group (PSEG)
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energy international quarterly march/april 2010
Source: Thomson Reuters
Global energy-development trends (January 1998 to March 2009) PATENTS
INVENTION COUNT
60% PERCENT OF INVENTIONS
Mars and PSEG develop new solar garden
• Small commercial companies provide the most inventions in alternative energy when compared with large companies and academic institutions. • Wind power is growing the fastest, with 50 percent of the alternative-energy patents granted between 2006 and March 2009. • The leading country for wind-power technologies is Japan, where wind research currently exceeds solar research. • The countries with the most alternative-energy patents are Japan, the United States, China, and Australia, indicating that these countries could be target markets for alternativeenergy commercialization.
50%
30%
5,998 Wind
Wind
40% Solar
20% Marine
10% 0%
1997- 2000- 2003- 200699 02 05 09 Source: Thompson Reuters
6,877 Solar
643 Marine
New Jersey-based company helps homeowners convert the sun’s heat into power New Jersey-based Honeywell—an innovator in advanced energy-efficient refrigerants for heating, ventilation, and air-conditioning—is using its new Genetron R-245fa refrigerant to help homeowners generate electricity from the sun’s heat while offsetting energy costs. The R-245fa is being used in an organic rankine cycle called the 35Z Micro Power Plant. The power plant has a unique design that uses water heated by thermal-solar panels to evaporate the refrigerant, which in turn drives a turbine to generate electricity. Because no fuel is burned to create the electricity, the unit does not produce any carbon-dioxide emissions. The remaining heat from the 35Z can be used to supply heating and hot water. The R-245fa is: • nonflammable; • non-ozonedepleting; • low in toxicity; • low in its boiling point (59.5 F), which is ideal for using lowtemperature heat and waste heat to generate electricity; • able to output 3.5 kilowatts of electrical power, ideally suited to homeowners’ needs. Source: Honeywell
New solar rooftop installed on Michigan governor’s residence Energy Conversion Devices, Inc., the leading global manufacturer of Uni-Solar thin-film flexible solar laminates, and CertainTeed Corporation, a leading North American building-products manufacturer, have installed EnerGen—a breakthrough solar roof system—on the official residence of Michigan governor Jennifer M. Granholm. EnerGen is the first joint product developed between the two companies. The product combines Uni-Solar’s industry-leading expertise in photovoltaics with Certain Teed’s century-long leadership in residential roofing to create a roof system that integrates solar power with roofing shingles. The 3.2-kilowatt EnergGen installation on the governor’s Lansing residence was a donation from the two companies. Source: Energy Conversion Devices, Inc.
BioPower Systems’ project is supported by the Australian Government’s innovation statement,“Backing Australia’s Ability,” which has received funding from the European Commission (headquarters pictured).
Australian and Spanish companies develop wave-energy projects Australia’s ocean-energy company BioPower Systems has signed a memorandum of understanding with Spanish company Elecnor, establishing a process for the two companies to utilize work towards the development of wave-energy projects using BioPower’s proprietary bioWAVET technology in Elecnor’s core business regions of Spain, Portugal, and South America. The bioWAVET system is designed to supply utility-scale, gridconnected renewable energy without affecting marine life. Multiple bioWAVET devices are installed in undersea wave-energy farms, where the combined power output is then supplied to the on-land grid via an undersea cable. With all of the headway being made in the wind- and solar-energy sectors, the companies feel that exploring ocean energy is the next logical step. The two companies have planned a demonstration project in Spain that will follow the bioWAVET pilot testing in Australia. The project could commence as early as 2011. Source: BioPower Systems Pty Ltd.
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energy bulletin
NV Energy awarded $138 million grant by US government US Secretary of Labor Hilda L. Solis has announced the award of $138 million in federal funds to NV Energy for smart-grid technology, which is included in the American Recovery and Reinvestment Act’s nationwide awards. Matching funds increase the value of this project to $298 million. These funds will help transition an electric-distribution system to a smarter, more efficient and reliable electric system—spurring the creation of clean-energy jobs across Nevada. The funds will go toward NV Energy’s Advanced Service Delivery project—a statewide project that will link 1.45 million electric and gas meters across 54,600 square miles of service territory, delivering more than $65 million in benefits annually to 2.4 million Nevadans. The award is expected to create new jobs, increase electric reliability, and help build the infrastructure necessary to bring clean, low-cost energy sources to Nevada homes and businesses. NV Energy employee explains the mechanism behind smart-grid technology.
Source: US Department of Energy
US Energy Secretary awards $24 million for advanced vehicle technology
Europe promotes emissions limits on vehicles
The US Department of Energy (DOE) has entered into a $24 million conditional-loan commitment with Tenneco, Inc. to develop fuel-efficient emission-control components for advanced-technology vehicles. The loan is part of the DOE’s commitment to helping the auto industry meet or exceed President Obama’s tough new fuel-economy standards while helping America regain its competitive edge in globaltransportation markets.
The European Commission has proposed emissions limits for light trucks and vans, stating that car manufacturers will not be permitted to use them to increase production of non-regulated SUVs. The effort, according to European Union environment commissioner Stavros Dimas, is to prevent a repetition of what happened in the United States— where manufacturers used the more generous emissions rules for light trucks to expand construction of a new generation of vehicles with exorbitant fuel usage.
Tenneco, based in Illinois, is the first component manufacturer to receive a conditional-loan commitment under the DOE’s Advanced Technology Vehicle Manufacturing program. The company will use the loan to design, engineer, and produce emission-control components for gas-, hybrid-, and diesel-powered vehicle engines.
The proposal is modeled on recent legislation enacted in Europe that aims to cut car emissions by a fifth in 2015, to 130 grams per kilometer, on average. Manufacturers that exceed those limitations will face a penalty fine. The limitations on car emissions will gradually take effect from 2012 to 2015.
More than two million automobiles and light trucks to be built in model years 2010 to 2014 will be equipped with Tenneco’s emissioncontrol technology. The components include: • catalytic converters; • selective catalytic-reduction units (pictured below); • diesel-oxidation catalysts, which can reduce hydrocarbon and carbon-monoxide emissions by up to 90 percent; • diesel-particulate filters, which can reduce particulate-matter emissions by up to 95 percent. Source: US Department of Energy
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energy international quarterly march/april 2010
Source: The European Commission
Some new emission limits Parameter
Old value
New value
Maximumpermitted oxygen content in petrol
2.7% by mass
3.7% by mass in “highbiofuel petrol”
Maximum ethanol content
5% by volume
10% by volume in “high-biofuel petrol”
Other oxygenates
Varied between 3% and 15%
All increased by a comparable amount in “high-biofuel petrol” except methanol
US DOE selects electric-utilities company for smart-grid project Black Hills Corp., a diversified energy company, has been selected by the Department of Energy (DOE) for a smart-grid grant of $16.7 million. The funding will go to each of Black Hills’ electric-utility subsidiaries: Black Hills Energy, Black Hills Power, and Cheyenne Light, Fuel & Power. The DOE funds, made available under the American Recovery and Reinvestment Act of 2009, will support the installation of about 149,000 smart meters and related infrastructure associated with specific projects in the company’s Colorado, South Dakota, and Wyoming electric-service territories. The meters will help consumers better monitor their energy consumption. The funds were divided up as follows:
Pennsylvania’s solar capacity doubles, thanks to solar program
• Black Hills Energy: $6.1 million in matching funds for 42,000 smart meters and communications infrastructure. • Black Hills Power: $5.6 million toward 69,000 smart meters, communications infrastructure, IT software, and smart-grid system equipment. • Cheyenne Light, Fuel & Power: $5 million toward 38,000 smart meters and communications infrastructure.
Governor Edward G. Rendell has said that the new PA Sunshine Solar Program is performing better than expected, helping to double Pennsylvania’s solar-generating capacity in less than six months. According to the Department of Environmental Protection (DEP), the program has reached its first incentive milestone for small-business rebates: the deployment of five megawatts of solar power, which is enough to supply electricity to about 575 average homes in the state.
Source: Black Hills Corp.
The solar-electricity capacity created by the small business program, 5 megawatts, is enough to offset: • 5,580 tons of carbon dioxide; • 16,000 pounds of nitrogen oxide; • 77,500 pounds of sulfur oxide. A running tally of completed projects is kept on the rebate program’s Web site, where prospective applicants and solar developers are able to track the program’s progress. More than 300 installers have been certified to install solar systems under the program, and the DEP continues to receive and accept applications.
Cheyenne Light employee using AMR technology to read meters
Source: Pennsylvania Office of the Governor
Recovery Act funds $1.1 million to train weatherization workforce More than 1,000 Pennsylvanians seeking to become weatherization installers, crew chiefs, and auditors will receive training through an investment of $1.1 million in federal American Recovery and Reinvestment Act funds.
Trainees and instructional staff at Pennsylvania College of Technology’s Weatherization Training Center working on different aspects of weatherization.
Six grant recipients will use approximately $871,000 to provide weatherization training to students. Two additional recipients, including Penn College of Technology—which developed the statewide weatherization-training curriculum—will use $255,000 to provide technical assistance and apprenticeship development to the other six training providers. All recipients will help Pennsylvania identify, train, and certify workers to complete high-quality energy-reduction, conservation, and weatherization activities in approximately 29,000 single- and multifamily homes across the state. Source: Pennsylvania Office of the Governor
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turnkey services
Enerpro provides a wide range of industrial- and mechanical-insulation services for a number of refineries.
Enerpro Insulation Ltd. Alberta pipeline-insulation firm moves forward despite economic downturn by david hudnall
at a glance location: athabasca, ab employees: 20–40 area of specialty: pipeline insulation
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the major energy companies operating in Alberta—Devon Resources, Suncore, Enwest—frequently require insulation work for their pipelines and refineries. They need supplies, installation, and maintenance services, and they often need it done quickly and on short notice in order to keep prices down. Enerpro Insulation Ltd., with locations in Athabasca and Rocky Mountain House, Alberta, takes advantage of its relatively small size to provide these services. “We can specialize and work fast,” says Garry Hoag, safety and sales manager. “Our larger competitors can’t always do that.”
years and has been involved with insulation for more than 30 years. The bulk of its work is maintenance and project insulation—it’s a supplier and installer of thermal insulation, as well as a custom-sheet-metal fabricator. Enerpro also provides a wide range of industrial- and mechanicalinsulation services for refineries, pulp and paper plants, gasprocessing facilities, and more. Its typical clients are oilfield facilities in the Central Alberta area. “We’re especially proud of the projects where we have long-standing relationships with the clients, like Alberta Pacific, who we’ve been working with for ten years now,” Hoag says.
Enerpro was established by Tony Giardino, who is still owner and president; the company has been in business for 50
Enerpro recently became involved with the Devon Jackfish project, located ten miles southeast of Conklin, Alberta.
energy international quarterly march/april 2010
enerpro insulation ltd.
turnkey services
The heavy oil industry has not appreciably slowed down despite the downturn. —Garry Hoag, Safety and Sales Manager
It’s expected to produce 300 million barrels of oil—a high-profile project that should boost Enerpro’s reputation. “We’re their resident insulator,” Hoag says. “Our crews are on site there 24/7, and when called upon to insulate, strip, or replace, we’re there to take care of it.” Safety is a major factor on insulation projects, and Enerpro has a mature and well-established safety program recognized by Alberta government. “Typically when we need to insulate, employees are working at heights 100 feet off the ground, insulating the pipes,” Hoag says. “And we deal with severe temperatures—30 degrees Celsius in the summer, and minus 40 in the winter. So safety is always a concern.”
The economic downturn has posed challenges for Enerpro, but Hoag maintains that the company is still performing at expectation. Annual sales hover around $6–8 million, and the work is largely seasonal—fall and winter are the busiest times because that’s when things freeze and people become aware of the fact that they might need insulation. “We run two operation centers that allow us to cover Central and North-central Alberta, and we expect to maintain those areas and expand over the next years,” Hoag says. The company has also been targeting more maintenance contracts and plans to further increase its Microtherm distribution.
Competition in the industry is stiff due to the opportunities provided by the natural resources of the region. “Alberta has provided a rich area for us to operate,” Hoag says. “It’s rich in minerals and resources like hydrocarbon, pulp, and paper. We appreciate those opportunities, but like everyone else, we have to work for them.” One competitive advantage the company enjoys—and an area where it sees major growth potential—is its distribution of Microtherm products. Microtherm, a Belgium-based manufacturer of special insulation, is the industry’s leading product. It minimizes the transmission of heat over a large temperature range—from cryogenic temperatures to over 2,000 degrees Celsius—and has better thermal performance at high temperatures than still air. It’s a particularly popular product with oilfield and power-generating stations that deal in those extreme conditions.
“The heavy oil industry has not appreciably slowed down despite the downturn,” Hoag concludes. “It has maintained and expanded. We look forward to being part of that moving forward.” eiq
Microtherm products provide: • reduced insulation thickness/volume for equivalent performance; • reduced insulation weight; • faster installation due to reduced quantity of insulation pieces; • savings on outer coverings/casings due to size reduction; • reduction in storage of goods prior to installation; • reduction in cost of packaging of insulation for delivery; • reduction in delivery costs due to reduced volume; • cleaner installation with no health hazards.
a message from genfour thermal solutions, inc. GenFour Thermal Solutions, Inc. wishes Tony Giardino and Enerpro a happy and prosperous 10th anniversary and many more years of success. As Enerpro’s “supplier of choice” for polyurethaneinsulated sandwich panels and related accessories, GenFour is eager to continue a close and productive business relationship for many years to come.
Western Canada’s Specialty and Thermal Panel Experts Quality Thermal Panels Made to Order Panel Products and Specialty Fabrication Services for the Commercial and Industrial Insulation trades. Oil & Gas | Construction | Custom www.genfourthermal.com
(780) 455-9997
turnkey services
A 120-solar-panel array installed on the roof of the NorthVancouver Library, a Swiss Solar Project.
swiss solar TECH ltd. European solar experts grow a new business in British Columbia by david hudnall
at a glance location: summerland, bc year founded: 2001 employees: 6 web site: www.swisssolar tech.com
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susan huber and her husband were involved in the solar-thermal business for many years in Switzerland in the 1980s and ’90s. During that time, selling customers on the idea was challenging; nobody knew anything about the process, and there was no concept of global warming or a looming energy crisis. Huber recalls an agricultural expo she attended in 1983 to exhibit her solar systems. “People just thought it was science fiction,” she says. But eventually business picked up, and Huber’s company became a leader in its field. When Huber decided to move to Canada in 2000 to incorporate a similar solar business, she and her husband became pioneers again. “We felt like we were thrown back into the time when we had started our business in Switzerland,” she says. “We were ahead of the curve over here. But
energy international quarterly march/april 2010
at the same time, alternative energy is now growing four times as fast here in North America. Environmental awareness has become a first priority for many companies and private people nowadays. And it’s my hope that Canada can become a leader in the application of alternative energy.” Huber incorporated her business, Swiss Solar Tech Ltd., in 2001 in British Columbia. It specializes in commercial geothermal and heat-recovery systems and takes a turnkey approach that includes design, supply, and installation. Traditionally, Swiss Solar has worked the commercial market, but in 2009, several residential solar rebates fell in place, adding up to almost $4,000 per household in British Columbia. Federal and provincial rebates and grants now cover approximately 46 percent of the installed cost of a standard two-panel solar water-
swiss solar tech ltd.
Environmental awareness has become a first priority for many companies and private people nowadays. And it’s my hope that Canada can become a leader in the application of alternative energy. —Susan Huber, President
heating system for residences. As a result, the company’s residential sales have skyrocketed. “We’re up 400 percent in residential compared to last year,” Huber says. “We’ve installed 40 systems in the past few months, and we hope that those rebates will stay in place. If they don’t, this market will experience a big collapse. So we’re just hoping the politicians will play the cards right in the name of the environment.” Huber says there was a question initially of whether Ontario would have been a better destination for the company than British Columbia. But in British Columbia, there is a need for heating and cooling with seasonal and local variations that makes it unique for solar and geothermal. “New solar and geothermal firms are shooting out of the ground like mushrooms up here,” she says. “Many of them are doing very well, but some of them are gone within a year or two.” Business at Swiss Solar is steady, and expanding and opening new branches in other provinces and the United States is part of the long-term plan. Swiss Solar’s projects in British Columbia have been ambitious. It installed the first solar-thermal system for district heating at the North Vancouver Library, where it has placed 120 Viessmann collectors on the roof monitor. The firm also spearheaded the design of the heating and cooling system of the Comfort Inn in Red Deer, Alberta—the most energy-efficient hotel in Canada— with a solar- and geothermal-hybrid system. And other hotels, like the Best Western in Kelowna, the Ramada in Lethbridge, and the Listel in downtown Vancouver, have incorporated its systems. The firm also installed 168 solar collectors at the Gateway Bonavista Southcentre, a 500-unit apartment building and shopping centre in Calgary. The Aquatic Centre of the Regional District of the Kootenay Boundary in Grand Fork, British Columbia, uses a Swiss Solar system and is also redirecting the waste heat that is blown out from the nearby hockey arena to provide hot water for the pool and showers. “There are so many cities and municipalities that have ice rinks and public pools next to each other, and as we say, there is no limitation for heat recovery and alternative-energy possibilities, except in the human mind,” Huber says.
Swiss Solar incorporated its second company, Pro Eco Energy USA, in 2007, with a franchise branch in Canada called Pro Eco Energy Canada. Pro Eco specializes in consulting, design, and installation for renewable-energy and heat-recovery operations. “Pro Eco enables us to offer all alternative-energy technologies available in today’s market, not just solar,” Huber says. Looking back on the company’s accomplishments, Huber feels great pride. “It’s very astonishing that my husband and I have grown our solar company to what it is now in just eight years,” she says. “Everything we do here is very rewarding.” eiq
turnkey services
turnkey services
DrSCADA’s dual-controller option helps reduce its environmental footprint.
DrSCADA Automation Candian firm designs and manufactures industrial automation systems for multinationals around the world by cristina adams at a glance location: calgary, ab employees: 3 area of specialty: design, manufacture, and support industrial automation systems and equipment
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when dan mackie graduated from college and went to work as a computer programmer at Amoco Canada in 1974, he soon realized that he was working in the wrong end of the business. “I realized that I wanted to work at a computer company, not an oil company,” Mackie says. “I wanted to be where they either got it right or went broke trying.”
for long. He soon began writing specialized software for digitizing well logs. One thing led to another, and by 1982, he had founded Daniel Computing Systems Inc., which focuses on manufacturing industrial software and electronics, including SCADA (Supervisory Control & Data Acquisition) systems. This led to the creation of DrSCADA Automation—a division of Daniel Computing Systems.
So the Ontario native did just that. He went to work for a small computer company that specialized in optimizing energy consumption in large building complexes. After a year, however, the business declared bankruptcy, and Mackie found himself pounding the pavement—but not
A SCADA system collects data from various locations and sends it to a central computer, which then manages and controls the data. Not surprisingly, these systems are used by a broad range of industries, such as electric power, mass transit, and manufacturing, among others. It’s even less
energy international quarterly march/april 2010
d r scada automation
Building reliable, easy-to-use products and providing good customer service has driven our success. We always listen to the customer and seek to meet their needs in practical ways. —Dan Mackie, Founder
of a surprise that SCADA systems are in increasingly high demand in the oil patch. Take, for example, one of DrSCADA’s showcase products: the P700 rod pump controller, which is designed to make the “nodding donkey” pumps in the oil field more cost effective. The pump controller can report on the efficiency of what is happening, and it can provide diagnostic information to assist in troubleshooting production losses. Depending upon how it is installed, it may be able to change the pump speed or use start-and-stop “intermittent” operation to achieve an effective speed change, matching pump output with reservoir inflow. The P700 can also be used as a mobile diagnostic device and can be moved around the field on a daily basis. In particularly hot areas, the controller is installed with a sunshade. It also has capacity for additional input/output capabilities to monitor devices, such as pressure switches and pollution-control stuffing boxes. Since directional drilling has come into common practice, multiple pumpjacks are sometimes located on the same surface lease so as to occupy a smaller environmental footprint. DrSCADA also makes a dual well controller, which can operate two wells at the same time. This configuration would be somewhat less expensive than two single well controllers, but it could not be deployed later in two different places, as could be done in the future with two single well controllers.
Since then, DrSCADA has grown—both in size and scope. There are currently three full-time employees, who are responsible for designing, developing, and manufacturing the SCADA computing systems. DrSCADA’s product lines and client base, which now include not only Canadian companies but international companies, from Argentina to Mozambique to Australia, have also expanded. Considering there aren’t many players competing in the automatedpump-control niche, that’s saying something. Mackie attributes at least some of his company’s success to its smaller size, especially during bumpier economic times, when competition for customers can heat up. “I think small firms can survive much better than large ones,” he says. “We have seen firms much bigger than ours vanish over the years, during good times and bad. Then again, I am an optimist. I couldn’t survive in this business if I wasn’t.” Looking ahead, Mackie expects to focus more on sales (both domestic and international), on developing new product lines, and on continuing to live up to its reputation for dependable products and customer support. “No lost-time incidents ever is our record, but it’s still not good enough,” Mackie says. “You have to prove good practice.” eiq
A DrSCADA controller with internal display.
Interestingly, although Mackie was already involved with field-automation software and systems in 1980, it wasn’t until 1987, while fronting a booth at the Instrument Society of America trade show, that he discovered the potential profitability of pump controls. A chance meeting with two brothers, both of whom worked for a family company called Wellhead Controls, led to a successful collaboration on the design of the P700 pump controller. In 2003, when Wellhead, now known as the Pickford Group, decided to exit the pump-control business, DrSCADA Automation bought the product line. Under Mackie’s direction, the company has continued to enhance the software and hardware for this application.
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turnkey services
If you use sucker rod pumps for oil production, then optimization of those pumps can provide significant incremental economic value to your firm. DrSCADA controllers and software can help you find production problems faster than well tests. Measure the efficiency of your oil production by radio, to help your field personnel be more productive and more efficient. Provide them with the tools they need to pinpoint where their efforts will really pay off. You can trade non-productive “windshield time”, and time spent trying to locate problems, for time actually correcting the root cause of problems. Automated radio communication to the wellhead allows for faster and safer operational control, and also allows power shedding on demand or on schedule, providing you an opportunity to negotiate for better utility rates. Improved monitoring can also reduce the risk of environmental damage. Yes, you can optimize without automation, but how long will that
optimization last, and how can you know how well your field is optimized today, without continuous measurement? We can provide you with a power point presentation of examples of actual production problems which were identified using optimization software and DrSCADA controllers. DrSCADA offers a dual well controller which is even more cost effective than single well controllers. Everyone wants to maximize income and minimize expense, but how do they want to do it? For a 6 month or one year life span, perhaps you can refuse to fix things, and run with the money, but that provides only short term gain, and long term pain. If you monitor your equipment, and service it when it falls below a certain level of efficiency, that is far more reasonable. Pursue practical optimization improve production stability, and enhance the effective and efficient operating life of wellhead equipment. Let’s talk about what can be done email Dan.Mackie@DrSCADA.com.
turnkey services
Darren Cooper, founder and president, at the Toronto Hospital for Sick Children, where Glenbarra Energy installed a solar-thermal system.
glenbarra energy solutions, inc. Ontario company provides commercial and residential solar-thermal projects to a variety of industries by cristina adams
at a glance location: mississauga, on employees: 35, plus a network of partner engineering firms and contractors area of specialty: large-scale commercial solarthermal design and installation services
ontario-based glenbarra energy solutions, Inc., has made the stark transition from constructionmanagement services to commercial and residential solarthermal solutions in the short time since its founding. Part of the Glenbarra Group of Companies, Glenbarra Energy was formed in 2006, in response to the growing need for installers specializing in solar-thermal systems. After working closely with EnerWorks to complete a solar-thermal project at the Toronto Hospital for Sick Children, founder Darren Cooper saw the light about renewable energy. Since then, Glenbarra has made its name as a forwardthinking company that has the ability to take on a variety of projects. According to Mike Noble, vice president of business development, Glenbarra is now looking into taking on photovoltaic projects as well. “We are constantly looking for the best and most cost-effective global technologies
and solutions,” says Noble, who joined the company in 2009 and who is the founder and former president of EnerWorks. “We want to ensure that we’re at the forefront of the renewable-energy industry.” While there are a number of smaller players in its field, Glenbarra is thriving because it can offer and install largescale, turnkey solar-thermal solutions. And through its distribution arm, Green Edge Products, the company is able to deliver EnerWorks solar-thermal products and related renewable-energy products to clients throughout Ontario. While the company does take on residential projects (largely through Green Edge Products and its dealer network), its primary focus is on large commercial clients that use a large amount of energy to heat water. As a result, Glenbarra’s client list includes hospitals, universities, condominium
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glenbarra energy solutions, inc.
We are constantly looking for the best and most costeffective global technologies and solutions to ensure that we are in the forefront of the renewable energy industry. —Mike Noble, Vice President of Business Development
developers, long-term care facilities, and more. A recent project at the Toronto Hospital for Sick Children, which was featured on the Discovery Channel’s Daily Planet show, proved to be a memorable challenge. Because it was working at a hospital, the company had limited access; therefore, it needed to come up with a creative solution for moving 92 solar-thermal collectors to the hospital’s 12th floor and installing them. It did, and the project was such a success that the University of Toronto requested a similar system for its Athletic Centre. “The experience we have gained with a number of these large projects we’ve completed over the
past few years sets us apart from the competition,” Noble says. “In a way, we are also creating the market by having the skill set to deploy this new technology.” The firm is able to offer a client everything from project conceptualization, design, and procurement to installation, commissioning, and long-term maintenance. Its turnkey services even include project financing. Glenbarra’s efforts to become a one-stop solar-thermal shop start by training many of its 35 full-time employees in the day-to-day nitty-gritty of the business. Since the employees interact regularly with current and prospective customers, they need to have a wide knowledge base, Noble points out. “We place a high value on ensuring that our employees are well trained and have the necessary expertise to assist our customers,” he says. Noble says that because renewable energy is a growing industry, the recession hasn’t slowed things down for Glenbarra. “Our business is the busiest it has ever been, and the opportunities are growing all the time,” he says. “Many more people are looking at how renewable energy can be part of their business.”
Since business is good, expansion isn’t far behind. Most of the company’s current projects are located in the greater Toronto area, not far from its Mississauga headquarters. The passage of the 2009 Ontario Green Energy Act, which is designed to spur investment in renewable energy and create new green jobs, has been an advantage for Glenbarra. At this point, there is plenty of business close to home, but taking its renewable-energy message further afield is a temptation the company probably won’t be able to resist. In fact, there are plans to develop other markets in Canada and the United States, as well as internationally. It’s just a question of timing. “A large part of what we do is educating potential customers and the public about new, renewable technologies,” Noble says. “It’s great to help people and Glenbarra’s solar-thermal project atop the Toronto Hospital for Sick Children. their businesses contribute to a cleaner world.” eiq
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research & development
Paul Manson, president of Sea Breeze Power Corp.
sea breeze energy, inc. Developers look to blow through BC’s wind-energy barrier by annie fischer
despite the fact that numerous studies and reports demonstrate the quality of the wind regime and the viability of wind projects throughout British Columbia, there are still no operational wind farms currently located in the province; but Sea Breeze Energy, Inc. is poised to finally change that. Founded in 2002 as a wholly owned subsidiary of Sea Breeze Power Corp. (formerly International Powerhouse Energy), Sea Breeze Energy holds more than 30 permits for wind-energy investigation and development at different sites throughout British Columbia—an area that totals more than 450,000 acres in four regions of the province.
The company, driven by the world’s ever-increasing need for clean, green power, according to its mission, also spearheads projects in run-of-river hydroelectric power and electrical transmission, offering long-term, cost-effective, reliable energy solutions in a variety of fields. “When we began to consider producing wind energy, we came across a map that was part of a study analyzing energy sources in Canada,” says Paul Manson, president of Sea Breeze Power Corp. “It was a joint effort between Fortis Bank, the World Energy Council, and Petroleum Economist, and it identified the coast of British Columbia as the number-one wind resource in the country. It was
at a glance location: vancouver, bc year founded: 2002 web site: www.seabreeze power.com
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sea breeze energy, inc.
nice validation, of course—but it also gave us a whole lot of credibility.” That credibility extends to Sea Breeze Energy’s Knob Hill farm site, the first in British Columbia to be awarded an environmental assessment certificate. The site is located on a high plateau approximately eight kilometers north of Holberg and 35 kilometers west of Port Sea Breeze, a site chosen for its substantial wind resources and proximity to Vancouver Island’s main electrical-grid connection at Keogh substation, near Port Hardy. Sea Breeze has been collecting data there for more than six years. When completed, the farm will support 66 turbines (eight have been constructed at present) and have an electrical capacity of 100 megawatts—enough electricity to supply the annual needs of 30,000 island homes.
A worker helps out at the Knob Hill farm site, which will support 66 turbines upon completion.
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As noted, the Sea Breeze business portfolio contains more than just wind energy; in fact, the company actually started out in the business of run-of-river projects. Unlike traditional hydroelectric projects, which sometimes require the flooding of large tracts of land to support the demands of a storage dam, a run-of-river project diverts some of the natural flow of water through a tunnel, which powers a turbine. The tunnel then returns the water to the natural watercourse, some distance downstream. Sea Breeze has most prominently proposed the Cascade Heritage Power Project, a run-of-river hydroelectric plant that would produce up to 25 megawatts of sustainable energy, capable of satisfying the needs of 10,000 people. (A side note: the Cascade site is of unique historical significance, as it was the original location of a hydroelectric project that operated more than a century ago, between 1897 and 1919. High-voltage transmission was pioneered there, setting the standard for future generation and transmission in North America.) Sea Breeze also has a transmission project underway—perhaps its most exciting development. In 2003, the company undertook a comprehensive investigation of independent transmission options to increase British Columbia’s connectivity within the regional grid, and the review of these options culminated in a joint-venture agreement with Boundless Energy (aYork Harbor, Maine-based transmission- and utility-engineering firm). In 2006, the Juan de Fuca Cable Project—a 550 megawatt HVDC Light submarine-transmission line connecting British Columbia and Washington State—became the first international merchant-transmission line to be approved by the National Energy Board of Canada. In 2008, the US Department of Energy awarded the project a presidential permit, and Manson is ready to pull the trigger. “The JDF [Juan de Fuca] Cable is a sterling example of how privately financed energy options can benefit the ratepayers in a region,” Manson explains. “With such tremendous environmental benefits, we’re increasingly eliminating points of opposition, which makes the approval process much more comfortable. And that’s going to be extremely important as we enter what I call the ‘Age of Renewables.’ ” eiq
research & development
Oilfield facility in Alberta, Canada.
resource energy solutions Oil and gas software aims to combine ease of use with functionality by erica archer
at a glance location: calgary, ab year founded: 1995 area of specialty: cost- and projectmanagement software for oil, gas, and mining companies
as other businesses fold amid the global financial crisis, Resource Energy Solutions (RES) is experiencing an upswing in new business. The company, which makes cost- and project-life-cycle-management software for the oil, gas, and mining industries, finds that slimmer profit margins mean greater attention to financial detail. “If you have watched [the] oil and gas [industries] for the past three years, their growth was absolutely breakneck, to the point where you couldn’t find drilling rigs,” says RES president Trent Marx. “The price of oil was high and everyone was drilling like mad, so they didn’t have time to look at cost management.” In today’s tighter market, as finances come under closer scrutiny, RES sees an opportunity. “Our software handles
the complete life cycle of a project by managing the daily field activity and costs,” Marx explains. Integrated cost management is like a three-legged stool, he says. One leg is RES’s AFE (approval for expenditure)/budgetmanagement system for internal control over capital spending. Built using standards from the Public Petroleum Data model, the AFE Manager streams data seamlessly into the second leg of the cost-management system, known as Wellman. Wellman captures the daily field costs and activity during exploration operations. “Wellman supplies an automatic update of the day-to-day costs and activities” Marx says. The third leg is the clients’ financial system, with which RES’s software interfaces. Through this combination, Marx explains, “Our customers are able to provide complete fiscal accountability.You can compare all three
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resource energy solutions
We deliver ease of use with maximum functionality and enhanced business intelligence. We go the extra mile for our customers. —Trent Marx, President
cost silos together, the budget [AFE] against the field costs [Wellman], which are estimated, compared to the actuals or the financial system.” RES entered the market in 1995, when the company’s founders were approached by Pennzoil to capture wellcompletion field activity. Right now in the North American market, competitors like Halliburton and Peloton offer oil and gas products similar to Wellman, but Marx says that their solutions are much more invasive, costly, and require
a full-time administrative and IT-support staff. End-user accessibility is the key to the success of RES’ programs. Mining is an area within the energy sector that holds great business potential for RES. “Mining has come into play in the last year or two, and it’s a great opportunity for us that we’re going to pursue vigorously,” Marx says. “We’re very excited about a new project we are involved in, with a customer that is developing a potash mine. We are finding that our customers are experiencing tremendous savings in audit costs, and others are experiencing better fiscal accountability by using Wellman and a costmanagement system.” RES focuses on engineering-specific functionalities that will continue to raise the bar on efficiency in this software sector. All of its products, including Wellman and AFE Manager, are intuitively designed for ease of use. “When we design new technologies, ease of use is a number-one priority,” Marx says. RES also provides 24/7 support for customers with dedicated sales representatives. “You can imagine how enriched the support and the training offering is if every time you call support, you’re talking to the person who’s actually been training you,” says Anne Marie MacLean, RES consultant and adviser. “It really does increase the ability to educate the users and to make them aware of all of the tools that are available to them in the software.” Marx says plans for the future include improved information analytics, since Wellman collects more than 8,000 data points. The company is currently in talks with a prominent educational institution to develop fusion algorithms to be used in the field. “When we compare what we were capturing in Wellman 15 years ago and what we’re capturing today, the difference is incredible,” Marx says. “You get all this information and you ask yourself, ‘Okay, now what?’” For Marx and RES, ultimate focus remains on the client. “We help the customers manage their business efficiencies better by listening to their needs and delivering what’s important,” Marx says. “We deliver ease of use with maximum functionality and enhanced business intelligence. We go the extra mile for our customers.” eiq
research & development
sifton energy Alberta oil veterans take a build-and-sell approach by erica archer
the oil and gas industry is like a rollercoaster, and Stanley Odut has learned the virtue of holding steady. “We find that pricing is always either skyrocketing upwards or it’s riding the rails downward at a fast clip,” Odut says. “It just never seems to be on an even keel.”
After a company acquisition and subsequent downsizing left Odut out of a job, he was inspired to assemble his first independent venture, Del Roca Ltd., in 1997. Although the oil market plummeted within a few years of the company’s launch, Del Roca endured through careful husbanding of capital. Its production grew to about 650 barrels of Odut assembles junior producers and boosts their produc- oil equivalent (BOEs) a day before it was acquired by Tusk tion until they’re ready for acquisition by larger companies. Energy in 2003. Shortly thereafter, Odut launched Sifton Energy with much of the same management team. After earning his civil-engineering degree from the University of Manitoba, he worked for 40 years in Alberta’s Aside from the international economic troubles affecting oil and gas industry, with a résumé that includes Hudson’s every industry, the current Alberta oil market offers chalBay Oil & Gas, Texasgulf, Canterra Energy, Husky Oil, lenges from high provincial oil royalties and a mature, highly Petrorep, Canadian 88 Energy, and Alberta Oil & Gas.
at a glance
Stanley Odut, President and Chief Operating Officer.
location: calgary, ab employees: 8 area of specialty: management of junior oil and gas producers 2008 revenue: $19 million
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sifton energy
There’s always new investment coming into the business. I don’t think you’d be decent management if you weren’t looking for opportunities. —Stanley Odut, President & Chief Operating Officer
developed land market. Sifton has capitalized on the latter by selling some of its land and strengthening its balance sheet to increase its drilling fund. However, Alberta’s hike in oil royalties—about a 20-percent increase for crude oil—has created a province-wide drilling slump, Odut says. Compared to the pre-royalty era, only 20 percent of the Albertan drilling-rig fleet is in use. New rates were intended to bolster province revenues but will not achieve the originally projected $1.4 billion income for 2009. “[The royalty scheme that took effect in January] appears to be a relatively high take for the province, and very definitely has stymied any drilling,” Odut says. But Odut and his management team brought their previous venture through tough times, and Odut is confident that, despite adverse market conditions, Sifton’s recent land sales will allow the company to increase development. “As a result of the current economic situation and the drilling malaise, we’re seeing some significantly reduced capital costs for drilling,” he says. “So that puts us in a very good situation going forward; we’ve got high deliverability prospects in a lowered capital-costs environment.” Choosing to focus on its Pembina Field wells, Sifton recently sold holdings in Alberta’s Garrington Field. “The Cardium [the producing formation at Garrington] is very amenable to the horizontal-drilling technique and the resulting wells are producing very nice, very high initial producing rates of high-quality oil,” he says. Horizontaldrilling and multistage-fracture techniques, both increasing in market dominance in the past five years, have helped wring the most oil from the highly developed and long-
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drilled area. “We’re drilling in fields that have probably been on production for the last 40 years,” Odut continues. “These are typically very tight reservoirs, meaning that they give up their oil or gas very sparingly.” Sifton has employed the techniques for the past year and a half, dramatically increasing production on some older wells from 15 barrels to 200 barrels a day. “We have really turned to this type of drilling to develop our properties, primarily in the Pembina oilfield,” Odut says. A junior oil company should be producing 1,000–10,000 BOEs per day before looking for acquisition, according to Odut, and Sifton is currently producing 800–850. “[At 1,000 BOEs per day,] a company becomes quite desirable, because a larger entity has to amortize their cost of acquisition,” Odut says. “If they buy a small company at 500 barrels a day, they’re going to have to amortize that cost by adding an additional 500 barrels a day for production, and meanwhile the cost for making an acquisition of a 10,000barrel-a-day company is not much different. So it really becomes an economy of scale.” Despite the downturn in the market, the Sifton management team continues to keep an eye out for a larger producer to acquire the smaller firm. “There’s always new investment coming into the business,” Odut says. “I don’t think you’d be decent management if you weren’t looking for opportunities.” In that event, will Odut repeat the build-and-sell process? It’s probably too soon to say. But he adds, “We do have a management team that is certainly in my opinion very good. Probably…they’d say, ‘If we were in that situation, we’d do it all over again.’ eiq
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energy international quarterly march/april 2010 27 #106, 8009 - 39th Street Phone: 403.266.3940 Leduc, AB, Canada T9E 0B3 To l l F r e e : 8 7 7 . 2 3 3 . 3 9 4 0 w w w. d e p a r t u r e e n e r g y. c a 24Hr Operations: 780.980.3900
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western ag enterprises, inc. Agricultural-tarp manufacturer looks to diversify with biomass by david hudnall at a glance location: tolleson, az employees: 250 year founded: 1984 area of specialty: tarp manufacture for agricultural, industrial, mining, transportation, and recreation industries
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corn-based ethanol—once heralded as the future of fuel in America—is not enjoying the same praise and prominence it was a few years ago. Growing concerns that its production will have an adverse effect on global food supply and prices have motivated alternative approaches to ethanol. Most notable among these alternatives is what is broadly referred to as biomass, or cellulosic ethanol: fuel from grass, wood, and inedible parts of plants. Start-ups are currently working towards commercializing the process, and a growing number of companies are examining their capabilities and technology, looking for a useful, and profitable, service they might provide to this emerging market. One such firm is
energy international quarterly march/april 2010
Western AG Enterprises, Inc., a tarp manufacturer based in Tolleson, Arizona. “Biomass is still in its infancy,” says Dick Carter, president of Western AG. “There are some test plants in motion, but nothing is really up and running yet. But we’ve been looking into the process in terms of how it’s stored, and we see a great opportunity for our company there.” Western AG was founded by Carter and partner Rod Tuinstra in 1984. In its early days, it provided a drying agent for alfalfa that decreased drying time by 30 percent. But then the company got involved with some hay exporters
western ag enterprises, inc.
Covering grain for the agricultural industry is just one ofWestern AG’s specialities.
With grain, there is a storage network already in place. But with biomass, people aren’t as experienced. There’s a niche waiting to be filled. —Dick Carter, President
who were looking for an alternative to storing their hay in barns. As Carter and Tuinstra began experimenting, they found that tarps were an effective, and much less expensive, solution. “We didn’t know anything at all about fabric at the time,” Carter says. Eventually that business took off; soon, customers wanted assistance in installing the tarps, so Western AG began providing that service as well. Today, the company specializes in covering hay, grain, trucks, and athletic fields. Its primary clients are in the agricultural, industrial, mining, transportation, and recreation industries, and it both leases and sells the tarps. “We cover 100 million square feet of material a year, including 8 million tons of hay,” Carter says. Hay tarps are roughly 40 percent of Western AG’s business. The company also performs silage coverage, in addition to manufacturing liners for containers heading overseas that need to retain moisture and producing liners for golf-course ponds or other temporary ponds. With its tarp business, though, Western AG markets itself as a much cheaper alternative to “hard storage”—buildings, barns, and other permanent structures. It can cover dry matter for $2 per ton per year,
whereas competitors are up around $17. “And our price includes tarps and installation, plus we train our customers to manage it themselves,” Carter adds. Biomass first landed on Western AG’s radar a few years back, when the company was on an advisory council with some of its fabric suppliers. The product is essentially the crop residue that would usually be plowed back into the ground—wheat straws, corn husks, etc. For use as an energy source, it’s baled and put into blocks—and Western AG is in the business of covering these blocks. The company discussed the potential for biomass storage with scientists in states like California, Nebraska, Wisconsin, and Minnesota, who all agreed that the product required covering and care. From there, Carter started attending meetings and conventions on the subject across the United States and in Europe. “With grain, there is a storage network already in place,” he says. “But with biomass, people aren’t as experienced. There’s a niche waiting to be filled.” The company has hired a full-time individual to help develop the market and is planning test runs with potential custom-
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speciality products
speciality products
western ag enterprises, inc.
ers. It’s in talks with Iogen, a Shell investment; Genera, a Dupont investment; Verenium, a BP investment; and Monsanto/ADM, an agricultural partnership. It’s also working with the University of Tennessee, the University of California, and the University of Idaho. For now, biomass is the focus of its diversification efforts. Carter says he’s got his eye on woodchip energy—another emerging market—although Western AG hasn’t yet developed a product for drying woodchips.
Covered stacks of biomass material, protected byWestern AG’s specialty product.
Western AG
Much of Western AG’s business is, as its name implies, in the West. But most biomass operations are further east, in the Midwest and along the East Coast, where crop residues from wheat and corn are more readily available. To capture market share, Western AG will have to expand its presence in these areas. But its absence up until now might be an advantage: since those areas might not yet be aware of the benefits of tarps, there’s an opportunity for new business. Plus, the likelihood of clean-energy legislation and other government mandates will subsidize and increase production of biomass, creating more momentum for Western AG. “We’re excited about it,” Carter says. “We’re looking to team up with some companies and get moving on this.” eiq
www.westernag.com
800-347-8274
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A BIOMASS STORAGE COMPANY • Store biomass for as little as $2.50 per ton* • Assist in design/planning of storage systems. • Can provide labor/management for managing storage systems • Present systems in place covering over 12 million tons of agricultural commodities yearly *This price includes materials, labor and overhead.
Western Ag Enterprises, Inc. wants to work with you in designing and implementing your storage needs for biomass. They have been implementing storage systems for hay, silage, and grain for over 20 years. They provide not only the materials but also a service of installing, removing and maintenance of materials used in the storage process.
speciality products
Nelson & Small’s vertical wind turbines.
Nelson & Small, INC. Wholesale distributor strives to ensure clients’ understanding of emerging alternative-energy products by denene brox
nelson & small, inc. has undergone a number of reinventions during its 70-year history. It stands to reason that an old company must be open to new products and current technologies in order to stay competitive. What began as a furniture-distribution business with a dealer-display showroom in the 1930s has emerged as a top distributor of electronics and alternative-energy product lines such as Panasonic, Rinnai, and Toyotomi. “One thing we’ve learned over the history of our company is to constantly adopt new ways in which we go to market,” says Peter LaRose, senior vice president.
“Strategies that worked in the 1950s don’t work in today’s world. A lot of companies fall into the trap of doing business as usual. But you have to find innovative ways of bringing a product to market.” Nelson & Small was founded in 1936 by Harold Nelson. He came to the United States from Yarmouth, Nova Scotia, at the age of eight and had early dreams of becoming a doctor. In the midst of the Depression, he got a job as a traveling furniture salesman and became so successful that he decided to start his own furniture showroom. “In the pre-
at a glance location: portland, me employees: 60 average annual revenue: $40 million web site: www.nelsonsmall. com
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nelson & small, inc.
Nelson & Small showroom displaying a Ruud Power Generator.
war years, it was very unusual for furniture stores to have a full array of furniture,” says his son, Kenneth Nelson, who now runs the company as CEO. “One of the things that he did was open a showroom in the Portland area so that dealers could send their customers in to actually see and touch what the furniture was like. That became the start of assisting dealers in selling their merchandise effectively,” Nelson says. After World War II, Harold Nelson’s cousin, Irving Small, joined the business and they switched their focus from distributing furniture to home appliances for Bendix, the company that invented the automatic washing machine. “We started concentrating on products that were transforming the home into a more efficient place,” Nelson says. Later, the company focused on electronics, snowmobiles, and in recent years, high-efficiency and alternative-energy products. “We started with energy-
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energy international quarterly march/april 2010
efficient heating and water-heating equipment about 20 years ago, and we have been looking to focus on the most efficient producers of heat and water heating,” Nelson says. “It’s been a natural progression being in the highefficiency energy business to now add solar, geothermal, and wind power.” Nelson says that training dealers and consumers about the products is the core of their business. Since federal incentives (such as the American Recovery and Reinvestment Act of 2009) are driving the growth of alternative energy, Nelson wants to ensure that end users are educated about the technology and the products that they represent. “We assist the dealer network with providing information about the technology,” he says. “We assist them with placing that information in the marketplace through advertising, trade shows, service schools, DVDs for in-store use, and our Web site. It’s an information-driven support and marketing
nelson & small, inc.
speciality products
A wind turbine by SouthwestWindpower is raised at Nelson & Small headquarters in Portland, ME, at a training session for new dealers.
system through the dealer network. What we are trying to accomplish is local representation in the community by highly knowledgeable people with good marketing tools that are cost effective so that the smaller merchants can compete with the chains effectively and provide a very high level of competent service.” The company also provides technical training. “Our service people are available by telephone seven days a week so that dealers and installers can call from job sites,” LaRose says. Nelson also sees that his company’s role is to guide manufacturers to strive for better uses of technology. “Part of our job is to look for new products and encourage the manufacturers that we deal with to always make new products that are providing real value—not new products like bigger tail fins on a Cadillac, but real advances under the hood that make a product do a better job.” eiq
a message from rheem manufacturing company Ruud congratulates Nelson & Small on 73 years of success and customer service. RuudWhole-Home Standby Power Generators reflect the spirit of the Ruud reputation for product reliability that has brought dependable performance and peace of mind to millions of homeowners around the world for more than a hundred years.The Ruud brand is distributed throughout the world and is a member of the Rheem family of quality brands. Rheem Manufacturing Company is an innovative global leader in quality air, heat, and water products for home and business. a message from kingspan solar Kingspan Solar is delighted to have Nelson & Small as a key distributor for its high-performance, complete solar-thermal packages. Kingspan Solar recognizes Nelson & Small as a pioneering force behind distributing world-class renewable technologies, offering advice on design and installations with technical support to customers.
energy international quarterly march/april 2010
33
Kingspan Solar is the world leading manufacturer of solar thermal vacuum tube collectors. solar tubes are designed exclusively to deliver hot water efficiently, even with a variable North American climate. • Provides up to 70% of annual hot water • 30% more effective than flat plate collectors • SRCC approved • 10 year guarantee • 25 year lifespan • Network of fully qualified and trained Kingspan Solar Accredited Installers to advise you on design, installation and grants Call us now on:
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speciality products
Energrow’s biofuel system provides on-site fuel production.
energrow inc.
significant savings that Hofer felt other farmers could benefit from as well.
Reducing costs for farmers with innovative renewable systems
Today, Energrow designs and manufactures these oil pressers for farmers, in addition to providing services like nutritional consultations, diesel-engine conversions, feasibility analyses, and on-site farm assessments. “We enable farms to be more self-sufficient and green,” Hofer says. “Farmers can make their own feed and fuel right on the farm with our product.” The product is composed primarily of an oil press, sediment tanks, and a filtration system. The press produces a pelletized feed and expels a cold-pressed oil that meets the European standard for straight vegetable oil (SVO) as a fuel and can be used for diesel-run vehicles and generators to produce power.
by david hudnall
at a glance location: newton, on year founded: 2006 area of specialty: farm-scale vegetable-oil presses and production systems web site: www.energrow. com
a swiss immigrant, jasmin hofer arrived in Canada 23 years ago and grew up helping out on her family’s dairy farm. Later, at the University of Waterloo, she studied language, business, and international trade. She also participated in the university’s renowned co-operative program, which enables students to run their own businesses during their co-op work terms. It was there that she started working on Energrow Inc., which she officially founded in 2006, as a response to the high input costs facing farmers. Hofer’s business was inspired by a visit to Europe, where she learned that straight vegetable oil was a high-quality diesel-fuel supplement/replacement. Soon, her father, Ernst—still running the dairy farm—built an oil-pressing system to cut down on his fuel costs, while still producing a feed for his animals. In his first year, he reduced more than 40 percent of his on-farm fuel bill, a
Unlike waste vegetable oil (used in cooking oils and fats), SVO is stable, clean, and requires no further processing for use as a fuel. (The main difference between SVO and biodiesel as diesel fuel is that biodiesel is a fuel that is altered to suit existing equipment, whereas SVO demands equipment alterations to run suitably.) Energrow recommends SVO as a solution for farmers because it is the most efficient in small-scale production. “SVO has just as much energy in [British thermal units per liter] as diesel fuel, requires no chemicals for production, makes no waste products, and,
energy international quarterly march/april 2010
35
speciality products
energrow inc.
The agriculture industry is a major user of electricity. Energrow’s aim is to help make the farmer a producer of that energy. —Jasmin Hofer, CEO & Founder
The facts on standard vegetable oil (SVO): • One acre of canola powers a diesel Volkswagen Golf/Jetta for 4000 miles. • SVO has just as much energy in BTU/L as diesel or biodiesel. • Recovering heat from a generator brings the engine from 40% to 90% efficiency. • Burning SVO is carbon neutral. The amount of CO2 taken in while growing the plant is emitted when it’s burned.
B.H. Ruby Electric Ltd. is proud to be a valued service provider to Energrow. We look forward to continue working with Energrow as they expand and develop `Energy as Nature Intended`!
B.H. Ruby Electric Ltd. has been designing and building controls for custom applications with projects worldwide since 1992. Call us today with your projects! We want to be part of the solution.
140 Jacob Street
-
Tavistock, Ontario - Canada N0B 2R0
Phone (519)655-2335 - Toll Free 1-888-218-7829 - www.bhrubyelectric.com
most importantly, is cheap to produce,” says Hofer, noting that by using an Energrow pressing system, farmers can produce fuel oil for under $0.29 per liter. The majority of Energrow’s clients are in Ontario—and it is the only manufacturer of small-scale systems in Canada— but the company is looking to expand its geographic footprint to the West and the United States. Individual farms are currently Energrow’s focus, though requests for largercapacity systems have come in. Demands from agriculture in other countries and provinces vary to degrees, but the increasing fuel-input costs is an overlying concern across borders. Competition is mostly overseas, so Hofer sees much room for growth in North America. Government assistance has also benefited the company. Through the Agricultural Adaptation Council (AAC), Energrow has received assistance from both federal and provincial governments to develop its systems and products. (Although, unlike other renewable-energy technologies, no grants are available to farmers for implementing oil-pressing equipment on farms.) The AAC also enabled Energrow to start applying the oil it produces to other onfarm applications for added value, including diesel-engine conversion kits. By converting a farm generator, a farmer can run the engine from the fuel produced on the farm to offset peak use times. In Ontario, the option to feed the grid is also possible, enabling any excess power produced to be fed to it. Hofer realizes SVO is not a solution for the general population, noting that a more overreaching and effective fuel will need to be developed to supply the immense fuel-consumption requirement of the Canadian and world population. But SVO is a solution for farming operations, where the crops are already being grown and the fuel is suited to run in new and existing farm equipment. “Energrow sees its future in enabling farmers to be more selfsufficient in their fuel production,” Hofer says. “Farmers can produce their own fuel, have their existing vehicles converted to run off their homegrown fuel, and even benefit from new tractor or diesel engines suited to run on SVO. The agriculture industry is a major user of electricity. Energrow’s aim is to help make the farmer a producer of that energy.” eiq
speciality products
CRTS workers performing an internal field-joint coating in Brazil.
Coating robotics technical services, inc. Leading the industry in robotically applied coatings for protecting pipelines by erica archer at a glance location: tulsa, ok employees: 83 area of specialty: internal and external fieldjoint coating for pipelines; production and assembly of rebarcoating plants 2008 revenue: $14.5 million
coatings in pipelines protect against corrosion and failure, and when pipelines are transporting an expensive commodity like crude oil, a failure can turn into a multimillion-dollar disaster. “A customer has a serious problem if he lets a pipeline internally corrode and start leaking,” notes Jim Huggins, president at CRTS, Inc. “It doesn’t matter what it’s leaking—saltwater, crude oil, gas, wet gas, copper slurry—they have lots of problems. They’ve lost the use of a multimillion-dollar asset that is now contributing to environmental pollution, and the product is not getting to market. The combined liabilities of the cleanup, repair, and lost revenue are staggering.” This is why Huggins’ company designs, manufactures, assembles, and programs a fleet of robots in various sizes to
enter pipelines at temperatures over 130 degrees Farenheit in the desert and under the sea. The company coats and inspects internal field-pipeline joints, coats exterior field joints, and manufactures rebar-coating plants. Construction companies and transporters of oil, natural gas, and water make up the customer base. Thirty years ago, CRTS used radioactive isotopes to control the robots; but today, the robots are manipulated through telemetry, eliminating the isotope-control system. Recently, the company patented a process for the robotic inspection of the pipe’s interiors, which will address customer requests. Real-time video gives engineers views of the pipe’s interior anatomy. CRTS also provides exterior coating services, but the interior coatings have proven to be a more lucrative mar-
energy international quarterly march/april 2010
37
speciality products
coating robotics technical services, inc.
We’re really the only guys that go worldwide and do internal field joint coating…We have 31 years of product innovation and applied field experience, making entry into this market even more difficult for our competition. —Jim Huggins, President
ket. “We have several external field-joint competitors with even more products and systems. In the internal business, we have very few competitors,” Huggins says. “We’re really the only guys that go worldwide and do internal field-joint coating. Plus, we have 31 years of product innovation and
applied field experience, making entry into this market even more difficult for our competition.” The international market has accepted internal field-joint coating more quickly than the domestic market. “American companies would rather have a repair and maintenance expense because they can deduct it today, rather than an increased capital cost that takes 37 or 40 years to depreciate,” Higgins says. To combat this lackadaisical attitude, CRTS stepped up its marketing. The company created a Web site early in the spread of the Web’s popularity, and trade shows, industry associations, and vendor referrals have also helped build their client base. Flat brochures were replaced with three-ring binders containing multimedia information. “I’m an engineer, and my primary partner’s an engineer,” Huggins says, explaining the line of thinking behind his approach. “You send me a nice three-ring binder with your products and a CD inside and a lot of cool stuff, and I will put that on my shelf for the next 20 years. It’s how engineers are.” CRTS’ dealings with one Middle Eastern rebar-plant customer show the company’s modus operandi of fairness and honesty. A number of the company’s rebar-coating-plant customers are in the Middle East, where salt-infused soil and sand can corrode metal through extended contact, increasing the need for coating. One rebar-plant customer sent a wire transfer in pounds rather than dollars, resulting in a large overpayment. “We got this opportunity to wire that money back before they even know they’ve overpaid us,” Huggins says. “The accountant wrote an e-mail the next day and says, ‘Oh my gosh. Thank you, thank you. I would have lost my job.’ We sold two more plants to those guys. Honest people like to deal with other honest people.” Huggins adds, “We have a dedicated multinational workforce striving to deliver a unique service to a global customer base in all kinds of harsh environments with zero defects. These kinds of things are no problem—it’s what we do for a living.” eiq
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Breakthrough developments in fossil, nuclear, and renewable fuels from
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The US Department of Energy
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energy international quarterly march/april 2010
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Powering Energy Innovation
AS America’s demand for energy grows, the Department of Energy (DOE) is rising to meet the challenge. By establishing clean-fuel initiatives to make the most of traditional fossil fuels, and investing in cutting-edge research to develop cleaner energy sources, the DOE is working toward a future of sustainable power. This special section spotlights three unique offices of the Department of Energy— the Office of Fossil Energy, the Office of Nuclear Energy, and the Office of Energy Efficiency and Renewable Energy—and explores how each energy source is being utilized across the country.
energy international quarterly march/april 2010
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Activating Emergent Technologies Through extensive research and development initiatives, the Office of Fossil Energy is funding projects that will produce clean, affordable energy derived from traditional fuel sources by Ian McInnes
I
t is the US Department of Energy’s (DOE) Office of Fossil Energy’s (OFE) mission to ensure that the United States continues to utilize the nation’s reserves of coal, crude oil, and natural gas. According to the OFE, “Fossil fuels supply 85 percent of the nation’s energy, and we are working on such priority projects as pollution-free coal plants, more productive oil and gas fields, and the continuing readiness of federal emergency oil stockpiles.” In January 2008, the US Energy Information Administration (EIA) said that its demonstrated reserve base for coal in the United States was 489 billion short tons, and according to the EIA, “the [United States] uses just over a billion short tons of coal each year.” As a magnet global coal exporter, responsibility for the advancement of clean coal use lies on the OFE. With the world’s attention particularly focused on climate change, carbon sequestration from coal use has moved to the forefront of fossil-energy dialogue. Research is underway to address emissions of carbon dioxide from coal combustion. Carbon capture separates carbon-dioxide from emissions sources and recovers it in a concentrated stream. The carbon-dioxide can then be sequestered, which puts the pollutant into storage, possibly underground, in such a way that it will remain there permanently.
42
energy international quarterly march/april 2010
CARBON CAPTURE Geologic reservoirs—in the form of depleted oil and gas reservoirs, unmineable coal seams, and saline formations—comprise one of the primary sinks for CO2 emissions captured from coal refineries.
energy international quarterly march/april 2010
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On October 2, 2009, US Energy Secretary Steven Chu announced the first round of funding from $1.4 billion from the American Recovery and Reinvestment Act for the selection of 12 projects that will capture carbon dioxide from industrial sources for storage or beneficial use. The first phase of these projects will include $21.6 million in Recovery Act funding and $22.5 million in private funding for a total initial investment of $44.1 million. The remaining Recovery Act funding will be awarded to the most promising projects during a competitive selection process. “This is a major step forward in the fight to reduce carbon-dioxide emissions from industrial plants. These new technologies will not only help fight climate change, they will create jobs now and help position the United States to lead the world in carbon-dioxide-capture technologies, which will only increase in demand in the years ahead,” Secretary Chu said. Projects include large-scale industrial carbon-capture and -storage projects that capture carbon-dioxide emissions from
44
industrial sources—such as cement plants, chemical plants, refineries, paper mills, and manufacturing facilities—and store the carbon dioxide in deep saline formations and other geologic systems. Projects that best demonstrate the ability to address their mission needs will be in the final portfolio that will receive additional funding for design, construction, and operation. (See projects on page 48) According to the EIA, as of January 1, 2009, the United States has estimated oil reserves of 21,317 billion barrels. Now, with finite oil reserves proving increasingly difficult and expensive to extract, prudent use of the nation’s remaining oil is paramount. In March 2009, Composite Technology Development Inc. (CTD) —in a DOEsponsored project through the OFE’s Oil and Natural Gas Program—successfully demonstrated how something as basic as an advanced heater cable could allow the United States to tap into vast reserves of oil shale. “With DOE’s support over two phases of this project, CTD has demon-
energy international quarterly march/april 2010
According to the EIA, the United States holds only 1.6% of the world’s oil supply, but it uses 24% of total global oil production.
strated a way to tap into the western oilshale resources,” says Dr. Victor K. Der, acting assistant secretary for the OFE. “With two-thirds of the world’s supply of oil shale in the United States, technologies such as this can go a long way toward bolstering the development of our domestic energy resources, creating jobs, and supporting energy security.” CTD researchers conducted 5,000 hours of continuous testing of its cable at temperatures ranging between 760 and 850 degrees Celsius. During the tests, CTD’s cable overcame many of the limitations of existing cables, which include conductor instability, moisture-induced degradation, and operating temperatures too limited to recover shale oil underground. The project was managed by the DOE’s National Energy Technology Laboratory (NETL). CTD’s successful test of its heater cable holds promise for heating the shale oil in situ, down to a depth of 5,000 feet, thus separating the kerogen from the crude oil without having to go through the expensive process of mining the oil-shale rock. If
“ With two-thirds of the world’s supply of oil shale in the United States, technologies such as CTD’s advanced heater cable can go a long way toward bolstering the development of our domestic energy resources, creating jobs, and supporting energy security.” Dr. Victor K. Der, Assistant Secretary for the Office of Fossil Energy
US crude oil reserves *Number in millions of barrels of oil 40,000
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future underground tests of the cable prove successful, operators should be able to extract a petroleum-like liquid that is fluid enough to be pumped to the surface. According to the OFE, the United States has reserves of approximately 3.7 trillion barrels of oil locked away in oil shale deposits; the Green River shale formation alone, in Colorado, Utah, and Wyoming, has as much as 1.1 trillion barrels of oil equivalent. Compared to large-scale mining and surface processing, in situ oil shale processes utilizing CTD’s advanced-cable system could cut recovery costs in half while reducing environmental impacts. The country’s reserves of natural gas have risen by more than a third during 2009, to 2,074 trillion cubic feet. This sharp increase is due to recent technological developments made to release natural gas from shale rock on US soil. Currently, the NETL has selected nine new projects targeting environmental tools and technology for shale-gas and coalbedmethane (CBM) production. NETL’s goals
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According to the OFE, the United States has reserves of approximately 3.7 trillion barrels of oil locked away in oil-shale deposits
for these projects are to improve management of water resources, water usage, and water disposal, and to support science that will aid the regulatory and permitting processes required for shale-gas development. A primary goal of the OFE’s Oil and Natural Gas Program is to enhance the responsible development of domestic natural-gas and oil resources that supply the country’s energy. A specific objective is to accelerate the development and demonstration of technologies that will aid the country’s independent producers in dealing with use and treatment of water during natural-gas and oil production. America’s energy industry faces new challenges, as well as new opportunities in developing resources such as shale gas. The recipients will help provide new technologies, tools, strategies, and knowledge, working collectively toward reliable and environmentally responsible development of natural gas. (See projects on page 48) President Obama’s allocation of $881.6 million for the OFE in his 2010 budget
energy international quarterly march/april 2010
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will prove an imperative measure for sustaining the nation’s power supply. Proposed funding will “support improved energy security and rapid development of climate-oriented technology. The request includes $617.6 million for Fossil Energy Research and Development, $229 million for the Strategic Petroleum Reserve, $11.3 million for the Northeast Heating Oil Reserve, and $23.6 million for the Naval Petroleum Reserves.” In addition, “the OFE R&D [research and development] program will be complemented by $3.4 billion from the American Recovery and Reinvestment Act of 2009. These funds will be used to advance research, development, and deployment of carbon-capture and -storage technologies.” This funding for research and development will lead to advancements in the efficient capture and use of America’s fossil fuels, and will provide opportunities for growth and success to innovative and forward-thinking companies. For more information on current projects and funding programs from the OFE, visit www.fossil.energy.gov. eiq
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Large-scale industrial carbon-capture and -storage projects will remove carbon dioxide from industrial sources for storage or beneficial use. Below are the most recent carbon-capture projects funded by the DOE.
Air Products and Chemicals Inc. Allentown, Pennsylvania A state-of-the-art system to concentrate CO2 from two steam-methane-reformer waste streams will be designed, constructed, and demonstrated at Port Arthur, Texas. More than one million tons of CO2 will be delivered per year via pipeline for sequestration into the Oyster Bayou oilfield for enhanced oil recovery by Denbury Onshore LLC. (DOE Share: $961,499) Archer Daniels Midland Company Decatur, Illinois Archer Daniels Midland Company will partner with other research organizations to demonstrate Dow ALSTOM’s advanced amine process to capture CO2 from industrial flue gases and sequester the CO2 in the Mt. Simon Sandstone reservoir. (DOE Share: $1,480,656) Battelle Memorial Institute, Pacific Northwest Division Richland, Washington Battelle researchers will partner with Boise White Paper LLC and Fluor Corporation to demonstrate geologic CO2 storage in deep-flood-basalt formations in the state of Washington. Fluor Corporation will design a customized version of its Econamine Plus carbon-capture technology for operation with the specialized chemical composition of exhaust gases produced from the combustion of black-liquor fuels. (DOE Share: $500,000) C6 Resources Salno, California The objective is to capture and transport approximately one million tons per year of CO2 streams by pipeline from facilities located in the Bay Area of California, to be injected more than two miles underground into a saline formation. C6 Resources, an affiliate of Shell Oil Company, will conduct the project in collaboration with Lawrence Berkeley National Laboratory and Lawrence Livermore National Laboratory. (DOE Share: $3,000,000) E ICIENCY & R
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CEMEX USA Houston, Texas CEMEX USA will partner with RTI International to demonstrate a dry sorbent CO2capture technology at one of its cement plants in the United States. CEMEX will design and construct a dry sorbent CO2capture and -compression system, pipeline (if necessary), and injection station. This commercial-scale carbon-capture and -sequestration demonstration project will remove up to one million tons of CO2. (DOE Share: $1,137,885) ConocoPhillips Houston, Texas ConocoPhillips will demonstrate new advancements that improve conversion efficiency and economies of scale for carbon-capture systems at a petcoke-based 683-megawatt integrated-gasification cycle-power plant adjacent to its existing refinery in Sweeny, Texas. About 85 percent of the CO2 from the process stream will be captured and more than five million tons sequestered into a depleted oil or gas field. (DOE Share: $3,014,666) Leucadia Energy LLC New York, New York Partnered with Denbury Onshore, Leucadia Energy will demonstrate advanced technologies that capture and sequester more than 4 million tons of CO2 emissions at the Lake Charles co-generation petroleum coke-tochemicals (methanol) project to be located near Lake Charles, Louisana The project will transport compressed CO2 through a 12-mile pipeline that connects to Denbury’s Green Line pipeline system in Louisiana so that it can be used for enhanced oil recovery in the Hastings and Oyster Bayou oilfields in Texas. (DOE Share: $540,000). Mississippi Gasification LLC, a Leucadia affiliate, is also building a petcoke-tosubstitute natural-gas plant in Moss Point, Mississippi, to demonstrate large-scale recovery, purification, and compression of four million tons per year of CO2 per year. (DOE Share: $840,000)
energy international quarterly march/april 2010
Wolverine Power Supply Cooperative Inc. Cadillac, Michigan Investigators will demonstrate advanced amines and additives supplied by Hitachi and Dow to capture 300,000 tons of CO2 per year. Wolverine Power Supply Cooperative will be building a 600-megawatt circulating-fluidized-bed power plant near Rogers City, Michigan. (DOE Share: $2,723,51) Praxair Inc. Danbury, Connecticut Praxair will partner with BP Products North America, Denbury Resources, and Gulf Coast Carbon Center to demonstrate capture and sequestration of CO2 emissions from an existing hydrogen-production facility in an oil refinery into underground formations for CO2-enhanced oil recovery. This demonstration will be performed at the BP refinery, and a lateral pipeline will be built to connect to Denbury’s Green Pipeline to transport one million tons of CO2 per year. (DOE Share: $1,719,464) Shell Chemical Capital Company Houston, Texas The objective of this project is to capture, condition, and transport by pipeline approximately one million tons per year of by-product and off-gas CO2 streams from Louisiana facilities located between Baton Rouge and New Orleans for geologic storage. (DOE Share: $3,000,000) University of Utah Salt Lake City, Utah More than one million tons of CO2 per year will be captured from various industrial sources, compressed, and transported via two new intra-state pipelines for CO2-enhanced oil recovery and deep saline-sequestration research in Kansas. Beneath each enhanced oil-recovery target, a major saline aquifer spanning most of Kansas will be used for CO2 injection. (DOE Share: $2,696,556)
Shale-gas-development initiatives
The OFE is currently funding carbon-capture initatives at existing coal plants.
The Office of Fossil Energy’s National Energy Technology Laboratory has allocated funding for new projects targeting environmental tools and technology for shale-gas and coalbed-methane (CBM) production. Below are the most recent shale-gas projects funded by the DOE. ALL Consulting Tulsa, Oklahoma The objective of this project is to develop a modeling system that will allow operators and regulators to plan all aspects of water management associated with shale-gas development, including water supply, transport, storage, use, recycling, and disposal. This system will be used in planning, forecasting, permit tracking, and compliance monitoring. (DOE share: $776,574; recipient share: $334,496; duration 36 months)
Ground Water Protection Research Foundation Oklahoma City, Oklahoma This project will develop a new hydraulicfracturing module as an add-on to the well-known Risk-Based Data Management System. The module will assist regulators and operators in enhancing protective measures for source water and streamlining the well-permitting process. (DOE share: $845,923; recipient share: $211,474; duration 24 months)
General Electrical Company Niskayuna, New York This project will develop a low-cost, mobile process to treat the total dissolved solids in the flowback water from hydraulic-fracturing operations. The researchers will develop both a flowback-water-pretreatment process and a membrane-based partial demineralization process that yields an effluent suitable for reuse as hydraulic-fracturing water. (DOE share: $799,897; recipient share: $199,976; duration 18 months)
Geological Survey of Alabama Tuscaloosa, Alabama The primary objective of this research is to analyze and develop strategies for water management in the CBM reservoirs of the Black Warrior basin. The study will develop a large, high-quality database and GIS that will provide a basis for more efficient development of CBM and identification of beneficial uses of produced water. (DOE share: $725,647; recipient share: $314,316; duration 36 months)
West Virginia University Morgantown, West Virginia The primary objective of this project is to develop and demonstrate a process for the frac-water returns from Marcellus Shale wells. The process will include a pretreatment filter coupled with a combination of one or more treatment elements. (DOE share: $609,619; recipient share: $390,381; duration 32 months)
Altela Inc. Albuquerque, New Mexico This project will demonstrate that the AltelaRain technology can be successfully deployed in a cost-effective manner to treat the produced and flowback water from Marcellus Shale, and that it can operate within state and federal regulatory requirements. (DOE share: $886,025; recipient share: $912,316; duration 18 months)
University of Arkansas Fayetteville, Arkansas The goal of this project is to develop a water-management system by modifying and integrating a water-resource simulation model with a modern enterprisegeographic-information system (GIS). This will provide a science-based tool that can be used to support development of energy resources in the Fayetteville Shale region of Arkansas. (DOE share: $636,467; recipient share: $179,517; duration 24 months)
University of Pittsburgh Pittsburgh, Pennsylvania This project will evaluate the potential for combining and treating two waste streams (flowback water and acid-mine drainage) for reuse as a frac fluid, and will also develop novel viscosity modifiers for water high in total dissolved solids. The project aims to advance reliable and environmentally responsible development of natural gas. (DOE share $794,225; recipient: $269,011; duration 36 months)
Fossil’s future The OFE has many R&D projects, initiatives, and technologies for developing fossil fuels, including: • Clean Coal Power Initiative • FutureGen project • Biomimetics • Coal Utilization Science Program • Computational Energy Science Innovations for Existing Plants Program, which includes: • Carbon capture for the existing coal fleet • Reducing the existing fleet’s reliance on water • Reducing mercury emission for the existing fleet • Carbon Sequestration Leadership Forum • Regional Carbon Sequestration Partnerships • Core Carbon Sequestration Program Hydrogen & Clean-Fuel-Research Programs, including: • High-hydrogen-content fuels from coal • Fuel-cell research initiatives, such as the Solid State Energy Conversion Alliance
energy international quarterly march/april 2010
49
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Delivering the Nuclear Renaissance The Nuclear Power 2010 program is exhibiting powerful momentum under the Office of Nuclear Energy, and orchestrating a national resurgence in commercial nuclear power by Adolfo Pesquera
50
N
ot long ago, future prospects for nuclear-energy development in the United States seemed ill fated. Following the 1979 partial-core-meltdown accident at Three Mile Island near Harrisburg, Pennsylvania, a national public outcry made it politically unfeasible for government and industry leaders to pursue a nuclear option to meet the nation’s energy needs. Then, on September 24, 2007, the first license application was submitted to the Nuclear Regulatory Committee (NRC) for a new nuclear plant in 29 years. NRG Energy Inc. and South Texas Project (STP) Nuclear Operating Company filed a Combined Construction and Operating License Application with the NRC to build two new nuclear units adjacent to two existing units in Matagorda County, Texas. This South Texas Project units 3 and 4, anticipated to be online by 2015, will provide enough power to service more than two million homes. “It is a new day for energy in America,” says David Crane, president and CEO of NRG Energy. “Advanced-technology nuclear power plants like STP 3 and 4—generating a vast amount of electricity cleanly, safely, and reliably—will make an enormous contribution toward the greater energy security of the United States.”
energy international quarterly march/april 2010
NUCLEAR FISSION The Office of Nuclear Energy promotes nuclear power as a resource capable of meeting the nation’s energy, environmental, and national-security needs by breaking through technical and regulatory barriers through research, development, and demonstration.
energy international quarterly march/april 2010
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The NRG and STP Nuclear Operating Company application was the first in a wave of applications submitted by energy consortiums to the NRC. But the energy industry’s renewed interest in nuclear power would not have been possible without the Energy Policy Act of 2005 and the Office of Nuclear Energy (NE)’s role in advancing new nuclear technologies. Faced with increasingly unstable and costly carbon-based fuel supplies, and amid growing concerns over a link between carbondioxide emissions and global climate change, Congress is taking a hard look at nuclear options that have been shelved for more than two decades. Key provisions in the Energy Policy Act include liability protection and $2 billion in standby support for the first six new reactors built in order to defray the cost of delays caused by litigation. Emerging plants will receive a credit of 1.8 cents per kilowatt-hour for the first eight years of operation; and, contingent upon Congress appropriating funds, the Secretary of Energy is authorized to provide loan guarantees of up to 80 percent of a project’s cost for advanced-nuclear facilities.
52
The NE leads government efforts to enhance the nation’s nuclear infrastructure, to discover new nuclear-energy-generation technologies, and to develop advanced-fuel technologies that maximize output from nuclear energy. However, bringing new nuclearenergy capacities online will not come close to meeting the nation’s energy needs if new reactors are simply replacing existing plants. The current fleet of reactors represents about 20 percent of US electric production and more than 70 percent of all non-carbon-dioxide-emitting electric power. Therefore, the NE is refining safety procedures to keep 104 existing commercial reactors operating. By 2030, despite a projected 50 percent increase in energy demands, these existing plants would begin shutting down after reaching the end of their first license-renewal period. The original licenses were for 40 years, but a 20-year renewal is available and encouraged. In a “Life Beyond 60” workshop conducted by the NRC and the DOE in 2008—with participation from industry, national laboratories, academia, and international representatives—attendees drew a promising conclusion on the license issue.
energy international quarterly march/april 2010
The nation’s current fleet of nuclear reactors represents about 20% of US electric production.
They found that there is no significant technical or industry issue preventing the future extension of nuclear reactor licenses–a vital step toward the expansion of the Americannuclear power grid. Among the NE’s mission-critical mandates is administering the Nuclear Power 2010 program—a joint government/industry costshared effort to identify sites for new nuclear plants, advance nuclear technologies to bring them to market, and evaluate the business case for building new nuclear plants. The NE’s programs include plans for deploying light-water and gas-cooled nuclear reactors, as well as managing collaborative research and development initiatives with leading universities. Government involvement in the Nuclear Power 2010 program is intended to wind down by December 2010. At that juncture, the industry is expected to have sufficient tools and momentum in place to complete more than 32 nuclearreactor projects that are now under way. Nuclear Power 2010 provides for streamlined regulatory processes such as the Early Site Permit and the Combined Construction
Pending applications for new nuclear-power plants in the United States
4 1 5
17 20 3
12 6 8 2
9
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18
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22 11
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16 13
14
Plant Site
Company
1. Elmore County, ID
Alternate Energy Holdings/ UniStar
2. Vicinity of Amarillo, TX
Amarillo Power/UniStar
Plant Site
Company
Constellation/UniStar
14. M iami-Dade County, FL (Turkey Point)
Florida Power & Light
3. Calvert County, MD (Calvert Cliffs)
Projected nuclear generation 4. O swego County, NY
15. G len Rose, TX (Comanche Peak) Luminant Milerepresents Point) The(Nine red line the totalConstellation/UniStar generating capacity of current and planned reactors, assuming extended operations to 80 years. The unshaded gap below the line represents lost capacity if the current reactor fleet is decommissioned. 16. M atagorda County, TX 5. Fermi, MI (Fermi) Detroit Edison (South Texas Project) NRG Energy/STPNOC 6. L ouisa County, VA 500 gigawatts 17. L uzerne County, PA (North Anna) Dominion (Bell Bend) PPL Corp./UniStar 7. Cherokee County, SC 18. W ake County, NC Duke 400(William States Lee) (Harris) Progress Energy 8. Davie County, NC Duke 19. Levy County, FL Progress Energy 9. Oconee County, SC 300 20. L ower Alloways Creek, (Oconee) Duke NJ (Salem/Hope Creek) PSEG 10. West Felciana Parish, 21. F airfield County, SC South Carolina Electric & Entergy 200 LA (River Bend) (V.C. Summer) Gas 11. Claiborne County, MS 22. B urke County, GA (Grand Gulf) Entergy (NuStart) (Vogtle) Southern Company 100 12. Clinton, IL (Clinton) Exelon 23. Jackson County, AL 13. Victoria County, TX Exelon (Bellefonte) TVA (NuStart) 20 75
20 70
20 65
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20 55
20 50
20 45
20 40
20 35
20 30
20 25
20 20
20 15
20 10
20 05
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Current reactors, 40 years
New capacity considered 8 builds energybeing international quarterly march/april 2010 per 53 year starting 2049
Current reactors, 60 years
4 builds per year starting 2021
Non-carbon-emmitting capacity
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Net electricity generated in the United States by fuel source
49.0% Coal 1.6% Petroleum
20.0% Natural gas
19.4% Nuclear
2.4% Renewables (non-hydro)
Non-net-carbon-emmitting electricity sources
7% Hydropower 24.9% Hydropower
2.8% Geothermal, solar, wind
72.3% Nuclear
and Operating License that NRG Energy Inc. utilized in its application. The Early Site Permit program was developed to enable a complete site evaluation before a utility makes a decision to build a nuclear plant. Dominion Energy Inc., System Energy Resources Inc., and Exelon Corp. were competitively selected by the DOE in 2002 to test the Early Site Permit process. Each company successfully obtained permits from the NRC by making use of one of its current commercial sites and paying at least 50 percent of the total application cost. Despite Secretary Chu’s support of nuclear energy and NE programs, the Obama administration has endured significant criticism for cutting nuclear-program budgets. In a statement to US House and Senate conferees following their agreement on
energy appropriations, Alex Flint, senior vice president of governmental affairs for the Nuclear Energy Institute, expressed his views: “The industry is particularly pleased that the energy and water-appropriations package approved by House and Senate negotiators increases to $105 million–$85 million above the administration’s request—the federal contribution to the cost-shared Nuclear Program 2010 partnership,” Flint remarked. The House-Senate Fiscal 2010 appropriation for next-generation nuclear-plant development was $220 million, which Flint noted was $30 million above the Nuclear Energy Institute’s request. The conferees were applauded for restoring funding to the Senate-approved level of $35 million for nuclear-research programs at universi-
4
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energy international quarterly march/april 2010 5
17 20
12
3
The Nuclear Power 2010 program is a joint government/industry cost-shared effort to advance nuclear technologies.
ties, and for the additional $136 million in funding designated for nuclear-fuel-cycle research and development. Future loan guarantees provided for in the Energy Policy Act, however, were not as forthcoming. “It is disappointing that the fiscal 2010 budget does not seek additional funding for federal loan guarantees,” Flint said. “Sixteen applications for as many as 25 new reactors that would be built over the next 10–20 years are pending before the NRC… It is similarly disconcerting that funding for the federal government’s nuclear-waste-management program would drop to $196 million,” he added. “Sufficient funds should be made available to advance the application through the licensing process while the blue-ribbon commission being formed by Energy Secretary Steven Chu
4 1 5
17 20 3
12 6 8 2
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“ The industry is particularly pleased that the energy- and water-appropriations package approved by House and Senate negotiators increases to $105 million—$85 million above the administration’s request—the federal contribution to the cost-shared Nuclear Program 2010 partnership.” 23
22
11
15
19
10
16
13
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Alex Flint, Senior Vice President of Governmental Affairs for the Nuclear Energy Institute
Projected nuclear generation The red line represents the total generating capacity of current and planned reactors, assuming extended operations to 80 years. The unshaded gap below the line represents lost capacity if the current reactor fleet is decommissioned. 500 gigawatts
400
300
200
100
20 75
20 70
20 65
20 60
20 55
20 50
20 45
20 40
20 35
20 30
20 25
20 20
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20 05
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Current reactors, 40 years
New capacity being considered
8 builds per year starting 2049
Current reactors, 60 years
4 builds per year starting 2021
Non-carbon-emmitting capacity
energy international quarterly march/april 2010
55
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NRG Energy Inc. and South Texas Project (STP) Nuclear Operating Company filed a Combined Construction and Operating License Application with the NRC to build two new nuclear units, adjacent to these two existing units, STP units 1 and 2, in Matagorda County,Texas.The South Texas Project units 3 and 4, anticipated to be online by 2015, will provide enough power to service more than two million homes.
Half of the nuclear-energy industry’s Possibly the most formative challenge for current workthe NE lies in maintaining a highly skilled and specialized workforce in the nuclear force will be sector. The Nuclear Energy Institute eseligible to retimates that half of the nuclear-energy industry’s current workforce will be eligible tire during the to retire during the next 10 years. As a renext 10 years.
evaluates the future government strategy to manage used nuclear fuel.”
then meet government-required specifications for recycle or disposal.
Today, the NE is looking at alternative methods to safely deal with radiotoxic materials. The agency hopes to substantially reduce radiotoxicity through the research and development of new recycling processes. One such procedure is known as UREX+, and is being developed at the Argonne National Laboratory. It is a multi-step process for separating out the high-risk elements of spent nuclear fuel. Argonne plans to demonstrate that all nuclear spent-fuel components can be separated by an aqueous process and will
sponse to this looming talent shortage, US Energy Secretary Steven Chu announced grants valued at $9 million to fund education for a new generation of workers in the nuclear field. One-third of that funding will
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energy international quarterly march/april 2010
go to 86 nuclear-science and -engineering students across the country. The remaining funds will be delivered as grants among 29 universities and colleges in 23 states to advance nuclear-energy research. “America’s leadership in nuclear research will be critical in addressing the country’s long-term energy-independence and climate-change goals,” said Secretary Chu. “We need to ensure that the next generation of nuclear scientists and engineers have the training they need to research, design, build, operate, and maintain US nuclearpower plants.” eiq
Fiscal year 2010 nuclear-energy funding summary Office of Nuclear-Energy Activities
FY 2008 Current Appropriation
FY 2009 Original Appropriation
FY 2010 Budget Request
University Research Program
-
$5,000
-
Nuclear Power 2010
$133,771
$177,500
$20,000
Generation IV
$113,732
$180,000
$191,000
Nuclear Hydrogen Initiative
$9,668
$7,5000
$0
Advanced-Fuel-Cycle Initiative
$178,017
$145,000
$192,000
Radiological-Facilities Management
$48,119
$66,146
$77,000
Idaho-Facilities Management
$115,935
$140,000
$203,402
Idaho-Sitewide Safeguards and Security
$75,261
$78,811
$83,358
Program Director
$80,872
$73,000
$77,872
Transfer from State Department
$2,000
-
-
Congressional-Directed Projects
-
$2,854
-
Use of Prior-Year Balance
-
($5,000)
-
Less Security Charge for Reimbursable Work
($3,003)
-
-
Total Nuclear Energy Funding
$754,372
$870,811
$844,632
energy international quarterly march/april 2010
57
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Cultivating a Sustainable Outlook The Office of Energy Efficiency and Renewable Energy is investing in leadingedge research to continually develop the nation’s bank of sustainable-energy sources by Christopher Cussat
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T
he federal government has initiated a national push toward alternative and renewable solutions to address our nation’s energy needs. Signed into law by President Obama on February 17, 2009, the American Recovery and Reinvestment Act of 2009 calls for significant action to ensure our nation’s energy independence. Currently, more than 50 percent of renewable energy helps produce electricity. In 2008, approximately 9 percent of the country’s electricity was generated from renewable sources. In fact, overall consumption of marketed renewable fuels grows approximately 3.3 percent each year—much faster than the 0.5-percent annual growth in total energy use in the United States. One organization studying, managing, and orchestrating the future of US energy is the DOE’s Office of Energy Efficiency and Renewable Energy (EERE). The mission of the EERE is to strengthen America’s energy security, environmental quality, and economic vitality in public-private partnerships that enhance energy efficiency and productivity. The Recovery Act has already allotted $16.8 billion for the EERE’s programs and initiatives. The EERE’s program activities are conducted in partnership with the private sector, state and local governments, DOE national laboratories, and universities. The majority of the EERE’s funds are distributed throughout
energy international quarterly march/april 2010
SOLID BIOMASS Biomass is a clean, renewable-energy source that can help to significantly diversify transportation fuels in the United States.The EERE is helping to transform the nation’s renewable and abundant biomass resources into costcompetitive, high-performance biofuels, bioproducts, and biopower.
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N EW Y ABLE ENERG ER GY
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private businesses, industry segments, and academic facilities that are advancing energy-efficient technologies. Active EERE initiatives include: Energy-Efficiency and Conservation-Block Grants for Retrofit Ramp-up and General Innovation-Fund Programs
Opened in October 2009, this funding opportunity announcement (FOA) focuses on innovative state- and local-government programs funded under the Recovery Act. This FOA will use up to $453.72 million in Recovery Act and Energy Efficiency and Conservation Block Grant funds for competitive grants awarded in two topical areas: the Retrofit Ramp-up Program and the General Innovation Fund. The goal of this competitive FOA is to stimulate activities that move beyond traditional public-awareness campaigns, program maintenance, demonstration projects, and other one-time strategies and projects. Ideally, these projects will sustain themselves beyond the grant period by designing a vi-
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In 2008, approximately 9% of the electricity consumed in the United States was generated from renewable sources.
able strategy for program sustainability into the long-term program plan. New Private Sector Partnership to Accelerate RenewableEnergy Projects
Also initiated in October 2009, the DOE will provide up to $750 million in funding to accelerate the development of conventional renewable-energy-generation projects. This funding will cover the cost of loan guarantees, which could support as much as $4–8 billion in lending to eligible projects. “A renewable-energy economy is a true opportunity to create new jobs and reinvigorate America’s competitiveness. American innovation can be the catalyst that jumpstarts a new clean-energy Industrial Revolution,” notes US Energy Secretary Steven Chu. The partnership also demands the rapid deployment of renewable-energy projects, electric-power transmission projects, and cutting-edge biofuel projects, all scheduled to commence construction before September 30, 2011. This first solicitation under
energy international quarterly march/april 2010
the new program will seek loan-guarantee applications for conventional renewableenergy-generation projects, such as wind, solar, biomass, geothermal, and hydropower. $500 Million in Awards for Clean-Energy Projects
Initiated in September 2009, this FOA marked a major milestone in the effort to spur private-sector investments in clean energy and create new jobs for America’s workers. As the DOE’s first round of awards from the Recovery Act, this program provides cash assistance to energy-production companies in place of earned tax credits. The new funding creates additional upfront capital, enabling companies to create jobs and begin construction immediately. This program is expected to provide more than $3 billion in financial support for clean-energy projects by providing direct payments in lieu of tax credits. These payments will support an estimated 5,000 biomass, solar, wind, and other renewableenergy-production facilities throughout the country. As a result of this first round of
“ A renewable-energy economy is a true opportunity to create new jobs and reinvigorate America’s competitiveness. American innovation can be the catalyst that jumpstarts a new clean-energy Industrial Revolution.” Steven Chu, US Energy Secretary
Illustration of a typical Beacon Power 20-megawatt flywheel frequency regulation plant.
energy international quarterly march/april 2010
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ER GY
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EW Y ABLE ENERG
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N
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N EW Y ABLE ENERG ER GY
E ICIENCY & R
CLEAR
E ICIENCY & R
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24% Natural gas 23% Coal
37% Petroleum
Renewable Energy’s Role A breakdown of energy usage in the United States.
9% Nuclear
7% Renewable, which breaks down as follows: 53% Biomass
funding, more than 2,000 Americans will have access to jobs in the renewable-energy industry (both in construction and manufacturing), while moving the nation closer to meeting the Obama Administration’s goal of doubling renewable-energy generation in the next few years.
rgy in the United States
$59 Million Loan for WindEnergy Development
In July 2009, the DOE offered $59 million in conditional loan guarantees to Nordic Windpower USA and Beacon Power to expand their wind-energy production and storage plants. “These projects represent the innovative technologies that will help America reduce its dependence on fossil fuels and fight climate change, while moving the nation closer to meeting the president’s goal of doubling renewable power,” Secretary Chu explains. Nordic Windpower manufactures and sells innovative two-bladed, utility-scale wind turbines with proprietary, flexible teeterhub technology. The one-megawatt N1000 turbine is designed to provide the lowest
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Funding from the American Recovery and Reinvestment Act has allowed more than 2,000 Americans to gain access to jobs in the renewableenergy sector.
1% Solar 5% Geothermal 7% Wind 34% Hydropower
maintenance and installation cost, and high reliability for community wind and distributed-utility projects. The DOE funding will support the expansion of its assembly plant in Pocatello, Idaho. “Nordic’s expansion will create new and skilled green jobs to boost the economy and help meet America’s growing energy needs with clean wind power,” said Tom Carbone, CEO of Nordic Windpower. “President Obama and Secretary Chu are acting decisively to invest in a clean and sustainable WA economy with ‘shovel ready’ renewable-enND MTWe appreciate ergy projects such as Nordic’s. OR the DOE’s vote of confidence in our innovaID SD tive technology and our business WY model”.
the hub to dissipate turbulent winds before they can reach or damage the drive train, increasing reliability and ensuring virtually maintenance-free operations. The DOE’s offer to Beacon Power would finance more than 60 percent of Beacon’s planned 20-megawatt flywheel-based energy-storage plant to be located in Stephentown, New York. The plant, which will provide frequency regulation services, will help stabilize and enhance the performance of the grid. Its emissionfree operation will also significantly reduce NH ME VT carbon dioxide levels, as compared to fossilMN fuel-based usedMAtoday. WI regulation methods NY MI
RI
CT IA “We’re extremelyOH pleasedPAby theNJ DOE’s NV IL IN DE commitment UT Nordic turbines are particularly well-suited decision to issue a conditional CO WV VA MD CA MO PowerKYfor a loan guarantee for community wind-power developers KS to Beacon DC for NC this 20 MW energy-storage plant,” said Bill to own and operate. Nordic’s turbine TN OK AZ SC of Beacon Power. AR president and CEO NM Capp, technology is a proprietary, flexible AL GA federal funding and MSanticipated “With this teeter-hub, which enables a two- rather LA TX expected plant construction, we will make a than three-bladed one-megawatt design, major transition from development and pilot reducing weight and load and thus the FL AK operation ofstate our flywheel technology to fullcost of manufacturing, transportation, Have HI scale mandates commercialfor deployment. For New York, installation, and maintenance. With this renewable-energy and later other regions where plants technology, the N1000’s rotor blades flex at initially, generation
energy international quarterly march/april 2010
NE
NORDIC WINDPOWER The company manufactures and sells innovative two-bladed, one-megawatt N1000 turbines.This design provides the lowest maintenance and highest reliability for community wind and distributed-utility projects.
energy international quarterly march/april 2010
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CLEAR
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Renewable Energy Incentives
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Investment in and use of renewable energy has been encouraged by a range of state- and federal-government incentives. The following are the major initiatives that encourage the use of renewable energy:
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24% Natural gas 23% Coal
37% Petroleum
Renewable Energy’s Role A breakdown of energy usage in the United States.
9% Nuclear
Secretary Chu agrees. “These grants will 1% Solar help America’s businesses launch clean5% Geothermal energy projects, putting Americans back to 7% Wind work in good construction and manufacturing jobs. The initiative will help double our 34% Hydropower renewable-energy capacity over the next few years and make sure America leads the world in creating the clean-energy economy of the future” he says.
could be built, it will 7%also signal a dramatic Renewable, which shift to a cleaner, more sustainable method of down providing frequencybreaks regulation onas thefollows: grid.” Through efforts like53% these, the DOE and the Biomass EERE are committed to greatly expanding the country’s access to and use of renewable-energy technologies. “The Recovery Act is investing in our long-term energy needs while creating jobs in communities around the country,” says Treasury Secretary Tim Geithner. “This renewable-energy program will spur the manufacture and development of clean energy in urban and rural America, allowing us to protect our environment, create good jobs, and revitalize our nation’s economy.”
For more information on applying for the EERE’s award funding, visit www.grants. gov. This Web site provides access to more than 900 grant programs from 26 federal grant-making agencies and provides a central location for financial-assistance applications. eiq
WA
NH ME VT
ND
MT
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OR ID
WI
SD
NV CA
IA
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NY MI
WY IL
KS OK
NM TX
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PA
OH
IN
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WV VA NC
TN
RI CT NJ DE MD DC
SC
AR LA
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MS
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GA
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AK HI
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Have state mandates for renewable-energy generation
energy international quarterly march/april 2010
Federal Renewable-EnergyProduction Tax Credit (PTC) An inflation-adjusted tax credit for electricity produced from qualifying renewable sources or technologies. Green Power Programs US consumers in many states can purchase electricity generated by renewable-energy resources, termed Green Power. There are more than 500 electric utilities in 34 states now offering green power to their customers. Most of these programs sell power produced by new wind and landfill gas to energy projects. State Financial Incentives Many states subsidize the installation of renewableenergy equipment through a variety of measures. For example, in California, a state “buy-down” program (a subsidy for the purchase of small renewable-energy systems) for photovoltaic (PV) equipment has greatly increased the number and size of PV systems installed on houses and buildings. Net Metering Programs These allow electric-utility customers to install gridconnected renewable-energy systems on their property and get credit for the amount of excess electricity the systems produce. Forty-two States and the District of Columbia now have statewide net-metering programs. Federal Tax Credit for Solar Energy Systems A tax credit of up to 30 percent of the cost of solarelectric and hot-water systems is available through 2016. Renewable-Portfolio Standards (RPS) and State Mandates These require that a percentage of electric-power generation or sales come from renewable energy. Some states have specific mandates for power generation from renewable energy. By the end of 2008, there were 34 states plus the District of Columbia with an RPS or State mandate. Ethanol and Other Renewable Motor Fuels There are federal tax credits for ethanol producers and companies that blend ethanol into gasoline, and for small biodiesel producers and companies that sell 100 percent biodiesel or blend biodiesel with conventional diesel fuel. Many states also have various tax and other incentives and programs that promote the use of biofuel.
$16.8 billion: Recovery Act funds The funds designated for the EERE are divided across several if its programs. The final appropriations include: $5 billion
for the Weatherization Assistance Program
$3.1 billion for the State Energy Program $3.2 billion
for Energy-Efficiency and Conservation-Block Grants
$454 million
for retrofit ramp-ups in energy efficiency
$800 million
for the Biomass Program
$400 million
for the Geothermal Technologies Program
$350 million
for the demonstration, research, and development of geothermal energy
$50 million
for geothermal heat pumps
$346 million
for energy-efficient building technologies
$256 million
for the Industrial Technologies Program
$117 million
for the Solar Technologies Program
$110 million
for the Vehicle Technologies Program
$100 million
for facility and infrastructure improvements at the National Renewable Energy Laboratory
$93 million
to support wind-energy projects
$50 million
for information and communication technology
$41.9 million $32 million
to spur the growth of fuel-cell markets for modernizing the existing US hydropower infrastructure, increasing efficiency, and reducing environmental impact
$25 million for the Massachusetts Wind-Technology Testing Center $22 million
for Community Renewable-Energy Deployment
$2 billion for Advanced Battery-Manufacturing Grants $400 million
for Transportation Electrification
$300 million
for the Energy-Efficient Appliance Rebate Program and Energy Star
$300 million
for the Alternative-Fueled-Vehicles Pilot Grant Program
Financial assistance Through financial assistance, the EERE provides funding for renewable-energy and energy-efficiency research and development. Financial-assistance awards transfer money, property, or services to a recipient so that it can accomplish a public purpose authorized by federal statute. In 2007, the EERE awarded a total of $574 million in financial assistance. Specific types of financial assistance funded by the EERE include: • Grants: the EERE’s primary funding vehicle for businesses, industries, and universities; • Cooperative agreements: similar to grants, but require more direct control by the federal government through technical implementation; • Continuation awards: active awards with multi-year project periods, require annual approval for subsequent budgets necessary for the project’s completion; • Renewal awards: allow existing projects’ periods to be extended and more work to be completed.
Additional programs from the EERE • The EERE’s Building-Technologies Program works closely with the building industry to conduct research and development on technologies and practices for energy efficiency. The program promotes energy- and money-saving opportunities to builders and consumers and works with state and local regulatory groups to improve building codes and appliance standards. • The Federal Energy-Management Program (FEMP) within the EERE promotes energy efficiency and the use of renewable-energy resources at federal facilities all over the world, including military installations and its own DOE sites. The FEMP ensures that the federal government, the nation’s largest energy consumer, works toward meeting the goals set forth in legislative mandates and executives orders for saving energy.
energy international quarterly march/april 2010
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last word
A sound alliance The security of the US energy infrastructure depends upon reliable fuel supplies. Today, Canada is the largest and most secure source of energy for the United States, and it has held that position for more than 10 years. Free trade and open markets have strengthened North American energy security and encouraged a continued partnership between Canada and the United States. Below is a breakdown of Canada’s four major energy resources and the top states that consume that power.
1 2 3 4 5 6 7
Crude oil
Natural gas
Refined petroleum
Electricity
Illinois $12 billion
Washington $6.4 billion
New Hampshire $3.6 billion
New York $823 million
Minnesota $4.8 billion
New York $6.8 billion
Massachusetts $1.4 billion
New Hampshire $542 million
New Jersey $3.9 billion
Illinois $4.3 billion
New Jersey $843 million
California $276 million
Montana $3.5 billion
Tennessee $3.1 billion
Florida $637 million
Washington $179 million
Ohio $3.0 billion
Michigan $2.3 billion
Texas $610 million
Vermont $155 million
Washington $2.5 billion
Minnesota $1.6 billion
New York $598 million
Maine $117 million
Michigan, Pennsvlvania $1.4 billion
Iowa $1.3 billion
Connecticut $ 565 million
Michigan $89 million
8 9
Texas $851 million
Massachusetts $1.2 billion
California $436 million
Nevada $26 million
Indiana $519 million
Texas $447 million
Maine $410 million
North Dakota $25 million
10
Virginia $514 million
Montana $163 million
Georgia $248 million
Ohio $21 million
Source: Canadian Centre for Energy
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energy international quarterly march/april 2010
Solar mounting systems
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