Weekly Clean Energy Roundup:April 20, 2006

News and Events

New Jersey Increases its Renewable Energy Requirement

The New Jersey Board of Public Utilities (BPU) approved new regulations last week that will require the state’s electric utilities to draw on wind power, solar power, and sustainable biomass power for 20 percent of their electricity by 2020. Previously, the BPU required utilities to draw on renewable energy sources for 4 percent of their power supply by 2008. That older requirement had ratcheted up to 3.5 percent renewable energy this year, but starting in June, utilities will have to meet an accelerated schedule geared toward the 2020 goal. The new regulations also require solar photovoltaic power to provide 2 percent of the state’s electricity needs by 2020, requiring the installation of 1,500 megawatts of solar electric power. On a per capita basis, that’s the largest solar requirement in the United States, cementing New Jersey’s status as a solar power leader. New Jersey is already one of the fastest growing solar markets in the country, having grown from six solar power installations in 2001 to more than 1,200 installations today. See the BPU press release.

AES and DuPont Form New Global Alternative Energy Divisions

Two of the nation’s largest corporations, AES and Dupont, created new global divisions for alternative energy businesses in the past week. The AES Corporation, one of the world’s largest power companies, announced on Monday that it will create an “alternative energy business group” that will invest about $1 billion in alternative energy, including wind power and biomass, over the next three years. AES has invested $265 million in the wind generation business since 2004 and promises to triple its investments in wind power. The company also plans to create new alternative energy technologies through a partnership with DOE’s Los Alamos National Laboratory. AES owns and operates 14 utilities and 128 electric power generation facilities. See the AES press release.

DuPont announced last week that it is creating a new division to accelerate the company’s biofuels research and create a newly designed biorefinery. Dupont, which currently draws about $300 million in revenue from biofuels, says DuPont Biofuels expects to substantially increase its activity, resources, and revenues in these markets by 2010. The company also said that it is increasingly relying on plant-based substances rather than fossil fuels as sources for many of its chemicals. See the DuPont press release.

Alternative energy companies are also drawing increasing investments from venture capital firms. In February, Kleiner Perkins Caufield & Byers (KPCB) announced a new $100 million initiative in green technologies. Known for its success in picking winners in the computer and genetic engineering fields, KPCB has been quietly backing ventures in battery technology, solar cells, and solid oxide fuel cells for the past five years. Noting that disruptive energy innovations?those that can cause a dramatic shift in the use of one technology?are now possible because of recent advances in chemistry, genetics, and material science, KPCB mentioned biofuels, energy storage, and energy efficiency as “exciting, sustainable, and scalable” ventures. See the KPCB press release.

Lexus Debuts the First V8 Hybrid Sedan in New York

Are you looking for 12-cylinder performance, but hoping for the fuel economy of an efficient V8? Toyota Motor Corporation has your answer, as the company’s Lexus division has mated a hybrid electric system to a five-liter, eight-cylinder engine. The all-wheel-drive Lexus LS 600h L produces more than 430 horsepower from the motor and engine combination while delivering “best-in-V8-class fuel efficiency,” according to Toyota. The LS 600h L will also be the world’s first vehicle to be equipped with LED (light emitting diode) headlights, and is expected to qualify for a Super Ultra Low Emission Vehicle (SULEV) rating. The Lexus LS 600h L debuted last week at the New York International Auto Show and will go on sale in April 2007.

Lexus also introduced two new traditional V8 sedans, the LS 460 and LS 460 L, which will employ the world’s first eight-speed automatic transmission. The large number of gears saves fuel by better matching engine speed to power needs. See the Lexus press release.

Green Roofs are Gaining Acceptance in U.S. Cities, Says Survey

The area of U.S. roofs covered by vegetation has increased more than 80 percent in the past year, according to Green Roofs for Healthy Cities (GRHC), a trade association. So-called green roofs are rooftop gardens that reduce storm water runoff; insulate against heat and sound; increase energy savings; and improve air quality. They also reduce the urban heat island effect, which is caused by dark urban roofs, pavement, and other infrastructure absorbing the sun’s heat.

The GRHC recently completed its first survey of its members to gauge the growth of green roofs, finding that in 2005, green roofs covered at least 2.5 million square feet of roof space in North America, up from 1.3 million square feet in 2004. Cities that incorporate the largest area of green roofs in 2005 include Chicago, Illinois; Washington, D.C.; and Suitland, Maryland. Toronto may catch up to these other cities quickly, since the city council recently passed a policy that requires green roofs to be incorporated into city buildings and provides financial incentives for green roofs. GRHC is currently gearing up for its annual conference, to be held May 11th and 12th in Boston, Massachusetts. See the GRHC press release (PDF 196 KB), survey repor
t (PDF 220 KB), and conference Web page, and the City of Toronto’s Green Roof Strategy.

Green roofs are not the only way cities are working to combat the urban heat island effect, which causes urban and suburban temperatures to be 2 to 10 degrees Fahrenheit hotter than nearby rural areas. So-called “cool roofs,” which absorb less heat than standard roofs, can reduce the urban heat island effect and lower the cooling needs for buildings. While cool roofs are typically thought of as white, recent research has developed darker roofs that absorb less energy than traditional dark roofs. Last week, the California Energy Commission (CEC) awarded more than $1.2 million to DOE’s Lawrence Berkeley National Laboratory for a three-year project to develop, deploy, and validate cool roof technologies. See the CEC press release.

The U.S. Environmental Protection Agency (EPA) is also doing its part through its Urban Heat Island Initiative, which has instituted pilot projects and strategies for combating the urban heat island effect. According to the EPA, urban heat islands increase peak energy demand, air conditioning costs, air pollution levels, and heat-related illness and mortality. As part of the initiative, the EPA has launched a new online database that tracks state and local initiatives to reduce heat islands. See the database and the EPA Heat Island Web site.

Energy Connections

Analysis: Airline Industry is Hamstrung by Rising Fuel Prices

Jet fuel prices are on their way up, and that’s bad news for the airline industry, according to the Air Transport Association (ATA). The airline association notes that crude oil prices are expected to average nearly $70 per barrel this summer, and jet fuel recently hit a peak price of $2 per gallon, a significant increase over the average price of $1.45 for the first quarter of 2005. According to the ATA, airline fuel efficiency has tripled since 1971, and as of 2005 had reached 44.4 passenger miles per gallon. This increased efficiency is partly due to fuller flights, but airlines are also making efforts to cut unnecessary weight, lower cruising speeds, taxi with only one engine, and use air terminal power sources for electricity and air conditioning while on the ground. The ATA is currently pushing for changes to air traffic control rules, which it claims could save an additional hundreds of millions of gallons of jet fuel per year. See the ATA press release and a related question and answer Web page.

Of course, if you skip the flight and choose to drive instead, you’ll also be dealing with higher fuel costs. According to the Fuel Gauge Report from the American Automobile Association, the average retail price for mid-octane unleaded gasoline is quickly approaching $3 per gallon. Like jet fuel, gasoline prices are going up as crude oil futures are hitting $70 per barrel. See the Fuel Gage Report for the latest gasoline prices, and for the latest futures price for crude oil, see the New York Mercantile Exchange Web site.

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