Weekly Clean Energy Roundup:September 19, 2007

News and Events

• National Governors Association Launches Clean Energy Initiative
• DOE to Assist China in Industrial Energy Saving Assessments
• DOE to Provide up to $2 Million for Tribal Renewable Energy Projects
• Frankfurt Auto Show Features Hybrids, Fuel Cells, and Minis
• California Partnership to Examine Transmission for Renewable Energy
• California Credits Conservation for Weathering Heat Wave

Energy Connections

• Report Documents Massive Flaring of Natural Gas Worldwide

News and Events

National Governors Association Launches Clean Energy Initiative

The National Governors Association (NGA) committed last week to promoting clean energy policies across the country. The NGA’s new “Securing a Clean Energy Future” initiative will enlist the efforts of all governors to enact meaningful clean energy policies at the state level. Specifically, the initiative will promote state policies that encourage energy efficiency and conservation; promote non-petroleum fuels; reduce greenhouse gas emissions; and accelerate the research and development of advanced clean energy technologies.

The initiative’s efforts will be guided by a task force composed of eight governors that represent a cross-section of the country and that share a common desire to advance clean energy. The task force is chaired by the governors of Kansas and Minnesota and also includes the governors of Connecticut, Florida, Hawaii, Montana, Pennsylvania, and Washington. See the initiative’s Web site, and the NGA press release.

DOE is supporting the initiative with a grant of $550,000. In addition, DOE will provide $60,000 will be used to conduct forums and workshops on energy assurance and securing the nation’s energy infrastructure. DOE’s Office of Energy Efficiency and Renewable Energy and Office of Electricity Delivery and Reliability are contributing funds, which will be provided by the end of this month. See the DOE press release.

DOE to Assist China in Industrial Energy Saving Assessments

DOE and China’s National Development Reform Committee (NDRC) signed a Memorandum of Understanding (MOU) last week to increase cooperation and energy efficiency in China’s industrial sector. The MOU followed discussions at the third U.S.-China Energy Policy Dialogue, where the United States and China agreed to conduct audits to increase China’s national, regional, and local energy efficiency.

China’s industrial sector accounts for 70% of the country’s total energy demand. Under the MOU, a DOE team of industrial energy efficiency experts and an NDRC counterpart team will conduct on-site audits of plant production processes and energy systems at up to 12 facilities in China. DOE will provide tools to conduct the plant audits and train factory personnel on plant audit techniques. DOE will also conduct a comparison study of the Chinese enterprises and U.S. manufacturing plants to identify differences in best practices. The MOU could present opportunities for U.S. companies to export environmentally superior U.S.-made equipment and services to China. See the DOE press release.

The 344 industrial Energy Saving Assessments conducted in the United States since 2006 have identified a total savings of $585 million and 60 trillion Btu per year in potential energy cost savings. While those results are impressive, DOE’s Industrial Technologies Program is seeking suggestions for new ways to increase the energy efficiency of U.S. industries. DOE has extended the comment period on its Request for Information to October 1st. DOE is also accepting applications for a third round of Energy Saving Assessments. See the “Save Energy Now” Web site and the Request for Information.

DOE to Provide up to $2 Million for Tribal Renewable Energy Projects

DOE announced last week that it will make up to $2 million available to 15 Native American tribes and Alaskan villages. The selected tribes and villages will negotiate for the awards to support advancing renewable energy technologies on tribal lands and rural Alaskan villages. Six of those selected will study the feasibility of using renewable energy technologies on tribal lands, while nine will take first steps in implementing such technologies. DOE’s Tribal Energy Program will also provide technical assistance for the projects. The projects will take place in Alaska, California, Montana, New York, North Carolina, Oregon, and Wisconsin. Most of the selected tribes and villages will have some cost share in their projects.

In further demonstration of its commitment to supporting tribal efforts, DOE has created the Office of Indian Energy Policy and Programs, headed by the newly appointed Deputy Assistant Secretary for Intergovernmental and External Affairs, Steven J. More
llo. See the DOE press release and the Tribal Energy Program Web site.

Frankfurt Auto Show Features Hybrids, Fuel Cells, and Minis

European automakers demonstrated a new interest in hybrid and electric vehicles at last week’s Frankfurt Auto Show, while automakers of all nationalities showed a strong interest in small cars.

For example, Mercedes-Benz arrived at the show with seven hybrids, including a luxury sedan concept vehicle called the F 700, a 17-foot-long car that achieves a fuel economy of 44.4 miles per gallon (mpg). The research vehicle features a homogenous charge compression ignition engine, a technology that produces the high fuel economy of a diesel engine from a clean-burning gasoline engine. Mercedes has also mated its clean-diesel engine to an electric motor, creating the Bluetec hybrid. The company plans to introduce a gasoline-fueled hybrid SUV and sedan in 2009, followed by two Bluetec hybrids in 2010, one of which will achieve 51 miles per gallon of diesel fuel. The company also plans to start the limited production of its first fuel-cell vehicle in 2010.

In addition, the Mercedes Car Group exhibited its smart car in three new incarnations: an electric-only vehicle and both diesel and gasoline versions with “micro hybrid drive,” a belt-driven starter and alternator that allows the engine to shut off at stops. See the DaimlerChrysler press releases about the auto show and the F700.

Opel, a division of General Motors Corporation, exhibited the Flextreme, a plug-in hybrid that can travel 34 miles on its lithium-ion battery before a small diesel engine starts charging the battery. Opel also exhibited the Corsa Hybrid Concept, a coupe that combines a belt-driven starter and alternator with a lithium-ion battery. Volvo Cars, a division of Ford Motor Company, exhibited a plug-in hybrid with motors in each of the wheels. The Volvo ReCharge Concept can travel about 60 miles on battery power alone, using a lithium-polymer battery pack that can be recharged in a standard outlet. Ford also exhibited the Ford Verve Concept, a stylish small car billed as “the first sign of what the future may hold.” See GM press releases about the Corsa Hybrid and the Opel Flextreme and the press releases from Volvo and Ford.

Asian automakers were also present at the show, and even unveiled some world premieres. Hyundai unveiled its third-generation fuel-cell vehicle, the i-Blue crossover vehicle. And Toyota introduced the iQ concept, a vehicle that looks much like a smart car, but seats three adults “in comfort.” The company also exhibited two new models of its Yaris subcompact. See the press releases from Hyundai and Toyota.

California Partnership to Examine Transmission for Renewable Energy

A partnership of public and private entities has been established in California to examine the feasibility of building transmission lines to remote renewable energy resources. The Renewable Energy Transmission Initiative (RETI), announced by the California Energy Commission (CEC) on Monday, will identify major renewable energy zones throughout the state and will create a prioritized list of needed transmission lines. RETI includes representatives from the CEC, the California Public Utilities Commission, the California Independent System Operator, and representatives of publicly owned utilities. The group’s first public forum will be held tomorrow. See the CEC press release and the RETI Web site.

California Credits Conservation for Weathering Heat Wave

California suffered through a blistering heat wave in late August and early September, but at no time did the state require rotating blackouts, thanks to electrical conservation efforts. The California Independent System Operator (ISO), which operates the state’s electrical grid, estimated that Californians reduced their electrical demand by about 1,000 megawatts on August 30th, helping to avoid overtaxing the state’s transmission grid. Power outages only occurred at local levels and were caused by power distribution systems, not by the transmission system. California’s power crunch was caused by a heat wave that affected much of the Southwest, reducing power imports into the state. A dry winter has also reduced hydropower generation by about 1,000 megawatts this summer. See the California ISO press release (PDF 24 KB).

Coincidentally, the Federal Energy Regulatory Commission (FERC) issued a report in early September that notes the increasingly important role of such “demand response” efforts. According to the report, demand resp
onse lowered the consumption of electricity by 1.4% to 4.1% during periods of peak demand in 2006. FERC notes that eight regions of the United States set new records for electricity demand last year. See the FERC press release and report (PDF 948 KB).

Meanwhile, a new report from California’s Public Interest Energy Research (PIER) program finds that extreme heat events may be becoming more prevalent in California due to climate change. Along with demand response, the report calls for increased use of energy efficient and solar energy technologies, including passive cooling, ventilation with fans, and solar power generation. The report notes that the use of air conditioning could be most easily avoided in cooler coastal regions, while solar power systems will reduce loads on distribution systems on sunny days, when such load reductions are needed the most. See the report (PDF 792 KB).

Energy Connections

Report Documents Massive Flaring of Natural Gas Worldwide

A quantity of natural gas greater than one-quarter of the natural gas consumed in the United States is being sent up in flames each year, according to a recent report. The World Bank announced in late August that it had commissioned the National Oceanic and Atmospheric Administration (NOAA) to perform a global survey of natural gas flaring using satellite observations. The survey spanned a twelve-year period, from 1995 through 2006, and found that natural gas flaring ranged from 150 to 170 billion cubic meters each year. In 2006, roughly 170 billion cubic meters, or nearly five trillion cubic feet, was flared, an amount equal to 5.5% of global production or 27% of the annual U.S. consumption of natural gas.

Natural gas is often released during oil production and processing, and it is flared to dispose of it. Oil producers flare the gas rather than sell it because of the lack of natural gas infrastructure or markets in the areas where oil is produced. The gas is flared for safety reasons, plus the greenhouse gas impact of the natural gas is lowered by burning it. The World Bank’s Global Gas Flaring Reduction (GGFR) partnership aims to encourage a reduction in flaring by means such as re-injecting the natural gas into the oil reservoir, using it onsite for power generation, piping it to nearby markets, or liquefying it for shipment to distant markets. According to the World Bank, the natural gas flared each year generates roughly 400 million tons of carbon dioxide and would be worth about $40 billion in the United States. See the World Bank press release, the GGFR Web page, and the full NOAA report (PDF 9 MB).

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