Weekly Clean Energy Roundup:November 14, 2007

News and Events

• DOE Invests $21 Million in Next-Generation Solar Cell Research
• Report Finds Major Economic Benefits to Efficiency, Renewables
• AWEA Boosts Wind Power Projections to 4,000 MW for 2007
• NREL Report Sees Near-Term Supply Shortage for Renewable Power
• Cadillac and Porsche Plan Luxury Hybrid SUVs
• USDA Moves Ahead on Federal Procurement of Biobased Products

Energy Connections

• Report: The World Must Help China and India Handle Energy Growth

News and Events

DOE Invests $21 Million in Next-Generation Solar Cell Research

DOE announced on November 8th that it will invest $21.7 million in researching the next generation of photovoltaic (PV) solar cell technology. DOE selected a total of 25 research projects, led by 15 universities and 6 companies, to receive an average of $900,000 over the next three years. The research projects will employ nanotechnologies, dyes, organic solar cells, multiple-layer solar cells, and unique manufacturing techniques in their attempts to create the next generation of solar cells. By 2015, the effort is expected to yield prototype cells and processes, which may be available for commercialization shortly thereafter. See the DOE press release and the “Future Generation Photovoltaic Devices and Processes Selections” presentation on the Solar America Initiative Web site (PDF 2.2 MB).

Among the DOE awardees is Wakonda Technologies Inc., a company that plans to produce large-area, high-efficiency solar devices by applying multiple thin films of semiconductor material onto a flexible metal-foil substrate. Wakonda Technologies claims to have developed a proprietary surface treatment that allows the metal foil to simulate an expensive crystalline semiconductor material, such as germanium. The company plans to exploit this technology with a process that employs low-cost thin-film manufacturing techniques to create high-efficiency solar cells.

November 8th was a good day for Wakonda Technologies; on the same day that DOE announced its advanced PV awards, the company was named the Clean Energy Entrepreneur of the Year at the 20th Industry Growth Forum, sponsored by DOE’s National Renewable Energy Laboratory (NREL). NREL’s Industry Growth Forum is the leading clean energy venture event in the United States, and it attracted more than 400 participants this year. The forum is unique in the real-time feedback and strategic advice its panel offers to its entrepreneurial participants. To claim the Entrepreneur of the Year award, Wakonda Technologies beat out 31 competitors, earning a prize of $10,000. See the NREL press release and the Wakonda Technologies Web site.

Report Finds Major Economic Benefits to Efficiency, Renewables

The U.S. renewable energy and energy efficiency industries created jobs for 8.5 million people in 2006, while generating more than a trillion dollars in sales, $100 billion in profits, and $150 billion in increased federal, state, and local government tax revenues, according to a new report from the American Solar Energy Society (ASES). The report notes that it’s difficult to define the energy efficiency industry, but even focusing on the renewable energy industry, it found 196,000 people directly employed by the industry, a total of 452,000 jobs created, and revenues of $39.2 billion in 2006.

Looking forward to 2030, the report examines three scenarios: a “business as usual” scenario, with no major policy changes; a moderate scenario that includes incremental policy advances; and an advanced scenario of aggressive growth in renewable energy and energy efficiency. In the “business as usual” scenario, the jobs created by renewable energy increase 190% by 2030, while jobs created by energy efficiency increase by 85%. In the moderate scenario, the jobs created by renewable energy increase nearly 7-fold, while jobs created by energy efficiency more than double. And in the advanced scenario, the jobs created by renewable energy increase 17-fold, while jobs created by energy efficiency quadruple. In the advanced scenario, renewable energy revenues increase to nearly $600 billion, while energy efficiency revenues increase to almost $4 trillion. The report also includes a case study on renewable energy and energy efficiency industries in Ohio. See the ASES press release and the full report (PDF 1.2 MB).

AWEA Boosts Wind Power Projections to 4,000 MW for 2007

The American Wind Energy Association (AWEA) announced last week that it now expects 4,000 megawatts (MW) of wind power capacity to be installed in 2007. That represents an increase of one-third over AWEA’s previous projections for the year, which were last updated in August. AWEA’s third quarter market report concludes that the wind industry added more than 2,300 MW of wind power in the first three quarters of 2007, while more than 5,000 MW of wind power are currently under construction. According to AWEA’s tally, 13,885 MW of wind power capacity are now installed in the United States.

In the third quarter alone, 1,251 MW of wind power were installed throughout the country, including 600 MW in Texas, further cementing that state’s leadership in wind power capacity. Another 264 MW of wind power were built in Colorado, elevating that state to sixth place in terms of installed wind power capacity. In Washington State, 140 MW of wind power were installed, pushing that state into fourth place, while the first utility-scale wind power facility was completed in Missouri. Built near King City, Missouri, by the Wind Capital Group and John Deere Wind Energy, the 56.7-MW Blue Grass Ridge Wind Farm features 2.1-MW wind turbines from Suzlon Wind Energy Corporation and was dedicated in late September. The Wind Capital Group is also building two other wind facilities in Missouri that will have a combined capacity of 100.4 MW. See the AWEA press release, AWEA’s third quarter market report (PDF 1.5 MB), the Wind Capital Group Web site, and the press release on the Missouri wind farm dedication from the Associated Electric Cooperative, Inc.

The boom in U.S. wind power capacity is being met with increased investment in wind power manufacturing facilities in the heart of the country. In late September, Siemens Power Generation celebrated the grand opening of its new wind turbine blade factory in Fort Madison, Iowa, on the banks of the Mississippi River. The 311,000-square-foot factory is expected to produce 600 wind turbine blades each year and should employ 260 people by year’s end. The facility manufactures 148-foot-long, 12-ton blades for the company’s 2.3-MW wind turbines installed in the United States. In October, Iowa Governor Chet Culver announced that Hendricks Industries plans to build a manufacturing plant for wind turbine towers in Keokuk, which is also on the Mississippi River. The 347,000-square-foot facility will employ 350 people, and the company will also employ 22 people at a project to expand the city’s port. Also in October, LM Glasfiber broke ground on a new wind turbine blade manufacturing plant in Little Rock, Arkansas, which is on the Arkansas River. The new facility is expected to begin operations in early 2008 and will eventually employ more than 1,000 people. See the press releases from Siemens, Governor Culver, and LM Glasfiber.

NREL Report Sees Near-Term Supply Shortage for Renewable Power

A combination of state renewable energy requirements and voluntary “green power” purchases of renewable energy are causing the demand for renewable energy to exceed the supply, according to a recent report from DOE’s National Renewable Energy Laboratory. Published in late October, the report notes that green power purchases reached 12 million megawatt-hours in 2006, a three-fold increase from 2003. Meanwhile, 25 states and the District of Columbia have enacted laws that require renewable energy to provide from 2% to 30% of each state’s electricity supply within the next 5 to 15 years.

Noting that most of the new renewable energy capacity is currently in the form of wind power, the report projects near-term renewable energy capacity increases using two scenarios: a steady increase of 4,000 megawatts (MW) per year through 2010, and an increase that accelerates to 7,000 MW per year by 2010. Assuming a continued growth in green power of 35% per year, and taking into account the amount of renewable power required by the states, the report finds that demand for renewable power is already slightly exceeding the supply. In the “steady increase” scenario, supply lags further and further behind demand through 2010, while the “accelerating supply” scenario comes much closer to meeting demand, but still falls short.

The report concludes that there is a national need to accelerate renewable energy deployment from all energy sources to meet the burgeoning demand for renewable power. It also notes that future policy changes could increase the demand or slow the increase in the supply, while a supply shortage could drive up costs in the green power market and discourage the voluntary purchasing of renewable power. See the NREL report on the Green Power Network Web site (PDF 521 KB).

Cadillac and Porsche Plan Luxury Hybrid SUVs

Both Cadillac and Porsche are introducing the U.S. public to their future hybrid sport utility vehicles (SUVs) this month. Last week, Cadillac unveiled the 2009 Cadillac Escalade Hybrid at the South Florida International Auto Show in Miami. Employing General Motors’ 2-Mode hybrid system, which incorporates two small electric motors into the transmission, the Escalade Hybrid is expected to achieve a 45% increase in fuel economy in city driving, compared to the standard Escalade. The 2-Mode hybrid system will debut this ye
ar in the 2008 Chevrolet Tahoe Hybrid and the 2008 GMC Yukon Hybrid, and the first 2-Mode hybrid transmissions started rolling off the assembly line at General Motor’s Baltimore Transmission Plant in late October. See the GM press release.

The Escalade’s electrically variable transmission is mounted to a V-8 engine that operates on the modified Atkinson cycle, delaying the closure of the intake valve to allow the engine to suck air more easily into its cylinders. Under low-load conditions, the engine also deactivates four of its eight cylinders, a feature that Cadillac calls “Active Fuel Management.” To make the most of its hybrid features, the Escalade Hybrid also features an electrically driven compressor for its air conditioning and electrically driven power steering. The vehicle will go on sale next summer. See the Escalade Hybrid Web site and the Cadillac press release (PDF 819 KB).

Meanwhile, Porsche AG is preparing to introduce its Cayenne Hybrid to North American audiences at the Los Angeles Auto Show, which starts on Friday. The Cayenne Hybrid is expected to achieve 26 miles per gallon under tougher European standards and will go on sale “before the end of this decade,” according to Porsche. The company is also reminding the auto show attendees of its history by displaying the electric-drive Lohner-Porsche, Ferdinand Porsche’s first major project from back in 1900. It features in-wheel electric motors, and in 1901, Porsche added a combustion engine that powered an electric generator, thereby creating the world’s first hybrid electric vehicle. See the Porsche press release.

USDA Moves Ahead on Federal Procurement of Biobased Products

The U.S. Department of Agriculture (USDA) is updating the federal procurement of biobased products under its BioPreferred Program. The update will clarify the preference process in the Federal Acquisition Regulations (FAR), which will in turn make it easier for federal procurement officials and manufacturers to participate in the program. The regulations, which outline the uniform policies for federal procurement, are the single most important guidelines to procurement officials and contractors. With the update to the FAR, agencies across the federal government and their contractors will be required to give procurement preference to biobased products that meet certain qualifications. According to USDA research, more than 10,000 biobased products are commercially available for purchase. USDA rulemaking will seek to speed the qualification of as many of these products as possible for federal procurement preference. See the USDA press release.

The USDA’s BioPreferred Program requires federal buyers and their contractors to give preference to qualified biobased products, which are made from agricultural, forestry, or marine materials. Biobased products often displace petroleum-based products, so they provide a way to lessen U.S. dependence on petroleum. The program was enacted as part of the 2002 Farm Bill. See the BioPreferred Program Web site.

Energy Connections

Report: The World Must Help China and India Handle Energy Growth

Energy developments in China and India are transforming the global energy system as a result of their sheer size, according to a new report from the International Energy Agency (IEA). The IEA’s “World Energy Outlook 2007” warns that global energy consumption could increase “well over 50%” by 2030. Energy use in China and India could double by 2030, providing nearly half the world’s growth in energy consumption. If that happened, global carbon dioxide emissions from energy use would increase by 57%. The world’s oil production would also be increasingly concentrated in the Middle East, and the IEA notes that “it is very uncertain” whether supplies would keep up with demand. “A supply-side crunch in the period to 2015, involving an abrupt escalation in oil prices, cannot be ruled out,” notes the IEA. And of course, things will be even worse if the world experiences faster growth than currently anticipated.

Fortunately, the IEA also sees the possibility for a brighter energy future. Measures to improve energy efficiency could cause global carbon dioxide emissions to level off in the 2020s. The savings would be greatest in China and India, suggesting that international efforts to help those countries achieve greater energy efficiencies could be fruitful for both world energy security and for addressing global climate change. But even in this energy efficient scenario, carbon dioxide emissions would still end up about 25% above current levels by 2030.

If the world decides to stabilize atmospheric concentrations of carbon dioxide at around 450 parts per million (a goal often cited by climate scientists), global emissions would have to peak in 2012 and fall sharply below 2005 levels by 2030, according to the IEA. That could be achieved through a combination of aggressive energy efficiency measures, greater use of renewable and nuclear energy sources, and widespread deployment of carbon capture and storage technologies, says the report. But to make this a reality would require “exceptionally quick and vigorous policy action by all countries, and unprecedented technological advances,” according to the IEA. The report stresses that the next 10 years will be crucial for shifting the world’s energy supply toward a cleaner, more efficient, and more secure path. See the IEA press release.

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