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photo: Todd Woody

Can a state that gets 95 percent of its electricity from coal-fired power plants go green? The Natural Resources Defense Council thinks so. In a report released this week, the environmental group lays out how Indiana can become the California of the Midwest when it comes to renewable energy. As I write in The New York Times on Friday:

Coal-dependent Indiana could become one of the nation’s greenest states by tapping rural resources to generate renewable energy, according to a new report issued by the Natural Resources Defense Council.

The Hoosier State now obtains 95 percent of its electricity from plants running on coal — largely imported from Wyoming and elsewhere — but it could profit as an exporter of wind energy and machinery, the report said.

“Indiana has some of the best wind potential in the eastern U.S. and has a competitive advantage as a wind producer over most other states because of its location,” said the report’s author, Martin R. Cohen, said during a conference call on Wednesday.

Mr. Cohen noted that while the wind blows stronger in states like North Dakota and Nebraska, Indiana already has the transmission system in place to bring wind-generated electricity to eastern cities.

If Indiana increased wind energy production to 4,500 megawatts from its current 530 megawatts, it would create thousands of jobs and attract turbine manufacturers, according to the report. An owner of a 500-acre farm could earn $30,000 a year from leasing land for wind turbines, Mr. Cohen estimated.

Farmers also could profit, the report said, if Indiana starts harvesting corn stalks, wheat stalks and soybean residue and uses the biomass either for power production or to make ethanol.

You can read the rest of the story here.

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Stirling Energy Systems Solar One project

image: Tessera Solar

In a feature published in today’s New York Times, I look at a water war breaking out in the desert Southwest over plans to build dozens of large-scale solar power projects on hundreds of thousands of acres of land:

AMARGOSA VALLEY, Nev. — In a rural corner of Nevada reeling from the recession, a bit of salvation seemed to arrive last year. A German developer, Solar Millennium, announced plans to build two large solar farms here that would harness the sun to generate electricity, creating hundreds of jobs.

But then things got messy. The company revealed that its preferred method of cooling the power plants would consume 1.3 billion gallons of water a year, about 20 percent of this desert valley’s available water.

Now Solar Millennium finds itself in the midst of a new-age version of a Western water war. The public is divided, pitting some people who hope to make money selling water rights to the company against others concerned about the project’s impact on the community and the environment.

“I’m worried about my well and the wells of my neighbors,” George Tucker, a retired chemical engineer, said on a blazing afternoon.

Here is an inconvenient truth about renewable energy: It can sometimes demand a huge amount of water. Many of the proposed solutions to the nation’s energy problems, from certain types of solar farms to biofuel refineries to cleaner coal plants, could consume billions of gallons of water every year.

“When push comes to shove, water could become the real throttle on renewable energy,” said Michael E. Webber, an assistant professor at the University of Texas in Austin who studies the relationship between energy and water.

Conflicts over water could shape the future of many energy technologies. The most water-efficient renewable technologies are not necessarily the most economical, but water shortages could give them a competitive edge.

In California, solar developers have already been forced to switch to less water-intensive technologies when local officials have refused to turn on the tap. Other big solar projects are mired in disputes with state regulators over water consumption.

To date, the flashpoint for such conflicts has been the Southwest, where dozens of multibillion-dollar solar power plants are planned for thousands of acres of desert. While most forms of energy production consume water, its availability is especially limited in the sunny areas that are otherwise well suited for solar farms.

You can read the rest of the story here.

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photo: Think

In The New York Times today, I write about how Stockholm’s congestion pricing system, which charges drivers to enter the city center, has helped triple the number of alternative fuel cars in the Swedish capital:

When Sweden began charging motorists to drive into downtown Stockholm during rush hour, the goal was to reduce traffic congestion, cut greenhouse gas emissions and boost ridership on public transportation.

That has happened, and now a new study has found another benefit from so-called congestion pricing: In the 24-square kilometer congestion zone in Sweden’s capital, the number of registered alternative fuel vehicles, which are exempt from congestion tolls, jumped from five percent of the total vehicle fleet in 2006 to 14 percent in 2008.

“The changes in the make-up of the vehicle fleet are not exclusively due to the congestion tax, but surveys show that exemption from the congestion tax is the single most significant incentive for those buying alternative fuel vehicles in Stockholm,” concluded the report, which was released this month by the Stockholm Traffic Administration.

You can read the rest of the story here.

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photo: eSolar

In Sunday’s Los Angeles Times, I write about how the rise of green technology is changing the way Silicon Valley venture capitalists do business:

Silicon Valley venture capitalists have always been about inventing the future — taking a wild idea, nurturing it with cash and creativity and giving birth to new products, companies and industries we once couldn’t imagine and now can’t conceive of living without: the Web, Google, the iPhone, Twitter.

But as green technology becomes the latest tech wave to break from the nation’s entrepreneurial epicenter, it’s now all about companies reinventing the past. Solar power companies, electric car start-ups and algae biofuel ventures aim to remake century-old trillion-dollar industries on a global scale.

Venture capitalists poured $4 billion into green-tech start-ups in 2008 — nearly 40% of all tech investments in the U.S., according to a survey by PricewaterhouseCoopers. Green-tech investment plunged in the first half of 2009 to $513 million as the recession dragged on, but there are signs of a rebound: Silicon Valley’s Khosla Ventures announced this month that it had raised $1.1 billion — the biggest first-time fund in a decade — that would be largely devoted to investing in green-tech start-ups, many in Southern California.

But green-tech companies face unique challenges, including global markets, tough technological hurdles and a future shaped by government incentives and regulatory policy. Those challenges are changing the game on Sand Hill Road.

“If you’re starting a Web 2.0 company, your basic needs are personnel and servers — there is no physical product, no manufacturing capacity, no inventory, no steel in the ground,” VantagePoint’s Salzman said, referring to software-based companies that provide services over the Internet.

Green-tech start-ups, he said, often need big money and investors steeped in big science and big government.

You can read the rest of the story here.

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photo: Todd Woody

With the U.S. House of Representatives set to vote on the Waxman-Markey climate change bill this week, a report issued Thursday predicts the American Clean Energy and Security Act will create a huge market in carbon offset projects like reforestation.

In its current form, the legislation allows companies to comply with a cap on greenhouse gas emissions in part by purchasing carbon offset credits generated by domestic and international projects that reduce CO2 — such as capturing methane gas leaking from landfills. According to an analysis by research firm New Energy Finance, demand — for up to 5.7 billion tons of offsets — will far outstrip supply, with domestic projects contributing fewer than 30% of the offsets.

“Waxman-Markey will induce cumulative production…of offsets until 2020 to satisfy demand for reductions,” wrote the report’s authors. “We estimate that Waxman-Markey’s targets and lenient offset limits will create high levels of offset project development – both domestic and international.”

In other words, U.S. climate change legislation could goose a global market for offsets. In the U.S. alone, New Energy Finance estimates that the offset market will grow 27-fold by 2015, becoming a $46.7 billion business by 2020.

Some environmentalists have slammed Waxman-Markey for its generous use of offsets, arguing that U.S. companies could actually increase their carbon pollution while meeting the cap by buying other people’s emissions reductions. Relying on overseas projects to supply the majority of offsets also raises questions about how those efforts will be verified and overseen, especially if a carbon boom develops.

On the plus side, New Energy Finance expects tree projects to “play a pivotal role” in the offset market, which could slow the rapid rate of deforestation afflicting the planet.

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photo: Wild Rose Images

California Senator Dianne Feinstein’s move to put a large swath of the Mojave Desert off-limits to renewable energy development is splitting the environmental movement and could derail some two dozen solar and wind power projects the state needs to comply with its ambitious climate change laws.

On the firing line are 17 massive solar power plants and six wind farms planned for federal land — land that would be designated a national monument under legislation Feinstein intends to introduce. The solar projects in question would be built by a range of companies, from startups BrightSource Energy and Stirling Energy Systems to corporate heavyweights Goldman Sachs (GS) and FPL (FPL), according to federal documents. (For the complete list, see below.)

The companies are among scores that have filed lease claims on a million acres of acres of desert dirt controlled by the U.S. Bureau of Land Management. California utilities PG&E (PCG) and Southern California Edison (EIX) have signed long-term power purchase agreements for some of the projects now in jeopardy and are counting on the electricity they would produce to meet state-mandated renewable energy targets. PG&E itself has filed a solar power plant land claim in the proposed national monument.

The area of the desert in dispute is some 600,000 acres formerly owned by Catellus, the real estate arm of the Union Pacific Railroad, and donated to the federal government a decade ago by the Wildlands Conservancy, a Southern California environmental group. About 210,000 of those acres are managed by the U.S. Bureau of Land Management, which opened part of the land to renewable energy projects.

“Many of the sites now being considered for leases are completely inappropriate and will lead to the wholesale destruction of some of the most pristine areas in the desert,” Feinstein wrote in a letter to Interior Secretary Ken Salazar released last week, notifying him that she will introduce legislation to designate the former Catellus lands a national monument. “Beyond protecting national parks and wilderness from development, the conservation of these lands has helped to ensure the sustainability of the entire desert ecosystem by preserving the vital wildlife corridors.”

The Catellus land controlled by the BLM forms something of a golden triangle between the Joshua Tree National Park and the Mojave National Preserve in Southern California and are particularly coveted for renewable energy development because of its proximity to transmission lines.

Alan Stein, a deputy district manager for the BLM in California, told Green Wombat that the solar and wind lease claims are in areas that are not designated as wilderness or critical habitat for protected species like the desert tortoise. “This is public domain land, ” he says.

Tortoises, however, are found across the Mojave, and battles over Big Solar’s impact on endangered wildlife are quietly brewing in several solar power plant licensing cases now being reviewed by the California Energy Commission.  Environmentalists find themselves walking a thin green line, trying to balance their interest in promoting carbon-free energy with protecting fragile desert landscapes and a host of threatened animals and plants.

Take BrightSource Energy’s Ivanpah 400-megawatt solar power plant complex on the California-Nevada border. The three solar power plants to be built by the Oakland-based company will supply electricity to PG&E and Southern California Edison. But the project will also destroy some 4,000 acres of desert tortoise habitat and at least 25 tortoises will have to be relocated – a somewhat risky proposition as previous efforts in other cases have resulted in the deaths of the animals.

On Wednesday, the California Energy Commission granted two national environmental groups – the Defenders of Wildlife and the Sierra Club – the right to intervene in the Ivanpah case. “Defenders strongly supports … the development of renewable energy in California,” Kim Delfino, California program director for Defenders of Wildlife, wrote to the energy commission in a Jan. 23 letter.  “Defenders has several serious concerns about the potential impacts of this project on a number of rare, declining and listed species and on their associated desert habitat and waters.”

Natural Resources Defense Council attorney Johanna Wald wrote a letter with the Wilderness Society expressing concern over the impact of Ivanpah project on the desert tortoise but also made a strong statement of support for renewable energy development. “Our public lands harbor substantial wind, solar, and geothermal resources,” wrote Wald, who serves on a state task force to identify appropriate areas for renewable energy development. “Developing some of these resources will be important to creating a sustainable energy economy and combating climate change.”

The big national enviro groups are working with the government and power plant developers to create zones in the Mojave where renewable energy projects would be permitted while setting aside other areas that are prime habitat and wildlife corridors. A similar effort is underway on the federal level to analyze the desert-wide impact of renewable energy development.

Local environmental organizations, however, have split with the Big Green groups over developing the desert and other rural areas. In San Luis Obispo County,  Ausra, SunPower (SPWRA) and First Solar’s (FSLR) plans to build three huge solar farms within miles of each other has prompted some local residents worried about the impact on wildlife to organize in opposition to the projects.

And some small Mojave Desert green groups pledge to go to court to stop big solar projects. “We don’t want to see the Endangered Species Act gutted for the sake of mega solar projects,” veteran grass roots activist Phil Klasky told Green Wombat last year for a story on the solar land rush in the Mojave. “I can say the smaller environmental organizations I’m involved with are planning to challenge these projects.”

It would be unwise to underestimate Klasky. In the 1990s, he helped lead a long-running  and successful campaign to scuttle the construction of a low-level radioactive waste dump in tortoise territory in the Mojave’s Ward Valley – now a prime solar spot.

Still, while California’s senior senator’s move in the Mojave may exacerbate rifts in the environmental movement over renewable energy, it also could galvanize efforts to resolve critter conflicts in a comprehensive way. Otherwise, environmentalists of varying hues may find themselves fighting each other rather than global warming.

Update: I just had a conversation with BrightSource spokesman Keely Wachs, who takes issue with my characterization that the Ivanpah project will “destroy” desert tortoise habitat. He points out that the company is taking care to minimize the impact of the power plant on the surrounding desert and that wildlife may still occupy the site. It would be more accurate to say that the project will remove desert tortoise habitat from active use during Ivanpah’s construction and operation.

(Below is a list of solar and wind projects that fall within the proposed Mojave national monument. Note: Solar Investments is a subsidiary of Goldman Sachs and Boulevard Associates is a subsidiary of FPL.)

source:  BLM

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photo: Solyndra

It’s been a good news, bad news Friday for the solar industry. Silicon Valley startup Solyndra received a half billion-dollar loan guarantee from the U.S. Department of Energy to build a solar module factory while further up Interstate 880 OptiSolar moved to shut down its manufacturing operations.

OptiSolar too had asked for a federal loan guarantee to complete work on its Sacramento thin-film solar cell plant but a decision on the $300 million application couldn’t come soon enough to save the startup. “We continued to be unable to find a buyer for the technology and manufacuring business, and the board of directors decided that we needed to limit ongoing operational expense,” wrote OptiSolar spokesman Alan Bernheimer in an e-mail.

First reported by the San Francisco Chronicle’s David Baker, OptiSolar will shut down factories in Sacramento and Hayward, Calif., and lay off 200 workers.  Earlier this month, OptiSolar sold its pipeline of solar power plants – including a 550-megawatt solar farm that will supply electricity to PG&E (PCG) – to rival First Solar  in a $400 million stock deal. At the time, OptiSolar said it intended to focus on manufacturing solar modules.

The news was definitely brighter Friday for Solyndra, which emerged from stealth mode last September with $600 million in funding and $1.2 billion in orders for its solar panels composed of cylindrical tubes imprinted with solar cells. Conventional rooftop solar panels must be tilted to absorb direct sunlight as they aren’t efficient at producing electricity from diffuse light. But the round Solyndra module collects sunlight from all angles, including rays reflected from rooftops. That allows the modules, 40 to a panel,  to sit flat and packed tightly together on commercial rooftops, maximizing the amount of space for power production.

The $535 million federal loan guarantee will allow the Fremont, Calif.-based company to build a second factory, which is expected to create 3,000 construction jobs and more than 1,000 other jobs once the plant is in operation. The factory will be able to produce 500 megawatts’ worth of solar panels a year.

“The DOE Loan Guarantee Program funding will enable Solyndra to achieve the economies of scale needed to deliver solar electricity at prices that are competitive with utility rates,” Solyndra CEO Chris Gronet said in a statement. “This expansion is really about creating new jobs while meaningfully impacting global warming.”

Friday’s grant makes good on Secretary of Energy Steven Chu’s pledge to speed up processing of renewable energy loan guarantee applications. The department had come under fire during the previous administration for taking years to dole out grants and loan guarantees for electric car and green energy projects.

Meanwhile, First Solar (FSLR) announced on Friday that it had manufactured 1 gigawatt of thin-film solar cells since beginning commercial production in 2002. It took the Tempe, Ariz., company six years to hit 500 megawatts and only eight months to produce the second 500 megawatts. First Solar’s annual production capacity will reach 1 gigawatt by year’s end, according to the company.

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tendril-iphone-appHere’s an iPhone app that really could help save the planet while saving stressed consumers’ money: Boulder, Colo.-based startup Tendril this week unveiled a mobile software program that lets people monitor and control their home’s energy use while on the go.

Say you’re sitting in the unemployment office listening to some bureaucrat drone on, so you pull out your iPhone to update your Facebook status and then check on whether that next unemployment check will cover the utility bill. When Tendril tells you that your electricity consumption is spiking and so will your estimated monthly bill, you remember you left the air conditioner set on Arctic. Flick your finger and shut that energy hog down.

That scenario won’t become common for awhile it as relies on a widespread rollout of smart utility meters that will bring the interactive smart grid and real-time electricity pricing into the home. That is happening, albeit very slowly (though the pace is expected to accelerate with billions in the stimulus package being poured into smart grid-related projects. The ability to remote-control your appliance, however, is some years away).

For instance, Tendril, is rolling out a home energy management system for Texas utility Reliant Energy (RRI) that allows customers to monitor and control their electricity use through a video display that sits in the living room. When Green Wombat visited Reliant’s smart house project in Houston last September, the utility’s tech guys showed me their own home-brewed iPhone app.

As anyone with an iPhone knows, Apple’s (AAPL) app store makes it ridiculously easy to turn the gadget into Dr. Who’s sonic screwdriver – a gizmo that does everything but put out the trash and feed your pet bunny. But earth2tech’s Katie Fehrenbacher questions how widespread Tendril’s app would be used given the difficulty in putting any third-party software program on a BlackBerry or other smartphone. But that’s changing by dint of Apple’s growing share of the smartphone market and the advent of the app-friendly Google (GOOG) phone.

Green Wombat is most intrigued by the potential of such apps as the Tendril Mobile Vantage to tap into people’s inherent competitiveness, keeping-up-with-Jones mentality and, in the Facebook era, compulsion to share, share, share. The data generated by smart meters and home energy management systems like Tendril’s will let consumers compare their energy use – and thus contribution to global warming – with their neighbors and friends.

In fact, Tendril is planning to add a carbon footprint feature to its mobile app. Funnel that data into a Facebook newsfeed and let the peer-to-peer pressure go to work to see who can claim Twittering rights to a low-impact lifestyle.

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clintonbill1Another reason Green Wombat will be spending Earth Day in Southern California this year: Former President Bill Clinton will deliver the keynote speech at Fortune Magazine’s Brainstorm Green conference on April 22.

Clinton will be joining a gathering of business and environmental leaders, including Ford (F) executive chairman Bill Ford, PG&E (PCG) chief executive Peter Darbee, SunPower (SPWRA) CEO Tom Werner and executives from Fortune 500 companies like IBM (IBM),  Wal-Mart (WMT) and General Electric (GE). On the green side of the aisle, execs from the Natural Resources Defense Council, Environmental Defense Fund and Greenpeace will be attending the confab in Laguna Niguel.  Former California State Treasurer Phil Angelides, now chairman of the Apollo Alliance, and green jobs guru Van Jones will also be present.

We now end the shameless self-promotion and return to our regular Green Wombat programming.

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photo: eSolar

California startup eSolar said on Tuesday that it has licensed its solar power technology for the construction of up to 1 gigawatt of solar farms in India over the next decade.

The deal with Indian conglomerate ACME Group marks India’s first move into large-scale solar power and is the biggest announced foray of a United States solar power plant company overseas. The agreement calls for ACME, based in the northern Indian state of Haryana, to invest $30 million in eSolar, which will also earn fees for each of its 46-megawatt modular solar thermal power plants that are built.

A gigawatt, or 1,000 megawatts, of solar energy produces enough electricity to keep the lights on in about 750,000 energy-hogging U.S. homes. Presumably, many more homes and businesses can be powered by a gigawatt in India, where electricity shortages are common and the country relies on greenhouse-gas emitting diesel generators.

“We’re exclusively selling to ACME in India and they’re exclusively using us,” eSolar CEO Bill Gross told Green Wombat. “We’d like to do something like this in Spain, in Australia and the Middle East.”

It’s the second big deal for Pasadena-based eSolar in a week. Last Monday, the company inked an agreement to license its technology to U.S. coal-fired utility NRG (NRG) for the development of up to 500 megawatts of solar power plants in California and the Southwest for Southern California Edison (EIX) and other utilities. Meanwhile, the financial crisis is forcing the consolidation of the solar industry, with Monday’s dual deals — First Solar (FSLR) acquired the solar power plant assets of Silicon Valley OptiSolar while Spanish solar developer Fotowatio bought financier MMA Renewable Ventures’ solar portfolio.

eSolar claims it can generate electricity at lower prices than natural gas-fired power plants by mass-producing mirrors called heliostats that concentrate sunlight on a water-filled receiver atop a tower to create steam that drives a turbine. The heliostats are much smaller than those made by competitors, use far less steel and can be quickly and cheaply installed in the field because they’re controlled by sophisticated software, according to Gross.

That allows eSolar to pack more mirrors into the solar field to create relatively compact power plants that can be located near urban centers rather than in the desert. ACME, which makes everything from telecommunications equipment and refrigeration systems to fuel cells, will begin construction of the first solar farm later this year.

ACME will hire contractors to build the solar power plants while eSolar will provide the heliostat fields, power towers and software systems. ACME so far has signed power purchase agreements with Indian utilities for 250 megawatts, according to eSolar.

“The eSolar system addresses obstacles that have previously plagued solar installations and presents a viable, cost-effective alternative that can scale quickly to meet India’s growing energy needs,” ACME CEO Manoj Upadhyay said in a statement.

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