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Making Energy Hogs Pay

Energy_hog_2
photo: Reid Harris Cooper
Given that commercial buildings are responsible for about 20 percent of the United States’s greenhouse gas emissions, encouraging landlords and tenants to cut electricity is one key way to fight global warming. Problem is, there has been little incentive in places like California to do so. Why? Because in a skyscraper like the one Green Wombat inhabits in downtown San Francisco, state regulations have allowed only one meter and the landlord typically divides up the utility bill according to the amount of square feet each tenant leases. So, even if Tenant A installs energy-efficient lighting and takes other measures to cut electricity consumption but happens to have the biggest suite in the building, it’ll get stuck with the biggest utility bill. And though Tenant B might lease offices half the size of Tenant A’s it’ll pay far less even if it’s an energy hog and uses more power than its green neighbor.

On Thursday California regulators moved to remedy that conundrum by allowing utility PG&E (PCG) and building owners to install meters for each tenant. The idea is that "submetering" will provide an incentive for tenants to conserve energy by making them pay only for the electricity they actualloy use.

"The inability for commercial building tenants to reap in the benefits of investments made in energy efficiency and demand response has been a hurdle," said California Public Utilities Commission president Michael Peevey in a statement. "All it takes is price signals and a customer willing to make an investment in order to take advantage of the potential cost savings.”  Added PUC commissioner Dian Grueneich: "The prohibition on submetering in commercial buildings has been a barrier to energy efficiency for decades. This decision sets an example that the other utilities and the rest of the country can follow."

Presumably, the other two big California utilities, Southern California Edison (EIX) and San Diego Gas & Electric (SRE), will be able to implement submetering as well. PG&E and the Building Owners and Managers Association – which manages 600 million square feet of office space – have agreed to sub-metering. The hitch is that tenants – who directly control 1,600 megawatts of energy demand, according to the PUC – will have to agree to submetering in their lease. But if tenants can reduce electricity demand by 20 percent, the PUC says California can avoid building a 320-megawatt gas-fired power plant.

Bright_source_rendering_4
Solar startup BrightSource Energy has filed an application with the California Energy Commission to build a 400-megawatt solar power station complex in the Mojave Desert near the Nevada border.  Two 100-megawatt plants and one 200-megawatt station would be built using the Oakland, California, company’s distributed power tower technology. Fields of sun-tracking mirrors called heliostats focus the sun’s rays on a water-filled boiler that sits atop a tower. The intense heat creates steam which drives a turbine to generate electricity. The site, called Ivanpah, is on federal land about five miles south of Primm, Nevada, on the California side of the border. The company says the construction application is the first to be filed since 1989, when BrightSource founder Arnold Goldman’s Luz International built the last of nine solar power plants that continue to operate in Southern California. BrightSource CEO John Woolard says the company is negotiating with California utilities for the purchase of the power the plants will generate. BrightSource has been negotiating with California utility PG&E (PCG) to supply 500 megawatts of solar electricity but a final agreement had not been reached.  Both Southern California Edison (EIX) and San Diego Gas & Electric (SRE) have contracted for large-scale solar power plants with Stirling Energy Systems and have been expanding their solar portfolios.

Solfocus
Silicon Valley solar startup SolFocus has raised $52 million in its latest round, including $27.2 to finance the expansion of its new Madrid-based operation. The Mountain View company, which now has raised a total of $84 million, is developing a concentrator photovoltaic technology that uses mirrors arrayed in panels to focus the sun’s rays on solar cells. One advantage of such a system is that it uses a fraction of expensive silicon to produce solar electricity. Though the startup has yet to bring a product to market, it’s joined other companies in heading to Spain, a hotbed of solar activity due to a "feed-in tariff" that pays operators of solar power plants a guaranteed above-market rate for the electricity they produce. SolFocus is one of three companies working on a 3-megawatt concentrator photovoltaic installation in Castilla,  la Mancha, according to the company. Participating in the latest funding round are New Enterprise Associates, Moser Baer India, David Gelbaum, Metasystem Group, NGEN Partners, and Yellowstone Capital.

In other solar news, former SolFocus director of field operations Stephen Smith is going to San Francisco solar startup GreenVolts to be its director of project operations. GreenVolts, which is developing concentrator photovoltaic power plants, also said it hired an Intel veteran, Joseph “Chip” Krauskopf, as chief operating officer. Meanwhile, SunPower (SPWR) announced today that it is moving into the Italian market, selling solar systems for residential, commercial and power plant installations.

Suntechnics
The northeast United States is not usually considered a hot spot for large-scale solar power projects like the ones being developed in California and the southwest. But yesterday Pennsylvania announced it will get the largest photovoltaic solar power plant east of the Mississippi. The 3-megawatt power station will be financed and built by Germany solar company Conergy’s Epuron and SunTechnics subsidiaries. Epuron inked a 20-year power purchase agreement with utility Exelon (EXC), which operates the nation’s largest fleet of nuclear plants. The 17,000-panel PV plant will be built in Bucks County, outside Philadelphia. The size of the plant is small in contrast to some of the 500-megawatt solar thermal stations being developed for California utilities PG&E (PCG), Southern California Edison (EIX) and San Diego Gas & Electric (SRE) – or even PV plants like the 15-megawatt facility being built by PowerLight (SPWR) in Nevada. But the Pennsylvania project indicates that the market for Big Solar is not limited to the sunbelt. it’s also a sign that Conergy, one of the world’s biggest solar companies, is serious about its recent move into the U.S.

Vw_touareg
Volkswagen joins the carbon offsetting craze, announcing today it will neutralize one year’s worth of emissions for every car sold in the United States between September and January. And how will the automaker do that, you may ask? VW, in collaboration with non-profit Carbonfund.org, will plant some 250,000 trees on farmland in northern Louisiana. VW claims the "Volkswagen Forest" will soak up 372,000 tons of CO2. Planting trees, of course, produces a host of environmental benefits for the land, wildlife and people. But using forests to offset greenhouse gas emissions is controversial and for good reason. Trees absorb carbon over over the span of many years while the greenhouse gases spewed from the tailpipe of, say, a VW Touareg SUV begins to warm the planet the moment the key is put in the ignition. (A Touareg, for instance, emits more than 16,000 pounds of C02 if driven 15,000 miles a year, according to Terrapass.) If the Volkswagen Forest burns down or trees die, any offsets will be lost. And research from some scientists indicates that planting forests in North America has a negligible impact on global warming (though that’s not the case in the Southern Hemisphere).  Earlier this year, Land Rover (F) began offsetting C02 from its petrol-guzzling SUVs in the U.K., though it charged its customers for the service. Obviously, if automakers really want to slow global warming they could encourage customers to buy smaller, more fuel-efficient cars and ratchet up their investments in plug-in hybrid and electric vehicle research and production.

WciMore states are expected to join the Western Climate Initiative – a consortium of six U.S. states and two Canadian provinces developing a regional carbon trading market – in the coming months, officials said today on a conference call. The WCI includes Arizona, British Columbia, California, Manitoba, New Mexico, Oregon, Utah and Washington. New members may come from the U.S., Mexican and Canadian states and provinces currently associated with the group as observers: Colorado, Kansas, Nevada, Ontario, Quebec, Saskatchewan, Sonora, and Wyoming. WCI officials said they were also open to the participation of Native American tribes, given that a number of power plants operate on tribal lands in the southwest U.S. Five states founded the WCI in February to adopt a regional greenhouse gas reduction target and a carbon trading market to achieve the goal.

Last week the group announced a regional target of reducing greenhouse gas emissions 15 percent below 2005 levels by 2020. (Individual states and provinces have set their own targets. Utah, for instance, won’t set a target until next year while California law requires the state to cut greenhouse gas emissions to 1990 levels by 2020.) The WCI also said that by August 2008 it will have designed a regional carbon trading market to allow those companies that reduce their emissions below the limit to sell credits to those that do not. WCI members on Wednesday’s conference call said the group has yet to decide whether the initial carbon allowances would be auctioned off or distributed. But WCI reps said mandatory corporate reporting of greenhouse gas emissions would likely be required.

The design of the so-called cap-and-trade system is being closely watched by the utility industry, judging by the representatives from companies like PG&E (PCG) and Southern California Edison (EIX) who joined the conference call held to provide an update on the WCI’s work.

Virgin_blue
Green Wombat takes public transport to work, uses compact fluorescent light bulbs in the Berkeley burrow, and dries the washing on a clothesline. But when it comes to air
travel, the wombat is a carbon criminal. The conundrum of being an
environmental journalist for a national magazine with a global outlook
is that the more I write about green technology the more I fly. So
far this year, Green Wombat has logged more than 70,000 air miles, which
according to some carbon calculators means I’m personally responsible for about 30,000 pounds of CO2 emissions from my frequent flying. In contrast, the average Californian’s carbon footprint from all activities is 26,301 pounds, according to the San Jose Mercury News. Of course, that plane is going to take off for London or Sydney whether you or I are on it or not, and barring the emergence of a slow travel movement, the number of flights is expected to grow exponentially in the coming decades.

So when I recently booked a flight on Virgin Blue – Richard Branson’s Australian airline – I guiltily pressed the green "Offset Flight Here" button and paid $2.41 to, as Virgin puts it, "fly carbon neutral" on my 900-mile trip. With U.S. carriers like Continental (CAL) and Delta (DAL) planning similar programs to allow fliers to pay a small fee to be invested in projects to reduce greenhouse gases emissions, Virgin Blue offers a look at one approach to airline offsetting.

Carbon offsetting is controversial, slammed by some as a "papal indulgence" that allows consumers to ease their conscience for a pittance without actually changing their behavior. For their part, corporations get to look green without directly reducing their greenhouse gas emissions. (The "A Better Environment at the Push of a Button" on the Virgin Blue home page doesn’t exactly dispel that notion.) Carbon offsetting services are proliferating but remain largely unregulated as do the offset projects themselves, which range from investments in renewable energy to flaring methane gas in landfills to preserving forests. Defenders say carbon offsetting provides needed financial support to worthwhile projects that have a direct impact on global warming as well as raise consciousness about global warming.

Virgin Blue’s program is notable on a couple of counts. First, the airline had its emissions audited so it could calculate the carbon footprint of its flights. Second, Virgin Blue only invests in greenhouse gas abatement projects certified by the Australian and New Zealand governments. In Australia, most of those are gas-flaring operations that burn off methane – a potent greenhouse gas – from landfills. Other approved projects include forest preservation and energy efficiency programs. (Notably absent are renewable energy projects – some 86 percent of Australia’s electricity is generated from coal-fired power plants.) In New Zealand – which, unlike Australia and the United States – has implemented the Kyoto Accord – many of the approved projects involve renewable energy production.

Lastly, Virgin makes the carbon offset option a prominent part of its online reservations system and offers extensive details about what the program does and does not do. With typical Aussie bluntness, one question in the FAQ reads, "If I offset my flight, this doesn’t really address the fact that emissions are still being released into the atmosphere from the aircraft I am flying on. Surely your campaign is just a cosmetic approach to a much larger problem?"

These airline offset programs will likely have little impact on the growing problem of jet greenhouse gas emissions – it’ll take technological breakthroughs like those being pursued by Boeing (BA) and Virgin Fuels to do that. But given that U.S. fliers already pay a 9/11 fee on airline tickets, a mandatory carbon tax on air travel would go a long way to supporting such efforts.

Wii
San Jose Mercury News tech columnist Dean Takahashi recently took a measure of his household’s carbon footprint, and the veteran gamer discovered the greenest gaming console by far is the Nintendo Wii. Attaching a device that measures electricity use to various  gadgets around his Silicon Valley home, Takahashi found that the Wii consumed just 17 watts. Microsoft’s (MSFT) Xbox 360, on the other hand, is a veritable power hog, sucking down 194 watts, rivaling Takahashi’s 42-inch plasma TV. The Sony (SNE) PlayStation 3 wasn’t much better, guzzling 171 watts by Takahashi’s measure. Nintendo scored a huge hit with the Wii’s relatively simple graphics and family-friendly games that require players to put down the Cheetos and get off the couch. By eschewing traditional testosterone shoot-to-kill gaming that requires ever more powerful chips to render movie-quality scenes, the Wii is also doing a decent job playing the carbon game.

Img_3007
photo: green wombat

California is looking to tap green energy projects in bordering states to meet its ambitious renewable energy targets. The California Public Utilities Commission last week approved a $6 million study to consider the feasibility of building new transmission lines to transmit green electricity from solar power stations and wind farms that could be built in isolated areas of the state as well as in Nevada and Arizona. The move is good news for solar entrepreneurs hoping to develop power plants in the sunny triangle of Arizona, California and Nevada.

The region boosts some of the best solar resource in the country but faces the conundrum that renewable energy-rich areas often are far off the grid. By locating such projects across the California border, developers can avoid the state’s intensive regulatory process while reaping the benefits of selling it green power. California utilities are under the gun to obtain 20 percent of their electricity from renewable sources by 2010 and 33 percent by 2030. Adding to the pressure, regulators earlier this year barred utilities from signing long-term contracts with out-of-state coal-fired power plants, which provide about 20 percent of California’s electricity.

"Many renewable resource areas are located far from the grid and load centers and often require extensive and expensive transmission upgrades," the commission stated.

The CPUC is a member of California Renewable Energy Transmission Initiative, a consortium of state energy agencies. "Meeting California’s renewable policy goals will require rapid development of renewable resource areas throughout the state and possibly in adjoining states,"  states the group. "It will also require the construction of new transmission infrastructure to deliver energy from those renewable resource areas to the electric grid."

Southern California Edison (EIX) lead the study, which is backed by the state’s other big utilities, PG&E (PCG) and San Diego Gas & Electric (SRE). Also on board are renewable energy companies like BrightSource Energy and Solel, both of which are set to build large-scale solar power plants for PG&E.

Pnnl_ab
photo: PNNL
Will the car of the future be powered by hydrogen pellets? Scientists at the U.S. Department of Energy’s Pacific Northwest National Laboratory in Richland, Washington, are investigating the feasibility of using the chemical compound ammonia borane to store hydrogen. When heated, ammonia borane releases hydrogen gas that could, theoretically, be used in automotive fuel cells. PNNL scientists say an ammonia borane pellet weighing three-quarters of a gram can contain as much as 1.8 liters of hydrogen (for the metrically challenged, that’s about half a gallon). The range of fuel-cell cars currently under development by Ford (F), General Motors (GM), Honda (HMC) and Toyota (TM) is limited by the amount of hydrogen that can be stored in bulky on-board tanks. Pop in a handful of hydrogen pellets into a small onboard reactor that would control the release of hydrogen, the thinking goes, and your fuel-cell car would have the range and performance of a conventional vehicle. "It’s somewhat hypothetical but we think it’s something potentially doable," PNNL staff scientist Donald Camaioni told Green Wombat on Thursday. Presumbably such a reactor could also be used to generate electricty for home and commercial use as well.

The research is in its earliest stages, and the prospect of a hydrogen-pellet powered car is many years away, if ever. Camaioni says he and his colleagues have managed to release hydrogen from ammonia borane in the laboratory but two big challenges need to be overcome. One is figuring out how to control the release of hydrogen from ammonia borane through varying the temperature of a reactor. The other is to develop a system that can reprocess the spent pellets for reuse. "Right now there isn’t a well known way to do that cost- effectively, he says. Of course, if a hydrogen-pellet fueled vehicle is to be a carbon-free car, a no-emissions way of powering the reactor must be found as well.

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