Green Power

Yesterday, the Canadian province of Ontario announced a deal with a Korean consortium led by Samsung to produce renewable electricity and manufacture the equipment.  The idea is to create new generating capacity and build an industrial infrastructure for the production of renewable energy equipment.  Sounds like a good idea but only time will tell if the investment materializes and the power is produced.  According to the reports 16,000 jobswill be created.  Also a positive goal but I am always skeptical of these job creation announcements because you never really know how they calculate that number.  It could be a positive development for a North American renewable energy industry as we may see the establishment of a major industrial hub for the production of the equipment.  I'm sure the government is hoping to create something akin to what Detroit is (was) for the automotive industry.  On the surface it is a positive but the true costs of the  job subsidies that always come with these large projects and the cost of renewable electricity subsidies will determine if this works. 

Brownfields to Renewable Energy Sites

I found a couple of links about converting brownfields to sites for renewable energy via an article on Slashdot. The first is an article about the idea from The Daily Climate and the second is a list of brownfield sites from the EPA.

Despite the fact that we have thousands of these contaminated sites this sounds look a good idea. It puts recycling to work in a whole new way. It looks like Detroit could become the green capital of the U.S.A. the way it was the automotive capital since it has lots of industrial sites that could be repurposed. It is such a simple idea that makes so much sense I'm surprised it hasn't already been going on. I look forward to seeing how this develops.

U.S. Electricity Mix

The source of electricity across the U.S. vary greatly. If a minimum standard for renewable sources is to be set we need to examine what is currently on line. Check out the map and dataset available at ManyEyes and see where your state fits. Biggest surprise to me was Vermont with 72% nuclear. Maybe it has one plant and has a low total generation that skews the number a bit.

Alternative Energy Investing

If you think alternative energy is the future then maybe you want to invest in the sector. A good analysis of sector ETFs by Charles Morand is available at SeekingAlpha. As with any investment do your homework. The sector, in my opinion, is gaining many entrants right now and at some point there will be a few great companies that emerge and define the industry. Now it's just a matter of picking the right one:)

Alternative Energy Funding

I recently read about developments in venture capital funding in cleantech. According to VentureBeat, the funding for cleantech dropped dramatically compared to the first quarter last year, with the exception of energy storage (i.e. batteries). The NY Times has reported that venture capital is shifting to efficiency projects over alternative fuels.

My perspective on this is that automotive battery technology is preparing for real production. However, we might not be able to generate enough clean electricity for electric vehicles so we need efficiency across the board to provide that electricity. Basically, the new supply will come from conservation but it will be used by electric vehicles.

Smart Grid

Smart grid technology is coming and it will change everything about electricity. Earlier this week an announcement was made in Miami about smart grid deployment. This project is a combined effort of GE, Cisco and Florida Power and Light. The U.S. Department of Energy has a document introducing the technology.

I think the smart grid will revolutionize the electricity market the way the Internet changed communications. We just have to learn the lessons from the development of the Internet to get it right from the start.

Solar Energy Costs

First Solar has recently announced that it reduced it's cost to $0.98 per watt. They are also close to producing 1 gigawatt of panels per year. Looks like scale and cost reduction are being achieved in the industry. Combined with breakthroughs in PV technology, conservation and "smart grids" an alternative energy future looks promising.

The price of alternative energy is the deal breaker for mass adoption. There will be many policy initiatives to enhance adoption and subsidies to make them attractive. Unfortunately, only time will tell how this plays out.

Carbon Dioxide News

I found a couple of articles yesterday about carbon dioxide that I though were interesting. The first is about a company that is converting CO2 into liquid fuel. The article goes into the process and the problem with similar claims and the difficult science behind developing this technology. The second is about the recent desire for a cap-and-trade program on CO2 emissions and how there might be unintended consequences if the price drops and it becomes cheaper to pollute.

It looks like our desire to maintain the status quo while trying to minimize the damage is going to lead us further astray. Without any real attempt at conservation, building a renewable energy infrastructure or distributed generation program I think it will be difficult to get away from the cheap power from coal. Cap-and-trade, while a good idea, will only facilitate the continued pollution because we have no alternatives. Carbon capture is too expensive to be viable right now and nobody really know the long-term impact of burying CO2. Experimental technology converting CO2 to other fuels or for other uses is a great idea and I hope it is feasible. I'm just nervous that it will not help us actually reduce our emissions and change our consumption culture. We need to link ourselves to the production of what we consume and the waste we generate to fully understand the impact we have. Then we can work on a comprehensive solution.

Looking for a Job?

Based on the news reports, many people are looking for a job. perhaps you have some skills that you can easily transfer to a green job or you are looking for a new direction. A new site has been launched for the renewable energy market. RenewableEnergyJobs.com is dedicated to finding employment and people in the renewable energy market. They offer services to recruiters, employers and job seekers. It lists positions around the world or by sector in the renewable energy industry. It just started but it looks great and they have a decent amount of listings already.

Carbon Capture and the Oil Sands

President Obama has hinted at a green energy policy that would limit "dirty" sources of fuel, like the oil sands. During yesterday's meeting with the Canadian Prime Minister the issue was discussed but no details were given. Canada has hinted at developing carbon capture and storage (CCS) technology to make the oil sands development cleaner. Sounds great except for two things. CCS has yet to be developed and more energy is used in extracting crude than is gained from the use of it. Further, the amount of water used in the process is another point of concern. Rather than sinking an unknown amount of money into an unproven technology why don't we just use less energy and begin using real clean energy?

The Next Generation

Power generation is a vital component to our economy. We cannot address many environmental issues without addressing the generation mix. Finally, electrical infrastructure is need of replacement in many parts of North America. What's next?

In my opinion, nuclear is not the answer. A recent report highlights that many nuclear projects are not viable commercially unless they have government support. I realize that these days nothing looks viable without government support but many critics of alternative/renewable energy say that without tax credits they are not competitive. Neither is nuclear. The only one that is cost-effective is coal but that will only last until emissions are priced in cap-and-trade system.

Conservation is the key to all of it. Using less energy is the best way to relieve capacity constraints on generation. After that renewable energy needs to be combined with a distributed generation network. Until those elements are seriously considered little will change.

Should Some Places be Off Limits?

Solar panels and windmills are going to become a significant part of our landscape. In a Spanish city they put solar panels on mausoleums in a cemetery. Should there be places that are off-limits for renewable energy development? Should we use criteria for renewable development like we do for natural resource extraction?

These are tough questions that we need to answer. I think we need to change the paradigm in which we evaluate everything we do. As a society we need to determine whether we will change our consumption driven economic model. Based on what we are seeing unfold in the daily "bailouts" and "stimulus" it looks like business as usual will continue for some time. Whether that is good or bad remains to be seen,

Lehman Brothers Bankruptcy and Renewable Energy

The Lehman Brothers bankruptcy will have a massive impact on the financial markets today. I think there will be an impact in the renewable energy sector as well. While the Lehman press release says that the subsidiaries and other holdings are not included in the bankruptcy filing. I believe Lehman Brothers owns a company called Skypower that is involved in renewable electricity generation. If they have other investments they may need to be liquidated which might create some changes in the investment climate for these types of companies. Also, another source of financing may dry up as investment banks are increasingly vulnerable and are tightening credit availability. Regardless of how promising this sector looks the money may not be there and the dreams of cheap, renewable energy may be sidelined. Add falling commodity prices and global economic slowdown and the environmental focus of recent years may move to "saving the economy".

More on the Pickens Plan

The Pickens Plan has been receiving a lot of attention lately. It basically wants to replace foreign oil imports with wind and natural gas. The wind will be used for electricity and natural gas for transportation.

Now Pickens is looking for help from the public to convince the U.S. Congress that they should implement an energy policy in line with his plan.

I'm not sure of his motivation here. It has been widely reported that he is involved in a $10 billion wind project. I doubt that one wind project is all since he has made his fortune in oil and at these prices could continue to do so. It is unusual that an individual from business would campaign so aggressively for a plan like this. Maybe things are changing...

The Pickens Plan

The Pickens Plan is about replacing foreign oil with renewables and natural gas. Click the photo to go to the site and learn more.

Homemade Electric Power

If you're going to have a homemade electric car you'll need a way to charge those batteries. How about your own "water wheel". I found one via Make and the homepage for it has many designs and documents the process of making it. The one I find the most fascinating is the Pressure Wheel that manages to increase the water pressure to generate electricity. All you need is a stream and away you go.

I really like these DIY solutions with instructions. Even if you don't have the opportunity or resources to make them work for you they are always inspiring and a lot of fun.

Can Renewable Energy Change Everything?

There is a growing interest in the economics of renewable energy as well as the environmental benefits. New investment products for the renewable sector are being launched and coverage of the solar and wind companies in the stock market is increasing. The world operates on electricity and according to an article in the Economist, global electricity use could double by 2050. With rising prices of fossil fuels, heightened environmental awareness and growing demand for energy renewable energy is at the point where they can become viable economically. This article also discusses the potential economic boom and the impacts. A very interesting read.

Solar Power, War and Oil

How are solar power, war and oil related? Read on....

Over the weekend an editorial was written by Eric Margolis which has the title of "These wars are about oil, not democracy". He makes this statement since new oil and gas pipeline and development agreements have been signed in Iraq and Afghanistan. I'm sure many people are shocked by this statement because we all believed that weapons of mass destruction existed and that Osama would be caught and brought to trial. It is a good editorial and ties some things together if you didn't already know.

So the wars are about oil. Despite our best efforts to secure new supplies through these wars the cost of crude continues to rise. Gasoline is rising dramatically and the damage to the economy is around the corner. How expensive is the war? Follow this link to the National Priorities Project and it has a running counter. Right now it is over 530 billion dollars. There are more costs that are probably not captured here and we still need to account for the economic and environmental damage.

What could we have done that would have cost less, achieved energy independence and probably not killed thousands of people. Implement a solar grand plan as outlined in Scientific American. Sure it is on a 40 year timeline but aren't we planning to wage the war on terror for as long as it takes anyway?

The bottom line is that until we change our political and economic systems we will continue on the same path.

The Oil Market and Alternative Energy

Oil prices are reported daily in every paper, newscast and radio show just like the NASDAQ was in 2000 before the crash. There is a near hysteria in the public about the price continuing to rise and people are oblivious to the facts. I'm not suggesting an imminent oil price crash nor am I offering financial advice but I'm trying to illustrate a point.

An article titled "The Great Oil Deception" explains how the supply and demand equation is being distorted not in reality but in reporting. This creates price distortions and eventual impacts for the broader economy. Much like the NASDAQ market in 2000.

What is the impact on alternative/renewable energy? If oil prices are grossly distorted then the perceived value of alternative energy is also distorted if it is valued in relation to fossil fuels. Without a carbon tax, or another model to achieve full cost recovery for using and producing fossil fuels, alternative energy will not be able to compete if oil prices decline. For alternative energy to continue to be viable it will need to have continued subsidies. If a broader economic decline follows the oil price spikes these subsidies will not be affordable. Alternative energy is again at the mercy of fossil fuel and conventional energy because these conventional sources are not priced to include their broader impact on the environment and the economy. If conditions continue higher oil prices are the only thing that can save alternative energy.

Ethanol, subsidies and more

I'm not a fan of corn based ethanol. One of my main reasons is that it requires a lot of subsidies to make it viable. It is also not that efficient in producing energy as opposed to other forms of ethanol. The subsidies create distortions in the marketplace and allocate resources in an inefficient manner and we could be investing in more effective solutions to solve energy problems. I found a great article that highlights the amount of subsidies given to Iowa in particular. $4 billion in farm subsidies. They may not all be related to ethanol but in a period of rising grain prices but I'm not sure if all these subsidies are really necessary now. I guess it is just more proof that government regulations can be very misguided. Maybe we'll see some changes in policy.