Showing posts with label Wind. Show all posts
Showing posts with label Wind. Show all posts

Friday, January 18, 2008

Cleantech investment looking strong - will it hold?

Interesting juxtaposition between the current stock market turmoil and recession concerns and the continued growth in renewable investment. Of course, most of these renewable numbers are backward looking (compared to the general forward-looking macroeconomic concerns), and even in recessions, one would expect to still some pockets of growth.

Ignoring the multiple challenges facing the U.S. economy (increasing unemployment, slowing business investment, decreasing consumer spending, credit contraction and contagion), there was a lot of positive domestic news the last couple days in the renewable sector, from many different angles.

Green-tech investment topped $5 billion in 2007: The Cleantech Group’s numbers are different than New Energy Finance, and Greentech Media (as each group measures different sources of financing), but the percentage growth trends for all are highly positive.

2007 venture investment in the alternative energy market in North America and Europe was $5.18 billion, compared with $3.6 billion the previous year [growth of 44% year-over-year]. The 2006 rise was also 44 percent.

The number of financing deals in the industry increased 15 percent last year to 268, and the average deal size rose 20 percent to $14.7 million.
Actual press release with more detail here, while another good overview is here.

Wind, Solar Power Gain Users: (subs. required) Meanwhile, strong numbers from both the wind and solar industries as well.
The U.S. wind-power industry grew in size by 45% last year, adding a record 5,244 megawatts of capacity that amounted to a third of all new generating capacity built in the U.S. in 2007, according to the American Wind Energy Association.

The solar industry grew at a similar clip, though from a much smaller base, adding more than 300 megawatts of capacity last year, according to the Solar Energy Industries Association. Additions are expected to roughly double this year. Large commercial solar installations now exceed home installations in California, reversing a long-term pattern and likely a bellwether for other states.
Much more detail on the wind numbers here.

Hot Carbon Market Signals New Interest: Even the carbon market got into the act, showing excellent year-over-year growth.
Trading of carbon-emission permits almost doubled in value last year to €40.3 billion ($59.1 billion), according to a new report...The market saw permits representing 2.7 billion metric tons traded last year, according to Point Carbon, a market-research firm based in Oslo. In 2006, permits representing 1.63 billion tons changed hands for a total value of €22.45 billion, the firm said.
Weekly cleantech deal tracking - eSolar gets Googled: In addition to Google’s investment in eSolar, there were a number of transportation related VC investments this week in a wide range of areas (14 total in this specific post).


Certainly, this was a great start to the new year for the renewable sector. Moving forward, it will be interesting to see how the industry responds to a slowing economy and any future stimulus efforts (fiscal and monetary). While the extension of production tax credits past 2008 will perhaps be the most important driver of near-term investment, the overall health of the U.S. (and global) economy could still play a role.

Friday, January 11, 2008

Morning links - wind, PEVs, green business, transportation and smart-grids

Various items I've come across this morning that I thought I'd share.

Size Matters: Good round-up on wind development and investment in the U.S. from the WSJ's free blog "Energy Roundup". Several new developments are noted in this post, including the first-time use of 3MW turbines in the U.S., competitor collaboration among Enel and GE, and increasing industry consolidation.

Race to Make Electric Cars Stalled by Battery Problems: Long front-page story on the challenges plug-in hybrid and electric vehicle makers face in sourcing batteries that are safe and reliable. Very good overview, and adds some necessary context to my post yesterday on PEVs.

Wal-Mart faces hurdles in green electronics: Wal-Mart's sustainability push, and the sizable impact of that decision on manufacturers, other retailers, supply chains, and ultimately consumers, has been reported and debated ad naseum. This article discusses some of the challenges electronics manufacturers (and Wal-Mart) are facing in meeting Wal-Mart's objectives. Depending on the outcome of next year's elections, we may finally see some kind of federal legislation that consolidates the wide-ranging standards for energy efficiency, sustainability and recycling.

27 electric cars companies ready to take over the road (h/t Earth2Tech): An interesting list of electric car manufacturers. There are enough cars here for every taste and desire imaginable.

Moving Billions of People on a Still-Green Planet?: Rather fascinating piece from the NYT's blog on environment, focusing on broad trends and scenarios in transportation. A lot of links and research here to digest.

News Flash: 110% of Consumers Shop Green!: Joel Makower is one of my favorite thought-leaders in this space, and his new post on the environmental consumer and greenwashing has far-reaching implications. I covered a similar topic (sparked by an earlier Makower post) here.

What's so smart about smart metering?: Its a couple weeks old, but an informative interview with the CEO of smart-grid-focused company. I thought it wrapped up a lot of what I've been discussing recently here, here and here.

Tuesday, January 08, 2008

Could renewables supplant 100% of traditional electricity generation?

As I first wrote here, managing intermittency of renewable energy through geographic diversification could be a key driver of large, utility-scale adoption of renewable power beyond the 10%-15% threshold typically assumed. It also featured in my predictions for 2008.

Now, the Combined Power Plant in Germany is putting all of the theory into practice. (via The Sietch Blog, h/t Gristmill)

In an pilot experiment featuring 36 renewable energy power sources (11 wind, 4 biogas CHP units, 20 solar systems and a pumped storage power plant) all linked by a central control unit, the Combined Power Plant project demonstrates that most, if not all energy demand can be met exclusively by renewable energy. From the background paper:

Wind turbines and solar modules help generate electricity in accordance with how much wind and sun is available. Biogas and hydropower are used to make up the difference: they are converted into electricity as needed in order to balance out short-term fluctuations, or are temporarily stored….

…Cutting edge technology is already able to forecast energy yields reliably. The Combined Renewable Energy Power Plant makes use of this technology and regulates electricity needs just as securely as conventional, largescale power stations…


...These power plants are intended to meet one ten-thousandth of Germany’s electricity needs – roughly equal to the electricity requirements of a small town with 12,000 households (such as Stade in Germany). The Combined Power Plant therefore shows in miniature what is also possible on a large scale: 100 per cent provision with renewable energy sources at all times.
The Technical Summary has more.

I recommend first starting with the 7 minute video which does a wonderful job explaining the program and underlying reasoning.

Certainly, a national roll-out of this project would require the development of several enabling and ancillary technologies, including the build-out of an extensive high voltage power transmission infrastructure, and sophisticated demand response technology and networks. But coupled with improved energy efficiency and individual power management initiatives, this could potentially represent a quantum leap in a renewable energy powered future.

Sunday, January 06, 2008

News and notes - Cleantech VC conversation, wind M&A, marketing

Few things I came across this weekend.

Earth2Tech Video: Cleantech Investing With Draper Fisher Jurvetson: Informative and insightful interview with two prominent cleantech VCs. Their thoughts on the cleantech "bubble" (about the 9 minute mark) are especially interesting, and they spend a good deal of time in the latter half of the interview talking about specific companies.

Scottish and Southern Energy to Acquire Airtricity for EUR 1 Billion: a couple weeks ago, I wrote the following in this post:

We should see continued consolidation in the wind power industry over the next few years, and those companies with the capacity to go public or raise private capital will do so soon....Those companies with available capital and market leadership should be best positioned to take advantage of this maturing sector.
I will be keeping track of this deals for future reference, as I expect we'll be seeing many more, especially if several planned wind IPOs come to fruition.

Truth in Advertising: more "something to watch" at this stage, but the FTC's decision to move up the review of its Green Guide (last updated in 1998) doesn't come a moment too soon. Many of the year-end posts that I linked to here focused on the trend of corporate environmental initiatives, and greenwashing. Perhaps the single most important aspect of marketing is "authenticity". Be it tweens, 18-34 men, housewives or NASCAR fans - know your audience and be real to them. The same of course applies for companies trying to reach consumers interested in the environmental practices, perhaps some of the toughest critics around.

Friday, December 21, 2007

Extension of incentives and tax credits

Having covered this topic recently, as well as the importance underlying these policies here, I'll only point out some recent discussion on the topic. First, from Reuters (h/t Gristmill):

Leaders in both the Senate and House of Representatives vow to revisit the tax incentives next year, but so far have advanced no definite plans. "We're going to be back and we're going to get that vote more quickly than you think," Senate Majority Leader Harry Reid said on Tuesday.
Meanwhile, the president of the solar lobby group (the Solar Energy Industries Association), Rhone Resch, gave an optimistic interview to Cleantech:
"Although this bill didn't include an extension of the tax credits, we're optimistic that we will see another tax title move early in 2008 that'll include a long-term extension and expansion of tax credits both for solar and for wind," Rhone Resch, president of the Solar Energy Industries Association, told Cleantech.com....

..."There's no opposition from the White House or Republicans to extending the tax credits for solar, it's just a matter of finding the best way to pay for it,"
Resch's counterparts at the American Wind Energy Association have created a link for you to contact your elected officials. A slightly more detailed article is here from a couple days ago.

Tuesday, December 18, 2007

Iberdrola update, groSolar funding, energy trends, green collar jobs and oil watch

A few items of note today:

EDP to decide on sale of renewables business: the Iberdrola Renovables IPO isn't making much noise (although it is a huge traffic draw to this site for some reason), but Portuguese power company EDP is considering a similar path:

EDP will decide on the sale of 20 to 25 percent of its renewables business in the first quarter of 2008, EDP's chief financial officer Nuno Alves was cited as saying. Alves said in an interview...that some banks had shown interest in carrying out the sale of its renewables business, which includes NEO in Europe and recently acquired U.S. wind-farm company Horizon Energy. He said EDP's renewables business could be worth around 10 billion euros.

EDP plans to invest 7.6 billion euros until 2010 in NEO, which has wind farms in Portugal, Spain, France and Belgium. Portugal's biggest industrial group recently bought U.S. wind-farm company Horizon Energy for $2.2 billion.
We should see continued consolidation in the wind power industry over the next few years, and those companies with the capacity to go public or raise private capital will do so soon. As onshore wind nears approximate grid parity with traditional energy sources, wind finance becomes as much a real estate, scale and turbine sourcing play as anything else. Those companies with available capital and market leadership should be best positioned to take advantage of this maturing sector.

Meanwhile, a quick update on Iberdrola Renovables (IBR) – it saw a second day bump of almost 7%, before falling back and is now trading about 5% higher than its first day opening price.


groSolar Raises $10 million in Growth Equity Financing:
groSolar, a national solar energy firm, announced today that it has secured $10 million in a Series B financing…NGP Energy Technology Partners…led the investment round. Each of the company’s original investors (SJF Ventures, Calvert Social Funds, and Allco Financial Group) also participated in this latest round of funding. groSolar closed its $2.25 million Series A financing in September 2006.
While usually I’d leave this up to various cleantech investment blogs, there are couple things I wanted to note. First, there are several positive signs for groSolar in this news: solid but not excessive second round valuations, follow-on investments from all original investors, quick close for new funding round. Second, groSolar isn’t a pure technology play in the solar space, so much as a distributor and installer, in both the commercial and residential sectors. This is one small example of the growing maturity of the solar industry – that traditional business models (grafted onto high-tech plays) are seeing significant interest, funding and growth.


The World of Energy in 2007: just wanted to highlight this excellent post, which discussed 11 highlights and trends in energy this year. It also serves as a good demonstration of the diversity and breadth of opportunity in this space, but also the challenges in keeping it all straight. To really play in renewable energy, the perceived expertise necessary can sometimes feel overwhelming. Fluency in innumerable unique technologies, mastery of global, regional and domestic policy, familiarity with entrepreneurship, capacity to understand a variety of finance and investment strategies (project finance, VC/PE, debt, public offerings). The list is endless. Or you could just be a blogger and opine ad naseum, no skill set necessary...


Green Collar Jobs Could Fill Many Needs: I came across a similar report a year ago, when I read the Apollo Alliance’s New Energy for America report, detailing how U.S. clean energy investment could lead to 3 million ‘green collar” jobs, especially in inner-city neighborhoods, the manufacturing sector, and rural communities. The new report referenced above came out of the Ella Baker Center, and focuses on the Bay Area in particular, and how green business:
[has the] ability to provide green collar jobs to those lacking high school diplomas or work experience, or who were formerly incarcerated. These jobs -- which are blue collar jobs within the green economy -- can be found in non-profits, social enterprises and the public sector.

Oilwatch Monthly - December 2007:
1) Plateau production - Both the International Energy Agency (IEA) and Energy Information Administration (EIA) figures show that the plateau of global liquids production that began in 2005 recently ended due to a large production increase of 1.4 million b/d in September/October. This production increase has been sustained during October/November.

2) Total liquids - In November world production of total liquids increased by 55,000 barrels per day from October according to the latest figures of the International Energy Agency (IEA). Resulting in total world liquids production of 86.55 million b/d, which is the all time maximum liquids production.


Where this gets interesting is in the actual report:
For the second consecutive month the International Energy Agency (IEA) has published figures showing a new all time high in world liquids production. As oil production increased from 85 million barrels per day in September to 86.5 million barrels per day in November, some breathing space has been created….

This new all time high brings to question whether those who called the peak in conventional crude in at may 2005 have been proven wrong. Called peak because that has so far been the month of all time high conventional crude production at 74.30 million b/d. If proven wrong by reality due to higher production, the case for a nearby peak in all liquids production is much less defensible.
Again, feel free to review the actual report here, for Oil Drum’s detailed monthly analysis of the present state of oil and other global fuels production.

Monday, December 17, 2007

Diversification in renewable energy

Most individuals operating in the renewable energy sector are aware of the challenge of “intermittency” found in wind, solar, and other renewable sources - i.e. wind/solar electricity output is variable by nature and thus cannot serve as a guaranteed, baseload power source.

Below, I discuss some of the concerns that scientists have raised regarding PV solar intermittency specifically, and then cover new studies indicating the broad potential of wind power to mitigate these concerns.

One issue with distributed photovoltaic solar involves the “waste” of solar PV-generated electricity, which theoretically occurs if PV reaches large US penetration levels. According to two studies from Paul Denholm and Robert Margolis out of NREL (unfortunately only one is available publicly):

The intermittency of solar PV...presents a set of critical challenges with respect to integrating PV on a very large scale into the electricity grid. Ultimately, this intermittency may limit the potential contribution of PV to the electricity sector.
Once PV provides 10%-15% of the overall electricity portfolio of a traditionally structured grid, the inflexibility of the current baseload system ensures that any additional PV generation will mostly be wasted.

This is due to the nature of the current U.S. electricity grid system and the difficulty for PV solar to match volatile demand due to its intermittency. Large baseload plants are limited in how far and fast they can drop or boost capacity to match demand (due to various costs, efficiency and timing reasons) According to these studies, past a certain level of penetration (10%-15%) PV solar can only augment existing capacity, and not replace it. On moderate or low demand days, PV electricity would be wasted in order to avoid interfering with baseload plant operations.
The two researchers found that under high penetration levels and existing grid-operation procedures and rules, the [utility] system had excess PV generation during certain periods of the year that increased PV costs—that is, the PV electricity had to be dumped. The limited flexibility of baseload generators, which cannot respond to rapid changes in load, produces more unusable PV generation when PV provides more than approximately 10%-20% of a system’s energy. [source]
However, two wonderful posts at The Energy Blog pointed me to new studies that may challenge this conventional wisdom.

The first study, out of Stanford, makes the claim that connecting multiple wind farms with some amount of geographic diversity creates a large and diversified wind power resource with enough reliability to serve as a baseload power source.
Interconnecting wind farms with a transmission grid reduces the power swings caused by wind variability and makes a significant portion of it just as consistent a power source as a coal power plant. This study implies that, if interconnected wind is used on a large scale, a third or more of its energy can be used for reliable electric power….

…The researchers used hourly wind data, collected and quality-controlled by the National Weather Service, for the entire year of 2000 from the 19 sites. They found that an average of 33 percent and a maximum of 47 percent of yearly-averaged wind power from interconnected farms can be used as reliable baseload electric power. These percentages would hold true for any array of 10 or more wind farms, provided it met the minimum wind speed and turbine height criteria used in the study.
I’m reminded of both diversification theories in finance, and aspects of the Central Limit Theorem, in looking at these explanation. Is there a statistical theory involving variance in systems, and being able to mitigate that variance with diversification of inputs? If so, could one of my much smarter readers please fill me in?

The Stanford study also discusses the concept of interconnecting wind farms to a common point, which improves efficiency and cost. Essentially, this strategy recreates the centralized power generation and distribution model which comprises much of the current U.S. electricity system. Those seeking to rebuild American electricity grid infrastructure around distributed power models may be disappointed. But power generators, utilities, and the various government entities that oversee/collaborate with these groups, may be more comfortable with centralized energy concepts. Equating a portfolio of interconnected wind farms to a large 1GW coal plant (in terms of T&D issues, etc.) could improve understanding and acceptance in these circles.

However, I was even more fascinated by a recent study from the Cambridge-MIT Institute (again h/t The Energy Blog), which focused on the potential outcomes for strategic energy security from developing a diversified electricity production system. This highly readable study posited some insightful results:
  • in order to explore the potential for geographic diversity, the study reviewed the correlation between wind speed and distance, and found that “sites far apart exhibit very low cross-correlation”. At 600km distance, correlation (r) was about 0.30, while at 800km, it dropped to 0.20.
  • in exploring “the percentage of UK sites that have simultaneously experienced calm conditions for one hour” from 1982-2000, it found that “there has not been a single hour in the last 15-20 years when conditions of total calm were experienced right across the UK”. Meanwhile, calm conditions lasting one day, “affect less than 2% of the UK with the remaining 98% of the UK experiencing wind at these times.”
Thus:
By taking a planned approach to the development of wind power, the impact of distance on correlated output can be fully exploited within the UK, improving the reliability of wind power and minimising the additional backup capacity required due to the presence of wind power on the network. The additional backup required to support 20% electricity generation from wind is estimated at around 4GW.
However, perhaps most interesting to me was the attempt by the study to model the impact of various climate policy scenarios on electricity diversity.
Where no emissions target is imposed, there is a decline in diversity in all three scenarios. This decline is driven by an increase in the proportion of generation accounted for by natural gas. The implication of this fall in diversity is an increase in insecurity, as the electricity system becomes more exposed to one fuel source. By contrast, under an emission target of 60% there is a substantial increase in diversity under all three scenarios as the dominance of natural gas goes into decline.

These basic results prompt two observations. First, low carbon scenarios appear to be associated with higher diversity. Second, these results are largely driven by changes in the share of generation accounted for by gas.
Ensuring smart and strategic policy, and incentivizing markets appropriately can aid in the pursuit of energy independence and large levels of penetration for renewable energy.

Denholm and Margolis’ solutions for the PV solar penetration challenge include increasing the “flexibility” of the conventional system, meaning that base load plants can cycle down to lower levels, “dispatching” load more efficiently with smarter appliances or developing more effective energy storage system.

The Cambridge/MIT study suggests a “concentration charge” which could either “levy a surcharge on [energy supply companies] in proportion to the diversity index of their overall portfolio” or levy the charge “source by source to reflect the concentration of each source to the system.

So is the intermittency issue no longer a problem if you diversify your renewable energy “portfolio” across a geographically broad enough environment? Great news if so...

Thursday, December 13, 2007

Iberdrola IPO down on first day

Too much, too soon?

The shares of Iberdrola Renovables, the renewable energy unit of Spanish power utility Iberdrola SA (IBE.MC), Thursday fell sharply in their trading debut after the world's second-largest initial public offering of the year. The stock opened down about 1.3% at EUR5.23. Five minutes later, Iberdrola Renovables was down EUR0.25, or 4.7% lower, to EUR5.05.
More here. At least the multiple is a bit more reasonable - 15x EBITDA.

This was one of my concerns which I didn't go into the last post. This is a easy headline for a business reporter to write - "IPO fails, cleantech valuations too high, bubble feared." There are innumerable reasons why an IPO doesn't work - it's priced too high, too large an offering, the underwriters did a poor job of book-building, exogenous market forces aren't bullish that day, etc. This isn't to say that Iberdrola didn't get ahead of itself or that there weren't signs that wind-focused IPOs might not generate international investment. (unpack those double negatives!) Just be cautious drawing too many inferences off one day's performance.

The CEO blames market conditions in the U.S.
Iberdrola SA chairman Ignacio Sanchez Galan said today's market debut price for the group's renewables division is 'not significant' given current market conditions. Speaking to investors at Iberdrola Renovables' debut, Galan said 'this is not the best day' for a new listing given the broad European market trend.
Also, partially answering my question from my previous post on the topic:
Iberdrola plans to invest some 8.6 bln eur of its 18 bln eur investment budget to 2010 on renewables, aimed at reaching installed capacity of some 13,600 MW by that date.
I'll close on this FT article, which takes a bullish perspective long-term:
But [Iberdrola's IPO] is well above the valuation multiple on which parent Iberdrola trades, thus providing ample justification for the listing. With a market capitalisation of more than €22bn, it has created a bellwether stock for the European renewables sector as well as raising nearly €4.5bn of new capital. With €9bn of investment planned and the intention of raising gearing from nearly zero to 50 per cent net debt to equity over the next three years, acquisitions as well as organic growth seem very much on the cards.

Monday, December 10, 2007

Iberdrola's public offering

There's a lot to unpack in the upcoming 20% spinoff of Ibedrola's clean energy unit. First some details:

Spanish power company Iberdrola SA's plans to sell 20% of its clean-energy unit in a pricey public offering this week that will shed light on whether "green" energy is the real deal or just a fad. The company has placed a preliminary value on the unit, Iberdrola Renovables SA, at €22 billion to €29.6 billion ($32.2 billion to $43.4 billion), making it the largest green-energy stock-market debut ever and a litmus test of investor appetite for alternative power, such as wind or solar.
VCs and private equity shops rely heavily on IPOs to harvest the value of their investment and their extensive time commitment. These investors, especially mid-to-late stage, put a lot of weight behind the success or failure of recent IPOs, especially when advising other portfolio companies in similar industries and in making new investments. While there have been a number of successful solar IPOs this year and Photon's solar index has risen 119% in the past 12 months, the fear, given the incredibly high multiples of these companies, is that what goes up (and up and up) must eventually come crashing down. A poor showing could theoretically give some investors pause, especially if they are "'short-term' tourists".

There are several issues that I'm either curious about or give me pause:
  • Reports have the valuation of the Iberdrola Renovales at 100 times PE (if the offering price hits the top-end). This compares to traditional U.S. electric utilities with PEs in the 6-15 range. Iberdrola may be a whale (largest wind power operator globally) in the hottest industry since the Internet circa 1999, but it's still only in the business of generating and selling power. And at a cost premium to coal and natural gas. Certainly the market values high growth over maturity. But still...
  • What is the capital being used for? New Energy Finance pegs the capital raised between $6.6 billion and $8.8 billion. Is this going for acquisitions? Internal growth strategies? R&D? Getting returned to shareholders? Is Iberdrola trying to get ahead of a perceived consolidation in the wind industry? Or is it getting out while the going's good?
  • Iberdrola Renovable's primary clean tech focus is wind. The same NEF report points out the following:
Other wind power firms have found it difficult to command market attention this month - only last week, Italian firm Fri-El Green Energy confirmed that it had put on ice its own plans for an IPO to raise up to $676 million, and another Spanish firm, Eolia Renovables, announced that it had pushed its flotation back to January.

From my perspective, this could be a result of months of market turmoil, concern over climate negotiations, or just an undersubscribed offering. But it may be something to watch.
  • Other European utilities will be watching the results of Iberdrola's spin off closely. Acciona Renewables and Endesa (controlled by Enel) recently got into bed together under very clean, green sheets, and both Enel and Acciona have recently taken significant interest in the U.S. recently, investing heavily in renewables. It will certainly be interesting seeing where their next steps take them.
Ultimately, all of my caveats and concerns may be irrelevant. Global energy demand continues to grow unabated, and will continue to do so over the next decade, in the U.S. (where Iberdrola is heavily exposed), China, India or rest of the developing world. As carbon prices rise, environmental concerns multiply, and the $/watt cost of installing wind drops, no doubt Iberdrola will be extremely well-positioned to grab some of the hundreds of billions of dollars that will inevitably flow into this industry.

Moreover, there is a lot of institutional money on the sidelines, desperate for solid, mainstream plays that they be involved in. I recently heard about the story of one very large US investment fund demanding that
one of its investment mangers immediately invest several hundred million dollars in clean energy in a particular emerging market, despite neither of them having any experience in the space. The fund just wanted to be involved in anything.

Finally, given their location and policy environment, European investors (especially institutional) may have a much different perspectiv
e than U.S. investors when it comes to clean energy, and may be more willing to support the first few offerings. To close on one:
"We'd be willing to pay a premium to get the market leader" in renewable energy, said Treasa Ni Chonghaile, a fund manager at KBC Asset Management International Ltd. in Dublin, which manages the $82.5 million Calvert Global Alternative Energy Fund, already a holder of Iberdrola stock. "Its exposure to high-growth markets, especially the U.S., should give it higher multiples than other developers."
UPDATE: I took out two graphs because they made no sense and added nothing to the post.

Wednesday, December 05, 2007

Turbine-less wind power

Cool innovation. Winner of a 2007 Popular Mechanics Breakthrough Award.

[Shawn] Frayne’s device, which he calls a Windbelt, is a taut membrane fitted with a pair of magnets that oscillate between metal coils. Prototypes have generated 40 milliwatts in 10-mph slivers of wind, making his device 10 to 30 times as efficient as the best microturbines. Frayne envisions the Windbelt costing a few dollars and replacing kerosene lamps in Haitian homes.
Lots of developing world applications. Especially appreciate the ease of repair and maintenance. (as a director of a clean drinking water non-profit once told me: "it's not finding the technology that's a problem, it's fixing it. How do you fix something in the middle of the African bush with no tools, no electricity and no city within two hundred miles?")

More information is available directly on the Popular Mechanics link.

Thursday, November 29, 2007

Offshore Wind Power in Scotland

Article from WSJ re offshore wind opportunities off the coast of Scotland. Few points:

- considerable intersection between oil and gas interests and this plant. The project is being co-sponsored by a Canadian oil and gas company, the tripod base design was borrowed from oil rigs:

What gives Britain a potential edge in developing large-scale deepwater wind power is the nation's long history of offshore oil and gas. Discovered in the 1960s, the massive oil reservoirs of the North Sea have fueled Britain for more than 30 years and sparked a huge services boom, especially in places like Aberdeen, on Scotland's east coast. The oil there is running out, fast. "A hundred thousand people work in the energy sector here," says Paul O'Brien, head of the Renewable Energy Development team at Scottish Development International. "We're looking at renewables as a way of keeping people employed."

...

Being an oil and gas company also made it easier for Talisman to get Beatrice up and running. The company fast-tracked the permits needed to install its turbines by using its existing North Sea oil and gas operating license. That's because they'll initially be used to power Talisman's oil platform. Later, the company's rigs will serve as a base to maintain and monitor the wind farm, so Talisman won't have to decommission them -- a task that can cost millions of dollars.
- with costs at about $9/w to install, these would need to drop in half (with subsidies) and by two thirds (without) to be feasible as a larger-scale US energy resource.
So far it has cost $90 million -- or about $9 million per megawatt of installed generating capacity. By comparison, a gas-fired power station costs less than $1.5 million per MW installed to build.
- finally, worth pointing out the potential of Scotland's natural resources. Could be some interesting things happening in Scotland over the next 5-10 years:
[the companies] plan to ramp it up into a spectacular 200-turbine wind farm that would turn North Sea gales into enough electricity for a million people -- a fifth of Scotland's population. Completion is probably at least seven years away.

Scotland has around 25% of Europe's wind-energy resource and some of the continent's best potential wind, wave and tidal sites.

Wednesday, January 10, 2007

Experimental 'wind to hydrogen'

From NREL (National Renewable Energy Laboratory):

Xcel Energy and the U.S. Department of Energy’s National Renewable Energy Laboratory today unveiled a unique facility that uses electricity from wind turbines to produce and store pure hydrogen, offering what may become an important new template for future energy production.

Thursday, June 29, 2006

10 Technologies to Save Us

Expect to see a lot more of these...Popular Science has an interesting special section geared around various alternative energy technologies. The piece details how many different options we can explore:

1.) Wind - the price of wind energy has dropped 85% in the past twenty years. Imagine if this administration actually tried to help out.

2.) Enhance the energy grid's efficiency (ie, move smaller power generation closer to a source)

3.) Hybrid cars - if all American cars were switched to plug-in Hybrids, oil consumption would drop 70-90% overnight

4.) Ethanol - only this country could look to a process (corn) that makes things worse. Sugar, cellulosic, that's where we need to go

5.) Solar - two things need to happen - improve energy efficiency (currently only 15-30%) and make it portable (no, not watches)

6.) Hydrogen power - already twice as efficient as gas combustion engines

7.) Ocean - this was awesome. Portugal will soon start powering 15,000 homes; tidal currents are 10 to 40 times as energy dense as wind

8.) Geothermal - tap the earth's internal heat...although knowing us, we'll find a way to turn it off

9.) Biomass (waste) - 1500 cows can produce 1.8 million KW of energy

10.) Negawatts - turn out the lights when you leave the room dammit!!!