U.S. Utlility-Scale Solar 60% to Goal

Joanna Schroeder

The U.S. solar industry is more than 60 percent of the way to achieving cost-competitive utility-scale solar photovoltaic (PV) electricity – only three years into the Department’s decade-long SunShot Initiative, reports the U.S. Department of Energy (DOE). To help continue this progress, the DOE announced $25 million in new funding to strengthen U.S. solar manufacturing for photovoltaic and concentrating solar power (CSP) technologies and to maintain a strong domestic solar industry – supporting the Department’s broader Clean Energy Manufacturing Initiative.

Falling Price of US Utility Solar CostsThe U.S. is playing a growing role as a global leader in solar as demonstrated in a new industry report which recently found that U.S. utility-scale solar set a record with 2.3 gigawatts installed in 2013.  As a direct result of increased solar generation, over the last three years, the cost of a solar energy system has dropped by more than 50 percent, helping to give more and more American families and businesses access to affordable, clean energy.

“In just the last few years, the U.S. has seen remarkable increases in clean and renewable energy – doubling the amount of energy that we produce from solar and wind and supporting a strong, competitive solar supply chain that employs American workers in every state,” said Energy Secretary Moniz. “To continue this growth and position the U.S. as a global leader in clean energy innovation, the Energy Department is helping to advance new technologies that further reduce costs, improve performance and support new jobs and businesses across the country.”

In 2011, DOE launched its SunShot Initiative to make solar energy cost-competitive with traditional energy sources by the end of the decade. As a result of the program, today, the utility-scale PV industry is more than 60 percent of the way to achieving SunShot’s target of $0.06 per kilowatt-hour. In the United States, the average price for a utility-scale PV project has dropped from about $0.21 per kilowatt-hour in 2010 to $0.11 per kilowatt-hour at the end of 2013. According to the Energy Information Administration, the average U.S. electricity price is about $0.12 per kilowatt-hour.

Reductions in the cost of electricity are based on estimates of the levelized cost of electricity (LCOE). The LCOE is a measure of the national average of electricity cost based on certain assumptions regarding financing costs and generation availability projected over the life of a generating asset. The LCOE model provides a benchmark for measuring relative changes in electricity costs.

Alternative energy, Clean Energy, Electricity, Solar

Clean Energy for Resilient Communities

Joanna Schroeder

“Resilient communities need resilient power. Without dependable power, a community can be brought to its knees, and the most vulnerable will suffer the most,” was written in a new report, Clean Energy for Resilient Communities. Based on the success of Baltimore, the report is a blueprint for how a city could become more “power resilient” and details how cities use clean energy to create a more reliable electric system – especially during severe weather events.

To way to achieve this, finds the report commission by the Clean Energy Group (CEG), is to rely on proven distributed energy technologies like solar with energy storage to protect consumers during power outages.

Clean Energy for Resilient Communities“We have entered a new “normal” after Hurricane Sandy, where severe weather events are more frequent, leading to more power outages and increased risk to people and businesses,” said Lewis Milford, President of CEG and co-author of the report. “Last week over a million people in the U.S. lost power during damaging ice storms. Today, due to a record ice storm developing in the Southeastern U.S., hundreds of thousands of people have already lost power, with those numbers expected to rise. We need new strategies like distributed solar with energy storage to protect communities against the harmful effects of power outages. Relying only on the utilities to do the job is no longer safe or dependable.”

CEG said the report is the first in-depth review of national policies and finance strategies to use solar and energy storage to provide more power protection in an urban setting. The report finds that critical public facilities like hospitals, fire stations, gas stations, community shelters and schools should use more resilient power technologies to protect people during power outages. The report also recommends new business models and highlights the emergence of companies that now sell solar with battery storage services to customers– to address the overlooked problem of stand-alone PV systems not working during power outages.

The report recommends:

  • Deploy solar with storage at critical community and government facilities that serve low-income, disabled and elderly communities during emergencies.
  • Promote targeted public funds to increase the use of clean energy in those communities.
  • Use existing bond financing tools to finance solar projects in public and community facilities like schools, community centers and senior housing.
  • Address the existing legal obligations of government agencies under the Americans with Disabilities Act to provide electricity so the elderly and the disabled can fully access emergency services during power outages.
Clean Energy, Electricity, Solar

Rep. Loebsack Introduces Infrastructure Re-FUEL Act

Joanna Schroeder

Congressman Dave Loebsack (D-IA) has introduced the Renewable Fuel Utilization, Expansion, and Leadership (Re-FUEL) Act. The goal of the legislation is to create a competitive grant program to assist fuel retailers with investments in renewable and alternative fuel/energy sources. The program would be administered through the U.S. Department of Agriculture (USDA) and will help create new and retrofit existing infrastructure, including pumps for biofuels and hydrogen, tanks, piping and electric vehicle chargers. Loebsack points out that the legislation is already paid for and does not add to the deficit.

made in the usa“I believe in making things in America and there is no reason our fuel sources shouldn’t be made here as well,” said Rep. Loebsack. “It’s also important that consumers are able to choose where their fuel source comes from when they go to fill up. Too often, infrastructure constraints are cited as the reason for not giving consumers the choices they deserve. This holds back the development of our renewable and alternative energy sources that create jobs in Iowa and across the country.”

To be eligible for the grant, projects must be capable of dispensing fuel or energy currently not widely available. Projects can be new infrastructure projects or retrofits to existing infrastructure and can include infrastructure such as biofuel and hydrogen pumps, tanks, piping, and electric vehicle chargers. A minimum of 30 percent non-federal match is required and the maximum grant per year per entity is $100,000. In addition, the grant program covers infrastructure for renewable or alternative energy, which includes renewable energy, energy for charging electric vehicles, and hydrogen and fuel cells.

“I commend Congressman Loebsack for introducing legislation that supports America’s consumers, rural communities and growing biofuels industry,” said Tom Buis CEO of Growth Energy. “By supporting renewable fuel infrastructure, this legislation will help push our nation toward energy independence and give consumers some much needed choice and savings at the pump. This legislation also emphasizes the importance of investing in and revitalizing rural America.”

The Re-FUEL Act does not add to the federal deficit. The program would be paid for by setting aside 1 percent of offshore oil royalties each fiscal year. This amounted to about $54.34 million in fiscal year 2013 and $52.16 million in fiscal year 2012. In addition, no other required disbursements from natural resources accounts such as those for state sharing, reclamation fund, or Land and Water Conservation Fund will be affected.

“The pace at which the renewable fuel advantages will be available to American drivers is greatly sped up by the fact that the proposed grants can be used for infrastructure like new blender pumps as well as retrofitting existing pumps, pipes, tanks and chargers,” said Bob Dinneen, president and CEO of the Renewable Fuels Association. “Placing a priority on rural America is a welcomed approach. The small communities of rural America are amongst the most challenging locations for economic development. Rep. Loebsack recognizes that ethanol production has created and supports over 386,000 jobs with very real potential to expand on that success.”

Alternative energy, biofuels, Electric Vehicles, Growth Energy, Hydrogen, Legislation, RFA

Biodiesel Giant Gets Into Petroleum Distribution

John Davis

REG LogoThe country’s biggest biodiesel maker is getting into the petroleum distribution business. This news release from Renewable Energy Group (REG) says it has launched a new division that will sell petroleum-based heating oil and diesel fuel, which will also give the company a chance to offer more biofuel blends.

REG Energy Services, LLC will sell heating oil and ultra-low sulfur diesel (ULSD) at seven terminals throughout the northeastern U.S. as well as BioHeat® blended heating fuel at an existing REG terminal location.

“REG Energy Services complements our advanced biofuel business as we optimize and grow our fully integrated biodiesel business across North America,” said REG President and CEO, Daniel J. Oh. “It allows us to offer more products to our customers, including more biofuel blends, while also expanding our customer base.”

The new company will be regionally headquartered in Portsmouth, New Hampshire and led by Barry Knox, a long-time downstream petroleum distribution specialist. Before joining REG, Knox served the last 14 years as Chief Operating Officer at Total Energy Solutions, LLC. Knox just completed his term as a board member of the New England Fuel Institute (NEFI), and the Massachusetts Energy Marketers Association (formerly MOC), and was also a board member of the National Oilheat Research Alliance (NORA).

REG Energy Services is now offers heating oil and ULSD at several terminals in New England and has BioHeat in up to 20 percent biodiesel blends at REG’s location at the Clifton, NJ Dutch Hill terminal.

Biodiesel, REG

Heliae Algae Techology Headed to ASU

Joanna Schroeder

Heliae’s algae production technology is heading to Arizona State University’s (ASU) algae testbed facility. The company is partnering with SCHOTT North America to install a Helix photobioreactor at ASU’s Department of Energy (DOE)-funded algae testbed facility.

Over the next several years, algae research staff at ASU will leverage the Helix photobioreactor, built by Heliae, for pioneering research that will forward the understanding of algae production technology, including an investigation into the effect of glass tubing innovation on the yields and economics of algae production. The reactor will also deliver the production of high-quality algae cultures, which will support broader ASU algae operations.

azcati_testbed_facility_at_asuThe DOE-sponsored testbed at ASU is part of the Algae Testbed Public-Private Partnership (ATP3), a network of algae industry leaders, national labs, and research facilities. Led by ASU, ATP3 enables both researchers and third party companies to succeed in their algal endeavors by providing a national network of testbed systems and other services, such as research and education.

Over the course of the multi-year research plan, ASU will manage Helix operations and research, while Heliae and SCHOTT will support the project in an advisory capacity.

“To develop world-class technology, it’s essential to partner and collaborate with the best innovators in the industry,” said Dan Simon, Heliae’s president and CEO. “For glass innovation, there is no equal to SCHOTT, and the interactions between Heliae’s and SCHOTT’s research and development teams over the years have helped both companies develop world-class technology that will truly enable this industry.”Read More

advanced biofuels, algae, Research

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFNew analysis from Frost & Sullivan, Power Infrastructure Tracker in East Africa, finds that the demand for electricity in East Africa is expected to grow at approximately 5.3 percent per year till 2020. To meet these requirements, generation capacity would have to increase by 37.7 percent in Uganda, 96.4 percent in Kenya, 75.3 percent in Tanzania and 115 percent in Rwanda.
  • Calling it “critically important,” the Solar Energy Industries Association (SEIA) applauded “commence construction” legislation introduced by Sen. Michael Bennet (D-CO) and Sen. Dean Heller (R-NV). Their bipartisan legislation would allow America’s solar energy companies to make full and effective use of the Investment Tax Credit (ITC). The bipartisan legislation would allow companies to qualify for the ITC if their projects are under construction before the law’s expiration date at the end of 2016.
  • Clean Energy Pipeline, the specialist online financial news, data and research provider, is currently compiling data for inclusion in its fifth annual global renewable energy M&A report, and is seeking insight from key industry stakeholders. The 2014 report will explore a number of themes, including how M&A activity will evolve over the next 18 months, how valuation multiples have fluctuated, the availability of financing for M&A transactions and the potential impact of policy change on the global renewable energy market.
  • The Sierra Club has released a new report, “Workers, Communities, and the Clean Energy Economy,” laying out a vision for workers in the transition to a clean energy economy. The report highlights opportunities brought on by the exponential growth of clean energy sources like wind and solar; calls for a just and fair transition for workers and families as communities transition from fossil fuels to clean energy; and focuses on the shared vision between working families and environmentalists for a healthier, safer, and more prosperous future.
Bioenergy Bytes

Albion Community Power Invests in Wind

Joanna Schroeder

Albion Community Power (ACP) has invested £1.5m in partnership with Welsh developer Infinite Renewables to fund the development of a 500kw single wind turbine in Blaencilgoed, in South Wales. The wind turbine, which is the first investment made by ACP, will supply electricity to a local quarry. It is expected to begin producing power in September 2014 and is estimated to generate over 1,700,000 kWh of electricity per year.

albion community power windACP says it aims to be a major producer of community scale renewable energy by raising up to £100 million in due course to power some 35,000 homes, targeting sites where power can be sold to the community at a discount of up to 50 percent. The ACP team will invest in a range of renewable energy projects using proven technologies including brownfield wind, solar, hydroelectricity, biogas and biomass.

Volker Beckers, Chairman of ACP said, “The energy industry is changing, and smaller scale schemes will be playing an increasingly important role. We are excited by our first investment and are looking forward to backing other new projects in the coming months.”

ACP’s projects will qualify for government subsidies such as Feed in tariffs (FiTs). As FiTs are RPI-linked, the company says investors stand to benefit from protection against inflation. To date, Albion has made 10 investments that are currently achieving an investment return of 11%.

“We have an existing partnership with Albion Ventures, having built a number of turbines together starting with a single mast, 500kW Wind Turbine on a brownfield site near Ebbw Vale in Wales,” said Will David, Infinite Renewables. “We are excited to be partnering ACP on this new project, which plays to our collective strengths. We look forward to developing many more sites with ACP going forward.”

Alternative energy, International, Wind

Keep Our Tax Breaks: We Only Make $93B in Profit

Joanna Schroeder

Dear Congress,

Please keep our millions of dollars in tax breaks in place. We only make $93 billion in collective profit per year. This is not enough money to operate our businesses and overcharge our customers. We’re sure you will make the right decision.

Yours truly,

Big Oil

This is what a letter to Congress might look like from Big Oil who according to a report from the Center for American Progress, made a combined profit of $93 billion in 2013. The total is for five big oil companies: BP, Chevron, ConocoPhillips, Exxon Mobil and Shell. Despite this ridiculous amount of revenue (these companies made $177,000 per minute), they are fighting to keep their tax breaks in addition to lobbying to lift the crude oil export ban.

The five Big Oil Brothers actually increased total production in 2013 most due to BP and ConocoPhillips in essence single handedly doubling production. Although production went up, profits went down because it is becoming more expensive to extract oil. It is this change that is causing the oil industry to argue they need their tax breaks to continue.

What is staggering is that the $93 billion profit is down nearly 27 percent from 2012. In addition to higher cost of production, the average price of gasoline in 2012 was 16 cents less per gallon than the previous year.

It would not be surprising, write Daniel Weiss and Miranda Peterson, both with Center for American Progress, “if the big five oil companies use their 2013 decline in profits as another excuse to pressure Congress to retain their $2.4 billion-per-year tax breaks. The largest of these special provisions, they write, allows these companies to qualify for the “limitation on section 199 deduction attributable to oil, natural gas, or primary products, which will cost taxpayers $14.4 billion over 10 years. This according to the Congressional Joint Committee on Taxation. This particular tax break was enacted in 2004 and was designed to encourage manufacturing to remain in the United States rather than move overseas. It was not meant to apply to oil and natural gas production since the oil and gas fields cannot be moved to another nation.Read More

Oil, Opinion, Video

DuPont: “Future Fuel” Cellulosic Ethanol Here Today

John Davis

Steve MirshakCellulosic ethanol is not just a fuel of the future; it’s here today. And at the recent 8th Annual Iowa Renewable Fuels Summit held in Altoona, Iowa, Steve Mirshak from DuPont’s cellulosic division talked with Joanna about what this fuel will soon bring.

“This is a real fuel,” Steve said, pointing out that DuPont is on track to commercializing the world’s largest cellulosic ethanol facility in Nevada, Iowa this summer… a project worked on for nearly 15 years and will produce 30 million gallons a year. He went on to say that cellulosic ethanol has zero net carbon emissions, contributes to energy independence, and is great for economic development. Plus, Renewable Fuel Standard (RFS) goals are being achieved today. “This is the second generation [of biofuels]. It’s here. We’ve been talking about it for a long time, and in 2014 it’s here.”

Steve said, though, the only thing that could stop the momentum now seems to be the Environmental Protection Agency’s (EPA) proposal to cut the amount of ethanol and biodiesel to be blended into the Nation’s fuel supply.

“Clearly the policy debate in the United States is dampening investors’ commitment to build out this industry. We don’t need [our leaders in Washington] to change anything. We need Washington to reinforce their commitment to the [RFS]. With stable policy, we’ll see rapid growth [in the advanced biofuels industry], and we’ll meet the bi-partisan goals Congress already passed,” Steve said.

Listen to Joanna’s interview with Steve here: Steve Mirshak, DuPont

View the 2014 Iowa Renewable Fuels Summit photo album.

Audio, Cellulosic, Ethanol, Ethanol News, Iowa RFA

Biodiesel Subsidiary Gets Credit Line for Hemp

John Davis

Cannabislogo1A biodiesel subsidiary has just received a line of credit to buy land to grow hemp … just as the company completed its first mobile hemp-to-biodiesel production unit. This article in Biodiesel Magazine says Extreme Biodiesel Inc.’s subsidiary XTRM Cannabis Ventures received the $5 million line of credit.

XTRM plans to use the credit line for purchasing real estate for the purpose of hemp cultivation, medical marijuana cultivation and commercial real estate related to dispensaries so long as its use is deemed legal.

Company President Joseph Spadafore stated, “Extreme has already identified several properties that we feel fit the company’s needs. We also want to assure investors that this line of credit does not involve a debt conversion or anything that can be converted to XTRM stock.”

The company also announced that XTRM Cannabis Ventures has just completed assembly of its first mobile hemp-to-biodiesel production unit.

The article goes on to point out that the recently signed Farm Bill helped make this happen, as some longstanding restrictions on the growth of cannabis/hemp are being lifted. Hemp seeds are seen to have a similar oil content as canola and other seeds but a better cloud point and cetane value.

Biodiesel