Renewable Energy Appears Likely to Steal Market Share from Coal
ICF Energy Study Sees Significant Shift to Renewable, Gas, and Nuclear Energy Sources
Coal-fired Facilities to Retire, Bottom-line Generation Costs to Rise
BusinessWire, July 2010
FAIRFAX, Va.–(BUSINESS WIRE)–ICF International’s newly released, second quarter Integrated Energy Outlook projects a significant shift to renewable, gas, and nuclear sources of energy should new carbon legislation be passed by the U.S. Congress.
Energy experts at ICF International (NASDAQ:ICFI), a leading provider of consulting services and technology solutions to government and commercial clients, foresee the retirement of a substantial number of coal-fired electric generation facilities because Hazardous Air Pollution (HAPS) regulations will require large capital outlays for pollution control equipment.
“Uncertainty has become a constant in the energy industry in the wake of unstable commodity prices, price volatility, and looming environmental regulations,” said John Blaney, senior vice president for ICF International. “The ICF Integrated Energy Outlook provides thorough analysis by energy experts and gives guidance that makes sense of the complicated energy landscape.”
The latest version of ICF’s quarterly Integrated Energy Outlook seeks to answer the key industry questions of whether energy market prices will continue to recover or slip back to 2009 levels, and how energy prices and new regulations will influence power markets.
Key findings of ICF’s second quarter Integrated Energy Outlook include:
- The CO2 allowance price ceiling will be binding in some, but not all, years should Congress pass the Kerry-Lieberman American Power Act.
- HAPS regulations will require large capital outlays on pollution control equipment and the retirement of a substantial amount of coal-fired electric generation capacity.
- Robust growth in gas demand will apply upward pressure on natural gas prices.
- New combined cycle generating capacity will not be economically viable over the next five years, although the timing varies across regions.
- California’s Renewables Portfolio Standard may be the most aggressive in the country, but the sheer size of the PJM Interconnection market contributes to greater overall renewable energy demand.
- Coal prices are expected to rise in the near term because of growing domestic and international demand.
Greenhouses Embrace Alternative Energy Sources
[Viability is able to work with greenhouses to secure financial incentives for biomass heating systems]
Fueling a Movement
By Kevin Yanik, Associate Editor
Greenhouse Grower magazine, February 2010
Fuel oil prices were becoming too expensive and natural gas wasn’t an option because it was not being piped into the area. So Grower Direct Farms, a wholesale greenhouse operation in Somers, Conn., began looking seriously at alternative energy sources for its facilities more than a year ago.
Wind. Solar. Geothermal. The list of energy source options available stretched beyond the fossil fuels growers historically had used. Renewable resources were becoming more viable, Grower Direct Farms found, and the more growers were gravitating toward them the closer newer options were to becoming mainstream.
For Grower Direct Farms, biomass was the renewable resource of choice and wood chips became its fuel. Now, the operation primarily uses wood chips to heat its greenhouses, and fuel oil is its secondary source. And like most growers who’ve moved to alternative energy systems, Grower Direct Farms largely made the transition because of rising fuel costs.
“Energy is one of the most important areas of our business in terms of the cost of our product,” says Sam Smith, sales manager at Grower Direct Farms. “Not just in the way we heat our greenhouses, but the fuel we put in our trucks to move our product, the electricity we consume to light the product we grow and just to do basic things like run our offices and computers.”
Heating greenhouses is one of a grower’s most costly expenses, though. And the more burdensome fossil fuel costs get, the more growers are turning to alternative energy solutions.
“Energy usage has been and will continue to be an area of concern for growers,” says Randy Monhemius, an Ohio-based business program specialist for USDA’s Rural Development program. “I believe growers are looking to save money, or at least manage costs better through the installation of energy-efficient improvements or renewable energy.”
From Propane To Wood [thumbshot url=http://greenhousegrower.com/magazine/?storyid=2969]
Rick Webb, owner of Webb Perennials in Logan, Ohio, was one grower looking for cost savings when propane approached $2.50 a gallon last year. Propane simply isn’t affordable for his small operation when it’s over $2 a gallon, Webb says, so he sought relief in the form of biomass.
Nearby Hocking College hosted a biomass workshop that introduced different systems to him. Webb got a few ideas, did some research on his own and tried to determine which wood form would produce the best, most-efficient heat for Webb Perennials.
“I’ve done a fair amount of research looking at different options,” Webb says. “The (wood) chip system would have been nice if my operation was a little bigger. I was looking at a system but then we got up to like $120,000 potentially and I still didn’t have a front-end loader to handle them.”
Eventually, Webb settled on logs and he installed a wood gasification boiler to accommodate them. His system is not automated – he loads logs into the boiler by hand – but automation did not make financial sense for Webb because he only needed to heat a facility that’s less than a half-acre.
“I live in an area where there’s a lot of firewood,” he says. “It’s Southeast Ohio – 90 percent forested area. There is a lot of firewood available. By the time I finished and built a barn to store wood, I only put $32,000 into it.”
Midway through the process, Webb Perennials was awarded an $8,000 USDA Rural Energy for America Program (REAP) grant. It ultimately paid for one-fourth of Webb’s system.
Now that Webb’s system is up and running, he’s using wood as his primary fuel with propane as the backup.
“If I don’t get out in time to stoke the wood boiler, the propane kicks in,” Webb says. “I’ve used 300 gallons of propane (as of January 5) and I probably would have used 3,000 gallons so far. I have my wood delivered and split. We stack it here. And I’ve figured the equivalent to 3,000 gallons in propane costs $1,000 in wood.”
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Trade Pub Calls 2009 ‘Year of Greenhouse Sustainability’
ANLA: The Pursuit of Green
Bob Dolibois, Grower Talks
December 2009
There’s a lot about this year that’s worth forgetting … and the sooner, the better! However, there is one aspect of this year that deserves closer examination: 2009 was the year our industry discovered sustainability.
Some early-adopters in our industry can already speak from experience about embracing sustainability in their businesses. But let’s be honest: For most of us, this sustainability thing has just started earning our attention.
The signs of that attention are all around us. The trade press has delivered yard of type on the subject, with blogs arriving weekly. Associations like ANLA now feature education sessions on the topic. “The Pursuit of Green” has all the makings of a double entendre in every corner of horticulture.
So, how we doin’? Is sustainability shaping up to be the life preserver for an industry struggling with a shrinking market? Or is sustainability a Trojan horse delivered by the greenies bent on eliminating every blade of turf and hyper-thirsty bedding plant in our galaxy? Answer: it’s too early to tell. But let’s score the match so far.
Renewable Energy Conversions. Informed people are aware of multiple businesses that have converted from 20th century energy sources to newer 21st century approaches like wind, solar and biofuel. Neat stuff! The savings are sometimes startling, and certainly a reason to take a look.
At the same time, can something this good last forever? In most cases, the single-most significant positive factor is the size of the grant or tax credit that’s awarded for making the conversion. Given the economy and stressed budgets of governments providing these grants and credits, it’s practical to assume that these incentives aren’t going to be around forever. So move quickly.
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Emissions and Corporate America
Businesses in U.S. Brace for New Rules on Emissions
By Jad Mouawad
The New York Times, Nov. 25, 2009
The nation’s corporations have long been bracing for the day when they would be required to carry out sharp cuts in the emissions that cause global warming. That day seemed to move a bit closer on Wednesday, when President Obama outlined a national target for such reductions.
Much of corporate America has already been thinking about how to comply. Many businesses concluded years ago that such limits were inevitable, and they have been calling on Congress to define the exact rules they will need to follow.
Already, many companies are recording their emissions and analyzing the results. Some have set voluntary targets for reductions and are claiming substantial progress in meeting them. Sustainability — a notion mostly heard in environmental circles only a decade ago — has become a mainstream idea to which some companies are committed and many are paying lip service.
Major corporations, including General Electric, the Ford Motor Company and PepsiCo, have teamed up with environmental groups to set up the United States Climate Action Partnership, a wide-ranging coalition trying to find ways to cut emissions throughout the economy.
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New Job Efforts May Include Growing Solar with Tax Credits
Tax credits eyed for solar energy firms amid Obama’s push for ‘green jobs’
By Ben Geman
The Hill, Nov 18, 2009
Solar energy companies are lobbying for new tax credits for domestic manufacturers that would come on top of subsidies included in the $787 billion stimulus package enacted earlier this year.
The effort is unfolding alongside the Obama administration’s push to spur “green” jobs by expanding this kind of manufacturing.
For instance, the Energy Department provided a $535 million loan guarantee to a solar panel maker this year, and is also helping finance expansion of a wind turbine plant.
The administration argues the U.S. is falling behind other countries in its capability to produce such materials.
Capitol Hill Democrats, meanwhile, are vowing new jobs legislation that backers might eye as a vehicle for the new tax credits for solar panel components.
“If Congress does, because of high unemployment, pass a jobs growth bill, the manufacturing tax credit is a perfect fit,” said John Stanton, a lobbyist for the Solar Energy Industries Association.
“The sole purpose of the bill is to create new jobs,” he said.
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Alternative Energy a Michigan Solution, Now?
Michigan businesses making strides in the alternative-energy industry
By Olivia Pulsinelli
West Michigan Business Review, Nov. 12, 2009
Whether for environmental or economic reasons, the country and the state have paid a lot of attention to alternative energy in the past few years.
A recent study conducted by professors from the University of California-Berkeley, the University of Illinois and Yale University, said adopting comprehensive clean-energy and climate-protection legislation, like the American Clean Energy and Security Act, could create as many as 1.9 million jobs nationwide and between 37,000 and 42,000 in Michigan.
The study, “Clean Energy and Climate Policy for U.S. Growth and Job Creation,” reported a likely growth in real GDP and average real household income, as well.
Birgit Klohs, president and CEO of The Right Place Inc. in Grand Rapids, said Michigan definitely will see job creation from the alternative-energy industry, but maybe some types more than others.
“Our strategy at The Right Place is pretty much a twofold strategy,” Klohs said. “One, help your existing manufacturers diversify into this industry if, in fact, they have the capabilities.
“And two, look at where the supply chain is, and if we’re missing key pieces in the supply chain, find companies that can fill in the blanks.”
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Clean Rwandan Water Thanks to Carbon Credits
Astronaut Targets Drinking Water in Rwanda — and Carbon Credits for Revenues
By Ciara O’Rourke
New York Times, Green Inc, Oct. 20, 2009
In keeping with the rising tide of businesses tapping into potentially lucrative markets at the bottom of the economic pyramid, Manna Energy is seeking to turn a profit — someday — by bringing safe drinking water to Rwandan schools.
The startup, which is headquartered in Houston, is currently providing solar-powered water purification systems — which filter rainwater with sand and ultraviolet light — at several secondary schools in Rwanda. In the initial phase, the systems, which cost $50,000 a piece, are subsidized by $1 million in grants from the Coca-Cola Foundation and the Global Water Challenge, a business coalition based in Washington.
But the company’s larger goal is to sell carbon-reduction credits, and use the revenues to expand its operations.
Manna is waiting for the approval of a United Nations board to generate the carbon credits under the Clean Development Mechanism, a provision of the Kyoto Protocol that encourages projects in developing countries that reduce pollution (the company’s purification systems help to curtail the significant emissions arising from burning wood, which is used to boil water).
Industrial polluters elsewhere in the world can then purchase those credits to offset their own carbon footrprints.
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Higher Ed Making the (Green) Grade
Colleges: Less Green in the Bank, More Green on Campus
New portal allows universal access to sustainability data from 332 schools
[Information from Sustainable Endowments Institute's Oct. 7 press release, Mark Orlowski]
Despite budget-breaking investment losses and widely fluctuating energy costs, many schools became greener during the last year, earning higher grades on the College Sustainability Report Card 2010. Released on the new GreenReportCard.org website by the Sustainable Endowments Institute, a special project of Rockefeller Philanthropy Advisors, the annual publication provides school profiles and grades along with exclusive insights about sustainability in higher education.
More than 95 percent of participating institutions agreed to share the inner workings of their green practices, resulting in over 10,000 pages of detailed data and descriptions. Overall, the College Sustainability Report Card has the highest response rate of any college sustainability ranking or rating.
Grading the schools entailed researching publicly available information, conducting surveys of appropriate school officials, and assessing performance with 120 questions across 48 indicators in the following 9 categories: Administration, Climate Change & Energy, Food & Recycling, Green Building, Transportation, Student Involvement, Endowment Transparency, Shareholder Engagement and Investment Priorities.
Viability staff’s alma maters were featured:
Grand Valley State University – B
Hope College – C+
Northwestern University – B-
Ohio State University – B
Michigan State University – B
Click here to Read Full Article and find other rankings
Venture Capitalist: Michigan primed for economic recovery
Five One-Way Tickets to Michigan, Please
By: Jeff Bocan
The Huffington Post, September 23, 2009
As a venture capitalist in sunny (and smug) Santa Monica, who happened to often travel to Michigan, I’d heard every possible joke and put-down about the Michigan economy (you know, how it’s cheaper to buy a foreclosed house in Detroit than a decent used car, but at least you can live in the car if you have to, ha ha ha.) Well, I’m not laughing any more. This summer, I decided to move my wife and three little kids away from the sunny beaches and new media millionaires of Southern California to — you guessed it — Michigan.
Yup, we bought a one-way ticket to Michigan. Five of them, actually.
What was I thinking? Don’t worry, you’re not the first to ask. For several months I’ve been explaining my decision to friends, family and work colleagues. Why walk away from good weather and a sweet gig investing in new media companies for a cold, Rust Belt state that’s been hemorrhaging jobs and hope for decades?
Quite simply, because I believe it’s a hell of an opportunity — despite the jokes, the put-downs, or the perceptions of Detroit as a lost city — I wouldn’t be moving to Michigan if I didn’t.
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Lower Prices, Lower Carbon, too? Walmart examines sustainability
Walmart Sustainability Index Means Big Business
By Tilde Herrera
Greener World Media and Reuters, Sept. 24, 2009
Some of Walmart’s top suppliers in the U.S. will begin sharing their environmental impact data with the world’s largest retailer next week.
Oct. 1 marks the official start of the first phase of Walmart’s Sustainability Index. That’s when “top-tier” consumer product companies must return to Walmart a 15-question assessment form (PDF) with details about their carbon footprint, resource use and ethical business practices.
While many large suppliers have tracked this data for years, some estimate the prepared few represent just 10 percent of the roughly 100,000 global companies who sell to Walmart.
Walmart’s sustainability assessment offers both a huge business opportunity and a potentially huge environmental business. Walmart suppliers will likely find opportunities to wring inefficiencies from their operations through the process of assessing their environmental footprints, while a bumper crop of consulting and accounting firms is springing up to help suppliers navigate the journey.
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