BIG UTILITY, BIG OIL TO BUILD BIG WIND
NewEnergyNews pop quiz -> What drives a powerful utility heavily invested in fossil fuels and a huge oil company to get into wind?
Answer: Renewable Electricity Standards (RESs)
Dominion and BP Alternative Energy are splitting costs and benefits of wind installations in Virginia and North Carolina because the wind is there and both states have RESs. The companies can therefore know 3 things: (1) It goes almost without saying that energy demand will inevitably rise; (2) The demand for New Energy is guaranteed by the RESs; (3) The natural resource (wind) is available.
Given those circumstances, even Big Utilities and Big Oil can see the business sense in making a move to New Energy. It's becoming more inevitable every day.
More states, including Ohio and Michigan, will soon be added to Renewable Electricity Standard (RES) honor roll. (click to enlarge)
Dominion & BP Announce Agreement to Jointly Develop Wind Farms in Virginia
April 21, 2008 (PR Newswire via Earth Times)
Dominion (Thomas F. Farrell II, chairman/president/chief executive officer), BP Alternative Energy North America Inc. (Bob Malone, chairman/president)
BP and Dominion will add Virginia and North Carolina to the list of states obtaining electricity from wind energy. (click to enlarge)
The companies will jointly develop wind energy projects.
- Virginia’s RES requires 12% of its power to come from New Energy by 2022.
- North Carolina’s RES requires 12.5% of its power to come from New Energy by 2021.
- BP Alternative Energy launched in November 2005
Virginia's coastal wind assets are worth developing. (click to enlarge)
- BP and Dominion have already partnered on the in-construction Fowler Ridge Wind Farm in Benton County, Indiana.
- The new agreement is on the building of wind installations in Virginia to serve Dominion customers in Virginia and North Carolina.
- Dominion and BP are 50% partners on 650 megawatts of the 750 megawatt Fowler Ridge installation. BP will retain sole ownership of 100 megawatts. The project’s first phase is expected to go online by the end of 2008.
- Dominion has a portfolio of ~26,500 megawatts of generation, including natural gas and oil reserves and supply, natural gas systems and storage system and serves retail energy customers in 11 states. It has ~1,300 megawatts of New Energy, including 750 megawatts of wind in Indiana, West Virginia and Illinois.
About BP Alternative Energy/BP America:
- BP Alternative Energy is involved in wind, solar, hydrogen power with carbon capture and storage, natural gas-fired power generation, biofuels for low carbon transport and distributed energy for emerging markets. It is one of the biggest wind developers in the U.S. (~100 projects, ~15,000 megawatts), has 5 new projects under construction (in California, Indiana, Kansas and Texas) and will have 1,000+ megawatts of wind in operation by the end of 2008. BP America is the largest producer of oil and gas in the U.S.
BP's Beyond Petroleum continues to grow. (click to enlarge)
- Thomas F. Farrell II, chairman/president/chief executive officer, Dominion: "Today's announcement is another important step in continuing to grow Dominion's portfolio of renewable energy projects -- which include more than 750 megawatts of wind in operation or under development -- to help provide for our customers' growing electricity needs. We are committed to meeting Virginia's…[and] North Carolina's goal[s] of…renewable energy sources…We look forward to our continued partnership with BP…"
- Bob Malone, chairman/president, BP Alternative Energy North America Inc.: "BP is rapidly growing its wind power portfolio in the U.S. and we are happy to be working again with Dominion…Wind is one of America's most abundant natural resources and we believe that turning wind into electricity should be a major part of the nation's drive to increase the use of alternative energy and reduce carbon emissions. Through investments like these…and through continued investment in our core oil and gas business, we are working to diversify and expand U.S. energy supply."