MORE NEWS, 10-15: TRES AMIGAS TO LINK NATION; ALGAE EMERGING SLOWLY (OR NOT?); LOCKHEED MARTIN INTO THE WAVES; NEBRASKA GETS INTO THE WIND

TRES AMIGAS TO LINK NATION
Drive to Link Wind, Solar Power to Distant Users; Proposed Station Would Connect Separate Grids, Enabling Electricity Generated in Remote Sites to Reach a Wider Market
Rebecca Smith, October 13, 2009 (Wall Street Journal)

"A new proposal to build a transmission link to connect the nation's three major electricity grids -- Eastern, Western and Texas -- is generating interest among energy policy makers because of its potential to accelerate development of renewable energy…[The] Tres Amigas "superstation," to be built at Clovis, N.M., would bring a major change to the U.S. electricity infrastructure by improving connectivity…

"The lack of interconnectivity is becoming a larger problem as the nation adds more solar and wind energy… in remote areas [that] needs to travel to distant population centers, which is problematic under the current setup…Greater connectivity among the grids could open up the market for some renewable-energy developments because the electricity could be sold across a wider region or moved to where it is most needed."

The Tres Amigas (click to enlarge)

"The substation is being proposed by Tres Amigas LLC…[It] could cost $1 billion or more. The location is key -- it would be less than 100 miles from substations in the grids to which it would connect electrically…Some energy officials who have been briefed on the project are intrigued because it could enable more power-generating resources to get built…[Former Federal Energy Regulatory Commission (FERC) Chair Patrick Wood III approved of the idea and current] FERC Chairman Jon Wellinghoff [found the idea interesting and creative, said FERC will study it and wants more such ideas but said] it was too early to endorse the project…New Mexico Gov. Bill Richardson, an energy secretary under President Bill Clinton, also supports the project…Public Service Co. of New Mexico has more than 7,000 megawatts of proposed wind generation in its footprint that could benefit from the Tres Amigas project.

"The project still is in an early stage and could unravel if it is unable to obtain financing. It also faces regulatory hurdles, since the FERC is being asked to waive jurisdiction over power sales in and out of Texas. Because Texas removed most electrical connections to other states decades ago, most of its wholesale power sales aren't subject to FERC regulation."

The Missing Link? (click to enlarge)

"The proposed substation, functioning like a traffic roundabout, would use [5,000 megawatt capacity superconducting cable…The Tres Amigas substation would use novel technology to solve a basic problem: that power can't easily flow among the three grids because they aren't synchronized. It would convert the alternating current of each region into a common direct current. Then it would convert specific electrons back into alternating current to match the grid to which the electrons were destined…

"It isn't just renewable energy that could be moved across grids…With the superstation in place, more [coal-fired] power plants could be built closer to the mines…[T]here could be opposition. Not everyone is unhappy that electricity sometimes gets bottled up due to lack of transmission. For example, in West Texas, power prices sometimes tumble to almost nothing when there is an excess of wind power. If that power had another outlet, prices could rise and eliminate an advantage for local buyers of electricity…Of course, if companies sell power for higher prices, they may be more likely to develop additional wind or solar resources."


ALGAE EMERGING SLOWLY (OR NOT?)
Algae Energy Orgy; Scum artists: The false promise of algae-fuel companies
Emily Waltz, September/October 2009 (Mother Jones)

"…Adam Freeman graduated last December from Kennesaw State University…with a degree in biochemistry…[and] set out on an algae road trip…[H]e realized that the industry wasn't what it purported to be. No one actually seemed to be producing oil…[T]he algae industry's slimy secret: Some companies have promised impossible amounts of oil…raising millions from unwitting investors…Biofuel experts say…in the next three to five years, an acre of algae can theoretically yield as much as 5,000 gallons of oil annually—enough to fuel about 10 cars for a year…[while] the current yield for corn ethanol is about 400 gallons per acre. Yet ethanol sells for about $2 a gallon, while making algal oil is still so prohibitively expensive that the algae companies have produced only a few dozen gallons of it.

"Not one algae company has a commercial-scale system…[M]ost haven't moved out of the lab…A concerted effort to study algal fuels started in 1978 at the National Renewable Energy Lab in Golden, Colorado. The $25 million program, which laid the groundwork for much of the current research, shut down in 1996, in part because algal oil couldn't compete with the low cost of crude. But entrepreneurs pounced when fuel prices jumped in 2006…Today there are an estimated 200 algae companies worldwide."

Hype or hope? (click to enlarge

"…[T]urning [algae] into fuel seems so straightforward…[D]eprived of nutrients, they stop growing and put their energy into storage, often in the form of natural oils called lipids. These oils can be refined into just about any kind of fuel…Algae have the potential to produce 10 times more oil per acre than common biofuel crops…Production can be done in open ponds or enclosed, transparent bioreactors; on swampy land and in salt water; and without competing with food crops. Algae can even suck carbon dioxide from industrial emissions pumped directly into their ponds, while plants have to absorb it from the air…But with simple technology come simple limits…

"Pitching an algae company on inflated numbers is surprisingly easy…[W]hen people ask to see your facility, tell them it's top secret…Concerns about the hype haven't discouraged major investors. In July, petroleum giant ExxonMobil, once famous for scoffing at biofuels like ethanol, announced it would invest $600 million in algae technology…[and the] Department of Energy plans to devote $50 million of its stimulus funding to an "algal biofuels consortium" aimed at bringing together public sector labs like Sandia with private companies. As much as another $200 million, subject to congressional appropriations, will be divided among 5 to 12 groups with proposals for biorefinery projects. Algae companies are eligible…[One] top DOE biomass researcher, is aware of the industry's murky claims, but his fellow researcher [sees great potential]…"

The company's claim for algae's per acre yield is more conservative than the Department of Energy's research findings. (click to enlarge)

"…Valcent Products [says it]…can produce 100,000 gallons of oil per acre per year…SunEco Energy…claims it will be able to produce more than 33,000 gallons per acre per year based on a pilot operation with the volume of a large backyard swimming pool. It also claims that it will make fuel for close to $20 a barrel…But [thwe Sandia Labs scientist] estimates the actual cost of algae fuel at $420 to $840 a barrel…GreenFuel Technologies was founded in 2001…[and] insisted it could produce oil at the equivalent of more than 44,000 gallons per acre per year. Venture capitalists ponied up more than $33 million between 2005 and 2008…GreenFuel's pilot project proved twice as expensive as projected, and the company folded in May…

"Whether the algae charlatans will be exposed before the DOE sinks taxpayers' money into their companies is another question. Curtis Rich, a renewable energy attorney, says he believes the DOE's review teams will [distinguish between sound and unsound companies]…But [it was fooled by GreenFuel Technologies]…As for [Adam] Freeman, he has concluded that instead of joining up with an existing algae company, he's better off starting his own. The way he sees it, there isn't a lot of real competition out there."


LOCKHEED MARTIN INTO THE WAVES
Ocean Power Technologies and Lockheed Martin Developing Utility-Scale Wave Power System
October 13, 2009 (PR Newswire via Reuters)

"Lockheed Martin…and Ocean Power Technologies, Inc. (OPT)…have signed a commercial engineering services agreement to develop OPT's wave energy systems for use in future utility-scale power generation projects.

"…Lockheed Martin will provide its expertise in systems integration, lean manufacturing, and test and optimization analysis to enhance OPT's innovative PowerBuoy® wave power generation technology to utility-scale…This critical step will allow the two companies to pursue future utility-scale power generation projects in North America…"

PowerBuoy (click to enlarge)

"OPT's proven PowerBuoy technology uses "smart" buoys, based on integrated patented hydrodynamics, electronics, energy conversion and computer control systems, to capture and convert energy from the natural rising and falling of waves into low-cost, clean electricity. The generated power is transferred ashore via an underwater power transmission cable. A future 10-Megawatt utility power station comprised of floating PowerBuoy systems would occupy approximately 30 acres (0.125 square kilometers) of ocean space. Such a plant would generate electricity for approximately 4,000 homes…"

click to enlarge

"In addition to its collaboration with OPT, Lockheed Martin is addressing the nation's energy and climate challenges with work in areas including next-generation alternative energy, energy efficiency, energy storage and climate monitoring…

"Ocean Power Technologies, Inc. is a pioneer in wave-energy technology that harnesses ocean wave resources to generate reliable, clean and environmentally-beneficial electricity…Lockheed Martin is a global security company that employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2008 sales of $42.7 billion."


NEBRASKA GETS INTO THE WIND
New Nebraska group forms to cash in on wind energy
Nate Jenkins, October 13, 2009 (AP)

"Two of Nebraska's largest agriculture groups have joined forces to make sure farmers and ranchers get a fair shake in wind-energy deals and to break down barriers they say stymie development of big wind farms.

"…[The] Nebraska Energy Export Association…[includes] the Nebraska Farm Bureau and Nebraska Cattlemen…So far, they have been largely silent in the debate over how to make Nebraska a bigger player in the burgeoning wind-energy field but are now getting involved as wind energy increasingly poses both opportunities and problems for their members…[The association] will try to bring farmers and ranchers whose land could hold wind turbines and transmission lines into the discussion over wind energy and position them to benefit from a wind-energy market should one blossom…"

click to enlarge

"The interests of farmers and ranchers are varied and not all focused on increasing Nebraska's presence in the wind-energy market…Helping farmer and ranchers deal with wind-energy developers who sometimes pit farmers against each other as they try to get the cheapest lease rates they can to put turbines on farm and ranch land will be one goal of the new association…The demand for good advice is not as great as one might expect in a state known for its vast, wind-swept plains."

This Colorado scene could be Nebraska someday soon. (click to enlarge)

"The association cited a Harvard University report that says Nebraska ranks fourth among states in wind-energy potential. In actual wind-energy production, Nebraska ranks 22nd…[largely because] Nebraska is the only state where all electric customers are served by publicly owned utilities…The state's public-power districts have been slow to invest in wind power because [they are not eligible for federal incentives and therefore wind] is more expensive than generating electricity with coal…

"…[The new association] will try to topple wind-energy barriers so Nebraska can compete should an export market for wind energy develop…[The association will address] the lack of a public-private financing mechanism to help build transmission lines so wind energy could eventually be exported out of Nebraska…[but will not call for] using revenue from public-power bills to build transmission lines estimated to cost billions of dollars…"