China's Global Quest for Oil
|Cindy Hurst||September 1st 2008|
Cutting Edge Energy Desk
China’s influence in Africa is extending to Nigeria, a country that has historically exported the majority of its oil to Western countries. In Nigeria, the majority of the exported oil is currently destined for the U.S. and Western Europe. China, however, is becoming increasing important to the African country.
Over five years ago, China had been shut out of Nigeria by Western firms. However, through patience, political prowess, and technological contributions, Chinese firms are gaining a foothold in the Nigeria’s oil industry and elsewhere in the country. For example, in December 2004 Sinopec and NNPC signed an agreement to develop Oil Mining Lease (OML) 64 and 66, located in the waters of the Niger Delta in South Nigeria. At the time, OML 64 had drilled five exploration wells with one well encountering hydrocarbon resources. OML 66 had drilled 18 exploration wells with 12 encountering hydrocarbon resources.
In October 2004, Xinhuanet reported that Nigeria would need $10 billion annually in the next five years to meet its target for oil reserves of 40 billion barrels by 2010 and to eliminate gas flaring by the end of 2008. The Nigerian government signed a memorandum of understanding with China National Offshore Oil Corp. (CNOOC) to identify suitable upstream oil and gas assets that would be integrated into the downstream projects, including refining, power generation, petrochemicals and fertilizer, in partnership with local industry players. In July 2005, CNOOC and NNPC signed an $800 million contract that would guarantee China receives 30,000 bpd for one year. More recently, and having a profound impact, was a mutually beneficial deal between China and Nigeria signed by President Hu. Read more ..
China's Global Energy Quest
|Cindy Hurst||August 25th 2008|
Cutting Edge Senior Contributor
|Vladmir Putin and Hu Jintao|
There is a growing alliance between China and neighboring country Russia. This alliance generates vast undercurrents of both economic and political intention.
Russia, a major non-OPEC oil-producing country, holds the world’s largest natural gas reserves and is the world’s largest exporter. The country also holds the eighth largest oil reserves, of which it is the second largest oil exporter. However, Russian oil fields, located mostly in Western Siberia were established in the 1970s and desperately need capital and technology to stabilize their production. Russia needs at least a $25 billion overall investment to accomplish this and approximately $6-7 billion annually.
The vast majority of Russia’s oil and natural gas is piped west to countries in the former Soviet Union and Europe. Due to fears of Russia’s capability to use its energy as a political tool and weapon, Europe has been striving to reduce its own dependence on Russian supplies. This is prompting Russia to look east, toward Asia to secure its security of demand. With its booming economic growth, China is an ideal partner to Russia.
In the 1950s, China and Russia maintained a close alliance. Between 1960 and 1985, China’s relationship with Russia was defined as deeply hostile. After 1985 there was a gradual normalization during the Gorbachev years. Then, after 1991, which marked the end of the Cold War, Russia maintained a political distance from China because China remained communist and had publicly endorsed a 1991 coup attempt by Soviet communist hardliners. Read more ..
China's Global Energy Quest
|Cindy Hurst||August 11th 2008|
Cutting Edge Energy Contributor
China’s relentless quest for energy has brought it to the U.S. neighboring country of Canada.
Fifteen years ago, China did not import any oil at all. Today, however, the Asian country is the world’s second largest consumer of oil. In 2004, oil imports to China are said to have increased by 37 %, which contributed to soaring oil prices around the world.
In 2007, China consumed an average of 7.5 million barrels per day (mbd) of oil. That amount is projected to increase to approximately 13.6 mbd by 2025. That same year, China’s production level is expected to be approximately 3.7 mbd, which will require the country to have a net import of at least 9.9 mbd.
The significance of China extending its pursuit of oil into Canada is that Canada has been the number one source of U.S. oil imports for the past decade. According to figures released by the Energy Information Administration, in 2006 Canada produced an average of 3.288 mbd of oil. Of this, an average of just over 2.353 mbd, or 72 % of the oil produced, has been exported to the U.S.
Within the past three years, in an effort to increase its own energy security, China has begun flexing its muscles to strike various deals with Canada to win access to some of the most prized oil reserves in North America. In April 2005, China National Offshore Oil Corporation (CNOOC), through its wholly owned subsidiary CNOOC Belgium BVBA, signed an agreement with MEG Energy Corp., a Canada-based company, to buy 16.67% of MEG for $135 million. MEG has the rights to an oil sands lease in a 52-section (32,900 acres) oil sands block that is believed to contain 2 billion barrels of recoverable oil. This acquisition is expected to help pave the way for further investment into Canada’s huge oil sands resources. In another deal, Sinopec has acquired 40 % of the Northern Lights Oil Sands Project in Alberta, where production is expected to begin sometime in 2010. Then, last year China National Petroleum Corporation (CNPC) won exploration rights for a 260-acre tract in Alberta. Read more ..
The Politics of Oil
|Cindy Hurst||August 4th 2008|
Cutting Edge Contributor
Oil exploration and production is one of the principal areas of foreign investments made by China in Angola. But these investments do very little to curb corruption in that country.
In recent years, China has increased its economic and diplomatic involvement in the African country. According to a Macau-based news source which focuses on economic information, trade between Angola and China reached $11 billion in 2006 and $14.11 billion in 2007. Angola, sub-Saharan Africa’s second largest oil producer, accounts for 17 percent of China’s total imported oil. China and Angola have maintained diplomatic and economic ties for 25 years. China developed these ties to create a diplomatic power-base and a market for its state-owned enterprises.
Angola has been recovering from a 27-year civil war that began just before the nation won its independence in 1975. The war destroyed much of the country’s economy and infrastructure. The Angolan economy is heavily dependent on its oil sector—accounting for over 40 percent of Angola’s gross domestic product and nearly 90 percent of government revenues. Throughout the past few years, Angola has experienced sharp increases in oil revenues. Despite these increases, the economy continues to stagger with an external debt of $8.2 billion and 70 percent of its citizens living in poverty. Read more ..
Tracking "Better Place" Electric Cars
|Jesse Cogan||July 28th 2008|
Cutting Edge Contributor
Nissan and Project Better Place promise that their 2010 electric cars will be pure electric—not plug-in hybrids like those planned by many green competitors. I want a pure electric car,” said Carlos Goshn, chief executive officer of Nissan. “I don’t want a hybrid”.
As a result, Nissan's cars will be 100% emission free, Goshn declared at a ceremony to dedicate Nissan’s new North American headquarters in Franklin, an affluent suburb in the hills south of Nashville.
How long must an electric car’s battery last before needing a recharge? To be practical, in the United States, at least 100 miles, said Goshn. Other countries might need only a 50 mile range because of different driving patterns, and some populations will have higher tolerance levels than others for the frequency of recharging, but Nissan insists that all their electric cars run on electricity only.
We will not market cars that are sometimes emission free and sometimes not, said Goshn. An electric car that lets oil take over when the battery loses its charge is “unsustainable”. Read more ..
The Edge on Wind
|Jesse Cogan||July 21st 2008|
Cutting Edge Contributor
FPL Energy is the nation’s mightiest wind power provider. The company operates 56 wind farms in 16 states including the nation's largest, the 735-megawatt Horse Hollow field in Texas. Recently, the firm announced a new two billion dollar wind farm to be spread over 250 square miles in North Dakota. “They're very good at it,” says Jay Apt, executive director of the Carnegie Mellon Electricity Industry Center. They are “one of the most efficient wind operators in the country.”
No one is bigger in wind than FPL Energy.
By the way, what do the initials FPL stand for? Answer: Florida Power and Light. So it must seem ironic that FPL Energy refuses to build a wind farm in its home state of Florida. Correct. One of the nation’s biggest corporate booster of wind energy claims the quality and location of Florida breezes make it difficult or perhaps impossible to produce energy at a reasonable cost. That will come as a big surprise to most Floridians who endure constant hurricanes, tornadoes, and other gale force winds. Read more ..
Cutting Edge Energy and Security Desk
|US Air Force at Desert Storm|
We pay in some places $5.00 for a gallon of gasoline at the service station. But the real price of gas is much higher and camouflaged by myriad direct and indirect costs associated with maintaining our oil economy. How much are you actually paying for gas? Take a closer look at the hidden bills footed by your taxes:
The federal government subsidizes the oil industry with numerous tax breaks and government protection programs worth billions of dollars annually. These benefits are designed to ensure that domestic oil companies can compete with international producers and that gasoline remains cheap for American consumers.
Our dependency on oil from countries that are either politically unstable or at odds with the U.S. subjects the American economy to occasional supply disruptions, price hikes, and loss of wealth, which, according to a study commissioned by the U.S. Department of Energy, have cost us more than $7 trillion present value dollars over the last 30 years. That is more than the cumulative cost of all of the wars fought by the U.S. since the Revolutionary War. Read more ..
Kicking our Oil Addiction
|Michael Klare ||July 7th 2008|
At the hastily convened global oil summit in Jeddah, Saudi Arabia on June 28, top officials of producing and consuming nations from around the world attempted to find a combination of solutions that would somehow extricate us from the current crisis over sky-high energy prices. These proposals ranged from increased output by major producers like Saudi Arabia and Kuwait to restrictions on the activities of international oil speculators.
But all were based on the premise that the crisis can be resolved through the right mix of actions, thus restoring an environment of cheap and abundant oil – a premise that is fundamentally flawed. More and more, the evidence suggests that this is not just a temporary crisis. It is the beginning of the end of the Petroleum Age.
How do we know that the Petroleum Age is drawing to a close? Two key indicators tell us that this is so. First, many of the giant fields that have satisfied our massive thirst over so many years are experiencing diminished output. Second, although the major oil producers are spending more money each year to discover new reserves, they are finding less and less oil. Either of these factors by itself is cause for significant worry; the combination is deadly.
Few people understand how reliant we have become on a relatively small number of mammoth fields for the lion’s share of our daily petroleum intake. Though the world possesses tens of thousands of operating fields, a mere 116 of them – each producing more than 100,000 barrels per day – together account for nearly one-half of total global output. Of these, all but a handful were discovered more than a quarter of a century ago, and most are showing signs of diminished capacity. Indeed, some of the world’s largest fields – including Ghawar in Saudi Arabia, Burgan in Kuwait, Cantarell in Mexico, and Samotlor in Russia – appear to be now in decline or about to become so. Read more ..
The Politics of Energy
|Jesse Cogan||June 30th 2008|
Cutting Edge Contributor
Electric Vehicle--The Immediate Years Ahead
Shai Agassi's Electric Car Plan Good Enough to “Wipe out Gasoline Cars” Says Deutsche Bank
The $300 million incentive plan proposed by John McCain to motivate the “development of a battery package that possesses the size, capacity, cost, and power to leapfrog the commercially available plug-in hybrid or electric cars,” has been scoffed at by politicos and energy experts alike.
Democratic Presidential candidate Barack Obama said the $300 million award is nothing more than “bounty” for some “rocket scientist” to claim. McCain spokesman Tucker Bounds said the specifics would be introduced and made policy if McCain is elected. McCain wants Americans to understand that yet to be discovered approaches can help solve America’s dependence on oil, he said.
But experts such as Edwin Black, author of Internal Combustion: How Corporations and Governments Addicted the World to Oil and Derailed the Alternatives, publicly declared that the candidate did not seem to be aware of more than a century of existing battery technology waiting to be resurrected. In an interview with FOXNews.com, Black criticized McCain’s proposal for lack specifics. “As of now, there is no proposal,” he said, “A battery? For what car?” Black continued, “The money could already be put into manufacturing the many existing battery designs waiting for a boost—if the government wanted to.” The author equally criticized both presidential candidates. Weaning America off oil immediately in months, not years, should be the goal, Black said, and neither Obama nor McCain has offered a program to accomplish that. Read more ..
Kicking Our Oil Addiction
|Edwin Black||June 23rd 2008|
In the absence of a government-launched Manhattan Project to ignite the alternative fuel revolution, the public must turn not just to the White House or the state house but also to the largest fleet owners in the country. Carmakers such as Honda, BMW, and Toyota are waiting for only one thing before they commit their considerable resources away from gasoline cars and toward hydrogen, electric, natural gas (CNG) or other alternatively fueled vehicles. Those companies want tangible demand. Fleets—governmental, commercial and private—have a compelling volume purchasing power no automaker can ignore.
For-hire carriers in 2004 operated 675,000 trucks; the top ten include such companies as UPS, Federal Express, and Yellow Roadway. UPS alone deploys some 80,000 brown trucks daily as it makes 13 million deliveries every 24 hours. Only about 1,000 of UPS’s massive fleet ran on compressed natural gas as of summer 2006. Within Federal Express’s 70,000-vehicle fleet, the company operated 30,000 medium-duty trucks, of which less than a 100 were hybrid diesel as of summer 2006.
Some 6 million additional vehicles are owned by private commercial fleets such as Sysco, Wal-Mart, Halliburton, and Frito-Lay. Wal-Mart alone operates 3,300 trucks that in 2005 drove 455 million miles to make 900,000 deliveries. Verizon operated 70,000 trucks and cars in 2004. Waste Management operated about 28,000 vehicles in 2004. Krispy Kreme Donuts operated 750 vehicles in 2004. City, state, and federal agencies, as well as universities, comprise just a fraction of America’s 38,000 private fleets.
Today alternative fuel vehicles are ready—or fast becoming ready—to roll out en masse. If fleet managers adopted a Green Fleet Initiative, that is a hierarchy of purchasing that mandates hydrogen cars first, fully electric cars second, and CNG cars third, the race would be on among all truck and heavy-duty vehicle manufacturers from GM to Mercedes to be the first to fulfill those orders. Volume purchasing would multiply and accelerate the technology, bring down costs, and migrate such vehicles swiftly from commercial fleets to average consumers. Read more ..
Understanding the Danger of Oil
Cutting Edge Energy and Security Desk
"We do have to do something about the energy problem. I can tell you that nothing has really taken me aback more, as Secretary of State, than the way that the politics of energy is […] 'warping' diplomacy around the world. It has given extraordinary power to some states that are using that power in not very good ways for the international system—states that would otherwise have very little power." Secretary of State Condoleezza Rice, testimony before the U.S. Senate Foreign Relations Committee, April 5, 2006.
Throughout the 19th Century nearly half of the world’s crude oil supply came from the gushing oilfields surrounding the Azeri city of Baku. At that time, petroleum supplied only four percent of the world’s energy, giving the Caspian region little strategic advantage on the international stage. But as the world economy embarked on a steep growth trajectory, dependence on petroleum grew significantly.
Today, oil supplies about 40 percent of the world’s energy and 95 percent of its transportation energy. As a result, those who own the lion’s share of the reserves of this precious energy source are in the driver’s seat of the world economy and their influence is steadily growing. Read more ..
Tracking “Project Better Place” Electric Cars
Cutting Edge Contributor
|Better Place E-Tank|
Imagine your cell phone transforming into an electric car. Sound far-fetched?
Not if you're Shai Agassi, the founder of Project Better Place (PBP), and you believe you have finally created the concept that could transform the notion of car ownership and make the vehicle you own an electric one. The underlying premise of his paradigm-changing business plan is to sell clean, green transportation services on the cellular telephone model.
Israeli-born Agassi's idea, for which he's received some $200 million in venture funding, led by The Israel Corporation is to create the electric car equivalent of a cellular phone network. Where forests of cellular phone towers and repeaters are the most visible manifestation of the networks that make cell phone service possible, in PBP's case, the network will consist of hundreds of thousands of battery charging stanchions and scores of battery swapping centers. Just as it isn't the cell phone that generates revenue for the likes of Sprint, Verizon and ATT&T, it won't be the electric cars in Agassi's model. Instead, it will be the convenient, affordable and environmentally-sustainable transportation services that he hopes to offer.
A recent study of Project Better Place's plan by Deutsche Bank concluded that not only can it be financially successful, but that it has the potential to "wipe out gasoline cars." Read more ..
Kicking the Oil Addiction
|Allyson Rowan Taylor||May 26th 2008|
|Pine--a viable corn ethanol alternative|
New Zealand believes it may have discovered a solution to global warming and diminishing energy with its own alternative fuel. Scion, a state owned forestry research corporation, says that can be used for biofuel production. The announcement could presage an alt fuel breakthrough.
The investigation by Scion via bio refineries has been the target and hopes of this company. They are currently able to process waste from pulp and paper mills. There is a processing plant in the Central North Island of New Zealand that has the potential to produce over ninety million liters of ethanol annually. This would surpass the Government’s target of a 3.4 per cent biofuel component of gasoline and diesel by 2012.
Scion has been successful in working with other companies to help with the growth of this alternative energy. Agresearch, another state-owned company is just one of the partners. A wood process, Carter Holt Harvey (CHH) is investigating the potential of adding a bio-ethanol manufacturing plant to its corporate infrastructure. This plant could be implemented at one of CHH’s pulp and paper mills in the Central North Island of New Zealand as well. This would allow them to test the product for long-term use and potential. Read more ..
Running Out of Oil
|David Room and Steve Tanner||May 5th 2008|
|Shell Geologist M. King Hubbert|
When did Shell executives first learn that the world would one day face the moment of peak oil, known to many as Hubbert’s Peak? Answer: as far back as 1956 when M. King Hubbert delivered his seminal speech to Shell employees predicting the day when oil reserves would begin to decline. For more than a half century, Shell has known that the world of the 21st Century would begin running out of oil with disastrous ramifications. Yet little was done to prepare society.
The story begins in 1950s when the United States was the world’s largest producer and exporter of oil, making it mostly self-sufficient. The U.S. also was the largest creditor nation, while its manufacturing output fed the world’s demand for tools and machinery. This new world power from the West emerged relatively unscathed from the second of two world wars, for which its unprecedented access to oil proved the deciding factor. This quite literally was America’s peak in wealth and potential.
Before embarking on an ambitious plan to rebuild the bombed-out cities of Europe, the U.S. built more than 2 million homes on the home front, mostly to meet the unprecedented demand of returning GIs. The resulting paradigm shift, constructed around a flawed assumption of infinite bounty, was the beginning of the suburbanization of America that continues to follow its terminal path. Intensive highway development would continue for decades, further solidifying American’s love affair with the automobile and redefining the American Dream. Read more ..
Exposing Corn Ethanol
Corn ethanol has exploded recently in the headlines as the latest big fuel mistake and cause of public outrage. Its very production has been denounced by numerous world leaders as a “crime against humanity” because corn cultivation for ethanol diverts food acreage to fuel acreage creating the tectonic cause of the severe spike in food prices. This has in turn helped swell a rising tide of starvation for millions around the world. Corn ethanol’s inherent energy inefficient character has been exposed by experts who have resisted the tobacco-style science corn lobbyists have proliferated. But all these headlines were shouted years ago by critics who foresaw the current predicament.
What began as an additive functioning as a 10 and 15 percent gasoline extender has become elevated to a potential major ingredient in a gallon of gas. E85, for example, is an emerging blend of automobile fuel composed of 85 percent ethanol and only 15 percent gasoline. Dedicated E85 pumps are now being established at gas stations, mainly in the Midwest’s corn-rich farm belt.
At first blush, ethanol from corn appears to be a solution from America’s heartland, a win-win proposition in the struggle to free the world from harmful hydrocarbons and politically embroiling fuel. But American corn ethanol cannot stand on its own. Ethanol actually depends upon the continued use of petroleum and by necessity increases petroleum consumption and greenhouse gases. Many experts say ethanol simply uses more petroleum than it saves. For example, a key series of studies was conducted by Tad Patzek, a University of California geoengineer and David Pimentel, a Cornell University expert in life sciences, energy, and sustainable agriculture. Pimentel’s and Patzek’s studies asserted that, “ethanol production using corn grain required 29 percent more fossil energy than the ethanol fuel produced” and that even proposed alternative ethanol cellulosic sources other than corn, such as switchgrass, wood, and straw, “required 50 percent more fossil energy than the ethanol fuel produced.” Those energy expenditures cover a range of hydrocarbon users from the diesel-burning tractors and combines on the farm to the ordinary trucks needed for transport to and from the industrial centers. Read more ..
Kicking Our Oil Addiction
Cutting Edge Contributor
|Spyder Electric Car|
It took a war, a movie, and $100 a barrel oil to bring back the electric car.
Not that you can walk into your local car dealership and buy one, much less kick its tire, but that day may not be too far off.
A competitive option just a century ago, electric vehicles or EVs, found themselves eclipsed by models powered by gasoline that offered greater driving range. Awash in cheap Texas crude, Americans gradually found themselves pulled ever-deeper into their 100-year-long relationship with the gas-powered motorcar and the freedom it promised.
But that was half-a-century and thousands of brimming oil fields ago.
Now concerns over national security, climate change, and global resource competition are spurring a revival of interest in cars that run on electricity instead of petroleum. While the number of energy sources that can power an internal combustion engine are essentially limited to petroleum and biofuels, an electric car can be charged from myriad sources, including fossil fuels and nuclear power, as well as renewables running the gamut from hydropower to geothermal to wind and solar.
Even General Motors CEO and President, Rick Wagoner, has begun extolling the virtues of the electric car as a way to remove the automobile from the "environmental equation." GM--the company that "killed the electric car" as charged in the acclaimed Chris Paine documentary of the same name, and that helped destroy America's electric trolley system as documented in Edwin Black's bestseller Internal Combustion--now promises extended-range electric car called the Volt will roll down the streets of America sometimes during the 2010 time frame.
Before discussing what's available now and in the years immediately ahead, we need to understand some basic concepts about today's electric cars. Read more ..
Kicking The Oil Addiction
|Mark Abramowitz||April 28th 2008|
Cutting Edge Contributor
A Danish utility has partnered with a California company to power electric vehicles with renewable wind energy.
Palo Alto-based Better Place and Dong Energy A/S will build an infrastructure in Denmark to support an electric car system designed to make use of the cheap power that wind energy provides on windy days. Targeted for completion in 2010, this system will include vehicle charging at charging spots and battery-exchange locations throughout the country.
Better is rolling out a similar network in Israel and is partnering with Renault SA and Nissan Motor Co. to build fully electric mass-market cars that run on lithium-ion batteries.
In a Wall Street Journal article, Better CEO Shai Agassi was quoted as saying, "Cars are the perfect match for wind power. They charge sitting in the garage at night when there is little other demand for electricity."
As a country that meets 20% of its total electricity needs from wind production, Denmark is at the forefront of countries waking up to the unique challenge of balancing power surges on windy days with zero production on still days. These ups and downs of wind power can strain the electricity grid, a continuing problem in the use of renewable sources of intermittent energy. Additionally, in areas such as western Denmark, a windy day can produce so much electricity traditional fossil-fuel plants utilities will scramble to offload excess power or take a financial hit. Read more ..
Cutting Edge Energy and Security Desk
Earlier this month, Al Gore’s Alliance for Climate Protection launched a $300 million advertising campaign aimed at mounting pressure on political leaders to act urgently to reduce greenhouse gas emissions. Its scope, the largest ever for a public policy issue, is on par with the size of the movement Gore has helped create. In fact, over the short history of the 21st century no issue perhaps other than terrorism has risen from near obscurity to the center of our public discourse as global warming. What started as chatter among concerned scientists and diehard environmentalists has turned in just five years into one of history’s fastest growing mass movements, one that consumes increasing bandwidth of governments and world leaders.
The launch of Gore’s campaign coincided with a much less noticed event: the 100th anniversary of the birth of the late Abraham (Abe) Maslow, one of America’s foremost psychologists, the father of humanistic psychology. Maslow saw human beings' needs arranged like a pyramid. The most basic needs--air, water and food--are at the bottom. Then come shelter and security. Once these have been attained, it's time to strive for more spiritual needs like love and acceptance. At the top of the pyramid people begin to focus on self-actualization and on solving problems outside of themselves. This is where concern for the planet’s health would be found. Maslow believed that unfulfilled needs lower on the pyramid would prevent a person from climbing to the next step, while backsliding in the pyramid forces us to redefine our priorities and refocus on the self at the expense of the global. In other words, we care about issues because we can afford to do so.
What does all of this have to do with Gore?
Despite its current popularity, Gore’s climate movement may be close to its zenith and in the not-so-distant-future it might lose its allure. The challenge will not come from the so called climate skeptics but rather from the millions, currently sympathetic to the movement, whose priorities are about to change as a result of what now seems to be an inevitable global energy crunch. Read more ..
Capturing the Wind
|David Room||April 14th 2008|
The giant wind turbines on the west coast of Ireland stand not only on the geographical limits of Europe, but also on the cutting edge of a revolutionary technology that makes wind power more reliable and valuable. The 32 megawatt (MW) Sorne Hill wind park will be Europe’s first to integrate a large scale battery back-up system that ensures a reliable supply of electricity regardless of how the wind blows.
“The battery enables large amounts of energy from wind or solar power to be stored, managed, controlled and sent into the electricity grid when it is needed. It doesn’t matter whether the wind is blowing or not; the battery makes the electricity output predictable and reliable,” said Tim Hennessy, CEO of VRB Power Systems, the battery manufacturer based in Vancouver, Canada.
Analysts say the potential market is huge for technology that can improve the reliability of large amounts of energy from wind and solar power. Wind power is not generally considered dispatchable or “firm” because wind is intermittent and fluctuates greatly on all scales (e.g., minute by minute, day, season). Furthermore, the wind does not always blow when electricity is most needed and therefore valuable.
Battery storage is particularly useful when wind power feeds a grid belonging to a so-called “island” such as in the UK and Ireland. Spain, on the Iberian Peninsula, is also effectively an electrical island because it has limited interconnections with France in the north and Morocco in North Africa.
By contrast, the electricity grids of Germany and Denmark are interconnected with those of their neighbors. Their excess wind power goes all over Europe; the extensive and varied demands of the grid negate the need for a huge storage system. In addition, Germany uses hydropower and biomass to back up wind and compresses air into salt mines to store excess energy. Read more ..
Transfer of Wealth
Cutting Edge Energy and Security Desk
By now, it is abundantly clear that the U.S. economy is in dire straits. What should also be clear is that the path to economic recovery will be compromised as long as America is dependent on imported oil to the degree that it is while oil continues to hover over $100 a barrel.
At current oil prices, this country sends overseas $460 billion per year to finance the daily buying of 12 million barrels of imported oil. This amount of money is about the size of our defense budget and three times the size of the “economic stimulus” package recently passed by Congress. But the real economic impact of oil dependence is hidden to most Americans. Energy economist Milton Copulos (who passed away this month) calculated last year that the grand total of all external costs associated with foreign oil dependence -- including the cost of oil-related defense expenditures, amortized cost of supply disruptions, and lost economic activity and tax revenues -- stands at $825 billion per year.
To put the figure in perspective, this is equivalent to adding $8.35 to the price of a gallon of gasoline refined from Persian Gulf oil, making the cost of filling the gasoline tank of a sedan $214, and of an SUV $321. At today's oil prices, these costs would be even higher. For the U.S. economy, oil dependence is a double whammy. While it contributes to our economic decline, it allows OPEC governments, many of which do not have our best interests in mind, not only to laugh all the way to the bank but to literally own the bank. The recent buyout by foreign governments of chunks of America's prime symbols of economic prowess -- like Citigroup, Merrill Lynch, Morgan Stanley, Blackstone Group and Bear Stearns -- is only the preview to what is yet to come should the petrodollar fueled transfer of wealth continue.
Read more ..
The Race for Nuclear
|Karin Kloosterman||March 24th 2008|
Vetrified slag radioactive waste now inert
The problem of radioactive waste is a global one, and getting worse. All countries in the industrialized world are waking up to the need for safer hazardous waste disposal methods.
The laws of conservation of energy and mass say that energy or mass cannot be created or destroyed--it can only change form. But with the help of Russian scientists, Israeli firm Environmental Energy Resources (EER), has created a reactor that converts radioactive, hazardous and municipal waste into inert byproducts such as glass and clean energy.
"In the beginning, nobody believed that we could do it," says Itschak Shrem, chairman of investment company Shrem, Fudim and Keiner representing EER at a recent in Tel Aviv press briefing announcing the innovation. Shrem, himself an invoker of small miracles through the founding of one of Israel's most lucrative venture capital funds - Polaris (now Pitango) - pointed to a chunk of black, lava-like rock sitting on the table in front of everyone's coffee cups. The journalists cautiously eyed Shrem as he assured them that the shiny dark material, emitted from EER's pilot waste treatment reactor near Karmiel in the north, was safe to touch. Read more ..
Biofuels Beyond Food Crops
|Karen Kloosterman||March 17th 2008|
With scientists all over Israel and the world racing to find an efficient fossil fuel substitute, interest in "second generation biofuels" is growing. Scientists, companies and investors are looking beyond biofuels made from corn, sugar cane and vegetable oils and are turning to organic materials and waste that won't compete with food crops.
One promising biofuel alternative that Israelis are actively working on is made from seaweed, or more accurately algae. Not long ago, those on the quest convened at the Samuel Neeman Institute at the Technion-Israel Technological Institute, to find ways to help Israel accelerate development in this area.
Dr. Amit Mor from Eco Energy, an energy investment and consulting firm, is an advocate of renewable energy solutions. He was at the meeting. Through Eco Energy, Mor and his partner Shimon Serroussi specialize in greening Israel's energy, environmental, and infrastructure sectors. Their latest projects include conducting due diligence for renewable energy projects, such as wind farms, solar energy, bio-fuels and clean-tech startups. They conduct financial valuations and write business plans for Israeli oil refineries, petroleum depots, and power plants.
Active in the newly developing market of Israel's greenhouse gases emission reduction programs and emission credits, the company has also prepared the Energy Master Plan for the State of Israel, commissioned by the Israeli Government. Read more ..
Kicking The Oil Addiction
Cutting Edge Energy and Security Desk
Jim Woolsey and President Bush.
In a special ceremony at the massive Washington International Renewable Energy Conference Former CIA Director and Set America Free co-founder Jim Woolsey picked up the keys to his newly converted Plug-in Hybrid Electric Vehicle.
Woolsey's Prius was upgraded by Watertown, MA-based A123 Systems using an advanced Lithium-Ion battery developed at MIT. The conversion allows the Prius to achieve 100+ MPG and travel up to 40 miles on predominantly electric drive from one overnight charge. Each charge takes about 4 hours and costs about 65 cents in suburban Maryland.
"And if my Prius had an ethanol, other alcohol, or bio-based diesel engine using 85 percent biofuels," said Woolsey, "I would get close to 500 mpg on the petroleum fuel in the engine."
Woolsey's auto upgrade came on the same day that the 13-nation Organization of the Petroleum Exporting Countries rejected requests from America to increase oil production. As a result, petroleum that day close at $104.52 per barrel, and continues to soar upward. The former CIA chief and now alt energy champion told a panel of carmakers and other vehicle design experts that average consumers paying at the gas statsion were responsible for sending young Pakistani boys to madrassas to become suicide bombers. He asserted that Saudi Arabia finances more than 90 percent of radical Islamic education and that country's prime income source was oil. Woolsey also addressed a seminar on energy security sponsored by the Institute for the Analysis of Global Security, moderated by Gal Luft.
President George Bush dropped by to take a look at Jim's newly converted plug in hybrid vehicle and admired its bumper sticker: “Bin Laden Hates This Car." Bush also stated, "America is in the lead when it comes to energy independence." He did not explain what he meant. Read more ..
Some 45 coal-fired power plants were either cancelled or delayed in the past 12 months, according to a report by the US Department of Energy's National Energy Technology Laboratory. The trend reverses the utility industry’s craving for coal plants with some 150 such facilities in development.
Indeed, natural-gas and renewable projects have now outpaced coal plants, according to Global Energy Decisions, an energy information supplier. Non coal plans total more than 70,000 megawatts while coal has dropped to just 66,000 megawatts in the pipeline.
Investors have become cautious which is taking a toll on coal development plans. "You turn off the money spigot, you've turned off those plants," said Robert Linden, a senior oil and gas analyst at Pace Global in New York.
About 28 coal-fired power plants already under construction are moving forward, as are plant expansions. But for six other facilities "near construction," their fate has become unknown. Another 80 plants “in development” may be cancelled outright. Last year, Texas utility TXU alone canceled eight of its planned 11 coal-fired power plants.
Whether coal is booming or not, is a debate. "We're in the middle of a coal building boom with more new coal plants now under construction than anytime since the 1980s," asserts Joe Lucas, executive director of Americans for Balanced Energy Choices, a coal and utility lobby group. Read more ..
Kicking our Oil Addiction
|Honda GX refueling at home|
The Russian government has plans in place to transform 10% of all motor vehicles in the country into natural gas vehicles by the year 2010, according to FuelMaker which manufactures natural gas Vehicle Refueling Appliances (VRAs). Fuelmaker refueling appliances have now been certified for use in Russia and are commercially available through its Russian dealer, Micrometan Ltd. As such, the company is poised for a pivotal role in Russia's green revolution.
The company's long-sought "Certificate of Conformity" was recently issued by the Russian Federal Government, allowing the sale of FuelMaker VRAs throughout the country. This certification recognizes that FuelMaker products conform to the federally mandated safe operating requirements of appliances. The certification is valid through 2010.
FuelMaker VRAs are designed for the refueling of small to medium sized fleets of natural gas vehicles, ice resurfacers and forklifts. The VRA can be incorporated in on-site fast fill and time fill refueling stations, and help fleets realize the benefits of on-site refueling in situations where larger stations would be too costly. Read more ..
Petropolitics and Oil
|Frank Gaffney||February 20th 2008|
Ironically, we all owe a debt of gratitude to Rowan Williams, who in his capacity of Archbishop of Canterbury is the head of the Church of England. Our thanks are not due this cleric, however, for his appalling pronouncement last week that we had better get used to the imposition of Shariah law in Britain since it is now, in his words, "unavoidable."
Rather, we should be appreciative because, by his declaration of capitulation to and appeasement of the Islamofascists – who agree with him on the inevitability of the triumph of the brutally repressive totalitarian theo-political-legal code they call Shariah – Archbishop Williams has, albeit wholly unintentionally, sounded a needed alarm. In response, UK politicians of every stripe are suddenly professing concern about the danger a courageous British author named Melanie Phillips has, until now, been reviled for depicting as "Londonistan." Read more ..
Kicking the Oil Addiction
|Sam Orez||February 4th 2008|
|Kenworth LNG Truck|
Kenworth Truck Company has announced that it will expand its presence in the growing market for LNG vehicles by beginning production of Kenworth T800 LNG trucks at its manufacturing facility in Renton, Washington in 2009. Under an exclusive agreement with Westport Innovations, Kenworth will use Westport’s LNG fuel system technology adapted for the Cummins ISX-15-liter engine. Westport will open a new LNG Fuel System Assembly Center in British Columbia to support the Kenworth factory initiative and to rapidly increase production capacities of LNG fuel systems to meet growing market demand. LNG freight trucks will be an essential element of any national strategy to get off of oil.
Kenworth’s move coincides with the Ports of Los Angeles and Long Beach announcement to approve a new $1.6 billion Clean Truck Superfund. The fund will assist replacing many of the 16,800 Class 8 trucks serving the ports with LNG-powered vehicles. The ports also have introduced a new progressive ban that will remove all pre-2007 trucks by 2012. Westport’s LNG fuel system is the only alternative fuel technology currently qualified for financial support under the ports’ Clean Truck program.
Kenworth and Westport Innovations have previously collaborated on an aftermarket basis to equip Kenworth T800s with LNG fuel systems. These trucks are already serving the Ports of Los Angeles and Long Beach. In addition, Pacific Gas & Electric Company in San Francisco recently became the first utility in the nation to operate Kenworth T800 LNG-powered trucks.
Plug Power of Latham NY, the promising technical edge of Honda’s home hydrogen refueling strategy, filed a notice with the Securities and Exchange Commission that Chief Technology Officer John Elter's last day was December 31, 2007, according to a Form 8K disclosure recently filed with the Securities and Exchange Commission obtained by this reporter. Even though Elter’s last day on the job was reportedly December 31, at press time on February 4, the company’s website still shows him as the Chief Technology Officer, and no company press release had been posted on the site, a check shows. Plug Power did not respond to questions on the topic and at press time Elter could not be reached.
Dr. Elter was responsible for the development of advanced fuel cell systems, managing the Company’s Centers of Excellence and guiding the development of fuel cell technologies that drive overall product strategy. He was reportedly a well-respected leader in the field. No reason was given for his departure.
Elter’s separation agreement, detailed in a December 21, 2007 letter to Elter, became effective December 31, 2007, according to the SEC filing. The agreement calls for him to be consultant to Plug Power for one year. The agreement specified in section 8 that during that year, Elter will not provide services to such businesses such as UTC Power, ReliOn, IdaTech, Ion America/Bloom Energy and/or Proton Energy without first informing Plug Power, according to the SEC filing. In addition, according to section 10, a non-disparagement clause, Elter is prohibited from any issuing an disparaging remarks about the company and further agrees to cooperate with any private litigants, according to the SEC filing.
In section 11, entitled “Communications Concerning Your Separation,” the agreement states: “If asked about the circumstances of your separation of employment with the Company, you shall state that you retired from your position and will otherwise make statements consistent with any communication and/or press release issued by the Company announcing your retirement from employment; provided that this shall not prohibit you from testifying truthfully in any legal proceeding, providing truthful information in response to a request from a governmental agency, or providing truthful information in response to a request for information in connection with your application for employment with another employer,” according to the SEC filing.
Paragraph 12 entitled “Information Concerning Actual, Potential or Alleged Financial Irregularities” states, “You represent that you are not aware of any actual, potential or alleged financial irregularities concerning the Company,” according to the SEC filing.
Elter is scheduled to receive his salary of $267,671 for a year, the agreement states, according to the SEC filing.
The well-regarded Elter has held his position at Plug since 2004, during which time the promising Honda hydrogen-producing Home Energy Station [HES] received much media attention. The HES, which is designed to transform CNG into power electricity for the home and into fuel for the forthcoming Honda Clarity hydrogen fuel cell vehicle, has been inexplicably sidetracked in recent months by Honda.
Plug is also hunting for a new chief executive officer. CEO Roger Saillant is set to retire April 7 when he turns 65.
At press time, Plug Power did not respond to questions on the agreement and Elter could not be reached. Story updated at February 4, 2008, 4:40 PM EST
|Gal Luft||January 28th 2008|
Cutting Edge Energy and Security Desk
President Bush’s appeal to the Saudis to increase oil production is more pitiful than understandable. At $100 a barrel, the United States bleeds over a billion dollars per day in order to finance its petroleum import needs. The result: ballooning trade deficits, growing unemployment, a weakened dollar and crumbling financial institutions like Citigroup and Merrill Lynch now forced to beg Persian Gulf monarchies for cash infusions. At current oil prices, the U.S. economy is melting faster than the ice caps.
But despite the president’s sweet-talk, his ridiculous appearance in a traditional Arab robe, his hand-holding with the Saudi monarchs, and even his gift of 900 precision-guided bombs, the Saudis were quick to respond with a slap in the face. Within one hour, the kingdom’s oil minister announced that oil prices would remain tied to market forces and the Saudis would not open the spigot.
This is hardly a surprise to me. The Saudis—despite their claims that oil high prices are the doing of Wall Street speculators and American SUV-driving soccer moms—are the first to blame for the current oil crisis. Their reluctance to invest in new production, their lack of transparency on reserve data and their anti-market practices, which prevent international oil companies from operating in their midst in any meaningful way, are the real reason for the quadrupling of prices in the past six years. Read more ..
Getting Off Oil
|Cutting Edge Staff||January 28th 2008|
CNG could become a mandatory alt fuel in the New Dehli region in the coming years if officials follow through with a new policy now under coinsideration. Chief Minister Sheila Dikshit recently stated: “While CNG has benefited Delhi immensely, the effect of CNG gets mitigated when vehicles from other states not using CNG enter the city.” This in mind, the Delhi government will ask its National Capital Region Planning Board to implement mandatory CNG usage in the region. “If vehicles in other states don’t start converting their commercial and public transport vehicles to CNG, then we will have no option but to prevent them from entering the state and this will affect inter-state trade. Therefore this is not a road we want to go down,” said the chief minister. In that vein, the Delhi Cabinet decided on Monday to prohibit light duty vehicles--up to 6,600 lbs--froms enter its city from other Indian states unless they are operating on CNG. The new rule saeemed to be designed to reinforce an existing policy. “While this is a policy that already exists, these vehicles [non-CNG] have been entering the city. Now the government will strictly implement the rule and ensure that such vehicles are not allowed to ply here,” said a government official.
Getting Off Oil
|R. James Woolsey & Anne Korin||December 14th 2007|
|R. James Woolsey|
A determined pack has begun to race its engines and to try to shoulder us off the road toward energy independence. It’s time for those determined to stay on the track to drive aggressively.
The energy-independence question is really about oil — the rest of U.S. energy use presents important issues, but not the danger of our being subject to the control of nations that “do not particularly like us,” as the president put it. Some of the engine racers have an economic interest in keeping our transportation system 97-percent oil-dependent. Less understandable are the authors of a recent Council on Foreign Relations report accusing those working for such independence of “doing the nation a disservice.”
The authors of that report and their followers define “independence,” contrary to both Webster’s and common sense, as essentially “autarky” — i.e. complete self-sufficiency, or not importing oil even though we remain dependent on it. Such a Pickwickian definition captures none of the thinking of serious advocates of reducing our oil dependence: The point of independence is not to be an economic hermit, but rather to be a free actor. Read more ..
Getting off Oil
|Sam Orez||December 13th 2007|
One little known but crucial provision in the comprehensive energy legislation that just passed the Senate last week is the U.S.-Israel Energy Cooperation Act (USIECA). The bill is headed for passage in the House this week and the President’s signature thereafter.
USEICA allocates U.S. funding for Israeli research into new technologies to decrease American dependence on foreign oil. The law will establish a multi-year program of grants for joint projects at the basic research level between U.S. and Israeli academic institutions, and at the applied research and development level between U.S. and Israeli companies. Administered by the Secretary of Energy, the program who will be driven by a joint American and Israel board of advisors.
USIECA was the brainchild of Jack Halpern, Chairman of the American Jewish Congress’s Energy Independence Task Force. For his part, Halpern expressed “Extraordinary pride in the passage of this important measure because of the many years we put into the effort for its enactment, beginning with our conceptualization of the measure in 2003, through lobbying for the measure for four years.” Read more ..
Getting Off Oil
|Edwin Black||November 14th 2007|
|Honda's new Clarity|
American Honda Motor Company stole the Los Angeles Auto Show with decisive clarity today. Shortly after show doors opened, the company announced the summer 2008 initial rollout of its sleek, new and tantalizing four-passenger zero-emissions hydrogen fuel-cell vehicle. The long-awaited, market-ready hydrogen car, called “Clarity,” will use zero oil and feature zero emissions.
No longer experimental, the Honda FCX Clarity is powered by a breakthrough, “V Flow” fuel cell stack that delivers vastly increased power and range over previous FCX hydrogen models. The FCX Clarity utilizes its V Flow stack in combination with a new compact and efficient lithium ion battery pack and a single hydrogen storage tank to power the vehicle's electric drive motor. Hydrogen combines with atmospheric oxygen in the fuel cell stack, where chemical energy from the reaction is converted into electric power to propel the vehicle. Additional energy captured through regenerative braking and deceleration is stored in the lithium ion battery pack. It is used to supplement power from the fuel cell when needed. The vehicle's only emission is water. Indeed, the company invites drivers to drink the exhaust, and has even distributed novelty drinking glasses to drive home the point. Read more ..
Green is Gold
|By Joanna Prukop||August 9th 2007|
New Mexico Secretary of Energy, Minerals and Natural Resources Department
Among America’s leading energy producers in the 20th century, New Mexico now is poised to become a powerhouse in the rapidly evolving clean-energy economy of the 21st century. A new law taking effect next month promises to help New Mexicans quite literally tower over the competition as states scramble to cash in on the burgeoning market for cleaner and more predictably priced power.
The state has enacted a combination of innovative tax incentives and ambitious standards designed to make the most of New Mexico’s abundant renewable energy resources— wind, solar and biomass— and encourage new ways to make traditional energy sources cleaner and reduce the amount of climate-changing greenhouse gases they produce.
Tax credits make investment in commercial-scale renewable energy technologies more attractive. Stronger “Renewable Portfolio Standards” embraced by the Legislature— requiring major utilities to produce 15 percent of their power from renewable resources by 2015 and 20 percent by 2020— make those investments necessary. Read more ..
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