JouleBlog

The wind energy industry in the U.S. had a record-breaking year in 2009, installing 10,000 megawatts of new generating power, enough to serve 2.4 million homes, according to the American Wind Energy Association in its fourth quarter report released today. Yet the industry is still plagued by a lack of manufacturing investment, and job creation still lags. Here is a PDF of the report.

The AWEA credits the American Reinvestment and Recovery Act as the impetus for the growth. During the last quarter the wind added 4000 megawatts of new capacity, together with new construction, operations and management jobs. Texas, the top wind-producing state, added 2292 megawatts in new wind capacity, more than twice that of Indiana, which ranked No. 2, with 905 megawatts added. Arizona opened its first utility scale wind project in 2009.

Yet wind power’s prospects for long-term growth are far from a sure bet. Total investment in manufacturing actually dropped compared to 2008; there were one-third fewer wind power manufacturing facilities in 2009 compared to the year before. This resulted in a net loss of manufacturing jobs, which was compounded by low orders and high inventory.

The weak manufacturing outlook caused AWEA CEO Denise Bode to sound a warning: “U.S. wind turbine manufacturing – the canary in the mine — is down compared to last year’s levels, and needs long-term policy certainty and market pull in order to grow.  We need to set hard targets, in the form of a national Renewable Electricity Standard, in order to provide the necessary stability for manufacturers to expand their U.S. operations and to seize the historic opportunity we have today to build up a thriving renewable energy industry.”

In another development, Detroit Edison and Michigan-based Heritage Sustainable Energy have started commercial operation of a wind farm that will supply the utility’s customers with enough electricity to power about 2,000 homes. The wind farm is the first constructed and operated in Michigan under the state’s energy reform law that will have 10 percent of the utility’s power  generation come from renewable sources such as wind and solar by 2015. The wind farm was built after the utility signed a 20-year agreement to purchase wind power and renewable energy credits from Heritage.

President Obama today announced the award of $2.3 billion in new clean manufacturing projects across the United States. The award comes on the heels of a dismal jobs report that 85,000 jobs vanished in December. Employment in manufacturing declined by 27,000, according to the Bureau of Labor Statistics. Since the beginning of the recession manufacturing employment has fallen by 2.1 million.

Today’s announcement may only put a small dent in those massive losses, but at least it is a step to build domestic manufacturing capacity for renewable energy technology. The funds will come in the form of Recovery Act Advanced Energy Manufacturing Tax Credits, which will support 183 projects in 43 states. The investment tax credits are worth up to 30% of each planned project. It’s estimated that the tax credits will leverage private capital for a total investment of $7.7 billion in high-tech manufacturing in the U.S.

The projects include:

• Itron, Inc., which manufactures a smart meter for the residential market.
• W.L. Gore & Associates,, Inc., which produces a membrane for fuel cells for buildings and vehicles.
• PPG Industries, Inc., which produces a double anti-reflective coating for glass to make solar sells more efficient.
• TPI Composites, Inc., which is building a new manufacturing facility in Nebraska to produce composite wind turbine blades.

The projects selected for the tax credit will be in service by 2014; about a third of the projects will be completed this year. The 183 projects selected today will produce solar, wind and geothermal energy equipment; fuel cells, microturbines and batteries; electric cars; electric grids to support renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. A full list of the selected projects is here.

I want to hear your opinion. Leave a comment.

The New Year brings a fresh urgency to develop alternative sources of energy. While the Copenhagen Climate talks fell short of expectations for a binding agreement, I side with those who maintain that the deal that was led by President Obama was a positive step in cutting carbon emissions. It got major carbon emitting nations to agree to cuts and provided a commitment to fund developing nations to reduce emissions. At least the U.S. embraced a leadership position in reducing carbon emissions, and, hopefully, the agreement will provide momentum to getting a bill on clean energy and climate passed in the Senate this year.

As important as international agreements are, it now seems sure bet that what came out of the meeting would never measure up to the hype and high expectations that preceded it. Better, perhaps, to get one’s own house in order first. As noted by Thomas Friedman’s column in the December 22^nd New York Times, Denmark provides a good example of how this can be done. The Danish government uses energy taxes to stimulate innovations in green power, and then recycles the revenues back to Danish industry as an incentive for the companies to invest in clean technologies.

According to Friedman, Denmark, the most energy-efficient member of the European Union, has used a mix of carbon taxes, cap-and-trade, building codes and energy labeling systems to reduce its greenhouse gas emissions by 14% during the last decade. Renewable resources account for nearly 30% of Denmark’s electricity today.

It can be done in the U.S., too — but not without the political leadership to make it happen. That’s doubtful in a nation where the political system is a mess of partisan politics, lobbies and stunts like “tea parties” that hijack any real debate on issues. Any talk of energy taxes or shared sacrifice to make the U.S. more energy independent is a non-starter for many Republicans in the Senate, to say the least. And politics is bound to get even more acrimonious with Democrats on the defensive for the upcoming mid-term elections.

That’s tragic, because investments in a green economy, with modern energy and transportation infrastructures, can do much to get the millions of unemployed in this country back to work. This U.S. needs more public investments to get it out of the huge hole it has dug for itself. It needs to set a new direction.

Energy Secretary Steven Chu today announced the latest in a string of stimulus funding awards–this time directed at industrial facilities. The Department of Energy is awarding $155 million for 41 energy efficiency projects across the country. The industrial sector uses more than 30 percent of U.S. energy and is responsible for nearly 30 percent of U.S. carbon emissions.

Nine projects announced today will promote the use of combined heat and power, district energy systems, waste energy recovery systems, and energy efficiency initiatives in hospitals, utilities, and industrial sites.  Combined Heat and Power and District Energy Systems generate both the heat and power needed for industrial processes on-site, instead of using electricity from the grid, and can be nearly twice as efficient as conventional heat and power production, according to the announcement. The remaining 32 awards will provide local technical support for the industrial sector through university-based Industrial Assessment Centers, state agencies, regional partnerships, and a national technical assistance provider.

Is the Obama administration going far enough in calling the nation to action on energy? Bob Herbert asks that question in his column in today’s New York Times. Herbert lamented that President Obama’s speech on the smart grid last week, in which Obama touted $3.4 billion in energy funding, had fallen flat with the public. So had Vice President Biden’s announcement the same day that federal funds would help re-open an idled former GM plant in Wilmington, Del. to manufacture plug-in hybrid vehicles. As noted by Herbert, more important that the size of the grants was Obama’s call to action for anew direction on energy that will bring much-needed jobs and a more secure future.

I agree. There is a disconnect between President Obama’s eloquent message and its reception. On the other hand, it’s understandable that a public facing unemployment. Stimulus funds are a good thing, and there needs to be more of it. But there also needs to be a much bigger focus on job creation and training. It will take workers to make President Obama’s vision a reality.

What are your thoughts? Can the smart grid be a engine for job growth?

Source: Cielo Wind Power

At a time of tight lending by U.S. banks, commercial banks in China have stepped in to put up $1.5 billion for a giant wind farm in West Texas. The project is a joint venture between Austin, Texas-based Cielo Wind Power LP, private equity firm U.S. Renewable Energy Group, and China’s Shenyang Power Group, which will receive the funding through the commercial banks in China. The Associated Press quotes Cappy McGarr, managing director of the U.S. Renewable Group, as saying  the project will also tap into U.S. stimulus funding for renewable energy.

The JV partners say the project is the largest-ever joint U.S.-China investment in renewable energy in America. The 36,000-acre wind farm will have the power to provide electricity to 180,000 homes. A-Power Energy Generation Systems, Ltd., will supply 240 units of the 2.4 megawatt wind turbines, which will be manufactured at A-Power’s facilities in Shenyang, China. A-Power is a shareholder in Shenyang Power Group. A-Power will begin manufacturing the turbines next March and will deliver all 240 turbines by March 2011.

The joint venture says a lot about the positive role of much-needed for stimulus spending and the damage that tight credit continues to have on this economy. Manufacturing has rebounded in China, where it has benefitted from a massive stimulus package. In July T. Boone Pickens’ company, Mesa Power,  dropped its plans for a 4,000 megawatt wind farm in Texas, pinning the decision on tight credit and low natural gas prices. The American Wind Energy Association said last week that in its third quarter the U.S. wind energy industry installed 1,649 megawatts of generating power, an increase compared to the previous quarter. But manufacturing still lagged below 2008 levels.

Source: Reva Electric Car Co.

Reva Electric Car Co., a Bangalore, India-based automaker, reportedly is close to a deal to locate an assembly plant in central New York State. According to an article in the Syracuse Post-Standard, the car company is considering several sites around Syracuse, NY to assemble to Reva NXR, a three-door hatchback that was introduced last month at the Frankfurt, Germany auto show. The company says the NXR model can reach speeds of up to 65 miles per hour and has a range of 100 miles on a single charge of its lithium-ion battery pack.

According to the article, Bannon Automotive of Freeport, NY, has reached a licensing deal with Reva to assemble the car at the yet-to-be-determined site. The plant will initially employ 100 people if the deal goes through. Reva’s board must still approve the memorandum of understanding with Bannon, and financing has not yet been secured. New York State has agreed to provide $6.76 million in an economic development, and the partners have applied for $52 million in loan guarantees from the federal government.

Reva, which sells cars in Europe and Asia, was formed in 1994 as a joint venture between the Maini Group of India and AEV LLC of California. The technology was developed in California.

The U.S. wind industry installed 1,649 megawatts of power generating power during the third quarter, according to the third quarter market report of the American Wind Energy Association. The wind industry so far has added 5,800 megawatts of total capacity. The amount of added capacity during the third quarter is higher than the second quarter of 2009 or the third quarter of 2008.

Yet the AWEA says that wind turbine manufacturing lags behind 2008 levels, both in production and in new announcements–not surprising during this recession but still disappointing.

Wind power installations are up, and that is good news for America’s economy, environment, and energy security,” said AWEA CEO Denise Bode. “But manufacturing, which has the potential to employ many more Americans in good, clean energy jobs, remains uncertain. A firm, long-term national commitment to renewable energy is still needed for the U.S. to become a wind turbine manufacturing powerhouse and create hundreds of thousands of jobs.

Furthermore, AWEA doesn’t expect the fourth quarter of this year to be as strong as the fourth quarter of 2008 since the 5,000 megawatts now under construction is nearly 38% lower than the over 8,000 megawatts under construction at this time last year.

Arizona, which just installed its first utility-scale project, posted the highest wind power growth rate in the third quarter. Texas far outstripped any other state, both in additions of new wind power capacity during the third quarter and total wind operating capacity.

“Clean-Tech” is coming into its own in terms of growth and job creation, according to a new report, Clean Tech Job Trends 2009, released by Clean Edge, Inc. A free copy can be downloaded here after registering. Clean Edge, a market research company focused on the clean energy sector, defines clean-tech jobs as those that result from technologies that harness renewable materials or energy sources, reduce the use of natural resources, and cut or eliminate toxic wastes.

According to Clean Edge, the top five sectors for clean-tech job activity in the U.S., based on a combination of job placements, job postings, and public and private investments, are solar; biofuels and biomaterials; conservation and efficiency; smart grid; and wind power. Typical jobs in those sectors include include solar photovoltaic system installers, wind-turbine technicians, energy-efficiency software developers, green building designers, and clean-energy marketers.

In the U.S., the hotbeds of clean-tech growth are dispersed, with no single location, industry or professional demographic controlling the sector, according to Ron Pernick, co-founder and managing director of Clean Edge. The top metro areas for clean-tech job growth are: San Francisco-Oakland-San Jose; Los Angeles-Riverside-Orange County;  New York-Northern New Jersey-Long Island; Boston-Worcester-Lawrence-Lowell-Brockton; and Washington-Baltimore. The report also lists typical jobs, salaries and companies that have been active in the sector.

Cleantech, a catchall term for alternative energy, efficient power distribution and energy storage, is set to become the dominant investment for venture capital over the next few years, surpassing biotechnology and software, according to an article in the New York Times today. The Obama administration has pledged to $150 billion over the next decade, which it says could create 5 million jobs–far short of the 7.2 jobs wiped out during this recession. And if that were to happen, it would require massive retraining of the right skills.

Still, it’s encouraging to see cleantech generating excitement among investors. As noted by the Times, the successful start-ups today could be the big players tomorrow:

• GreatPoint Energy, which has developed a cheaper way to convert coal into natural gas. The company plans to break ground on a power plant in Houston next year. It counts Suncor Energy, Peabody Energy and Dow Chemical Co. as its investors.
• A123 Systems, a supplier of lithium ion batteries for electric cars.
• Tendril Networks, which develops software that links utilities to “smart” appliances in the home.

Things a moving along on the wind front as well. Today Duke Energy and the University of North Carolina at Chapel Hill announced they have signed a contract to place up to three demonstration wind turbines in the Pamlico Sound. The demonstration turbines may be the first turbines placed in water in the United States, according to the press release. Duke Energy will pay for the turbines and their installation. The turbines builds on a nine-month study completed in June 2009 by UNC for the North Carolina General Assembly which found “North Carolina is well positioned to develop utility-scale wind energy production.”