AN INTERNET PUBLICATION OF KLAUS EQUIPMENT COMPANY - PITTSBURGH PENNSYLVANIA

VOLUME 10 ISSUE 10    AUGUST NEWSLETTER 2009


IN THIS ISSUE                                      

PENNSYLVANIA OKs 8 RENEWABLE ENERGY PROJECTS

INDUSTRIAL TECHNOLOGIES PROGRAM- Chemical Industry of the Future        Topic Paper #5      Industrial Efficiency      Part 2

JAY SAYS



PENNSYLVANIA OKs 8 RENEWABLE ENERGY PROJECTS

July 24, 2009

Pennsylvania will triple its solar capacity with nearly $23 million in new grants and loans for companies throughout the state that are embracing the renewable energy industry. "From a 134-acre solar park in the northeast to hot water heaters for Pittsburgh firehouses, Pennsylvania is investing in its energy future," said Gov. Edward G. Rendell. Eight projects were approved recently for funding by the Commonwealth Financing Authority. The grants and loans are funded by the solar energy program, a key component of the $650 million Alternative Energy Investment Fund. The approved projects and their funding are as follows:

 The city of Pittsburgh, $47,000 grant toward a $94,000 project to install solar hot water heaters at five firehouses. City employees also will be trained on installation and the technology involved so they can help residents and businesses undertake similar projects.

Conshohocken-based Solar Park LLC, a $5.5 million grant for a 10-megawatt solar photovoltaic power plant in Nesquehoning Borough, part of a $78 million PA Solar Park that is being developed on 134 acres in Carbon County by Green Energy Capital Partners. The facility will generate enough electricity to power about 1,450 homes. Merck & Co., a $1 million grant toward an $11.3 million, 1.6-megawatt solar photovoltaic system that will generate about 22 percent of the electricity for its Upper Gwynedd Township facility. Solar Roofing Systems Inc., or SRS Energy, a $430,000 grant for the acquisition of $7.3 million in equipment to manufacture solar roofing tile at a manufacturing facility in Lansdale. Brown's Super Store Inc., a $1 million grant for a $5.1 million project to install a 695-kilowatt rooftop solar photovoltaic system on its ShopRite Supermarket in Cheltenham, which will greatly reduce electricity costs and help to preserve 283 jobs. Orwigsburg-based Meck Energy Partners LLC, a $1.6 million loan for a $5.4 million solar photovoltaic system on the roof of the H.H. Fessler Knitting Co. Inc's Deer Lake facility in West Brunswick Township.

Economic Growth Connection of Westmoreland, a $13.1 million loan on behalf of Solar Power Industries Inc. SPI is making a $40 million purchase of solar photovoltaic manufacturing equipment to build a 100-megawatt photovoltaic module manufacturing facility in Pleasant Township. SPI anticipates creating 375 new jobs and retaining 120 over the next three years.

Leg Up Farm Inc., a $4,500 grant toward a solar hot water system in its East Manchester Township developmental and therapeutic center for children with special needs. http://eponline.com/Articles/2009/07/24/Pennsylvania-OKs-8-Renewable-Energy-Projects.aspx?p=1



INDUSTRIAL TECHNOLOGIES PROGRAM - Chemical Industry of the Future                                                       Topic Paper # 5          Industrial Efficiency             Part 2

The AEO 2007 projects a wide range of energy intensity improvements in the manufacturing sector from 2005-2030, reflecting expected changes in that sector given current conditions and trends. For example, the energy intensity of the aluminum sector is expected to decrease as secondary smelting, a less energy-intensive process, becomes the dominant technology in the US. On the other hand, the energy intensity of the petroleum refining industry is expected to increase as coal to liquids comes into use.

The DOE base case projections project an almost 40% reduction in energy intensity per dollar of real GDP over the next 25 years, with a 5% increase in efficiency. (AEO 2006 Efficiency and Intensity Results from Paul Holtberg October 19 (figures and graph)).

Impediments to greater industrial efficiency
Price volatility is a barrier to adoption of efficiency projects. Since 1990, US policy has favored natural gas as an energy source for power plants. Over that time, consumption of natural gas for power production has grown at 4.5% per year, as compared to 1.9% for nuclear, 1.5% for coal and a contraction of 0.4% for petroleum (Table 7.2a. Electricity Net Generation from DOE web site). As a result, supply demand balances for the largest industrial fuel (natural gas) have become tight, leading to the volatility seen over the last several years. This volatility has increased the risk of investment
decisions, since the future environment for energy costs is highly uncertain. Projects which make money at $8/mmbtu may be unattractive at $4 or fantastic at $15 – all price levels seen in the period of October 1, 2005 – September 30 2006.

Despite the identified need for new efficiency technologies, US government funded energy R&D has fallen between 70% and 85% (depending on the source) in real terms from its peak in the late 1970’s (OECD, GAO). Government incentives for private R&D also are uncertain. Because private
sector R&D investments involve a multi-year time horizon, a year-by-year extension of the federal R&D tax credit is less effective in fostering private sector R&D activities than a clear, sustained policy.





Since many efficiency projects are relatively small, lack of technically trained resources becomes an important barrier to implementation. Permitting issues are often time intensive. Managers are faced with small projects with uncertain returns which might consume a lot of their employees scarce time. Many choose to devote their resources elsewhere. The relatively small number of technical graduates reduces the US’s ability to address efficiency opportunities. Without this leadership, the US manufacturing position will be weakened further.




References:
Annual Energy Review 2005; Energy Consumption by Sector/ Table 2.1a
http://www.eia.doe.gov/emeu/aer/consump.html  referenced 11/2/06
Bureau of Economic Analysis; Gross-Domestic-Product-by-Industry Accounts
http://www.bea.gov/bea/industry/gpotables/gpo_action.cfm?anon=313&table_id=18893&format_type=0   referenced 1/12/07
Bureau of Economic Analysis; “Current-dollar and "real" GDP, XLS”
http://www.bea.gov/bea/dn/home/gdp.htm  referenced 1/12/07
Ripe for the Picking: Have We Exhausted the Low-Hanging Fruit in the Industrial Sector? April 2006  http://aceee.org/pubs/ie061.pdf?CFID=1423683&CFTOKEN=60514162 referenced December 4, 2006



EPA Pushes Ahead on GHG Standards

by Roy Bigham

Posted: December 23, 2010
The EPA issued its plan for establishing greenhouse gas (GHG) pollution standards under the Clean Air Act in 2011. The agency looked at a number of sectors and is moving forward on GHG standards for fossil fuel power plants and petroleum refineries – two of the largest industrial sources, representing nearly 40 percent of the GHG pollution in the United States. The schedule issued in the Dec. 23, 2010 agreements provides a clear path forward for these sectors and is part of EPA’s common-sense approach to addressing GHGs from the largest industrial pollution sources.

"We are following through on our commitment to proceed in a measured and careful way to reduce GHG pollution that threatens the health and welfare of Americans, and contributes to climate change," said Administrator Lisa Jackson. "These standards will help American companies attract private investment to the clean energy upgrades that make our companies more competitive and create good jobs here at home."

Several states, local governments and environmental organizations sued the EPA over the agency’s failure to update the pollution standards for fossil fuel power plants and petroleum refineries, two of the largest source categories of GHG pollution in the United States. Under today’s agreement, the EPA will
propose standards
for power plants in July 2011 and for refineries in December 2011 and will issue final standards in May 2012 and November 2012, respectively.

This schedule will allow the agency to host listening sessions with the business community, states and other stakeholders in early 2011, well before the rulemaking process begins, as well as to solicit additional feedback during the routine notice and comment period. Together this feedback will lead to smart, cost-effective and protective standards that reflect the latest and best information.

The Clean Air Act requires the EPA to set industry-specific standards for new sources that emit significant quantities of harmful pollutants. These standards, called New Source Performance Standards (NSPS), set the level of pollution new facilities may emit and address air pollution from existing facilities. The Act allows flexible and innovative approaches that take into account cost, health and environmental impacts, and energy requirements. The agency also must periodically update these standards to reflect improvements in control technologies.

Earlier this year, the EPA issued a common-sense approach to GHG permitting for the largest industrial sources. This approach, the GHG permitting guidelines issued in November, and these standards will give power plants and refineries a clear and sensible path for addressing GHG pollution.

The EPA will accept public comment on these two agreements for 30 days following publication of notice in the
Federal Register.
www.pollutionengineering.com

JAY SAYS

Dear Reader,

A wise business owner once stated CASH is king in business.

I think ENERGY is king.  The company that proactively reduces their energy consumption and take advantage of a flexible annual purchasing contract wins on both fronts.  Let us help you with both actions.  Send an email to learn how to reduce your purchase price.

Best Regards,

Jay Klaus

Klaus Equipment Company

jklaus@klausequipment.com



Klaus Equipment Company
Phone: 724-444-3420
Fax: 724-444-3425
2866 West Bardonner Road,
Gibsonia, PA   15044


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