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 |
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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