IN THIS ISSUE |
RIALTO PROJECT GAS GAINS FAVOR FOR PRODUCING ELECTRICITY JAY SAYS |
RIALTO PROJECT |
The Project Our proposed Rialto Renewable Energy Center (Rialto Project) will be located in Rialto, California. The facility is designed to produce approximately 600 barrels per day of pure renewable synthetic fuels and export approximately 35 megawatts of renewable electric power. The renewable power is expected to qualify under California's Renewable Portfolio Standard (RPS) program, which requires utilities to increase the amount of electric power they sell from qualified renewable-energy resources. The plant will be capable of providing enough electricity for approximately 30,000 homes.  Satellite view of Rialto Project site
RenDiesel®, the renewable synthetic diesel to be produced at the facility, meets all applicable fuels standards, is compatible with existing engines and pipelines and burns cleanly, with emissions of particulates and other regulated pollutants significantly lower than the emissions from the combustion of CARB ultra-low sulfur diesel. The carbon footprint of the Rialto plant is designed to be near zero as the fuels and power would be produced only from renewable feedstocks. The low carbon footprint of RenDiesel® would help the transportation sector meet targets established by the Low Carbon Fuel Standard Executive Order 1-S-07 to reduce the carbon intensity of transportation fuels by 2020. The project will use the Rentech-SilvaGas biomass gasification technology. Rentech's proprietary technology for the conditioning and clean-up of syngas will provide the next critical link in the technology chain after gasification. The conditioned syngas will be converted by the Rentech Process in a commercial scale reactor to finished, ultra-clean products such as synthetic diesel and naphtha using upgrading technologies under an alliance between Rentech and UOP, a Honeywell Company. Renewable electric power will be produced at the facility by using conventional high-efficiency gas turbine technology. The power is anticipated to be sold to local utilities under the California RPS program. Having completed preliminary scoping studies, Rentech has engaged Jacobs Engineering Group Inc. to conduct the feasibility engineering phase of the project, which is expected to be completed over the next several months. This work will advance project development activities including preliminary design and plot plans and provide construction cost estimates that would then continue to be refined throughout the subsequent detailed engineering phases of the project. Rentech has an exclusive option on a site for the Rialto Project within the proposed Rialto Eco-Industrial Park, which is located adjacent to an existing City of Rialto Wastewater Treatment Plant and EnerTech Environmental Regional Bio-Solids Processing Facility. The location allows the proposed Rialto Facility to take advantage of established infrastructure including access to water, wastewater disposal and zoning. The primary feedstock for the Rialto Project will be urban woody green waste such as yard clippings, for which Rentech is currently negotiating supply agreements. The location of the project will provide local green waste haulers with a cost-effective alternative to increasingly scarce landfills for the disposal of woody green waste. The plant is designed to also use biosolids for a portion of the feedstock which is expected to be provided under a supply agreement with EnerTech Environmental. Construction of the Rialto facility is expected to create approximately 250 jobs with at least 55 full-time regular jobs during operation, based on the preliminary design work completed to date. We have signed an unprecedented multi-year agreement to supply eight airlines with up to 1.5 million gallons per year of renewable synthetic diesel (RenDiesel®) from the Rialto Project for ground service equipment operations at Los Angeles International Airport (LAX). The initial purchasers under the agreement with Aircraft Service International Group (ASIG), the entity that provides fueling services to many airlines that operate at LAX, are Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Southwest Airlines, United Airlines, UPS Airlines and US Airways. Additional airline purchasers of RenDiesel can be added under the agreement with ASIG. http://www.rentechinc.com/rialto.php |
GAS GAINS FAVOR FOR PRODUCING ELECTRICITY |
| HOUSTON — Declining industrial electricity demand and an abundance of cheap natural gas will threaten coal's status as the dominant fuel to generate electric power, even after the economic recession ends. Power companies are reducing use of coal plants because of declining demand from heavy industry, the economic sector hardest hit by the recession. The loss of industrial "baseload" looks long term, analysts and executives say. Natural gas-fired plants, easier to stop and start, have remained busy serving commercial and household power demand, which varies hour by hour and has been less affected by the recession. "The recession's impact on our industrial customers has been significant," said Lonnie Carter, chief executive of Santee Cooper, South Carolina's state-owned power and water utility. "We anticipate that as the economy recovers from this economic downturn, long-term power needs will be lower." Meanwhile, generators' reasons for preferring coal for baseload — lower cost and more reliable supply — weaken with every shale gas discovery, which drives gas prices down and suggests gas will be plentiful for years to come. "We may be in a situation where we are redefining how much coal-fired generation we need," added Nick Akins, executive vice president of American Electric Power Co, one of the country's biggest coal burners. Coal's share of power generation has fallen from 49 percent in 2007 to 45 percent this year, said Luther Lu of FBR Capital Markets. Coal-fired generation fell 12.7 percent from June 2008 to June 2009, while gas-fired power remained steady, down only 0.3 percent, according to Energy Information Administration figures. The decline occurred despite the fact that coal remains cheaper than natural gas. Average gas prices have fallen to $3.83 per MMBtu in second quarter 2009 from $11.73 in the year-ago quarter, according to EIA data. Coal prices soared last year, but year-over-year have held steady at $2.24 per MMBtu in the second quarter of 2009 versus $2.04 in the second quarter of 2008, according to the EIA. Total electricity sales in June were 7.3 percent below the same month last year, but industrial consumption fell 14.6 percent, government data show. And industrial electricity demand growth will be the laggard out to 2030 in a generally slow-growth period for power, EIA data show. Demand is expected to grow 26 percent between 2007 and 2030, while industrial demand should grow 7 percent. In the same period, commercial demand will grow 38 percent and residential 20 percent, according to government estimates. Beyond the fundamentals of supply and demand, power company executives face government action to slow global warming, which will discourage use of coal in favor of gas. Gas emits about 50 percent less greenhouse gas than coal. "In a carbon-constrained world, there will be a fairly major shift toward gas," Matt Preston, senior coal analyst at Hill & Associates, said in an email. This array of factors has caused Santee Cooper, American Electric Power and other power companies to trim plans to expand coal-fired generation, and some companies, such as Progress Energy, are replacing coal plants with gas units. Coal may enjoy a brief curtain call, if the economy and industry rebound quickly, overwhelming the ability of natural gas, nuclear power and alternate energy sources to quickly respond to a demand surge, said Brian Gamble of Simmons & Co. But long term, coal's share will be eroded by cleaner energy sources, Gamble predicted. Coal executives and many analysts say low gas prices are temporary and President Obama's commitment to America's most plentiful fuel, and the technology to burn it cleanly, guarantee coal's future. "We firmly believe the stage is set for coal to outperform other fuels, once manufacturing activity begins even a slightly sustained increase," said Steve Leer, CEO of Arch Coal Inc, a leading coal producer. But gas can serve industrial baseload, too, and utility executives increasingly are exploring it along with expanded nuclear, solar and wind power, Lu said. "My sources tell me some utilities have actually gone out and spoken to gas producers to gain comfort whether this long-term supply picture is reliable," Lu said. Many say it will be. Electric Power Research Institute recently forecast coal's share of the power market will shrink to 38 percent by 2030, with gas and alternatives' shares growing. That's considerably less than the latest EIA forecast, which puts coal-fired generation at 45.7 percent in 2030. "Nothing is going to dominate like coal does today," said Revis James, director of EPRI's Energy Technology Assessment Center. http://www.pittsburghlive.com/x/pittsburghtrib/business/s_642010.html |
JAY SAYS |
Dear Reader, Natural Gas Prices are headed lower. - Natural gas prices posted significant decreases at both the spot and futures markets since last Wednesday.
- As of Friday, August 28, working gas in underground storage rose to 3,323 billion cubic feet (Bcf), with inventories exceeding the 5-year (2004-2008) average for this time of year by about 18 percent. Inventories are on pace to exceed the all-time high level of 3,565 recorded at the end of October 2007.
- The number of natural gas rigs drilling in the United States increased by 4 to 699 rigs for the week ended August 28, 2009, according to Baker Hughes, Incorporated. Despite this modest increase, the latest report marks the sixth consecutive week the rig count has increased. tonto.eia.doe.gov/oog/info/ngw/ngupdate.asp
Klaus Equipment Company can now direct your company to an alternative gas supplier to take advantage of the reduced costs. Send a request e-mail for more details. Best regards,
Jay Klaus
JKlaus@KlausEquipment.com
Klaus Equipment Company, Inc.
President
|
Klaus Equipment Company
Phone: 724-444-3420
Fax: 724-444-3425
2866 West Bardonner Road,
Gibsonia, PA 15044
|
|
|
