Vol. 4, No. 13
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May 1, 2007
Nevada's Online State News Journal
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Renewable Energy Sources
Discussed Among States
Reduction Of Greenhouse Gasses
At The Head Of Many Talks
by Johnny Gunn
Nevada Governor Jim Gibbons joined with other governors, most from the west, in an energy summit that was hosted by Utah Governor John Huntsman. The conference, sponsored by the NextGen Energy Council was held in Salt Lake City but Gibbons contributed by way of videoconference. Among those attending were Wyoming Governor Dave Freudenthal, Montana Governor Brian Schweitzer, and West Virginia Governor Joe Manchin. Montana, Wyoming, and West Virginia produce the most coal in this country, and while many spoke in favor of renewable energy sources, the emphasis was on coal production and use. For a complete look at the summit in retrospect, go to http://www.utahenergysummit.com
Gibbons pointed out the resources that are available in Nevada including solar, geothermal, and wind, but also said the use of clean coal is important to energy efficiency today. Many at the conference were inclined to discuss the use of coal as a means of weaning the country from foreign oil. Converting coal to diesel and jet fuel was high on many lists.
The gasification of coal, mostly misunderstood by the general public simply because it cannot be defined in non-technical terms is high on many scientific lists but not necessarily with politicians. The process breaks coal into its molecular structure then uses those molecules for uses other than polluting the air. Coal can be broken into several different substances including hydrogen, carbon dioxide, oxygen, and others. It could be a leading source of hydrogen as a fuel for automobiles, power plants, and heat generation. Combining hydrogen and oxygen simply produces water and considerable heat.
Arizona Senator and presidential candidate John McCain, speaking in New York recently said, “The world is already feeling the powerful effects of global warming and far more dire consequences are predicted if we let the growing deluge of greenhouse gas emissions continue, and wreak havoc with God’s creation.” Using local energy sources to break the hold of foreign oil is on the top of many ideas, but most agree it must come without further polluting of the atmosphere.
Besides carbon dioxide, coal fired power plants are the largest contributor of mercury to the atmosphere. While carbon dioxide is one of the greenhouse gasses that are believed to be contributing to atmospheric warming, mercury is highly toxic to humans and other animals, and finds its way into the food chain from several directions including by way of fish, milk, and produce.
Interestingly, there are enough coal reserves in this country to provide energy needs of the country for about 250 years, but the addition of hundreds of millions of tons of carbon dioxide to the atmosphere would create untold problems. Gibbons, along with other attendees at the conference felt it would be renewable resources that would come to the forefront. He spoke of deficiencies in transmission lines as one major problem to renewable energy use.
To be economical, an energy source must have transmission lines to deliver the product, and in too many places in Nevada, they simply don't exist. An irony of renewable energy production today is the hardboiled conservationist who demands the use of renewable energy and fights the building of transmission lines. The two must go together. In northern Nevada, there are several operating geothermal plants developing considerable energy, but there could be many more if transmission lines existed.
There are great expanses of open country in southern and central Nevada that could host many solar projects, similar to the Solargenix plant built in southern Nevada, but there are no major transmission lines to put the potential energy onto a grid. In the Mojave Desert of southern California large, efficient solar plants produce much power for metropolitan areas, but major transmission lines had to be built in order for it to happen.
The least acceptable source of renewable energy is from wind farms. The use of windmills at the individual level, for instance on ranches or farms is rarely argued, but wind farms are considered visually polluting, and create other environmental problems such as bird kill. As with any energy producing system, wind farms must be built with immediate access to transmission lines for economic efficiency.
In a report issued by the Congressional Research Service entitled "Greenhouse Gas Reductions, California Action and the Regional Greenhouse Gas Initiative Summary," a title almost as long as the report, California was hailed as a leader in pollution reduction. The report summarizes this way, "In the absence of a federal program requiring greenhouse gas reductions, a growing group of U.S. states are taking action in this arena. Significant actions have been undertaken in California and by a coalition of states from the Northeast and Mid-Atlantic regions.
"In 2004, California issued regulations to reduce greenhouse gases from motor vehicles. Eleven other states have formally adopted California’s new vehicle requirements. In 2006, California passed two climate change statutes. The first would establish a statewide cap on greenhouse gases. The second would effectively limit the use of coal-generated electricity in California. The state has also taken action to reduce the carbon intensity in its transportation fuels."
Sierra Pacific Resources has been looking for a means to tie its Nevada Power Company in the south with Sierra Pacific Power Company in the north with a transmission line to extend from White Pine County to Clark County. At this time, power in the south does not mingle with power in the north. Sierra Pacific Resources is also planning to build a 150-megawatt coal powered generating plant in White Pine County. The transmission line was designed so that excess power could be sold to California, but with the Golden State's restrictions on coal powered energy, that line might be in jeopardy.
Holding back much clean energy development is the cost of natural gas. In 2003 dollars, Nevada would have spent $1.5 billion to produce its energy with natural gas. In 2005 dollars, Nevada would have spent $221 million for coal, and in 2004 dollars, it would have spent $52 million for propane. In 2004 dollars, the state of Nevada used two billion gallons of diesel, jet fuel, and gasoline at a cost of about $6 billion.
The Federal Energy Regulatory Commission has said that Nevada has enough resources to be coal and oil independent, but a lack of transmission lines does not allow for the building of solar and geothermal energy plants. The grid to connect energy sources does not exist, and that is the major impediment to renewable energy growth in the Silver State. There are existing companies ready to develop geothermal and solar energy, but don't have the resources to both build the power plants and build long and expensive transmission lines to connect to major grids. A recent survey of Nevada's resources said the potential for solar energy is such that Nevada could probably supply the needs of the west if it were developed.
Nevada headquartered Ormat Technologies, Inc. has geothermal plants worldwide, including several in Nevada. The company is primarily engaged in geothermal and recovered energy and designs, develops, builds, owns, and operates from its main offices in Sparks. As with other renewable energy sources, those in geothermal production must have transmission sources at the plant site. One can't transfer the geothermal system to a better location.
Company CEO and President Dita Bronicki will be in New York on May 3d to speak at the Goldman Sachs Alternative Energy Conference 2007. According to a company spokesperson, the speech and other activities will be carried in a live webcast at http://www.ormat.com. Click on "Webcasts & Presentations" under the Investor Relations heading.
On May 2, Ormat Executive Vice-President Hezy Ram will speak at the Jefferies 3d Annual Clean Technology Conference, also being held in New York.
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