Published on January 25, 2008
Southern Ohio Renewable Energy Conference: Southern Ohio Renewable Energy Conference Jim Zuber Advanced Energy Manager Ohio Department of Development Ohio Energy Office November 14, 2007 Ohio Imports Most of Its Energy: Ohio Imports Most of Its Energy 89% of its Natural Gas 62% of its Coal 97% of its Oil and Petroleum . . . And in 2003, imported 210 trillion Btu of electricity Ohio’s Energy Mix: Ohio’s Energy Mix Energy Use Vs. Greenhouse Gas Emissions: Energy Use Vs. Greenhouse Gas Emissions National Electric Mix Vs. Ohio: National Electric Mix Vs. Ohio Ohio Emissions By Source: Ohio Emissions By Source Natural Gas Consumption: Natural Gas Consumption Natural Gas Price on the Rise: Natural Gas Price on the Rise Electric use in Ohio is on the increase, ~26% by 2026: Electric use in Ohio is on the increase, ~26% by 2026 Ohio Electricity Prices Expected to Rise: Ohio Electricity Prices Expected to Rise Average yearly increase on 2006 residential customer bills (based upon 1,000 kWh/month usage) Relationship Between Efficiency and Renewables: Relationship Between Efficiency and Renewables Wind Power for Ohio : Wind Power for Ohio Ohio has economically viable wind resource in parts of state Ohio job potential: with nationwide commitment to wind ~ 12,000 new jobs in manufacturing centers Rural wind development is focus Researching avian and bat impacts Exploring feasibility of development around and in Lake Erie Wind Energy: Wind Energy Generation of electricity from wind, typically 3-bladed turbine design Fastest growing segment of energy in world: Almost $20 billion annually worldwide, ~$4-5 billion in U.S. ~40% CAGR 1995-2005 Cheapest form of non-polluting renewable energy, competitive natural gas and new coal electric power generation Rural Wind Development Focus: Preserve, Protect, Develop, and Restore Resources: Rural Wind Development Focus: Preserve, Protect, Develop, and Restore Resources Limit and reduce pollution, air and water Enhance existing communities through job creation and property tax revenue Local property tax revenue potential: 100 MW can be ~ $500K to $1MM per year Reduce the need to withdraw water Minimize the loss of farmland due to lease payments from wind developers Land lease payments potential: 2-3% of gross revenue or $2500-$4000/MW/year Will be sited to mitigate wildlife impacts Wind is Big: Wind is Big Wind Turbine: Wind Turbine Wind Turbine: Wind Turbine Charles Brush, 1888 Cleveland: Charles Brush, 1888 Cleveland NASA Experimental Turbine, Sandusky, late 1970’s: NASA Experimental Turbine, Sandusky, late 1970’s AMP-Ohio JV6 Wind Farm: AMP-Ohio JV6 Wind Farm Ohio’s first (and still only) utility-scale wind farm: 2003 Four 1.8 MW wind turbines 7.2 MW total Partners: City of Bowling Green Wood County AMP-Ohio Green Mountain Energy Company Ohio Wind Resource: Ohio Wind Resource 66,000 megawatts of potential on-shore Similar magnitude off-shore in Lake Erie U.S. Wind Manufacturing Site Selection: U.S. Wind Manufacturing Site Selection Date Company State RPS? March 2006 Gamesa PA Yes August 2005 Clipper IA Yes April 2007 Acciona IA Yes August 2006 Siemens IA Yes Fall 2005 Suzlon MN Yes Nov. 2006 DeWind TX Yes April 2007 Vestas CO Yes Installed Wind Capacity (MW): Installed Wind Capacity (MW) Ohio: #2 in Wind Mfrg. Potential: Ohio: #2 in Wind Mfrg. Potential Ohio Suppliers to Wind Industry: Ohio Suppliers to Wind Industry Ohio’s Advantages: Ohio’s Advantages Wind industry sold out years ahead and continued rapid market growth anticipated U.S. is largest wind market in world, yet most equipment is manufactured in Europe and shipped across Atlantic at high cost Ohio has substantial resources to offer to wind equipment manufacturers New capacity decisions required soon by wind equipment manufacturers Next capacity expansion for wind equipment manufacturers might best be located in U.S. Within U.S., Ohio is prime location for next capacity expansion Solar Energy : Solar Energy Ohio is home to one of largest solar manufacturers in nation, First Solar, Perrysburg Demand for solar products at all time high Research underway at University of Toledo and other Ohio colleges Training and certification program at Owens Community College, Hocking College Ohio job potential: with 9600 MW expansion in solar nationwide: 1,223 jobs and $992 million in investments Ohio is 8th in nation for potential of new jobs related to solar PV deployment Ohio’s Solar Potential?: Ohio’s Solar Potential? If solar panels covered one half of one percent of the State, they could supply the equivalent of Ohio's yearly residential electricity load (43,280 million kWh) More realistically, this "sunpowered" tract of Ohio land 14.6 miles on a side (or 214 square miles) could also be dispersed across the Buckeye State (40,953 square miles) with smaller PV systems sited near or on building rooftops as distributed generation. Using commercially available, 12% efficient modules without storage, an acre of land optimally covered with PV around Dayton, Ohio could be expected to produce an estimated There is Sun in Ohio: There is Sun in Ohio Dayton, OH: Average 4.4 Peak Sun Hrs/Day December = 2.4 June & July = 5.6 Phoenix, AZ: Average 5.2 Sun Hrs/Day Solar Equipment: Solar Equipment These components provide the structural, monitoring, interconnection and safety features required for any electrical power system. Include: fuses, circuit breakers, switches, combiner boxes, mounting, wiring, meters and grounding Supply Chain Equipment: Supply Chain Equipment Mounting Hardware UniRac – Albuquerque, NM Sharp – new SRS product - ??? Direct Power & Water - Albuquerque, NM now a division of Preformed Line Products, Cleveland, OH Solar Modules Multi-crystal: Sharp – Memphis, TN Evergreen – Boston, MA Thin-film: First Solar, Perrysburg, OH Uni-Solar – Auburn Hills, MI Supply Chain Equipment: Supply Chain Equipment Major Distributor: DC Power Systems – Healdsburg, CA Services Local Ohio Electricians & Plumbers Local Ohio Financial & Legal services System Financing a real need/opportunity Partnerships Architectual firms – multiple Mechanical & Electrical Engineering: HEAPY – Dayton, OH Analysis Software: OnGrid Solar Energy Systems - What are Biofuels: What are Biofuels Ethanol Corn, Barley, Sorghum, Cheese Whey, Sugars Cellulosic: Wood Pulp, Corn Stover, etc. Biodiesel Vegetable Oils: Soybean, Sunflower, Palm, etc. Post-Consumer Oils: Yellow Grease Animal Fats and Wastes What is Ethanol: What is Ethanol Renewable fuel made from corn 10% blend needs no engine modifications E-85 -- alternative fuel -- defined by the U.S. Department of Energy Can be used in all flex-fuel vehicles What is Ethanol: What is Ethanol Produced in Ohio and nationwide Two blends available : E10 (10% ethanol and 90% gasoline) All gasoline powered automobiles are able to use E10 60 % of Ohio’s gasoline is blended E10 Pumps are no longer labeled so you may have it in your car right now. What is Ethanol: What is Ethanol Two blends available (cont’d): E85 (85% ethanol and 15% gasoline) Made to power Flex Fuel Vehicles (FFV’s) over 4 million in the US today and 200,000 in Ohio. (Source - Ohio BMV) Ohio currently has over 40 publicly accessible E85 pumps. 24 more stations have been awarded from HB245 funds so the total is expected to reach 70 pumps by the end of the year. Why do Biofuels Matter.: Why do Biofuels Matter. Inputs are produced locally, increasing demand for Ohio and US production. Displaces imported fuels/feedstocks. Reduces trade imbalances. Outputs can be consumed locally. In 2005, Ohio was the 5th largest ethanol user. 183m gallons ethanol requires 67m bu corn. Ohio produced 500m bu of corn in 2006. Benefits of Biofuels: Benefits of Biofuels Reduces our dependence on foreign oil (energy security) Creates economic development in Ohio’s rural communities Superior performance Fights global warming (environmental) Degrades in soil and water quickly Biofuels – Why the Interest ?: Biofuels – Why the Interest ? Higher fuel prices $90/barrel crude oil Desire to become energy independent Environmental benefits Performance Economic development Hurricane Katrina Energy Security Biofuels – Causes of Increase: Biofuels – Causes of Increase High fuel demand, high prices and uncertainty of oil supply, coupled with Presidential call to reduce “addiction to oil” spurred elevated interest Renewable Fuel Standard Mandate provides scheduled ethanol consumption guidelines until 2012 and a floor for consumption beyond that – likely to be extended US does not want to be “held hostage” by imported oil EZ, cheap and free-moving transportation, (e.g. automobiles) is a “Right of life” that we are unwilling to risk. Potential Impact in Ohio: Potential Impact in Ohio Increased Industrial Production in Rural Areas Most Production Facilities are Farmer-owned: Dividends remain locally, further boosting rural economies. Increased amount of value-add from corn & soybean processing remains in-state. Fuel price & price volatility is lowered: Lower transport costs Closer supplies Potential Impact in the U.S.: Potential Impact in the U.S. Increased rural development Decreased trade deficit 1/3 of US trade deficit is oil-related Reduced volatility of fuel prices Reduced GHG emissions Ethanol Economics: Ethanol Economics 50 MGY ethanol plant will annually generate the following economic benefits to the community in which it is located: Expand economic base by $189 million Generate additional $37.5 million of household income Support creation of as many as 1,106 permanent new jobs Generate at least $2.2 million in new tax revenue for state and local government Generate additional revenue estimated 8 to 10 cents / bushel Biomass: Biomass Biomass can: Fill the gap between energy demand and petroleum availability in the near term Coupled with conservation and increased vehicle efficiency lead to sustainable fuel systems Ohio In Action: Ohio In Action Ohio Agriculture Ohio Chemicals, $79.6 billion Plastics,Rubber $49 Billion Ohio’s Agricultural Output $79.6 Billion Ohio’s Chemicals, Plastics, Rubber Materials Output $49 Billion Ohio’s Future: Ohio’s Future Ohio has huge potential to provide biomass that can contribute alternative energy resources. Ohio has the scientific capabilities to develop technologies that convert biomass to energy efficiently.