Powerpoint Presentation: Terrestrial Renewable Energy · PDF fileTerrestrial Renewable Energy...
Transcript of Powerpoint Presentation: Terrestrial Renewable Energy · PDF fileTerrestrial Renewable Energy...
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Terrestrial Renewable EnergyAnd Biofuels
Alfred J. CavalloUS DHS EML
201 Varick St, 5th FloorNew York, NY 10014
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PROPOSAL:
A Modern Industrial SocietyCan Be Fully Powered
UsingTerrestrial Renewable Resources
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Renewable Resource Base
• Immense: for example• US Wind resource equivalent to 5-10x
current average electric consumption• US agricultural land sufficient to yield
liquid fuels to power fuel-efficienttransportation fleet
• Solar thermal/PV resource large
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Most Promising Renewables
• Wind– Excellent technology; 30 GW Installed– Moving Offshore in Europe
• Solar Thermal– Luz Parabolic Concentrators Proven
• Biofuels– Brazilian Ethanol Program
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Renewable Energy Not Taken Seriously:By Utilities, By Oil CompaniesBy Renewable energy advocates
Challenges:Technical (Transmission, Storage)Externalities do not countRelative Profits (liquid fuels especially)
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APPROACH
Renewable Energy (electricity, fuel)MUST be:• Affordable (not necessarily cheap)• Technically equivalent to other
competitors• Profitable for manufacturers, utilities
(Necessary but not sufficient)
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BIOFUELS• Ethanol from corn (US farm subsidy)• Biomass to Syngas to fuels
Biomass+O2 -> CO+nH2+heatCO+mH2 ->(catalyst, FT process) Fuels(similar to GTL process for monetizingstranded natural gas)
• Ethanol and Methanol from non-corn crops(energy crops, agricultural waste)
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Example: Brazil
• Successful program to produce ethanol fromsugarcane
• Cost is the same as gasoline (boe)BUT:
Production flat over past decadePetroleum Consumption up 40% Production x2
WHY??
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NEWS FLASH
• London, June 26 - The Beyond PetroleumCompany (aka BP) today signed a formalagreement to invest $6.15 billion in a jointventure to produce biofuels in Russia.
• The political importance of the deal wasunderscored by the appearance of PrimeMinister Tony Blair and President Putin at abiofuels conference here today.
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UNDERSTAND THE MARKETS
How profitable is this business?"Non-OPEC finding and development
costs dropped from $22/bbl in 1981 to$6/bbl in 2001 (2001$)."
E. Baird, President and CEO,Schlumberger Ltd.
Fossil Fuels, The Key to Sustainable Development,World Energy, 2003, Vol 6, 1, 34-41.
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Wind Turbine Technology
• 30,000 MW Installed ($30 Billion)• Produced on assembly lines in large
factories• Highly competitive• European private enterprise R&D• Excellent reliability• 4.5 MW machines under development
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Compressed Air Energy Storage(CAES)
• Proven technology; existing plants• Gas Turbine (simple, inexpensive)• Underground Storage (invisible)• 3D Seismography• Porous rock, solution mined caverns• Suitable geology widely available• Seasonal Storage economical
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CAES
• About 65% of gas turbine output used tocompress air at inlet to combustor
• Compressed air stored underground,eliminating need to compress air.
• World’s best kept secret energy storagetechnology.
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Mechanics of CAES – background
Natural Gas12,000 BTU/kWh
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Mechanics of CAES – generation
Natural Gas3,800
BTU/kWh
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Utility Wind/CAES Systems• Wind generated electricity most economical
renewable energy.• Capacity factor designed to produce lowest
local cost of electricity (0.3).• Capacity factor can be (0.5) for 10%
increase in local COE.• Baseload Wind/CAES with transmission for
10-15% increase in delivered COE.
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Iowa Wind/CAES Project
• Project Template– Demonstration Project– Public private partnership– Special appropriation (earmark) outside of
normal channels through CongressionalDelegation
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IOWA WIND/CAES Plant
Glacial Drift
Devonian Carbonates
Maquoketa Shale
Galena
Decorah-Platteville
St. Peter (Storage Zone)
Prairie Du Chein
Jordan
Eau Clair Sand & Shale
Mt. Simon Sandstone
Glacial Drift
Devonian Carbonates
Maquoketa Shale
Galena
Decorah-Platteville
St. Peter (Storage Zone)
Prairie Du Chein
Jordan
Eau Clair Sand & Shale
Mt. Simon Sandstone
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Electric PowerSubstation at CAES
Power Plant
161 kV Transmission Lineto Webster Substation for
Delivery of Power toUtility Grid
Injection wells toaquifer strata
Compressed air bubble
Ground Level
100-200 MWCAES Power
Plant
Natural GasPipeline to
Pressure RegulationEquipment & Pipeline
Underground and overhead24 kV collection circuits
for delivering wind powerdirectly to CAES substation
Diagram of ProposedWind – CAES Power Plant
Near Fort Dodge, Iowa
TAW 12 / 3 / 2002
Compressed NaturalGas bubble
25 - 400 MWWind Generation
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The St. PeterAquifer can beused for storingbothcompressed airand natural gas.Due to theshape of theaquifer, about 8BCF ofcompressed airand 2 BCF ofnatural gascould be storedin the sameaquifer.
Compressed Air Natural Gas
St. Peter Aquifer470 PSIA, 30 BCF
Jordon Aquifer632 PSIA, 4 BCF
Franconia Aquifer750 PSIA, 26 BCF
Eau Claire Aquifer777 PSIA, 16.6 BCF
Eau Claire Mt. Simon825 PSIA, 26 BCF
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Comparison of Installation and Operation CostInstallation Operating Cost Delivered
Cost Fixed Dispatch Cost ofCosts Costs Energy
$ / kW $/kW-Yr $ / Mwh $ / Mwh200 MW CAES Plant, No
Wind $625 $22 $27.5 $57 at 28% C.F.
200 MW Simple Cycle Combustion Turbine $400 $10 $55.0 $76 at
28% C.F.250 MW Combined Cycle
Plant $575 $20 $29.0 $57 at 28% C.F.
New Coal Unit Operated at Intermediate CF $1,700 $15 $10.0 $68 at
28% CF200 MW CAES + 400 MW
Wind Plant $2,200 Levelized Cost = $38 at 75% CF
New Coal Unit at Base Load CF $1,700 Levelized Cost = $34 at
75% CFNew Coal Unit at Base Load
CF with Climate Change $1,700 Levelized Cost = $43 at 75% CF
Based on $4.00 per MMBTU Gas Price, $12.5/Mwh off-peak energy for charging CAES, climate change adder is $15/ton of CO2, Green tag revenue of $5/Mwh
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Other revenue offsets
• Ancillary service revenue potential (examples)
– Regulation = ± 2.50/MWH (Cal. ISO 9/98 – 9/99)
– Spinning reserves = $6.23/MWH (Cal. ISO 9/98 –9/99)
• Green tag value ± $5/MWH
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Status of Iowa Project
• Iowa Association of Municipal Utilities hasraised internally and spent over $600k toinvestigate the concept.
• 3D Seismology of Storage Structurescomplete.
• Decision to proceed in August.
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Conclusions
• Renewable resources (intermittent and biomass)can provide electricity and fuels that are:– Affordable– Technically competitive– Profitable
Significant barriers remain:Cannot hope to match profitability of competing systems