THE WORLD ENERGY CHALLENGE is A GREAT OPPORTUNITY FOR KANSAS
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Transcript of THE WORLD ENERGY CHALLENGE is A GREAT OPPORTUNITY FOR KANSAS
THE WORLD ENERGY CHALLENGE
isA GREAT OPPORTUNITY FOR
KANSAS
Almost All U.S. Ethanol Plants Are Located in the U.S. Midwest
Argonne National Laboratory: Energy Systems Division Seminar. August 2005.
U.S. Ethanol Plants and Capacities by State
IA (28) 1,796 MGYMN (16) 677 MGYNE (15) 781 MGYSD (14) 627 MGYKS (10) 360 MGYIL (7) 679 MGYWI (6) 280 MGYIN (5) 312 MGYND (4) 263 MGYMI (4) 212 MGYMO (4) 155 MGY
CA (4) 69 MGYCO (3) 85 MGYKY (2) 35 MGYTN (1) 67 MGYAZ (1) 55 MGYOR (1) 35 MGYNM (1) 30 MGYWY (1) 11 MGYOH (1) 4 MGYVA (1) unknown
Total U.S. Capacity = 6.4 BGYAdditional Capacity Under Construction = 6.0 BGY
Source: American Coalition for Ethanol; Renewable Fuels Association – July 2007
Biofuels Overview
5 Ethanol Plants arePermit Pending518 MGY
4 Ethanol Plants ArePermitted308 MGY
6 Ethanol Plants Under Construction
427 MGY
10 Ethanol Plants Existing
360 MGY
ETHANOLIn Kansas
*MGY: Million gallons per year
U.S. Ethanol Plants and Capacities by State
IA (28) 1,796 MGYMN (16) 677 MGYNE (15) 781 MGYSD (14) 627 MGYKS (10) 360 MGYIL (7) 679 MGYWI (6) 280 MGYIN (5) 312 MGYND (4) 263 MGYMI (4) 212 MGYMO (4) 155 MGY
CA (4) 69 MGYCO (3) 85 MGYKY (2) 35 MGYTN (1) 67 MGYAZ (1) 55 MGYOR (1) 35 MGYNM (1) 30 MGYWY (1) 11 MGYOH (1) 4 MGYVA (1) unknown
KS Today 787KS Tomorrow 1613
Total U.S. Capacity = 6.4 BGYAdditional Capacity Under Construction = 6.0 BGYSource: American Coalition for Ethanol; Renewable Fuels Association – July 2007
Energy Issues were prominently featured in State of the State Address by Governor Sebelius…
“Our goal is to produce 10 percent of our state’s electricity from wind power by 2010, and 20 percent by 2020. ”
….State of the State Address, Jan. 10, 2007
http://rredc.nrel.gov
Certainty Rating of the Wind Resource Estimates for Areas with Class 3 or Higher Wind
Power in the Contiguous United States
Wind Energy Projects
As of Dec 31, 2006
WIND PROJECT (County) DEVELOPER UTILITY SIZE YEAR_______
Jeffery Energy Center (Pottawatomie Co.) Westar Westar 1.5 MW 1999
Gray County Wind Farm (Gray Co.) FPL Energy Aqula 112.2 MW 2001
Elk River Wind Facility (Butler Co.) PPM Energy Empire 150 MW 2005
Spearville Wind Energy Facility (Ford Co.) enXco KCP&L 100.4 MW 2006
Smoky Hills Wind Farm (Ellsworth/Lincoln Cos) Tradewind Sunflower 50.4 MW 2007 (4th Qtr)
KC BPU 25 MW 2007 (4th Qtr)
Midwest 25.2 MW 2007 (4th Qtr)
Westar Announcement (2/26/07) RFP Due 4/2/07 Westar 500 MW 250 MW by 2008
250 MW by 2010
KCP&L Announcement (3/20/07) RFP Due 6/15/07 KCP&L 400 MW 100 MW by 2008
300 MW by 2012
Meridian Way Wind Farm Horizon Wind Energy, LLC Empire 201MW 2007
Kansas Wind Projects – In operation and announced
Compiled by Kansas Energy Office (April 2007)
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United States Europe Rest of World
1. Germany: 20952 MW2. Spain: 12500 MW3. United States: 12376 MW 4. India: 7093 MW5. Denmark: 3136 MW
Source: WindPower Monthly
World total July 2007: 78728 MW
Total Installed Wind CapacityTotal Installed Wind Capacity
People Want Renewable Energy!People Want Renewable Energy!
KANSAS AS A WIND EXPORTER
FOR IT TO HAPPEN
• New wind becomes cheaper than new coal• Congress passes a National RPS• Congress passes a Carbon Tax
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2007: New Wind
Depreciated CoalDepreciated Wind
Natural Gas (fuel only)
Wind Cost of EnergyWind Cost of Energy
In 2006, Wind Projects Built Since 1997 Were In 2006, Wind Projects Built Since 1997 Were Competitive with Wholesale Power Prices in Most RegionsCompetitive with Wholesale Power Prices in Most Regions
Case Study: Texas Case Study: Texas
Utilities and wind companies invested $1B in 2001 to build 912 MW of new wind power, resulting in:
• 2,500 quality jobs with a payroll of $75M
• $13.3M in tax revenues for schools and counties
• $2.5M in 2002 royalty income to landowners
• Another 2,900 indirect jobs as a result of the multiplier effect
• $4.6M increase in Pecos County property tax revenue in 2002
Case Study: MinnesotaCase Study: Minnesota
107-MW Minnesota wind project
• $500,000/yr in lease payments to farmers
• $611,000 in property taxes in 2000 = 13% of total county taxes
• 31 long-term local jobs and $909,000 in income from O&M (includes multiplier effect)
Case Study: IowaCase Study: Iowa
240-MW Iowa wind project
• $640,000/yr in lease payments to farmers ($2,000/turbine/yr)
• $2M/yr in property taxes• $5.5M/yr in O&M income• 40 long-term O&M jobs• 200 short-term
construction jobs• Doesn’t include multiplier
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Economic Impacts to Kansasfrom 7158 MW of new wind development by 2030
Direct Impacts
Payments to Landowners: • $20.8 million/year Local Property Tax Revenue:• $19 million/yearConstruction Phase:• 11,133 new construction jobs• $1.35B to local economiesOperational Phase:• 1805 new long-term jobs• $152M/yr to local economies
Indirect Impacts
Construction Phase:• 5,000 new jobs• $424M to local economiesOperational Phase:• 438 local jobs• $43 M/yr to local economies
Induced Impacts
Construction Phase:• 6,223 new jobs• $559 M to local economiesOperational Phase:• 850 local jobs• $76 M/yr to local economies
Wind energy’s economic “ripple effect”
Construction Phase = 1-2 yearsOperational Phase = 20+ years
Totals (construction + 20 yrs)Total economic benefit to Kansas = $7.8 billionNew local jobs during construction = over 23,000New long-term jobs for Kansans = over 3,000
HOW WE CAN MAKE THIS HAPPEN?HOW WE CAN MAKE THIS HAPPEN?
WE BRING EVERYONE WE BRING EVERYONE TOGETHER…TOGETHER…
ENVIRONMENTALISTS, UTILITIES, AND ENVIRONMENTALISTS, UTILITIES, AND CONSUMER ADVOCATES MUST COME CONSUMER ADVOCATES MUST COME
TOGETHER IN AN UNPRECEDENTED WAYTOGETHER IN AN UNPRECEDENTED WAY