Two bills have recently been introduced in the Senate that would expand or extend tax credit programs for offshore wind projects.
Senate Bill 3062 sponsored by Sen. Tom Carper (D-Del) would extend existing tax credits for offshore wind projects until January 1, 2020.
The Deepwater Offshore Wind Incentive Act (S. 3064 sponsored by Senators Carper and and Susan Collins (R-Maine) would offer tax credits to “deepwater offshore” wind projects. Some project developers believe that deepwater projects may be able to circumvent some of the environmental and NIMBY resistance tocloser-in offshore wind projects.
S. 3064 would increase the Section 45 production tax credit for “deepwater offshore” wind projects to 3.04 cents per kWh, with an inflation adjustment for years after 2010. The bill would also extend the placed in service date for qualifying projects to 2030 for Section 48 investment tax credit purposes.
The bill defines “deepwater offshore” projects as any project that is located in water with a depth of 60 meters or more (regardless of whether the project is in the internal or territorial waters of the U.S.)
Both bills have been referred to the Senate Finance Committee.
The National Renewable Energy Laboratory at Berkeley has published a new paper on the application of federal incentives on community wind projects. (Revealing the Hidden Value that the Federal Investment Tax Credit and the Treasury Cash Grant Provide to Community Wind Projects).
The paper provides a helpful summary of the investment tax credit, the Treasury cash grant program and ways those incentives can be monetized and harnessed for locally-owned wind power projects. Perhaps more importantly, though, the paper points out how the recession of 2008-09 may turn out to have been a blessing in disguise for community-owned wind projects.
Wind power grew dramatically during the middle 2000s, but most of these projects were investor-owned. For-profit developers’ demands for turbines and qualified engineers often resulted in a shortage in those resources for more cash-strapped developers. The downturn impacted many of these projects and resulted in an excess of supply over demand, allowing community-owned projects to begin to take up the slack.
The expansion of the investment tax credit and the availability of the Treasury cash grant have made it possible for community-based projects to get started with less upfront capital than in the past.
Our weekly compendium of renewable energy news and information from around the Web.
Trony Solar IPO
Chinese PV manufacturer Trony Solar is looking to raise $241 million in its planned initial public offering. J.P. Morgan and Credit Suisse are said to be the lead underwriters in the offering.
Atlanta Foodservice Runs on Biodiesel
The Atlanta division of U.S. Foodservice is now running on biodiesel. The Atlanta division’s 185 tractors began using biodiesel fuel early in November following the first 7,500-gallon delivery of B5. In addition to using biodiesel blends in the tractors, the fuel will power the four-cylinder, Thermo King Engines in its 210 refrigerated trailers.
Atlanta joins the U.S. Foodservice division in Plymouth, Minn., which uses B5, and the Streator, Ill., division which uses B11 in all but the winter months. The Minnesota facility has used biodiesel blends for years, the company stated, starting with B3 and switching to the state-mandated B5. “The division has had no performance or engine longevity issues,” a company spokesman said. U.S. Foodservice Minnesota is exploring a switch to B10 ahead of a state-mandate increase that takes effect in 2012.
U.S. Foodservice-Atlanta is active with and has a leadership role in several local, regional and state efforts to promote and protect the environment including the Georgia DNR Project, Partnership for a Sustainable Georgia and the Atlanta Zero Waste Zone.
Danish Ethanol
Inbicon unveiled a 1.4 MGY cellulosic ethanol demonstration plant in Denmark, using wheatstraw as its initial feedstock. Inbicon has been working in partnership with Danish governmental energy authorities and the unveiling was timed to coincide with the climate change conference in Copenhagen.
Portable Solar
The BBC ran a lengthy article on applications for portable solar power. Portable solar can be an efficient solution for devices that would ordinarily run on batteries or that would require new powers lines to connect to the grid, including street lights and signs.
Push for Extension of Biofuel Tax Credit
The National Biodiesel Board voiced its support for two bills pending in Congress that would extend the biofuel tax credit program that expires at the end of 2009. (H.R. 4070 and S.B. 1589). During visits with lawmakers, biodiesel industry leaders expressed strong support for S. 1589, the Biodiesel Tax Incentive Reform and Extension of Act, introduced by Senators Maria Cantwell (D-WA) and Charles Grassley (R-IA), and H.R. 4070, companion legislation introduced yesterday by Representatives Earl Pomeroy (D-ND) and John Shimkus (R-IL). This legislation would reform the biodiesel tax incentive by changing the current blenders excise tax credit to a production excise tax credit. This will improve administration of the incentive, eliminate potential abuses and improve tax compliance. The proposals would also extend the biodiesel tax incentive for five years, providing the certainty entrepreneurs need to create jobs and expand the use of biodiesel.
Comings Events in Renewable Energy
The Renewable Fuels Association is hosting its 15th Annual Ethanol Conference in Orland, Fla. on February 15-17, 2010. Panels will cover the indirect land use charges debate and the path forward for commercialization of biofuels. Registration before January 22 will get members a discounted entrace for $550 ($750 for non-members).
Registration is still open for the Canadian Biofuels Summit to be held in Vancouver, BC November 30 to December 2, 2009.
50 Hottest Companies in Bioenergy
Ballots are due today for the Biofuels Digest “50 Hottest Companies” competition.
Write to Us!
We’d love to hear from if you have an idea for a story or would simply like your renewable energy company covered. Write to us at “editor at renewableenergymemo dot com”.
According to the Wall Street Journal, Duke Energy is planning its ninth wind farm in the U.S. and its fourth in Wyoming.
The latest project, dubbed “Top of the World,” is a 200 MW project on 17,000 acres of private and public land Duke Energy holds under long-term lease. Duke is expecting the project to be in service beore 2011. The project will generate enough electricity to power the equivalent of 50,000 to 60,000 homes each year.
PacifiCorp, which operates as Rocky Mountain Power in Wyoming, will purchase the electricity generated by the project and the associated renewable energy credits as part of a 20-year power purchase agreement. PacifiCorp will get the same from a nearby project from Duke Energy, which is one-half the size of Top of the World.
“We’ve always believed Duke Energy could become a major player in the wind power industry if we adhered to our strategy for organic as well as opportunistic growth,” said Wouter van Kempen, president of Duke Energy Generation Services (DEGS), a business unit of Duke Energy that owns and develops renewable energy assets. “Including Top of the World – which will be our second-largest renewable energy facility – we’ll have committed to four new wind projects totaling more than 360 megawatts this year alone.”
The U.S. Occupational Safety & Health Administration (“OSHA”) today released a report claiming that renewable energy is safer than ‘conventional’ power generation and that switching to renewable power generation could save up to 1,300 lives each year.
The OSHA report said that renewable energies should improve the health of the 700,000 U.S. workers in the energy sector, citing researchers from the Medical College of Wisconsin. Their research is published in the August 19 issue of JAMA, the journal of the American Medical Association. Steven Sumner, M.D. and Peter Layde, M.D., professor of population health and co-director of the Injury Research Center at the college, examined occupational health risks to workers in renewable energy industries compared to those in fossil fuel industries.
They pointed out the risk of workplace injury and death among energy workers is a hidden cost (or “externality”) of energy production. Externalities of energy production include problems ranging from damage to the general environment to adverse health effects caused by pollution, injuries, and fatalties. Sumner and Layde concluded that wind and solar energy appear to lessen injury risks because the energy extraction phase is minimized or eliminated in wind or solar energy production. Biomass, comprised of biofuels, organic waste, and wood derived fuels, currently accounts for more than half of U.S. energy renewable consumption and does not appear to offer a significant safety benefit to U.S. workers relative to fossil fuels, they found.
“The energy sector remains one of the most dangerous industries for U.S. workers. A transition to renewable energy generation utilizing sources such as wind and solar could potentially eliminate 1,300 worker deaths over the coming decade,” Sumner said.
Sumitomo recently entered the U.S. wind market by purchasing a 42.5% stake in a wind farm in Stanton, TX.
Sumitomo purchased the stake from an American International Group Inc. (AIG). General Electric Co. (GE) holds another 42.5%, with the remaining 15% owned by Invenergy LLC, the fifth-largest wind power company in the U.S.
Our weekly compilation of renewable energy news covers the globe:
Hydrogen in the UK
Researchers at the University of Leeds are working on a method of generating hydrogen from municipal solid waste. Hydrogen is a valued feedstock because its combustion produces no emissions (only water). Primary researcher Dr Valerie Dupont explains that his process uses a catalytic reactor to mix a hydrocarbon-based fueld with plant or waste resources. The combination is mixed with steam to produce hydrogen and carbon dioxide, which are then separated.
Wind in Texas
Baryonyx claims to be building the largest offshore wind farm in the U.S. The Texas General Land Office says that it awarded the contract to Baryonyx to use Texas state lands to develop the wind farms, providing electric power for Texas schools, prisons and other public offices. Much seems uncertain about the project, however, as Baryonyx’s CEO, Douwe Fransens, was quoted in the Dallas Morning News to say that he “had no estimate” as to how many turbines would be involved in the project but that construction “could begin in two or three years.”
Feed in Tariffs in Arizona
Brian Coppa writes on some ongoing work by the Natioanl Renewable Energy Laboratory on the adoption of feed-in tariffs. He explains:
“A feed-in tariff is a revenue-neutral way of making the installation of renewable energy at the residential, commercial or utility level more appealing. The electricity that is generated is bought by the utility at above market prices. In some instances, the retail price of electricity purchased from this power source might be 40¢/kWh, which is not competitive with a conventional fossil fuel plant at 10¢/kWh; so the difference is distributed to all of the customers of the utility. For example, if $100,000 worth of green power is bought in a year by a utility that has 1,000,000 customers, then each of those customers will have 10¢ added on to their bill annually.”
The most recent of the NREL studies, released in June, concluded that, “The success of FIT (feed-in-tariff) policies around the world, notably in Europe, suggests that they will continue to grow in importance in the United States, as evidence mounts that they provide an effective framework for the promotion of RE development and job creation.”
RECS in Ohio
Dayton Power & Light in Dayton, Ohio, issued a request for proposals for the sale of renewable energy certificates (or RECs) that would satisfy the requirements of Ohio Amended Substitute Senate Bill 221.
Canadians Invest in Iceland
Magma Energy Corp., a publicly-traded company in Canada, announced that it would invest $40 million in HS Orka, a privately-held company in Iceland that develops geothermal power. Analysts said that the investment was intended, in part, to act as a hedge against the possible implementation of a cap and trade system.
Solar Power in Africa
The NY Times reported on an effort by the Desertec Industrial Initiative to bring together a consortium of investors to develop a massive solar power system in the sun-baked deserts of North Africa. Desertec is financing in part by a number of German companies, including Siemens and Munich Re. Desertec’s ambitious plan calls for a network of solar, hydropower and other renewable resources to be developed through North Africa and the Mediterranean region.
Biomass Critics in Massachusetts
The Boston Globe carried a piece on critics of biomass in New England. It describes local community groups and some environmentalists voicing concerns that growth in biomass will spark the need (forgive the pun) for expanded logging.
Geothermal in Australia
The Australian Academy of Science has posted a fascinating background piece on geothermal opportunities in Australia. The white paper describes the geologic features of Australia that make geothermal promising and how geothermal power could become a significant part of Australia’s baseload production capacity.
Wind in Antarctica
Professor Matthew Traum describes how a new research site in Antarctica is being powered by wind energy. He describes how turbines from Proven Energy are being used in a land where the wind can reach 200 mph to power the Princess Elisabeth research station.
Next Week
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The State of Massachusetts has awarded $2 million to nine wind energy projects around the state. (Forbes).
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