Plunkett's Renewable, Alt. & Hydro. Energy Industry Almanac 2012 : Renewable, Alternative & Hydrogen Energy Industry Market Research, Statistics, Trends & Leading Companies 9781608799206

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PLUNKETT’S RENEWABLE, ALTERNATIVE & HYDROGEN ENERGY INDUSTRY ALMANAC 2012 The only comprehensive guide to the alternative energy industry

Jack W. Plunkett

Published by: Plunkett Research®, Ltd., Houston, Texas www.plunkettresearch.com

PLUNKETT’S RENEWABLE, ALTERNATIVE & HYDROGEN ENERGY INDUSTRY ALMANAC 2012 Editor and Publisher: Jack W. Plunkett

Executive Editor and Database Manager: Martha Burgher Plunkett

Information Technology Manager: Wenping Guo

Senior Editor and Researcher: Jill Steinberg

Information Technology Intern: Danil K. Safin

Editors, Researchers and Assistants: Keith Beeman, III Kalonji Bobb Elizabeth Braddock Xiaowen Chen Jamey Crane Jeremy Faulk Larissa Matin Isaac Snider Suzanne Zarosky

Video & Graphics Manager: Geoffrey Trudeau

Enterprise Accounts Managers: Emily Hurley Kelly Burke

Special Thanks to: American Wind Energy Association BP plc, BP Statistical Reviews BTM Consulting APS Global Wind Energy Council International Energy Agency International Geothermal Association U.S. Department of Energy, and the editors and analysts at the Energy Information Administration and the Alternative Fuels Data

Center U.S. National Science Foundation

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Copyright © 2012, Plunkett Research, Ltd. All rights reserved. No part of this book may be reproduced or transmitted in any form by any means, electronic or mechanical, including by photocopying or by any information storage or retrieval system, without the written permission of the publisher.

Published by: Plunkett Research, Ltd. P.O. Drawer 541737 Houston, Texas 77254-1737 Phone: 713.932.0000 Fax: 713.932.7080 Internet: www.plunkettresearch.com ISBN13 # 978-1-60879-920-6 End-User License Agreement, Limited Warranty & Limitation of Liability Important, read carefully: This agreement is a legal agreement between you (whether as an individual or an organization) and Plunkett Research, Ltd. By installing, copying, downloading, accessing or otherwise using this PDF or electronic file (the “Plunkett Data”), you agree to be bound by the terms of this Agreement. If you do not agree to the terms of this Agreement, do not install or use the Plunkett Data. The information (the "Data" or the "Plunkett Data") contained in this electronic file or any derivative thereof is the property of Plunkett Research, Ltd. Copyright laws and international copyright treaties, as well as other intellectual property laws and treaties, protect the Plunkett Data. LIMITED RIGHTS TO INSTALL DATA ON ELECTRONIC DEVICES: Plunkett Research, Ltd. grants you a non-exclusive license to use and and/or install this Data, including installation of electronic files on one individual desktop computer AND on one laptop computer AND one mobile device such as a cellular mobile telephone or an ebook reader. This is a limited license, which applies to a single user. Organizations desiring multi-user licenses may purchase additional rights at reasonable cost by contacting Plunkett Research, Ltd., 713.932.0000, www.plunkettresearch.com, email: [email protected]. LIMITED RIGHTS TO EXPORT OR COPY DATA, SUBJECT TO CONTINUED COPYRIGHT NOTICE: Limited exporting or copying of certain limited amounts of Data for creation of mailing lists, summaries and contact lists is allowed, PROVIDED THAT: 1) The exported Data is for use by one organization, company or individual only. 2) The exported Data will not be re-sold, posted to an Internet-based file, commercially published, or broadly distributed outside of the individual/organization/corporation that has purchased the Plunkett Data. 3) Broad use, multi-premises use, or sharing outside of the individual/organization/corporation that purchased the Plunkett Data is not allowed. 4) Violators will be subject to all penalties allowed by law. Rights under this license may not be sold or transferred. Data which may be exported or copied under the rights conferred through this paragraph may consist of any of the following: i. Up to 400 words of text; ii. Company names, addresses, telephone numbers, and executives with job titles; iii. Up to 2 tables or charts,

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PLUNKETT’S RENEWABLE, ALTERNATIVE & HYDROGEN ENERGY INDUSTRY ALMANAC 2012 CONTENTS A Short Renewable, Alternative & Hydrogen Energy Industry Glossary Introduction How to Use This Book Chapter 1: Major Trends Affecting the Renewable, Alternative & Hydrogen Energy Industry 1) Introduction 2) Solar Power and Photovoltaics 3) Wind Power 4) Hydroelectric Power 5) Geothermal Power 6) Biomass, Waste-to-Energy, Waste Methane and Biofuels such as Biodiesel 7) Ethanol Production Soared, But U.S. Federal Subsidy in Question 8) Tidal Power 9) Fuel Cell and Hydrogen Power Research Continues 10) China Becomes a Leader in Wind and Solar Equipment and Installed Capacity 11) Electric Cars and Plug-in Hybrids (PHEVs) Enter Market in Low Numbers 12) Major Research in Advanced Lithium Batteries 13) Natural Gas Powered Vehicles Off to a Slow Start 14) Homes and Commercial Buildings Go Green 15) Proposals for U.S. Electricity Grid Enhancements Include a “Smart Grid,” Regional Transmission Organizations (RTOs) and Technologies such as Flow Cell Batteries 16) The Industry Takes a New Look at Nuclear Power 17) Nanotechnology Sees Applications in Fuel Cells and Solar Power/Micro Fuel Cells to Power Mobile Devices 18) Polymers Enable New Display Technologies with PLEDs/May Hold Key to High Efficiency Polymer Solar Cells (PV) 19) Clean Coal and Coal Gasification Technologies Advance/Carbon Capture (CCS) Proves Costly 20) Production of Synthetic Crude from Kerogen Trapped in Shale Advances Through New Technologies 21) Superconductivity Comes of Age Chapter 2: Renewable, Alternative & Hydrogen Energy Industry Statistics Global Alternative Energy Industry Overview U.S. Alternative Energy Industry Overview Approximate Energy Unit Conversion Factors Average Heat Content of Selected Biomass Fuels Biomass Energy Resource Hierarchy Comparison of Alternative Fuels with Gasoline & Diesel Continued on next page

x 1 3 7 7 10 14 16 16 18 19 23 24 27 27 31 33 33 35 38 43 44 44 46 47 49 50 51 52 53 54 55

Continued from previous page

Estimated Number of Alternative Fueled Vehicles in Use in the U.S., by Fuel Type: 2005-2009 World Total Primary Energy Consumption by Region: 2006-2035 World Consumption of Hydroelectricity & Other Renewable Energy by Region: 2006-2035 Share of Electricity Generation by Energy Source, U.S.: Projections, 1980-2035 Energy Consumption by Source & Sector, U.S.: 2010 Primary Energy Flow by Source & Sector, U.S.: 2010 Total Electrical Power Generation by Fuel Type, U.S.: 1981-1st 7 Months of 2011 Net Electricity Generation from Conventional Hydropower by Sector & Region, U.S.: 2009-2010 U.S. Historical Hydroelectric Generation Compared to 16-Year Average for 1995-2010 Energy Production by Fossil Fuels & Nuclear Power, U.S.: Selected Years, 1950-2010 Energy Production by Renewable Energy, U.S.: Selected Years, 1950-2010 Renewable Energy Consumption by Source, U.S.: Selected Years, 1950-2010 Renewable Energy Consumption in the Residential, Commercial & Industrial Sectors, U.S.: 2004-2010 Renewable Energy Consumption in the Transportation & Electric Power Sectors, U.S.: 2004-2010 Summary of Fuel Ethanol Production, U.S.: 2010 The 15 Largest Nuclear Power Plants in the U.S.: 2010 Top 10 Countries by Installed Wind Generating Capacity: 2010 Top 15 U.S. States by Installed Wind Generating Capacity: 2010 Shipments of Photovoltaic Cells & Modules by Market Sector, End Use & Type, U.S.: 2008-2009 Shipments of Solar Thermal Collectors, U.S., 2000-2009 U.S. Department of Energy Funding for Scientific Research: 2010-2012 Federal Research & Development (R&D) & R&D Plant Funding for Energy, U.S.: Fiscal Years 2009-2011 Chapter 3: Important Renewable, Alternative & Hydrogen Energy Industry Contacts

57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79

(Addresses, Phone Numbers and Internet Sites) Chapter 4: THE RENEWABLE ENERGY 300: Who They Are and How They Were Chosen Industry List, With Codes Index of Companies Within Industry Groups Alphabetical Index Index of Headquarters Location by U.S. State Index of Non-U.S. Headquarters Location by Country Index by Regions of the U.S. Where the Firms Have Locations Index of Firms with International Operations Individual Data Profiles on Each of THE RENEWABLE ENERGY 300 Additional Indexes Index of Hot Spots for Advancement for Women/Minorities Index by Subsidiaries, Brand Names and Selected Affiliations

117 118 120 128 131 134 136 142 145 464 465

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A Short Renewable, Alternative & Hydrogen Energy Industry Glossary 10-K: An annual report filed by publicly held companies. It provides a comprehensive overview of the company's business and its finances. By law, it must contain specific information and follow a given form, the “Annual Report on Form 10-K.” The U.S. Securities and Exchange Commission requires that it be filed within 90 days after fiscal year end. However, these reports are often filed late due to extenuating circumstances. Variations of a 10-K are often filed to indicate amendments and changes. Most publicly held companies also publish an “annual report” that is not on Form 10-K. These annual reports are more informal and are frequently used by a company to enhance its image with customers, investors and industry peers. Alcohol: The family name of a group of organic chemical compounds composed of carbon, hydrogen and oxygen. The series of molecules vary in chain length and are composed of a hydrocarbon plus a hydroxyl group. Alcohols include methanol and ethanol. Alcohol is frequently used in fuel, organic solvents, anti-freeze and beverages. Also see “Ethanol.” Alternating Current (AC): An electric current that reverses its direction at regularly recurring intervals, usually 50 or 60 times per second.

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goals of improving national energy security by displacing imported oil; improving air quality through the development and widespread use of alternative fuels for transportation and increasing the production of alternative fuel vehicles. Alternative Motor Fuels Act of 1988 (AMFA): Public Law 100-494. Encourages the development, production and demonstration of alternative motor fuels and alternative fuel vehicles. Alternative-Fuel Provider: A fuel provider (or any affiliate or business unit under its control) is an alternative-fuel provider if its principal business is producing, storing, refining, processing, transporting, distributing, importing or selling (at wholesale or retail) any alternative fuel (other than electricity); or generating, transmitting, importing or selling (at wholesale or retail) electricity; or if that fuel provider produces, imports, or produces and imports (in combination) an average of 50,000 barrels per day of petroleum, and 30% (a substantial portion) or more of its gross annual revenues are derived from producing alternative fuels. Amorphous Silicon: An alloy of silica and hydrogen, with a disordered, noncrystalline internal atomic arrangement, that can be deposited in thin layers (a few micrometers in thickness) by a number of deposition methods to produce thin-film photovoltaic cells on glass, metal or plastic substrates. Anhydrous: Describes a compound that does not contain any water. Ethanol produced for fuel use is often referred to as anhydrous ethanol, as it has had almost all water removed.

Alternative Fuel: Includes methanol, denatured ethanol and other alcohols, separately or in mixtures of 85% by volume or more with gasoline or other fuels, CNG, LNG, LPG, hydrogen, coal derived liquid fuels, fuels other than alcohols derived from biological materials, electricity, neat biodiesel, or any other fuel determined to be substantially not petroleum and yielding substantial energy security benefits and substantial environmental benefits. It is defined pursuant to the EPACT (Energy Policy Act of 1992), alternative fuels.

APAC: Asia Pacific Advisory Committee. A multicountry committee representing the Asia and Pacific region.

Alternative Fuels Data Center (AFDC): A program sponsored by the Department of Energy to collect emissions, operational and maintenance data on all types of alternative fuel vehicles across the country.

Barrel (Petroleum): A unit of volume equal to 42 U.S. gallons.

Alternative Fuels Utilization Program (AFUP): A program managed by Department of Energy with the

Applied Research: The application of compounds, processes, materials or other items discovered during basic research to practical uses. The goal is to move discoveries along to the final development phase.

Barrels of Oil Equivalent (BOE): A measure of the energy of non-oil fuels. For example, a BOE of natural gas is roughly 6,000 cubic feet. The measure

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is derived by assessing the amount of a fuel required to generate the same heat content as a typical barrel of oil. Basic Research: Attempts to discover compounds, materials, processes or other items that may be largely or entirely new and/or unique. Basic research may start with a theoretical concept that has yet to be proven. The goal is to create discoveries that can be moved along to applied research. Basic research is sometimes referred to as “blue sky” research. Bbl: See “Barrel (Petroleum).”

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through the use of enzymes that are created through biotechnology. Also, see “Ethanol.” Biomass: Organic, non-fossil material of biological origin constituting a renewable energy source. The biomass can be burnt as fuel in a system that creates steam to turn a turbine, generating electricity. For example, biomass can include wood chips and agricultural crops. Biorefinery: A refinery that produces fuels from biomass. These fuels may include bioethanol (produced from corn or other plant matter) or biodiesel (produced from plant or animal matter).

Bcf: One billion cubic feet. Bcfe: One billion cubic feet of natural gas equivalent. Bi-Fuel Vehicle: A vehicle with two separate fuel systems designed to run either on an alternative fuel, or on gasoline or diesel, using only one fuel at a time. Bi-fuel vehicles are referred to as “dual-fuel” vehicles in the CAA and EPACT. Binary Cycle Generation: A method of geothermal electricity generation where lower-temperature geothermal sources are tapped. The geothermal steam source is used to heat another liquid that has a lower boiling point, which then drives the turbine. Also see “Flash Steam Generation.”

Bitumen: A naturally occurring viscous mixture, mainly of hydrocarbons heavier than pentane, that may contain sulfur compounds. Also, see “Tar Sands (Oil Sands).” Boiling Water Reactor: A type of nuclear power reactor that uses ordinary water for both the coolant and the neutron moderator. The steam is used to directly produce electricity through generators. BPO: See “Business Process Outsourcing (BPO).”

Biodiesel: A fuel derived when glycerin is separated from vegetable oils or animal fats. The resulting byproducts are methyl esters (the chemical name for biodiesel) and glycerin which can be used in soaps and cleaning products. It has lower emissions than petroleum diesel and is currently used as an additive to that fuel since it helps with lubricity.

Breeder Reactor: A breeder reactor is a nuclear plant that produces more fissile material (such as U235 or plutonium) that it actually consumes. A Fast Breeder Reactor (FBR), once initially started, can utilize depleted uranium from traditional reactors as fuel, thus helping to alleviate the problem of storing spent nuclear fuel rods. This method is used in many nations, but not in the U.S. America does not use FBRs because they create as a byproduct weaponsgrade plutonium. A Thermal Breeder Reactor (TBR), once started with enriched uranium or other fissile material, can then be kept running with thorium (a chemical element that is radioactive and found in abundance in nature). Some researchers consider a TBR to be the ultimate, safest, most efficient type of nuclear reactor, due to its use of low-cost thorium as fuel.

Bioenergy: Useful, renewable energy produced from organic matter, which may either be used directly as a fuel or processed into liquids and gases. See “Biomass.”

British Thermal Unit (Btu): The quantity of heat needed to raise the temperature of 1 pound of water by 1 degree Fahrenheit at or near 39.2 degrees Fahrenheit.

Bioethanol: A fuel produced by the fermentation of plant matter such as corn. Fermentation is enhanced

Business Process Outsourcing (BPO): The process of hiring another company to handle business activities. BPO is one of the fastest-growing

Biochemical Conversion: The use of enzymes and catalysts to change biological substances chemically to produce energy products. The digestion of organic wastes or sewage by microorganisms to produce methane is an example of biochemical conversion.

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segments in the offshoring sector. Services include human resources management, billing and purchasing and call centers, as well as many types of customer service or marketing activities, depending on the industry involved. Also, see “Knowledge Process Outsourcing (KPO).”

particular companies and/or their industries. The “trade” part of cap and trade allows companies that operate efficiently on a carbon basis, and thereby emit a lower amount of carbon than law allows, to sell or trade the unused part of their carbon allowances to firms that are less efficient.

Butane: A normally gaseous straight-chain or branch-chain hydrocarbon (C4H10), extracted from natural gas or refinery gas streams. It includes isobutane and normal butane.

Capacity Factor: The ratio of the electrical energy produced by a generating unit for a certain period of time to the electrical energy that could have been produced at continuous full-power operation during the same period.

Butanol (Biobutanol): Butyl alcohol, sometimes used as a solvent. In the form of biobutanol, it is an ethanol substitute, generally derived from sugar beets to be used as a fuel additive.

Capex: Capital expenditures.

CAES: Compressed Air Energy Storage.

Captive Offshoring: Used to describe a companyowned offshore operation. For example, Microsoft owns and operates significant captive offshore research and development centers in China and elsewhere that are offshore from Microsoft's U.S. home base. Also see “Offshoring.”

CAFTA-DR: See “Central American-Dominican Republic Free Trade Agreement (CAFTA-DR).”

Carbon Capture and Storage: See “Carbon Sequestration (CCS).”

California Air Resources Board (CARB): The state agency that regulates the air quality in California. Air quality regulations established by CARB are often stricter than those set by the federal government.

Carbon Dioxide (CO2): A product of combustion that has become an environmental concern in recent years. CO2 does not directly impair human health but is a “greenhouse gas” that traps the earth’s heat and contributes to the potential for global warming.

Butyl Alcohol: Alcohol derived from butane that is used in organic synthesis and as a solvent.

California Low-Emission Vehicle Program: A state requirement for automakers to produce vehicles with fewer emissions than current EPA standards. The five categories of California Low-Emission Vehicle Program standards, from least to most stringent, are TLEV, LEV, ULEV, SULEV and ZEV. CANDU Reactor: A pressurized heavy-water, natural-uranium power reactor designed by a consortium of Canadian government and private industry participants. CANDU utilizes natural, unenriched uranium oxide as fuel. Because unenriched uranium is cheaper, this kind of reactor is attractive to developing countries. The fuel is contained in hundreds of tubes that are pressure resistant. This means that a tube can be refueled while the reactor is operating. CANDU is a registered trademark of the CANDU consortium. Cap and Trade: A system in which governments attempt to reduce carbon emissions by major industry. First, an overall “cap” is placed, by government regulation, on total carbon emissions for

Carbon Intensity: The amount of carbon dioxide that a nation emits, on average, in order to create a unit of GDP (gross domestic product, a measure of economic output). Carbon Monoxide (CO): A colorless, odorless gas produced by the incomplete combustion of fuels with a limited oxygen supply, as in automobile engines. Carbon Sequestration (CCS): The absorption and storage of CO2 from the atmosphere by the roots and leaves of plants; the carbon builds up as organic matter in the soil. In the energy industry, carbon sequestration refers to the process of isolating and storing carbon dioxide (a so-called greenhouse gas). One use is to avoid releasing carbon dioxide into the air when burning coal at a coal-fired power plant. Instead, the carbon dioxide is stored in the ground or otherwise stored in a permanent or semi-permanent fashion. Other uses include the return to the ground of carbon dioxide that is produced at natural gas wells, and the introduction of carbon dioxide into oil

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wells in order to increase internal pressure and production. This process is also known as carbon capture and storage (CCS). Carcinogens: Chemicals and other substances known to cause cancer. Cast Silicon: Crystalline silicon obtained by pouring pure molten silicon into a vertical mold and adjusting the temperature gradient along the mold volume during cooling to obtain slow, vertically advancing crystallization of the silicon. The polycrystalline ingot thus formed is composed of large, relatively parallel, interlocking crystals. The cast ingots are sawed into wafers for further fabrication into photovoltaic cells. Cast-silicon wafers and ribbonsilicon sheets fabricated into cells are usually referred to as polycrystalline photovoltaic cells. CCS: See “Carbon Sequestration (CCS).” Cellulosic Ethanol: See “Ethanol.” Central American-Dominican Republic Free Trade Agreement (CAFTA-DR): A trade agreement signed into law in 2005 that aimed to open up the Central American and Dominican Republic markets to American goods. Member nations include Guatemala, Nicaragua, Costa Rica, El Salvador, Honduras and the Dominican Republic. Before the law was signed, products from those countries could enter the U.S. almost tariff-free, while American goods heading into those countries faced stiff tariffs. The goal of this agreement was to create U.S. jobs while at the same time offering the non-U.S. member citizens a chance for a better quality of life through access to U.S.-made goods.

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RFG provision requires use of RFG all year in certain areas. The oxygenated gasoline provision requires the use of oxygenated gasoline during certain months, when CO and ozone pollution are most serious. The regulations also require certain fleet operators to use clean fuel vehicles in 22 cities. Clean Fuel Vehicle (CFV): Any vehicle certified by the Environmental Protection Agency as meeting certain federal emissions standards. The three categories of federal CFV standards, from least to most stringent, are LEV, ULEV and ZEV. The ILEV standard is voluntary and does not need to be adopted by states as part of the Clean-Fuel Fleet Program. CFVs are eligible for two federal programs, the California Pilot Program and the Clean-Fuel Fleet Program. CFV exhaust emissions standards for lightduty vehicles and light-duty trucks are numerically similar to those of CARB’s California Low-Emission Vehicle Program. Climate Change (Greenhouse Effect): A theory that assumes an increasing mean global surface temperature of the Earth caused by gases (sometimes referred to as greenhouse gases) in the atmosphere (including carbon dioxide, methane, nitrous oxide, ozone and chlorofluorocarbons). The greenhouse effect allows solar radiation to penetrate the Earth's atmosphere but absorbs the infrared radiation returning to space. Coalbed Methane (CBM): A natural methane gas that is found in coal seams, while traditional natural gas deposits are trapped in porous rock formations. A small amount of CBM is already produced successfully in the Rocky Mountain region of the U.S.

Cetane: Ignition performance rating of diesel fuel; the diesel equivalent to gasoline octane.

Cogeneration: See “Combined Heat and Power (CHP) Plant.”

CHP: See “Combined Cycle.”

Combined Cycle: An electric generating technology in which electricity is produced from waste heat that would otherwise be lost when exiting from one or more gas (combustion) turbines. The exiting heat is routed to a conventional boiler or to a heat recovery steam generator for utilization by a steam turbine in the production of electricity. Such designs increase the efficiency of the electric generating unit. This process is also known as cogeneration or “combined heat and power” (CHP). One novel approach, know as ISCC or integrated solar combined cycle, adds the use of concentrated solar power (CSP) from mirrors,

Clean Air Act (CAA): A law setting emissions standards for stationary sources (e.g., factories and power plants). The original Clean Air Act was signed in 1963, and has been amended several times, most recently in 1990 (P.L. 101-549). The amendments of 1970 introduced motor vehicle emission standards (e.g., automobiles and trucks). Criteria pollutants included lead, ozone, CO, SO2, NOx and PM, as well as air toxics. In 1990, reformulated gasoline (RFG) and oxygenated gasoline provisions were added. The

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focused on a tower in order to generate additional steam, which is fed into the system. (See “Concentrated Solar Power (CSP).”)

Conventional Thermal Electricity Generation: Electricity generated by an electric power plant using coal, petroleum or gas as its source of energy.

Combined Heat and Power (CHP) Plant: A facility that generates power via combined cycle technology. See “Combined Cycle.”

Corporate Average Fuel Economy (CAFE): (P.L. 94-163) A law passed in 1975 that set federal fuel economy standards. The CAFE values are an average of city and highway fuel economy test results weighted by a manufacturer for either its car or truck fleet.

Compact Fluorescent Lamp (CFL): A type of light bulb that provides considerable energy savings over traditional incandescent light bulbs.

CSP: See “Concentrated Solar Power (CSP).” Compressed Air Energy Storage (CAES): A storage system that directs surplus electricity to a compressor, which pumps air deep into layers of porous sandstone underneath dense, almost impermeable shale. The sandstone expands, trapping the air, which is later released. As the air rushes upward, it fires a turbine on the surface, thereby producing energy. Compressed Natural Gas (CNG): Natural gas that has been compressed under high pressures, typically between 2000 and 3600 psi, held in a container. The gas expands when released for use as a fuel. Compressor: A device to increase gas pressure capable of causing the flow of gas. Concentrated Photovoltaic (CPV): A technology in which the use of mirrors, lenses or other items concentrate and thus vastly increase the intensity of sunlight during the photovoltaic process. Concentrated Solar Power (CSP): Concentrated, or “concentrating,” solar power is the use of solar thermal collectors to absorb solar heat and then heat water, oil or other substances with that energy. A good example is the Stirling Engine, which uses focused solar energy to heat liquid hydrogen in a closed-loop system. Expanding hydrogen gas creates pressure on pistons within the engine, which turns at a steady 1,800 RPM. The engine then powers an electric generator. CSP technologies include the use of large numbers of mirrors that reflect and concentrate sunlight upon “solar towers.” As heat accumulates in the solar towers, it produces steam that is used to drive turbines and generate electricity. In the latest systems, CSP utilizes heliostats, or motor-driven mirrors, to track the sun through the sky during the day. (See “Heliostat.”)

Denatured Alcohol: Ethanol that contains a small amount of a toxic substance, such as methanol or gasoline, which cannot be removed easily by chemical or physical means. Alcohols intended for industrial use must be denatured to avoid federal alcoholic beverage tax. Dendrimer: A type of molecule that can be used with small molecules to give them certain desirable characteristics. Dendrimers are utilized in technologies for electronic displays. See “Organic LED (OLED).” Direct Current (DC): An electric current that flows in a constant direction. The magnitude of the current does not vary or has a slight variation. Direct Methanol Fuel Cell (DMFC): A new energy concept for mobile electronic devices such as laptops and cell phones. Toshiba, the pioneer in this field, has exhibited tiny DMFCs capable of delivering up to 300 milliwatts for up to 35 hours of operation. A fuel cartridge can be replaced on an as-needed basis. Distributed Power Generation: A method of generating electricity at or near the site where it will be consumed, such as the use of small, local generators or fuel cells to power individual buildings, homes or neighborhoods. Distributed power is thought by many analysts to offer distinct advantages. For example, electricity generated in this manner is not reliant upon the grid for distribution to the end user. Distribution System: The portion of an electric system that is dedicated to delivering electric energy to an end user. E10 (Gasohol): Ethanol/gasoline mixture containing 10% denatured ethanol and 90% gasoline, by volume.

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E85: Ethanol/gasoline mixture containing 85% denatured ethanol and 15% gasoline, by volume. E93: Ethanol mixture containing 93% ethanol, 5% methanol and 2% kerosene, by volume. E95: Ethanol/gasoline mixture containing 95% denatured ethanol and 5% gasoline, by volume. Electric Power Industry: The privately, publicly, federally and cooperatively owned electric utilities of the United States taken as a whole. Does not include special-purpose electric facilities. Electric Power System: An individual electric power entity. Electric Utility: A corporation, person, agency, authority or other legal entity or instrumentality that owns and/or operates facilities within the United States for the generation, transmission, distribution or sale of electric energy primarily for use by the public. EMEA: The region comprised of Europe, the Middle East and Africa. Emission: The release or discharge of a substance into the environment. Generally refers to the release of gases or particulates into the air. Energy: The capacity for doing work as measured by the capability of doing work (potential energy) or the conversion of this capability to motion (kinetic energy). Most of the world’s convertible energy comes from fossil fuels that are burned to produce heat that is then used as a transfer medium to mechanical or other means in order to accomplish tasks. Energy Information Administration (EIA): An independent agency within the U.S. Department of Energy, the Energy Information Administration (EIA) develops surveys, collects energy data and does analytical and modeling analyses of energy issues. Energy Intensity: The amount of energy needed for a nation to produce a unit of GDP (gross domestic product, a measure of economic output). Energy Policy Act of 1992 (EPACT): (P.L. 102486) A broad-ranging act signed into law on October 24, 1992. Titles III, IV, V, XV and XIX of EPACT

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deal with alternative transportation fuels. EPACT accelerates the purchase requirements for alternative fuel vehicles (AFVs) by the federal fleet, proposes eliminating the cap on CAFE credits that manufacturers can earn by producing dual- and flexible-fuel vehicles and requires fleets in large urban areas to purchase AFVs. EPACT also establishes tax incentives for purchasing AFVs, converting conventional gasoline vehicles to operate on alternative fuels and installing refueling or recharging facilities by the private sector. Ethanol: A clear, colorless, flammable, oxygenated hydrocarbon, also called ethyl alcohol. In the U.S., it is used as a gasoline octane enhancer and oxygenate in a 10% blend called E10. Ethanol can be used in higher concentrations (such as an 85% blend called E85) in vehicles designed for its use. It is typically produced chemically from ethylene or biologically from fermentation of various sugars from carbohydrates found in agricultural crops and cellulose residues from crops or wood. Grain ethanol production is typically based on corn or sugarcane. Cellulosic ethanol production is based on agricultural waste, such as wheat stalks, that has been treated with enzymes to break the waste down into component sugars. Ethyl Ester: A fatty ester formed when organically derived oils are combined with ethanol in the presence of a catalyst. After water washing, vacuum drying and filtration, the resulting ethyl ester has characteristics similar to petroleum-based diesel motor fuels. Ethyl Tertiary Butyl Ether (ETBE): An aliphatic ether similar to MTBE (Methyl Tertiary Butyl Ether). This fuel oxygenate is manufactured by reacting isobutylene with ethanol. Having high octane and low volatility characteristics, ETBE can be added to gasoline up to a level of approximately 17% by volume. ETBE is not yet commercially available. EU: See “European Union (EU).” EU Competence: The jurisdiction in which the European Union (EU) can take legal action. European Union (EU): A consolidation of European countries (member states) functioning as one body to facilitate trade. Previously known as the European Community (EC), the EU expanded to include much of Eastern Europe in 2004, raising the total number

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of member states to 25. In 2002, the EU launched a unified currency, the Euro. See europa.eu.int. Exempt Wholesale Generator (EWG): A nonutility electricity generator that is not a qualifying facility under the Public Utility Regulatory Policies Act of 1978. FASB: See “Financial Accounting Standards Board (FASB).”

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technology. The prices are typically much higher than those paid for electricity from conventional power plants, because most renewable sources operate at lower efficiency and higher cost per KWH. The intent is to encourage investment in renewable plants by guaranteeing a price for output that will create a positive return on investment. Feedstock: Any material converted to another form of fuel or energy product. For example, corn starch can be used as a feedstock for ethanol production.

Fast Breeder Reactor: See “Breeder Reactor.” Fast Neutron Reactor (FNR): A fast reactor is a type of nuclear plant that uses uranium-238 as a fuel, in addition to the U-235 isotope used in traditional reactors. Variances in design determine the actual designation of a reactor. Reactors that produce more "fissile material" (plutonium, U-235, etc.) than they consume are referred to as Breeder Reactors, or Fast Breeder Reactors (FBR). On the other hand if they are net consumers of fissile material, they are Fast Neutron Reactors (FNR). (Also, see “Breeder Reactor.”) Fast Reactor: An advanced technology nuclear reactor that uses a fast fission process utilizing fast neutrons that would split some of the U-258 atoms as well as transuranic isotopes. The goal is to use nuclear material more efficiently and safely in the production of nuclear energy. Federal Energy Regulatory Commission (FERC): A quasi-independent regulatory agency within the Department of Energy having jurisdiction over interstate electricity sales, wholesale electricity rates, hydro-electric licensing, natural gas pricing, oil pipeline rates and gas pipeline certification. Federal Power Act: Regulates licensing of nonfederal hydroelectric projects, as well as the interstate transmission of electrical energy and rates for its sale at wholesale in interstate commerce. It was enacted in 1920 and amended in 1935. Federal Power Commission: The predecessor agency of the FERC, abolished when the Department of Energy was created. Feed-in Tariff (FIT): Guaranteed prices for output from electric generation, typically offered in longterm contracts to firms that operate renewable electric generating plants based on solar, wind or wave

FERC: See “Federal Energy Regulatory Commission (FERC).” Financial Accounting Standards Board (FASB): An independent organization that establishes the Generally Accepted Accounting Principles (GAAP). Fissile Material: Generally, fissile material is material than can be used as nuclear fuel in a reactor, such as Uranium-233, Uranium-235, Plutonium-239 and Plutonium-241. Flash Steam Generation: The most common type of hydroelectric power generation technique. Flash steam describes a system where a high temperature geothermal steam source can be used to directly drive a turbine. Also see “Binary Cycle Generation.” Flexible-Fuel Vehicles (FFVs): Vehicles with a common fuel tank designed to run on varying blends of unleaded gasoline with either ethanol or methanol. Flow Cell Battery: A massive electricity storage device based on a series of modules. Each module contains a large number of fuel cells. The flow cell battery technology receives electricity from a generating or transmission source, conditions it into appropriate format via transformers and stores it in the fuel cell modules using sophisticated technology. On a large scale, a flow cell battery has the ability to store enough electricity to power a small city. Fossil Fuel: Any naturally occurring organic fuel, such as petroleum, coal or natural gas. Fuel Cell: An environmentally friendly electrochemical engine that generates electricity using hydrogen and oxygen as fuel, emitting only heat and water as byproducts. Fusion: See “Nuclear Fusion.”

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GAAP: See “Generally Accepted Accounting Principles (GAAP).” Gas Hydrates: Gas hydrates are solid particles of methane (which is normally found in gas form) and water molecules in a crystalline form. They are widely found in many parts of the world, including the U.S., South Korea, India and China, often offshore. Gas hydrates have immense potential as a source of energy and may possibly exist in much larger quantities than all other known forms of fossil fuels. Unfortunately, they are not stable except under high pressure. Gas hydrate reserves could be very expensive and difficult to develop as a commercial source of energy. Nonetheless, today's very high prices for oil and gas may eventually make them a viable energy source. Gas Turbine: Typically consists of an axial-flow air compressor and one or more combustion chambers where liquid or gaseous fuel is burned. The hot gases are passed to the turbine, in which they expand to drive the generator and are then used to run the compressor. Gas Turbine Plant: A plant in which the prime mover is a gas turbine. Gasification: Any chemical or heat process used to convert a feedstock to a gaseous fuel. Gasohol: A blend of finished motor gasoline containing alcohol (generally ethanol but sometimes methanol) at a concentration of 10% or less by volume. Data on gasohol that has at least 2.7% oxygen, by weight, and is intended for sale inside carbon monoxide non-attainment areas are included in data on oxygenated gasoline.

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(FASB) and enforced by the U.S. Security and Exchange Commission (SEC). GAAP is primarily used in the U.S. Generating Unit: Any combination of physically connected generators, reactors, boilers, combustion turbines or other prime movers operated together to produce electric power. Generation (Electricity): The process of producing electric energy; also, the amount of electric energy produced, expressed in watt-hours (Wh). Geoengineering: The attempt to modify the Earth's environment through artificial means in order to counteract undesirable changes in weather, water or other natural systems. Geophysicist: A professional who applies the principles of physics to the field of geology. Geophysicists are involved in exploration for oil, gas, coal, geothermal and other underground energy sources. Geothermal Electric Power Generation: Electricity derived from heat found under the earth’s surface. Also see “Flash Steam Generation,” “Binary Cycle Generation” and “Hot Dry Rock Geothermal Energy Technology (HDR).” Geothermal Plant: A plant in which the prime mover is a steam turbine. The turbine is driven either by steam produced from hot water or by natural steam that derives its energy from heat found in rocks or fluids at various depths beneath the surface of the earth. The energy is extracted by drilling and/or pumping. GHG: See “Greenhouse Gas (GHG).”

Gas-to-Liquids (GTL): A special process that converts natural gas into liquids that can be burnt as fuel. Major investments by ExxonMobil and others in the nation of Qatar, which contains massive natural gas reserves, will create an immense GTL plant capable of making up to 750,000 of GTL daily. The product will be GTL diesel, a very low emission alternative to standard diesel fuel. GDP: See “Gross Domestic Product (GDP).” Generally Accepted Accounting Principles (GAAP): A set of accounting standards administered by the Financial Accounting Standards Board

Gigawatt: Equal to one billion watts of power. It is also equal to one million kilowatts or 1,000 megawatts. Global Warming: An increase in the near-surface temperature of the Earth. Global warming has occurred in the distant past as the result of natural influences, but the term is most often used to refer to a theory that warming occurs as a result of increased use of hydrocarbon fuels by man. See “Climate Change (Greenhouse Effect).” Grain Ethanol: See “Ethanol.”

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Green Building: A building that has energy conservation and renewable energy features designed to reduce energy consumption. Green Pricing: In the case of renewable electricity, green pricing represents a market solution to the various problems associated with regulatory valuation of the non-market benefits of renewables. Green pricing programs allow electricity customers to express their willingness to pay for renewable energy development through direct payments on their monthly utility bills. Greenhouse Gas (GHG): See “Climate Change (Greenhouse Effect).” Grid (The): In the U.S., the networks of local electric lines that businesses and consumers depend on every day are connected with and interdependent upon a national series of major lines collectively called “the grid.” The grid is divided into three major regions: the East, West and Texas regions. The regions are also known as “interconnects.” In total, the grid consists of about 200,000 miles of highvoltage backbone lines and millions of miles of smaller local lines. Gross Domestic Product (GDP): The total value of a nation's output, income and expenditures produced with a nation's physical borders. Gross National Product (GNP): A country's total output of goods and services from all forms of economic activity measured at market prices for one calendar year. It differs from Gross Domestic Product (GDP) in that GNP includes income from investments made in foreign nations. Heat Pump: A year-round heating and airconditioning system employing a refrigeration cycle. Heliostat: A motor-driven mirror which is used in concentrating solar power (CSP). The mirror is engineered so that it tracks the sun's movement through the sky during the day, thus capturing the maximum amount of solar output. (See “Concentrated Solar Power (CPV).”) High-Temperature Collector: A solar thermal collector designed to operate at a temperature of 180 degrees Fahrenheit or higher.

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Hot Dry Rock Geothermal Energy Technology (HDR): A technique that drills holes into the ground until rock of a suitably high temperature is reached. Pipes are then installed in a closed loop. Water is pumped down one pipe, where it is heated to extraordinarily high temperatures, and then is pumped up the other pipes as steam. The resulting steam shoots up to the surface, which drives a turbine to power an electric generating plant. As the steam cools, it returns to a liquid state which is then is pumped back into the ground. The technology was developed by the Los Alamos National labs in New Mexico. HTS: High Temperature Superconductor wire. See “Superconductivity.” Hybrid-Electric Vehicle (HEV): A vehicle that is powered by two or more energy sources, one of which is electricity. HEVs may combine the engine and fuel system of a conventional vehicle with the batteries and electric motor of an electric vehicle in a single drive train. Hydrocarbons: Organic compounds of hydrogen and carbon. Mixtures including various hydrocarbons include crude oil, natural gas, natural gas condensate and methane. Hydroelectric Energy: The production of electricity from kinetic energy in flowing water. Hydroelectric Plant: An electric generating plant in which the turbine generators are driven by falling water, typically located at a dam or major waterfall. Hydroelectric Power Generation: Electricity generated by an electric power plant whose turbines are driven by falling water. It includes electric utility and industrial generation of hydroelectricity, unless otherwise specified. Generation is reported on a net basis, i.e., on the amount of electric energy generated after deducting the energy consumed by station auxiliaries and the losses in the transformers that are considered integral parts of the station. IEEE: See “Institute of Electrical and Electronic Engineers (IEEE).” IFRS: See “International Financials Reporting Standards (IFRS).”

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Independent Power Producer: A corporation, person, agency, authority or other legal entity or instrumentality that owns electric generating capacity and is a wholesale electric producer without a designated franchised service area. Independent System Operator (ISO): One of many independent, nonprofit organizations created by many states in the U.S. during the deregulation of the electricity industry. Its function is to ensure that electric generating companies have equal access to the power grid. It may be replaced by larger Regional Transmission Organizations (RTOs), which would each cover a major area of the U.S. Industrial Biotechnology: The application of biotechnology to serve industrial needs. This is a rapidly growing field on a global basis. The current focus on industrial biotechnology is primarily on enzymes and other substances for renewable energy such as biofuels; chemicals such as pharmaceuticals, food additives, solvents and colorants; and bioplastics. Industrial biotech attempts to create synergies between biochemistry, genetics and microbiology in order to develop exciting new substances. Industry Code: A descriptive code assigned to any company in order to group it with firms that operate in similar businesses. Common industry codes include the NAICS (North American Industrial Classification System) and the SIC (Standard Industrial Classification), both of which are standards widely used in America, as well as the International Standard Industrial Classification of all Economic Activities (ISIC), the Standard International Trade Classification established by the United Nations (SITC) and the General Industrial Classification of Economic Activities within the European Communities (NACE). Initial Public Offering (IPO): A company's first effort to sell its stock to investors (the public). Investors in an up-trending market eagerly seek stocks offered in many IPOs because the stocks of newly public companies that seem to have great promise may appreciate very rapidly in price, reaping great profits for those who were able to get the stock at the first offering. In the United States, IPOs are regulated by the SEC (U.S. Securities Exchange Commission) and by the state-level regulatory agencies of the states in which the IPO shares are offered.

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Institute of Electrical and Electronic Engineers (IEEE): An organization that sets global technical standards and acts as an authority in technical areas including computer engineering, biomedical technology, telecommunications, electric power, aerospace and consumer electronics, among others. www.ieee.org. Integrated Solar Combined Cycle (ISCC): See “Combined Cycle.” Intellectual Property (IP): The exclusive ownership of original concepts, ideas, designs, engineering plans or other assets that are protected by law. Examples include items covered by trademarks, copyrights and patents. Items such as software, engineering plans, fashion designs and architectural designs, as well as games, books, songs and other entertainment items are among the many things that may be considered to be intellectual property. (Also, see “Patent.”) International Financials Reporting Standards (IFRS): A set of accounting standards established by the International Accounting Standards Board (IASB) for the preparation of public financial statements. IFRS has been adopted by much of the world, including the European Union, Russia and Singapore. Investor-Owned Electric Utility: A class of utility that is investor-owned and organized as a tax-paying business. IP: See “Intellectual Property (IP).” ISO 9000, 9001, 9002, 9003: Standards set by the International Organization for Standardization. ISO 9000, 9001, 9002 and 9003 are the highest quality certifications awarded to organizations that meet exacting standards in their operating practices and procedures. Joule: The meter-kilogram-second unit of work or energy, equal to the work done by a force of one Newton when its point of application moves through a distance of one meter in the direction of the force; equivalent to 107 ergs and one watt-second. Just-in-Time (JIT) Delivery: Refers to a supply chain practice whereby manufacturers receive components on or just before the time that they are needed on the assembly line, rather than bearing the cost of maintaining several days' or weeks' supply in a warehouse. This adds greatly to the cost-

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effectiveness of a manufacturing plant and puts the burden of warehousing and timely delivery on the supplier of the components. Kerogen: See “Oil Shale.” Kilowatt (kW): One thousand watts. Kilowatthour (kWh): One thousand watt-hours. Knowledge Process Outsourcing (KPO): The use of outsourced and/or offshore workers to perform business tasks that require judgment and analysis. Examples include such professional tasks as patent research, legal research, architecture, design, engineering, market research, scientific research, accounting and tax return preparation. Also, see “Business Process Outsourcing (BPO).” LAC: An acronym for Latin America and the Caribbean.

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specially designed ships where extensive insulation and refrigeration maintain the cold temperature. Finally, it is offloaded at special receiving facilities where it is converted, via regasification, into a state suitable for distribution via pipelines. Liquid Collector: A medium-temperature solar thermal collector, employed predominantly in water heating, which uses pumped liquid as the heattransfer medium. Load (Electric): The amount of electric power delivered or required at any specific point or points on a system. The requirement originates at the energy-consuming equipment of the consumers. LOHAS: Lifestyles of Health and Sustainability. A marketing term that refers to consumers who choose to purchase and/or live with items that are natural, organic, less polluting, etc. Such consumers may also prefer products powered by alternative energy, such as hybrid cars.

LDCs: See “Least Developed Countries (LDCs).” Least Developed Countries (LDCs): Nations determined by the U.N. Economic and Social Council to be the poorest and weakest members of the international community. There are currently 50 LDCs, of which 34 are in Africa, 15 are in Asia Pacific and the remaining one (Haiti) is in Latin America. The top 10 on the LDC list, in descending order from top to 10th, are Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Cape Verde and the Central African Republic. Sixteen of the LDCs are also Landlocked Least Developed Countries (LLDCs) which present them with additional difficulties often due to the high cost of transporting trade goods. Eleven of the LDCs are Small Island Developing States (SIDS), which are often at risk of extreme weather phenomenon (hurricanes, typhoons, Tsunami); have fragile ecosystems; are often dependent on foreign energy sources; can have high disease rates for HIV/AIDS and malaria; and can have poor market access and trade terms. Liquefied Natural Gas (LNG): Natural gas that is liquefied by reducing its temperature to -260 degrees Fahrenheit at atmospheric pressure. The volume of the LNG is 1/600 that of the gas in its vapor state. LNG requires special processing and transportation. First, the natural gas must be chilled in order for it to change into a liquid state. Next, the LNG is put on

Low-E: A coating for windows that can prevent warmth from escaping from the inside of a building during the winter, while preventing solar heat from entering the building during the summer. Significant savings in energy usage can result. Low-Emission Vehicle (LEV): Describes a vehicle meeting either the EPA’s CFV LEV standards or CARB’s California Low-Emission Vehicle Program LEV standards. Low-Temperature Collectors: Metallic or nonmetallic solar thermal collectors that generally operate at temperatures below 110 degrees Fahrenheit and use pumped liquid or air as the heattransfer medium. They usually contain no glazing and no insulation, and they are often made of plastic or rubber, although some are made of metal. M85: 85% methanol and 15% unleaded gasoline by volume. Marginal Cost: The change in cost associated with a unit change in quantity supplied or produced. Mbbl: One thousand barrels. Mcf: One thousand cubic feet.

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Mcfe: One thousand cubic feet of natural gas equivalent, using the ratio of six Mcf of natural gas to one Bbl of crude oil, condensate and natural gas liquids. Medium-Temperature Collectors: Solar thermal collectors designed to operate in the temperature range of 140 degrees to 180 degrees Fahrenheit, but that can also operate at a temperature as low as 110 degrees Fahrenheit. The collector typically consists of a metal frame, metal absorption panels with integral flow channels (attached tubing for liquid collectors or integral ducting for air collectors) and glazing and insulation on the sides and back.

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MOX Fuel (Mixed Oxide Fuel): A method of reprocessing spent nuclear material. Surplus plutonium is mixed with uranium to fabricate MOX fuel for use in a commercial nuclear power plant. Traditionally, fuel for commercial nuclear power plants is made of low-enriched uranium. MOX fuel contains 5 percent plutonium. European countries such as the United Kingdom, Germany, Belgium and France have been fabricating MOX fuel for many years. Commercial MOX-fueled light water reactors are used in France, the United Kingdom, Germany, Switzerland, and Belgium. In the U.S., MOX fuel was fabricated and used in several commercial reactors in the 1970's as part of a development program.

Megawatt (MW): One million watts. Megawatthour (MWh): One million watt-hours.

NAICS: North American Industrial Classification System. See “Industry Code.”

Methane: A colorless, odorless, flammable hydrocarbon gas (CH4); the major component of natural gas. It is also an important source of hydrogen in various industrial processes. Also, see “Coalbed Methane (CBN).”

Nanotechnology: The science of designing, building or utilizing unique structures that are smaller than 100 nanometers (a nanometer is one billionth of a meter). This involves microscopic structures that are no larger than the width of some cell membranes.

Methanol: A light, volatile alcohol (CH3OH) eligible for motor gasoline blending. It is also used as a feedstock for synthetic textiles, plastics, paints, adhesives, foam, medicines and more.

Net Generation: Gross generation minus plant use from all electric utility-owned plants. The energy required for pumping at a pumped-storage plant is regarded as plant use and must be deducted from the gross generation.

Methyl Ester: A fatty ester formed when organically derived oils are combined with methanol in the presence of a catalyst. Methyl ester has characteristics similar to petroleum-based diesel motor fuels. Methyl Tertiary Butyl Ether (MTBE): An ether manufactured by reacting methanol and isobutylene. The resulting ether has high octane and low volatility. MTBE is a fuel oxygenate and is permitted in unleaded gasoline up to a level of 15% by volume. Microturbine: A small, scaled-down turbine engine that may be fueled by natural gas, methane or other types of gas. Mmbtu: One million British thermal units.

Net Summer Capability: The steady hourly output that generating equipment is expected to supply to system load exclusive of auxiliary power, as demonstrated by tests at the time of summer peak demand. Nonutility Power Producer: A corporation, person, agency, authority or other legal entity or instrumentality that owns electric generating capacity and is not an electric utility. Nuclear Electric Power Generation: Electricity generated by nuclear reactors of various types, such as heavy water, light water and boiling water. Generation is reported on a net basis and excludes energy that is used by the electric power plant for its own operating purposes and not for commercial use.

Mmcf: One million cubic feet. Mmcfe: One million cubic feet of natural gas equivalent.

Nuclear Fuel: Fissionable materials that have been enriched to such a composition that, when placed in a nuclear reactor, they will support a self-sustaining

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fission chain reaction, producing heat in a controlled manner for process use. Nuclear Fusion: An atomic energy-releasing process in which light weight atomic nuclei, which might be hydrogen or deuterium, combine to form heavier nuclei, such as helium. The result is the release of a tremendous amount of energy in the form of heat. This is potentially an endless supply of energy for mankind, somewhat similar to the power of the Sun. Fusion is undergoing significant research efforts, including a multinational research consortium named ITER. In one approach, magnetic fusion, plasma heated to 100 million-degrees Celsius creates multiple fusion bursts controlled by powerful magnets. Under a different research approach, massive lasers bombard a frozen pellet of fuel creating a brief, intense fusion. Nuclear Power Plant: A facility in which heat produced in a reactor by the fission of nuclear fuel is used to drive a steam turbine, which in turn powers electric generation equipment. This method is sometimes described as "atomic power." There are several different types of nuclear power plants. The newest models incorporate advanced safety and disaster recovery features that are vastly superior to early models. Nuclear Reactor: An apparatus in which the nuclear fission chain can be initiated, maintained and controlled so that energy is released at a specific rate. NYMEX: New York Mercantile Exchange, Inc. (NYMEX Exchange). The company is a major provider of financial services to the energy and metals industries including the trading of energy futures and options contracts. It is owned by the CME Group. Octane Rating: A number used to indicate motor gasoline’s antiknock performance in motor vehicle engines. The two recognized laboratory engine test methods for determining the antiknock rating, or octane rating, of gasoline are the research method and the motor method. To provide a single number as guidance to the customer, the antiknock index (R + M)/2, which is the average of the research and motor octane numbers, was developed. OECD: See “Organisation for Economic Cooperation and Development (OECD).”

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Offshoring: The rapidly growing tendency among U.S., Japanese and Western European firms to send knowledge-based and manufacturing work overseas. The intent is to take advantage of lower wages and operating costs in such nations as China, India, Hungary and Russia. The choice of a nation for offshore work may be influenced by such factors as language and education of the local workforce, transportation systems or natural resources. For example, China and India are graduating high numbers of skilled engineers and scientists from their universities. Also, some nations are noted for large numbers of workers skilled in the English language, such as the Philippines and India. Also see “Captive Offshoring” and “Outsourcing.” Ohm: The unit of measurement of electrical resistance; the resistance of a circuit in which a potential difference of one volt produces a current of one ampere. Oil Shale: Sedimentary rock that contains kerogen, a solid, waxy mixture of hydrocarbon compounds. Heating the rock to very high temperatures will convert the kerogen to a vapor, which can then be condensed to form a slow flowing heavy oil that can later be refined or used for commercial purposes. The United States contains vast amounts of oil shale deposits, but so far it has been considered not economically feasible to produce from them on a large scale. (Not to be confused with crude oil that is produced from shale formulations.) OLED: See “Organic LED (OLED).” Onshoring: The opposite of “offshoring.” Providing or maintaining manufacturing or services within or nearby a company's domestic location. Sometimes referred to as reshoring. Operation and Maintenance (O&M) Cost: Expenses associated with operating a facility (e.g., supervising and engineering expenses) and maintaining it, including labor, materials and other direct and indirect expenses incurred for preserving the operating efficiency or physical condition of utility plants that are used for power production, transmission and distribution of energy. Organic LED (OLED): A type of electronic display based on the use of organic materials that produce light when stimulated by electricity. Also see “Polymer,” “Polymer Light Emitting Diode (PLED),”

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“Small Molecule Organic Light Emitting Diode (SMOLED)” and “Dendrimer.” Organic Polymer: See “Polymer.” Organisation for Economic Co-operation and Development (OECD): A group of more than 30 nations that are strongly committed to the market economy and democracy. Some of the OECD members include Japan, the U.S., Spain, Germany, Australia, Korea, the U.K., Canada and Mexico. Although not members, Estonia, Israel and Russia are invited to member talks; and Brazil, China, India, Indonesia and South Africa have enhanced engagement policies with the OECD. The Organisation provides statistics, as well as social and economic data; and researches social changes, including patterns in evolving fiscal policy, agriculture, technology, trade, the environment and other areas. It publishes over 250 titles annually; publishes a corporate magazine, the OECD Observer; has radio and TV studios; and has centers in Tokyo, Washington, D.C., Berlin and Mexico City that distributed the Organisation’s work and organizes events. Outsourcing: The hiring of an outside company to perform a task otherwise performed internally by the company, generally with the goal of lowering costs and/or streamlining work flow. Outsourcing contracts are generally several years in length. Companies that hire outsourced services providers often prefer to focus on their core strengths while sending more routine tasks outside for others to perform. Typical outsourced services include the running of human resources departments, telephone call centers and computer departments. When outsourcing is performed overseas, it may be referred to as offshoring. Also see “Offshoring.” Ozone: A molecule made up of three atoms of oxygen. It occurs naturally in the stratosphere and provides a protective layer shielding the Earth from harmful ultraviolet radiation. In the troposphere, it is a chemical oxidant, a greenhouse gas and a major component of photochemical smog. Ozone-Depleting Substances: Gases containing chlorine that are being controlled because they deplete ozone. They are thought to have some indeterminate impact on greenhouse gases.

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Passive Solar: A system in which solar energy (heat from sunlight) alone is used for the transfer of thermal energy. Heat transfer devices that depend on energy other than solar are not used. A good example is a passive solar water heater on the roof of a building. Patent: An intellectual property right granted by a national government to an inventor to exclude others from making, using, offering for sale, or selling the invention throughout that nation or importing the invention into the nation for a limited time in exchange for public disclosure of the invention when the patent is granted. In addition to national patenting agencies, such as the United States Patent and Trademark Office, and regional organizations such as the European Patent Office, there is a cooperative international patent organization, the World Intellectual Property Organization, or WIPO, established by the United Nations. Peak Watt: A manufacturer's unit indicating the amount of power a photovoltaic cell or module will produce at standard test conditions (normally 1,000 watts per square meter and 25 degrees Celsius). Pebble-Bed Modular Reactor (PBMR): A nuclear reactor technology that utilizes tiny silicon carbidecoated uranium oxide granules sealed in “pebbles” about the size of oranges, made of graphite. Helium is used as the coolant and energy transfer medium. This containment of the radioactive material in small quantities has the potential to achieve an unprecedented level of safety. This technology may become popular in the development of new nuclear power plants. Photovoltaic (PV) Cell: An electronic device consisting of layers of semiconductor materials fabricated to form a junction (adjacent layers of materials with different electronic characteristics) and electrical contacts, capable of converting incident light directly into electricity (direct current). Photovoltaic technology works by harnessing the movement of electrons between the layers of a solar cell when the sun strikes the material. Photovoltaic (PV) Module: An integrated assembly of interconnected photovoltaic cells designed to deliver a selected level of working voltage and current at its output terminals, packaged for protection against environment degradation and

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suited for incorporation in photovoltaic power systems. PLED: See “Polymer Light Emitting Diode (PLED).” Plug-in Hybrid Electric Vehicles (PHEV): A PHEV is an automobile that features an extra highcapacity battery bank that gives the vehicle a longer electric-only range than standard hybrids. These cars are designed so that they can be plugged into a standard electric outlet for recharging. The intent is to minimize or eliminate the need to use the car's gasoline engine and rely on the electric engine instead. Polymer: An organic or inorganic substance of many parts. Most common polymers, such as polyethylene and polypropylene, are organic. Organic polymers consist of molecules from organic sources (carbon compounds). Polymer means many parts. Generally, a polymer is constructed of many structural units (smaller, simpler molecules) that are joined together by a chemical bond. Some polymers are natural. For example, rubber is a natural polymer. Scientists have developed ways to manufacture synthetic polymers from organic materials. Plastic is a synthetic polymer.

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Primary Energy Consumption: The consumption of unprocessed, unrefined fuels including coal, natural gas and crude oil. Since uranium is a raw fuel, it may also be included. Analysis of primary energy consumption may sometimes include renewable power sources, such as hydroelectric, geothermal or even solar and wind. Primary energy analysis is focused on raw fuels, prior to their use in generating electricity and other purposes. Also, see “Secondary Energy Consumption.” Propane: A normally gaseous straight-chain hydrocarbon (C3H8). Propane is a colorless paraffinic gas that boils at a temperature of –43.67 degrees Fahrenheit. It is extracted from natural gas or refinery gas streams. Public Utility: An enterprise providing essential public services, such as electric, gas, telephone, water and sewer services, under legally established monopoly conditions. Public Utility District (PUD): A municipal corporation organized to provide electric service to both incorporated cities and towns and unincorporated rural areas. Public utility districts operate in six states.

Polymer Light Emitting Diode (PLED): An advanced technology that utilizes plastics (polymers) for the creation of electronic displays (screens). It is based on the use of organic polymers which emit light when stimulated with electricity. They are solution processable, which means they can be applied to substrates via ink jet printing. Also referred to as P-OLEDs.

Public Utility Regulatory Policies Act of 1978 (PURPA): A part of the National Energy Act. PURPA contains measures designed to encourage the conservation of energy, more efficient use of resources and equitable rates. Principal among these were suggested retail rate reforms and new incentives for production of electricity by cogenerators and users of renewable resources.

Power (Electrical): The rate at which energy is transferred. A volt ampere, an electric measurement unit of power, is equal to the product of one volt and one ampere. This is equivalent to one watt for a direct current system. A unit of apparent power is separated into real and reactive power. Real power is the workproducing part of apparent power that measures the rate of supply of energy and is denoted in kilowatts.

Publicly Owned Electric Utility: A class of ownership found in the electric power industry. This group includes those utilities operated by municipalities and state and federal power agencies.

Pressurized Water Reactor (PWR): A type of nuclear power reactor that uses ordinary water as both the coolant and the neutron moderator. The heat produced is transferred to a secondary coolant which is subsequently boiled to produce steam for power generation.

Pumped-Storage Hydroelectric Plant: A plant that usually generates electric energy during peak load periods by using water previously pumped into an elevated storage reservoir during off-peak periods, when excess generating capacity is available to do so. When additional generating capacity is needed, the water can be released from the reservoir through a conduit to turbine generators located in a power plant at a lower level. PV: See “Photovoltaic (PV) Cell.”

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Qualifying Facility (QF): A cogeneration or small power production facility that meets certain ownership, operating and efficiency criteria established by the Federal Energy Regulatory Commission (FERC) pursuant to the Public Utility Regulatory Policies Act of 1978 (PURPA). R&D: Research and development. Also see “Applied Research” and “Basic Research.” Rate Base: The value of property upon which a utility is permitted to earn a specified rate of return as established by a regulatory authority. The rate base generally represents the value of property used by the utility in providing service. Ratemaking Authority: A utility commission’s legal authority to fix, modify, approve or disapprove rates, as determined by the powers given to the commission by a state or federal legislature. Reformulated Gasoline (RFG): Gasoline that has its composition and/or characteristics altered to reduce vehicular emissions of pollutants, particularly pursuant to EPA regulations under the CAA. Refuse-Derived Fuel (RDF): Fuel processed from municipal solid waste that can be in shredded, fluff or dense pellet forms. Regional Transmission Organization (RTO): See “Independent System Operator (ISO).” Regulated Business (Utility Companies): The business of providing natural gas or electric service to customers under regulations and at prices set by government regulatory agencies. Generally, utilities have been required to operate at set prices and profit ratios because they have been granted monopoly or near-monopoly status to serve a given geographic market. Under deregulation, utility companies are being granted greater flexibility to set prices and to enter new geographic markets. At the same time, consumers gain the right to choose among several different utilities providers. Renewable Energy Resources: Energy resources that are naturally replenishing but flow-limited. They are virtually inexhaustible in duration but limited in the amount of energy that is available per unit of time. Renewable energy resources include biomass, hydro, geothermal, solar, wind, ocean thermal, wave action and tidal action.

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Reseller: A firm (other than a refiner) that carries on the trade or business of purchasing refined petroleum products and reselling them to purchasers other than ultimate consumers. Resistivity (R): Measures a material's characteristic resistance to the flow of electrical current. Resistivity is the reciprocal of conductivity. It is denoted by the symbol R. Rural Electrification Administration (REA): A lending agency of the U.S. Department of Agriculture. It makes self-liquidation loans to qualified borrowers to finance electric and telephone service to rural areas. The REA also finances the construction and operation of generating plants, electric transmission and distribution lines, or systems for the furnishing of initial and continued adequate electric services to persons in rural areas not receiving central station service. R-Value (R Value): A method of measuring the effectiveness of building materials such as insulation. Technically, it is the resistance that a material has to heat flow. The higher the R-Value, the better the insulation provided. It is the inverse of U-Value. See “U-Value (U Value).” Saas: See “Software as a Service (Saas).” Secondary Energy Consumption: The consumption of electricity, petroleum, and other refined, processed or generated energy supplies. Also, see “Primary Energy Consumption.” Semiconductor: A generic term for a device that controls electrical signals. It specifically refers to a material (such as silicon, germanium or gallium arsenide) that can be altered either to conduct electrical current or to block its passage. Carbon nanotubes may eventually be used as semiconductors. Semiconductors are partly responsible for the miniaturization of modern electronic devices, as they are vital components in computer memory and processor chips. The manufacture of semiconductors is carried out by small firms, and by industry giants such as Intel and Advanced Micro Devices. SIC: Standard Industrial Classification. See “Industry Code.” Silicon: A semiconductor material made from silica, purified for photovoltaic applications.

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Single-Crystal Silicon (Czochralski): An extremely pure form of crystalline silicon produced by the Czochralski method of dipping a single crystal seed into a pool of molten silicon under high-vacuum conditions and slowly withdrawing a solidifying single-crystal boule rod of silicon. The boule is sawed into thin wafers and fabricated into singlecrystal photovoltaic cells. Small Molecule Organic Light Emitting Diode (SMOLED): A type of organic LED that relies on expensive manufacturing methods. Newer technologies are more promising. See “Polymer” and “Polymer Light Emitting Diode (PLED).” Small Power Producer: A producer that generates electricity by using renewable energy (wood, waste, conventional hydroelectric, wind, solar or geothermal) as a primary energy source. Fossil fuels can be used, but renewable resources must provide at least 75% of the total energy input. It is part of the Public Utility Regulatory Policies Act, a small power producer. Smart Buildings: Buildings or homes that have been designed with interconnected electronic sensors and electrical systems which can be controlled by computers. Advantages include the ability to turn appliances and systems on or off remotely or on a set schedule, leading to greatly enhanced energy efficiency. Smart Grid: The use of computers to monitor and improve the efficiency of distribution systems for electricity. Components may include remote sensors, automated controls and integrated communications between various parties on the grid. The intent is to eliminate brown outs and better anticipate and deliver power. Smart Meter: High-tech electric meters that relay information to electricity providers on a continual basis, showing the amount of power being used by a consumer or business. The intent is to better inform consumers about their usage, while enabling electricity providers to charge higher fees during times of the day when usage is higher across its entire distribution network. The theory is that higher fees during peak times and better informed consumers will lead to lower peak loads. SMOLED: See “Small Molecule Organic Light Emitting Diode (SMOLED).”

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Software as a Service (SaaS): Refers to the practice of providing users with software applications that are hosted on remote servers and accessed via the Internet. Excellent examples include the CRM (Customer Relationship Management) software provided in SaaS format by Salesforce. An earlier technology that operated in a similar, but less sophisticated, manner was called ASP or Application Service Provider. Solar Energy: Energy produced from the sun’s radiation for the purposes of heating or electric generation. Also, see “Photovoltaic (PV) Cell,” “Concentrated Solar Power (CSP)” and “Passive Solar.” Solar Thermal Collector: A device designed to receive solar radiation and convert it into thermal energy. Normally, a solar thermal collector includes a frame, glazing and an absorber, together with the appropriate insulation. The heat collected by the solar thermal collector may be used immediately or stored for later use. Typical use is in solar hot water heating systems. Also, see “Passive Solar” and “Concentrated Solar Power (CSP).” Solar Tower: See “Concentrated Solar Power (CSP).” Solar Updraft Tower: A renewable energy power plant that heats air in a large greenhouse, thereby creating convection that causes air to rise and escape through a tall, specially-designed tower. The upward moving air drives electricity-producing turbines. Spot Price: The price for a one-time market transaction for immediate delivery to the specific location where the commodity is purchased “on the spot,” at current market rates. Standard Cubic Foot (SCF): A regulated measure of natural gas volumes, based on a standardized surface temperature of 60 degrees Fahrenheit and surface pressure of 14.65 psi. Steam-Electric Plant (Conventional): A plant in which the prime mover is a steam turbine. The steam used to drive the turbine is produced in a boiler where fossil fuels are burned. Structural Map: A contour map detailing elevations of sub-surface rock layers, calibrated either in linear

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measure of feet or meters, or in time measure based on seismic surveys. Subsidiary, Wholly-Owned: A company that is wholly controlled by another company through stock ownership. Substation: Facility equipment that switches, changes or regulates electric voltage. Superconductivity: The ability of a material to act as a conductor for electricity without the gradual loss of electricity over distance (due to resistance) that is normally associated with electric transmission. There are two types of superconductivity. “Lowtemperature” superconductivity (LTS) requires that transmission cable be cooled to -418 degrees Fahrenheit. Newer technologies are creating a socalled “high-temperature” superconductivity (HTS) that requires cooling to a much warmer -351 degrees Fahrenheit. Supply Chain: The complete set of suppliers of goods and services required for a company to operate its business. For example, a manufacturer's supply chain may include providers of raw materials, components, custom-made parts and packaging materials. Sustainable Development: Development that ensures that the use of resources and the environment today does not impair their availability to be used by future generations. Switching Station: Facility equipment used to tie together two or more electric circuits through switches. The switches are selectively arranged to permit a circuit to be disconnected, or to change the electric connection between the circuits. Syngas: The synthetic creation of gas to be used as a fuel, typically from coal. See “Gasification.” System (Electric): See “Transmission System (Electric).” Tar Sands (Oil Sands): Sands that contain bitumen, which is a tar-like oil substance that can be processed and refined into a synthetic light oil. Typically, tar sands are mined from vast open pits where deposits are softened with blasts of steam. They are produced by injecting steam in the wells and then pumping out melted bitumen. The Athabasca sands in Alberta,

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Canada and the Orinoco sands in Venezuela contain vast amounts of tar sands. The Athabasca sands are now producing commercially in high volume. Thermal Breeder Reactor (TBR): See “Breeder Reactor.” Thorium: See “Breeder Reactor.” Tidal Energy: A source of power derived from the movement of waves. Tidal energy traditionally involves erecting a dam across the opening to a tidal basin. The dam includes a sluice that is opened to allow the tide to flow into the basin; the sluice is then closed, and as the sea level drops, traditional hydropower technologies can be used to generate electricity from the elevated water in the basin. Time to Depth Conversion: A translation process to recalibrate seismic records from time measures in millisecond units to linear measures of depth in feet or meters. Tokamak: A reactor used in nuclear fusion in which a spiral magnetic field inside doughnut-shaped tube is used to confine high temperature plasma produced during fusion. See “Nuclear Fusion.” Toluene: A basic aromatic compound derived from petroleum. It is the most common hydrocarbon purchased for use in increasing octane. Toluene is also used to produce phenol and TNT. Transformer: An electrical device for changing the voltage of an alternating current. Transmission (Electricity): The movement or transfer of electric energy over an interconnected group of lines and associated equipment between points of supply and points at which it is transformed for delivery to consumers or delivered to other electric systems. Transmission is considered to end when the energy is transformed for distribution to the consumer. Transmission System (Electric): An interconnected group of electric transmission lines and associated equipment for moving or transferring electric energy in bulk between points of supply and points at which it is transformed for delivery to consumers or delivered to other electric systems.

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Turbine: A machine for generating rotary mechanical power from the energy of a stream of fluid (such as water, steam or hot gas). Turbines convert the kinetic energy of fluids to mechanical energy through the principles of impulse and reaction or a mixture of the two. Unfinished Oils: All oils that require further processing, except those requiring only mechanical blending. Uranium: A heavy, naturally radioactive, metallic element (atomic number 92). Its two principally occurring isotopes are uranium-235 and uranium238. Uranium-235 is indispensable to the nuclear industry, because it is the only isotope existing in nature to any appreciable extent that is fissionable by thermal neutrons. Uranium-238 is also important, because it absorbs neutrons to produce a radioactive isotope that subsequently decays to plutonium-239, another isotope that is fissionable by thermal neutrons. U-Value (U Value): A measure of the amount of heat that is transferred into or out of a building. The lower the U-Value, the higher the insulating value of a window or other building material being rated. It is the reciprocal of an R-Value. See “R-Value (R Value).” Value Added Tax (VAT): A tax that imposes a levy on businesses at every stage of manufacturing based on the value it adds to a product. Each business in the supply chain pays its own VAT and is subsequently repaid by the next link down the chain; hence, a VAT is ultimately paid by the consumer, being the last link in the supply chain, making it comparable to a sales tax. Generally, VAT only applies to goods bought for consumption within a given country; export goods are exempt from VAT, and purchasers from other countries taking goods back home may apply for a VAT refund. Vertical Integration: A business model in which one company owns many (or all) of the means of production of the many goods that comprise its product line. For example, founder Henry Ford designed Ford Motor Company's early River Rogue plant so that coal, iron ore and other needed raw materials arrived at one end of the plant and were processed into steel, which was then converted onsite into finished components. At the final stage of the plant, completed automobiles were assembled.

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VSC: Voltage Source Converters. Waste Energy (Waste-to-Energy): The use of garbage, biogases, industrial steam, sewerage gas or industrial, agricultural and urban refuse (“biomass”) as a fuel or power source used in turning turbines to generate electricity or as a method of providing heat. Watt (Electric): The electrical unit of power equal to the power dissipated by a current of one ampere flowing across a resistance of one ohm. Watt (Thermal): A unit of power in the metric system, expressed in terms of energy per second, equal to the work done at a rate of one joule per second. Watthour (Wh): An electrical energy unit equal to one watt of power supplied to, or taken from, an electric circuit steadily for one hour. Wind Energy: Energy present in wind motion that can be converted to mechanical energy for driving pumps, mills and electric power generators. Wind pushes against sails, vanes or blades radiating from a central rotating shaft. Wind Turbine: A system in which blades (windmills) collect wind power to propel a turbine that generates electricity. World Trade Organization (WTO): One of the only globally active international organizations dealing with the trade rules between nations. Its goal is to assist the free flow of trade goods, ensuring a smooth, predictable supply of goods to help raise the quality of life of member citizens. Members form consensus decisions that are then ratified by their respective parliaments. The WTO’s conflict resolution process generally emphasizes interpreting existing commitments and agreements, and discovers how to ensure trade policies to conform to those agreements, with the ultimate aim of avoiding military or political conflict. WTO: See “World Trade Organization (WTO).” Zero-Emission Vehicle (ZEV): Describes a vehicle meeting either the EPA’s CFV ZEV standards or CARB’s California Low-Emission Vehicle Program ZEV standards. ZEV standards, usually met with electric vehicles, require zero vehicle emissions.

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ZigBee: May become the ultimate wireless control system for home and office lighting and entertainment systems. The ZigBee Alliance is an association of companies working together to enable reliable, cost-effective, low-power, wirelessly networked monitoring and control products based on an open global standard, 802.15.4 entertainment systems.

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INTRODUCTION

PLUNKETT’S RENEWABLE, ALTERNATIVE & HYDROGEN ENERGY INDUSTRY ALMANAC, the eighth edition of our guide to the alternative energy field, is designed to be used as a general source for researchers of all types. The data and areas of interest covered are intentionally broad, from the various types of businesses involved in alternative energy, to advances in renewable forms of power, to an in-depth look at the major for-profit firms (which we call “THE RENEWABLE ENERGY 300”) within the many industry sectors that make up the renewable energy arena. This reference book is designed to be a general source for researchers. It is especially intended to assist with market research, strategic planning, employment searches, contact or prospect list creation and financial research, and as a data resource for executives and students of all types. PLUNKETT’S RENEWABLE, ALTERNATIVE & HYDROGEN ENERGY INDUSTRY ALMANAC takes a rounded approach for the general reader. This book presents a complete overview of the entire renewable energy industry (see “How To Use This Book”). For example, advances in solar energy technologies are discussed, as well as those in wind, hydroelectric, biomass, ethanol and geothermal.

THE RENEWABLE ENERGY 300 is our unique grouping of the biggest, most successful corporations in all segments of the alternative energy industry. Tens of thousands of pieces of information, gathered from a wide variety of sources, have been researched and are presented in a unique form that can be easily understood. This section includes thorough indexes to THE RENEWABLE ENERGY 300, by geography, industry, sales, brand names, subsidiary names and many other topics. (See Chapter 4.) Especially helpful is the way in which PLUNKETT’S RENEWABLE, ALTERNATIVE & HYDROGEN ENERGY INDUSTRY ALMANAC enables readers who have no business background to readily compare the financial records and growth plans of alternative energy companies and major industry groups. You’ll see the mid-term financial record of each firm, along with the impact of earnings, sales and strategic plans on each company’s potential to fuel growth, to serve new markets and to provide investment and employment opportunities. No other source provides this book’s easy-tounderstand comparisons of growth, expenditures, technologies, corporations and many other items of great importance to people of all types who may be studying this, one of the most promising industries in the world today.

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By scanning the data groups and the unique indexes, you can find the best information to fit your personal research needs. The major companies in the alternative and renewable energy are profiled and then ranked using several different groups of specific criteria. Which firms are the biggest employers? Which companies earn the most profits? These things and much more are easy to find.

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question for the very latest changes and data. Where possible, we have listed contact names, toll-free telephone numbers and Internet site addresses for the companies, government agencies and industry associations involved so that the reader may get further details without unnecessary delay. •

Tables of industry data and statistics used in this book include the latest numbers available at the time of printing, generally through the end of 2010. In a few cases, the only complete data available was for earlier years.

•

We have used exhaustive efforts to locate and fairly present accurate and complete data. However, when using this book or any other source for business and industry information, the reader should use caution and diligence by conducting further research where it seems appropriate. We wish you success in your endeavors, and we trust that your experience with this book will be both satisfactory and productive.

In addition to individual company profiles, an overview of renewable energy markets and trends is provided. This book’s job is to help you sort through easy-to-understand summaries of today’s trends in a quick and effective manner. Whatever your purpose for researching the alternative energy field, you’ll find this book to be a valuable guide. Nonetheless, as is true with all resources, this volume has limitations that the reader should be aware of: •

Financial data and other corporate information can change quickly. A book of this type can be no more current than the data that was available as of the time of editing. Consequently, the financial picture, management and ownership of the firm(s) you are studying may have changed since the date of this book. For example, this almanac includes the most up-to-date sales figures and profits available to the editors as of late-2011. That means that we have typically used corporate financial data as of the end of 2010.

•

Corporate mergers, acquisitions and downsizing are occurring at a very rapid rate. Such events may have created significant change, subsequent to the publishing of this book, within a company you are studying.

•

Some of the companies in THE RENEWABLE ENERGY 300 are so large in scope and in variety of business endeavors conducted within a parent organization, that we have been unable to completely list all subsidiaries, affiliations, divisions and activities within a firm’s corporate structure.

•

This volume is intended to be a general guide to a vast industry. That means that researchers should look to this book for an overview and, when conducting in-depth research, should contact the specific corporations or industry associations in

Jack W. Plunkett Houston, Texas December 2011

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HOW TO USE THIS BOOK

The two primary sections of this book are devoted first to the energy industry as a whole and then to the “Individual Data Listings” for THE RENEWABLE ENERGY 300. If time permits, you should begin your research in the front chapters of this book. Also, you will find lengthy indexes in Chapter 4 and in the back of the book.

Chapter 2: Renewable, Alternative & Hydrogen Energy Industry Statistics. This chapter presents in-depth statistics on production, usage, reserves and more.

For our brief video introduction to the Alternative Energy industry, see www.plunkettresearch.com/video/alternativeenergy.

Chapter 3: Important Renewable, Alternative & Hydrogen Energy Industry Contacts – Addresses, Telephone Numbers and Internet Sites. This chapter covers contacts for important government agencies, alternative energy organizations and trade groups. Included are numerous important Internet sites.

THE ENERGY INDUSTRY

THE RENEWABLE ENERGY 300

Glossary: A short list of alternative and renwable energy industry terms.

Chapter 4: THE RENEWABLE ENERGY 300: Who They Are and How They Were Chosen. The companies compared in this book (the actual count is 317) were carefully selected from the alternative energy industry, largely in the United States. 136 of the firms are based outside the U.S. For a complete description, see THE RENEWABLE ENERGY 300 indexes in this chapter. Individual Data Listings: Look at one of the companies in THE RENEWABLE ENERGY 300’s Individual Data Listings. You’ll find the following information fields:

› Video Tip

Chapter 1: Major Trends Affecting the Renewable, Alternative & Hydrogen Energy Industry. This chapter presents an encapsulated view of the major trends that are creating rapid changes in the alternative energy industry today.

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Company Name: The company profiles are in alphabetical order by company name. If you don’t find the company you are seeking, it may be a subsidiary or division of one of the firms covered in this book. Try looking it up in the Index by Subsidiaries, Brand Names and Selected Affiliations in the back of the book. Industry Code: Industry Group Code: An NAIC code used to group companies within like segments. (See Chapter 4 for a list of codes.) Business Activities: A grid arranged into six major industry categories and several sub-categories. A “Y” indicates that the firm operates within the sub-category. A complete Index by Industry is included in the beginning of Chapter 4. Types of Business: A listing of the primary types of business specialties conducted by the firm. Brands/Divisions/Affiliations: Major brand names, operating divisions or subsidiaries of the firm, as well as major corporate affiliations—such as another firm that owns a significant portion of the company’s stock. A complete Index by Subsidiaries, Brand Names and Selected Affiliations is in the back of the book. Contacts: The names and titles up to 27 top officers of the company are listed, including human resources contacts. Address: The firm’s full headquarters address, the headquarters telephone, plus toll-free and fax numbers where available. Also provided is the World Wide Web site address. Financials: Annual Sales (2011 or the latest fiscal year available to the editors, plus up to four previous years): These are stated in thousands of dollars (add three zeros if you want the full number). This figure represents consolidated worldwide sales from all operations. These numbers may be estimates. Annual Profits (2011 or the latest fiscal year available to the editors, plus up to four previous years): These are stated in thousands of dollars (add three zeros if you want the full number). This figure represents consolidated, after-tax net profit from all operations. These numbers may be estimates. Stock Ticker, International Exchange, Parent Company: When available, the unique stock market symbol used to identify this firm’s common stock for trading and tracking purposes is indicated. Where

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appropriate, this field may contain “private” or “subsidiary” rather than a ticker symbol. If the firm is a publicly-held company headquartered outside of the U.S., its international ticker and exchange are given. If the firm is a subsidiary, its parent company is listed. Total Number of Employees: The approximate total number of employees, worldwide, as of the end of 2010 (or the latest data available to the editors). Apparent Salaries/Benefits: (The following descriptions generally apply to U.S. employers only.) A “Y” in appropriate fields indicates “Yes.” Due to wide variations in the manner in which corporations report benefits to the U.S. Government’s regulatory bodies, not all plans will have been uncovered or correctly evaluated during our effort to research this data. Also, the availability to employees of such plans will vary according to the qualifications that employees must meet to become eligible. For example, some benefit plans may be available only to salaried workers—others only to employees who work more than 1,000 hours yearly. Benefits that are available to employees of the main or parent company may not be available to employees of the subsidiaries. In addition, employers frequently alter the nature and terms of plans offered. NOTE: Generally, employees covered by wealthbuilding benefit plans do not fully own (“vest in”) funds contributed on their behalf by the employer until as many as five years of service with that employer have passed. All pension plans are voluntary—that is, employers are not obligated to offer pensions. Pension Plan: The firm offers a pension plan to qualified employees. In this case, in order for a “Y” to appear, the editors believe that the employer offers a defined benefit or cash balance pension plan (see discussions below).The type and generosity of these plans vary widely from firm to firm. Caution: Some employers refer to plans as “pension” or “retirement” plans when they are actually 401(k) savings plans that require a contribution by the employee. • Defined Benefit Pension Plans: Pension plans that do not require a contribution from the employee are infrequently offered. However, a few companies, particularly larger employers in high-profit-margin industries, offer defined benefit pension plans where the employee is guaranteed to receive a set pension benefit upon retirement. The amount of the benefit is determined by the years of service with the company and the employee’s salary during the

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later years of employment. The longer a person works for the employer, the higher the retirement benefit. These defined benefit plans are funded entirely by the employer. The benefits, up to a reasonable limit, are guaranteed by the Federal Government’s Pension Benefit Guaranty Corporation. These plans are not portable—if you leave the company, you cannot transfer your benefits into a different plan. Instead, upon retirement you will receive the benefits that vested during your service with the company. If your employer offers a pension plan, it must give you a summary plan description within 90 days of the date you join the plan. You can also request a summary annual report of the plan, and once every 12 months you may request an individual benefit statement accounting of your interest in the plan. • Defined Contribution Plans: These are quite different. They do not guarantee a certain amount of pension benefit. Instead, they set out circumstances under which the employer will make a contribution to a plan on your behalf. The most common example is the 401(k) savings plan. Pension benefits are not guaranteed under these plans. • Cash Balance Pension Plans: These plans were recently invented. These are hybrid plans—part defined benefit and part defined contribution. Many employers have converted their older defined benefit plans into cash balance plans. The employer makes deposits (or credits a given amount of money) on the employee’s behalf, usually based on a percentage of pay. Employee accounts grow based on a predetermined interest benchmark, such as the interest rate on Treasury Bonds. There are some advantages to these plans, particularly for younger workers: a) The benefits, up to a reasonable limit, are guaranteed by the Pension Benefit Guaranty Corporation. b) Benefits are portable—they can be moved to another plan when the employee changes companies. c) Younger workers and those who spend a shorter number of years with an employer may receive higher benefits than they would under a traditional defined benefit plan. ESOP Stock Plan (Employees’ Stock Ownership Plan): This type of plan is in wide use. Typically, the plan borrows money from a bank and uses those funds to purchase a large block of the corporation’s stock. The corporation makes contributions to the plan over a period of time, and the stock purchase loan is eventually paid off. The value of the plan

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grows significantly as long as the market price of the stock holds up. Qualified employees are allocated a share of the plan based on their length of service and their level of salary. Under federal regulations, participants in ESOPs are allowed to diversify their account holdings in set percentages that rise as the employee ages and gains years of service with the company. In this manner, not all of the employee’s assets are tied up in the employer’s stock. Savings Plan, 401(k): Under this type of plan, employees make a tax-deferred deposit into an account. In the best plans, the company makes annual matching donations to the employees’ accounts, typically in some proportion to deposits made by the employees themselves. A good plan will match onehalf of employee deposits of up to 6% of wages. For example, an employee earning $30,000 yearly might deposit $1,800 (6%) into the plan. The company will match one-half of the employee’s deposit, or $900. The plan grows on a tax-deferred basis, similar to an IRA. A very generous plan will match 100% of employee deposits. However, some plans do not call for the employer to make a matching deposit at all. Other plans call for a matching contribution to be made at the discretion of the firm’s board of directors. Actual terms of these plans vary widely from firm to firm. Generally, these savings plans allow employees to deposit as much as 15% of salary into the plan on a tax-deferred basis. However, the portion that the company uses to calculate its matching deposit is generally limited to a maximum of 6%. Employees should take care to diversify the holdings in their 401(k) accounts, and most people should seek professional guidance or investment management for their accounts. Stock Purchase Plan: Qualified employees may purchase the company’s common stock at a price below its market value under a specific plan. Typically, the employee is limited to investing a small percentage of wages in this plan. The discount may range from 5 to 15%. Some of these plans allow for deposits to be made through regular monthly payroll deductions. However, new accounting rules for corporations, along with other factors, are leading many companies to curtail these plans—dropping the discount allowed, cutting the maximum yearly stock purchase or otherwise making the plans less generous or appealing. Profit Sharing: Qualified employees are awarded an annual amount equal to some portion of a company’s profits. In a very generous plan, the pool of money awarded to employees would be 15% of profits. Typically, this money is deposited into a

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long-term retirement account. Caution: Some employers refer to plans as “profit sharing” when they are actually 401(k) savings plans. True profit sharing plans are rarely offered. Highest Executive Salary: The highest executive salary paid, typically a 2010 amount (or the latest year available to the editors) and typically paid to the Chief Executive Officer. Highest Executive Bonus: The apparent bonus, if any, paid to the above person. Second Highest Executive Salary: The nexthighest executive salary paid, typically a 2010 amount (or the latest year available to the editors) and typically paid to the President or Chief Operating Officer. Second Highest Executive Bonus: The apparent bonus, if any, paid to the above person. Other Thoughts: Apparent Women Officers or Directors: It is difficult to obtain this information on an exact basis, and employers generally do not disclose the data in a public way. However, we have indicated what our best efforts reveal to be the apparent number of women who either are in the posts of corporate officers or sit on the board of directors. There is a wide variance from company to company. Hot Spot for Advancement for Women/Minorities: A “Y” in appropriate fields indicates “Yes.” These are firms that appear either to have posted a substantial number of women and/or minorities to high posts or that appear to have a good record of going out of their way to recruit, train, promote and retain women or minorities. (See the Index of Hot Spots For Women and Minorities in the back of the book.) This information may change frequently and can be difficult to obtain and verify. Consequently, the reader should use caution and conduct further investigation where appropriate. Growth Plans/ Special Features: Listed here are observations regarding the firm’s strategy, hiring plans, plans for growth and product development, along with general information regarding a company’s business and prospects. Locations: A “Y” in the appropriate field indicates “Yes.” Primary locations outside of the headquarters, categorized by regions of the United States and by international locations. A complete index by locations is also in the front of this chapter.

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Chapter 1 MAJOR TRENDS AFFECTING THE RENEWABLE, ALTERNATIVE & HYDROGEN ENERGY INDUSTRY Major Trends Affecting the Renewable, Alternative & Hydrogen Energy Industry: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15)

Introduction Solar Power and Photovoltaics Wind Power Hydroelectric Power Geothermal Power Biomass, Waste-to-Energy, Waste Methane and Biofuels such as Biodiesel Ethanol Production Soared, But U.S. Federal Subsidy in Question Tidal Power Fuel Cell and Hydrogen Power Research Continues China Becomes a Leader in Wind and Solar Equipment and Installed Capacity Electric Cars and Plug-in Hybrids (PHEVs) Enter Market in Low Numbers Major Research in Advanced Lithium Batteries Natural Gas Powered Vehicles Off to a Slow Start Homes and Commercial Buildings Go Green Proposals for U.S. Electricity Grid Enhancements Include a “Smart Grid,” Regional Transmission Organizations (RTOs) and Technologies such as Flow Cell Batteries

16) The Industry Takes a New Look at Nuclear Power 17) Nanotechnology Sees Applications in Fuel Cells and Solar Power/Micro Fuel Cells to Power Mobile Devices 18) Polymers Enable New Display Technologies with PLEDs/May Hold Key to High Efficiency Polymer Solar Cells (PV) 19) Clean Coal and Coal Gasification Technologies Advance/Carbon Capture (CCS) Proves Costly 20) Production of Synthetic Crude from Kerogen Trapped in Shale Advances Through New Technologies 21) Superconductivity Comes of Age

› Video Tip

For our brief video introduction to the Alternative Energy industry, see www.plunkettresearch.com/video/alternativeenergy. 1) Introduction

U.S. energy production from renewable sources was 10.7% of total energy production in 2010, up from about 7.6% in 1970. Total renewable energy production was 8,064,000 billion BTUs (up from 7,761,000 billion BTUs in 2009). In this case, “renewable” includes conventional hydroelectric and geothermal, along with solar, wind and biomass. Meanwhile, nuclear generation accounted for 11.2%

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of total U.S. energy production, or 8,440,000 billion BTUs. Analysts at BP report that renewable power consumption grew by 15.5% worldwide in 2010, 12.6% in 2009 and 15.4% in 2008. However, this impressive growth does not mean that renewables account for a large amount of consumption. Instead, renewables as a percent of global energy consumption were about 1.3% in 2010, about double the rate of 0.6% in 2000. Globally, in 2010, sources for worldwide generation of electricity included about 16% hydroelectric; 16% nuclear; and 2% “renewables” including waste, wind, geothermal and solar. Coal remains a primary source of electric generation in many parts of the world. Wind power has seen rapid growth worldwide. Major technological advances in wind turbines (including much larger blades creating very high output per turbine, and blades that suffer very little downtime and are thus more efficient) and massive government incentives encouraging investment in wind generation have fueled wind turbine installation. In the U.S., wind power generation grew dramatically from 29,007 billion BTUs in 1990 to 258,385 billion BTUs in 2006 and 924,000 billion BTUs in 2010. The Global Wind Energy Council estimated total wind generation capacity worldwide at 74,052 megawatts in 2006, and forecast it to climb to 459,000 megawatts by the end of 2015. However, it remains to be seen whether financing can be found for that much expansion. Solar power is enjoying significant technological innovation. The most important factor in solar is the percent of captured solar energy that is converted into electricity, and that ratio is climbing. The use of polymers is leading to exciting, flexible solar panels, and nanotechnology is creating breakthroughs in solar technology as well. The International Energy Agency reports that installed global solar photovoltaic capacity was 4,184 megawatts at the end of 2005 within the IEA Photovoltaic Power System Program Member Countries. By 2010, that number had soared to 40,000 megawatts. Biomass energy (including the use of energy from waste and the production of bioethanol) has been growing rapidly as well, both in the U.S. and elsewhere. The U.S. Department of Energy reports that biomass accounted for 53.4% of all renewable energy consumption in America during 2010. As for nuclear power, we are entering an era in which the construction of new nuclear generating plants will most likely accelerate rapidly in China

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and India, where demand for electricity is booming and dozens of new nuclear plants are planned. Several new plants are also planned in the UAE, and South Korea may require several new plants. However, the early 2011 destruction by a tsunami of multiple nuclear reactors at Fukushima, Japan makes it much less likely that we will see a rebound in nuclear plant construction in America or Europe any time soon. It should be noted that the use of renewable sources does not always mean clean power generation. For example, burning wood or trash for energy under the wrong conditions can create significant pollution. Also, the clearing of land, such as rain forests, for planting for biomass to be used in ethanol or biodiesel refining can be highly destructive to the environment while creating huge quantities of carbon emissions. In addition, many types of renewable energy production require vast quantities of water. In the U.S., emphasis on alternative energy and conservation has a varied history. The 1973 oil trade embargo staged by Persian Gulf producers greatly limited the supply of petroleum on the market and created an instant interest in energy conservation. Thermostats were turned to more efficient levels, solar water heating systems sprouted on the rooftops of American homes (including a system that was used for a few years at the White House) and tax credits were launched by various government agencies to encourage investment in more efficient systems that would utilize less oil, gasoline and electricity. Meanwhile, American motorists crawled through lengthy lines at filling stations trying to top off their tanks during the horrid days of gasoline rationing. While some consumers maintained a keen interest in alternative energy from an environmentally friendly point of view, most Americans quickly forgot about energy conservation when the price of gasoline plummeted during the 1980s and 1990s. Gasoline prices as low as 99 cents per gallon were common for many years. As advancing technology made oil production and electricity generation much more efficient, a low commodity price trend kept market prices under control. As a result, Americans returned to ice-cold air-conditioned rooms and purchased giant, gasguzzling SUVs, motor homes and motorboats. The median newly constructed American single-family home built in 1972 contained 1,520 square feet; in 2005 it contained 2,434 square feet. More square footage means more lights, air conditioning and

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heating to power. Meanwhile, federal and state regulators made efforts to force automobile engines and industrial plants to operate in clean-air mode, largely through the use of advanced technologies, while requiring gasoline refiners to adopt an everwidening web of additives and standards that would create cleaner-burning fuels. Fortunately, the first energy crisis in the early 1970s did lead to the use of technology to create significant efficiencies in some areas. For example, prior to that time, as much as 40% of a typical household’s natural gas consumption was for pilot lights burning idly in case a stove or furnace was needed. Today, electric pilots create spark ignition on demand. Likewise, today’s refrigerators use about one-third the electricity of models built in 1970. Many other appliances and electrical devices have become much more efficient. While the number of electricity-burning personal computers proliferated, computer equipment makers rapidly adopted energysaving PC technologies. Today, fluctuating oil and gas prices, along with tax credits and other incentives, have created a renewed interest in all things energy-efficient. Smaller cars, high-efficiency homes and solar power are once again part of popular culture. At the same time, renewable energy sources and cleaner-burning fuels are of great appeal to the large number of American consumers who have developed a true interest in protecting the environment. For example, surveys have shown that some consumers would be willing to pay somewhat more for electricity if they knew it was coming from non-polluting, renewable sources. Hybrid gasoline-electric automobiles made by Toyota and Honda are selling well in the U.S. “Clean diesel” cars that deliver very high mileage are extremely popular in Europe, and diesel cars made by Volkswagen and Mercedes are increasingly popular in America. Meanwhile, many municipalities, such as the city of Seattle, Washington, are investing in buses and other vehicles that are hybrids or run on alternative fuels such as natural gas. Plug-in hybrid electric vehicles, and fully electric cars, are slowly being introduced. Alternative energy is also attracting rapidly growing interest from investors. Globally, venture capital has helped to support innovation at firms that focus on alternative energy or energy conservation technologies. Likewise, national governments are helping to fund many energy efficiency projects, ranging from fuel cell research to the design and development of high-efficiency buildings.

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Legislation at state and national levels will continue to boost renewable energy development and conservation technologies on a global basis. In the U.S., state governments have passed stringent legislation requiring that an ever-growing percentage of electric generation come from renewable means. In Washington, D.C., the Obama administration has major programs in place to boost federal funding of renewable energy and conservation measures. However, when analyzing plans, announcements and developments in renewable energy projects, it is best to keep an eye on a big challenge: where will the money come from? The global financial crisis of 2008-09 made money much more difficult to raise for organizations, corporations, utility firms and local governments. Many alternative and renewable energy projects were delayed or abandoned. Nonetheless, renewable energy remains a viable business for the long term, as long as government support holds out. Meanwhile, technologies with a reliable return on investment, such as hydroelectric, remain extremely desirable. Conservation through advanced materials and technologies, such as retrofitting existing buildings with more efficient windows, insulation and air conditioning, is popular as long as a reasonable return on investment can be shown. Alternative oil sources, such as oil sands and oil shale, harbor vast potential reserves, but it is a challenge to produce them at reasonable prices per barrel of oil equivalent. Canada’s oil sands industry has grown to massive size, and operators have learned how to increase efficiency. Bioethanol and biodiesel, from an economic and environmental point of view, are questionable at the least, and extremely misdirected at the worst. Some production of bioethanol appears very efficient, particularly in Brazil where sugar cane is the feedstock. However, the diversion of corn and soy from the food chain to the energy chain for ethanol or biodiesel may be a very bad idea. Advanced technologies that capture carbon dioxide and utilize it to grow oil-producing algae appear to be a promising alternative. At least two geothermal energy projects, where deep holes are drilled to tap the high temperatures of the inner Earth, have recently been cancelled due to concerns that these activities cause earthquakes. Tidal energy looks promising, but both installation costs and maintenance remain huge obstacles. The bottom line is that most types of renewable energy production simply cannot exist without substantial government investments, incentives, loans

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and/or tax breaks. Hydroelectric is the rare exception, as it produces power at very low cost. In nearly all other cases, large-scale projects based on solar, wind or wave power can only be funded through high levels of government support. Consumers of such power will pay much higher rates for electricity, either directly through their power bills or indirectly through their taxes. It remains to be seen whether technologies in these fields can advance to the point that these renewable power sources can be economically viable on a selfsustaining basis. 2) Solar Power and Photovoltaics

What could be more appealing than generating usable electricity from sunshine? Ever since scientists at the famed Bell Laboratories first demonstrated a solar cell based on silicon in 1954, solar power has been seen as one of the most desirable, if elusive, means of creating electricity or heat. Solar power accounted for about 109 trillion BTUs (British thermal units), or 0.12% of all energy consumed in the U.S. during 2010 according to the U.S. Department of Energy. Installed solar power on a global basis rose from 5,266 megawatts in 2005 to 40,000 megawatts in 2010, according to the International Energy Agency. However, growth in the adoption of solar power around the globe was hard hit by the global economic recession of 2008-09. Spain, which accounted for half of the world’s new solar-power installations based on wattage in 2008, suddenly capped its government subsidies for new installations and dramatically reduced support overall for clean energy consumption. U.S. consumers cut back on spending, including investing in alternative energy sources (which are more expensive than those burning fossil fuels) to power their homes and workplaces. Chinese manufacturers are taking increasingly large amounts of global market share for solar panels away from makers based in the U.S., Germany and Japan. The Yingli Green Energy Holding Company is one of the most profitable Chinese manufacturers due to its cheap prices. Casualties include Solyndra, a U.S. firm that received a $535 million loan guarantee from the Department of Energy in 2009 as part of the Obama administration’s economic stimulus package, but filed Chapter 11 bankruptcy in August 2011. New York-based SpectraWatt also declared bankruptcy in 2011 as did Evergreen Solar. Demand for solar panels is dropping significantly in Europe also, especially in Germany (where annual sales in 2011 were expected to fall as much as 30%), where

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cash-strapped national economies are having difficulties maintaining renewable energy subsidies. The U.S. Department of Commerce opened a trade case in late 2011 which could set punitive tariffs of 50%-250% on Chinese-made solar panels into place. Chinese firms are considering moving some production to South Korea, Taiwan and even, to a limited extent, the U.S. to avoid the possible tariffs. In late 2008, the U.S. government extended a 30% tax credit for the installation of solar panels in homes and businesses through 2016. However, much of the demand for solar panels created by this tax credit has been going to the benefit of manufacturers based in China. As the economy regains strength over the mid- to long-term, there are a number of initiatives being put into place which could revitalize the solar power sector. Along with the 30% tax credit for solar panels in the U.S., the federal government’s stimulus package of 2009 included funds for new solar plants. A five-year Department of Energy investment of $777 million beginning in 2009 was expected to support as many as 46 new energy research centers, of which 24 will be devoted to solar power. The question is, can government subsidies continue long enough for solar energy costs to fall to levels where they would be competitive with fossil fuels? Solarbuzz reported in December 2011, prices per kilowatt hour (kWh) ran between 19.68 cents (for commercial installed systems in sunny climates) and 64.23 cents (for residential installed systems in cloudy climates). Meanwhile, many investors are cashing in on subsidies through Limited Liability Corporations (LLCs), which buy home solar systems and handle installations and maintenance, in addition to selling power to the homeowners at prices just below market rates. The homeowner signs over the 30% tax credit to the LLC. The system is similar to mortgage-backed securities. Companies such as SolarCity Corp. and SunRun, Inc. are installing thousands of solar systems (an estimated 10,000 in 2011 for SolarCity and 17,000 for SunRun) and reaping the benefits as new systems are paid off and power purchases pile up. On a much larger scale, major corporations are agreeing to purchase immense new solar farms, encouraged that utility companies are forced by state legislation to provide a growing percent of their electricity from renewable means. This means that the utilities are in a situation where they have to pay very high rates for solar installations in order to fulfill these requirements. These higher rates are being passed through to electricity consumers, while the

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owners of the solar farms have the potential to earn substantial profits and tax credits. In late 2011, Berkshire Hathaway business unit MidAmerican Energy Holdings agreed to purchase the 550 megawatt Topaz Solar Farm in California from First Solar. The electricity will be sold under a 25-year contract with PG&E, a major utility firm that is facing a requirement that 33% of California’s electricity come from renewables by 2020. GE Energy Financial Services made a similar agreement in September 2011, under which it will buy the massive Desert Sunlight Solar Farm near Riverside, California. Other revenue streams come from real estate owners who lease out space on large structures such as industrial warehouses to solar power producers. For example, Dexus Property Group leased 1.7 million square feet of warehouse roof space in Perris, California to utility company Southern California Edison Corp. for a 20-year term starting in late 2011. The utility and its parent, Edison International, plan to build a solar system on the space capable of producing enough power for 5,200 homes. SunPower, 60% owned by French oil company Total S.A., is constructing a 1.1 million square foot solar installation on the roof of the Gloucester Marine Terminal in Gloucester, New Jersey. Photovoltaics: Traditionally, photovoltaic (PV) technology is based on layers of silicon within panels that have been engineered to attract the sun’s rays and create a flow of electric current to electrodes (the “photoelectric effect”). Historically, solar generation equipment has been much too expensive to compete with conventional generation on a capital investment basis, in addition to the challenges it faces because sunlight is not available 24 hours per day. However, immense amounts of effort and venture capital are being invested in solar technology, both in the U.S. and abroad, and significant progress is being made at the laboratory level. The efficiency of solar cells is rising and costs per unit of output are dropping. However, solar panels remain expensive to install, and they require continuing maintenance in order to keep them clean enough to operate at peak power. The industry’s goal is to greatly increase the efficiency and output of solar cells. Current standard PV technology converts about 15% to 20% of available sunlight into electricity. However, breakthroughs in technology and efficiency are occurring in the laboratory at a rapid clip, thanks to intense new investments in research. Much higher efficiency may eventually be commercially feasible. High efficiency is important when you consider the

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fact that peak sunlight is available only a limited part of the day. Traditional, crystalline solar cells are heavy and expensive to manufacture. However, their efficiency in converting sunlight has historically been superior to thin-film. Crystalline cells are constructed with silicon semiconducting materials. Thin-film, also known as amorphous, can offer advantages in some installations, such as rooftops, because it is lighter in weight. It is somewhat flexible. Also, thin-film can be less expensive to manufacture. The U.S. Department of Energy (DOE) has an official goal, called the “Solar America Initiative” of making solar power costs competitive over the near term. Solar America is behind the PV Incubator project which awards grants for research focused on improved technologies for PV manufacture and installation. The Holy Grail of the PV industry is to be able to sell PV cells at less than $1.00 per watt of electricity produced (equal to five to six cents per kilowatthour), which would make PV reasonably price competitive with traditional electric generation in sunny locations. (Watts are measured at mid day peak output of the cell.) A leading manufacturer, MiaSolé (www.misasole.com), based in Santa Clara, California, announced in December 2010 that it had achieved 15.7% efficiency in commercial-scale thinfilm PV cells. MiaSolé’s technology is based on copper iridium gallium selenide (known as CIGS). This may be a major breakthrough in terms of cost. This “thin-film” is a significantly different technology from traditional PV, which relies on silicon materials incorporated into bulkier, more expensive units. The challenge for thin-film companies has been to enhance the efficiency of the units. Nanosolar, Inc. (www.nanosolar.com) is another leading company in the thin-film field. It has received hundreds of millions of dollars in financing. The company’s unique technology enables it to deposit a nanoparticle ink onto a thin-film surface in a high speed process similar to printing. High speed production lines should eventually enable the company to achieve a very low solar cell cost per watt of electricity delivered. Instead of silicon, Nanosolar also relies on CIGS as a semiconducting material. A competitor, HelioVolt Corp., uses the same material. Nanosolar claims that its thin-film solar cells have converted sunlight into electricity at 15.3% efficiency in laboratory tests. Another exciting thin-film company is First Solar (www.firstsolar.com). The company uses cadmium

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telluride as a semiconducting material, which is a byproduct of the mining and production of base metals such as zinc and copper. First Solar signed an agreement with the government of China in 2009 to build a 2,000-megawatt photovoltaic farm in the Mongolian desert. The plant, part of an 11,950megawatt renewable energy park, would be the world’s largest to date. To fund the park, China will have to complete a feed-in tariff that pays a premium for electricity generated from renewable sources. Cost for the project is estimated at between $5 and $6 billion. (These figures are based on building costs in the U.S. Actual costs in China may be lower.) The park is scheduled for completion in 2019. Meanwhile, First Solar announced plans for two new manufacturing plants, one in Vietnam and another in the U.S. which together will nearly double the firm’s production capacity from 1.4 gigawatts in 2010 to more than 2.7 gigawatts in 2012. As of late 2011, First Solar had 2,700 MW of projects in its pipeline. Internet Research Tip: Photovoltaics For excellent information on the photovoltaic industry, see Solarbuzz, www.solarbuzz.com. The site includes a survey of solar cell prices, along with general news and resources. By 2013, Wal-Mart plans to have more than 130 stores and distribution centers equipped with solar panels. The firm’s hope is that PV can supply up to 30% of a store’s power needs. Likewise, retail chains Kohl’s, Safeway and Whole Foods Market have installed solar panels at some of their stores. Meanwhile, some consumers are willing to pay for solar installations despite high costs (around $40,000 to $70,000 per home). Some roof tile manufacturers are starting to incorporate solar cells into their roofing materials. SRS Energy of Philadelphia makes roofing tiles that blend in with Mediterranean-style homes typically found in California. European and Asian nations are constructing large solar power plants. SunEdison officially activated a 70-megawatt plant in Rovigo, Italy in late 2010. Zhonghao New Energy Investment of Beijing is proposing to build a plant with up to 100 megawatts of capacity near Dunhuang City, China. In 2009, a number of the largest companies in Europe formed a consortium called the Desertec Industrial Initiative to consider the construction of solar power plants in the Sahara desert. The companies include ABB, Munich Re, HSH Nordbank and another nine mostly German firms. The idea calls for the

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construction of solar plants across the Sahara to generate electricity that would be transported to European consumers through thousands of miles of cable beneath the Mediterranean Sea. German physicist Gerhard Knies claims that the project could provide 15% of Europe’s energy needs by 2050 at a cost of about $529 billion. Internet Research Tip: Solar Power To find out more about solar power and the Solar America Initiative, visit the U.S. DOE, Solar Energy Technologies Program at www1.eere.energy.gov/solar. Solar Thermal (or “CSP,” Concentrating Solar Power): SolFocus (www.solfocus.com) has developed solar arrays that use just one-thousandth as much semiconductor material as standard solar panels. The arrays are set with curved mirrors that focus sunlight onto solar cells measuring one-square centimeter, which concentrates the light 500 times. These cells’ efficiency is greater than 38%, compared to the 13% to 19% efficiency for silicon photovoltaic cells. SolFocus hopes to achieve an extremely low cost per kilowatt-hour. CSP is also used to heat fluids to extreme temperatures (up to 750 degrees Fahrenheit), which produce steam that then drives a turbine. A provider of this kind of solar power is Ausra, Inc, acquired by energy technology giant Areva in early 2010. There are several major CSP facilities generating electricity around the world today. Most of them were massive construction projects that required extensive engineering and investment. Typically, a CSP plant involves a large, central tower which is the focus of thousands of mirrors. These towers can be as tall as skyscrapers and can take a long time to build. A highly innovative CSP firm named eSolar (www.esolar.com) may have the best idea. Its theory is similar to that which Babcock & Wilcox is applying to nuclear reactors: smaller and factorybuilt is better. In the same way that B&W plans to build nuclear reactor vessels that can fit on a rail car, eSolar has designed a small, two-piece CSP tower that can be built in the factory, shipped by rail and installed in one day. The tower is the focus of rays gathered by a surrounding field of mirrors. The mirrors are flat and roughly the scale of a mid-sized television screen. Each mirror is mounted on a motor-driven axis that enables the mirror to follow the sun throughout the day. When solar heat from the array of mirrors hits the tower, it boils water that makes steam and turns a turbine. The turbine powers

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an electric generator. Best of all, eSolar’s mirrors and related array frames are designed to be manufactured in a robotic factory, after which they can fit in standard freight containers for shipment by rail. Final installation at the site is relatively fast and easy. The cost savings over traditional CSP may be dramatic. In fact, an eSolar facility may prove to be considerably less expensive to build than a standard photovoltaic solar cell plant of similar capacity. The downside of thermal solar systems is the vast quantities of fresh water required to cool the plants. Annual water consumption by the largest thermal plants can exceed 1 billion gallons. Since thermal plants are typically located in sunny, desert climates to catch maximum hours of sunlight, water supply issues become even more critical. An alternative to wet cooling is dry cooling, which uses fans and heat exchangers similar to the process used in automotive radiators. Dry cooling reduces efficiency and adds significantly to costs, making it less attractive to thermal plant builders. A landmark project in the Mojave Desert in California broke ground in October 2010. BrightSource Energy’s $2 billion Ivanpah project will be the largest solar thermal project in the world, generating between 370 megawatts and 392 megawatts and able to power more than 140,000 homes during peak hours of the day. According to GTM Research, there were about 17.54 gigawatts (GW) of CSP projects under development globally as of mid-2011, with 8.67 GW in the U.S., followed by Spain with 4.46 GW and China with 2.5 GW. For the greatest efficiency, CSP can be combined with unique power storage technologies. For example, a system of heat storage based on pressurized water or molten salt allows solar heat to be captured during daylight hours, and then used to turn turbines for electric generation during evening hours. CSP can also be combined with photovoltaics. SolFocus, Inc., based in Mountain View, California, has developed solar arrays that use just onethousandth as much semiconductor material as standard photovoltaic solar panels. The arrays are set with curved mirrors that focus sunlight onto solar cells measuring one square centimeter, concentrating the light 500 times. SolFocus had installations in California, Spain and Hawaii by 2010. Researchers at the University of Delaware set a record, in mid-2007, of 42.8% efficiency in a concentrated PV cell. Their goal is to hit 50%. On the corporate side, Massachusetts-based subsidiary Spire Semiconductor LLC (Spire Corporation is the parent company) produced a 42.3% efficient CPV

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cell in October 2010. Shell and BP are also active in solar cell technology. Space Solar Power (SSP): First proposed in 1968 by then-president of the International Solar Energy Society Peter Glaser, this technology, based on collecting sunlight from a geostationary orbit high above the Earth would enable the gathering of constant light that is eight times as strong as that on the ground. A solar panel on the orbiting structure would convert the light to electric current, which would then be beamed to Earth by microwave to a specified antenna. The catch is that the final output, which is only a few hundred watts per kilogram, is too low to justify the enormous costs related to such a project, initially estimated to be $305 billion (in 2000 dollars). Since then, costs have fallen somewhat due to technological advances. In May 2006, the University of Neuchatel in Switzerland announced a technique using a film created for use in space that yields power densities of 3,200 watts per kilogram. There is also interest in SSP in Japan, where the JAXA space agency has hopes to launch a satellite by 2030 that will spread into a sizable solar array capable of beaming 100 kilowatts of microwave or laser power to Earth. In mid-2011, researchers at the University of Surrey working with satellite manufacturer Astrium (a subsidiary of European aerospace firm EADS), were testing a fiber laser with a wavelength of 1.5 microns, placing in within the infrared spectrum and therefore better suited to transmission through the atmosphere. Should continued tests go well, a prototype could be launched into space as early as 2016. Solar Updraft Towers: Yet another potential boon for solar power is a proposed renewable energy power plant that would heat air in a large greenhouse, thereby creating convection that would cause air to rise and escape through a tall, specially designed tower. The upward-moving air would drive electricity-producing turbines. As of late 2011, there was only one updraft tower in operation, and is the first phase of a $208 million multi-phase project. It is located in China and is reported producing 200 kilowatts per day. There are also projects on the drawing board in Australia, the U.S. and Spain. However, funding for such projects remains in question. In Australia, for example, a 50-megawatt Tapio Station plant is under consideration that would feature a tower that is 1,600 feet tall and 260 feet in diameter. The tower would be surrounded by a twomile diameter transparent canopy that would trap and

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heat air at ground level, which would naturally rise into the tower (which acts as a kind of vacuum). Inside the tower, wind would be produced by the vacuum to power an array of turbines clustered around the tower. Proponents of the project, which is headed by Melbourne-based EnviroMission Ltd. (www.enviromission.com.au), hope to eventually power as many as 200,000 homes. In 2009, a contract was signed between EnviroMission and Southern California Public Power Authority for construction of a 200-megawatt solar tower plant in Arizona. A purchase agreement for the power eventually produced by the plant was signed in October 2010. 3) Wind Power

Mankind has utilized wind as a form of energy ever since the first sail was hoisted on a crudely built boat thousands of years ago. In the 12th century, it was used to power the first windmills. It is only natural that wind should be viewed as an attractive means of generating electricity. Today, advanced wind-powered generating plants are common around the world. Windmill manufacturers have continually enhanced technology. As a result, windmills are much taller than before, with vastly wider blade spans. Modern windmills have extremely high output and are less costly to maintain for a given amount of generation. New models also have much less downtime due to breakdowns. As a result, windmill farm development became more effective, both economically and in terms of total power created. Nonetheless, government incentives remain essential to make construction of such plants financially appealing. For example, the U.S. Congress has steadily extended the Production Tax Credit (PTC) for wind power producers. In addition, traditional electric utilities are more and more likely to be required by local or national governments to use renewable sources, such as wind, for a significant portion of their total power generation. Consequently, many major utility firms and energy concerns have been investing significant amounts in new windmill farms. By the third quarter of 2011, America’s wind generating capacity had reached 43,000 megawatts, according to the American Wind Energy Association, or about 3% of the electricity supply in the U.S. The greatest concentration of wind power in America is in Texas, where there were 10,223 installed megawatts of capacity as of September 2011, up from 2,768 at the end of 2006. Iowa ranked second in 2011 at 3,708.

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Internet Research Tip: Wind Power For the latest on wind-powered electricity generation in the U.S., see the American Wind Energy Association at www.awea.org. Meanwhile, wind power installation in Europe and Asia is progressing at a staggering pace. Global wind generation capacity reached 197.0 gigawatts in 2010, according to the Global Wind Energy Council, up from 122.2 gigawatts in 2008. China had the highest total capacity installed with 44.7 gigawatts, followed by the U.S. with 40.2 gigawatts and Germany with 27.2 gigawatts. The Global Wind Energy Council projected installed global wind capacity to reach 332 gigawatts by 2013. The European Wind Energy Association set a target of 40 gigawatts of offshore wind power by 2020, or enough electricity to power approximately 34 million households. The U.K. has committed to raise its share of electricity generated by renewable resources from 7% in 2010 to 30% by 2020. Britain opened the world’s largest turbine farm to date off its southeast coast in late 2010. The 300-megawatt Thanet wind farm is operated by Vattenfall, an energy company in Sweden. Thanet has 100 turbines installed across 13.5 square miles. Each turbine is 377 feet tall. The farm is part of an aggressive threeround offshore development that could cost as much as $154 billion. The real news in turbine manufacturing is in China, where costs are cheaper than in the west. Analysts at Sanford C. Bernstein estimated that Chinese turbines are on average 20% cheaper than their western counterparts as of 2011. For 2012, that gap could increase to 30%. The cost of generating electricity from wind has fallen dramatically. In the 1980s, wind power generation cost as much as 30 cents per kilowatthour. Today, that cost has dropped closer to five cents to seven cents per hour for onshore turbines, but only after factoring in tax credits and government incentives. Without those incentives, wind remains uncompetitive with traditional generation methods such as coal-fired plants. The industry’s goal today is to enhance wind technologies and systems to the point that wind is competitive without government aid, but that remains a considerable challenge. New technologies for storing excess wind-generated electricity for later use may be the answer. New technology has also enabled wind turbines to grow to massive size. For example, the Enercon E-126, manufactured by German wind turbine firm Enercon

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GbmH, has a total height of 650 feet, rotor diameter of 413 feet and can generate up to 7.5 megawatts. Wind farms are planned for deeper water and further distances from shore than ever before, which pose serious technical challenges. Scientists are hoping to find a way to anchor the platforms in deeper water past current limits. A professor at the Massachusetts Institute of Technology proposes using offshore oil well technology to anchor wind platforms to the ocean floor using tense metal cables. The process would save on building materials and makes installation far easier than the “monopiles” currently used to support offshore windmills. With the cable technology, wind platforms could be used in water of up to 600 feet. German wind equipment manufacturer VDMA Power Systems builds turbines using steel foundations almost 100 feet deep. While deeper and more remote offshore farms are becoming more achievable, the cost to build and maintain can be three times that for onshore farms. The wind industry suffered a lull in new development as a result of the 2008-09 global economic recession. However, Morgan Stanley and Citigroup each invested $100 million in new wind farms in the U.S., spurred by a federal program that pays 30% of the cost of building renewable energy facilities. Investors are also awarded accelerated depreciation deductions that help offset taxes. Meanwhile, investment in offshore wind farms was booming in the EU in 2011, with a total of 141 gigawatts of energy capacity online, under construction, consented or planned. The completion of these projects is subject to funding, which may prove problematic in 2012 since most EU governments are facing trying economic times. In India, wind-generating equipment manufacturer Suzlon Energy is ranked among the world’s largest wind energy producers by installed megawatts of capacity. In addition to serving the Indian market, Suzlon also sells machinery to companies in the U.S., China and Australia. China surpassed the U.S. in 2009 in terms of new capacity, and continued to lead the world in 2010 with 44.7 gigawatts, followed by the U.S. with 40.2 gigawatts. China required that large power companies generate at least 3% of their electricity by renewable sources by 2010. That figure rises to 8% by the end of 2020. An exciting breakthrough in wind power technology may allow surplus energy to be stored for use during peak hours. About 95 municipal utilities in Iowa, Minnesota, North Dakota and South Dakota in the U.S. are spending $200 million to build a 268-

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megawatt storage system 3,000 feet underground. The system, known as the Iowa Stored Energy Park, www.isepa.com, will direct surplus electricity to a compressor that pumps air deep into layers of porous sandstone underneath dense, almost impermeable shale. The sandstone expands, trapping the air, which is later released. As the air rushes upward, it fires a turbine on the surface, thereby producing energy. This technology is referred to as “compressed air energy storage” (CAES). If this prototype is successful, it could make wind generation significantly more efficient and more cost competitive. On the northern shore of Oahu in Hawaii in 2011, Boston-based power firm First Wind began operations of a 30-megawatt farm that has a 15megawatt battery built by Extreme Power of Austin, Texas. The battery system is controlled by computers that keep the battery half-charged most daylight hours. As wind fluctuates, the computers adjust the flow of electricity to maintain the exact half-charged level. In addition, the system can be used for arbitrage, meaning that it can store power at times when prices are low and sell it when prices are high. It can hold 10 megawatt-hours of energy, or about as much as a 30-megawatt farm can produce in 20 minutes when running at full capacity. This groundbreaking technology has a high price tag, with some analysts estimating the cost at around $130 million for the project, including $10 million for the battery. The U.S. DOE provided a loan guarantee of $117 million. The project, called Kahuku Wind, has the largest installed battery storage system connected to a U.S. wind farm. Wind power is not without its detractors. There are those who find the turbines to be noisy and unsightly, and others who have concerns about the blades endangering birds and bats. The fact that continued government subsidies and incentives have been required point out the inefficiencies of the technology. In addition to the larger and larger turbines under development, residential customers can also invest in small turbines of about 24-feet in diameter that stand on towers from 35 to 140 feet high. These systems have the potential to save users between 30% and 90% on their electric bills. Prices for the systems (including installation) run between $8,500 and $80,000, depending on the size and capacity of the equipment.

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Of all renewable energy sources, hydroelectric has proven to be one of the most reliable, controllable and cost-effective, as well as the most viable alternative for fossil fuel energy. Other forms, such as wind and solar, have great potential, but they have the handicap of being less predictable sources of energy that to-date have been unable to deliver power at competitive costs. In the U.S., there were 2,409 trillion Btus of conventional hydroelectric generation in 2010, according to the U.S. Department of Energy (DOE). During that year, hydroelectric accounted for 31.2% of U.S. renewable energy consumption. Unfortunately, potential locations for new hydrodams are limited, and there is little projected growth for the industry in the U.S. Also, conventional hydropower is subject to the availability of running water—recent droughts in the Western U.S. greatly reduced hydro output, and it can happen again. In other countries, there is much new hydro development under consideration or construction. Although most industrialized countries have already realized their full potential for hydro generation, many developing countries are just getting started. For example, China, already a major producer of hydropower, completed structural work in 2008 on the enormous Three Gorges Dam. The dam is projected to have a peak generation capacity of 22.5 gigawatts and it will be the largest single source of electricity in the world by total capacity. Due to China’s intense modernization and rapidly growing thirst for energy, this project is of great importance to the future development of the nation. Upon completion, the dam is conservatively estimated to cost $30 billion. Nonetheless, there was worldwide protest over the fact that hundreds of thousands of people were displaced from homes in the path of the reservoir created by the dam. The dam ran into problems in 2011 during final certification tests. Severe pollution and geologic problems may yet compromise the project. Construction left tons of garbage floating the in water and the weight of the reservoir may increase the chances of earthquakes and landslides. Many less grandiose hydro projects are also underway around the world, and a massive, but highly controversial, hydro project is planned in the Amazon region of Brazil to help provide electricity to this nation that has been enjoying significant economic growth. Meanwhile, by 2020, China plans to triple its total national hydroelectric generation to 300 gigawatts as part of its long-term goal to get 15%

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of the nation’s energy from renewable sources by that year. 5) Geothermal Power

Like hydroelectric power, geothermal energy can be extremely reliable and cost-effective. It is a wellestablished technology that uses several different methods to harvest heat from underneath the earth’s surface. As with many other forms of renewable energy, geothermal energy plants must be located in appropriate areas. In this case, potential sites for traditional geothermal generation include areas with volcanic activity, tectonic shifting, major hot springs or geysers, where the earth’s heat is very near the surface. In the United States, most geothermal resources are located in the western portion of the country, along the numerous fault lines on the western seaboard and in the Rocky Mountains. The U.S. is a world leader in geothermal energy, with 212 trillion Btus in 2010 installed capacity. (Nonetheless, geothermal generation is only 2.6% of renewable electric power generation in the U.S.) In many parts of the U.S., smaller geothermal resources are used to heat buildings or to provide commercial quantities of hot water, but are not used to generate electricity. This may change with the development of new projects mostly in the western U.S. that could more than double capacity. Backed by federal tax credits, utility companies are looking to geothermal as a greater power source. The Massachusetts Institute of Technology conducted a 2007 study that concluded that as much as 100,000 megawatts of U.S. power generation could come from geothermal resources by 2050. In 2009, the U.S. DOE announced up to $338 million in stimulus funds to be used for 123 geothermal projects in 38 states to be built over the next few years. Another boost to geothermal energy is its relatively low cost to produce. A typical shallow plant in the U.S. produces electricity for about $0.10 per kilowatt-hour (about the same as producing electricity from coal or gas). Taking into account production tax credits offered for renewable energy products, the price per kilowatt-hour for geothermal goes down to about $0.08. Deeper plants cost more. However, there is a major obstacle facing significant expansion of geothermal drilling. The possibility of earthquake activity near test wells cancelled at least one project in the U.S and one project in Europe in 2009. Observers are concerned that the drilling is causing dangerous reactions underground. The cancelled projects use technology based on fracturing underground rock, enabling water

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to penetrate the rock. The water turns to steam, which is then captured to turn a turbine-driven generator. It is possible that the fracturing process can result in tremors. This issue may be difficult to impossible to resolve, and much further study will be required. New technologies may be required in order to safely drill, particularly if the site is anywhere near a highly populated area. After technical problems forced AltaRock Energy to shutdown operations at a location called the Geysers in Northern California in early 2010, the DOE investigated. The result was the imposition of new safeguards, including the use of ground-motion sensors, a federally-approved plan for shut down in the event of earthquakes and the filing of estimates by the drilling company of expected earthquake activity for review by outside experts. There are two predominant techniques for traditional geothermal electricity generation, depending on the type of heat resource: flash steam and binary cycle. High temperature locations can be tapped directly, using steam coming out of the ground to drive a turbine in a technique known as flash steam generation. This is the most common plant type in use. Where lower-temperature geothermal sources are tapped, hot water is used to heat another liquid with a lower boiling point (such as isobutene or isopentane), which then drives the turbine. This technique is known as binary cycle generation. The drawback of binary cycle generation is that it is much less efficient than flash generation. Engineers have also begun combining flash and binary generation, which together increase the efficiency of a plant. Binary cycle technology enables the construction of a plant at a geothermal water source that is substantially cooler than that used in flash steam generation. Technology developed at Los Alamos National Labs (LANL) in New Mexico may create new opportunities for the utilization of geothermal plants. In a 26-year-long project, LANL was able to develop the tools necessary to harvest heat from almost anywhere on earth. Called Hot Dry Rock Geothermal Energy Technology (HDR), the technique drills holes into the ground until they reach rock that is suitably hot at about 15,000 feet. (Such a system is also referred to as an Enhanced Geothermal System or EGS.) Then, pipes are installed in a closed loop. Water is pumped down one pipe, where it is heated to appropriately high temperatures. The resulting hot water shoots up to the surface. This is used to create steam that drives a turbine to power an electric generating plant. (This may be either a flash

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steam or binary cycle plant.) As the water cools, it is pumped back into the ground. Geodynamics, Ltd., www.geodynamics.com.au, based in Milton, Queensland, Australia, has high hopes for this technology. It plans to build 10 50megawatt power stations in Cooper Basin in central Australia, an area which geologists believe has the potential to support hundreds of power plants with a capacity of up to 12.5 gigawatts. Australian government agency Primary Industries and Resources SA forecasted spending on geothermal projects between 2002 and 2014 could reach $2.7 billion (including $250 million in government grants), with about 72% funding EGS projects. Meanwhile, Google invested more than $10 million in two California EGS companies, Potter Drilling and AltaRock Energy. Binary cycle generation makes it possible to produce power from hot springs that were previously thought too cool to efficiently use for geothermal efforts. The Chena hot springs in Alaska average about 109 degrees Fahrenheit, but the springs’ owners and engineering conglomerate United Technologies (www.utc.com) have devised a method using a refrigerant called R134a (tetrafluoroethane) to drive turbines. Water from the hot springs is used to heat R134a, which has a relatively low boiling point. A gas similar to steam is produced, which drives the turbines. Cooler temperatures yield smaller amounts of gas, so the designers of the Chena plant compensated by slashing operating costs. Mass-produced air conditioner parts were substituted for standard geothermal components, a scheme that might be adopted by geothermal plants the world over. Yet another geothermal technology is that developed by Bob Potter of Potter Drilling and Jefferson Tester of MIT called spallation. Superheated steam hits rock, causing crystalline grains to expand, thereby causing tiny fractures. Small particles, called spalls, break off as the grains expand. The technology effectively uses steam as a kind of drill to melt rock. It is similar to air spallation drilling previously used for mining ore. Iceland is a respected leader in geothermal and hydroelectric power. Even though the country's capacity for both is less than that of some other countries, the low-population island nation of Iceland supplies more than 50% of its energy needs with geothermal energy and another 17% by hydroelectric. Generating such a massive amount of energy with these sources is made possible by the island nation’s incredible natural resources, but was brought to bear

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by a concentrated effort by the government and the people. The Iceland Deep Drilling Project (IDDP), funded by a consortium of three Icelandic energy companies, hopes to tap extremely hot steam in an existing geothermal well at depths of up to 2.5 miles, which is close enough to the Earth’s layer of magma to produce steam of over 1,100 degrees Fahrenheit. The drilling and collecting equipment necessary is more expensive than standard geothermal machinery, due to the higher pressures and temperatures found at great depths. However, proponents of the project believe that the extra costs (which might double or triple) will be easily regained because the amount of electricity produced is expected to multiply by as much as 10 times. The IDDP was in testing stages as of late 2011, with a core test drilled to 2,800 meters. (For additional information, see www.iddp.is.) Iceland’s recent financial difficulties may put nearterm funding in question. 6) Biomass, Waste-to-Energy, Waste

Methane and Biofuels such as Biodiesel Biomass energy is the term describing the conversion of organic material into usable energy, either by burning it directly or by harvesting combustible gases or liquids. In some cases it can be referred to as “waste-to-energy,” because a common application is the burning of a city’s garbage or an industrial plant’s production scrap, such as wood chips or sawdust. Agricultural residues, such as rice straw, nutshells or wheat straw, are also useful as biomass fuels. Waste-to-energy plants have been in use in the U.S. for decades, frequently operating in tandem. A significant advantage of waste-to-energy is the fact that it reduces the amount of material placed in overburdened landfills. The production of ethanol or biodiesel is another way to utilize biomass to create fuel. Today, several factors are creating heightened interest in waste-to-energy. One of the most important aspects of generating electricity in this manner is the fact that burning garbage takes up a lot less room than compacting it in a landfill. Many municipalities are faced with severe restraints and high costs in their landfill operations. Also, industrial sites are extremely interested in capturing their on-site waste and excess heat as a way of generating electricity, sometimes referred to as cogeneration. In comparing landfill gas harvesting and waste incineration, a recent study by the Environmental Protection Agency (EPA), the Energy Information Administration and the DOE found

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incineration to be far more efficient. Incineration produces 590 kilowatt-hours of electricity per ton of waste compared to the 65 kilowatt-hours produced from landfill gas. Waste-to-energy plants have taken off in several countries in the EU, especially Denmark where there were 29 waste incineration plants in operation as of early 2010, with another 10 in the planning stages or under construction. In the U.S., only 87 trash burning plants were in operation as of early 2010, almost all of which were at least 15 years old. Major electric utilities including Southern Company and Progress Energy are making significant biomass-to-electricity power plant investments. Oglethorpe Power near Atlanta announced in 2009 that it will build two 100megawatt plants to be completed in 2014 and 2015 respectively. However, in 2011 the company announced that it will not move ahead with the projects. Instead, it will invest in two natural gasfired plants near Dalton, Georgia. This trend may accelerate due to today’s extremely low cost of natural gas thanks to abundant shale gas production. Quantities of waste, such as sewage, manure heaps at feedlots and the garbage filling landfills, create large amounts of methane gas as they decompose. One form of biomass energy generation that utilizes this phenomenon has been affectionately named “cow power.” In this method of energy production, cow manure is placed in a holding tank, where it is heated to around 100 degrees Fahrenheit. This allows naturally occurring bacteria to break down the material, releasing methane, which is collected and burned in a generator. By this method, the manure from one cow can produce about 1,200 kilowatt-hours per year, meaning ten cows can power an average American house. Not only can cow power produce electricity, it can also be used to produce high quality (and noticeably less smelly) fertilizer. Though it has been around for decades, cow power has not seen serious interest until recently. It has grown much more efficient over the years, and cheaper to boot. Both California and Vermont have launched assistance programs to help farmers pay for the systems. A leading waste disposal firm, Waste Management, Inc., is capitalizing on waste methane at a handful of the numerous landfills that it operates. For example, working with energy management firm Ameresco, it is providing waste methane energy to a BMW automobile plant in Spartanburg, South Carolina, via a pipeline to a landfill ten miles away. Of the approximately 2,400 landfills in the U.S. as of

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July 2011, about 558 collect gas for energy use according to the EPA, while another 510 may be good candidates. Both bioethanol and biodiesel are considered to be biomass energy sources. Many types of organic fats are currently used worldwide to make biodiesel, including soybean oil, rapeseed oil (the same oil that is commonly sold as canola), palm oil and beef tallow. Unfortunately, the refining of biodiesel is not a sure way to profits. Costs of capital investment are high, and feedstocks, particularly vegetable oils, can be extremely expensive. In 2009, the National Biodiesel Board estimated that about two-thirds of America’s biodiesel capacity was idle. From an environmental impact point-of-view, salvaging chicken fat from a meat packing plant to use in fuels may be reasonably efficient. However, dramatically altering the usage of vast swaths of land to grow plants, such as corn, for fuel is another matter. Land displacement for biofuel use has turned into a global problem and a huge controversy. Farmers from the Americas to Brazil to Indonesia have been converting land that was previously used for food agriculture into acreage used for biofuel plant growth. At the same time, farmers elsewhere have been incentivized by high demand in the marketplace to destroy rain forest, woodlands or open plains in order to plant food crops to take up the slack in the market, or to plant high-value plants for biodiesel or bioethanol feedstock. In the U.S., the EPA slashed its 2010 mandate for cellulosic ethanol from 100 million gallons to 6.5 million due to the high costs of producing the fuel and the lack of facilities capable of its manufacture. The facilities that did exist at the time were government-subsidized pilot projects. In early 2008, studies were published in the respected scientific journal Science that attempted to quantify the net effect of these changes in land use. When woodlands or prairies are cleared and burned to make way for crops, vast amounts of carbon are released into the atmosphere. Among the biggest culprits are farmers clearing rain forest in Indonesia in order to plant palms for the harvesting of palm oil for biodiesel, and those clearing rain forest in Brazil for planting of soy for biodiesel. (Clearing grassland in the U.S. in order to plant corn for bioethanol is another problem.) The 2008 studies found that these activities create immense carbon emission problems, far in excess of any carbon saved over the short term by burning a plant-based fuel as opposed to a petroleum-based fuel in cars and trucks. On a worldwide basis, changed land use to corn-based

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ethanol will almost double greenhouse emissions over 30 years and increase greenhouse gases for 167 years. Alternative biofuel technologies are being developed by several firms. For example, Joule Unlimited Technologies, Inc.’s Helioculture platform utilizes proprietary, engineered photosynthetic microorganisms to produce diesel, ethanol and multiple chemicals without using biomass feedstocks, arable land or fresh water. These water-based organisms create their own food through photosynthesis. Unlike algae, which must be harvested and processed to create hydrocarbons, Joule’s organisms release fuels continuously which can easily be converted to the desired form. The firm can directly produce up to 15,000 gallons of diesel fuel and 25,000 gallons of ethanol per acre at costs as low as $20 per barrel of equivalent of diesel and 60 cents per gallon of ethanol. Joule has been operating a pilot plant to produce ethanol in Texas since 2010. It plans to open a larger demonstration scale plant in New Mexico. 7) Ethanol Production Soared, But U.S.

Federal Subsidy in Question High gasoline prices, effective lobbying by agricultural and industrial interests and a growing interest in cutting reliance on imported oil put a high national focus on bioethanol in America in recent years. Corn and other organic materials, including agricultural waste, can be converted into ethanol through the use of engineered bacteria and superenzymes manufactured by biotechnology firms. This trend has given a boost to the biotech, agriculture and alternative energy sectors. At present, corn is almost the exclusive source for bioethanol in America. This is a shift of a crop from use in the food chain to use in the energy chain that is unprecedented in all of agricultural history—a shift that is having profound effects on prices for consumers, livestock growers (where corn has long been a traditional animal feed) and food processors. In addition to the use of ethanol in cars and trucks, the chemicals industry, faced with daunting increases in petrochemicals costs, has a new appetite for bioethanol. In fact, bioethanol can be used to create plastics—an area that consumes vast quantities of oil in America and around the globe. Archer Daniels Midland has a plant in Clinton, Iowa that produces 110 million pounds of plastic per year through the use of biotechnology to convert corn into polymers.

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Ethanol is an alcohol produced by a distilling process similar to that used to produce liquors. A small amount of ethanol is added to much of the gasoline sold in America, and most U.S. autos are capable of burning “E10,” a gasoline blend that contains 10% ethanol. E85 is an 85% ethanol blend that may grow in popularity due to a shift in automotive manufacturing. Although only about 2,777 of the 170,000 U.S. service stations sold E85 as of the beginning of 2011, there may be an increase in demand for ethanol in the U.S. due to mandates by the U.S. government calling for reduced dependence on oil. Yet, despite the millions of vehicles on the road that can run on E85 and billions of dollars in federal subsidies to participating refiners, many oil companies seem unenthusiastic about the adoption of the higher ethanol mix. E85 requires separate gasoline pumps, trucks and storage tanks, as well as substantial cost to the oil companies (the pumps alone cost about $200,000 per gas station to install). The plants needed to create ethanol cost $500 million or more to build. Many drivers who have tried filling up with E85 once revert to regular unleaded when they find as much as a 25% loss in fuel economy when burning the blend. Ethanol is a very popular fuel source in Brazil. In fact, Brazil is one of the world’s largest producers of ethanol, which provides a significant amount of the fuel used in Brazil’s cars. This is due to a concerted effort by the government to reduce dependency on petroleum product imports. After getting an initial boost due to government subsidies and fuel tax strategies beginning in 1975, Brazilian producers developed methods (typically using sugar cane) that enable them to produce ethanol at moderate cost. The fact that Brazil’s climate is ideally suited for sugarcane is a great asset. Also, sugar cane can be converted with one less step than corn, which is the primary source for American ethanol. Brazilian automobiles are typically equipped with engines that can burn pure ethanol or a blend of gasoline and ethanol. Brazilian car manufacturing plants operated by Ford, GM and Volkswagen all make such cars. In June 2011, Royal Dutch Shell, a global energy giant, and Cosan Industria e Comerica SA of Brazil announced a new joint venture to be one of the world’s largest producers of ethanol. Based in Brazil, their firm, known as Raizen, will eventually have sugarcane crushing capacity of 100 million tons yearly. Elsewhere in Brazil, oil giant Petroleo Brasileiro (“Petrobras”) recently invested about $1

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billion to purchase a 46% interest in Guarani, one of Brazil’s largest sugar millers. In America, partly in response to the energy crisis of the 1970s, Congress instituted federal ethanol production subsidies in 1979. Corn-based grain ethanol production picked up quickly, and federal subsidies have amounted to several billion dollars. The size of these subsidies and environmental concerns about the production of grain ethanol produced a steady howl of protest from observers through the years. Nonetheless, the Clean Air Act of 1990 further boosted ethanol production by increasing the use of ethanol as an additive to gasoline. Meanwhile, the largest producers of ethanol, such as Archer Daniels Midland (ADM), have reaped significant subsidies from Washington for their output. Between 2005 and 2009, the federal government spent $17 billion in tax credits. For 2010, the budget called for another $5.4 billion. With the U.S. government’s budget deficit mounting to more than $1.5 trillion as of 2011, many lawmakers are looking for ways to cut government spending. Ethanol production hit record levels in 2010 and 2011, and is creating a surplus. Some politicians are calling for a reduction or even the phasing out of government subsidies for ethanol production. The U.S. Energy Act of 2005 specifically required that oil refiners mix 7.5 billion gallons of renewable fuels such as ethanol in the nation’s gasoline supply by 2012. Ethanol production in the U.S. reached 13.23 billion gallons in 2010, up from 10.75 billion gallons in 2009, according to the U.S. Energy Information Administration (EIA). Iowa, Illinois, Nebraska, Minnesota and South Dakota are the biggest producers, in that order. Although grain farmers and ethanol producers enjoyed high prices at the onset, a glut of ethanol supply eventually caused market prices to plummet. Next, the Energy Independence and Security Act of 2007 called for even more ethanol production, with a goal of 36 billion gallons per year by 2022 including 21 billion gallons to come from cellulosic and advanced biofuel sources. However, environmental concerns, the sizeable investments needed to construct ethanol refineries and questions about the advisability of using a food grain as a source for fuel made these goals unattainable using existing technologies. In addition, the automobile industry expects a significant amount of market share to slowly shift to electric or hybrid electric vehicles over the long term, which will reduce dependency on liquid fuels, such as gasoline and ethanol. The Renewable Fuel

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Standard of 2010 reduced ethanol requirements to 15 billion gallons of the 36 billion gallons of renewable fuel that must be used for transport by 2022. Until recently, some of the largest ethanol production companies have suffered severe financial problems. Notably, VeraSun filed for bankruptcy protection in late 2008, citing high corn prices and difficulty in obtaining trade credit. The 2008-09 plummet in the price of crude oil made ethanol look much less attractive from a cost point-of-view. However, as of 2011, with oil prices hovering close to $100 per barrel and therefore making ethanol prices more attractive, most major ethanol producers such as Valero Energy, POET and Archer Daniels Midland are in the black. Traditional grain ethanol is typically made from corn or sugarcane. In contrast to grain ethanol, “cellulosic” ethanol is typically made from agricultural waste like corncobs, wheat husks, stems, stalks and leaves, which are treated with specially engineered enzymes to break the waste down into its component sugars. The sugars (or sucrose) are used to make ethanol. Since agricultural waste is plentiful, turning it into energy seems a good strategy. Cellulosic ethanol can also be made from certain types of plants and grasses. The trick to cellulosic ethanol production is the creation of efficient enzymes to treat the agricultural waste. The U.S. Department of Energy is investing heavily in research, along with major companies such as Dow Chemical, DuPont and Cargill. Another challenge lies in efficient collection and delivery of cellulosic material to the refinery. It may be more costly to make cellulosic ethanol than to make it from corn. In any event, the U.S. remains far behind Brazil in cost-efficiency, as Brazil’s use of sugar cane refined in smaller, nearby biorefineries creates ethanol at much lower costs per gallon. Iogen, a Canadian biotechnology company, makes just such an enzyme and has been operating a test plant to determine how economical the process may be. The company hopes to construct a $300 million, large-scale biorefinery with a potential output of 50 million gallons per year. Its pilot plant in Ottawa utilizes wheat straw and corn stalks. In mid2009, a Shell gasoline station in Ottawa, Canada became the first retail outlet in that nation to sell a blend of gasoline that features 10% cellulosic ethanol. In the U.S., the Department of Energy has selected six proposed new cellulosic ethanol refineries to receive a total of $385 million in federal funding. If completed, these six refineries are

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expected to produce 130 million gallons of ethanol yearly. Iogen’s technology will be used in one of the refineries, to be located in Shelley, Idaho. Partners in the refinery include Royal Dutch Shell. Cellulosic ethanol proponent Novozymes and its partner Poet LLC were seeking government funding in early 2011 to build a new plant by 2013. Meanwhile, the Canadian government plans to support the Canadian biofuel industry with up to 500 million Canadian dollars for construction of nextgeneration plants. Iogen is expected to receive part of those funds for construction of a commercial scale cellulosic ethanol plant. Biotech Breakthrough Modifies Corn for Faster Conversion to Ethanol In February 2011, the U.S. Department of Agriculture approved commercial planting for a revolutionary, genetically modified corn seed developed by Syngenta. The modification causes the corn to produce an enzyme that breaks down corn starch into sugar, thus taking the first step needed to produce ethanol within the corn itself, instead of within a refinery. In the U.S., BP and Verenium announced plans in February 2009 to form a joint venture to build, on a commercial scale, a cellulosic ethanol plant in Highlands County, Florida. In July 2010, BP Biofuels North America acquired Verenium’s cellulosic biofuels business and became the sole investor in the new plant. The plant is expected to cost $300 million and have the capacity to produce 36 million gallons of ethanol yearly from agricultural waste. Other companies, such as Syngenta, DuPont and Ceres, are genetically engineering crops so that they can be more easily converted to ethanol or other energy producing products. Syngenta, for example, is testing a bio-engineered corn that contains the enzyme amylase. Amylase breaks down the corn’s starch into sugar, which is then fermented into ethanol. The refining methods currently used with traditional corn crops add amylase to begin the process. Environmentalists are concerned that genetically engineering crops for use in energy-related yields will endanger the food supply through crosspollination with traditional plants. Monsanto is focusing on conventional breeding of plants with naturally higher fermentable starch content as an alternative to genetic engineering. Another concern relating to ethanol use is that its production is not as energy efficient as that of

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biodiesel made from soybeans. According to a study at the University of Minnesota, the farming and processing of corn grain for ethanol yields only 25% more energy than it consumes compared to 93% for biodiesel. Likewise, greenhouse gas emissions savings are greater for biodiesel. According to one estimate, producing and burning ethanol results in 12% fewer greenhouse gas emissions than burning gasoline, while producing and burning biodiesel results in a 41% reduction compared to making and burning regular diesel fuel. A 2009 vote by Illinois’ Air Resources Board requires the use of “lower carbon intensity” fuels starting in 2011, which may have a negative long term effect on the use of ethanol. Global warming concerns were heightened in 2009 by a report by the International Council for Science (ICSU) that concluded that the production of biofuels, including ethanol, has hurt rather than helped the fight against climate change. The report cites findings by a scientist at the Max Planck Institute for Chemistry in Germany that biofuels expand the harmful effects of a gas called nitrous oxide, which may be 300 times worse for global warming than carbon dioxide. The amounts of nitrous oxide released when farming biofuel crops such as corn may negate any advantage gained by reduced carbon dioxide emissions. In addition, ethanol production requires enormous amounts of water. To produce one gallon of ethanol, up to four gallons of water are consumed by ethanol refineries. Add in the water needed to grow the corn in the first place, and the number grows to as much as 1,700 gallons of water for each gallon of ethanol. Other concerns regarding the use of corn to manufacture ethanol include the fact that a great deal of energy is consumed in planting, reaping and transporting the corn in trucks. Also, high demand for corn for use in biorefineries has, from time-to-time, dramatically driven up the cost per bushel, creating burdens on consumers. As of 2010, new technology was being tested that would produce ethanol from corn cobs that have been stripped of edible kernels. POET is a South Dakota-based producer of ethanol from corn that operates 27 plants in seven U.S. states. It hopes to construct a plant in Emmetsburg, Iowa that will be one of the first in the U.S. to produce cellulosic ethanol on a large scale, using non-food sources such as corn cobs, leaves, husks and stalk (as opposed to corn kernels).

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Novozymes, a Danish bioindustrial product manufacturer, has developed an enzyme blend containing an agent called GH-61 that has the potential to speed chemical reactions. Enzymes containing GH-61 may reduce production costs to the extent that producing ethanol can be competitive on a price basis with fossil fuels. Novozymes says that the cost of the enzyme, called Cellic, is about 50 cents per gallon, or less than a third of the projected $1.90 per gallon total cost (naturally, the retail price per gallon would be higher). Poet’s Emmetsburg plant will utilize the substance in its ethanol production. Another potential for ethanol production plants is to retool them to produce other kinds of biochemicals. For example, Houston, Texas startup Glycos Biotechnologies, Inc. is developing an add-on process to use glycerin, a by-product of ethanol, to make chemicals suitable for use in fabrics, insulation and foodstuffs. Other firms pursuing similar avenues include Genomatica, Inc., Gevo, Inc. and Myriant Technologies LLC. SPOTLIGHT: Biofuels Corn and sugar cane are not the only sources for creating biofuels. Municipal/Agricultural Waste: Might be cheaply produced, but could be in limited supply compared to the billions of gallons of fuel needed in the market place. Wood: Easily harvested and in somewhat healthy supply; however, cellulose can be more difficult to extract from wood than from other biosources. Algae: The slimy green stuff does have the potential for high yields per acre, but the process for distilling its cellulose is complex, requiring a source of carbon dioxide to permeate the algae. Grasses/Wheat: Including switchgrass, miscanthus and wheat straw, the supply could be almost limitless. The challenge here is creating efficient methods for harvesting and infrastructure for delivering it to biorefineries. Vegetable Oils: Including soybean, canola, sunflower, rapeseed, palm or hemp. It is difficult to keep production costs of these oils low.

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SPOTLIGHT: Algae Draws Major Investment Algae’s potential as a source of biofuel got a big boost from an unlikely source in 2009. ExxonMobil announced plans to invest $300 million or more in San Diego, California-based Synthetic Genomics, a company headed by genome pioneer Craig Venter. Dr. Venter is studying ways in which an ideal species of algae can be developed for a unique culturing process. This process induces algae to release their oil (naturally stored as a foodstuff for the organisms), which can then be manipulated so that the oxygen molecules in the oil are disposed of, leaving a pure hydrocarbon suitable for use as biofuel. Another plus to Venter’s process is that carbon dioxide claimed from industrial plant exhaust is used in the culturing process and then released in the atmosphere. This does not make algae biofuel production carbon neutral, but it does utilize carbon dioxide twice before it’s released. Should the study go well, ExxonMobil has pledged an additional $300 million in funding to further develop the process to an industrial scale. An organism called blue-green algae (although technically it is a kind of bacteria and not an algae) can produce fuel using photosynthesis. Found in non-potable standing water and in barren fields, the bacterium secretes a class of hydrocarbon molecules called alkanes that are chemical doppelgangers for hydrocarbons. Joule Unlimited, Inc., a Cambridge, Massachusetts-based biotech company, holds a patent on the process that uses the bacterium to create ingredients for diesel fuel. The firm plans to build a commercial plant slated for completion in 2012. 8) Tidal Power

The enormous potential of harnessing the movement of the tides to provide electrical power is leading to the development of many tidal generating facilities. Much of recent development has been centered in Europe and the U.K. One of the largest projects is located in the La Rance estuary in France. Completed in 1966, the project generates 600 million kilowatt-hours per year. The Orkney Islands off the coast of Scotland rim the Scapa Flow, an underwater formation that is almost ideal for harvesting tidal power and the site of several installations. The Scottish Government hopes to generate 1,600 megawatts of tidal power by 2020, which would be equal to about 46% of the 2011 output from the country’s two coal-fired plants. The main benefit of tidal power, in comparison with other forms of renewable energy, is its predictability. The timing and force of tides can be

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predicted with great accuracy, and thus so can the power produced by a plant. The main drawback of this power source is its high initial equipment cost, which runs many times that of conventional power sources. In a traditional tidal energy plant, a dam is constructed that opens temporarily in order to capture tides as they flow inward. When the tidal flow has stopped, the dam closes. When the tide goes out, water behind the dam is released which powers a turbine in a manner similar to traditional hydroelectric power generation. These systems work best when there is a dramatic difference, at least 16 feet, between low tide and high tide. Promising news for tidal power is coming from a radical design—a tidal mill that looks a lot like a land-based windmill. The tidal mill consists of three 30-foot long blades and weighs 180 tons. This design can offer several benefits, including minimal interference with sea life. Hammerfest Stroem, the electric company in Hammerfest, Norway, has constructed a 20-tidal mill site with a capacity of 32 gigawatt-hours, at a cost of $100 million. In March 2011, ScottishPower Renewables received approval from the Scottish Government to develop a 10 megawatt tidal power array in The Sound of Islay using 10 HS1000 tidal turbines. Another tidal power development with potential is the Archimedes Wave Swing (AWS), a large, submersed telescopic cylinder filled with air. Inside is a “floater” that moves up and down as pressure surrounding the cylinder changes due to waves. That movement, which corresponds with the ebb and flow of the tide, is converted to electricity via a linear generator. Each AWS unit is about 39 feet in diameter and has an average output of 2.5 megawatts in a rough sea (producing about 5 gigawatts per year). The system has been tested in a pilot plant off the coast of Portugal. A company called AWS Ocean Energy Ltd. (www.awsocean.com) tested a small scale model of its ASW-III prototype on Loch Ness in Scotland in 2010, and hopes to deploy a full scale prototype in 2012, and have an operational commercial farm of AWS units the following year. The firm has received about $3.6 million in venture capital from Shell Technology Ventures and Scottish Enterprise’s Scottish Co-investment Fund. Another ocean-driven technology uses “wave energy converters,” which have been tested in waters near New Jersey, Hawaii, Scotland, England and Western Australia. The converters are semisubmerged cylinders of almost 400 feet in length and more than 11 feet in diameter. The cylinders are

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jointed and undulate in wave action like snakes. The energy of the wave action is resisted by hydraulic rams in the joints. The rams then pump highpressure fluid into chambers that feed the fluid to a motor. The motor, in turn, drives a generator that creates electricity. Power from all the joints is transported down an umbilical cable connecting the cylinder to a junction on the sea floor that consolidates the power and sends it to shore via another cable connection. The cylinders are designed to work in concert, connected by mooring lines, forming a wave “farm.” A working example of a wave energy converter is the Pelamis, built by Pelamis Wave Power (formerly Ocean Power Delivery, Ltd.), www.pelamiswave.com, an Edinburgh, Scotlandbased company focused on ocean wave power generation. In December 2009, the company announced a joint venture with Vattenfall, one of Europe’s largest utilities, to develop a wave power project off the Shetland Islands. The venture, called Aegir Wave Power, was building a wave farm of between 14 and 16 Pelamis machines with a combined output of 10-20 megawatts as of late 2011. A Pelamis installation began the first commercial generation off the coast of Portugal in September 2008. Called Agucadoura, the project includes three P1-A Pelamis machines. In partnership with renewable generator company E.ON UK (www.eonuk.com), Pelamis installed a five-megawatt wave power project off the coast of Cornwall called WestWave in late 2010. It consists of seven Pelamis converters connected to an existing offshore electrical “socket” called Wave Hub. Pelamis units communicate with operators onshore via fiber optic cables, backed up by wireless systems. This affords operators remote monitoring of power absorbed and generated as well as system status. Webcams are embedded within the machines for visual monitoring. Each unit is about 460 feet long and capable of generating as much as 750 kilowatts. For the near future, Irish firm OpenHydro plans to open the world’s largest tidal energy plant in 2012. Located off the French coast near Paimpol-Brehat in Brittany, the project will consist of four twomegawatt turbines, each weighing 850 tons, with enough capacity to power 4,000 French homes. Fuel Cell and Hydrogen Power Research Continues The fuel cell is nothing new, despite the excitement it is now generating. It has been around since 1839, when Welsh physics professor William 9)

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Grove created an operating model based on platinum and zinc components. Much later, the U.S. Apollo space program used fuel cells for certain power needs in the Apollo space vehicles that traveled from the Earth to the Moon. In basic terms, a fuel cell consists of quantities of hydrogen and oxygen separated by a catalyst. Inside the cell, a chemical reaction within the catalyst generates electricity. Byproducts of this reaction include heat and water. Several enhancements to basic fuel cell technology are under research and development at various firms worldwide. These include fuel cell membranes manufactured with advanced nanotechnologies and “solid oxide” technologies that could prove efficient enough to use on aircraft. Another option for fuel cell membranes are those made of hydrocarbon, which cost about one-half a much as membranes using fluorine compounds. Fuel cells require a steady supply of hydrogen. Therein lies the biggest problem in promoting the widespread use of fuel cells: how to create, transport and store the hydrogen. At present, no one has been able to put a viable plan in place that would create a network of hydrogen fueling stations substantial enough to meet the needs of everyday motorists in the U.S. or anywhere else. Many currently operating fuel cells burn hydrogen extracted from such sources as gasoline, natural gas or methanol. Each source has its advantages and disadvantages. Unfortunately, burning hydrocarbons such as oil, natural gas or coal to generate the energy necessary to create hydrogen results in unwanted emissions. Ideally, hydrogen would be created using renewable, non-polluting means, such as solar power or wind power. Also, nuclear or renewable sources could be used to generate electricity that would be used to extract hydrogen molecules from water. The potential market for fuel cells encompasses diverse uses in fixed applications (such as providing an electric generating plant for a home or a neighborhood), portable systems (such as portable generators for construction sites) or completely mobile uses (powering anything from small handheld devices to automobiles). The potential advantages of fuel cells as clean, efficient energy sources are enormous. The fuel cell itself is a proven technology—fuel cells are already in use, powering a U.S. Post Office in Alaska, for example. (This project, in Chugach, Alaska, is the result of a joint venture between the local electric association and the U.S. Postal Service to install a one-megawatt fuel cell facility.) Tiny fuel cells are also on the market for

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use in powering cellular phones and laptop computers. Shipments of fuel cell-equipped mobile devices could grow very rapidly if they can eliminate the need for frequent recharging of current batterypowered models. The “Medis 24/7 Power Pack” is a portable, disposable power source for small electronic devices such as cell phones and MP3 players. Manufactured by Medis Technologies, it is based on Direct Liquid Fuel cell technology, and may be of particular utility in military applications. Elsewhere, MTI MicroFuel Cells manufactures a power pack for portable electronics that is based on direct methanol fuel cell technology that it calls Mobion. Internet Research Tip: Micro Fuel Cells For more information on research involving fuel cells for small applications, visit: MTI MicroFuel Cells www.mtimicrofuelcells.com Tekion Solutions, Inc. www.tekion.com Electric Vehicles vs. Fuel Cells Nearly all of the major automobile makers had significant fuel cell research initiatives at one time. While the potential for fuel cell-powered vehicles seemed extremely promising, the automobile industry has made a profound and long-lasting shift toward plug-in electric hybrids and all-electric vehicles as the new technology base of choice. This is due to several reasons, including: 1) The tremendous success and wide consumer acceptance of Toyota’s Prius hybrid car. This success gave Toyota early dominance in the electric car field while other makers were still dreaming about fuel cells. An important feature of the Prius is its very affordable price—something that might never be accomplished in a fuel cell vehicle. 2) The technical hurdles of distributing, storing and transporting hydrogen as a fuel have proven extremely difficult to overcome. 3) The costs of building a fuel cell platform for automobiles remains vastly more expensive than building an electric or hybrid vehicle. 4) Consumers, bureaucrats, investors and legislators already understand and trust the safety and ease of use of electricity, whether fixed or portable. This cannot be said for hydrogen.

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Now, Nissan and other leading automobile firms have ambitious plans for electric-drive vehicles (as opposed to today’s hybrid electric cars which run on electricity only part of the time, relying on a gasoline engine the rest of the time). Given the financial constraints that automakers are working under today, these car manufacturers have downgraded or abandoned their focus on fuel cells. In particular, technical breakthroughs in advanced batteries for electric vehicles are occurring quickly. This will spur the electric car market while lessening the near-term interest in fuel cells. Source: Plunkett Research, Ltd. GM invested $1 billion in fuel cell vehicle research. The company leased 100 fuel cell-equipped Equinox crossover vehicles to customers as a test, starting in early 2008. The Equinox will go about 200 miles on a hydrogen fill up. Initially, the vehicles were provided to government officials, celebrities, journalists and business leaders in New York City, Washington D.C. and Los Angeles. GM has long had aggressive goals for commercializing and producing fuel cell vehicles. However, the financial and technical hurdles would be high, and GM assigned itself a daunting task. It may never happen, unless GM can see its way to real profits from fuel cells. Nonetheless, in January 2008, the firm unveiled a fuel cell concept car, the Cadillac Provoq, at the Consumer Electronics Show, which is held in Las Vegas each year. One of GM’s thoughts for eventual commercial development is a wide variety of car and truck bodies that would mount onto a single, radical “skateboard” chassis design, which integrates the engine directly into the chassis. The skateboard stores fuel cell stacks and hydrogen supplies as well as circuitry that manages the flow of electric power through the various systems necessary to stop, start and maneuver the vehicle. The chassis would include a docking port that links the body above to the electronic control systems. However, the firm’s deep financial problems of 2008-09 that led to bankruptcy and a government bailout, along with its intense focus on the Chevy Volt electric car (with a booster gasoline engine) have combined to move GM’s fuel cell project to the back burner, perhaps forever. GM is not the only manufacturer with significant investments in fuel cells. Honda is currently leasing test models of its FCX Clarity fuel cell-powered car to small numbers of customers in the U.S. and Japan. Toyota began making a small number of fuel cellpowered cars available on 30-month leases in July

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2006. In late 2007, a prototype Highlander hydrogen-hybrid fuel cell vehicle traveled 2,300 miles from Alaska to Vancouver, Canada, getting more than 300 miles per tank of hydrogen. In September 2010, Toyota stated that it hoped to have a fuel-cell vehicle on the market in limited quantities in 2015, but only in a few regions where hydrogen fueling stations would be available. The former DaimlerChrysler invested about $1 billion in its own fuel cell initiative. In 2008 Chrysler featured its ecoVoyager concept car at the Detroit Auto Show. Nonetheless, Chrysler’s bankruptcy of 2009 made risky ventures such as fuel cell research much less feasible. As of 2007, Ford had 30 fuel cell-powered Focus compact cars in customer trials, but decided in 2009 to divert hydrogen fuel cell research funds to focus on electric vehicles. British startup manufacturer developed a fuel cell-powered prototype in 2009 that is about the size of a golf cart. Though small, the vehicle is tough thanks to a body made of carbon composites. There is an electric motor for each of the car’s wheels, and ultracapacitors capture and store energy when the brakes are engaged. Riversimple’s car has a range of about 199 miles per tank and a top speed of about 50 mph. The company hopes to build hydrogen filling stations in British cities. Mercedes-Benz also has a hydrogen vehicle, the B-Class F-Cell. The B-Class F-Cell has a range of 249 miles and a top speed of 109 mph. As of early 2011, the vehicle was available to Americans only in Los Angeles, California, because southern California is currently the only region in the country with more than one hydrogen fueling station. There were five stations in early 2011, with another 13 planned for completion by the end of 2012. Meanwhile, BMW unveiled a hybrid of sorts in 2006 that allows drivers to use either hydrogen or gasoline at the flick of a switch. (The hydrogen is not used in a fuel cell. Instead, it is burned as a fuel in an internal-combustion engine that ordinarily would burn gasoline.) The car uses a V-12 engine that can be powered by either fuel. BMW put 100 of its Hydrogen 7 cars on loan to celebrities in California and Germany in 2007. In 2010, BMW was testing a hydrogen-electric drivetrain hybrid that might be used in next-generation Minis and frontwheel-drive BMWs, according to Britain’s Autocar web site. Since more hydrogen than gasoline is required to run an engine the same number of miles, the prototype has a hydrogen tank that utilizes space

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usually reserved for luggage or passengers. The use of hydrogen offers multiple technical challenges. After the initial enthusiasm over fuel cells, during which many governments planned to introduce large numbers of fuel cell power plants and vehicles, energy agencies have scaled back their goals. The difficulties surrounding the technology are proving much more stubborn than they initially appeared to be. For example, Japan, one of the largest proponents of fuel cell technology, initially wanted 50,000 fuel cell vehicles on the road by 2010, a goal that couldn’t be met. Unfortunately, fuel cells remain grossly expensive due to their limited production and the industry’s current low-technology base. Moreover, hydrogen is not readily available to drivers. GM’s head of strategic planning projected that 12,000 stations in the largest cities across the U.S. would put 70% of the population within two miles of a hydrogen filling station. The cost would be about $1 million per station. Numerous solutions have been proposed through the years. Honda promoted a Home Energy Station in Southern California that it hoped would convert natural gas into enough hydrogen to power fuel cells that could run a family’s vehicle, as well as supply electricity and hot water for the family home. Another problem is that many people still have concerns about the safety of hydrogen. Naturally gaseous at room temperature, storing hydrogen involves using pressurized tanks that can leak and, if punctured, could cause explosions. It is also difficult to store enough hydrogen in a vehicle to take it the 300+ miles that drivers are used to getting on a tank of gasoline. To do so, hydrogen must be compressed to 10,000 pounds per square inch and stored on board in bulky pressure tanks. One idea for storage is cooling the hydrogen to a liquid state and storing it in a cooled tank, but this requires constant refrigeration. A mid-term solution to the problem of creation and storage of hydrogen is to use existing fuels, such as methane, gasoline and diesel. These fuels could be broken down in the car, on-demand, to produce hydrogen, which would then power the fuel cell. Although this would relieve the hydrogen storage problems, it would not remove the need for fossil fuels and it would still produce emissions such as carbon dioxide, though in reduced quantities. The Bush administration launched a “Hydrogen Fuel Initiative” in 2003, and Congress provided over $1 billion for research. In May 2008, the EU’s government funded 470 million Euros for fuel cell

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and hydrogen research, and Germany has promised as much as 500 million Euros. In 2010, U.S. President Obama signed a Nationwide Hydrogen Highway Initiative into law that requires the Federal Transit Administration and the Department of Energy to build up to 200,000 hydrogen fueling stations not more than five miles apart in more regions of the country. Will this be enough to bring fuel cells to the mass market? Maybe not. It remains to be seen whether such stations will be constructed, despite the possibility of up to $2.1 million in subsidies for each new hydrogen filling station, and up to $300,000 for the addition of a hydrogen pump to an existing filling station. In addition, there are still massive challenges to solve in designing and marketing vehicles that can store and burn hydrogen fuel. A U.S. Department of Energy study determined that it would take public funding of $45 billion to get 10 million fuel cell cars on the road by 2025, assuming that mass production would create a dramatic reduction in the cost of manufacturing fuel cells, and that public funding would encourage the development of a network of fueling stations. Meanwhile, electric cars are clearly the next wave. 10) China Becomes a Leader in Wind and

Solar Equipment and Installed Capacity China, home to some of the world’s dirtiest air due to massive coal-fired power plants and a large base of heavy industries, rapidly became one of the world’s major producers of solar panels and wind turbines, which it is using both for export and for domestic installations. Industry analysts projected that China would produce more than one-half of the world’s solar panels in 2010. As of late 2010, the Chinese clean energy industry employed more than 1 million workers, filling demand in the U.S. and the EU where solar panel makers are facing tough times. American and European solar and wind equipment manufacturers have been hard hit by intense, lowprice competition from Chinese firms. Several bankruptcies have resulted. The Chinese government has been extremely supportive of solar and wind equipment firms, providing low-cost land for manufacturing facilities, low-cost loans and other aid. The situation had become so difficult for American solar firms by 2011 that a group of them demanded that the U.S. government investigate whether China was violating trade agreements. Nonetheless, an American firm, First Solar, Inc., a maker of thin-film photovoltaic modules, was the world’s low price leader as of late

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2011, thanks to advanced technologies and efficient manufacturing. The firm projected revenues of about $2.8 billion for 2011, growing to about $3.7 billion in 2012. The typical price of solar panels has plummeted from nearly $5.00 per watt in 2006 to slightly over $1.00 by the beginning of 2012. In wind turbines, Chinese manufacturers sell at prices 20% to 30% below equipment made in the U.S. and Europe. That price gap could continue to widen. Although China’s economy and infrastructure are maturing at a rapid rate, labor costs associated with renewable energy equipment are still relatively low, and Chinese universities are producing engineers at an astonishing rate. First year engineers employed in the green energy-intensive province of Hunan earn about $3,000 per year as of 2011. China’s Suntech Power has become the world’s largest manufacturer of crystalline-silicon solar panels. Founded in 2001, the company’s production capacity grew from 10 megawatts per year at first to more than 1,000 megawatts in 2010. It has offices in 13 countries. Suntech continues to work on lowering costs even as its researchers find ways to increase efficiency. Today’s cutting-edge solar panels convert approximately 18% of the energy in light into electricity compared to 13% when the company started production. 11) Electric Cars and Plug-in Hybrids

(PHEVs) Enter Market in Low Numbers For the near term, electric cars will range from 100% electric power vehicles that have relatively short ranges and are plugged-in at home overnight to recharge—to cars like the Chevrolet Volt which runs primarily on an electric motor only, but includes a small gasoline-powered generator engine that will recharge the batteries when needed and give an occasional boost to the drivetrain as well. The Volt is designed to go up to 40 miles without recharging, and has the capability to be recharged by plug-in at home. Early sales, especially in the U.S. have been slow. The Chevy Volt and the Nissan Leaf, for example, had sold 928 and 173 units respectively through the end of February 2011. Many challenges face 100% electric cars. GM hopes to boost Volt sales to about 50,000 units yearly in the near term, and Nissan hopes to boost production of the Leaf to 500,000 yearly. It remains to be seen whether consumer demand will rise to these levels. On an encouraging note, the Chevy Volt was named the North American Car of the Year at the influential Detroit Auto Show

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in 2011. Ford plans to offer an all-electric Focus in 2012 that will feature smartphone apps that tell the driver where the nearest charging station is. Nissan is taking a different tack with the debut of the Leaf, a fully electric vehicle released in December 2010. With a range of up to 100 miles, the five-seat Leaf sedan is powered by a 480-pound lithium-ion battery that can be recharged overnight on household current. The official retail price is about $32,780, less up to $7,500 federal tax credit in the U.S. The first vehicles are being assembled in Japan, but the firm is investing as much as $2 billion to retool its Smyrna, Tennessee plant to begin manufacturing Leafs and lithium-ion batteries. Nissan got the jump on GM by committing R&D funding to lithium-ion batteries as early as 1990. The company has a next generation battery in the pipeline that promises a range of up to 186 miles per charge. Nissan had developed much of its electric vehicle technology in partnership with Renault. In addition to adequate battery life, engineers working on electric vehicles are wrestling with the fact that conveniences such as air conditioning, heating and stereos drain a lot of electricity. Technical advances in these accessories may be necessary, since consumers will not buy such cars in volume without them. Battery maker Johnson Controls, Inc. is expanding its Power Solutions divisions with two new manufacturing plants. However, recent research performed by the company revealed that only 3% of American drivers are financially suited to all-electric vehicles (meaning they travel many miles per year by primarily making short trips). J.D. Power & Associates estimates that by 2020, hybrid vehicles will make up 5.5% of the U.S. car market and battery-powered electric vehicles 1.9%. Despite the $5 billion in U.S. federal subsidies for battery manufacturing plants and research and development plus the $7,500 tax credit per vehicle for the first 200,000 units per manufacturer, most drivers are finding electric cars too expensive, taking too long to recharge and coming up short when it comes to driving range per charge. The Nissan Leaf, for example (the battery alone is estimated to cost $15,600) requires a 240-volt charger that customers must install for $2,200. Each charge takes about eight hours for a range of about 100 miles, depending on weather conditions. A little history is in order: An all-electric car has long sounded logical to many people. GM launched the EV1, an all-electric vehicle, in 1996. Unfortunately, the car was a complete flop, and the

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$1-billion project was abandoned in 1999. In 2002, Ford announced that it would give up on the Think, an electric car model in which it had invested $123 million. These efforts were an attempt to satisfy government demands, not an attempt to fill early consumer needs. Today’s electric cars and hybrids are intended to be major product lines for automakers. Plug-in hybrids (PHEVs) are similar to standard hybrids, but they enable the owner the option of plugging-in at home overnight to recharge the battery. This will eliminate the need to run the car’s gasoline engine, using only battery power as long as the relatively short range isn’t exceeded. (Standard hybrids recharge only by running the gasolinepowered side of the car, and by drawing on the drag produced by using the brakes.) Toyota made 500 PHEV versions of its Prius available for testing by selected consumers during 2010 (150 of them in the U.S.). All-electric cars as well as advanced hybrids will make a steady push into global auto markets due to: 1) Potential technical breakthroughs in batteries, making them lighter, less expensive and longerlasting. Nanotechnology may be applied to solve battery challenges. 2) An electric car research, development and investment focus at major car manufacturers. 3) Toyota quickly proved global consumer acceptance (and technological superiority) by selling millions of hybrid vehicles worldwide after the 1997 debut of the Prius. Eventually, Toyota hopes to be selling 1 million hybrid vehicles each year. 4) Electricity is user-friendly and easy to understand. Electric utility companies are generally in favor of the electric car trend. Governments are largely enthusiastic and supportive (including financial support to manufacturers and incentives for consumers). 5) Innovative entrepreneurs are focusing on the electric vehicle. 6) In California, the largest auto market in the U.S., the California Air Resources Board (CARB) requires at least 7,500 vehicles with no tailpipe emissions be sold between 2012 and 2014. 7) Last, but not at all least, in the proper package and at an affordable price, consumers see electric cars as green (low- to no-emissions), highly desirable modes of transportation. Source: Plunkett Research, Ltd.

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Irvine, California startup Fisker claimed in 2010 to have orders for about 1,600 of its $87,900 Karma. By 2011, it was making deliveries to customers. Another high-end electric vehicle is the Tango T600, made by Commuter Cars Corporation. For $108,000, drivers can take the two-seater (one seat behind the other) from zero to 60 miles per hour in about four seconds, and reach a top speed of more than 130 mph (there is also a $150,000 model which uses more powerful lithium batteries). Mitsubishi offers a tiny plug-in vehicle, the MiEV, at a price of more than $40,000. The MiEV can travel up to 100 miles on a charge. Mitsubishi sold approximately 4,000 of the pricey cars in Japan during fiscal 2010. Chinese auto manufacturer BYD Co. hoped to begin test marketing and all-electric vehicle, the e6, in the U.S. in 2011. The company is also in negotiations to supply the city of Los Angeles with electric buses, a deal which could result in a manufacturing facility in California. However, the big news in electric cars is at Tesla. The $109,000 Tesla Roadster, which can go up to 125 miles per hour and run 244 miles per charge, can also accelerate from zero to 60 mph in about 4 seconds! Tesla, www.teslamotors.com, is a serious business startup, with substantial amounts of venture capital raised, and another $465 million in federal loans set in 2009. By early 2011, the firm had delivered 1,500 Tesla Roadsters. Another Tesla model, the Model S family sedan capable of carrying seven people, was unveiled in 2009, with commercial production hoped to start as early as 2012. The Model S is to have a base price of less than $60,000. Tesla has taken a simple route to solve the problem of batteries: the Tesla Roadster has 6,831 lithiumion, laptop computer batteries linked together in the trunk. In May 2010, the Toyota Motor Corporation purchased a $50 million stake in Tesla. As part of the deal, Tesla is taking over a large car manufacturing plant in Freemont, California that was formerly operated as a joint venture of Toyota and GM. The new funds and manufacturing facility affords Tesla significant expansion capability. Toyota and Tesla will jointly develop an electric version of Toyota’s compact RAV4 SUV. Toyota also plans to manufacture a compact electric car designed for short urban trips. On the lowest end of the electric-powered spectrum are small vehicles that began several years ago as glorified golf carts. Recent technological

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advances, such as the use of lightweight, long-lasting lithium-ion batteries (the type used in cellular phones and laptop computers) have helped the vehicles evolve into marketable alternatives for short-trip driving. The ZAP Xebra, a three-wheel, four-door vehicle with a sticker price of $11,700, can reach speeds of up to 40 mph and have a range of 40 miles per charge. ZAP stands for “zero air pollution.” Chrysler’s Global Electric Motorcars LLC subsidiary offers several models, including vehicles with options such as heated seats, steel bumpers and cup holders. Prices start at about $7,395, but buyers may be eligible for a tax credit. Ford is using $5.9 billion in U.S. Energy Department loans to develop 13 fuel efficient models, including the manufacture of 5,000 to 10,000 electric vehicles as early as 2011-2012. The funds will be used partly to retool manufacturing plants in Illinois, Kentucky, Michigan, Missouri and Ohio. GM is collaborating with utility companies in nearly 40 states to work out issues relating to power grids and the added demand that electric vehicles pose. Nissan has similar alliances to promote plug-in stations (it also designated a supplier of home charging stations using a 220-volt plug similar to those used for clothes dryers that promised to recharge batteries in less than eight hours). GM and other manufacturers are working on computer chips and software to imbed in electric vehicles that will communicate with utility systems regarding the best times to recharge for the best prices. Recharging on a summer afternoon, for example, would put a strain on grids already powering air conditioners while offpeak charging would not only be cheaper but more efficient since power plants typically have excess electrical capacity at night. Many observers believe that two kinds of chargers are necessary, one for home use and another for use in commercial parking spaces. This need opens the door for as much as $12 billion in infrastructure costs. A number of companies are hoping to cash in on PHEV charging needs, including Coulomb Technologies, a California firm which plans to install thousands of public chargers in U.S. cities (each station costs between $2,000 and $5,000). ECOtality, a manufacturer based in Arizona, won a $100 million U.S. federal grant to develop its chargers. The company, in collaboration with Nissan, hopes to install 11,000 chargers in five U.S. states by 2013. The U.S. government will likely be an early buyer of PHEVs for its fleets. However, the most successful market for electric cars may be Europe

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rather than the U.S. European drivers are generally accepting of small vehicles. More importantly, gasoline prices in Europe are extremely expensive, often $7 per gallon or more due to high taxes, providing much greater incentive for plug-in cars. Moreover, European drivers are generally accustomed to taking shorter trips than consumers who drive the wide open spaces of the U.S. and Canada. Meanwhile, governments in Japan and China are pushing electric vehicles in a big way. Japan offers a consumer subsidy of about $9,000 per vehicle and the Tokyo Electric Power Company (TEPCO) recently formed a consortium to develop a technology standard for rapid battery charging. In China, the government is planning to spend $17 billion on electric vehicle technology through 2020 with the goal of getting 5 million electric cars (global bank HSBC estimates that to be 35% of global electric vehicle market) on Chinese roads. Chinese manufacturer Chery Automobile Company completed a $500 million R&D center in the city of Wuhu that is largely dedicated to electric vehicles. FedEx Corp., Staples, Inc. and the Frito-Lay division of PepsiCo are purchasing 20-foot electric trucks built by American truck manufacturer Navistar International Corp. and British battery manufacturer Modec, and also trucks built by Smith Electric Vehicles. Each truck costs about $150,000 and has a range of between 60 and 100 miles per charge. Since typical delivery routes are fairly short and usually completed by nightfall, electric trucks seem ideal for the delivery market. Limited range poses few problems and the trucks can be recharged at night during off-peak hours. Staples estimates it will save about $6,500 per year in fuel costs per electric vehicle. Another plus in electric trucks is the braking system. The batteries in electric vehicles are recharged when braking, which has a side benefit of putting less wear and tear on breaks than heavy diesel engines. Brakes for electric trucks last four or five years compared to diesel trucks’ one to two. China-based BYD Company Limited entered the car manufacturing business in 2003 by acquiring a small, floundering firm that was owned by the Chinese government. Under BYD, its inexpensive F3 sedan became a popular in China. More importantly, BYD has begun selling a plug-in hybrid in China, the F3DM. At about $22,000, the F3DM can go about 63 miles in electric-only mode, and can recharge quickly from its backup gasoline engine or from a plug-in feature. Watch for a continuing stream of breakthroughs from this extremely

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innovative company. Thanks to its long term expertise in battery powered products, it could easily grow to be a significant force in electric cars, and its new E6 plug-in electric car may be a strong competitor. However, its auto sales in 2010 were far below projections. A subsidiary of America-based Berkshire Hathaway, led by famed investor Warren Buffett, purchased a 10% stake in BYD in 2008. Among the biggest problems facing consumer adoption of electric cars is the cost of the batteries, which can run thousands of dollars per vehicle, depending on the type of batteries and the place of manufacture. Factoring this into the initial purchase price of the car makes electric vehicles expensive. Thus, among the big ideas in electric cars is a radical concept spearheaded by Shai Agassi, formerly of enterprise software giant SAP. Agassi’s startup, called Better Place (www.betterplace.com), is promoting a business model where drivers would swap depleted batteries for charged batteries, or plug into convenient power stations, paying for their choice of plans: unlimited miles, a monthly maximum or pay as they go. Under one potential business model, electric cars would be purchased by consumers without the battery costs built-in. Instead, the batteries would be owned by Better Place and leased to the car owners. The company would provide swappable, charged batteries as a service at a cost-per-mile driven, or cost-per-battery swapped. The initial price of the car would then be comparable to that of a gasoline-powered vehicle, and the consumer would pay for the battery as used, rather than up-front. Making consumers comfortable that they can have charged batteries when needed is key to this plan. Better Place would provide convenient, closely-spaced charging stations in places like parking garages and shopping centers. A trial project was underway in Tokyo in 2010, and the firm hopes to develop a long-term relationship with China’s Chery Automobile Company. In January 2010, Better Place raised an additional $350 million in venture capital. In early 2011, BetterPlace began installing 10 recharging stations in Honolulu, Hawaii. Those charging stations will be useful for drivers who have time to wait for a charge between trips to and from work or the grocery store. But what about drivers whose batteries are nearly depleted, or who are on longer non-stop trips? This is where the swappable batteries and swapping stations come in. In early 2009, Better Place demonstrated the first such swapping station, in Tel Aviv, Israel. There, robotic arms can remove a car’s battery, clean it of

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road dirt and install a fully-charged battery. In about the same amount of time it takes to pump a small tank full of gasoline, the driver is back on the road. Such swapping stations are estimated to cost about $500,000 each. Better Place calls its grid the Electric Recharge Grid Operator (ERGO). Its job is to not only supply the electricity, it would also monitor the electricity needs of the cars on the road and their locations, supply directions to drivers for the nearest power supply (using special software and in-car GPS) and negotiate with the local electricity utility with regard to the power supply and bulk electricity pricing. Hopefully, much of the power will come from solar and wind generation. That may be particularly true in initial markets like Denmark. Better Place has negotiated with the Israeli government to alter its tax code to make electric vehicles attractive to consumers. The tax proposal calls for a 10% tax on zero-emission vehicles and a 72% tax on traditional vehicles that run on gasoline. Better Place hopes to have recharge points throughout Israel, and has similar plans for Denmark and Portugal. Meanwhile, Agassi signed an agreement with Carlos Ghosn, CEO of Nissan and Renault, to make the cars. The savings to drivers promise to be substantial. Better Place figures a driver getting 20 mpg in a traditional car and clocking 15,000 miles per year at $4 per gallon would spend about $3,000 for fuel. Better Place’s fuel costs for the same 15,000 miles are projected to be approximately $1,050. Internet Research Tip: Electric Cars For the latest on electric car manufacturers see: Better Place, www.betterplace.com Coda Automotive, www.codaautomotive.com Commuter Cars Corporation, www.commutercars.com Electric Drive Transportation Association, www.electricdrive.org Global Electric Motorcars, www.gemcar.com Tesla Motors, www.teslamotors.com Wrightspeed, www.wrightspeed.com ZAP, www.zapworld.com 12) Major Research in Advanced Lithium

Batteries There are many obstacles to all-electric vehicles. The biggest potential problems are battery capacity and battery cost. Lithium-ion batteries are becoming more powerful, safe and efficient thanks to technological breakthroughs like those of startup

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manufacturer A123Systems (www.a123systems.com). Lithium-ion batteries pose multiple technical challenges. In the past, the batteries have shown a tendency to overheat, catch fire or explode. However, A123Systems is building batteries made of nanoparticles of lithium iron phosphate modified with trace metals instead of cobalt oxide. The result is a more stable power source with twice as much energy as nickel-metal hydride batteries. A123Systems was selected in August 2009 for a $249 million grant from the U.S. Department of Energy to build advanced battery manufacturing plants in the U.S. This is in addition to $100 million in refundable tax credits awarded from the Michigan Economic Development Corporation earlier in the year. As of early 2011, A123 had opened a 291,000-square-foot facility in Livonia, Michigan, as part of its U.S. expansion. (The company also maintains manufacturing facilities in China and Korea.) The firm is engaged in developing energy storage technology for power grids and batteries for commercial applications in addition to those for use in electric vehicles. Nissan and GM are powering their PHEVs with lithium-ion batteries that are based on manganese rather than the cobalt oxide technology traditionally used in batteries for laptop computers. The manganese technology provides more stability and is a big leap ahead in battery manufacturing overall. Despite all of the battery technology investment in the U.S. and Europe, the early leaders in advanced batteries were in Asia, particularly Japan, Korea and China. This is logical when you consider the fact that Asian firms have long been world leaders in advanced batteries for mobile consumer electronics such as cellphones. Without their advances in smaller, longer-lasting batteries, today’s tiny mobile phones and iPods would not have been possible. U.S.-based companies actively trying to become leaders in advanced batteries for electric vehicles also include Quantum Technologies, Altair Nanotechnologies and ActaCell. However, one of A123’s top American competitors may be Ener1, www.ener1.com, which owns an advanced lithiumion electric vehicle battery unit called EnerDel. EnerDel has two cutting-edge manufacturing plants in Indiana. A joint venture comprised of U.S.-based Johnson Controls (a leader in automotive systems and a major manufacturer of traditional car batteries) and Francebased Saft (a leader in battery technology) plans to convert a former Johnson Controls automobile parts factory in Michigan into an advanced lithium-ion

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battery plant. The factory will make batteries for Ford’s planned plug-in hybrid as early as 2012. In the U.S. the 2009 American Recovery and Reinvestment Act provided $2.4 billion for investment in lithium-ion batteries. By late 2010, 17 new battery plants in Michigan were in production, under construction or in the planning stages according to the state Department of Energy, Labor and Economic Growth. Nissan is investing several billion dollars in the construction of manufacturing plants for advanced batteries and retooling existing assembly plants to result in the production of up to 500,000 vehicles per year on three continents. The lithium manganese battery technology was developed in a joint venture between Nissan and NEC. In Tennessee Nissan is spending $1.6 billion in loans backed by the U.S. Department of Energy on a lithium-ion battery plant and an electric vehicle assembly line. Nissan made a significant breakthrough in lithium-ion technology with the development of its laminated battery. Its shape and flexibility allow it to be used in a variety of models and they have two times the capacity and power of traditional batteries of the same weight (but at half the size). Nissan’s Leaf runs on a 24-kilowatt-hour laminated battery made of 192 lithium-manganese cells capable of generating enough current to power an AC motor to 107 horsepower. Over the long-term, watch for further advances in battery technology that may fuel vehicles for up to 400 miles per charge. That will make a tremendous difference in consumer interest. The expensive Tesla roadster already claims a relatively long range of more than 240 miles. IBM, along with automotive companies such as Toyota, is working on a radical new lithium battery that could be far lighter than current lithium batteries and have a range of as much as 500 miles. The Battery 500 Project is researching a “lithium-air” battery that, instead of shuttling ions back and forth between two metal electrodes, moves them between one metal electrode and air. The concept is similar to zinc-air batteries used to power hearing aids. The problem there is that zinc-air batteries are not rechargeable and limited to a very small size. If all goes well, IBM hopes to have a prototype of the battery in the laboratory by 2012 and a full-size demo battery by 2015. Spurring the project along is a bill introduced in the U.S. Senate in mid-2010 that offers a $10 million prize to the developer of a commercial electric car battery with a 500 mile range per charge.

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Yet another new battery concept on the horizon is a liquid battery developed by David Bradwell when he was a graduate student at MIT in 2007. The technology uses electrodes and an electrolyte that liquefy during operation, enabling the battery to handle high currents without fracturing. It is hoped that such a battery could be used to store enormous amounts of solar or wind power for use at night or when the wind is not blowing. Even better, Bradwell believes that the system could ultimately cost less than $100 per kilowatt-hour for a new installation. The plethora of companies investing in and developing new battery technologies is likely to cause a glut on the market as early as 2014 and on into 2015, according to analysts at PRTM Management Consulting, a unit of PricewaterhouseCoopers. PRTM forecasts the global electric vehicle industry will reach $300 billion by 2020, which includes a potential $50 billion for battery manufacturers. The estimated cost of a 24 kilowatt-hour lithiumion battery pack in late 2010 was $15,600. Other analysts are concerned that prices for lithium batteries will remain high over the mid-term. Although the U.S. Department of Energy set a goal of reducing car battery costs by 70% by 2014, many experts agree that the goal is too aggressive. This is due to the fact that costs for components and materials (such as nickel, manganese and cobalt) are likely to remain high in response to increased demand. Companies to Watch in Advanced Battery Technology: A123 Systems, Inc. ActaCell Altair Nanotechnologies Better Place BYD EnerDel division of Ener1 Johnson Controls-Saft joint venture NEC Nissan Panasonic Quantum Technologies Sharp Tesla Source: Plunkett Research, Ltd.

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a Slow Start Cars and trucks that run on either compressed natural gas (CNG) or liquid natural gas (LNG) are already in use around the world, especially in municipal fleets and school buses. Natural Gas Vehicles for America (www.ngvc.org) estimates that there are 13 million natural gas-powered vehicles worldwide as of 2011. The International Association of Natural Gas Vehicles projects that there will be more than 50 million natural gas vehicles worldwide by 2020. However, the U.S. count is only about 112,000 as of late 2011. A large percentage of all new public transit buses run on natural gas. This fuel is an attractive technology, not only because it is highly developed, but also because it is economically feasible and environmentally friendly. While initially costing as much as $8,000 more per vehicle than standard fuel equivalents, natural gas engines save 30% or more on fuel costs, making the investment potentially worthwhile over the long term. Emissions are significantly lower overall, and have much lower concentrations of polluting particles and harmful gases. Recognizing the possible economic benefits, UPS has put about 1,500 natural gas trucks in service to haul its packages, including test trucks running on compressed natural gas, liquefied natural gas or propane. Airport buses are often natural gaspowered. Some proponents, including financier T. Boone Pickens (who partly owns Clean Energy Fuels, a company that installs natural gas fueling stations), believe natural gas is a viable alternative for diesel fuel for semi-trailer trucks. Unlike switching to electric batteries or fuel cells, natural gas powered trucks that travel primarily on major highways would not need as many new fueling stations. One problem with the idea is that trucks that run on natural gas are more expensive than their diesel counterparts. United Parcel Service, Inc. (UPS) ordered 48 natural gas trucks in 2011 for $195,000 each (compared to the $95,000 it spends per diesel-powered tractors). It was able to do so thanks to $4 million in U.S. federal stimulus money. Pickens estimates that $5 billion should be spent over five years to put 140,000 natural gas trucks on U.S. highways and build the necessary fueling stations. Meanwhile, a natural gas-powered Honda Civic GX is on the U.S. market in selected locations. Its sticker price is a modest $25,190, and up to $7,000 in state and federal tax credits are available. The downside is that there are only about 1,100 CNG stations in the U.S., making refueling difficult; and

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the gas tank holds the equivalent of a mere eight gallons of gasoline. However, growing numbers of drivers are looking for economical as well as environmentally friendly alternatives such as the Civic GX. GM offered natural gas powered versions of its Chevrolet Express and GMC Savana full-size vans as of late 2010. 14) Homes and Commercial Buildings Go

Green In a growing trend, many homebuilders across the U.S. are constructing homes in accordance with the National Association of Home Builders’ (NAHB) “green” specifications. These specifications require resource-efficient design, construction and operation, focusing on environmentally friendly materials. Today’s much higher energy costs are spurring this trend. In addition, local building codes in many cities, such as Houston, are requiring that greater energy efficiency be incorporated in plans before a building permit can be issued. There are several advantages to building along eco-sensitive lines. Lower operating costs are incurred because buildings built with highly energyefficient components have superior insulation and require less heating and/or cooling. These practices include using oriented strand board instead of plywood; vinyl and fiber-cement sidings instead of wood products; and insulated foundations, windows and doors. Low-maintenance landscaping demands less water and weeding. Heating and cooling equipment with greater efficiency is being installed, as well as dishwashers, refrigerators and washing machines that use between 40% and 70% less energy than their 1970s counterparts. Wastewater heat recovery systems use hot wastewater to heat incoming water. Even toilets are more efficient than before. Current models use a mere 1.28 gallons of water per flush, as opposed to four gallons in the 70s. The main disadvantage is that this kind of building is often more expensive than traditional construction methods. Added building costs often reach 10% to 15% and more per home; however, some homebuyers are willing to pay the increased price for future savings on utilities and maintenance. As energy prices increased over the last decade, builders became more amenable to constructing homes with energy-savings measures. In addition, some consumers are inclined to spend more when they feel they are buying environmentally friendly products, including homes. (Marketing analysts refer to this segment as “LOHAS,” a term that stands for “Lifestyles of Health and Sustainability.” It refers to

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consumers who choose to purchase items that are natural, organic, less polluting and so forth. Such consumers may also prefer products powered by alternative energy, such as hybrid cars.) The U.S. government and all 50 states offer tax incentives in varying amounts to builders using solar technology. A handful of “zero-energy homes” that produce as much electricity as they use are being built (see www.zeroenergy.com.) By installing photovoltaic panels or other renewable sources to generate electricity, and using improved insulation and energy-efficient appliances and lighting, the zero-energy goal may be achieved, at least in sunny climates such as those in the American West and Southwest. In the commercial sector, businesses may have several reasons to build greener, more energyefficient buildings. To begin with, long-term operating costs will be lower, which will likely more than offset higher construction costs. Next, many companies see great public relations benefit in the ability to state that their new factory or headquarters building is environmentally friendly. Many office buildings, both public and private, are featuring alternative energy systems, ultra-high-efficiency heating and cooling, or high-efficiency lighting. In California, many public structures are incorporating solar power generation. Even building maintenance is getting involved— building owners are finding that they can save huge amounts of money by scheduling janitorial service during the day, instead of the usual after-hours, afterdark schedule. In this manner, there is no need to leave lighting, heating or cooling running late at night for the cleaning crews. An exemplary green office building is Bank of America Tower (formerly One Bryant Park), a 54story skyscraper on the Avenue of the Americas in New York City. Completed in 2009, the $1.2-billion project is constructed largely of recycled and recyclable materials. Rainwater and wastewater is collected and reused, and a lighting and dimming system reduces electrical light levels when daylight is available. The building supplies about 70% of its own energy needs with an on-site natural gas burning power plant. It was the first skyscraper to rate platinum certification by adhering to the Leadership in Energy and Environmental Design (LEED) standards, set by the U.S. Green Building Council in 2000 (see www.usgbc.org). The Pearl River Tower, a 71-story skyscraper set to open in 2011 in Guangzhou, China, may be the first major zero-energy building, or may at least come

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close. Designed by Chicago architecture firm SOM, the tower is planned to be 58% more energy efficient than traditional skyscrapers by using solar roof panels, novel wind turbines embedded in four openings spaced throughout the tower and walls with eight-inch air gaps that trap heat which then rises to power heat exchangers for use in cooling systems. The building encompasses about 2.3 million square feet of floor space. A growing number of buildings are being retrofitted to use energy more efficiently. One example is the initiative underway at Citigroup, Inc. The banking firm is turning off lobby escalators, incorporating more natural light and using recycled materials in dozens of its properties around the world. Citigroup says it can save as much as $1 per square foot per year by making its offices more efficient. Elsewhere, Google, Inc. installed a solar rooftop at its California headquarters as early as 2007, and retail chains such as Wal-Mart and Kohl’s are installing solar panels on their California stores. In Wal-Mart’s case, it had 31 solar installations in California and Hawaii by mid-2010, and had an additional 20 to 30 sites in California and Arizona planned. The Environmental Protection Agency (EPA) sponsored a contest in 2010, challenging commercial buildings to cut energy use over a 12-month period. The winner was the Morrison Residence Hall at the University of North Carolina-Chapel Hill. The hall cut its energy consumption by approximately 36% and saved more than $250,000 on its energy bills. Green initiatives during the year included expanding a solar-powered hot water system, upgrading lighting and convincing students to cut down on hot water use. Sports stadiums are also going green in a big way. Lincoln National Field, the home of the Philadelphia Eagles, announced in late 2010 plans to install 2,500 solar panels, 80 wind turbines (each measuring 20 feet high) and a natural gas and biodiesel-burning generator. The field is contracting with Florida-based Solar Blue, which will spend $30 million to install the equipment. In return, the Eagles will pay Solar Blue fixed amounts for energy with increases of 3% per year for a period of 20 years. Solar Blue is free to sell excess energy created in the stadium to the local utility. Staples Center in Los Angeles and New Meadowlands Stadium in New York also have significant green initiatives underway. LEED standards have been adopted by companies such as Ford, Pfizer, Nestlé and Toyota, which have all built LEED-certified structures in the

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U.S. In addition, the standards have been adopted by 25 states and 48 cities for government-funded projects, including New York, Los Angeles and Chicago. Industry analysts estimate the value of government-financed construction projects at $200 billion per year. One of the world’s largest green complexes is the campus of King Abdullah University of Science and Technology (KAUST) in Saudi Arabia. The campus spans more than 118 million square feet of classrooms, laboratories and a coral reef ecosystem, and features more than 13,500 square feet of solar thermal panels and upwards of 54,300 square feet of photovoltaic arrays. LEED is not without competition. Another green verification program called Green Globes is backed by the Green Building Initiative in the U.S. Green Building Initiative is a group led by a former timber company executive and funded by several timber and wood products firms. Several U.S. states have adopted Green Globes guidelines instead of those supported by LEED for government-subsidized building projects. In Canada, a version of Green Globes for existing buildings is overseen by the Building Owners and Managers Association of Canada (BOMA Canada) under the brand “BOMA Best.” Green Globes is more wood friendly than LEED, which is not surprising considering the involvement of the timber industry. It promotes the use of wood and wood products in construction with fewer restrictions than LEED, which approves of wood if it comes from timber grown under sustainable forestry practices approved by the Forest Stewardship Council, an international accrediting group. In a similar vein, the Environmental Protection Agency (EPA) established WaterSense, a voluntary public-private partnership program to promote waterefficient products and services; and EnergyStar, a program that promotes energy efficiency. WaterSense certifies low-flow toilets that use a mere 1.28 gallons per flush, creates standards for bathroom-sink faucets that flow at no more than 1.5 gallons per minute and offers a certification program for irrigation companies that use water-efficient practices. EnergyStar homes are at least 15% more efficient than homes built to the 2004 U.S. residential code. Retail giant Wal-Mart has been pursuing an aggressive policy to reduce energy use in its stores. The company is investing $500 million to reduce greenhouse gas emissions from its stores and distribution centers by 20% through 2012. The firm also pledged to increase the fuel efficiency of its

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trucking fleet by 25% by the year 2008, and up to 50% by 2015. Dow Chemical has invested $100 million (plus a $10 million grant from the Department of Energy) in researching new plastic photovoltaic roof panels using thin-film solar cells. Prototypes of the product, called Powerhouse, were tested in early 2010 with a goal of commercial release of the product sometime in 2011. Dow has not published pricing, but observers estimate that Powerhouse (or products like it) would cost a homeowner about $10,000 after subsidies and tax rebates for approximately 1,000 square feet of roofing material. This compares to about $5,000 for traditional asphalt shingles. Dow projects the value of the solar shingles market could reach $5 billion by 2015. Internet Research Tip: Green Buildings For a look at government-sponsored projects in green commercial buildings, see: 1) Rebuilding America, www.energyfuturecoalition.org/What-WereDoing/Energy-Efficiency/Rebuilding-America 2) U.S. Green Building Council, www.usgbc.org In Europe, the EU has mandated that member states revisit building codes every five years and create standards of energy efficiency. Buildings are also required to submit an energy certificate that can be shown to prospective buyers and renters. Elsewhere, nations such as Japan that are focused on becoming much more energy-efficient are emphasizing the use of green methods in new construction. 15) Proposals for U.S. Electricity Grid

Enhancements Include a “Smart Grid,” Regional Transmission Organizations (RTOs) and Technologies such as Flow Cell Batteries Proposed solutions to the U.S. electricity grid’s problems range from reorganization to massive investments in advanced computerization to barely proven technologies. Some engineers promote the use of immense, high-capacity batteries called “flow cell batteries” to store enough excess electricity to make the grid much more flexible and reliable. The use of large-scale storage systems scattered around the grid would mean that generating companies could create excess power during periods of slow demand, store that electricity and then sell it through the grid a

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few hours later when demand picks up. It would also mean that spikes in demand, such as the demand caused by air conditioners turned on during an extremely hot summer afternoon, could be served quickly by drawing on stored power. A few of these large battery energy storage systems are already in place in Japan, Australia, Alaska and Utah. Others are being tested in several locations worldwide. Battery systems such as these not only add reliability to an electricity grid system, they also lower costs and improve efficiency. For example, wholesale power can be purchased at night, when demand and energy prices are low, and then sold the next day during peak hours for a premium. New technology may eventually enable batteries to store the high current necessary for utility-scale storage. MIT has developed liquid metal batteries that use a liquid electrolyte made from metals and heated to 700 degrees Celsius (1,292 degrees Fahrenheit) to maintain a molten state. Meanwhile, start-up Seeo is making a solid state battery of a polymer electrolyte material that would last longer than other batteries and store more energy. SPOTLIGHT: Battery Energy Storage Systems For more information on battery energy storage systems, check the following company web sites: ABB www.abb.com Prudent Energy www.pdenergy.com Telepower Australia www.telepower.com.au A123 Systems www.a123systems.com Other super-capacity storage technologies include flywheels, pumped hydro storage and compressed air energy storage. (A lack of efficient, large-scale storage systems has also been one of the factors holding back the development of solar power.) For additional thoughts along these lines, visit the Electricity Storage Association at www.electricitystorage.org. Superconductive wires also hold promise over the long-term. (See “Superconductivity Comes of Age.”) Meanwhile, shorter-term solutions to the grid’s inadequacies are needed. Multiple changes could vastly increase the reliability and efficiency of the grid. Currently, the grid is something of a freefor-all. Thousands of utility companies utilize it, but there is little communication among those companies regarding their real-time operating status. At the same time, regulation of the grid desperately needs to be revamped. Companies that transmit via the grid and that might be interested in investing in grid infrastructure currently must deal with a quagmire of

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competing interests. The grid’s three interconnects are broken down into about 120 control areas, but operators of those control areas have very little authority beyond making requests (but not demands) of utilities participating within those areas. U.S. state and federal agencies are making efforts to increase the grid’s efficiency and enforce compliance to regulatory standards. After the massive blackout of August 2003, a joint U.S.Canadian taskforce was created that stipulated 46 recommendations for improvement to the monitoring of transmission lines and for use of the grid. Each recommendation has since been implemented. These recommendations included the establishment of Independent System Operators (ISOs), which are independent, nonprofit organizations. ISOs ensure that electric generating companies have equal access to the power grid. They may be replaced by larger Regional Transmission Organizations (RTOs), which would each cover a major area of the U.S. The North American Electric Reliability Corporation (NERC), www.nerc.com, is now responsible for enforcing mandatory reliability standards on utilities. NERC fines are levied when performance falls below those standards. The utilities industry is pushing its own vision of the grid’s future, via the respected Electric Power Research Institute (EPRI, www.epri.com), an organization of members representing more than 90% of the electricity generated and delivered in the U.S. EPRI envisions creating an environment in which utilities are encouraged to invest heavily in new transmission technologies. Part of its plan is aimed at developing constant communication among the systems pushing power to, and pulling power from, the grid. EPRI hopes the grid will become a selfrepairing, intelligent, digital electricity delivery system. As a result, a systems breakdown in one area might be compensated for by users or producers elsewhere, aborting potential blackout situations. The total investment required would be more than $100 billion. Another part of its technology platform is based on making the grid “smarter,” by using state of the art digital switches and sensors to monitor and manage the grid—a vast improvement over today’s equipment. This smart grid would incorporate sensors throughout the entire delivery system, employ instant communications and computing power and use solid-state power electronics to sense and, where needed, control power flows and resolve disturbances instantly. The upgraded system would have the ability to read and diagnose problems. It

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would be self-repairing, by automatically isolating affected areas and re-routing power to keep the rest of the system running. Another advantage of this smart grid is that it would be able to seamlessly integrate an array of locally installed, distributed power sources, such as fuel cells and solar power, with traditional central-station power generation. Internet Research Tip: For the latest in research regarding generation and distribution of power by electric utility companies, see the Palo Alto, California-based Electric Power Research Institute (EPRI) at my.epri.com. Also, the GridWise Alliance, www.gridwise.org, is a consortium of public and private utility and energy companies that supports a stronger electricity grid. Members include General Electric (GE), IBM, the Tennessee Valley Authority and Honeywell International. In 2009, a new transmission “interconnect” was proposed that would connect the Eastern, Western and Texas grids. Called the Tres Amigas superstation, the project will be located in Clovis, New Mexico, and will use superconducting cable to convert different kinds of current from each region into a common direct current for transmission. (Superconductivity is created by cooling transmission cable to as low as minus 418 degrees Fahrenheit, thus enabling the system to transmit electricity with almost none of the power loss associated with standard cables.) The current would be converted again to the necessary type to match the destination grid. The interconnect theory behind the project means that electricity can be seamlessly moved from one grid to the next as needed in a more efficient and cost-effective manner. Tres Amigas is spearheaded by Tres Amigas LLC, run by Phil Harris, the former CEO of PJM Interconnection LLC, a major grid-operations concern. American Superconductor Corporation will provide planning services as well as the superconducting cable. The Clovis location is less than 100 miles from substations in each of the existing grids, and would be especially useful in transmitting power generated from the massive wind power farms in West Texas. The greater connectivity afforded by the superstation could promote the development of new energy sources. Despite the $1 billion cost for the venture, Tres Amigas had moved ahead with construction planning and had been

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granted approval from the Federal Energy Regulatory Commission (FERC) to offer transmission services at negotiated rates, with operation to begin as early as 2014. An additional technology advantage to the Tres Amigas project is that it will run on DC (direct current) rather than traditional AC (alternative current), which is much more efficient and will result in less electricity being lost during transmission. Furthermore, Tres Amigas plans to utilize compressed air energy storage technology. This means that wind farms could produce power even when there is low demand, and that power could be stored for later use as needed. New smart utility meters are beginning to be installed at consumers’ locations in major U.S. markets that transmit usage data to utilities, display price fluctuations and alert utilities to service interruptions instantaneously. The meters save utilities the cost of employing meter readers and promote conservation since homeowners can plan activities such as washing clothes or charging plug-in devices at night when prices are lower. Homes with solar panels can use the smart meters to measure and sell excess power back to the utility. There’s even the ability, for homeowners willing to participate, for utilities to remotely adjust air conditioning and heating systems to cheaper settings when demand is high. Homeowners might adjust settings remotely as well. The use of smart meters can have dramatic benefits for electric utilities in two ways. First, such meters can promote conservation, thus delaying the need to invest in expensive new generating capacity. Second, the utilities can use a dynamic pricing method that enables them to charge considerably higher rates during times of peak demand. Internet Research Tip: Smart Meters For an excellent explanation of smart meters, how they work and how they save energy, see CenterPoint Energy’s Energy InSight web page: www.centerpointenergy.com/services/electricity/resi dential/smartmeters In October 2009, U.S. President Obama announced grants totaling $3.4 billion (part of the $862 billion economic stimulus package) to be provided to 100 companies including utilities, manufacturers, cities and other agencies in 49 states. The funds, which are being matched by grant money from private sources totaling an additional $4.7 billion, would be used to pay for approximately 18 million smart meters, 700 automated substations and

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200,000 smart transformers. Working together, are intended to result in higher efficiency, reliability and sustainability. (China has invested more in this sector, pumping $7.32 billion into grid projects in 2010 according to market research firm Zpyrme.) Since state regulators must okay new initiatives undertaken by utilities, a number of roadblocks have slowed the process, in some cases leaving utilities with precious little time to lock in funds promised by the government. For example, Baltimore Gas & Electric, a subsidiary of Constellation Energy Group, was rejected by the Maryland Public Service Commission when it proposed smart grid improvements in June 2010. The DOE responded by extending its deadline for state approval which was eventually granted. San Francisco, California and Dallas, Texas are two examples of metro areas where smart meters are being installed. In San Francisco, Pacific Gas & Electric (PG&E) plans to install as many as 10 million advanced electric and gas meters by 2012. In Dallas, Oncor Electric Delivery Co. plans to install 3 million meters. The San Francisco project is budgeted at about $2.3 billion. On a national basis, 27.3 million smart meters had been installed by mid2011, compared to 15.6 million a year earlier, according to FERC. Proponents of smart meters claim that their efficiencies will offset the high installation costs. PG&E estimated that about 70% of its initial investment will be recouped due to savings in maintenance crew costs. Widespread use of the meters creates a smarter network, as their powerful technology allows communication to flow from utilities to consumers and back again. The meters also have detractors. Power companies have received complaints from customers claiming that their bills are vastly higher due to the meters showing falsely high readings. In several states, class action lawsuits have been filed. In some cases, manufacturers are blaming a lack of consumer education with regard to reading and using the meters. In others, a fast rollout of the new meters caused problems when old billing systems incurred erroneous charges when interfacing with the new equipment. Technology firms are hoping to cash in on the federal funds-supported smart meter initiative. According to research firm IDC Energy Insights, North American utilities were projected to spend $17.5 billion on computer software, hardware and communications services related to intelligent grid technology between 2010 and 2013. Companies

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including ABB, Cisco Systems, Ambient Corp., IBM and Microsoft are all promoting new products that support smart grid needs. ABB, for example, specializes in high-voltage direct current links (HVDC) that are ideally suited for transmitting power over long distances. Likewise, appliance manufacturers such as General Electric, Whirlpool and LG are developing new, smart products that turn themselves off when electricity demand is high (and most expensive) and back on when demand falls. SPOTLIGHT: Ray Bell’s Smart Meter Silicon Valley entrepreneur Ray Bell has a serious entry in the smart meter market with his advanced technology concept. In addition to measuring power usage, the Bell meter acts as an Internet router, monitoring energy usage remotely and noting problems instantaneously. Better yet, the meters communicate via WiMAX for extra-long range wireless transmission. Bell signed a deal with General Electric to license his wireless interface and network software, which GE uses in manufacturing the meters and marketing them to utilities. Intel Capital (the capital arm of Intel, which is a manufacturer of WiMAX chip sets) is another investor in Bell’s startup company, Grid Net, www.grid-net.com. The global market opportunity is vast. New smart units cost between $125 and $300 each. Bell and GE face competition from Washington state-based Itron, among others, but Grid Net’s GE and Intel-backed credentials place it in the forefront of the smart meter market. 16) The Industry Takes a New Look at

Nuclear Power The first man-made nuclear fission was achieved in 1938, unlocking atomic power both for destructive and creative purposes. In 1951, usable electricity was created via a nuclear reactor for the first time, thanks largely to research conducted at the Manhattan Project that developed the first atomic weapons during World War II. By the 1970s, nuclear power was in widespread use, in the U.S. and abroad, as a source of electricity. As of 2010, nuclear power provided about 19.59% of the electricity generated in the U.S., created by 104 licensed nuclear reactors, according to the Nuclear Energy Institute. The U.S. Department of Energy predicted that 1,000 nuclear plants will be running worldwide by 2050, up from 439 in 2008. This prediction may be in jeopardy due to the postearthquake disaster at the Fukushima nuclear power plant in Japan in 2011. Even before the Japanese

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crisis, by late 2010, as many as seven proposed American reactor projects had been deferred due to funding problems. Obtaining financing for these extremely expensive projects is a main issue. Exelon suspended plans to build a twin reactor in Texas, while Constellation Energy abandoned a new project in Maryland after the federal government refused to reduce an $880 million fee that it proposed to charge in return for guaranteeing a $7.6 billion loan necessary to build the plant. The potential for accidents, meltdowns and other disasters has never been far from the minds of many consumers (after all, for many of us the first image that comes to mind upon hearing the word “nuclear” is a nuclear bomb). The 1979 Three Mile Island nuclear power plant accident in the U.S. led to the cancellation of scores of nuclear projects across the nation. This trend was later reinforced by the disaster at Chernobyl in what was then the Soviet Union. Regulatory agencies took an even harder line on U.S. nuclear power plants, and plants in countries around the world after a meltdown at the Fukushima plant in March 2011, the worst disaster since Chernobyl. As of late 2011 in the U.S., one new reactor was under construction, the Watts Bar 2 in Tennessee; and four were in the planning stages (Vogtle in Georgia, V.C. Summer in South Carolina, Levy County in Alabama and Bellefonte 1 in Alabama). Engineering giant Bechtel was selected to complete Unit 2 at Watts Bar, which had been sitting in an incomplete state for years. The project will cost $2.5 billion and be online as early as 2012, with generating capacity to serve 650,000 homes. However, nuclear power plants in many other parts of the world are in jeopardy as popular opinion turned against the technology in the wake of Fukushima, despite the fact that nuclear power can dramatically reduce a nation’s carbon emissions. German Chancellor Angela Merkel announced plans to shut down all 17 of its nuclear reactors by 2022. In 2010, these nuclear plants generated 23% of Germany’s electricity. The government hopes to have renewable sources make up the difference, as it had already made plans to increase renewable energy’s role from 13% in 2010 to 35% by 2020. In ensuing years, German power costs will likely rise significantly as it scrambles to build new sources to take up the slack in power demand. Switzerland also announced plans to abandon new nuclear projects and phase out existing reactors as they reach the end of their usability. Italy, also, announced a one-year freeze in March 2011 on plans to re-launch nuclear projects.

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The nation of France was an early adopter of nuclear power. The French approved a single, very cost-effective nuclear plant design and built it over and over again around the nation. France currently gets nearly 80% of its electricity from nuclear sources. The decisions by several countries to abandon new plants will be a significant blow to French companies such as AREVA SA and Electricite de France SA which build reactors and provide expertise in the technology on a global basis. SPOTLIGHT: AREVA Group 2010 Sales: $13.2 billion 2010 Profits: $1.28 billion Employees: 47,851 Headquarters: Paris, France AREVA Group was created through the merger of AREVA T&D, COGEMA and FRAMATOME ANP, which combined the French Government’s interests in several nuclear power and information technology businesses. The CEA (Commissariat a l’Energie Atomique), the French atomic energy commission, owns 79% of the company. The firm has manufacturing facilities in over 43 countries and a sales network in over 100 countries. AREVA operates in five divisions: mining; front-end; reactors and services; back-end; and renewable energy. The mining division handles the uranium ore exploration, mining and processing operations of the company, with mines located in Canada, Kazakhstan and Niger. Through the front-end division, and wholly-owned subsidiary AREVA NC, the company manages concentration, conversion and enrichment of uranium ore, as well as nuclear fuel design and fabrication. The reactors and services division offers design and construction services for nuclear reactors and other non-carbon dioxide emitting power generation systems. Through AREVA NP, 34%-owned by Siemens, the firm designs and constructs nuclear power plants and research reactors and offers instrumentation and control, modernization and maintenance services, components manufacture and the supply of nuclear fuel. The back-end division provides treatment and recycling of used fuel, as well as cleanup of nuclear facilities. The renewable energy division invests in and develops sites for wind energy, bioenergy, solar power and hydrogen power, as well as energy storage. In June 2011, AREVA announced that it created a joint venture company called Beijing-RIC with the China Nuclear Power Engineering Company.

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Estimates of final costs for a new, 1,000megawatt unit in the United States range from $6 to $12 billion, depending on whom you ask. However, the history of nuclear reactor construction is littered with cost overruns, delays and complications. What is needed for renewed development is a focus on standardized, advanced technology designs that can be built over and over again. This would hopefully streamline the regulatory process, reduce financial risks and encourage investment. New construction is unlikely anywhere in the world without substantial government guarantees and assistance. The fact that nuclear power can dramatically reduce a nation’s carbon emissions is a big plus. The manufacture of advanced-technology reactors on a large scale in America could do a great deal to boost the nation’s beleaguered manufacturing sector. AREVA has a joint venture with Northrop Grumman in which they may jointly manufacture reactor equipment at Northrop’s Newport News, Virginia shipyard. The venture, called AREVA Newport News LLC was building a 300,000 square foot engineering and manufacturing facility at a cost of about $360 million that would employ 400 workers. Unfortunately, the project was put on hold in May 2011 due to slow-moving government approval and loan processes and the Fukushima disaster. In a bill signed by former President Bush in August 2005, the U.S. government offers several incentives for the construction of reactors, including $18.5 billion in new federal financing assistance to be granted by the Department of Energy for nuclear site construction. In 2010, President Obama requested an additional $36 billion in federal loans for new plant construction as part of the 2011 budget. Although nuclear power plants are far more costly to construct than plants producing energy from fossil fuels, they may have lower operating costs. At one time, the Electric Power Research Institute (EPRI) projected that new reactors will be capable of producing electricity at about $49 per megawatt-hour, compared to $55 per megawatt-hour for gasified coal and $65 per megawatt-hour for energy made from pulverized coal at plants that sequester carbon dioxide. However, fluctuating prices of oil, natural gas, coal and uranium make long term operating costs hard to predict. Nuclear Waste and Uranium Reprocessing: The controversial Yucca Mountain nuclear waste repository project in Nevada was intended to create a permanent location for America’s nuclear waste. It was designed to store waste 1,000 feet underground

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above another 1,000 feet of solid rock. Supporters maintain that one central depository is far safer than the current method of storing waste underwater near each reactor site. Waste would be transported to a central repository by truck and rail, and it would be sealed in armored casks designed to withstand puncturing and exposure to fire or water. However, the Obama Administration vowed to end development of the site, which has sucked up $13 billion in federal funds to date, and little further construction is expected for the near term. The 2011 federal budget called for the elimination of funding for the project. TECHNOLOGY SPOTLIGHT: TerraPower A unique, private technology research firm based in Bellevue, Washington, Intellectual Ventures www.intellectualventures.com, has proposed a revolutionary nuclear reactor concept it calls TerraPower. This technology would use a new class of reactor called TWR or traveling-wave reactor that would solve the current nuclear waste problem. TWRs would use today’s stockpiles of depleted uranium from power plants as its primary fuel source. The TWR would essentially be a reactor-reprocessor. Traditional reactors rely on uranium-235, and their operation leaves a more common uranium-238 as waste. Every year or two, traditional reactors must be opened and refueled, and the “spent” uranium-238 waste is stockpiled. Millions of pounds of it are now in storage. A TWR could be fed that uranium-238, which it would convert into a desirable fuel, plutonium-239. Similar conversion of U-238 has already been proven, but present technologies for reprocessing into plutonium are expensive and complicated. TWR could represent a significant step forward while reducing the potential of diverting plutonium to use in atomic weapons. Another underground disposal project is in Finland at the Olkiluoto Nuclear Power Plant. The proposed site will store spent fuel rods in iron canisters sealed in copper shells to resist corrosion. The canisters will be placed in holes surrounded by clay far below ground. The project is slated for completion in 2020. The alternative to the storage of nuclear waste is reprocessing, in which spent fuel is dissolved in nitric acid. The resulting substance is then separated into uranium, plutonium and unusable waste. The positive side of reprocessing is the recycling of uranium for further nuclear power generation. Surplus plutonium can be mixed with uranium to

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fabricate MOX (mixed oxide fuel) for use in a commercial nuclear power plant. MOX fuel contains 5% plutonium. Commercial MOX-fueled light water reactors are used in France, the United Kingdom, Germany, Switzerland and Belgium. In the U.S., MOX fuel was fabricated and used in several commercial reactors in the 1970s as part of a development program. The negative side of reprocessing is that the resulting plutonium may be used for nuclear weapons. Additionally, environmentalists are extremely concerned about the potentially high levels of radioactivity produced during reprocessing, as well as the transportation of reprocessed waste. Safer New Nuclear Power Technologies: New technologies may eventually enable construction of nuclear generating plants that are less expensive to build and much safer to operate than those of previous generations. PBMR, Ltd. (www.pbmr.co.za), is a pioneer in “pebble-bed modular reactor” (PBMR) technology. It is based in South Africa, where at one point the firm hoped to build a working reactor. However, funding was never definite and the company is attempting to regroup. Earlier, scientists in Germany operated a 15-megawatt prototype PBMR from 1967 to 1988. Pebble-bed technology utilizes tiny silicon carbide-coated uranium oxide granules sealed in “pebbles” about the size of oranges, made of graphite. Helium is used as the coolant and energy transfer medium. This containment of the radioactive material in small quantities has the potential to achieve an unprecedented level of safety. However, multiple challenges remain, partly stemming from the fact that PBMRs operate at very high temperatures. For several years, various efforts around the world have attempted to create viable high-temperature, gas-cooled reactors similar to this. In 2008, PBMR, Ltd. said that it created its first enriched uranium-coated particles, 14,000 of which are contained in one of its “pebbles.” In September 2009, the firm announced that it had manufactured its first complete pebbles, each containing 9.6% enriched uranium. Sixteen pebbles were shipped to Russia for two years of irradiation tests to demonstrate the fuel’s integrity under reactor conditions. Successful tests would mean that the fuel is ready to be used in a demonstration reactor. PBMR Ltd. had a setback in 2010 when Westinghouse withdrew from a consortium formed to build a pebble bed reactor in South Africa. The withdrawal, coupled with significant cost overruns and delays, caused the cancellation of the South

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African project and most of PBMR Ltd’s hopes for success. As of 2011, the company was down to nine employees. The world’s most promising pebble bed project is being carried out at the Tsinghua Institute of Nuclear and New Energy Technology in China. China actually has a working model that was completed, tested and brought on line in 2000-04. Even though this test prototype generates a relatively minute 10 megawatts, it is theoretically only a matter of scaling up the design to create a commercially viable project. The best part of the Chinese design is modularity. Future, full-size sites will consist of small 100megawatt reactors that can be grouped and chained into a single plant, making a more distributed energy model possible, where capacity can be upscaled as needed. The Chinese appear to be solving the high temperature problem by operating the reactors at a relatively low 750 degrees Celsius. Cooling is being considered using steam cycle technology as an alternative to helium. Two pebble bed plants are planned in China. The test site, in Shidao, could eventually house up to 18 reactors. It remains to be seen whether the Chinese can create a commerciallyviable reactor in this manner, but this is a serious effort that looks promising. Success could have a great impact on global nuclear development. Other nuclear technologies will be used elsewhere in China. In December 2006, Westinghouse, a major maker of nuclear power plants (and owned by Toshiba in Japan), announced a multi-billion dollar deal to sell four new nuclear plants, its AP1000 model, to China. The deal includes work to be performed by U.S. engineering giant Shaw Group, Inc. AREVA Group also has a deal with China for two reactors and approximately 20 years worth of atomic fuel. Westinghouse, like competitor GE, is focusing on an advanced, water-cooled reactor technology. The world’s first AP1000 plant began construction in March 2009 at Sanmen, in the Shejiang province of China. China may have as many as 100 reactors by 2030, up from 11 in 2009, a nine-fold increase. The AP1000 is considered a generation 3+ reactor technology. Advanced generation reactors feature higher operating efficiency, greater safety and design that uses fewer pumps and other moving parts in order to simplify construction and operation, and make emergency responses more dependable. “Passive” safety systems are built-in that require no outside support, such as external electric power and human action, to kick in. For example, the AP1000 features systems for passive core cooling, passive

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leak containment cooling and leak containment isolation. Passive systems rely on the use of gravity, natural circulation and/or compressed gas in order to react to emergencies. In the U.S. a consortium called NuStart Energy was founded in 2004 by energy companies including Duke Energy, Entergy Nuclear, Exelon, FLP Group, Progress Energy, SCANA, Southern Company and the Tennessee Valley Authority (TVA), as well as reactor builders Westinghouse and General Electric. The consortium’s mission is to demonstrate the feasibility of obtaining Construction and Operating Licenses (COLs) from the NRC so that utility firms will be encouraged to move ahead with new projects. NuStart (www.nustartenergy.com) is also committed to promoting the use of advanced technology and engineering design for new reactors in the U.S. The long term future of nuclear plant design may be exemplified by the work of Babcock & Wilcox. This company was founded decades ago as a manufacturer of boilers and it has a lengthy history of making components, such as pressure vessels, for the energy industry. It has adapted its technology base in order to design an innovative nuclear generation concept, the mPower modular reactor. It is a low cost, high efficiency design of compact size. The engineers leading the project were focused on one concept: to create a reactor pressure vessel, the core of the unit, that can be built at a factory and be small enough to fit on a railroad car for delivery to the final site. This overcomes the massive, custom engineering and construction challenges that typically drive the cost of a site-built nuclear plant to more than $6 billion, and the time required for completion to several years. One modular unit from Babcock & Wilcox could be installed in relatively short order, and could power a single large industrial complex or a few thousand homes. Several of these small, lowcost units could be combined at one site to create power stations of enough overall capacity to power a small city. The air-cooled design is described as passively safe. The firm already has a lengthy history in the nuclear field, as it builds reactors for the U.S. Navy. Several other firms are pursuing the mini-reactor business, including Westinghouse and NuScale Power. Santa Fe, New Mexico-based Hyperion Power Generation hopes to be able to sell a small reactor, suitable to power about 20,000 American homes, for only $50 million. Hyperion is utilizing technology that originated more than 50 years ago at the nearby Los Alamos Labs. Competitor Toshiba hopes to install a test unit of its “4S” (super safe,

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small and simple) mini-reactor in a remote village in Alaska in the near future. Yet another alternative to traditional nuclear reactors is thorium liquid fuel reactors, which are fueled by molten fluoride salt containing thorium. Thorium is far more abundant than uranium and it creates uranium 223 continuously, resulting in approximately 90 times as much energy from the same quantity of uranium. In addition, it generates less waste, which itself has a much shorter half-life than uranium. India has significant reserves of thorium (about 319,999 tons or 13% of the world’s total), and has been working on the technology since the 1950s. Since then, about one ton of thorium oxide fuel has been irradiated experimentally in pressurized heavy water reactors and has been reprocessed, according to the Bhabha Atomic Research Centre (BARC). A reprocessing center for thorium fuels is being built at Kalpakkam. In November 2011, India announced plans to build a prototype thorium-fuelled advanced heavy water reactor that will generate 300 megawatts of electricity. SPOTLIGHT: Fusion Power As opposed to nuclear fission, nuclear fusion is the reaction when two light atomic nuclei fuse together, forming a heavier nucleus. That nucleus releases energy. So far, fusion power generators burn more energy than they create. However, that may change with the construction of the International Thermonuclear Experimental Reactor (ITER) in Southern France. To be completed in 2016 at a cost of about $11.7 billion, the reactor is a pilot project to show the world the feasibility of full-scale fusion power. The Middle East, where industrial and residential need for electricity is set to soar, is a ripe area for nuclear power plant development. Saudi Arabia plans to build 16 new nuclear plants by 2030, at a cost of more than $100 billion. Nearby in the UAE, the government has awarded a South Korean consortium with a contract for the construction of four new nuclear plants at a cost of $20.4 billion.

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SPOTLIGHT: Hyperion Power Generation Santa Fe, New Mexico startup Hyperion Power Generation (HPG, www.hyperionpowergeneration.com ) is working on utilizing technology from nearby Los Alamos National Laboratory for a nuclear battery. The unit, which is a little less than five feet wide, can produce more than 25 megawatts for five years, or enough to power about 25,000 homes. The battery runs on uranium hydride which, in addition to providing fuel, regulates power output so the possibility of a meltdown is almost nil. There are no moving parts, and the unit can be buried underground for additional safety. The company claims that the cost of each unit will be far less than the price for building and operating a natural gas plant with the same capacity. HPG has backing from venture capital firm Altira. In late 2010, Hyperion announced an agreement with Savannah River National Laboratory that could lead to the construction of a small modular nuclear reactor at the U.S. Department of Energy’s Savannah River Site in South Carolina. 17) Nanotechnology Sees Applications in

Fuel Cells and Solar Power/Micro Fuel Cells to Power Mobile Devices Potential methods of generating energy with nanotechnology are nearly boundless, and some applications are creating synergies between plastics and nanotech. However, the most immediately promising possibilities are for solar power and fuel cell power. Michael Graetzel, a Swiss scientist, invented a new kind of solar cell that uses dye molecules and titanium dioxide. This enables manufacturers to place highly efficient and versatile solar cells in flexible plastic sheets, rather than the traditional glass and silicon cells. Konarka Technologies, Inc., with U.S. offices in Lowell, Massachusetts (www.konarka.com), has a portfolio of more than 350 global patents and patent applications for its technology. Its solar cells, based on Graetzel’s work, are literally printed out on long sheets of plastic that can be cut into virtually any shape or size, making them ideal for a variety of applications, including large architectural installations and in the field with portable electronics or in places where there are no power lines. Another player in the solar power arena is Nanosolar, Inc. www.nanosolar.com, a Palo Alto, California-based company. The firm has an advanced technology that prints nanodots onto thin-film solar cells. In late 2010, Nanosolar completed a 1.1

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megawatt solar power plant in Luckenwalde, Germany with Beck Energy. A new development in nanosolar technology is multi-junction solar cells, which were exhibited by researchers from the Imperial College, London at the Royal Society Summer Science Exhibition in 2009 in the U.K. These cells layer on top of each other, with each layer capturing energy from a particular color in the spectrum of sunlight. Converting energy from the entire spectrum may result in the ability to turn as much as 50% of the energy in sunlight into electricity compared to the 20% or so that is gleaned using conventional solar cells. As of late 2010, efficiencies of 42.3% efficiency in laboratory testing had been achieved by Spire Semiconductor. Another way that nanotechnology may impact solar cells is the use of quantum dots instead of silicon. Quantum dots, which are nanoscale semiconductor crystals, could significantly lower the cost of photovoltaic cells. In 2006, Victor Klimov of Los Alamos National Laboratory in New Mexico demonstrated that quantum dots have the capability to react to light and store energy more efficiently than silicon. Although scientists are years away from actually manufacturing usable quantum dot solar cells on a commercial scale, the technology has been established. Meanwhile carbon nanohorns, a variation of carbon nanotubes, are being used in fuel cells to make them lighter, cheaper and more efficient. SFC Energy AG (www.sfc.com), formerly Smart Fuel Cell AG, based in Germany; NEC, the giant Japanese electronics firm; and several other companies are creating such fuel cells for use in mobile phones and laptops, as well as traffic signals, remote sensors and metering systems. As these fuel cells become more compact, powerful and longer lasting, many other applications will become available for both mobile and set devices. Toshiba released the first commercial fuel cell for mobile equipment, the Dynario. A direct-methanol fuel cell (DMFC), the Dynario, uses a combination of methanol and ambient oxygen to create electricity. On one methanol cartridge (which takes about 20 seconds to load into the unit), the Dynario can charge two mobile phones or devices such as MP3 players. The product was available in limited release (only 3,000 units) in Japan, and retailed for about $325. As of late 2010, scientists at MIT were working on a lithium-ion battery with a positive electrode made of carbon nanotubes. The technology has the potential to deliver 10 times as much power as conventional batteries and store five times as much

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energy as a conventional ultracapacitor. The MIT researchers are working on improved techniques to speed the process of creating the nanotubes. 18) Polymers Enable New Display

Technologies with PLEDs/May Hold Key to High Efficiency Polymer Solar Cells (PV) State of the art LEDs (light emitting diodes) have the potential to greatly reduce energy usage while providing very high quality lighting and displays. In addition, solar power is now being combined with the latest LEDs to create fully-renewable energy light sources. The LED was first developed in 1962 at the University of Illinois at Urbana-Champaign. LEDs are important to a wide variety of industries, from wireless telephone handsets to signage to displays for medical equipment, because they provide a very high quality of light with very low power requirements. They also have an extremely long useful life and produce little heat output. All of these characteristics are great improvements over a conventional incandescent bulb or the LCD (liquid crystal display). On a groundbreaking day in 1989 at Cambridge University, researchers discovered that organic LEDs (OLEDs) could be manufactured using polymers. The plastic substance known as PPV (polyphenylenevinylene) emits light when layered between electrodes. The resulting product is referred to as a PLED (polymer light emitting diode). Soon, many industries realized the advantages of PLEDs as display devices that emit their own light. In contrast, the older LCD (liquid crystal display) technology works on a system whereby a separate light source has to be filtered in several stages to create the desired image. PLED is more direct, more efficient and much higher quality. PLED is also an excellent system for the manufacture of extremely thin displays that can work at very low voltage. The useful life of a PLED can be 40,000 hours. Advanced displays utilizing PLED can be viewed at angles approaching 180 degrees, and they can produce quality images in flat panels, even at very low temperatures. Cambridge Display Technology (CDT, www.cdtltd.co.uk), a subsidiary of Sumitomo Chemical Group, points out several exciting uses for these polymer LEDs that may develop over the midterm. For example, the low energy requirements of PLEDs could be used to create packaging for consumer or business goods that have a display incorporated into the front of the package. This display could provide a changing, entertaining and

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highly informative description of the product to be found within the package. Since PLEDs can be incorporated into flexible substrates, displays for advertising or information purposes can be built in the shape of curves. The possibilities are nearly endless. Most likely, new uses will develop as larger and larger numbers of PLEDs are manufactured and higher volume leads to lower prices. For example, Canadian technology firm Carmanah Technologies Corp. (www.carmanah.com) combined LEDs with solar panels for use in marine buoys. It has expanded further into lighting products for airfields, railways and general outdoor lighting, providing lights that are easy to install as well as powered entirely by renewable solar energy. 19) Clean Coal and Coal Gasification

Technologies Advance/Carbon Capture (CCS) Proves Costly In 2010, global production of coal was 3.73 billion tons of oil equivalent, up from 3.41 billion tons in 2009, according to BP plc. While coal is an abundant resource in many parts of the world, it is generally burned in a manner that creates significant amounts of air pollution. On a global scale, the burning of coal produces more carbon dioxide than any other fossil fuel source. “Clean coal” technologies have been developed, but such technologies are enormously expensive. In the U.S., coal comes from several different regions. The Northern Appalachian area of the Eastern U.S. and the Illinois Basin in the Midwest produce coal that is high in sulfur, which emits more pollutants. In contrast are the enormous stores of coal in Wyoming and Montana, which burn at lower temperatures and produce less energy than highsulfur coal, but create less pollution. In existing mines, the U.S. has about 250 billion tons of recoverable coal. Combined with coal seams outside of mines, the U.S. has 500 billion tons of recoverable coal. According to BP, coal accounted for 29.6% of global energy consumption in 2010, compared to 25.6% in 2000. China used 48.2% of the global supply and made up almost two-thirds of global consumption growth. Meanwhile, use of coal in the OECD nations rose by 5.2% (the largest year over year rise since 1979). Production was up sharply in the U.S. and Asia, but slowed in the EU in 2010. As of 2010, a number of U.S. utilities were turning away from coal in favor of less polluting fuels such as natural gas. This is due partly to stricter emissions regulations now placed on coal-burning

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plants. Texas-based Calpine acquired 19 power plants from Pepco Holdings, Inc. for $1.63 billion. The bulk of the plants burn natural gas, and Calpine is planning to convert its coal burning concerns in New Jersey and Delaware to gas also. North Carolina utility Progress Energy plans to close 11 coal burning plants by 2017. In 2011, the Environmental Protection Agency (EPA) established the Cross-State Air Pollution Rule, which affected about 1,000 power plants in 27 U.S. states. The plants must cut emissions of sulfur dioxide by 73% and nitrogen oxide by 54%, from 2005 levels, by 2012. The requirements were estimated to cost businesses and their customers $2.4 billion per year to implement. The Rule created an immediate uproar. A number of analysts stated major concerns about its impact on the reliability and stability of the U.S. power grid. Others consider the total costs to the economy to be much too high, particularly while the economy is struggling to recover from the Great Recession of 2007-09. The Federal Energy Regulatory Commission (FERC) announced in August 2011 that 81 gigawatts of generating capacity is likely to be lost by 2018 as coal plants are restricted or closed. That amounts to approximately 8% of all U.S. generating capacity, which could easily result in blackouts and rolling brownouts in addition to substantial raises in electricity rates. The EPA subsequently softened the requirements with a proposal in October 2011 to offer 10 U.S. states more flexibility in meeting the rule and all 27 states now have until 2014 to comply instead of 2012. Even after these changes, this is still a daunting regulation with the potential for massive economic consequences. The Institute of Clean Air Technologies estimates that the market for pollution control and monitoring technology could soar from $4 billion in 2011 to $10 billion by 2014. Charlotte, North Carolina-based LP Amina has developed revolutionary technologies for cleaner coal use that it is testing with utilities in China and Russia. One technology reduces the size of coal particles so that they burn more efficiently while reducing emissions of nitric oxide and nitrogen-dioxide. Further developments appear to reduce greenhouse gas emissions by as much as 25%. High-sulfur coal is now easier to sell in some markets, since advanced filtering units called scrubbers are in use by a growing number of electric generating companies. Scrubbers are multistory facilities that are built adjacent to smokestacks. They capture sulfur as the coal exhaust billows through the

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smokestack and sequester it for storage before it can be cleaned. Unfortunately, scrubbers are extremely expensive. Costs of $400 million for a single scrubber are common. For example, Progress Energy budgeted $1 billion on the technology for three of its newer coal-burning plants, which generate enough revenue to justify the expense. Multiple clean coal technologies are in development. Scientists at the University of Texas are developing a new technology that blasts sound waves into the flue ducts of coal-fired power plants. The noise, which registers at more than 150 decibels (about as loud as a jet engine at takeoff) causes tiny ash particles in the emission stream to vibrate and stick to larger ones, thereby making larger particles that are easier to capture by pollution control equipment like scrubbers. Yet another technology to reduce emissions is the use of photosynthesis to capture exhaust gases, such as CO2, from power plants. A company called GS CleanTech (now a part of GreenShift Corporation, www.greenshift.com) developed a CO2 Bioreactor that converts a concentrated supply of carbon dioxide into oxygen and biomass in the form of algae, which can then be converted into fuel. Competitor GreenFuel Technologies (www.greenfuelonline.com) uses a different method of recycling carbon dioxide from flue gases, achieving the same end result: algae. An early test of GreenFuel’s reactor at the Massachusetts Institute of Technology promised the removal of 75% of the carbon dioxide in the exhaust sampled. The biggest company in this field is Synthetic Genomics, www.syntheticgenomics.com, which received a massive investment from ExxonMobil. Coal-gasification plants could become a trend for electric generation plant construction over the long term. However, costs remain a significant obstacle. Such plants use a process that first converts coal into a synthetic gas, later burning that gas to power the electric generators. The steam produced in the process is further used to generate electricity. The process is called Integrated Gasification Combined Cycle (IGCC). While these plants are much more expensive to construct than traditional coal-burning plants, they produce much less pollution. Since the coal isn’t actually burnt, these plants can use lowercost coal that is high in sulfur. In addition, such plants reduce the amount of mercury emitted from the use of coal by as much as 95%. Two existing “demonstration” plants use IGCC technology, built and operated with federal subsidies. They are located in Mulberry, Florida and West Terre Haute, Indiana.

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Japan has constructed a demonstration plant, the Nakoso Power Station at Iwaki City. American Electric Power (AEP), a Columbus, Ohio electric utility, shelved plans to build an IGCC carbon-capture plant in West Virginia due to the company’s concerns that state regulators would not allow it to be reimbursed for $668 million cost above through raises in customer utility rates. Without substantial government support on the federal and state levels, power companies are unlikely to be able to afford IGCC efforts. An additional step that can be added to IGCC plants is the capture or “sequestration” of carbon dioxide. The technology to do so already exists. For example, Norway’s Statoil has used it for years at its natural-gas wells in the North Sea. The sequestered carbon dioxide can be pumped underground. Fortunately, carbon dioxide can be used in oil and gas wells to enhance recovery in a process known as CO2 flooding. These floods sit near large, natural reservoirs of CO2. The DOE estimated that U.S. oil production using CO2 flooding could multiply fourfold by 2020. Internet Research Tip: Carbon Capture and Sequestration (CCS) For an excellent discussion of carbon capture and sequestration technologies, research and demonstration projects, see the U.S. Department of Energy’s web site for the NETL (National Energy Technology Laboratory) www.netl.doe.gov/technologies/carbon_seq/index.ht ml. South African fuel company Sasol Ltd. has had success in making liquid fuel from coal that powers gasoline, diesel and jet engines. Germany first used the technology, which is called Fischer-Tropsch after the scientists who developed it, during World War II. In the decades since then, the technology has been refined and improved to the point that Sasol provides a significant portion of South Africa’s fuel needs and is expanding with gas-to-liquids plants in Qatar and Nigeria. In the U.S., recent federal stimulus funding includes money for carbon capture and sequestration research and demonstration. FutureGen Alliance, www.futuregenalliance.org, a project involving a utilities consortium funded by subsidies from the U.S. government, hopes to build a plant in Mattoon, Illinois to test cutting-edge techniques for converting coal to gas, capturing and storing pollutants and burning gas for power. By late 2010, FutureGen

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Alliance signed an agreement with the DOE to build the FutureGen 2.0 CO2 pipeline network and CO2 storage site to be built in Morgan County, Illinois. Carbon capture and storage is a global effort, especially in Europe where $10.5 billion in government funding has been promised for new projects, according to Bloomberg new Energy Finance (BNEF). Funding is far less in other countries: $5.1 billion in the U.S.; $4.9 billion in Canada; and $2.5 billion in Australia. 20) Production of Synthetic Crude from

Kerogen Trapped in Shale Advances Through New Technologies While the U.S. has much smaller oil sands deposits than those of Canada, it is rich in a different unconventional oil formation: oil shale. Oil shale is a rock formation containing the oil precursor kerogen, which can be processed into synthetic oil of very high quality, similar to sweet crude. Kerogenbearing shales are younger, in geologic terms, than formations that contain crude oil. Natural forces have not yet converted the sedimentary kerogen deposits into crude. (This type of field is not to be confused with production of actual crude oil from shale in the Bakken Shale and other fields.) Oil shale yields between 10 and 60 gallons of kerogen-based oil equivalent per ton of rock. Vast reserves are in the Green River Formation in the Western U.S., including parts of Colorado, Wyoming and Utah. The richest U.S. fields (those that contain at least 15 gallons per ton) are thought to hold a total of 1.8 trillion barrels of oil equivalent. During the 1970s, after the oil embargo crisis, the federal government strongly encouraged both energy conservation and alternative production. In 1979, it established the U.S. Synthetic Fuels Corp., endowing it with billions of dollars for research and development of new fuels. As a result, major oil companies attempted to commercialize oil shale, but those efforts were largely abandoned by the 1980s as oil prices fell. There were also concerns about environmental damage from shale mining, and there were many technical hurdles to face. Commercial production seemed impossible. By 1985, Congress killed the Synthetic Fuels Corp. Today, producing oil from shale remains a major challenge, but the immense oil needs of Americans combined with fluctuating prices for petroleum means that oil shale will receive a new look by the industry. As long as the price of crude oil remains above $50, oil shale production may become attractive. For example, Shell Exploration &

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Production has a well-advanced test site in Colorado where it is attempting to perfect a technology that warms the kerogen while in the ground, by using heated rods that are sunk into layers of shale and then pumping out the resulting liquid. The system is called the In Situ Conversion Process (ICP). (See www.shell.us/home/content/usa/aboutshell/projects_l ocations/mahogany/technology for details.) ExxonMobil is researching similar technology called Electrofrac which cracks shale deposits with hydraulic pumps and then pours in electrolytic fluid to separate the kerogen from the rock. Shale deposits can be deep—up to hundreds of feet below the surface. Shell’s technology is moving ahead rapidly, with more than 200 oil shale development patents filed, it is the firm’s biggest R&D investment. Shell has even announced that it will work with the government of China to develop shale deposits there. Other firms seek to “mine” the rock and then process the oil from the shale using high heat in furnaces. There are vast ecological problems with this method, however, as the process is very similar to strip mining. 21) Superconductivity Comes of Age

Superconductivity is based on the concept of using super-cooled cable to distribute electricity over distance, with little of the significant loss of electric power incurred during traditional transmission over copper wires. It is one of the most promising technologies for upgrading the ailing electricity grid. Superconductivity dates back to 1911, when a Dutch physicist determined that the element mercury, when cooled to minus 452 degrees Fahrenheit, has virtually no electrical resistance. That is, it lost zero electric power when used as a means to distribute electricity from one spot to another. Two decades later, in 1933, a German physicist named Walther Meissner discovered that superconductors have no interior magnetic field. This property enabled superconductivity to be put to commercial use by 1984, when magnetic resonance imaging machines (MRIs) were commercialized for medical imaging. In 1986, IBM researchers K. Alex Muller and Georg Bednorz paved the path to superconductivity at slightly higher temperatures using a ceramic alloy as a medium. Shortly thereafter, a team led by University of Houston physicist Paul Chu created a ceramic capable of superconductivity at temperatures high enough to encourage true commercialization. In May 2001, the Danish city of Copenhagen established a first when it implemented a 30-meterlong “high temperature” superconductivity (HTS)

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cable in its own energy grids. Other small but successful implementations have occurred in the U.S. Internet Research Tip: For an easy-to-understand overview of superconductivity and its many current and future applications, visit the Superconductivity Technology Center of the Los Alamos National Labs: www.lanl.gov/orgs/mpa/mpastc.shtml Today, the Holy Grail for researchers is a quest for materials that will permit superconductivity at temperatures above the freezing point, even at room temperature. There are two types of superconductivity: “low-temperature” superconductivity (LTS), which requires temperatures lower than minus 328 degrees Fahrenheit; and “high-temperature” superconductivity (HTS), which operates at any temperature higher than that. The former type requires the use of liquid helium to maintain these excessively cold temperatures, while the latter type can reach the required temperatures with much cheaper liquid nitrogen. Liquid nitrogen is pumped through HTS cable assemblies, chilling thin strands of ceramic material that can carry electricity with no loss of power as it travels through the super-cooled cable. HTS wires are capable of carrying more than 130 times the electrical current of conventional copper wire of the same dimension. Consequently, the weight of such cable assemblies can be one-tenth the weight of old-fashioned copper wire. While cable for superconductivity is both exotic and expensive, the cost is plummeting as production ramps up, and the advantages can be exceptional. Increasing production to commercial levels at an economic cost, as well as producing lengths suitable for transmission purposes remain among the largest hurdles for the superconductor industry. Applications that are currently being implemented include use in electric transmission bottlenecks and in expensive engine systems such as those found in submarines. Another major player in HTS components is Sumitomo Electric Industries, the largest cable and wire manufacturer in Japan. The firm has begun commercial production of HTS wire at a facility in Osaka. In addition, Sumitomo has developed electric motors based on HTS coil. The superconducting motors are much smaller and lighter than conventional electric motors, at about 90% less volume and 80% less weight. Another leading firm, AMSC, formerly American Superconductor (www.amsc.com), sells

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technology to wind turbine makers, enabling them to design full 10 megawatt class superconductor wind turbines that will operate with higher efficiency than traditional models. It is also participating in advanced-technology electric transmission projects. For example, in collaboration of LS Cable in Korea, it is supplying technology for over 30 miles of superconducting cable systems for the Korean electric grid, starting in late 2010. Advanced-generation HTS cable has been developed at American Superconductor, utilizing multiple coatings on top of a 100-millimeter substrate, a significant improvement over its earlier 40-millimeter technology. The goal is to achieve the highest level of alignment of the atoms in the superconductor material resulting in higher electrical current transmission capacity. This will increase manufacturing output while increasing efficiency. This is a convergence of nanotechnology with superconductivity, since it deals with materials at the atomic level. The company is well set up to increase production as demand increases. Leading Firms in Superconductivity Technology: Sumitomo Electric Industries, http://global-sei.com AMSC, www.amsc.com Nexans, www.nexans.com SuperPower, Inc., www.superpower-inc.com

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Chapter 2 RENEWABLE, ALTERNATIVE & HYDROGEN ENERGY INDUSTRY STATISTICS Contents: Global Alternative Energy Industry Overview U.S. Alternative Energy Industry Overview Approximate Energy Unit Conversion Factors Average Heat Content of Selected Biomass Fuels Biomass Energy Resource Hierarchy Comparison of Alternative Fuels with Gasoline & Diesel Estimated Number of Alternative Fueled Vehicles in Use in the U.S., by Fuel Type: 2005-2009 World Total Primary Energy Consumption by Region: 2006-2035 World Consumption of Hydroelectricity & Other Renewable Energy by Region: 2006-2035 Share of Electricity Generation by Energy Source, U.S.: Projections, 1980-2035 Energy Consumption by Source & Sector, U.S.: 2010 Primary Energy Flow by Source & Sector, U.S.: 2010 Total Electrical Power Generation by Fuel Type, U.S.: 1981-1st 7 Months of 2011 Net Electricity Generation from Conventional Hydropower by Sector & Region, U.S.: 2009-2010 U.S. Historical Hydroelectric Generation Compared to 16-Year Average for 1995-2010 Energy Production by Fossil Fuels & Nuclear Power, U.S.: Selected Years, 1950-2010 Energy Production by Renewable Energy, U.S.: Selected Years, 1950-2010 Renewable Energy Consumption by Source, U.S.: Selected Years, 1950-2010 Renewable Energy Consumption in the Residential, Commercial & Industrial Sectors, U.S.: 2004-2010 Renewable Energy Consumption in the Transportation & Electric Power Sectors, U.S.: 2004-2010 Summary of Fuel Ethanol Production, U.S.: 2010 The 15 Largest Nuclear Power Plants in the U.S.: 2010 Top 10 Countries by Installed Wind Generating Capacity: 2010 Top 15 U.S. States by Installed Wind Generating Capacity: 2010 Shipments of Photovoltaic Cells & Modules by Market Sector, End Use & Type, U.S.: 2008-2009 Shipments of Solar Thermal Collectors, U.S., 2000-2009 U.S. Department of Energy Funding for Scientific Research: 2010-2012 Federal Research & Development (R&D) & R&D Plant Funding for Energy, U.S.: Fiscal Years 2009-2011

50 51 52 53 54 55 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78

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Global Alternative Energy Industry Overview Number

Unit

Year

Source

459,000

MW

2015

GWEC

197,039

MW

2010

GWEC

158,908

MW

2009

GWEC

120,291

MW

2008

GWEC

93,820

MW

2007

GWEC

74,052

MW

2006

GWEC

Global Wind Power

Cumulative Installed Wind Turbine Capacity, End of Year (2015 figure is a projection.)

Global Geothermal Power

Cumulative Installed Geothermal Power Capacity, End of Year (2015 figure is a projection.)

11,600

MW

2015

PRE

10,900

MW

2010

BP/IGA

10,710

MW

2009

BP/IGA

10,313

MW

2008

BP/IGA

9,922

MW

2007

BP/IGA

9,485

MW

2006

BP/IGA

43,500

TTOE

2010

BP

38,418

TTOE

2009

BP

35,627

TTOE

2008

BP

26,955

TTOE

2007

BP

21,048

TTOE

2006

BP

775.6

MTOE

2010

BP

736.3

MTOE

2009

BP

724.7

MTOE

2008

BP

696.5

MTOE

2007

BP

684.4

MTOE

2006

BP

626.2

MTOE

2010

BP

614.0

MTOE

2009

BP

619.2

MTOE

2008

BP

622.1

MTOE

2007

BP

635.4

MTOE

2006

BP

40,000

MW

2010

BP/IEA

22,929

MW

2009

BP/IEA

15,599

MW

2008

BP/IEA

9,173

MW

2007

BP/IEA

6,775

MW

2006

BP/IEA

Global Fuel Ethanol Production

Production

Global Hydroelectric Power Consumption

Consumption*

Global Nuclear Power Consumption

Consumption*

Global Solar Power

Cumulative Installed Photovoltaic (PV) Power (IEA Photovoltaic Power Systems Program Member Countries)

* Based on gross generation and not accounting for cross-border electricity supply. Converted on the basis of thermal equivalence assuming 38% conversion efficiency in a modern thermal power station. MW = Megawatts TTOE = Thousand Tonnes Oil Equivalent MTOE = Million Tonnes Oil Equivalent IEA = International Energy Agency IGA = International Geothermal Association Source: Plunkett Research, Ltd. Copyright© 2010, All Rights Reserved www.plunkettresearch.com

GWEC = Global Wind Energy Council BP = British Petroleum BTM Consult = BTM Consulting APS PRE = Plunkett Research Estimate

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U.S. Alternative Energy Industry Overview Energy Production By Fossil Fuels

75,031

Tril. Btus

2010

DOE

58,527

Tril. Btus

2010

DOE

By Renewable Energy Power Sources

8,064

Tril. Btus

2010

DOE

Wood, Waste, Alcohol (Biomass)

4,309

Tril. Btus

2010

DOE

Conventional Hydroelectric Power

2,509

Tril. Btus

2010

DOE

Geothermal

212

Tril. Btus

2010

DOE

Wind

924

Tril. Btus

2010

DOE

Solar

109

Tril. Btus

2010

DOE

By Nuclear Energy Consumption (Includes Imports) By Fossil Fuels

8,440

Tril. Btus

2010

DOE

98,003

Tril. Btus

2010

DOE

81,425

Tril. Btus

2010

DOE

By Renewable Energy Power Sources

8,049

Tril. Btus

2010

DOE

Wood, Waste, Alcohol (Biomass)

4,295

Tril. Btus

2010

DOE

Conventional Hydroelectric Power

2,509

Tril. Btus

2010

DOE

Geothermal

212

Tril. Btus

2010

DOE

Wind

924

Tril. Btus

2010

DOE

Solar

109

Tril. Btus

2010

DOE

By Nuclear

8,441

Tril. Btus

2010

DOE

Biomass (Includes Wood, Waste and Biofuels)

53.4

%

2010

DOE

Hydroelectric

31.2

%

2010

DOE

Geothermal

2.6

%

2010

DOE

Wind

11.5

%

2010

DOE

Solar

1.4

%

2010

DOE

394.5

TWhs

2010

DOE

255.3

TWhs

2010

DOE

Percent Share of Renewable Energy Consumption

Net Electricity Generation from Renewable Energy Sources 2010 Conventional Hydroelectric Biomass

27.6

TWhs

2010

DOE

Wood & Wood-Derived Fuels

11.5

TWhs

2010

DOE

MSW/Landfill Gas/Sludge Waste, Byproducts, Other Biomass

16.1

TWhs

2010

DOE

Wind

94.6

TWhs

2010

DOE

Geothermal

15.7

TWhs

2010

DOE

Solar

1.3

TWhs

2010

DOE

1,300

MW

1990

AWEA

U.S. Wind Generating Capacity, 1990 U.S. Wind Generating Capacity, 2010 (September)

43,461

MW

2011

AWEA

826,318

Vehicles

2009

EIA

Hybrid Electric Vehicle Sales

274,200

Vehicles

2010

EIA

DOE = U.S. Department of Energy

Btu = British Thermal Unit

AWEA = American Wind Energy Association

TWhs = Terawatt-Hours

PRE = Plunkett Research estimate

MSW = Municipal Solid Waste

MW = Megawatts

P = Projected

Number of Alternative Fuel Vehicles In Use

*

*

An alternative fuel vehicle must have the input fuel as an alternative to gasoline or diesel. For this reason gasoline-electric and dieselelectric hybrids are excluded. Source: Plunkett Research, Ltd. Copyright© 2010, All Rights Reserved www.plunkettresearch.com

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Approximate Energy Unit Conversion Factors Crude oil1 To convert into: 2

Tonnes Kilolitres Barrels US gallons Barrels per day

tonnes Multiply by: 1 0.8581 0.1364 0.00325 –

1

2

From 2

Based on worldwide average gravity.

kilolitres

barrels

US gallons

tonnes/year

1.165 1 0.159 0.0038 –

7.33 6.2898 1 0.0238 –

307.86 264.17 42 1 –

– – – – 49.8

tonnes = metric tons

Products To convert: barrels to tonnes

From

Multiply by: 0.086 0.118 0.128 0.133 0.149

Liquefied Petroleum Gas (LPG) Gasoline Kerosene Gas oil/diesel Fuel oil

tonnes to barrels

kilolitres to tonnes

tonnes to kilolitres

11.6 8.5 7.8 7.5 6.7

0.542 0.740 0.806 0.839 0.939

1.844 1.351 1.240 1.192 1.065

Natural Gas (NG) and Liquefied Natural Gas (LNG)

From 1 billion cubic meters NG 1 billion cubic feet NG 1 million tonnes oil equivalent 1 million tonnes LNG 1 trillion British thermal units 1 million barrels oil equivalent

To convert to: million tonnes oil million tonnes equivalent LNG

billion cubic meters NG Multiply by: 1 0.028

billion cubic feet NG

trillion British thermal units

million barrels oil equivalent

35.3 1

0.90 0.025

0.74 0.021

35.7 1.01

6.60 0.19

1.111

39.2

1

0.82

39.7

7.33

1.36 0.028

48.0 0.99

1.22 0.025

1 0.021

48.6 1

8.97 0.18

0.15

5.35

0.14

0.11

5.41

1

Units 1 metric tonne = 2204.62 lb. = 1.1023 short tons 1 kilolitre = 6.2898 barrels 1 kilolitre = 1 cubic meter

1 kilocalorie (kcal) = 4.187 kJ = 3.968 Btu 1 kilojoule (kJ) = 0.239 kcal = 0.948 Btu 1 British thermal unit (Btu) = 0.252 kcal = 1.055 kJ 1 kilowatt-hour (kWh) = 860 kcal = 3600 kJ = 3412 Btu

Calorific equivalents: One tonne of oil equivalent equals approximately: 10 million kilocalories 42 gigajoules

Heat units

40 million Btu

Solid fuels Gaseous fuels Electricity

1.5 tonnes of hard coal 3 tonnes of lignite See Natural gas and LNG table 12 megawatt-hours

Note: One million tonnes of oil or oil equivalent produces about 4,400 gigawatt-hours (= 4.4. terawatt-hours) of electricity in a modern power station. Source: BP, Statistical Review of Energy, June 2011 Plunkett Research, Ltd. www.plunkettresearch.com

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Average Heat Content of Selected Biomass Fuels Fuel Type

Heat Content

Units

Agricultural Byproducts

8.248

Million Btu/Short Ton

Biodiesel

5.359

Million Btu/Barrel

Black Liquor

11.758

Million Btu/Short Ton

Digester Gas

0.619

Million Btu/Thousand Cubic Feet

Ethanol

3.563

Million Btu/Barrel

Landfill Gas

0.490

Million Btu/Thousand Cubic Feet

MSW Biogenic

9.696

Million Btu/Short Ton

Methane

0.841

Million Btu/Thousand Cubic Feet

Paper Pellets

13.029

Million Btu/Short Ton

Peat

8.000

Million Btu/Short Ton

Railroad Ties

12.618

Million Btu/Short Ton

Sludge Waste

7.512

Million Btu/Short Ton

Sludge Wood

10.071

Million Btu/Short Ton

Solid Byproducts

25.830

Million Btu/Short Ton

Spent Sulfite Liquor

12.720

Million Btu/Short Ton

Utility Poles

12.500

Million Btu/Short Ton

Waste Alcohol

3.800

Million Btu/Barrel

Btu = British Thermal Unit Note: For detailed characteristics of biomass feedstocks, see the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, website at the following address: http://www1.eere.energy.gov/biomass/for_researchers.html. Source: U.S. Department of Energy, Energy Information Administration Plunkett Research, Ltd. www.plunkettresearch.com

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Biomass Energy Resource Hierarchy

Source: U.S. Department of Energy, Energy Information Administration Plunkett Research, Ltd. www.plunkettresearch.com

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Comparison of Alternative Fuels with Gasoline & Diesel (Average Prices as of October 2011)

Gasoline

No. 2 Diesel

Biodiesel (B20)

Compressed Natural Gas (CNG)

Electricity

Octane Number

86 to 94

8 to 15

~25

120+

N/A

Cetane Number

5 to 20

40 to 55

46 to 60

N/A

N/A

Crude Oil

Crude Oil

Soy bean oil, waste cooking oil, animal fats and rapeseed oil

Underground reserves

Coal; however, nuclear, natural gas, hydroelectric and renewable resources can also be used.

109,000 - 125,000 Btu

128,000 - 130,000 Btu

117,000 - 120,000 Btu (compared to diesel #2)

33,000 - 38,000 Btu @ 3000 psi; 38,000 - 44,000 @ 3600 psi

N/A

N/A

N/A

1.1 to 1 or 90% (relative to diesel)

3.94 to 1 or 25% at 3000 psi; 3.0 to 1 @ 3600 psi

N/A

Liquid

Liquid

Liquid

Compressed Gas

N/A

Produces harmful emissions; however, gasoline and gasoline vehicles are rapidly improving and emissions are being reduced.

Produces harmful emissions; however, diesel and diesel vehicles are rapidly improving and emissions are being reduced, especially with after-treatment devices.

Reduces particulate matter and global warming gas emissions compared to conventional diesel; however, NOx emissions may be increased.

CNG vehicles can demonstrate a reduction in ozoneforming emissions compared to some conventional fuels; however, HC emissions may be increased.

Electric vehicles have zero tailpipe emissions; however, some amount of emissions can be contributed to power generation.

Available at all fueling stations.

Available at select fueling stations.

Available in bulk from an increasing number of suppliers. Most states currently have some biodiesel stations available to the public, for a U.S. total of about 633. North Carolina has the highest concentration of stations, with 143.

Roughly 941 CNG stations can be found across the country. California has the highest concentration of CNG stations, with nearly a quarter of the U.S. total. Home fueling has also been available since 2005.

Most homes, gov't facilities, fleet garages, and businesses have adequate electrical capacity for charging, but special upgrades may be required. There are about 4971 charging stations nationwide, with over 1370 of these in California.

3.46

3.81

3.91

2.09

N/A

Main Fuel Source

Energy Content per Gallon Energy Ratio Compared to Gasoline Physical State

Environmental Impacts of Burning Fuel

Fuel Availability

Average Retail Price (US$ per gallon)

(Continued on next page)

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Comparison of Alternative Fuels with Gasoline & Diesel (cont.) (Average Prices as of October 2011) Ethanol (E85)

Hydrogen

Liquefied Natural Gas (LNG)

Liquefied Petroleum Gas (Propane, LPG)

Methanol (M85)

Octane Number

100

130+

120+

104

100

Cetane Number

N/A

N/A

N/A

N/A

N/A

Corn, grains or agricultural waste

Natural Gas, Methanol and other energy sources.

Underground reserves

A by-product of petroleum refining or natural gas processing

Natural gas, coal or woody biomass

~80,000 Btu

Gas: ~6,500 Btu@3,000 psi; ~16,000 Btu@10,000 psi; Liquid: ~30,000 Btu

~73,500 Btu

~84,000 Btu

56,000 - 66,000 Btu

1.42 to 1 or 70%

N/A

1.55 to 1 or 66%

1.36 to 1 or 74%

1.75 to 1 or 57%

Liquid

Compressed Gas or Liquid

Liquid

Liquid

Liquid

E-85 vehicles can demonstrate a 25% reduction in ozoneforming emissions compared to reformulated gasoline.

Zero regulated emissions for fuel cell-powered vehicles, and only NOx emissions possible for internal combustion engines operating on hydrogen.

LNG vehicles can demonstrate a reduction in ozoneforming emissions compared to some conventional fuels; however, HC emissions may be increased.

LPG vehicles can demonstrate a 60% reduction in ozoneforming emissions compared to reformulated gasoline.

M-85 vehicles can demonstrate a 40% reduction in ozoneforming emissions compared to reformulated gasoline.

U.S. E-85 fueling stations are most heavily concentrated in the Midwest, but, in all, nearly 2494 stations are available.

There are only a small number of hydrogen stations across the country, 56, 23 of which are in California. Most are available for private use only.

Public LNG stations are limited (only about 43 nationally, mostly in California), and LNG is also available through several suppliers of cryogenic liquids.

Propane is one of the most accessible alternative fuels in the U.S. There are nearly 2551 filling stations nationwide, with high concentrations in California (227 stations) and Texas (491 stations).

Though still considered a qualified alternative fuel, the use of Methanol has dramatically declined since the early 1990s. It is used to a greater degree in racing cars, as well as in Chinese automobiles.

3.19

N/A

N/A

3.06

N/A

Main Fuel Source

Energy Content per Gallon

Energy Ratio Compared to Gasoline Physical State

Environmental Impacts of Burning Fuel

Fuel Availability

Average Retail Price (US$ per gallon)

N/A = Not applicable or not available. Source: U.S. Department of Energy, Alternative Fuels Data Center Plunkett Research, Ltd. www.plunkettresearch.com

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Estimated Number of Alternative Fueled Vehicles in Use in the U.S., by Fuel Type: 2005-2009 (Latest Year Available) Fuel Type

2005

2006

2007

2008

2009

Compressed Natural Gas (CNG)

117,699

116,131

114,391

113,973

114,270

Electric1

51,398

53,526

55,730

56,901

57,185

Ethanol, 85% (E85)2,3

246,363

297,099

364,384

450,327

504,297

119

159

223

313

357

2,748

2,798

2,781

3,101

3,176

173,795

164,846

158,254

151,049

147,030

3

3

3

3

3

592,125

634,562

695,766

775,667

826,318

Hydrogen Liquefied Natural Gas (LNG) Liquefied Petroleum Gas (LPG) Other Fuels4

Total

Notes: Vehicles in Use do not include concept and demonstration vehicles that are not ready for delivery to end users. Vehicles in Use represent accumulated acquisitions, less retirements, as of the end of each calendar year. The estimated number of neat methanol (M100), 85-percent methanol (M85), and 95-percent ethanol (E95) vehicles in use is zero for all years included in this table. Therefore, those fuels are not shown. 1

Excludes gasoline-electric and diesel-electric hybrids because the input fuel is gasoline or diesel rather than an alternative transportation fuel. The Department of Energy does not classify hybrids as "alternative fuel vehicles." 2

The remaining portion of 85% ethanol is gasoline.

3

In 1997, some vehicle manufacturers began including E85-fueling capability in certain model lines of vehicles. The Energy Information Administration estimates the total number of E-85 vehicles capable of operating on E85, gasoline, or both, is about 7.1 million. Many of these alternative-fueled vehicles (AFVs) are sold and used as traditional gasoline-powered vehicles. In this table AFVs in use include only those E85 vehicles believed to be used as AFVs. These are primarily fleet-operated vehicles. 4

May include P-Series fuel or any other fuel designated by the Secretary of Energy as an alternative fuel in accordance with the Energy Policy Act of 1995. Source: U.S. Department of Energy, Energy Information Administration Plunkett Research, Ltd. www.plunkettresearch.com

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World Total Primary Energy Consumption by Region: 2006-2035 (Quadrillion Btu) History

Projections

Average Annual Percent Change 2008-2035

Region/Country

2006

2007

2008

2015

2020

2025

2030

2035

OECD OECD Americas United Statesa Canada Mexico/Chile OECD Europe OECD Asia Japan South Korea Australia/NewZealand Total OECD

122.3 99.8 14.0 8.5 82.8 39.2 23.3 9.4 6.5 244.3

124.3 101.7 14.3 8.3 82.3 39.4 23.0 9.8 6.6 246.1

122.9 100.1 14.3 8.5 82.2 39.2 22.4 10.0 6.8 244.3

126.1 102.0 14.6 9.5 83.6 40.7 22.2 11.1 7.4 250.4

131.0 104.9 15.7 10.4 86.9 42.7 23.2 11.6 7.8 260.6

135.9 108.0 16.4 11.5 89.7 44.2 23.7 12.4 8.1 269.8

141.6 111.0 17.6 13.0 91.8 45.4 23.7 13.1 8.5 278.7

147.7 114.2 18.8 14.7 93.8 46.7 23.8 13.9 8.9 288.2

0.7% 0.5% 1.0% 2.1% 0.5% 0.7% 0.2% 1.2% 1.0% 0.6%

Non-OECD Non-OECD Europe and Eurasia Russia Other Non-OECD Asia China India Other Middle East Africa Central and South America Brazil Other Total Non-OECD

48.9 29.1 19.8 121.0 73.4 18.8 28.8 24.0 17.2 25.9 11.5 14.4 237.0

49.6 29.7 19.9 128.6 78.9 20.0 29.7 24.0 17.8 26.5 12.1 14.5 246.5

50.5 30.6 19.9 137.9 86.2 21.1 30.7 25.6 18.8 27.7 12.7 15.0 260.5

51.4 31.1 20.4 188.1 124.2 27.8 36.2 31.0 21.5 31.0 15.5 15.6 323.1

52.3 31.3 21.0 215.0 140.6 33.1 41.3 33.9 23.6 34.2 17.3 16.9 358.9

54.0 32.3 21.7 246.4 160.9 38.9 46.7 37.3 25.9 38.0 19.9 18.1 401.7

56.0 33.7 22.3 274.3 177.9 44.3 52.1 41.3 28.5 42.6 23.2 19.5 442.8

58.4 35.5 22.9 298.8 191.4 49.2 58.2 45.3 31.4 47.8 26.9 20.8 481.6

0.5% 0.6% 0.5% 2.9% 3.0% 3.2% 2.4% 2.1% 1.9% 2.0% 2.8% 1.2% 2.3%

Total World

481.3

492.6

504.7

573.5

619.5

671.5

721.5

769.8

1.6%

Btu = British Thermal Unit OECD = Organisation for Economic Co-Operation and Development (A membership group of 30+ highly developed nations) Notes: Energy totals include net imports of coal coke and electricity generated from biomass in the U.S. Totals may not equal sum of components due to independent rounding. The electricity portion of the national fuel consumption values consists of generation for domestic use plus an adjustment for electricity trade based on a fuel's share of total generation in the exporting country.

Source: U.S. Department of Energy, Energy Information Administration Plunkett Research, Ltd. www.plunkettresearch.com

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World Consumption of Hydroelectricity & Other Renewable Energy by Region: 2006-2035 (Quadrillion Btu) History

Region/Country

Projections

Average Annual Percent Change 2008-2035

2006

2007

2008

2015

2020

2025

2030

2035

OECD OECD Americas United States Canada Mexico/Chile OECD Europe OECD Asia Japan South Korea Australia/NewZealand Total OECD

10.7 6.4 3.7 0.6 7.6 2.0 1.2 0.1 0.7 20.4

10.7 6.2 3.9 0.6 8.1 1.9 1.1 0.1 0.7 20.7

11.8 7.0 4.0 0.7 8.4 1.9 1.1 0.1 0.7 22.1

14.2 8.6 4.3 1.3 12.0 3.1 1.6 0.2 1.2 29.3

15.8 9.5 4.9 1.4 14.2 3.6 2.0 0.2 1.4 33.6

17.3 10.6 5.2 1.5 15.8 3.9 2.2 0.2 1.4 37.1

18.8 11.3 5.7 1.8 16.5 4.1 2.3 0.3 1.5 39.4

19.9 11.8 6.0 2.1 17.1 4.3 2.4 0.3 1.6 41.4

2.0% 1.9% 1.5% 4.0% 2.7% 3.1% 2.9% 3.0% 3.3% 2.4%

Non-OECD Non-OECD Europe and Eurasia Russia Other Non-OECD Asia China India Other Middle East Africa Central and South America Brazil Other Total Non-OECD

3.3 1.9 1.4 10.5 4.7 2.4 3.5 0.3 3.5 9.2 5.5 3.7 26.8

3.1 1.9 1.2 11.2 5.3 2.5 3.5 0.3 3.6 9.6 5.9 3.7 27.8

3.0 1.7 1.3 12.6 6.4 2.4 3.7 0.1 3.7 9.8 6.0 3.8 29.2

3.6 2.1 1.5 20.3 11.2 3.5 5.6 0.4 4.3 10.7 7.2 3.5 39.3

3.9 2.2 1.7 27.3 15.8 4.7 6.8 0.6 4.7 12.1 8.2 3.9 48.6

4.2 2.5 1.7 30.5 17.8 5.3 7.4 0.6 5.1 14.1 9.7 4.4 54.6

4.6 2.8 1.8 34.1 19.7 6.0 8.4 0.7 5.6 16.3 11.5 4.7 61.2

5.0 3.1 1.9 38.2 21.8 6.7 9.7 0.8 6.0 18.1 13.1 5.0 68.1

1.9% 2.1% 1.6% 4.2% 4.6% 3.9% 3.6% 6.6% 1.9% 2.3% 2.9% 1.0% 3.2%

Total World

47.1

48.5

51.3

68.5

82.2

91.7

100.6

109.5

2.9%

Btu = British Thermal Unit OECD = Organisation for Economic Co-Operation and Development (A membership group of 30+ highly developed nations) Notes: Totals may not equal sum of components due to independent rounding. U.S. totals include net electricity imports, methanol and liquid hydrogen. Numbers for the U.S. are based on information in the 2010 Annual Energy Outlook. Source: U.S. Department of Energy, Energy Information Administration Plunkett Research, Ltd. www.plunkettresearch.com

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Share of Electricity Generation by Energy Source, U.S.: Projections, 1980-2035

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

1980

1990 Coal

2000 Natural Gas

2010

Renewables

Source: U.S. Department of Energy, Energy Information Administration Plunkett Research, Ltd. www.plunkettresearch.com

2020 Liquids

2030 Nuclear

2035

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Energy Consumption by Source & Sector, U.S.: 2010 (By Percent; Latest Year Available; Total Energy: 94.6 Quadrillion Btu) Sector, by Source Petroleum1: 36.0 Quad. Btu Transportation Industrial Residential & Commercial Electric Power Natural Gas2: 24.6 Quad. Btu Transportation Industrial Residential & Commercial Electric Power Coal3: 20.8 Quad. Btu Industrial Residential & Commercial Electric Power Nuclear Electric Power: 8.4 Quad. Btu Electric Power Renewable Energy4: 8.0 Quad. Btu Transportation Industrial Residential & Commercial Electric Power

71 22 5 1 3 33 34 30 8