Raser Technologies, Inc. (NYSE Arca: RZ) announced that it has completed an initial review of the previously announced 229,000 acres option on International Paper property for geothermal resources and has selected approximately 78,000 acres in Oregon and Washington for further study. Raser will have the exclusive right to these properties over the next 36 months to complete its analysis and enter into a long-term lease with the property owner.
“Over the past four months, we have completed a high-level geological analysis of the properties in the International Paper portfolio, ”said Brent Cook, Raser’s CEO. “We also reviewed other data related to the properties such as well logs, water chemistry, heat flow studies, surface manifestations and existing power structures to identify those properties that fit within our geothermal profile.”
"During the next 36 months we will complete our analysis of the properties and will likely further reduce the number of acres that we will ultimately lease to those select properties that can meet our development time frame,” continued Mr. Cook. “The final number of properties that we will lease will likely only be a fraction of the 78,000 acres in Oregon and Washington. This process of elimination will assure that we have selected the highest potential geothermal properties of the International Paper portfolio that we were able to evaluate.”
International Paper has identified 435,000 acres in its nationwide 3.5 million acre geothermal mineral estate as having prospective geothermal resources. Raser has the exclusive right to evaluate 229,000 acres in Oregon and Washington. The financial terms and conditions of the agreement were not disclosed. For more information
Friday, December 21, 2007
Congress Passes Energy Bill: Tax Credits Removed, Geothermal Research Provisions Passes
GEOTHERMAL ENERGY ASSOCIATION. 12/20/07
After numerous debates, Congress finally passed an energy bill which the President promptly signed. The final bill did not include any tax provisions, which were removed after the Senate failed to obtain the 60 votes necessary to close debate by a one-vote margin. However, the final bill does include the “Advanced Geothermal Energy Research and Development Act of 2007.” These research provisions are based upon compromise language between House and Senate bills that sought to revitalize geothermal research in light of recent reports by the Massachusetts Institute of Technology (MIT) and National Renewable Energy Laboratory (NREL) that show geothermal energy can be a major energy source in the future with continued federal support for market and technology advances.
The Senate passed an energy bill that “will advance geothermal research and development for decades to come,” according to the Geothermal Energy Association (GEA), the trade association for the industry.
The underlying research bills were HR 2304, sponsored by Rep. Jerry McNerney (D-CA) and S.1543 introduced by Senate Energy Committee Chairman Jeff Bingaman (D-NM). Both had bipartisan co- sponsorship and support. The final provisions direct the Department of Energy to undertake a broad and aggressive research program to promote geothermal energy and authorize a total of $95 million annually for this new initiative.
“The new program of geothermal research set forth in the energy bill will help push the geothermal industry into a new era of advanced technology and expanded development,” said Karl Gawell, GEA’s Executive Director. “The geothermal provisions come at a crucial time in the history of the industry. Renewed research, development, and public-private partnerships are needed to continue the momentum we’ve seen in the past few years.”
After numerous debates, Congress finally passed an energy bill which the President promptly signed. The final bill did not include any tax provisions, which were removed after the Senate failed to obtain the 60 votes necessary to close debate by a one-vote margin. However, the final bill does include the “Advanced Geothermal Energy Research and Development Act of 2007.” These research provisions are based upon compromise language between House and Senate bills that sought to revitalize geothermal research in light of recent reports by the Massachusetts Institute of Technology (MIT) and National Renewable Energy Laboratory (NREL) that show geothermal energy can be a major energy source in the future with continued federal support for market and technology advances.
The Senate passed an energy bill that “will advance geothermal research and development for decades to come,” according to the Geothermal Energy Association (GEA), the trade association for the industry.
The underlying research bills were HR 2304, sponsored by Rep. Jerry McNerney (D-CA) and S.1543 introduced by Senate Energy Committee Chairman Jeff Bingaman (D-NM). Both had bipartisan co- sponsorship and support. The final provisions direct the Department of Energy to undertake a broad and aggressive research program to promote geothermal energy and authorize a total of $95 million annually for this new initiative.
“The new program of geothermal research set forth in the energy bill will help push the geothermal industry into a new era of advanced technology and expanded development,” said Karl Gawell, GEA’s Executive Director. “The geothermal provisions come at a crucial time in the history of the industry. Renewed research, development, and public-private partnerships are needed to continue the momentum we’ve seen in the past few years.”
Thursday, November 15, 2007
CNN Money Covers Raser's Geothermal Push
NEW YORK (Dow Jones) -- Raser Technologies Chairman Kraig Higginson eyes the vast tracts of empty land in the Western U.S. as the target of acquisition push by companies seeking to tap into the region's close-to-the-surface heat for geothermal electricity.
"There's only one jack rabbit per 100 square miles," Higginson joked about the region known as the ring of fire, including Nevada, Utah, New Mexico and Arizona. "There's a gold rush for geothermal leases, but fortunately we rushed early." read article
"There's only one jack rabbit per 100 square miles," Higginson joked about the region known as the ring of fire, including Nevada, Utah, New Mexico and Arizona. "There's a gold rush for geothermal leases, but fortunately we rushed early." read article
Thursday, November 8, 2007
Additional Raser Geothermal Sites Awarded QF Status from Federal Agency
Raser Technologies, Inc. (NYSE Arca: RZ) announced today that two additional geothermal power production facilities have received certification as Qualifying Facilities from the Federal Energy Regulatory Commission (FERC). Raser also announced the signing of additional leases in Southern Utah.
Provo, Utah, November 7, 2007 -- Raser Technologies, Inc. (NYSE Arca: RZ) announced today that two additional geothermal power production facilities have received certification as Qualifying Facilities from the Federal Energy Regulatory Commission (FERC). Raser also announced the signing of additional leases in Southern Utah.
QF status is awarded to qualifying renewable power production facilities and provides significant flexibility to Raser in its power sales because it grants Raser the option to require the host utility to purchase the power plant’s electrical output. It also gives the QF certain privileges regarding interconnection and access to the transmission grid. Geothermal QFs are also exempt from various provisions of the Public Utility Holding Company Act of 2005 (PUHCA), certain state laws and regulations respecting the rates and other financial and organizational aspects, and most sections of the Federal Power Act.
“The awarding of QF status is an important event in the development of these geothermal resources,” stated Brent M. Cook, Raser’s CEO. “We continue to see increasing demand for renewable, green electric power, and we are well positioned to take advantage of these favorable market dynamics. These certifications continue our progress along our expected timeline for putting a number of our power plants into production in 2008. Our goal is to initiate the construction of approximately 100 megawatts of geothermal power generation capacity per year for the first three years and 150 megawatts per year thereafter.”
Raser also announced today that it has secured additional geothermal rights in Utah under the terms of three newly signed lease agreements. Raser has secured the rights to the geothermal resources on 5,000 acres located in two counties in Southern Utah. The lease terms are 10 years and are renewable for additional periods based on development activity or upon the payment of minimum rental payments. The financial terms of the leases are undisclosed. Raser now has over 57,000 acres under lease in Utah alone for geothermal development.
Provo, Utah, November 7, 2007 -- Raser Technologies, Inc. (NYSE Arca: RZ) announced today that two additional geothermal power production facilities have received certification as Qualifying Facilities from the Federal Energy Regulatory Commission (FERC). Raser also announced the signing of additional leases in Southern Utah.
QF status is awarded to qualifying renewable power production facilities and provides significant flexibility to Raser in its power sales because it grants Raser the option to require the host utility to purchase the power plant’s electrical output. It also gives the QF certain privileges regarding interconnection and access to the transmission grid. Geothermal QFs are also exempt from various provisions of the Public Utility Holding Company Act of 2005 (PUHCA), certain state laws and regulations respecting the rates and other financial and organizational aspects, and most sections of the Federal Power Act.
“The awarding of QF status is an important event in the development of these geothermal resources,” stated Brent M. Cook, Raser’s CEO. “We continue to see increasing demand for renewable, green electric power, and we are well positioned to take advantage of these favorable market dynamics. These certifications continue our progress along our expected timeline for putting a number of our power plants into production in 2008. Our goal is to initiate the construction of approximately 100 megawatts of geothermal power generation capacity per year for the first three years and 150 megawatts per year thereafter.”
Raser also announced today that it has secured additional geothermal rights in Utah under the terms of three newly signed lease agreements. Raser has secured the rights to the geothermal resources on 5,000 acres located in two counties in Southern Utah. The lease terms are 10 years and are renewable for additional periods based on development activity or upon the payment of minimum rental payments. The financial terms of the leases are undisclosed. Raser now has over 57,000 acres under lease in Utah alone for geothermal development.
Wednesday, November 7, 2007
Raser Listed as One of Nine Hot Geothermal Stocks
One of the alternative energy industries that hasn't received much press coverage is the geothermal group of stocks. Geothermal generation utilizes natural underground heat sources that powers a turbine which turns a generator. The word 'geothermal' comes from the Greek words 'geo', which means 'earth', and 'therme,' which means 'heat'. As it turns out, several of these geothermal stocks have been steaming in terms of stock price. As it turns out, several of these geothermal stocks have been steaming in terms of stock price. Read full article
Here is the list:
Calpine Corporation (CPNLQ.PK), was founded in 1984. This San Jose-based company provides electricity in the United States, and Canada through the ownership, and operation of its own power generation plants. It owns 19 geothermal power plants at The Geysers in California. Its earnings have been negative, but revenues were up about 27% for the latest quarter.
Constellation Energy Group (CEG), was founded in 1906. This electrical generating company owns, and operates generating plants and fuel processing facilities utilizing various types of fuel including nuclear, coal, natural gas, oil, solar, geothermal, hydro and biomass. It has a P/E of 15.8, and a PEG of 1.43. Its yield is 2%.
IdaCorp, Inc. (IDA), is the holding company that owns the Idaho Power Company, which is involved in the generation, transmission, distribution, and sale of electric energy primarily in southern Idaho, and eastern Oregon. Its electrical generation comes from hydroelectric, natural gas, diesel, coal, and geothermal plants. It has a P/E of 12.6, and a PEG of2.92. It has a yield of 3.8%.
Nevada Geothermal Power, Inc. [NGLPF.OB], explores for, and develops geothermal projects in the United States to provide electricity. It owns a 100% leasehold interest in the Blue Mountain, Pumpernickel, and Black Warrior projects in Nevada, and the Crump Geyser Project, in southern Oregon.
Ormat Technologies Inc. (ORA), is a Nevada-based company, that was founded in 1965, and trades on the New York Stock Exchange. It owns, and operates geothermal power plants, that sell electricity in the United States, Guatemala, Kenya, Nicaragua, and the Philippines. It also provides products, and services to other geothermal power generators. It has a P/E of 70.2, a PEG of 2.67, and a yield of 0.5%.
PG&E Corp. (PCG), is a California-based electric, and gas utility which serves 5 million customers. Its electrical generation comes from natural gas, nuclear, hydro, coal, geothermal, wind, and several other types of renewable sources. It has a P/E of 15.6, and a PEG of 2.08. Its yield is 3.2%.
Polaris Geothermal (PGTHF.PK), is a developer of renewable energy in Latin America. It is currently developing a 66 MW geothermal project on its San Jacinto Tizate concession in Nicaragua.
Raser Technologies (RZ), is a Utah-based company that was founded in 2003, and trades on the New York Stock Exchange. It develops high performance electric motor, and controller technology. In addition, it has secured geothermal rights to certain Nevada properties owned by Truckee River Ranches, LLC, under the terms of a 50-year lease agreement. Its earnings have been negative.
Sierra Geothermal Power Corp [SRAGF.PK)], is a developer of renewable power from geothermal sources. It has investments in 15 geothermal projects located in Nevada, and California.
U.S. Geothermal Inc. (UGTH.OB) , is a Boise-based company, that was founded in 2002. It is involved in the development of geothermal energy power plants in the Raft River area of Idaho. Its earnings for the latest quarter were negative.
Western GeoPower Corp [WGPWF.PK] , develops geothermal energy projects. It owns the Unit 15 Steam Field located in The Geyser Geothermal Field in California, and in the South Meager Geothermal Project in British Columbia, Canada.
WFI Industries (WFILF.PK), is a Fort Wayne, Indiana company that develops, and manufactures geothermal heating and cooling systems, for both residential, and commercial customers. It has a P/E of 35.5.
Disclosure: The author does not own any of the above.
Wednesday, October 24, 2007
Raser Exhibits Geothermal Devlopment at California Governor's Conference-Tony Blair Discusses Climate Change
Raser Technologies was invited to Exhibit and show its Geothermal renewable enegy developments at the California Governor and First Lady's Conference in Long Beach California.
Raser displayed its low temperature technology and modular strategy to rapidly deploy and develop geothermal power plants that make power from the abundance of low and medium temperature resources throughout the west. Geothermal is one of the most environmentally friendly ways to generate power with virtually zero emissions.
Former Prime-Minister, Tony Blair was one of the keynote speakers at the conference. He said something notable regarding taking action on global warming even if we aren't completely sure yet if it is real.
Tony Blair said There has been some controversy about global warming and that he has personally spoken to some of the top scientists and he is convinced that it is real. He added, "regardless of whether you believe it is real or not, there is very little down-side to taking action. Blair added "even if we are wrong about global warming, if the world does takes action, then we will have at least reduced pollution and found better ways to live. "
"On the other hand," Blair added, "if we don't act, then we are betraying our children and future generations... and we don't have the right to do that."
Also read this background article on Governor Schwarzenegger and Tony Blair regarding global warming
Also see this background article on their global warming agreement.
Wednesday, October 17, 2007
Raser Completes Drilling Phase of Geothermal Production Well
Raser Technologies, Inc. announced recently that the Company has completed drilling on a geothermal production well in central Nevada for use in a binary-cycle geothermal power plant for generating clean, renewable electric power. Preliminary readings of well 68-04 indicate the existence of geothermal resources with promising water temperature and flow characteristics, subject to further testing and evaluation. Detailed testing for the reservoirÃs properties has now commenced with final results pending.
"We are pleased with the preliminary results of this drilling program," stated Brent M. Cook, RaserÃs CEO, "and look forward to executing on our business plan. Our initial review of the information from this well is encouraging, however precise data will not be available until further flow testing and verification can be conducted."
Read Article
Wednesday, September 5, 2007
Senate Majority Leader Harry Reid Favors Geothermal & Other Renewables over Coal
PAHRUMP -- Senate Majority Leader Harry Reid said last Wednesday that he opposes the development of three coal-fired power plants in Nevada and favors the development of nenewable energy sources such as geothermal
The senator contends that Nevada can obtain enough new power generation from renewable power such as solar, wind and geothermal resources in the form of hot underground water to supply the states growing need for energy.
In addition he said that large building owners could build combined heat and power systems that create both heat and power from a single source, he said. Consumers could take steps to reduce power consumption and install solar power systems to generate some of their needs, according to Reid's proposal.
From the Ely Times August 23, 2007.
The senator contends that Nevada can obtain enough new power generation from renewable power such as solar, wind and geothermal resources in the form of hot underground water to supply the states growing need for energy.
In addition he said that large building owners could build combined heat and power systems that create both heat and power from a single source, he said. Consumers could take steps to reduce power consumption and install solar power systems to generate some of their needs, according to Reid's proposal.
From the Ely Times August 23, 2007.
UTC Power Geothermal System Used by Raser Named R&D 100 Award Winner
SOUTH WINDSOR, Conn., July 10 /PRNewswire-UTC Power, a United Technologies company, today announced that its PureCycle(R) geothermal power system developed with United Technologies Research Center in East Hartford, Conn., has been recognized by R&D Magazine as one of the 100 most technologically significant products introduced during the past year. On April 12, 2007, UTC Power and Raser announced an long-term agreement to work together using the PureCycle geothermal systems at many of Raser's geothermal sites.
Chena Hot Springs Resort is one of the first sites to use the PureCycle system. The resort is 60 miles from Fairbanks, Alaska, and 35 miles off the power grid. It has the first geothermal power plant in Alaska and is the site of the lowest temperature geothermal resource (165 degrees Fahrenheit) ever used for commercial power generation in the world. Prior to the operation of the power plant at Chena, the lowest temperature geothermal resource ever developed for commercial power generation was 208 degrees Fahrenheit.
Geothermal systems are recognized as the most reliable form of renewable energy available because they do not depend on clear skies, windy days or rainfall. Although geothermal energy addresses many of our national concerns, its potential is largely untapped. UTC Power's PureCycle system represents an innovative advancement in geothermal energy production that offers the possibility of tapping into significant U.S. geothermal reserves for a domestic, renewable, continuously available source of power to meet our growing energy demands.
Chena Hot Springs Resort is one of the first sites to use the PureCycle system. The resort is 60 miles from Fairbanks, Alaska, and 35 miles off the power grid. It has the first geothermal power plant in Alaska and is the site of the lowest temperature geothermal resource (165 degrees Fahrenheit) ever used for commercial power generation in the world. Prior to the operation of the power plant at Chena, the lowest temperature geothermal resource ever developed for commercial power generation was 208 degrees Fahrenheit.
Geothermal systems are recognized as the most reliable form of renewable energy available because they do not depend on clear skies, windy days or rainfall. Although geothermal energy addresses many of our national concerns, its potential is largely untapped. UTC Power's PureCycle system represents an innovative advancement in geothermal energy production that offers the possibility of tapping into significant U.S. geothermal reserves for a domestic, renewable, continuously available source of power to meet our growing energy demands.
Friday, June 8, 2007
Senate Leader Harry Reid and Senators Allard and Salazar Introduce Renewable
Senators Harry Reid (D-NV), Wayne Allard (R-CO) and Ken Salazar (D-CO) introduced S. 1531, the Securing Americaís Energy Independence Act of 2007 on Friday, May 25th. The bill would, in part:
Senators Harry Reid (D-NV), Wayne Allard (R-CO) and Ken Salazar (D-CO) introduced S. 1531, the Securing Americaís Energy Independence Act of 2007 on Friday, May 25th. The bill would, in part:
• Provide a 10 percent tax credit (section 38) for geothermal exploration expenditures related to the drilling of exploratory wells for geothermal deposits;
• Extend the renewable electricity production tax credit for ten years (until 2019), and allow projects under construction at that time to qualify;
• Provide an annual volume cap for Clean Renewable Energy Bonds (CREBs) issuing authority of $1 billion for ten years (until 2019);
• Provide $300 million in zero-interest bond issuing authority for school systems in certain states (NV, AZ, UT, ID, CO, MT) to purchase and install renewable energy products and systems; and
• Permit states to use existing Industrial Development Revenue Bonds for renewable energy resource facilities.
Senators Harry Reid (D-NV), Wayne Allard (R-CO) and Ken Salazar (D-CO) introduced S. 1531, the Securing Americaís Energy Independence Act of 2007 on Friday, May 25th. The bill would, in part:
• Provide a 10 percent tax credit (section 38) for geothermal exploration expenditures related to the drilling of exploratory wells for geothermal deposits;
• Extend the renewable electricity production tax credit for ten years (until 2019), and allow projects under construction at that time to qualify;
• Provide an annual volume cap for Clean Renewable Energy Bonds (CREBs) issuing authority of $1 billion for ten years (until 2019);
• Provide $300 million in zero-interest bond issuing authority for school systems in certain states (NV, AZ, UT, ID, CO, MT) to purchase and install renewable energy products and systems; and
• Permit states to use existing Industrial Development Revenue Bonds for renewable energy resource facilities.
Monday, May 21, 2007
Utah and California Governors Team up on Global Warming
Gov. Jon M. Huntsman Jr. is teaming up with California Gov. Arnold Schwarzenegger to terminate climate change.
Schwarzenegger, a fellow GOP leader whose state is credited with waging the nation's most aggressive assault on climate change visited Utah Monday as part of a six state movement and part of a Western Region Climate Action Initiative.
"It's in line with the priorities I have for the state," Huntsman said of the Western Regional Climate Action Initiative. "Climate change is a real issue and one that we all need to get smart about."
The move comes in the weeks after a series of international reports that suggest people worldwide need to prepare for climate change and that reasonable solutions are available to address it. In the West, the effect are expected to be more and deeper droughts.
The partnership also comes a few days after Huntsman announced that Utah would join a registry developing standardized measuring tools for the greenhouse gasses blamed for climate change, tools needed when those gasses eventually face government or market-based controls.
Read Article
Friday, May 18, 2007
Geothermal Development Could Increase 55% by 2010 says Report
The US Geothermal Energy Association has released a report assessing the progress in worldwide geothermal development since 2005. The report, titled, "Update on World Geothermal Development," concludes, "Geothermal development is accelerating." According to the assessment, the number of countries producing power from geothermal resources could increase 120%, from 21 countries in 2000 to as many as 46 countries in 2010. Total geothermal capacity online could increase over 55%, from 8661 MW in 2000 to 13,500 MW or more in 2010. (Source: PR Newswire, Apr. 30, '07)
Contact: Karl Gawell, Exec. Dir. US Geothermal Energy Association, telephone: (202) 454-5264, email: karl@geo-energy.org, www.geo-energy.org. To request a copy of the report, email: research@geo-energy.org, www.geo-energy.org, www.geo-energy.org/publications/reports.asp,
Contact: Karl Gawell, Exec. Dir. US Geothermal Energy Association, telephone: (202) 454-5264, email: karl@geo-energy.org, www.geo-energy.org. To request a copy of the report, email: research@geo-energy.org, www.geo-energy.org, www.geo-energy.org/publications/reports.asp,
Friday, April 20, 2007
Raser Teams with United Technologies to Build Clean Geothermal Power Plants
Provo-based Raser Technologies announced that it will partner with United Technologies Corp. to build its first three geothermal power plants.
"We believe these types of renewable energy-producing power plants will be a significant part of the U.S. power production portfolio in the future," Brent M. Cook, Raser's chief executive officer, said in a statement Thursday. "Accelerated development of domestic geothermal resources will produce electricity in an environmentally friendly way and contribute to energy independence." Read Article
"We believe these types of renewable energy-producing power plants will be a significant part of the U.S. power production portfolio in the future," Brent M. Cook, Raser's chief executive officer, said in a statement Thursday. "Accelerated development of domestic geothermal resources will produce electricity in an environmentally friendly way and contribute to energy independence." Read Article
Friday, April 13, 2007
Southern California Edison Leading Nation's Renewable Energy with Geothermal
Southern California Edison (SCE) announced 2006 renewable energy purchases and deliveries led the nation with 7.5 billion kWh of Geothermal energy, which is over three 3 times the energy delivered by SCE from wind sources and over 12 times the amount from solar sources. read article in Morningstar
Thursday, April 12, 2007
Raser Gets Geothermal Deal With United Technologies
Shares of electric motor maker Raser Technologies Inc. soared Thursday after the company said it reached a deal to work with industrial giant United Technologies Corp. on power plants that use the earth's heat to generate electricity.Read Full Article in Forbes
Thursday, April 5, 2007
Hearing on Production Tax Credit Received Well by Committee
A recent hearing in the Senate Finance Committee titled, “Clean Energy: From the Margins to the Mainstream,” featured His Excellency John Bruton, Ambassador, European Commission Delegation; John Krenicki, President and Chief Executive Officer, General Electric Energy; Todd Raba, President, MidAmerican Energy Company (MEO), Des Moines, IA; Johan van’t Hof, Chief Executive Officer, Tonbridge Corporation, Toronto, Ontario, Canada; and Dr. Ryan H. Wiser, Scientist, Lawrence Berkeley National Laboratory, Berkeley, California.
Addressing geothermal, Raba said:
With regard to geothermal, hydro, biomass and waste-to-energy generation…these resources are more geographically limited than wind; they function as dispatchable, baseload resources, enhancing their value. Drilling new geothermal wells or upgrading existing hydro facilities to create incremental power expansions is highly capital intensive. The vast majority of these projects cannot be completed within the short placed-in-service time frames under the existing PTC legislation, thus severely limiting new investments.
MidAmerican has suggested that Congress consider allowing flexibility with regard to placed-in-service dates for projects involving baseload renewables. We believe this could be done at little budget cost if the law allows projects under construction and with output contracts in place to opt in to tax treatment that reduce the ten-year application of the PTC by a length of time equivalent to the period between date of expiration of the placed-in-service date and the completion of the project. In other words, if a project was brought on line six months after the expiration of the placed-in-service date, it could choose to receive the tax credit for only nine and on-half years instead of ten.
The better answer, though, would be a five- or ten-year extension of the PTC that would provide long-term certainty to utilities, independent project developers and manufacturers while solving the base load renewable issue.
The speakers, who focused predominantly upon wind energy, agreed across the board that a ten year extension of the production tax credit would be one of the best actions Congress could take to ensure continued renewable development. Several speakers suggested coupling the PTC with a renewable portfolio standard.
The committee responded favorably to the proposed enhancements of the PTC, both in terms of a placed in service change and also an extension of the credit. Chairman Baucus said that renewables are “more important now than they were when we last extended the credit,” Some industry insiders expect a stand-alone energy tax bill to come out of the finance committee this summer.
When Senator Baucus asked about “scaling down” the tax credit over time in order to reduce the cost to the treasury, speakers generally agreed that such action would be reasonable if a tax credit was allocated over a ten year timeframe, rather than the usual one to two year extensions. Wiser cautioned that the costs of wind energy have increased in the past four years (largely due to increases in the price of wind turbines), and so Congress should not scale down too quickly. Long term, stable policy emerged often as the most pressing need for renewable energy producers.
Transmission issues were also discussed at length, with van’t Hof speaking almost exclusively about the difficulties surrounding renewables and transmission. According to van’t Hof, the need for transmission, specifically related to renewables, is continuing to grow. Raba said the following about transmission:
Combining the remote location of most of our renewable potential with the potential with the diffuse nature of these resources, transmission becomes a disproportionately larger component of the retail cost compared to conventional resources. This situation will only grow more pronounced as we increase the amount of renewable generation, because the most cost-effective locations have already been developed.
Burton, who opened the hearing, spoke about the example some EU countries have set of using taxation to reach renewable energy goals. “Polluters must pay,” Burton said. He expressed “concern” about the growing use of coal energy around the world, and discussed the importance of sequestration activities, which, he noted, are still in the early research stage both in Europe and in America. When pressed about the “one message about renewables” he’d like to leave with Congress, he cited renewables as a “vital” part of any system dealing with electricity needs and climate change. Renewables are a necessary part, but not the only part, he said.
See Hearing Website
Addressing geothermal, Raba said:
With regard to geothermal, hydro, biomass and waste-to-energy generation…these resources are more geographically limited than wind; they function as dispatchable, baseload resources, enhancing their value. Drilling new geothermal wells or upgrading existing hydro facilities to create incremental power expansions is highly capital intensive. The vast majority of these projects cannot be completed within the short placed-in-service time frames under the existing PTC legislation, thus severely limiting new investments.
MidAmerican has suggested that Congress consider allowing flexibility with regard to placed-in-service dates for projects involving baseload renewables. We believe this could be done at little budget cost if the law allows projects under construction and with output contracts in place to opt in to tax treatment that reduce the ten-year application of the PTC by a length of time equivalent to the period between date of expiration of the placed-in-service date and the completion of the project. In other words, if a project was brought on line six months after the expiration of the placed-in-service date, it could choose to receive the tax credit for only nine and on-half years instead of ten.
The better answer, though, would be a five- or ten-year extension of the PTC that would provide long-term certainty to utilities, independent project developers and manufacturers while solving the base load renewable issue.
The speakers, who focused predominantly upon wind energy, agreed across the board that a ten year extension of the production tax credit would be one of the best actions Congress could take to ensure continued renewable development. Several speakers suggested coupling the PTC with a renewable portfolio standard.
The committee responded favorably to the proposed enhancements of the PTC, both in terms of a placed in service change and also an extension of the credit. Chairman Baucus said that renewables are “more important now than they were when we last extended the credit,” Some industry insiders expect a stand-alone energy tax bill to come out of the finance committee this summer.
When Senator Baucus asked about “scaling down” the tax credit over time in order to reduce the cost to the treasury, speakers generally agreed that such action would be reasonable if a tax credit was allocated over a ten year timeframe, rather than the usual one to two year extensions. Wiser cautioned that the costs of wind energy have increased in the past four years (largely due to increases in the price of wind turbines), and so Congress should not scale down too quickly. Long term, stable policy emerged often as the most pressing need for renewable energy producers.
Transmission issues were also discussed at length, with van’t Hof speaking almost exclusively about the difficulties surrounding renewables and transmission. According to van’t Hof, the need for transmission, specifically related to renewables, is continuing to grow. Raba said the following about transmission:
Combining the remote location of most of our renewable potential with the potential with the diffuse nature of these resources, transmission becomes a disproportionately larger component of the retail cost compared to conventional resources. This situation will only grow more pronounced as we increase the amount of renewable generation, because the most cost-effective locations have already been developed.
Burton, who opened the hearing, spoke about the example some EU countries have set of using taxation to reach renewable energy goals. “Polluters must pay,” Burton said. He expressed “concern” about the growing use of coal energy around the world, and discussed the importance of sequestration activities, which, he noted, are still in the early research stage both in Europe and in America. When pressed about the “one message about renewables” he’d like to leave with Congress, he cited renewables as a “vital” part of any system dealing with electricity needs and climate change. Renewables are a necessary part, but not the only part, he said.
See Hearing Website
Tuesday, April 3, 2007
Renewable Energy Trades, Including GEA, Call For Increased R&D Funding
Senator Menendez Seeks Support from Other Senators for Full Funding of Renewable Energy Research
"In a March 21 letter to the Chair and Ranking Member of the Subcommittee on Energy and Water Appropriations, GEA, the American Wind Energy Association, Solar Energy Industries Association, and National Hydropower Association called for increased funding for renewable energy programs in the federal FY2008 budget. Noting that each of these renewable energy technologies has the vast potential to help solve our energy and climate problems, the groups explained that robust funding for R&D is needed to accelerate adoption of these technologies and strengthen energy independence, create jobs, and provide more clean, reliable, domestic electricity generation. The groups’ request for geothermal energy is $113 million in FY 21008. The funding levels recommended for the other technologies are $250 million for solar, $22 million for hydropower, and $110 million for wind." More info...
"In the Senate, Senator Robert Menendez (D-NJ) has circulated a draft letter to Senators Dorgan and Domenici, Chairman and Ranking Minority Member of the Senate Energy and Water Appropriations Committee, respectively. The draft letter supports full funding for these renewable programs. “These programs represent critical investments for our nation’s energy future,” the letter argues, “and we respectfully urge you to fund them at robust levels.” Senator Menendez is looking for support from other Senate offices. As of last week when the letter first began circulation, Senators Wyden and Lieberman had agreed to co-sign the letter."
"In a March 21 letter to the Chair and Ranking Member of the Subcommittee on Energy and Water Appropriations, GEA, the American Wind Energy Association, Solar Energy Industries Association, and National Hydropower Association called for increased funding for renewable energy programs in the federal FY2008 budget. Noting that each of these renewable energy technologies has the vast potential to help solve our energy and climate problems, the groups explained that robust funding for R&D is needed to accelerate adoption of these technologies and strengthen energy independence, create jobs, and provide more clean, reliable, domestic electricity generation. The groups’ request for geothermal energy is $113 million in FY 21008. The funding levels recommended for the other technologies are $250 million for solar, $22 million for hydropower, and $110 million for wind." More info...
"In the Senate, Senator Robert Menendez (D-NJ) has circulated a draft letter to Senators Dorgan and Domenici, Chairman and Ranking Minority Member of the Senate Energy and Water Appropriations Committee, respectively. The draft letter supports full funding for these renewable programs. “These programs represent critical investments for our nation’s energy future,” the letter argues, “and we respectfully urge you to fund them at robust levels.” Senator Menendez is looking for support from other Senate offices. As of last week when the letter first began circulation, Senators Wyden and Lieberman had agreed to co-sign the letter."
Friday, March 30, 2007
US Senate Takes Steps to Restore DOE Geothermal Research Program
2007 Geothermal Funds Restored in Senate Appropriations Bill, $50 Million Program Included in 2008 Budget
"Today, the Senate began consideration of its version of the FY 2007 Supplemental Appropriations bill, S.965 (S. Rept 110-37). This legislation provides the funding requested by the White House to continue the Iraq War and a variety of other government programs. The Senate Appropriations Committee also included $22.7 million to fund the DOE Geothermal Program this year in the bill. (S. 965, Title III, section 3201.) Senator Majority Leader Harry Reid (D-NV) and Senator Byron Dorgan (D-ND), Chairman of the Energy and Water Appropriations Subcommittee, led the effort to restore FY 2007 funding.
Also, on Friday March 23, the Senate approved its FY 2008 budget resolution, and included in the final bill an amendment, proposed by Sen. Lisa Murkowski (R-AK), that makes room in the FY 2008 energy budget for geothermal, ocean energy and small scale hydro-electric research at the Department of Energy. The amendment provides $50 million for geothermal research and development.
On Thursday evening, Senator Lisa Murkowski told the Senate she was offering this amendment because “..the budget shortchanges three areas of great energy potential: geothermal, ocean energy and small hydro electric development.” Senator Murkowski continued, “..by this amendment I am making a clear statement that this senator wants to see money not just restored, but increased for geothermal energy research and development, and provided for research and development of all forms of ocean energy – current, tidal and wave projects -- and also for small hydroelectric developments, those that do not involving the damming of major river systems, but instead use water from lake taps, creeks or from run-of-river projects to generate power.”
The amendment was supported by Senator Reid and others, and was adopted on voice vote as part of a package of amendments to the final bill. The amendment would reverse Administration initiatives to achieve “major savings” in the federal budget by closing these two renewable research programs. The Administration proposed termination of all hydropower research in its FY 2006 budget, and termination of all geothermal research in its FY 2007 and FY 2008 budgets."
"Today, the Senate began consideration of its version of the FY 2007 Supplemental Appropriations bill, S.965 (S. Rept 110-37). This legislation provides the funding requested by the White House to continue the Iraq War and a variety of other government programs. The Senate Appropriations Committee also included $22.7 million to fund the DOE Geothermal Program this year in the bill. (S. 965, Title III, section 3201.) Senator Majority Leader Harry Reid (D-NV) and Senator Byron Dorgan (D-ND), Chairman of the Energy and Water Appropriations Subcommittee, led the effort to restore FY 2007 funding.
Also, on Friday March 23, the Senate approved its FY 2008 budget resolution, and included in the final bill an amendment, proposed by Sen. Lisa Murkowski (R-AK), that makes room in the FY 2008 energy budget for geothermal, ocean energy and small scale hydro-electric research at the Department of Energy. The amendment provides $50 million for geothermal research and development.
On Thursday evening, Senator Lisa Murkowski told the Senate she was offering this amendment because “..the budget shortchanges three areas of great energy potential: geothermal, ocean energy and small hydro electric development.” Senator Murkowski continued, “..by this amendment I am making a clear statement that this senator wants to see money not just restored, but increased for geothermal energy research and development, and provided for research and development of all forms of ocean energy – current, tidal and wave projects -- and also for small hydroelectric developments, those that do not involving the damming of major river systems, but instead use water from lake taps, creeks or from run-of-river projects to generate power.”
The amendment was supported by Senator Reid and others, and was adopted on voice vote as part of a package of amendments to the final bill. The amendment would reverse Administration initiatives to achieve “major savings” in the federal budget by closing these two renewable research programs. The Administration proposed termination of all hydropower research in its FY 2006 budget, and termination of all geothermal research in its FY 2007 and FY 2008 budgets."
Monday, March 19, 2007
The New Math of Alternative Energy
Geothermal Holds More Potential at Less Impact to Society
Now the equation is showing significant signs of change. Costs are falling for some alternative-energy sources, driven by new technology and renewed development interest. The math looks even more favorable if you consider the environmental cost of fossil fuels -- which most purely economic calculations don't.
Geothermal energy -- tapping heat deep in the Earth to generate power -- may have more potential, at less impact to society, than any of the other alternative resources. A new study on geothermal energy, produced by an interdisciplinary team at the Massachusetts Institute of Technology, found that geothermal energy could produce 10% of the nation's electricity by 2050 at prices that would be competitive with fossil fuels.
National Renewable Portfolio Standards Bill Introduced
New legislation that would require many U.S. utilities to generate 20 percent of their electricity from renewable energy resources by 2020 was introduced Thursday by Congressman Tom Udall of New Mexico. "
A renewable portfolio standard should be passed this Congress," said Alan Nogee, Union of Concerned Scientist Clean Energy Program Director. "The bill gives the American people what they asked for in the election -- a smart, cost-effective strategy to reduce our dependence on fossil fuels and get America on a track toward energy independence. And because power plants are a primary source of heat-trapping emissions, this bill can be an important part of solving global warming."
read article
Renewable geothermal energy holds promise, but it gets little attention
By Robert Gehrke
The Salt Lake Tribune
The Salt Lake Tribune
Geologists believe Utah sits on one of the prime reservoirs of geothermal energy in the United States, an energy resource that is clean, renewable, reliable and, to date, almost entirely untapped.
And, in a time when President Bush has called in his State of the Union address for an aggressive expansion of renewable energy, geothermal enjoys little support from the administration.
Last week, as other renewable energy sources were the focus of major new initiatives, Bush once again proposed eliminating the Energy Department's office focused on expanding geothermal energy. more...
Friday, March 16, 2007
Abundant Power from Universal Geothermal Energy
The answer to the world's energy needs may have been under our feet all this time, according to Jefferson Tester, professor of chemical engineering at the MIT Laboratory for Energy and the Environment. Tester says heat generated deep within the earth by the decay of naturally occurring isotopes has the potential to supply a tremendous amount of power -- thousands of times more than we now consume each year.
read more
Energy Clients Getting Green
"RENEWABLE ENERGY makes up only a small fraction of U.S. energy use — 6 percent, according to the most recent figures from the Energy Information Administration — but the buzz over renewables is huge, and the number of renewable deals being done is increasing rapidly..."
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Geothermal Advocates Go to Washington
The following presentations were given at the March 1, 2007 briefing on geothermal energy to members of the U.S. Congress. This second annual briefing was hosted by Geothermal Energy Association (GEA) and the Environmental and Energy Study Institute (EESI) and featured the following presenters:
(1) Bernie Karl, Chena Hot Springs Resort, Alaska
(2) Karl Gawell, Geothermal Energy Association (GEA)
(3) Jefferson Tester, Professor, Massachusetts Institute of Technology (MIT)
(4) Roy Mink, U.S. Geothermal Inc.*
(5) Paul Thomsen, Ormat Technologies Inc.
A Step Toward Inexpensive Geothermal Energy
Advocates call it one of the cleanest, sustainable energy resources available. However, steep construction, equipment and drilling costs have prevented more widespread development of geothermal technology. An Ohio University hydrothermal systems expert is working to change that... read article
Analysis: Cost of Clean vs. Conventional Energy
By Scott Sklar—Let us take a hypothetical 300 MW combined renewable energy plant composed equally of geothermal or microhydro/tidal, photovoltaics or concentrated solar power, and wind—all with 20-year warranted output—able to produce electricity 24 hours, 7 days per week. Now I probably can provide a combined cost including operations and maintenance over these 20 years. But now comes the challenge. Can I find a conventional technology which can provide energy, without any fuel escalation, with zero emissions, and no waste to compete against this plant? read article
Growth Forecast in Renewable Energy Markets
"Global clean-energy markets are poised to quadruple in the next decade, growing from $55.4 billion in revenues in 2006 to more than $226.5 billion by 2016 for four benchmark technologies, according to the sixth annual Clean Energy Trends report."read full report
MIT-led panel backs 'heat mining' as key U.S. energy source
A comprehensive new MIT-led study of the potential for geothermal energy within the United States has found that mining the huge amounts of heat that reside as stored thermal energy in the Earth's hard rock crust could supply a substantial portion of the electricity the United States will need in the future, probably at competitive prices and with minimal environmental impact. more...
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