May 15, 2008

Global Monitor (May 2008)

From prairie grass to power

Alliant Energy Corp. and Prairie Lands Bio-Products Inc. are jointly assessing ways to create a commercially viable market for switchgrass, corn stalks, and similar agricultural products for use as fuel. The energy services provider expects that the products will constitute up to 10% of the fuel source for a proposed 630-MW hybrid plant in Marshalltown, Iowa, cutting substantially into coal burned at the facility.

Prairie Lands, a nonprofit organization whose 60 members are switchgrass growers, is evaluating potential environmental, economic, and agricultural benefits of switchgrass (a tall native North American grass used for hay and forage) and other such products. The organization is also identifying cost-effective and efficient methods to harvest, aggregate, process, and deliver alternative fuel stocks to the power plant.

The assessment will build upon successful switchgrass test-burn demonstrations conducted during the Chariton Valley Biomass Project, a 2006 venture funded by Alliant and the Department of Energy. That project investigated and demonstrated the technical feasibility, environmental benefits, and potential business viability of cultivating switchgrass to replace a portion of the coal fuel supply at a similar Iowa plant.

According to Alliant’s web site, one of the greater benefits of burning switchgrass is improved air quality due to a natural process: The plant collects CO₂ emissions during the growth process and sequesters the greenhouse gas in the ground through its roots.

Alliant supposes that a commercial project of 35 MW would require as much as 200,000 tons of biomass from 50,000 acres and that it would involve as many as 500 farmers.

The proposed plant, Sutherland Generating Station Unit 4, is expected to be operational by 2013. Alliant is considering incorporating an additional 19-MW equivalent of steam cogeneration in the project for use by nearby industries.

Renewables experience 40% growth

Clean energy powers on—and is projected to escalate exponentially—in spite of a sluggish economy. According to a new report from Clean Edge Inc., revenues for the renewables industry surged 40% in 2007, with returns for solar photovoltaics, biofuels, and wind surpassing the $20 billion mark for the first time.

Global revenues for solar photovoltaic products, wind power, biofuels, and fuel cells collectively shot up from $55 billion in 2006 to $77.3 billion in 2007. Of the four energy markets, wind power (new installation capital costs) earned the highest revenue—$30.1 billion, while the fuel cell and distributed hydrogen market, the lowest—but newest—of the four, saw returns of $1.5 billion. In 2007, $25.4 billion worth of biofuels were produced: 13 billion gallons of ethanol and 2 billon gallons of biodiesel. Solar photovoltaics, including modules, system components, and installation, totaled $20.3 billion last year, and worldwide system installations stopped just shy of 3,000 MW.

The Clean Energy Trends 2008 report projected that growth for the four sectors will more than triple over the next decade, to $254.5 billion by 2017. Global installed solar photovoltaic capacity is expected to increase eightfold to 22,760 MW, and wind power capacity is expected to reach to 75,781 MW (Figure 3).

3. Global green energy growth. Clean Edge Inc. projects considerable revenue growth for renewables over the next 10 years. Courtesy: Clean Edge Inc.

The largest growth rate is expected in the nascent fuel cell and distributed hydrogen market, which is projected to increase tenfold to $16 billion. Comparatively, the rate of growth for solar photovoltaic, wind, and biofuels is projected to slow to 13.8% annually from the 50% average sustained over the past four years.

This year, the renewables industry will see continued growth, however, with five trends contributing to it: the growing participation of overseas companies in the U.S. wind power market, a renaissance for geothermal energy, the launch of electric vehicles by small start-up companies (as opposed to large automakers), the use of clean technologies for ocean-faring ships, and the design and construction of new sustainable cities.