1 / 34

A Call to Action: Use energy twice to profitably avert climate change

A Call to Action: Use energy twice to profitably avert climate change. Changing the way the world makes power. Thomas R. Casten, Chairman Recycled Energy Development, LLC. IDEA 100 th Anniversary June 29, 2009. The Energy/Carbon Story. The Generation Story. The Changing Rules.

stian
Download Presentation

A Call to Action: Use energy twice to profitably avert climate change

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Call to Action: Use energy twice to profitably avert climate change Changing the way the world makes power Thomas R. Casten,ChairmanRecycled Energy Development, LLC IDEA 100th Anniversary June 29, 2009 RED | the new green www.recycled-energy.com

  2. The Energy/Carbon Story The Generation Story The Changing Rules Conclusions RED | the new green - 2 - www.recycled-energy.com

  3. The history of accessto energy services • Our standard of living depends on access to energy services: • Heat, power, mechanical energy • Until recently, homo sapiens depended only on metabolic energy: 100,000 years ago: Fire tamed 10,000 years ago: Animals domesticated 5,000 years ago: Power from wind 2,000 years ago: Power from water • Recent use of ‘Ancient Sunlight’ – fossil fuel: 1760: First significant use of coal 1859: Oil discovered 1885: Natural gas first used 1909: IDEA formed to distribute thermal energy • Access to energy services allowed population to explode RED | the new green - 3 - www.recycled-energy.com

  4. World population hasgrown dramatically 1999 1987 IDEA Formed 1975 1957 1925 3 million ca. 1760:Watt’s steam engineallows coal to be used for power 1810 B.C. A.D. Source: various authors cited by the U.S. Bureau of Census RED | the new green - 4 - www.recycled-energy.com

  5. Increases in world population andenergy consumption 1850-2007 Populationup 430% Consumption per Capitaup 760% Total Consumptionup 4600% IDEA Formed Nuclear Natural Gas Oil Hydro Coal Wood Source: ArulfGrubler (1998), BP Statistical Review of World Energy (2008), US Bureau of Census (2008) RED | the new green - 5 - www.recycled-energy.com

  6. During IDEA’s first 100 years, 90% of human greenhouse gas emissions Emissions of Greenhouse Gasesfrom Fossil Fuels (cumulative, in MT CO2e) 90% GHG emissions since IDEA Formed 1979 Source: RED calculations based on data from BP Statistical Review andJ. David Hughes, Geological Survey of Canada (ret.) RED | the new green - 6 - www.recycled-energy.com

  7. Climate change is occurringfaster than predicted • Science has no experience with the rising concentrations of greenhouse gases: • Feedback effects are happening faster than predicted by any model • E.g., melting ice caps, rising sea levels, increasing ocean acidity • Growing species extinction, caused by human actions • 1,000 times the background rate RED | the new green - 7 - www.recycled-energy.com

  8. The Energy/Carbon Story The Generation Story The Changing Rules Conclusions RED | the new green - 8 - www.recycled-energy.com

  9. Electricity generation is thelargest source of CO2 emissions 50% 40% 30% % of US CO2 Emissions CO2 Emissions by theU.S. Electric Power Sector 20% 10% 0% 1950 1960 1970 1980 1990 2000 Source: RED calculations based on data from Emissions of Greenhouse Gases in the United States 2007; State Energy Data Report; and Annual Energy Review. RED | the new green - 9 - www.recycled-energy.com

  10. Inefficient heat and poweremits two-thirds of CO2 Emissions of U.S. CO2 from Fossil Fuels • Heat & power account for 69% of fossil fuel emissions • Efficiency has been flatfor 50 years Source: RED calculations based on data from the U.S. Energy Information Agencyand the U.S. Department of Transport RED | the new green - 10 - www.recycled-energy.com

  11. US electricity generation is inefficient • Wastes energy • Inflates costs • Increases pollution Inefficientgeneration U.S. Delivered Electric Efficiency Source: U.S. Energy Information Agency RED | the new green - 11 - www.recycled-energy.com

  12. Homer Simpson’s power plant Springfield, ? RED | the new green - 12 - www.recycled-energy.com

  13. Electricity generation plant Craig, CO Two-thirds ofthe energy generated is releasedinto the atmosphere RED | the new green - 13 - www.recycled-energy.com

  14. Generation efficiency –the elephant in the room “I’m right there in the roomand no one even acknowledges me” RED | the new green - 14 - www.recycled-energy.com

  15. Conventional electricity generation1960 (& 2009) Fuel 100% WasteHeat 65% Pollution WasteHeat 2% UsefulPower 33% Fuel Generation Transmission Consumption RED | the new green - 15 - www.recycled-energy.com

  16. Pollution Decentralized generation, combined heat and power IDEA Roles Fuel 100% WasteHeat 33% No LineLosses UsefulThermalEnergy33% 66% Efficient UsefulPower 33% Recycle Waste Heat Fuel Combined Heat and Power Plant • RED | the new green - 16 - www.recycled-energy.com

  17. Energy Recycling Plant Electricity Finished Goods Process Fuel Waste Energy Recycling industrial waste energy the IDEA way SavedEnergyInput Electricity Steam Hot Water End User Site RED | the new green - 17 - www.recycled-energy.com

  18. Recycling industrial waste energyCokenergyMittal Steel, Northern Indiana Produces as much clean energy each year as allgrid-connected photo-voltaic solar generation produced in 2004 RED | the new green - 18 - www.recycled-energy.com

  19. Waste energy recyclingis cost-effective Average 2008 Retail Cost All-in Cost ofClean Energy Generation*US$ per delivered MWh IDEA Role * Includes T&D, line losses, backup generation and subsidies • RED | the new green - 19 - www.recycled-energy.com

  20. Only waste energy recycling lowers the cost of avoiding CO2 emissions Cost of reducing CO2 vs. old CoalUS$ per ton IDEA Role • RED | the new green - 20 - www.recycled-energy.com

  21. Waste energy receives lowest lifetime MWh subsidies Cost of avoiding CO2 vs. old Coal US$ per ton FromTax Credits Cost of Healthcare and Environment* * Healthcare costs, calculated as average of two peer-reviewed reports released by Harvard University and the Ontario Medical Center • RED | the new green - 21 - www.recycled-energy.com

  22. Policy observations • All currently profitable low-carbon options involve recycling waste energy to increase efficiency • But; numerous policies induce or mandate high-cost low-carbon power generation, responding to vested interests • Possible unintended consequences: • Increased global CO2 emissions • Higher power prices could drive manufacturing to low cost high-carbon nations, increasing carbon emissions • Lower standard of living • Loss of jobs reduces income • IDEA mission: Push for policies that induce markets to deploy profitable clean generation options RED | the new green - 22 - www.recycled-energy.com

  23. We have proven this thesis with 200 projects ($2.0 billion)with double conventional efficiency Industrial Waste Heat Recovery 14 Projects Steam Pressure Recovery190 Projects Combined Heat & Power 56 Projects U.S. Delivered Electric Efficiency RED | the new green - 23 - www.recycled-energy.com

  24. The Energy/Carbon Story The Generation Story The Changing Rules Conclusions RED | the new green - 24 - www.recycled-energy.com

  25. Federal tax credits for clean energy If a technology is eligible for both PTC and ITC, then one of the two types of tax credit must be selected RED | the new green - 25 - www.recycled-energy.com

  26. Energy Improvement andExtension Act of 2008 • Included provisions for CHP and recycled-energy projects: • 10% investment tax credit: • Applicable to project of up to 50 megawatts • Applicable to the first 15 megawatts • Worth $1.35/MWh over project life • 5-year accelerated depreciation: RED | the new green - 26 - www.recycled-energy.com

  27. American Recovery andReinvestment Act of 2009 • Provides “refundability” for CHP tax credit • Allows “bonus depreciation” for CHP: • 50% of depreciation value can be taken in the first year • Remainder over the following four years • Allows CHP tax credits even if projects are financed with local development bonds • Allows biomass projects to claim a 30% investment tax credit • Provides some $100 billion of additional government-backed loan guarantees for clean energy projects • Offers $156 million of cost-share grants for recycled-energy, CHP, and industrial-efficiency projects RED | the new green - 27 - www.recycled-energy.com

  28. Waxman Markey bill: Housepassed Friday, June 26 2009 • Mandates GHG-emissions reduction by 83% by 2050 • Sets industrial plant energy efficiency standards • Authorizes thermal waste energy recovery awards • Mandates 20% clean energy by 2020, 8% from efficiency • Expands biomass definition to reward co-firing • Industrial rebates for GHG compliance costs • Creates a Clean Energy Deployment Administration to help finance breakthrough technologies • Allows CHP to qualify for energy saving performance contracts at federal buildings RED | the new green - 28 - www.recycled-energy.com

  29. Tax provisionsproposed for 2009 • Increase investment tax credit to 30% for highly efficient CHP and recycled energy projects • Increase the ITC’s eligibility from 15 to 25 megawatts for projects of unlimited size • Remove prohibitions against co-firing in the biomass production tax credit RED | the new green - 29 - www.recycled-energy.com

  30. Recent state innovations RED | the new green - 30 - www.recycled-energy.com

  31. The Energy/Carbon Story The Generation Story The Changing Rules Conclusions RED | the new green - 31 - www.recycled-energy.com

  32. Conclusions • IDEA has encouraged using energy twice for 100 years, • Progress inverse to fossil fuel subsidies and utility protection • Life as we know it depends on increasing energy generation efficiency, but: • Current policies largely ignore options that use energy twice • Modest recent incentives are now law, favoring efficiency, (still ignoring thermal energy) • Pending legislation is game-changing for waste energy recycling projects • Thus: RED | the new green - 32 - www.recycled-energy.com

  33. After only 100 years,IDEA’s TIME HAS COME RED | the new green

  34. Thank you RED | the new green - 34 - www.recycled-energy.com

More Related