Download
slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
A Call to Action: Use energy twice to profitably avert climate change PowerPoint Presentation
Download Presentation
A Call to Action: Use energy twice to profitably avert climate change

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

106 Vues Download Presentation
Télécharger la présentation

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

- - - - - - - - - - - - - - - - - - - - - - - - - - - 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