November 2010

 

NEWSLETTER: ENERGY UPS & DOWNS

 

Energy is one of our society’s most important challenges. Here’s an update on some of the latest news and trends. In summary: coal is up; wind is down; solar is up this year but may bust next year; Exxon’s got gas; and Americans have become more skeptical about global warming.

 

 

COAL

World coal consumption is increasing nearly 6% annually, driven largely by China, where it is increasing 10% annually. China now consumes over 40% of the world’s most polluting energy source; the U.S. consumes 14%.

 

WIND

The NY Times reported that U.S. wind power had a “lousy year”, down 72% from last year’s pace, at only 395MW, the lowest level of new wind energy installations since 2007. Advocates of wind energy blame the recession, low natural gas prices that make wind less economically competitive, and uncertainty regarding government subsidies. Wind has been the most cost-competitive renewable energy source, thus this is very bad news for everyone hoping to quickly reduce fossil fuel consumption.

Oregon became our largest producer of wind energy this year, surpassing Texas, which long held that position. Further growth of Texas wind power is hindered by transmission limitations. Most of their wind is in the western side of the state, far from major population centers—a common problem with renewable energy.

 

SOLAR

Conversely, California regulatory authorities have suddenly shifted gears and are now approving solar energy projects at “warp speed”, per the NY Times. The apparent reason for this haste is federal subsidies that are scheduled to expire. Currently, the feds will pay for 30% of solar project construction costs and will provide low-interest loans for 80% of the balance. The direct payments end this year and the loan offer expires next September, per current laws. The NY Times expressed concern that when these federal subsidies expire, new solar projects will plummet. One power company executive said “these projects are driven by public policy, not by economics”, confirming that solar is intrinsically still far more expensive than other energy sources.

 

Since late August, California has approved 7 major projects. The latest was the Calico project in the desert of San Bernardino County. This 850MW project was scaled down to 664MW to reduce its impact on desert tortoises and bighorn sheep. Calico is a solar thermal rather than a solar photovoltaic project—the sun’s rays are reflected by giant mirror arrays, heating hydrogen gas that drives an electric generator. Each of the 26,500 mirror arrays is nearly 40-feet across and tracks the sun across the sky. A slightly larger version of Calico will be built elsewhere with 28,400 mirror arrays generating 709MW. Together these two projects are budgeted to cost $4.6 billion for 3.6 billion kWh/year.

I compute that scaling up these two projects to provide all U.S. energy needs (25 trillion kWh/year) would cost $32 trillion—over $100,000 per U.S. resident—that’s about twice the estimated cost quoted in a report by solar proponents that was published in Scientific American last year.

 

CLIMATE CHANGE SKEPTICISM

The LA Times recently reported on what Americans believe about climate change and global warming. Polls show that in the last 4 years, the portion that believe there is solid scientific evidence for climate change has dropped from 79% to 59%, while those who believe humans are the cause of global warming has dropped from 50% to 34%. Some compare human-induced climate change with the much-ballyhooed Y2K disaster that never happened. It’s extremely regrettable that this very important issue has become so politicized—many scientists behaved unprofessionally and did society a great disservice.

 

POOR EXXON

Ever wonder where you gas dollars go? Exxon Mobile, the world largest public company, spent $41 billion to buy natural gas company XTO Energy. Exxon is very keen on natural gas, saying it is available, is affordable, has infrastructure already in place, produces 60% less CO2 emissions, and is abundant enough to last another 100 years. Too bad for Exxon that natural gas prices have dropped so low—guess they’ll just raise gasoline prices to cover their loss.

 

WHAT SHOULD WE DO?

Climate change and all that has become such a divisive issue that Americans may well never reach a consensus. But, I think we can all agree that we are bankrupting our economy and poisoning our planet by making energy with 19th century technology. We’re paying over $400 billion each year for foreign oil, enriching a lot of people who don’t like us. We then convert less than one-billionth of that fuel into energy and convert all the rest into pollution. We aren’t going to solve this problem by trying to force Americans to use half as much energy or pay 3 times as much for it.

 

We need science to develop far better solutions. We need new energy sources that are clean, cheap and abundant. I think LENR (Low Energy Neutron Reactions) is our best hope. LENR doesn’t require inventing any new “magic”. The theory is straightforward and so simple that it’s brilliant—most of the greatest ideas are obvious once someone else has thought of them. For about the cost of 30 minutes worth of imported oil, we can give LENR a chance to prove itself. We have so little to lose and so very much to gain.

 

Regards,

Robert

www.guidetothecosmos.com

Author of "Everyone's Guide to Atoms, Einstein, and the Universe"

and "Can Life Be Merely An Accident?"

 

 



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