While General Electric announced structural changes to compensate for increased business in its energy-efficient lighting sector, BP is planning to restructure itself to emphasize…more petroleum.

Once self-dubbed "Beyond Petroleum" because of its increased focus on clean energy — and even considered to be one of the friendlier oil companies by clean energy supporters — BP is now folding its gas power and renewables division into its two exploration and refining segments. But despite the de-emphasis on renewables, it will continue to use the "Beyond Petroleum" moniker (still good for business I suppose) and build wind turbines and solar cells.

Why the change? Simple business: The company’s new CEO, Tony Hayward, is frustrated with its performance compared to rivals like ExxonMobil. While Exxon and BP produce nearly the same about of oil each day (4.2 million barrels from Exxon compared to 3.8 million from BP), the stock market "values" BP’s barrels at $59 and Exxon’s at $122. So Hayward wants to realign BP with its core mission to boost profits: find oil and gas and make it into fuel. As James Harding of the The Times (London) put it, "Mr Hayward is setting out to make BP resemble Exxon, not The Body Shop."

But is this a "brutal reality check" for clean energy supporters, as Harding opines? Or did BP never really leave its oily roots in the first place? Should we be surprised that an oil company — that commits to a hardly-a-drop-in-the-oil-bucket investment of $8 billion in the next 10 years on clean energy — goes back to emphasizing fossil fuels?

I don’t think so. But nor should we discount the fact that they are investing in wind and solar. However, I do wonder whether this restructuring also alters BP’s plan for operating in a carbon-constrained marketplace.

Back in June, Hayward addressed policymakers in Berlin about climate change and how efficient and clean technologies – combined with a price on carbon emissions — will help slow global warming. While BP is talking the talk and making some overtures to clean energy, consumers – backed by a supportive marketplace and policymakers — will still need to be the driving force behind a clean and efficient energy future.

British Petroleum
The Times
Earth2Tech

Coal and nuclear plants may not be dropping like flies, but the business climate and the planet’s climate have caused some utilities to think twice about investing in them.

Tampa Electric of Florida has announced that it won’t build a coal plant to meet future energy needs, as originally planned. The coal plant was going to be an integrated gasification combined-cycle plant, or IGCC, which means that the coal is broken down into different gases that make it easier to pull out and store the carbon dioxide (CO2) so it doesn’t get released into the atmosphere. It’s still a very expensive technology and has yet to be tested on a very large scale, but because the U.S. is so reliant on coal power, many believe sequestration is the only way to cut emissions fast enough to slow global warming.

Tampa Electric cited the uncertain future regulation of CO2, the challenge of carbon capture and sequestration, and the associated costs. Although the utility sees IGCC as playing a significant role in future energy needs, the economic risks were too high and too uncertain at this time to proceed. Instead, the utility will look at other technologies like renewables, natural gas, and efficiency. Florida has also had a slew of new clean energy laws, including limits on global warming emissions and requiring utilities to get 20 percent of their electricity from renewables.

Likewise, Xcel Energy says it can delay the need for new baseload generation in Minnesota because of its diversification into new, cleaner energy (particularly wind power and efficiency measures). Xcel argued that more hydropower from Canada — not considered “green” by many because of its destruction to native communities there — and upgrades to nuclear plants are not needed because of the aggressive energy bills passed during the last legislative session. Those laws direct Xcel to get 30 percent of its energy from renewable sources and to begin cutting energy use 1.5 percent annually beginning in 2010. Xcel’s own analysis concluded: “[C]learly there will be periods when available wind energy will supplant base-load resources to meet our customers’ energy needs.”

Diversifying our energy sources and emphasizing efficiency measures have started impacting how utilities do business and how their customers power their lives. While there is no silver bullet for a clean energy future, changes like these are all part of the “silver BB” approach to get us moving towards a smarter energy system in the 21st century.

Cross posted on Maria Energia

The Energy Blog
Wind Energy Weekly

There’s big news for solar power coming out of Florida. Florida Power & Light (FPL) – one of the nation’s largest utilities and the largest producer of wind power – announced at the Clinton Global Initiative conference that it will spend $1.5 billion to build solar thermal energy in Florida, California, and other states. In addition, the utility plans on investing nearly another billion dollars nationwide to cut carbon dioxide (CO2) emissions, a big contributor to global warming.

Solar thermal power makes electricity by converting solar energy to heat that drives a thermal power plant.

The utility’s plan is to build at least 300 megawatts (MW) of solar thermal in Florida; that’s enough electricity to power about 150,000 homes. It will also help the state reach its goal of cutting CO2 emissions to 1990 levels by 2020 and get 20 percent of its electricity from renewable sources by that same year.

California will get a 200-MW plant that will cover 2 square miles with flat mirrors that track the sun.

FPL’s CEO Lew Hay told Reuters: "The thing we’ve got to make customers understand is that any fossil fuel has a hidden cost that society is paying every day, and that is the cost of carbon. We need to put a price on carbon, by doing so the illusion that coal-produced energy is low-cost will go away."

The project FPL has planned will start out as a 10MW pilot project and eventually grow to be the largest solar plant in Florida. But besides the solar investment, the company is also upgrading all 4.5 million electricity meters used by Florida customers. The replacements will be "smart network" meters that show a digital read-out of electricity consumption, and even give an hour-by-hour record of power use. This will allow customers and businesses to monitor their energy use more closely, and experiment with the most effective methods of efficiency. Other investments will go towards promoting these efforts.

As exciting as this news is, it’s easy to feel down when you learn that FPL’s solar plans for Florida only amount to about 1 percent of the state’s power plant capacity. But clean energy supporters and FPL are still optimistic. Hay pointed out that relatively large commitments to clean energy, like FPLs, will really drive the cost of the technology down.

Already the largest wind power provider, FPL now has its sights on leading the solar market.

Associated Press, via Orlando Sentinel
Reuters, via Planet Ark

Last week China reiterated its commitment to renewable energy, particularly hydropower. The Asian nation plans to triple its hydropower production to 300,000 megawatts by 2020.

Chinese officials also asked the world to cut them some slack in their efforts to cut global warming pollution.

China’s contribution to global warming has been relatively small compared to the more developed Western nations, they argue, and they shouldn’t be held overly accountable. According to Chen Deming of the National Development and Reform Commission, "I hope the international media will give us some development rights, some development space and not overly blame us."

Wind power and biofuels, in addition to big hydro, will help China reach its goal of producing 15 percent of its energy from renewable sources by 2020. But it’s the hydropower expansion that is raising the eyebrows of some who are concerned about the large dams’ environmental impact.

Chen Deming argued that cutting carbon dioxide (CO2) emissions that contribute to global warming is more important than any negative environmental impact of huge hydropower. Other groups like Greenpeace argue that the damage caused by large dams – like the Three Gorges on the Yangtze River — could have more consequences than conventional power plants because of the massive amount of CO2 released when trees and plant life are destroyed.

AFX News, via Forbes
Associated Press, via DelawareOnline

Image: China’s Three Gorges Dam

Vestas, one of the world’s leading wind energy companies, is leaving Australia, calling the nation’s wind energy market "unviable."

Vestas Australia Wind Technology will close its 2 1/2 year-old turbine blade factory in Portland, Victoria at the end of this year. Consequently, 130 jobs will be lost. The Danish company’s Asia-Pacific senior vice president, Jorn Hammer, was quite forthcoming with his criticism of the Australian government:

"It’s not viable for us to make further investments in the Australian market…we don’t see the market as big enough in Australia to justify the expense…When we committed to build the factory we believed there was support for the wind industry in Australia, and that has not come through to the extent we anticipated.

We have the view that if the government steps up to the plate and puts the necessary security for a long-term market in place we’ll have another look at the market, but I guess we’ll be a little more careful next time…(Not) just believing in what they’ve been telling us, we need to see some hard evidence to justify investment."

Australian officials were upset with the divestment, and some pointed fingers at the Howard administration, which has been criticized in the past for moving too slowly to address climate change and implement solutions.

Vestas apparently made the ultimate decision to end its manufacturing business in Australia when it was told the government would not extend its mandatory renewable energy target (MRET) of 2 percent renewables. A spokeswoman for federal Resources Minister Ian Macfarlane told the Western Australian that Vestas knew the MRET wouldn’t be renewed even before they decided to build in Portland in the first place.

Last year, Vestas also shut down a wind turbine factory in Tasmania, laying off 65 employees.

Crossposted on Maria Energia.

The cost of doing green business in Silicon Valley could soon be increasing. The demand for renewable energy credits (RECs) is outpacing the amount of land needed to provide clean energy, and so prices for RECs may be on the rise.

The purchase of a renewable energy credit generally represents one megawatt hour of renewable energy. Although the clean electricity can’t be routed from the wind turbine directly to the business, the investment allows for more renewable energy to built and displace the energy needed from dirty fossil fuels. Many companies and individuals buy RECs in order to make up for, or “offset,” their unavoidable pollution (driving, manufacturing, etc).

In Silicon Valley, the big buyers of RECs include Cisco Systems, Applied Materials, and Yahoo!. The latter just signed up for 1.6 million kilowatt hours of green power costing $24,000 and meeting about 6.5 percent of Yahoo’s Santa Clara energy requirement. The RECs are purchased from Silicon Valley Power, the city-owned utility of Santa Clara.

The increase in REC purchases across the country – the most recent data from the Department of Energy shows sales doubling in 2005 – may affect places like Silicon Valley in the near future. Renewable energy producers will need to get more creative in their search for land for the solar power and wind power systems. Dan Kalafatas, president and Chief Operating Officer of 3 Degrees, the San Francisco-based energy marketing company from which Silicon Valley Power buys its renewable energy credits, noted, “The best sites have been tapped. The long-term fundamental demand will raise prices."

California law says that utilities have to increase their renewable energy use by 2010, so this problem isn’t going away. Efficiency will be key here: while it’s exciting that the demand for green power is increasing, running efficient businesses and households must be the first step, and will help cut the need for energy across the board.

Green Options’ Green Life Guide
San Jose Business Journal

Photo Source: National Renewable Energy Laboratory

A thought-provoking new study by the Institute for Local Self-Reliance (ILSR) has found that locally-owned renewable energy projects generally hold more local economic benefits than large-scale ones.

The “Economies and Diseconomies of Scale” concludes that bigger is not always better. The Minneapolis-based ILSR analyzed the costs and return of wind power and ethanol, both major renewable energy sources in the Upper Midwest. While they are both less expensive to produce on a large scale, the costs of having to transmit the energy across long distances can negate those savings. That, coupled with the fact that large projects are generally owned by corporate or out-of-state interests, makes smaller, local projects more beneficial for the immediate community.

ILSR recommends that states follow Minnesota’s example, where law provides a favorable tariff for locally owned renewable energy projects, requires 51 percent ownership by Minnesota residents, and designates 51 percent of financial benefits to local owners. In addition, the federal production tax credit (PTC) for wind should be changed to allow it to be taken against ordinary income rather than only applying to passive income (such as from rent). This would allow greater access to the tax credit and open it up to more individuals to be renewable energy investors.

A carbon-constrained world presents us with many options for change. Do we want to create – and is it realistic – a totally new energy system, one that is locally owned, producing energy for the local area, with the majority of economic benefits going to the local community? Or does the urgency of global warming demand as much renewable energy as possible, as fast as possible, owned by whomever possible?

Institute for Local Self-Reliance
Minneapolis Star Tribune

Australian farmers have teamed up with environmentalists to create the Agricultural Alliance on Climate Change, a group that wants to cut emissions up to 60 percent by 2050.

Although they may not agree on all environmental issues, climate change is problem that they know requires immediate action and can be slowed. Farming groups like the South Australian Farmers Federation and Agforce are on the front lines of having to adapt quickly to a changing climate and risking their livelihood in the process. Some farmers also feel that they haven’t received the recognition they deserve for fighting global warming. The Alliance acknowledged as much in a statement:

Australia is tracking close to its Kyoto target due largely to the efforts of Australian farmers reducing emissions, particularly from practices such as minimum tillage and ceasing broad-scale land-clearing, while emissions from most other sectors have continued to increase.

The group seems to be rather light on specific policy initiatives or technology recommendations, while their ultimate aims include creating “effective and sustainable economic drives” from harvesting renewable energy, providing social and physical infrastructure and services to rural Australia, and providing information and tools to rural Australians to help them prepare for some of the unavoidable impacts of climate change.

Here in the U.S., farmers have joined with clean energy organizations and traditional environmentalists to push a common agenda as well. While they may not agree when it comes to party politics, issues like clean, efficient, and homegrown energy have clearly crossed party lines in many areas.

Organizations like the 25x’25 initiative were started by farmers with a vision of 25 percent renewable energy by 2025, and farmers unions are working at all levels of government to push for policies that support local, renewable power. Wind energy and biofuels are common grounds for collaboration, as so much farm land is also in some of the most wind-rich areas of the country, and as the potential for biofuels that go (and grow) beyond corn continue to hold great promise as a clean, reliable source of fuel.

Australian Broadcasting Corporation
Australian Conservation Foundation

A recent study found that the clean energy industry is the fastest-growing sector in Massachusetts, easily beating out behemoths like financial services, healthcare, and communications.

The Massachusetts Clean Energy Census was published by the Massachusetts Technology Collaborative, a quasi-public agency that runs a renewable energy trust fund of green power projects. The study found that clean energy industry had a 26 percent increase in jobs and now accounts for more than 14,000 jobs in the state. Those jobs are expected to grow three times faster than any other major industry, adding about 3,000 jobs in 2007. The next biggest increase was in the scientific, technical, and management services sector with an increase of 5.4 percent.

Three hundred and two companies, government agencies, and university research centers responded to the survey. Those in the renewable energy category said they will increase staff by an average of 30 percent in the next 12 months, while the energy efficiency sector will add an average of 25 percent more employees.

High fossil fuels costs and venture capital funding are contributing to the strong clean energy performance, as well as politicians and a public wanting action on global warming emissions.

However, the report also points out that the industry is still very young: of the 255 companies surveyed, 103 had annual revenues of less than $1 million. Most companies focus on selling their products to other companies within New England to speed up sales cycles. But this may result in limited growth if companies are passing up opportunities in faster growing and larger markets.

Governor Deval Patrick, Senate President Therese Murray, and House Speaker Salvatore F. DiMasi agreed last month that by 2010, Massachusetts should offset all of its growth in electricity demand with increased efficiency.

The survey defined “renewable energy” as including solar power, biofuels, wind power, wave systems, solar-assisted fuel cells, and all fuel cell companies, although the study recognizes that fuel cell production may be powered by fossil fuels.

Business Journals
Climate Ark
Massachusetts Clean Energy Census

The big news this week was that the U.S. House passed an energy bill that for the first time included a federal renewable energy standard (RES). This RES – an amendment to the energy bill sponsored by Representatives Tom Udall (D-NM) and Todd Platts (R-PA) – requires utilities to get 15 percent of their power from renewables by the year 2020. Other components of the House energy bill include:

• Moving $16 billion in tax incentives away from oil companies and putting it towards renewable energy.
• New energy efficiency standards for appliances and building codes.
• The creation of a Solar Energy Industries Research and Promotion Board to raise national awareness of solar energy options. The program would be funded completely by a portion of solar industry revenues, with no appropriations authorized.
• A modified 4-year extension of the wind power Production Tax Credit (PTC) that limits the credit to 35 percent of wind project costs.

Not in the bill is an increase in the Corporate Average Fuel Economy (CAFÉ) standards (a.k.a. “fuel efficiency”) that was a hot topic as the session came to a close. By avoiding a vote on CAFE standards, Democrats avoid public in-fighting with fellow Dems from auto industry states, notably Commerce Committee Chairman John Dingell (D-MI).

The Senate already approved an increase in fuel efficiency back in June, which will be just another piece of the Senate bill to be reconciled with the House version in conference committee this fall. In addition, the White House has threatened to veto any legislation containing a renewable energy standard.

Renewable Energy Access
The Sietch Blog
Yahoo News