In-pipe Hydropower System Produces Clean Energy

PRESS RELEASE – January 20, 2015

The Portland Water Bureau “Put a Turbine In It” and began generating renewable energy for Portland General Electric earlier this month

The in-pipe hydropower system will generate $2 million worth of clean electricity over 20 years, in Portland, Oregon.

The new four-turbine LucidPipe™ Power System project in Portland, Oregon is the first in the U.S. to secure a 20-year Power Purchase Agreement for renewable energy from in-pipe hydropower.
The new four-turbine LucidPipe™ Power System project in Portland, Oregon is the first in the U.S. to secure a 20-year Power Purchase Agreement for renewable energy from their gravity-fed, in-pipe hydropower system. Image courtesy of LucidEnergy.

PORTLAND, Ore.–(BUSINESS WIRE)–The Portland Water Bureau (PWB) and Lucid Energy, a provider of renewable energy systems for in-pipe hydropower and smart water infrastructure, have flipped the switch, officially turning one of the city’s major water pipelines into a generator of renewable energy.

The LucidPipe™ Power System uses the gravity-fed flow of water inside a PWB pipeline to spin four 42” turbines that are now producing electricity for Portland General Electric (PGE) customers under a 20-year power purchase agreement (PPA) with the utility, helping promote renewable power development and resource diversity for Oregon.

LucidEnergy three-turbine system. Image for illustrative purposes only. Image courtesy of LucidEnergy.
LucidEnergy in-pipe hydropower system, three-turbine design. Image for illustrative purposes only. Image courtesy of LucidEnergy.

The system, which was installed at no cost to PWB or the City of Portland, is the first project in the U.S. to secure a 20-year PPA for renewable energy produced by in-pipe hydropower in a municipal water pipeline.

The Water Bureau welcomed the opportunity to explore the innovative use of a Portland pipe delivering water to create hydroelectric power as well. — Water Bureau Administrator David Shaff

The system will begin full energy production within the next two months. LucidPipe has been tested and Certified by NSF International to NSF/ANSI Standard 61 for use in potable water systems. It does not disrupt pipeline operations and has no environmental impact.

PGE’s goal is to be our customers’ partner in helping to build a reliable, affordable and sustainable energy future for Oregon.

We’re pleased to integrate new generating technologies and applications like this into our system when they offer cost-effective solutions for our customers and the environment. — Brett Sims, PGE director of origination, structuring and resource strategy

The Portland LucidPipe system was fully financed in October 2014 with capital from Harbourton Alternative Energy, a subsidiary of Harbourton Enterprises.

The Water Bureau welcomed the opportunity to explore the innovative use of a Portland pipe delivering water to create hydroelectric power as well [as delivering water].

Water and energy are closely linked. The Lucid pipe system provides a way for the Water Bureau to contribute to generating electricity for our community in a clean, low-cost and renewable way. — David Shaff, Water Bureau Administrator

The project will generate approximately $2 million worth of renewable energy capacity over the 20-year PPA period, enough electricity for more than 150 homes in Portland. The Portland Water Bureau and Harbourton will share in the revenue.

After 20 years, PWB will have the right to own the system and all the energy it produces.

Water agencies are looking for ways to be more energy efficient, energy utilities are seeking more renewable sources of energy and investors are seeking opportunities in smart water and energy infrastructure.

The industry is looking to Portland as an example of how all of these entities can partner to take advantage of in-pipe hydropower to generate investment returns and reduce the cost of delivering clean, safe drinking water. — Gregg Semler, President and CEO, Lucid Energy, Inc.

The first installation of the LucidPipe Power System is at Riverside Public Utilities in Riverside, California. Lucid Energy is currently exploring opportunities with municipalities, water agencies and renewable energy investors from around the world.

Close-up of the LucidPipe Power System turbine. Renewable energy from municipal water supply systems. Image courtesy of LucidEnergy.
Close-up of the LucidPipe™ Power System turbine. Clean, renewable energy from existing municipal water supply networks, courtesy of an in-pipe hydropower system. Image courtesy of LucidEnergy.

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Lucid Energy has secured private funding from a very active syndicate of investors including Northwest Pipe Company, the Israeli hybrid venture capital/crowdsourcing platform OurCrowd, Star Energy and the Harbourton Fund as well as more than $1 million from the U.S. Department of Energy. The funding is being used to accelerate commercialization of the LucidPipe Power System worldwide.

About Lucid Energy

Lucid Energy, Inc. is a provider of renewable energy and smart water management solutions that improve the economics of delivering water. Lucid Energy’s patented LucidPipe™ Power System enables industrial, municipal and agricultural facilities to generate clean, reliable, low-cost electricity from their gravity-fed water pipelines and effluent streams.

Lucid Energy co-developed the technology with Northwest Pipe Company (NASDAQ: NWPX), the largest manufacturer of steel water transmission pipe in the United States. www.lucidenergy.com.

Air Pollution Cost Approaches $1 trillion in the West

by John Brian Shannon
(Originally published at JBSnews.com)

Air pollution has a very real cost to our civilization via increased healthcare costs, premature deaths, lowered productivity, environmental degradation with resultant lowered crop yields, increased water consumption and higher taxation.

However, air pollution is only one cost associated with fossil fuel use.

There are three main costs associated with energy

  1. The retail price that you pay at the gas pump or on your utility bill for example
    (which is paid by consumers)
  2. The subsidy cost that governments pay energy producers and utility companies
    (which is ultimately paid by taxpayers)
  3. The externality cost of each type of energy
    (which is paid by taxpayers, by increased prices for consumers, and the impact on, or the ‘cost to’ the environment)

Externality cost in Europe and the U.S.A.

A recent report from the European Environment Agency (EEA) states that high air pollution levels (one type of externality) in the EU cost society €189 billion every year and it’s a number that increases every year. (That’s $235 billion when converted to U.S. dollars)

To put that number in some kind of context, the cost of the air pollution externality in the EU annually, is equal to the GDP of Finland.

Let’s state that even more clearly. The amount of taxation paid by EU taxpayers every year to pay for airborne fossil fuel damage is equal to Finland’s entire annual economic output!

It’s getting worse, not better, notwithstanding recent renewable energy programs and incentives. Even the admirable German Energiewende program is barely making an impact when we look at the overall EU air quality index.

“Of the 30 biggest facilities it identified as causing the most damage, 26 were power plants, mainly fueled by coal in Germany and eastern Europe.” — Barbara Lewis (Reuters)

That’s just Europe. It’s even worse in the U.S., according to a landmark Harvard University report which says coal-fired power generation (externality cost alone) costs the U.S. taxpayer over $500 billion/yr.

“Each stage in the life cycle of coal—extraction, transport, processing, and combustion—generates a waste stream and carries multiple hazards for health and the environment. These costs are external to the coal industry and thus are often considered as “externalities.”

We estimate that the life cycle effects of coal and the waste stream generated are costing the U.S. public a third to over one-half of a trillion dollars annually.

Many of these so-called externalities are, moreover, cumulative.

Accounting for the damages conservatively doubles to triples the price of electricity from coal per kWh generated, making wind, solar, and other forms of non fossil fuel power generation, along with investments in efficiency and electricity conservation methods, economically competitive.

We focus on Appalachia, though coal is mined in other regions of the United States and is burned throughout the world.” — Full Cost Accounting for the Life Cycle of Coal by Dr. Paul Epstein, the Director of Harvard Medical School Center for Health and the Global Environment, and eleven other co-authors

The report also notes that electricity costs would need to rise by another .09 to .27 cents per kilowatt hour in the U.S. to cover the externality cost of American coal-fired electricity production.

The externality cost for solar or wind power plants is zero, just for the record

Dr. Epstein and his team notes: “Coal burning produces one and a half times the CO2 emissions of oil combustion and twice that from burning natural gas (for an equal amount of energy produced).”

There’s the argument to switch from coal to natural gas right there

Also in the Harvard report in regards to the intrinsic inefficiency of coal: “Energy specialist Amory Lovins estimates that after mining, processing, transporting and burning coal, and transmitting the electricity, only about 3% of the energy in the coal is used in incandescent light bulbs.”

“…In the United States in 2005, coal produced 50% of the nation’s electricity but 81% of the CO2 emissions.

For 2030, coal is projected to produce 53% of U.S. power and 85% of the U.S. CO2 emissions from electricity generation.

None of these figures includes the additional life cycle greenhouse gas (GHG) emissions from coal, including methane from coal mines, emissions from coal transport, other GHG emissions (e.g., particulates or black carbon), and carbon and nitrous oxide (N2O) emissions from land transformation in the case of MTR coal mining.” — Harvard University’s Full Cost Accounting for the Life Cycle of Coal report

It’s not like this information is secret. All European, American, and Asian policymakers now know about the externality costs of coal vs. renewable energy. It’s just that until recently everyone thought that the cost of switching to renewable energy, was higher than the cost of fossil externalities.

It’s not only an economic problem, it’s also a health problem

“Air pollution impacts human health, resulting in extra healthcare costs, lost productivity, and fewer work days. Other impacts are reduced crop yields and building damage.

Particulate matter and ground-level ozone are two of the main pollutants that come from coal.

90% or more of Europeans living in cities are exposed to harmful air pollution. Bulgaria and Poland have some of the worst pollution of the European countries.

An estimated 400,000 premature deaths in European cities were linked to air pollution in 2011.” — CleanTechnica

Externality cost in China

Remember the Beijing Olympics where the city’s industry and commercial business were shut down to allow visitors and athletes to breathe clean air during their stay (and Wow!) look at their clear blue sky for the first time in decades. Great for tourists! Bad for Beijing business and industry, with the exception of the tourism industry (for one month) of course.

The Common Language Project reported in 2008 that premature deaths in China resulting from fossil fuel air pollution were surpassing 400,000 per year.

“China faces a number of serious environmental issues caused by overpopulation and rapid industrial growth. Water pollution and a resulting shortage of drinking water is one such issue, as is air pollution caused by an over-reliance on coal as fuel. It has been estimated that 410,000 Chinese die as a result of pollution each year.” clpmag.org

The die is cast since it is becoming common knowledge that renewable energy merely requires a small subsidy to assist with power plant construction and grid harmonization — while fossil fuels continue to require truly massive and ongoing subsidies to continue operations.

Subsidy cost of fossil fuels

Already there is talk of ending fossil fuel producer subsidies, which in 2014 will top $600 billion worldwide

Want to add up the total costs (direct economic subsidy and externality cost subsidy) of fossil fuels?

Add the $600 billion global fossil fuel subsidy to the to the $2 trillion dollars of global externality cost and you arrive at (approx) $2.5 trillion dollars per year. Then there is the more than 1 million premature deaths globally caused by air pollution. All of that is subsidized by the world’s taxpayers.

Compare that to the total costs of renewable energy. Well, for starters, the economic subsidy dollar amount for renewable energy is much less (about $100 billion per year globally) and there are no externality costs.

No deaths. No illness. No direct or related productivity loss due to a host of fossil fuel related issues (oil spills, coal car derailment, river contamination, explosions in pipelines or factories) for just a very few examples.

The fossil fuel industry is a very mature industry, it has found ways to do more with ever-fewer employees, and it gets more subsidy dollars than any other economic segment on the planet.

By comparison, the renewable energy industry is a new segment, one that requires many thousands of workers and it gets only relative handfuls of subsidy dollars. And, no externalities.

It becomes clearer every day that high carbon fossil electricity power production must be displaced by renewable energy

No longer is it some arcane moral argument that we should switch to renewables for the good of the Earth; Fossil fuel is proving to be a major factor in human illness/premature deaths, it sends our money abroad to purchase energy instead of keeping our money in our own countries, and the wholly-taxpayer-funded subsidy cost of fossil is out of control and getting worse with each passing year.

The time for dithering is past. It’s time to make the switch to renewable energy, and to start, we need to remove the worst polluting power plants from the grid (and at the very least, replace them with natural gas powered plants) or even better, replace them with hybrid wind and solar power plants.

To accomplish this, governments need to begin diverting some of the tens of billions of dollars annually paid to the fossil fuel industry to the renewable energy industry.

Germany’s Energiewende program was (and still is) an admirable first step. Once Germany has completed it’s energy transition away from oil, coal and nuclear — having replaced all of that generation capacity with renewable energy and natural gas, only then can it be hailed a complete success — and German leaders should go down in history as being instrumental in changing the world’s 21st century energy paradigm.

Dank an unsere deutschen Freunde! (With thanks to our German friends!)

If only every nation would sign-on to matching or exceeding the ongoing German example, we wouldn’t have 1 million premature deaths globally due to fossil fuel burning, we wouldn’t have almost 2 trillion dollars of externality cost, we wouldn’t need $600 billion dollars of direct subsidies for fossil fuel producers — and we would all live in a healthier environment, and our plant, animal, and aquatic life would return to their normally thriving state.

Taxes would reflect the global $2.5 trillion drop in combined fossil fuel subsidy and fossil fuel externality costs, employment stats would improve, productivity would increase, the tourism industry would receive a boost, and enjoyment of life for individuals would rebound.

It’s a truism in the energy industry that all energy is subsidized, of that there is no doubt. Even renewable energy receives tiny amounts of subsidy, relative to fossil.

But it is now apparent that over the past 100 years, getting ‘the best (energy) bang for the buck’ has been our nemesis. The energy world that we once knew, is about to change.

The world didn’t come to an end when air travel began to replace rail travel in the 1950’s. Now almost everyone travels by air, and only few travel by train.

And what about the railway investors didn’t they lose their money when the age of rail tapered-off? No, they simply moved their money to the new transportation mode and made as much or more money in the airline business.

Likewise, the world will not come to an end now that renewable energy is beginning to displace coal and oil. Investors will simply reallocate their money and make as much or more money in renewable energy.

Large Scale Job Sharing Could Prevent a Host of Societal Ills

by

Truism: Whenever and wherever the unemployment rate is low anywhere in the world, drug abuse, crime, and homelessness drops.

Jobs prevent the depression that leads to drug abuse, crime, and eventually, homelessness.

Because corporations in North America prefer a high-ish unemployment rate (to guarantee they get the choicest and hungriest applicants, and to ensure a large pool of seasonal labour, and as a device that works to continuously dampen calls for a higher minimum wage) we have the follow-on problems of depression, leading to drug abuse in some cases, which eventually leads to crime and later, homelessness for many of the working poor.

Which results in higher costs to society and it’s the taxpayers who must cover those costs, one way or another

To solve this utterly predictable set of problems, all levels of government should be working with corporations to ensure that corporate needs are met — but without destroying the lives of many people who would frankly, rather be working!

When everyone matters, society works better.

Nordic countries ask; What societal problems?

Sweden has mandatory job sharing in those industries that can’t employ all of their workers. Except for retired people, students, those with chronic illness, or the very wealthy, everyone in the country works for *at least* 6 months of the year. Which neatly prevents such societal ills.

If you’ve ever visited Sweden, you’ll notice nobody lives in dumpsters there

Nordiske-flag Image courtesy of Hansjorn
Nordic flags. Image courtesy of Hansjorn. From left; Finland, Iceland, Norway, Sweden, Denmark.

Some industries in Sweden can’t use all of their available workers, so if you’re a worker in that particular industry it simply means that you’re ‘on work’ for 6 months and you’re ‘off work’ for 6 months of the year.

The ‘alternate person’ steps in and does ‘your job’ for 6 months while you’re on mandatory time off. Both people get Unemployment Insurance (UI) from Day 1 of their respective layoff dates.

It’s not like layoffs in North America. It’s more like, “Your scheduled time ‘off work’ is coming up, Anders. So, have you arranged the dates with your temporary replacement? You have? Thank you.”

In Sweden, you ‘own’ your job, you’re responsible for it, and you want to perform well for the company that has given you the responsibility for making sure that ‘your job’ is done properly

Also, even though you’re ‘off work’ for 6 months, you’re still expected to be available to fill that position whenever the alternate worker is ill, or can’t make it to work for any other reason. You like that a lot, because their UI system doesn’t penalize you for kindly making yourself available to the company AND you get to keep the wages you earned that day.

If you’re ‘on work’ for your 6 months and suddenly want a day ‘off work’ to go buy a house, propose to your partner or whatever, you just arrange it with your job sharing partner — and you’re covered. They come in and do your work for you. You inform the company merely out of courtesy that this will be happening. It’s ‘your job’ after all — not the company’s job.

So, let’s say that you’re off work for 6 months and ‘Sven’ (the person doing your job) has a skiing accident and needs 10 days off work to recover, you not only get your regular UI payment, you also get the normal wages for each day that you replaced Sven.

In this hypothetical job sharing scenario, the job of ‘Anders’ and ‘Sven’ is totally covered no matter what, 365 days of the year

Overtime wages? Unknown in Sweden. With one phone call the company simply adds another already trained worker to the project, and can keep them employed any number of days, or until project completion. Then, they send them back home until the company calls again to help with another project.

Everyone has a job, or is on UI for part of the year. Consequently, depression, drug abuse, crime, and homelessness are almost unknown in Sweden

Everyone has a job. Whether you are ‘off work’ for a time, or ‘on work’ for a time — you have a job, you have a place in society, you belong to a community. You may work 100 days per year, you may work 200 days per year, or any number of days between 100 to 365 days per year in Sweden. It depends how busy your particular industry is in that particular year.

The takeaway point is; If you live in Sweden — you’re a worker, you’re a valued person, you’re part of Sweden’s ongoing success, you belong.

When everyone matters — corporations work better, society works better, and the UN scores your country highly on the UN Happiness Index

Corporations like this employment policy, because more employees than they can afford to keep employed year ’round ‘own’ their particular position and over the course of a year, both workers communicate often, to make certain that every single working day of the year is ‘covered’ for the company.

The company doesn’t care which of the two workers are onsite on any given day, because both are eminently qualified and both feel that they ‘own the job’ and are responsible for it. Which is much better for the corporation when compared to only one person owning that job.

What happens in a Swedish company when an employee has time off due to illness, mandatory maternity leave, vacation times, or car trouble?

Nothing. The alternate worker is likely already on the premises doing the job. Utter, boring, Swedish efficiency! Also known as the Nordic Model — a fascinating mix of social and economic policies which has shown steady, predictable results, going on four decades.

The company knows that every work day of the year, each position in the company will be filled by the regular worker or the alternate worker — no matter what!

The inequality in North America is stunning. And there’s no good excuse for it. It’s merely a lack of leadership. Governments are kowtowing to uninspired, faceless, and unaccountable corporations that only care about the bottom line.

But hey, don’t blame the corporations! They’re in business to make a buck — not to solve social problems — that’s the government’s job.

But when the corporations are the ones causing the social problems via their policy of keeping workers hungry for work through a policy of high unemployment, union-busting, threats to export jobs to Asia, downsizing threats and more — that’s when we need to look at a better model.

And in the case of Sweden and the other Nordic countries, a much better model already exists — not just for society, but one that works better for corporations as well.

Retiring old, leaky, pipelines may be our best environmental bet

by John Brian Shannon
Originally published on JBS News

Which are the most dangerous pipelines?

It’s an easy answer. Old pipelines.

Oil companies don’t advertise the first 15 years as the safest pipeline years. All bets are off after 30 years, and almost every pipeline spill in North America shows a pipeline well past 30 years of age.

One of the biggest problems contributing to leaks and ruptures is pretty simple: pipelines are getting older. More than half of the nation’s pipelines are at least 50 years old. — How Safe are America’s 2.5 Million Miles of Pipelines? published by propbulica.org

The average age of North America’s petroleum pipelines is getting older all the time (as there are few new pipelines are being built) so the existing pipeline network continues to age. But some pipelines built 30+years ago are so fragile from a maintenance perspective that they shouldn’t be allowed to transport toxic crude oil, dilbit, petroleum distillate, bunker fuel, or coal oil.

Forty-one per cent of U.S. oil pipe was built in the 1950s and 1960s; another 15 per cent of the country’s 281,000-kilometre network was built before then. In Alberta, 40 per cent of pipe was built before 1990. — Globe and Mail

How long does it take to ‘pay off’ a pipeline investment?

Depending upon the terrain a pipeline is traversing, pipelines can cost anywhere from thousands of dollars per mile up to millions of dollars per mile, especially when laying them through populated areas or under or above rivers and lakes. It can cost billions of dollars to build one pipeline.

Of course, if you want to move petroleum through a pipeline to your oil refinery, you are going to pay a significant dollar amount to transport that oil across the continent. Each oil refinery can refine up to one million barrels of oil per week. The oil refinery has only so much storage available to it on-site so it usually ships the refined product out ASAP via another pipeline system to a rail network, or direct to the customer via yet another pipeline.

U.S. petroleum pipeline map
U.S pipeline map. Toxic liquids show in red colour, while natural gas shows in blue. Image by propublica.org

After 15 years of operation, pipeline companies finally ‘break-even’ on their original investment

“Now we can finally make some money!”

Pipelines are quite costly to gain approval for from national and local regulators, to buy or lease the land, to design, build and operate. It also is the case that oil companies pay millions of dollars per year to the pipeline companies to move their liquids around. It is an annual business of billions, not millions.

We all need to make money and pass the ‘break-even’ point in our investments

We all want and need to make a return on investment (ROI) which is the reason we start businesses in the first place. But, just at the point that a pipeline has finally broken-even investment wise for its investor group, it is beginning to seep oil at the gaskets (called ‘weeping’) and also leak oil at the pump stations, and at areas where the pipeline has been disturbed by ground movement due to frost, ground settling, or earthquake movements. Some of this weeping can continue on for many years before anyone visits that remote area, which may not have been visited since the construction of the pipeline. Running toxic liquids across a continent safely, but economically, are mutually exclusive matters.

But without oil pipelines, our economy would grind to a halt within 90 days

Without pipelines, only coastal cities would be able to receive gasoline, diesel, kerosene, or other liquids used for transportation fuels, via international shipping lines. Other users of petroleum, such as chemical, plastics, and pharma companies would need to relocate to coastal areas to receive their petroleum ingredients.

It is a case of need vs. greed

  1. “We need the oil, keep it coming,” say consumers.
  2. “We need to keep our environment clean,” say a rapidly growing number of citizens/consumers.
  3. “We need to recoup our pipeline investment and make a profit in order to stay in business and we do it all for groups #1 and #2,” say the pipeline companies.

If ever there were a situation calling out for compromise, this has got to be it.

But the simple fact is, old pipelines weep plenty of oil and eventually burst, releasing tons of toxic liquids into the environment. New pipe does not burst or leak — unless it was to be hit by a derailed train, a transport truck, or an airplane crash — all of which are very unlikely events.

A mechanism for safe petroleum transport that works for all

Add a mile of new pipeline | Remove a mile of old pipeline

There are many pipeline systems that have been transporting petroleum for 30+ years in North America. These old pipes weep oil everyday. You might not see it, some of them are underground, or in wilderness areas where pipelines often traverse, or are just not accessible for viewing by the pubic or inspectors for that matter.

Some pipelines in North America are 45+ years old and they are big leakers — and just like purchasing carbon credits — one pipeline company could sell their RRR credits to another company that is ready to build a new pipeline.

It may seem odd for you to hear this solution from a renewable energy proponent; We should build more new pipelines!

What? Yes, but only if we completely remove 30+ year old pipelines on a mile-per-mile basis and remediate the soil and replant native species of plants along the historic route of the removed pipeline.

If pipeline company “A” wants to build a new pipeline, (such as Keystone II, for example) then government regulators should require that for every mile that they want to install new pipeline, the pipeline company is required to completely remove and remediate the soil and plant life, from whence an old pipeline has been removed.

This would help us to get rid of thousands of miles of old, leaking, and rusting pipelines that even the oil companies have forgotten about. They are environmental catastrophes just waiting to happen.

You can never completely empty a pipeline so they just sit there decade after decade weeping oil into the groundwater. Some old pipelines, although very leaky, are kept in place just in case of emergency so oil can be quickly diverted to the old pipeline for transport to a different junction in the system — and thereby still arrive at the oil refinery (and likely a day late and a few tens of barrels of oil short).

But that isn’t the best solution for the environment.

The best solution is easier approvals for newer and safer pipelines, contingent upon Retiring, Removing and Reclaiming (RRR) the land on the same total mileage of 30+ year old pipeline in the North American petroleum distribution network.

If Keystone II is 3500 miles of shiny new, high-tech, and state-ot-the-art pipeline, that’s great. It’s orders of magnitude less likely to leak, than 3500 miles of old pipeline.

All pipelines over 30 years old should be allowed to qualify for this removal/remediation programme. And the pipeline companies signing up for the Retire, Remove and Remediate (RRR) pipeline plan should receive tax incentives to assist in this regard. And, bonus, they can sell the land, once it is remediated.

Birth of a new industry

With the high prices of metals these days, oil and pipeline companies could find that passing the actual RRR work to another company could be the way to go. Even if the old pipe and pumps and pumphouses, etc, end up being sold for the scrap metal value, millions of tons of 30+ year old pipeline is sitting on the ground or just underground, waiting to be picked up and recycled.

Add in soil and plant remediation, and you have a whole new business model. A business where the workers could feel proud of the work they do!

“What do yo do for a living?”

Wouldn’t it be nice for an petroleum industry employee to be able to reply;

“I remove old, leaky pipelines, remediate the contaminated soil, replant the areas with native plants, and recycle millions of tons of old, leaky, pipeline metal.”

That has got to be the feelgood moment of the year for any oil company employee.

Not your typical oil company employee job description

Yet, with some executive-level decisions and with a common-sense regulatory framework, RRR could finally solve the problem of the many thousands of miles of dormant but still weeping pipelines — and spawn a whole new business model — while helping to protect our North American ecosystems that wildlife depend on.

U.S. Production Tax Credit renewal charts Wind future

by John Brian Shannon

It boils down to this. If the U.S. Production Tax Credit (PTC) is renewed by the U.S. Congress this fall, then wind power is set to boom for the next five years.

If it isn’t renewed, we can expect a few more years like 2013 where due to the uncertainty surrounding the annual PTC expiry/renewal many projects in the U.S. were shelved, resulting in a dismal 1GW of wind installations across the U.S.A. that year.

Without the PTC renewal, 2015-2020 are likely to post similar results in the U.S. for new wind installations — at a time the rest of the world is setting yearly wind power generation and installation records.

European and Chinese wind turbine manufacturers are anticipating the decision as much of their future business could flow from the United States which has huge, untapped wind reserves, both onshore and offshore.

Fossil Fuel economic subsidies

Unlike the massive subsidies and tax breaks for the fossil fuel industries, which literally go up in smoke requiring constant subsidy dollars to continue along their present business model, wind production tax credits are not spent to lower rising fuel costs. Rather, the tax favour allows more wind turbines to be built and installed, resulting in fewer fossil fuel subsidy dollars going up in smoke.

Worldwide, the fossil fuel industry receives over $550 billion dollars of subsidy and tax breaks — and the U.S. alone gives $80 billion to their domestic oil, gas, and coal industries to lower fuel costs for consumers. That’s 1/7th of the world’s total fossil fuel subsidies, right there.

Fossil Fuel externality subsidies

That doesn’t include the implied subsidy of externalities, those costs to society from fossil fuel use that are not factored into the fuel cost and are not paid for by the oil and gas, or coal industries. Everything from the acid rain that eats concrete structures like bridges, skyscrapers, some roadways and concrete sculptures, to polluted water that must be treated before it can be used, to building filtration systems to remove airborne pollutants caused by fossil fuel burning, to medical costs borne by individuals, organizations and governments, and more. The final fossil fuel externality is, of course, the millions of premature deaths worldwide caused by the ever-increasing concentrations of fossil emissions in our atmosphere.

Fossil Fuel externality cost estimated at between $40-80 per ton of CO2

The cost of fossil fuel use is estimated to be on the order of $40-80 per ton of CO2 emitted and those costs are paid, just not at the gas pump. Governments and individuals pay that price — which varies widely depending upon where you live (city, country, downwind of coal power plants, or on the coastline with its usually fresh air).

If we included the externality cost of all fossil fuels, every type of fuel would double in cost. Our coal-fired electricity would double in cost, and removing the direct subsidies would double it again. The same would occur with gasoline and diesel for our cars.

Yes, it’s a lot of money. And one way or another, we’re paying it. Don’t deceive yourself, it is being paid, just not at the gas pump nor on your electricity bill. But we are paying those subsidies and externality costs in our taxes, and in other ways such as higher health costs and lowered life expectancy resulting from our fossil fuel addiction.

Wind PTC subsidy amounts to a paltry 2.3 cents/kWh (if renewed)

None of those externalities exist for wind power. Wind has no $40-80 per ton of CO2 externality. Wind is not asking for worldwide subsidies of $550 billion, nor is it asking for American subsidies of $80 billion dollars.

Wind power in the U.S.A. is asking for a paltry 2.3 cents/kWh over a 10 year period.

The current amount of the PTC is an inflation-adjusted 2.3 cents/kWh for ten years. For use in our levelized cost analysis, we levelized its value over twenty years, the average duration of a wind energy contract. — Visualizing the Production Tax Credit for Wind Energy, Syracuse University / University of California, Irvine / University of California, Berkeley

Here is an infographic that shows some of the ways that wind power assists the U.S. economy, which was provided to us by the American Wind Energy Association (AWEA).

AWEA_Wind_Gaphic_R5
American Wind Energy Association Graphic (R5)

Wind Power jobs

As the graphic demonstrates there are many tangible benefits of wind power in the United States, not the least of which is providing jobs for Americans, attracting billions of dollars of investment, and adding new, clean electrical generation capacity to the utility grid.

Wind turbines, an additional income source for farmers

Many farmers augment their annual income by inviting utility companies to install wind turbines on their farms. While most crops produce between $150-600 per acre of land after costs are deducted, a utility company wind turbine pad rental with 24/7 access, pays approximately $4000 per acre of land, although this varies in different parts of the country. The extreme range for wind turbine installation payments appears to be $2200-6500 per acre, depending on regional wind flows and size and height of the turbine. Unfortunately for farmers, wind turbines and their towers are quite large, limiting installations to a maximum of one turbine per every few acres, depending on the size of the unit.

Windpark-Wind-Farm
By Philip May (Own work) CC-BY-SA-3.0 via Wikimedia Commons

GE Space Frame Tower

General Electric too, is awaiting the decision and has an entirely new product line ready to deploy, both in turbines with their Brilliant wind turbine technology and their truck-transportable and easily-assembled Space Frame Towers.

GE Space Frame Tower
Introduced in 2014, GE’s five-legged Space Frame Tower is covered by a plastic fabric. Image courtesy of GE.

Be sure to check out another graphic AWEA made earlier this month highlighting some of wind’s many other benefits by clicking here: http://bit.ly/1qtwHBc.

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