The Current - August 2010
Articles In This Issue:
- Wavebob prepares to commercialize ocean-energy technology
- Natel Energy finds big potential in small hydro
- Conowingo dam boosts power generation, fish protection
- Register Today! Maryland Clean Energy Summit 2010
- Clean Energy Technology Incubator to host smart grid seminars
- Discover renewable energy opportunities in Asia
"THE CURRENT" NEWSLETTER SERIES IS MADE POSSIBLE THANKS TO PEPCO HOLDINGS INC:
Wavebob prepares to commercialize ocean-energy technology
Annapolis-based Wavebob, LLC is preparing to commercialize
its wave-energy-conversion technology and establish manufacturing operations in
Maryland. Yet company president Derek Robertson warns the United States is
wasting opportunities to become a world leader in this clean energy sector.
An Irish firm founded by physicist William Dick in 1999, Wavebob had just come through “an important transition period” when it opened its Maryland operations in 2007, Robertson said.
Its formal research and development program had benefited from government grants in Europe and investments from key industry partners. Vattenfall, the huge European utility, had forged a partnership with Wavebob and began supplying project funding and engineering support. Chevron had purchased a 7 percent equity stake in Wavebob after identifying ocean wave energy as an important component of its future energy portfolio.
Testing had proved Wavebob’s technology – a buoy structure on slack moorings that recovers useful power from the ocean as it heaves in the waves. And the company had begun deploying “advanced development models” of its floating wave-energy machines off the coast of Europe.
Wavebob executives decided to expand to the U.S. to tap the country’s expertise in engineering and commercializing large, energy installations.
“There is a lot of unique maritime technology expertise in the United States and a lot of it is born out of our defense sector,” Robertson said. “There is also a lot of critical systems engineering expertise. And in the states, that’s a recognized discipline and it is partly born out of the legacy of our aerospace and defense programs. It’s all about how do you manage a lot of complex, parallel R&D efforts and tie those into a single outcome. Europe hasn’t been driven by that discipline as much.”
Wavebob subsequently partnered with Lockheed Martin.
“They bring natural strengths to the table that we don’t have, such as their capabilities around production and sustainment of commercial systems,” Robertson said. “We’ve done well on R&D, but we’re still a small company. No matter how smart we are, we are not going to become a big manufacturing powerhouse overnight.”
Robertson predicts that Wavebob will need that manufacturing
capability within about three years. The company is working towards creating
utility-scale installations – arrays of 200-300 of Wavebob’s marine units
moored in deepwater sites and capable of generating 100-250 megawatts.
Wavebob, he added, plans to create “significant, high-end, manufacturing activity in Maryland, concentrated in some facilities here. We are also trying to grow the commercial products operational base here.”
Wavebob’s progress, however, may not produce any large-scale, ocean-energy developments off the coast of Maryland – or the U.S. – in the near future.
“We have a very difficult regulatory market for new [ocean-energy] technology in the U.S.,” Robertson said. “It’s a nightmare.
“We have myriad agencies with jurisdiction in this arena at the federal, state and local level. There is not a clear path to permitting a project. Everybody has a paradigm in which they are trying to be responsible stewards for what they are in charge of. The end result is there are a lot of good reasons not to do anything. None of the agencies are incentivized to value the wave energy resource and encourage its development.”
Governments, he argues, could resolve the problem by streamlining permitting processes, establishing reasonable requirements for environmental-impact and other studies, and creating investment tax credits to offset the expense of dealing with the current regulatory system.
Creating better policy to support wave-energy developments, however, has not been a political priority and that could have negative impacts on the country, he said.
“Regardless of all the happy talk about clean energy in
Washington, we are not getting the basics right. It is not about big, top-level
initiatives. It is about making this regulatory framework work to enable
development of new technologies,” Robertson said.
The current regulatory environment could prevent the U.S. from “developing a domestic ocean-energy market, which has significant impacts on future energy portfolios,” he said. “At the same time, we are not going to lead commercialization of these technologies for what is essentially a global market opportunity. There are few examples in which the U.S. leads an industry in which we haven’t developed our own domestic markets.”
Natel Energy finds big potential in small hydro:
At Natel Energy, Inc., a family of inventors and engineers is working to prove that even modest waterways can support viable, economical, hydropower projects.
Based in Alameda, CA, the five-year-old firm has devised a low-head, hydropower system, completed multi-year testing of its technology and already activated its first commercial installation.
Dr. Daniel J. Schneider – a physician, lifelong inventor and former principle scientist on NASA”s Sky Lab Project – invented the low-head system during the energy crisis in the 1970s. He secured funding to create a 2-kilowatt system and complete hydraulic flow tests at University of California-Davis, then attracted funding and partners to install three test systems, ranging from 2 kilowatts to 200 kilowatts, in Korea, Malaysia and California.
Test results were “incredibly promising,” showing the system functioned well for years with a low head of water, reliably generated power in changing water-flow conditions and required little maintenance or redesign, said Gia Schneider, the inventor’s daughter and now chief executive officer of Natel Energy.
But when the energy crisis ended, Daniel Schneider shelved the venture.
He didn’t work on it again until 2005 when his daughter Gia and son Abe – both Massachusetts Institute of Technology-trained engineers – approached him.
“We all sat down and said, you know, the energy crisis is back,” Gia Schneider said.
The three agreed that it was time to advance the low-head hydro technology and that together they had the skills to build Natel Energy. Gia Schneider, a chemical engineer, had spent 10 years working in the energy and renewables industries, providing strategic solutions to major energy companies as a consultant for Accenture. She had also started the carbon emissions trading desk at Credit Suisse. Abe Schneider, who became president and chief technology officer for Natel Energy, is a mechanical engineer who had spent years doing advanced product development for innovative startups, including a high-altitude, wind energy company. And Daniel Schneider would funnel his expertise into the role of inventor at Natel.
There was a hitch.
“In 2005, hydro was not on anybody’s radar and it was thought to be a tapped-out resource and not at all environmentally friendly,” Gia Schneider said. “Everybody immediately associated hydro with big dams and displacing people and killing fish. We had a big challenge around perception.”
The fledgling company also faced the daunting task of breaking into a well-establishing industry dominated by a few large companies.
But the founders of Natel Energy knew they were focusing on a clear niche.
The company’s hydropower system works in a waterway with as little as three feet of head or drop, although Schneider said he becomes economically attractive with at least five feet of head. Depending on the site conditions, the system generates a 100 percent return on investment within four to 10 years, although Natel recently priced out a system in a “very ideal” situation that is expected to completely pay for itself in 2.5 years. Natel’s ROI estimates do not factor in any tax benefits, clean energy credits or other financial incentives.
The system, Gia Schneider said, is more environmentally friendly than large-dam hydro projects. Natel’s turbines run much more slowly than conventional turbines. The blades in conventional machines rotate at approximately three to four times the water speed, she said, while Natel’s blades move at just half the water speed. The design lowers the risk of fish strikes. It also maintains enough atmospheric pressure inside the turbine to support any fish that do pass through the device.
The company installed its first commercial system last December at the Buckeye Water Conservation and Drainage District in Arizona. Operating in nine feet of head, the system currently generates 8-16 kilowatts depending on water conditions.
And the company expects to install another five commercial systems by the end of 2011.
For now, Natel Energy is focusing on power-generation opportunities in constructed waterways such as irrigation districts in the western United States.
“There are over 100,000 miles of existing canals and tens of thousands of existing structures that manage the flow of water,” Schneider said. “Many of those structures have 10-15 feet of drop. We could generate, at the low end, 50 kilowatts and, on the high end, a megawatt or more at each of those. When you think that each irrigation district has anywhere from 10 to 100 of those drops, you start to create an aggregate energy potential across the irrigation district that gets to be pretty interesting.”
But Schneider stresses there are other, extensive opportunities to create low-head hydropower projects across America, including in thousands of wastewater treatment plants, municipal water systems and other industrial water facilities.
“There are also about 80,000 existing dams in the United States and less than 3 percent of them produce power,” she said. “All across the Mid-Atlantic and the Northeast, there are lots of existing, small dams that were built as part of the industrial revolution to help power mills or for other purposes. There is a lot of modified water infrastructure and that is all energy-loading potential.”
Conowingo dam boosts power generation, fish protection
Equipment upgrades are enabling Exelon Corp. to generate more energy at the 82-year-old Conowingo dam hydropower station and create a gentler environment for fish in the process.
Exelon recently replaced the runners/turbines in seven of the 11 power-generation units at the massive facility in Darlington, MD. The old turbines had been installed when the power station was built in 1928.
“Fundamentally, the design of a turbine hasn’t changed all
that much in the intervening 80 years,” said Roberta Kankus of Exelon. “Where
the technology has changed is in allowing us to improve the efficiency. We
redesigned the turbines with computer-aided design that lets you do a little
more modeling. It lets water flow through with a little less resistance. It
doesn’t have as much turbulence. Those are the kinds of things we can simulate
with computers that engineers couldn’t calculate back then.”
The new equipment boosted Conowingo’s power generation by 60 megawatts, bringing the facility’s total power generation to 576 megawatts.
The upgrade also provided Conowingo with “aerating runners.”
“These allow us to put more air into the outflow from the dam so that it is a more fish friendly environment,” Kankus said. “In my time [with Exelon], we have worked hard to ensure that we can clearly support the environment and we try to do things in our projects that enhance the current environment.”
While Exelon does not discuss specific financials of its projects, Kankus said the equipment upgrade was also a financially attractive undertaking for the company.
Register Today!
Maryland Clean Energy Summit 2010
Seats are filling quickly for the Maryland Clean Energy Summit 2010.
Slated for October 4 at the Baltimore Hilton Inner Harbor, this gathering of thought leaders will elevate the clean energy debate in Maryland, and identify opportunities to grow businesses, create jobs, advance technology and benefit the environment.
Don’t miss your chance to meet and learn from leaders in the clean energy economy.
To learn more and register, go to www.MDCleanEnergySummit.org.
Organized by the Maryland Clean Energy Center, the summit will include presentations, panel discussions and keynote speakers focusing on:
- Challenges and opportunities for project financing
- Cutting-edge research in clean energy technologies
- Opportunities to ramp up use of solar, wind and other renewable energies
- The burgeoning industry around electric vehicles and other clean transportation systems
- Conservation potential and business opportunities in Smart Grid
- New options for biofuel production and energy from biomass
- Superior energy management in the built environment
- Policy issues for clean energy ventures
Participants will identify options, issues and action strategies to produce winning outcomes for Maryland in the clean energy economy.
Speakers at the Maryland Clean Energy Summit 2010 include experts from industry, academia and government with experience in the Mid-Atlantic, national and international energy markets. They include:
- Robbie Diamond, CEO of Securing America’s Energy Future
- Bob Noun, Executive Director of External Affairs, National Renewable Energy Laboratory
- David Walls, California Building Standards Commission and implementer of the California Green Building Standards Code.
- Elizabeth Porter, Director of Corporate Energy Initiatives at Lockheed Martin
- Kevin Madden,VP of Sales, Honeywell
- Michael Mahan, Global Product Manager of Electric Vehicle Supply Equipment at General Electric
- Katherine Hamilton, President of GridWise Alliance
- John Christmas, Senior Vice President of Hannon Armstrong, specializing in financing clean energy and energy efficiency ventures
Table space is available at the Consumer Trade Show area, which will be open and free to the public from 9 am to 9 pm.
Full day conference registration including the Awards Banquet is only $295! Tickets can also be purchased for the banquet only for $150.
To register for the Maryland Clean Energy Summit 2010, sign up for the summit’s newsletter or get more information about sponsorship opportunities, go to www.MDCleanEnergySummit.org.
Clean Energy Technology Incubator to host smart grid seminars
Maryland’s Clean Energy Technology Incubator (CETI) at bwtech at the University of Maryland Baltimore County (UMBC) will host a free seminar series this fall, exploring the challenges, opportunities and technologies involved in building a smart grid.
In mid-August, the Maryland Public Service Commission approved BGE’s smart grid proposal.
“I believe this is the beginning of Maryland becoming a leading state for smart grid activities in the U.S.,” said Bjorn Frogner, entrepreneur-in-residence at CETI.
That kind of expertise could generate new jobs and business opportunities locally. BGE predicts its smart grid project alone will support 350 direct jobs and 1,300 indirect jobs.
“I believe that the smart grid is likely to exceed the combination of all renewable energy activities – solar, wind, biofuel, etc. – in terms of jobs and investments in Maryland by the end of 2011,” Frogner said.
However, Frogner – a nuclear physicist, serial entrepreneur and veteran of Silicon Valley’s high-tech sector – added a caution: “Based on what I have seen, there currently is very little expertise in this subject in Maryland. I see California as the leader by a large margin.”
“To help change this, I am pleased to let you know that we will launch a series of seminars focused on smart grid challenges, opportunities and technologies,” Frogner said.
The first seminar – entitled A Smart Grid Perspective: Finding Value in the Collision of Energy and Information – is slated for 4-6 pm, Wednesday, September 8.
The seminar will feature Peter Kelly-Detwiler, senior vice president of energy technology services for Constellation NewEnergy, Inc. Detwiler and his company-wide team have been tasked with overseeing the integration of efficiency technologies and applications that help consumers better manage their total energy bills and create optimal energy solutions.
The seminar, which will be held in the Courtyard Conference Room at the UMBC Tech Center, will explore why a smart grid is needed, how an energy provider views the challenges and opportunities around smart grid, and how Constellation Energy is responding to smart grid prospects. The seminar will also address issues related to power grid economics, volatility, risk management, and customer perspectives.
Future seminars will feature:
- Professor Robert Broadwater of Virginia Tech on modeling the electric grid;
- Jill Sorensen of the Baltimore Electric Vehicle Initiative on challenges and opportunities created by electric cars;
- Steve Sarnecki of OSIsoft on real-time data monitoring and control for grid process applications;
- Mahi Reddy of SemaConnect on electric vehicle charging infrastructure;
- And Aaron Vigil-Martinez of the Maryland Clean Energy Center on potential funding sources for smart grid projects.
“I hope that CETI can become the center for smart grid startup activities and become a center for such expertise,” Frogner said.
To RSVP for the September 8 seminar, please e-mail bjorn.frogner@umbc.edu.
Discover renewable energy opportunities in Asia
Join a gathering of international clean energy experts to learn how American companies dealing in wind, solar, hydro and geothermal power can capture export opportunities in Asia.
On September 15, the Maryland Clean Energy Center and the Maryland-Asia Environmental Partnership will host The Global Clean Energy Race: Competing in Asia’s Renewable Energy Marketplace, a half-day forum in the organizations’ Energy and Environmental Leadership Series.
Presentations and roundtable discussions by energy industry leaders will focus on expanding participants’ knowledge of the rapidly unfolding energy markets in China, India, Vietnam and other Asian countries, and pinpointing market opportunities for Maryland companies and researchers.
Speakers will include:
- Michael Eckhart, president of the American Council on Renewable Energy
- Jean-Paul Crouzoulon, senior vice president of Areva
- Mike Adams, vice president of corporate strategy and development for Constellation Energy
- Kerinia Cusick, director of government affairs in the Mid-Atlantic for Sun Edison
- Michael Curley, founder of the International Center for Environmental Finance
- Diane Wilkins, president of Development Finance Inernational.
Discussion topics will include:
- U.S. global competitiveness in renewable energy;
- Solar technology innovations, both large- and small-scale;
- Challenges and opportunities in wind power;
- Geothermal and hydropower options;
- Viable renewable “plug-ins” to smart grid systems;
- Keys to financing renewable energy projects;
- and Asian markets and resources for renewable energy.
The world’s largest economies – including emerging Asian powers – are experiencing explosive growth in the clean energy sector. Since 2005, investment has grown 230 percent and is projected to grow by another $200 billion by the end of 2010.
The wind sector is expected to account for the largest percentage of renewable energy development in Asia. China, India, Japan and Australia combined are expected to add approximately 57,400 megawatts of new, wind capacity from 2008 to 2015.
China is also working to increase the percentage of renewable energy it uses from 7 percent of total energy consumption currently to 20 percent in 2020.
India has announced an ambitious, $70-billion program to build 20 gigawatts of solar capacity by 2022. India-watchers say the country’s market for renewable energy is about $500 million currently and is growing 15 percent per year.
The Global Clean Energy Race: Competing in Asia’s Renewable Energy Marketplace will be held 8 a.m. to 12 p.m., September 15 at the University of Maryland Baltimore County Research and Technology Park. To register or get more information, contact the Maryland-Asia Environmental Partnership at 443-275-2489 or peter.gourlay@mdaep.com, or go to www.regonline.com/builder/site/Default.aspx?eventid=875682