The Green Skeptic on Payne Nation - Blowin' in the Wind?

Charles Payne of Payne Nation

This evening I spoke with Charles Payne at Payne Nation radio about wind power, production tax credits, and the benefits of removing subsidies for all energy. And my economy song of the day is "Mind Games" by John Lennon.

Here is the show in mp3 (I start at around 10:00):

The Green Skeptic on Payne Nation

Wind Industry Just Hot Air? The Green Skeptic on FOX Business

On Tuesday I sat down with Stuart Varney & Company on FOX Business to talk about wind power and the relative merits of distributed generation versus big wind farms, including the need for transmission and grid infrastructure improvements to make big wind viable.

Here's the video:



And here's a link in case the player doesn't work in your browser: Green Skeptic on FOX Business

Cape Wind's Search for Buyers: The Green Skeptic on FOX Business

This morning I spoke with Stuart Varney and Company about the Cape Wind project.

Cape Wind is proposing America's first offshore wind farm on Horseshoe Shoal in Nantucket Sound. Miles from the nearest shore, 130 wind turbines will harness the wind to produce up to 420 megawatts of clean, renewable energy.

The developer has sealed a deal with the utility National Grid for half its power, but is still seeking a buyer for the other half.

Here is the video:



If the player doesn't work in your browser, here is a link to the video:

GS on FOX Biz

Related articles

• Wanted: Buyer for controversial Cape Wind energy (seattletimes.nwsource.com)
• Mass. offshore wind farm strives to energize sales (washingtontimes.com)
• End of Carbon Credit Market? The Green Skeptic on FOX Business (thegreenskeptic.com)
• CA Considers Feed-in-Tariff: Green Skeptic on FOX Business (thegreenskeptic.com)
• On the GreenBeat: Cape Wind hunts for customers, Honda eyes China for electric car sales (venturebeat.com)
• EPA Delays Enforcement of CO2 Emissions Regulations: The Green Skeptic on FOX Business (thegreenskeptic.com)

Two Coasts Tell Tale of Where We Are

What happened on two coasts in the US the past two weeks speaks to our energy reality. The two coasts tell us where we are.

Both events illustrate the conundrum in which we find ourselves early in the 21st Century and very early in the transition from one primary fuel source to the next.

First the good news: Consent was given by US Secretary of the Interior Ken Salazar on Wednesday for Cape Wind, the long-stalled 468 MW wind farm project off the coast of Massachusetts. The project was held up by local interests concerned about the appearance of a line of 130 wind turbines located miles off the coast in the Horseshoe Shoal area of Nantucket Sound.

The second was the explosion, sinking, and subsequent leaking of a deep water oil facility last week, which by some estimates is now spewing 5,000 barrels (200,000 gallons) a day into the Gulf of Mexico from below the ocean floor. This spill is set to threaten the Gulf Coast, just five years after Hurricane Katrina devastated that region.

One of these events represents the future of our energy production: Cleaner, renewable, and with a free resource feed stock (the wind). The other represents a variation on the past: Dirty, dangerous, and dependent upon a dwindling feed stock (fossil fuels).

What people forget, however, whether celebrating the victory or decrying the disaster, is that we are not in a position to switch from the old to the new like a light switch in the kitchen.

We are very likely going to need the old to help foster the development of the new -- and our dependence upon the old isn't going away any time soon. Furthermore, because oil is running out, we are likely to see more risky and dangerous ventures to access what's left in the immediate future.

Extracting fossil fuels is a risky and dangerous business, as we've seen with this drilling disaster and last month's coal mine disaster in West Virginia. The sooner we can foster the transition off fossil fuels and to cleaner, renewable source the better off we will be.

But let's not forget where we are in that transition: we are just at the very beginning.

2nd Annual Mid-Atlantic Cleantech Investment Forum

Cleantech interest is alive and well in the Greater Philadelphia area.

Over 380 people showed up at the Academy of Natural Sciences in Philadelphia tonight for the 2nd Annual Mid-Atlantic Cleantech Investment Forum co-presented by BlankRome and the Cleantech Alliance Mid-Atlantic.

The capacity audience heard opening keynote remarks from the Honorable C.H. "Bud" Albright, former Under Secretary of Energy and now a Senior VP for Policy and Government Affairs with CenterPoint Energy, along with an investor panel, and five presenting companies.

"I'm a policy guy," Albright opened. "And I also believe we can solve our energy problems with technology."

But, Albright continued, "those policies must be focused on the realities today and quickly get out of the way of the market. We need to let the creativity that exists develop."

Part of that reality is that fossil fuels will be around for some time to come, Albright offered, and we need transition strategies, pointing to energy efficiency and transportation fuels as the low-hanging fruit.

"The winners will be those who see the need and meet the need," said Albright.

The investor panel expressed cautious optimism about investing in the sector and a sigh of relief that 2009 was over.

"We're still going to take time to come out," said Kef Kasdin, a general partner with Battelle Ventures. "But we see some optimism in raising capital."

Mary Kay James, a managing partner with DuPont Ventures said they are seeing growth in potential new investments to the point where they are hiring staff to handle analysis.

"The most important thing to drive investment is consistency," suggested Michael Donnelly of GE Equity. "We need consistency in policy. Wind investment, for example, has been a yo-yo" because of the inconsistency of tax credits and incentives.

Michael Bevan, a managing partner at Element Partners, is experiencing higher failure rates, and has been defensive with regard to reserves. "We still have a fair amount of dry powder," Bevan said.

The five companies presenting were:

AE Polysilicon, a Fairless Hills-based manufacturer of high-purity grade polysilicon for use in crystalline silicon solar panels.

BlackGold Biofuels, the Philadelphia-based company with its first brown grease to biodiesel treatment plant now going up in San Francisco.

Community Energy, which was the leading early developer of utility scale wind power projects and markets that is now trying to do the same thing in the solar space.

FiniteCarbon, a forest development company that provides a single-source solution for creating and monetizing carbon credits.

Momentum Dynamics, the Malvern-based company developing proprietary technologies that will allow electric vehicles to be recharged wirelessly, either parked or in motion.

Several other companies exhibited, including AdaptivEnergy, ChiSage Systems, NanoPack, Netronix, Sun & Earth, and Y-Carbon.

The forum, organized in part by Tom Dwyer and Lou Rappaport from BlankRome (with help from Lorrie Scott), along with the Cleantech Alliance Mid-Atlantic, was sponsored by Fairmount Partners, Ben Franklin Technology Partners, Fesnak and Associates, PECO, Drexel's College of Engineering, Turner, the MAC Alliance and New Jersey Economic Development Authority, among others.


(Disclosure: I am co-founder of the Cleantech Alliance Mid-Atlantic, and an advisor to BlackGold Biofuels.)

Clean Energy Trends 2010: Hope Springs Eternal

Green shoots are starting to poke up out of the ground in my yard, a sure sign that Spring is on its way.

Hope springs eternal for the cleantech sector as well, according to the folks who bring us the Clean Energy Trends annual report, despite the downturn in the overall economy and failure at Copenhagen.

The 2010 report was issued today by Clean Edge Inc., a research and publishing firm devoted to the cleantech sector.

In 2009, according to the report, "combined global revenue for the three major clean-energy sectors – solar photovoltaics (PV), wind power, and biofuels – grew by 11.4 percent over 2008, reaching $139.1 billion."

These three sectors are expected to reach $325.9 billion by 2019, according to Clean Energy Trends 2010.

Venture investing in the sector declined, according to Bloomberg New Energy Finance and quoted in the report, but as a percentage of overall venture funding the sector share increased from 11.4 percent in 2008 to 12.5 percent in 2009.

Readers of The Green Skeptic will be particularly interested on the report's take on China.

China was just a minor player five years ago and now leads the race for cleantech dominance. However, according to Ron Pernick and Clint Wilder, the principal authors of the report, despite the country's surge, it is "too early to declare China the de facto winner."

"No one country or region will lead in all energy sectors," the authors reported on a conference call this morning. "China also faces significant challenges dealing with air and water pollution, and entrepreneurship is difficult there."

This last point contradicts MIT political scientist and China expert Ed Steinfeld's assertion that China is "one of the most entrepreneurial places on earth," which appeared in a Business Week article last Friday. (The article cited China's rate of self-employment far exceeds that in the U.S.—51.2 percent to 7.2 percent.)

Nevertheless, as Pernick said in an interview after today's conference call, "The challenge for China is can you build cleantech on the back of polluted air and waters?"

Their sense is that China is working on this issue simultaneously with the cleantech build-out. "And they are taking the opportunity to leapfrog where they can," Pernick said.

Key findings of the Clean Energy Trends report include:

• The global production and wholesale pricing of ethanol and biodiesel reached $44.9 billion in 2009 and is projected to grow to $112.5 billion by 2019. In 2009, the biofuel market consisted of more than 23.6 billion gallons of ethanol and biodiesel production worldwide.
• Wind power (new installation capital costs) is projected to expand from $63.5 billion in 2009 to $114.5 billion in 2019. Last year’s global wind power installations reached a record 37,500 MW. China, the first-time global leader in new installations, accounted for more than a third of new installations, with 13,000 MW
• Solar PV will grow from a $30.7 billion industry in 2009 to $98.9 billion by 2019. New installations reached almost 6 GW worldwide in 2009, a nearly sixfold increase from five years earlier. But because of rapidly declining solar PV prices, industry revenue in 2009 fell about 20 percent, from $38.5 billion in 2008.
• The global solar PV and wind power industries together currently account for a total of more than 830,000 jobs worldwide. By 2019, global industry growth will push the total to more than 3.3 million jobs.

The report also includes an IPO Watch List tracks clean-technology companies that have recently filed for IPOs, including Codexis, Fallbrook Technologies, Solyndra, and Tesla Motors, as well as other likely candidates, such as Silver Spring Networks.

Finally, the authors identify 5 key trends for the coming years:

• Carbon as a Feedstock (They cite the Khosla-backed Calera and its captured-carbon cement, which may see investment from Peabody Coal)
• Steep PV Price Drops Redefine the Solar Industry (Companies to watch include FSLR, Sharp, SunPower, Trina Solar, and MEMC Electronic Materials)
• Biomass Utilities and District Heating (Adage Biopower, District Energy St. Paul, First Energy, Viessman, and Xcel are among their comapnies and projects to watch)
• Clean-Tech Megaprojects (Masdar City has delayed its construction targets; China has apparently abandoned plans for Dongtan, a new eco-city near Shangai; although hope is on rise for two solar megaprojects in China from FSLR and eSolar);
• High Speed Rail (China leading the way again; Central Japan Railway has two maglev joint ventures in the US)

Once again, the Clean Edge guys have provided a good overview of the state of cleantech trends. This is valuable information for investors and entrepreneurs in the sector.

For more information about the Clean Energy Trends 2010 report or the other research conducted by Clean Edge, go to http://www.cleanedge.com./

(Disclosure: I hold long positions in FSLR. This post is for informational purposes only and is neither intended to be investment advice nor an offer, or the solicitation of any offer, to buy or sell any securities.)

China Tops US in New Wind Installation

In the latest indicator that China will be eating our lunch on cleantech and renewable energy, the country has now taken the lead in new wind energy installed in 2009, according to the Global Wind Energy Council.

China's 13,000 megawatts added last year led the pack. The US was second with 9,922 MW, followed by Spain at 2,459 MW, Germany at 1,917 MW and India at 1,271 MW. (See chart here)

The US held on to the top spot in cumulative wind energy capacity with 35,159 MW, or 22 percent of the world’s wind energy capacity. (See chart here.)

Germany is No. 2 in total installed capacity at 25,177 MW, or 16.3 percent; China is gaining at 25,104 MW, or 15.9 percent. Spain (19,149 MW) and India (10,926 MW) also make the top five.

I've said it before and I'll say it again: we better get our act together or all start learning Mandarin.

Source: Environmental Leader

Clean Tech: Senate Extends Renewable Energy Tax Credits

Image via WikipediaLate Tuesday afternoon the Senate voted to extend renewable energy tax credits for the wind and solar industries. The final tally: 92-3; a surprising slam dunk.

Surprising because the tax credits had been held hostage by partisan politics for much of this year and, as deadlines loomed, it didn't look good for getting it passed.

But concern on both sides of the aisle about the economy and energy forced the hand of compromise. Extending the credits now also happens to secure something on the order of 115,000 jobs and at least $19 billion in renewable energy investments.

This is a good thing and has largely gone unnoticed in all the hullabaloo around the $700B Bailout plan. And, I believe, this has the potential to have more and longer impact on the economy than Paulson's Power Play.

Why? Because this investment in the new green economy can unleash opportunities for alternative energy investors and companies, opportunities that have been waiting in the wings for too long.

The Bill, known as the Energy Improvement and Extension Act of 2008, stipulates

* $18 billion in tax credits for using wind, solar, and geothermal
energy sources.
* 30 percent tax credit for the purchase of residential, commercial, and
utility-scale solar PV systems with no cap for eight years.
* Extension of the production tax credit for wind for one year.
* Extension of tax credits for wave and ocean tidal energy.
* Qualification for residential and commercial small-scale wind and geothermal heat pumps.
* Taxpayers subject to the Alternative Minimum Tax are now eligible for the tax credit.

Removing the cap for the maximum available 30 percent tax credit is a big deal for for both residential and commercial solar project developers. The previous cap was a paltry $2,000, which doesn't go far with most solar projects.

Now financiers of larger projects are eligible to get back at least 30 percent of their investment with no cap. And those who were on hold waiting for tax credits to pass, may now be gearing up.

In addition, utilities, which heretofore were not allowed to receive solar tax credits, are now able to realize the benefits. This could increase solar spending among utilities in states requiring minimum percentages of electricity from renewable resources.

Effects of the passing of this legislation were already having an impact on solar stocks yesterday.

Now it's up to the House to polish it up and for President Bush to put his veto stamp away. He has, according to sources familiar with the situation, expressed his support for renewable energy tax credits and even the ATM provisions.

We'll see.

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Clean Tech: WSJ-NBC News Poll Suggests Americans Want it All When it Comes to Energy

US voters want solar and wind energy, but that doesn't mean they are against drilling for more oil, according to a Wall Street Journal-NBC News poll released this week. 

According to a WSJ article by Stephen Power on Thursday, "72% of respondents said developing alternative energy sources could 'accomplish a great deal.'

"When the question was asked another way, 61% of respondents chose 'developing alternative energy sources' as the step that should receive the most emphasis from policy makers."

And yet, "twenty-five percent responded that 'exploring and drilling for oil' in the U.S. should get the most emphasis, and 12% picked 'having Americans conserve and use less oil.' 

"When asked whether expanding areas for drilling for oil off coastal states was a step in the right direction, 63% said it was, with 44% saying it would accomplish 'a great deal.' Only 27% said that allowing more drilling off coastal states was a step in 'the wrong direction.' 

"Asked about building more nuclear plants, 53% said it was a step in the right direction. Thirty-one percent said it was a step 'in the wrong direction.'" 

Congress will come back to Washington in a few weeks and head into a debate about continuing alternative-energy tax credits and lifting the 27-year drilling ban off US coasts.

The poll suggests a need for a balanced approach. Hope Congress is listening.

For more on the poll: http://tinyurl.com/5cf6go

(Composed on BlackBerry; links to come; updated 8/30)