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RED | the new


We know this is not true ... RED | the new green ... the new green 95 MW Recycled from Coke Production (Gary, ... – PowerPoint PPT presentation

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Title: RED | the new

Profitably Reducing Carbon Emissions in Maine
Presentation to Governor Baldaccis Energy
Efficiency Summit Thomas R. Casten Chairman,
Recycled Energy Development, LLC April 3, 2008
Thoughts on Global Warming
  • Global Warming threatens life as we know it.
  • Overwhelming evidence that human actions are
    causing climate change.
  • Conventional wisdom assumes energy system is
    optimal. We know this is not true
  • Electricity is protected from competition, but
    pundits assume free market principles prevail.
    We know this is not true
  • The world must improve electric generation
    efficiency to mitigate climate change

Presentation Summary Profitably Mitigating
Climate Change
  • Describe economic and environmental inefficiency
    of electric generation
  • Show how to reduce US carbon emissions by 20 and
    save 70 billion/year
  • Describe Recycled Energy Developments Approach
  • Propose Maine Actions to promote profitable
    greenhouse gas reductions

Homer Simpsons Power Plant (Springfield, ?)
Electric Generation Plant (Craig, CO)
Two-thirds of the fuels energy is vented to
Inefficient US Electric Generation
Related Headlines
Electric Generations Increasing Contribution to
Domestic CO2 Emissions
US Electric Power Sectors CO2 Emissions
US Carbon Dioxide Emissions, 2005
Breakdown of Emitting Sources
Heat Power 69 of all fossil fuel CO2
U.S. Electric System Efficiency Since 1960
End User
Power Plant
Combined Heat and Power Options
33 units Waste Energy
CHP Plant
Recycle Waste Heat
Recycling Industrial Energy Even Better
Electricity Steam Hot Water
US Energy Recycling Potential
  • EPA and DOE studies identify 200,000 megawatts
    CHP waste energy recycling potential
  • (750,000 MW US peak load)
  • Capital investment of 350 billion
  • Society could save 70 billion per year
  • Energy Recycling can profitably eliminate 20 of
    U.S. CO2 emissions (1.4 of the 7.2 gigatons)

U.S. Grid is Less Efficient than 100 Years Ago
  • 70 billion potential energy savings if U.S.
    returned to 1920s model
  • 1.4 gigaton GHG reduction/year

US Energy Recycling (CHP) Potential
  • EPA and DOE studies identify 200,000 megawatts
    CHP waste energy recycling potential
  • Capital investment of 350 billion
  • Society could save 70 billion per year
  • Profitably eliminate 1.4 gigatons of CO2
  • Many other benefits including
  • Improve manufacturing competitiveness, add jobs
  • Reduce need for transmission wires
  • Reduce vulnerability to extreme weather and
  • Improve balance of payments

Examples of Local Generation Projects that
Recycle Waste Energy
  • Projects RED and its predecessor companies have

Efficiencies of Energy Recycling Projects
95 MW Recycled from Coke Production (Gary, IN)
Silicon Production, Alloy WV
  • Plant uses 135 MW
  • 60 million investment
  • Recycles exhaust into 44 megawatts
  • Plant will use power to expand production by 20
  • We are taking silicon production back from China!

Operating Maine Projects by RED Subsidiary
  • Livermore Falls, ME
  • 2002
  • 2,980 kW
  • 4,713 tons CO2 saved annually
  • Colby College
  • Waterville, ME
  • 1998
  • 600 kW
  • 480 tons CO2 saved annually
  • Huhtamaki
  • Waterville, ME
  • 2004
  • 605 kW
  • 1,043 tons CO2 saved annually

Potential Clean Energy Project University of
Maine at Orono
  • Profitably reduce greenhouse gas emissions by
    recycling waste energy with a backpressure steam
  • The University currently generates steam at 150
    psig and distributes at 50 psig
  • A Turbosteam backpressure steam turbine could
    generate 684 kW of electricity for roughly 3
    cents per kWh and avoid 540 tons per year of
  • RED offers greater savings and emission
    reductions could by replacing oil boilers with
  • Project delayed by interconnection agreement with
    Bangor Hydro

REDs Goals with Respect to Climate Change
  • Deploy 1.5 billion to profitably reduce
    greenhouse gas emissions
  • Cause a societal tipping point, with public
    demanding removal of all barriers to efficiency
  • Change the debate from
  • Who pays to mitigate climate change? to
  • How can we induce profitable climate change

Maine Actions to Spur Profitable Carbon Reduction
  • Enact a Clean Energy Standard Offer Program
  • Allow all clean energy to qualify for Maine
    renewable portfolio standard rules
  • Remove barriers to efficiency
  • Treat clean energy projects as Pollution
    Control devices for environmental permitting

Clean Energy Standard Offer (CESOP)
  • Calculate delivered cost of electricity from best
    new base load central electric-only plant
  • Include generation and TD capital amortization,
    fuel OM, line losses, utility profits and
    expected carbon costs
  • Offer 20 year contracts for CESOP power at 80 of
    the delivered cost from the best new base load
    central station.
  • Define Clean Energy as all power plants with
    60 or better annual fossil efficiency, and
    include power from recycling waste energy
  • Contract for up to projected 10-year net load
  • Distribution utility keeps retail load, but buys
  • Distribution utility designs and installs
    interconnection to Clean Energy Projects, puts
    capital in rate base.

CESOP Advantages
  • Guarantees improved efficiency - requires 60
    overall efficiency versus 33 grid average
  • Guarantees savings contract prices 80 of
    delivered cost of new central generation
  • But calculation includes full avoided long run
    marginal costs, including transmission, line
    losses and carbon
  • Utility keeps customers and its historic profits
    from distribution of electricity
  • No standby rates to slow or discourage Clean
  • Utility manages interconnection at their expense,
    adds to rate base, just like central generation

Effects of CESOP
  • Induces power industry to build clean energy
    plants of all types
  • Government does not pick technology or fuel, just
    forces economic and environmental efficiency
  • Gives local clean energy projects benefit of low
    cost financing, comparable to financing costs of
    less efficient central plants
  • All renewable energy qualifies along with all
    projects that recycle industrial waste energy
  • Maine never builds another inefficient
    electric-only fossil fueled plant unless CESOP
    response falls short of needs.

Possible Objections to CESOP
  • Some clean energy projects will make
    extraordinary profits.
  • Public can cry all the way to the bank
  • Fossil fueled CHP could push out more expensive
    renewable projects
  • CESOP keeps economic pressure on all technologies
    to reduce costs and at least double fossil
  • The distribution utilities cannot control
  • This is a soluble technical problem, worth the
    gain in efficiency

Other Actions to Speed Clean Energy Deployment in
  • Broaden Maine RPS to all clean energy
  • Include all power from renewable energy sources
    and all power that meets clean energy
    definition in RPS and rename Clean Energy
    Portfolio Standard
  • Strengthen percentages of Clean Energy required,
    but include new power under CESOP contract
  • Treat clean energy project as a pollution
    control permit application for environmental
    approvals, greatly reducing time and cost of
    developing projects

Thank You