Coal is cheap.  Coal mine disasters are not.  In West Virginia on April 5th, the worst U.S. coal mining accident in 40 years came at the cost of 29 lives.  Fifteen days later the Deepwater Horizon oil drilling rig exploded and caught fire in the Gulf of Mexico.  Eleven lives were lost.  Oil rig disasters are not cheap.  In fact, lives are lost in the process of us enjoying most every economic aspect of our lives whether it is the construction of a high-rise or trucking toys to Wal-Mart. This is a dramatic way of saying that the all-in cost of every economic event is greater than the financial cost paid directly by the user. 

The cost paid by the user plus the externalized costs equals the all-in cost.  If you were to ask the residents of the Montcoal, WV, the all-in cost of coal is about $50 per ton plus the loss of their husbands, sons and fathers.  For a Louisiana shrimper the all-in cost of oil is $80 per barrel plus the loss of his income for years. 

There are externalized costs associated with every source of energy whether it is coal or solar, wind or oil, nuclear or cow dung.  The only universal reducer of externalized costs is “to consume less energy” either through energy efficiency or frugality.  As a society we will be better able to make rational decisions about energy production and use if we have a clearer vision of the externalized costs associated with the various sources of energy.

I am at odds with the climate change deniers and with the strict environmentalists.  However, I would no more attempt to change them than I would try to persuade a Red Sox fan or a Yankees fan to switch allegiance to their rival.  It just isn’t going to happen.  What the Bostonian and New Yorker have in common is their love of the game.  What I share with the climate change deniers and the strict environmentalists is a belief that there are consequences to our choices of energy sources.  Clearer information about the externalized costs of all the energy options will bring all parties closer together. 

To climate change deniers I say that it is not inconsistent for them to maintain their skepticism while at the same time embrace those changes which will encourage the shift away from fossil fuels.  Let’s give everyone the information to make decisions on an apples-to-apples (more…)

On Wednesday the second CleanTECH San Diego Showcase event: WIND POWER – Leading the Renewables Revival was held at the Marriott in La Jolla.  After the active networking session the 240 attendees heard Jim McDermott, Managing Partner of US Renewables Group, give the opening presentation followed by a panel discussion with Dr. Jim Walker, Vice Chairman, Board of enXco, Ian Gardner, CEO of Helix Wind, James Sahagian, VP for commercial development with Sempra Generation and Steven DeWolf, principal of Wind Tex Energy LP.

McDermott noted that wind power represents about 75% of the renewable energy produced in the United States.  Currently wind is a close second to natural gas for newly installed production capacity.  Like all projects which are capital intensive, wind power construction suffered with the collapse of credit markets.  Some deals are now being done, but on more conservative terms.  Key hurdles continue to be the on-again, off-again government support in the form of tax credits and loans as well as the onerous delays caused by environmentalists. 

Intermittency is the renewable energy term to describe the uneven production of power by both wind and solar.  Dr. Walker stated that as wind power becomes a larger portion of total energy production it should be considered part of the base load with natural gas as the go-to energy to fill in the gaps.  He noted that the bulk of wind energy production (more…)

The CleanTECH San Diego Showcase presents WIND POWER: Leading the Renewables Renaissance Wednesday, February 10_^th at the La Jolla Marriott.  Keynote speaker, Jim McDermott, Managing Partner of US Renewables Group, will discuss the wind market and strategies for buyers, sellers and new market entrants.  US Renewables Group is one of the largest investment firms focused exclusively on the renewable energy industry with $750 million of capital commitments.  Following Mr. McDermott’s remarks will be a panel discussion featuring regional wind developers and technology companies including Dr. Jim Walker Vice Chairman of enXco and the CEO of Helix Wind, Ian Gardner.

In addition to enXco and Helix Wind, there are 22 other wind power companies listed in CleanTECH San Diego’s database of cleantech companies include Cannon Power, Knight & Carver and Padoma Windpower. 

The networking hour before the CleanTECH San Diego Showcase is a unique opportunity to get face to face with the captains of industry, futurists, venture capitalists and propeller heads who play in the clean tech space.  Click here to make your reservation.

If San Diego County were a simple geometric shape it would be a square with sides of 65 miles.  Within those four sides the resources, both natural and man-made, the intellectual heft and techno-talent are incredible.  The effectiveness of what’s in the box is magnified by what lies beyond the perimeter.  In our case it is Imperial County and Mexico.  The economic development description of this outside-the-box-thinking is the Cali Baja Bi-National Mega-Region. 

This past week I participated in a two day Discover Imperial County tour organized by the San Diego Regional Economic Development Council.  For most of us, we rarely have any contact with the sources of our food and energy.  Food comes from an aisle at Vons and electricity from a wall plug.  Just two hours from the center of our box is a different world where every resident has an up-close view of innovative technologies which make our food and energy available and affordable. 

The Imperial Valley is an energy cornucopia.  I doubt if there is any comparable space in the world that can harvest energy from solar, geothermal, water, wind, algae, biomass and piped-in natural gas.  Their ability to add new electrical production is only tempered by the timing of construction of new transmission lines.

The first stop on our tour was at the east edge of San Diego County at the Kumeyaay wind farm on the Campo Indian Reservation.  Three square miles of tribal land adjacent to Interstate 8 are home to 25 giant Gamesa wind turbines rated at 2 megawatts each.  The winds which cross the Tecate Divide provide electricity sufficient to serve more than 12,000 homes while saving 110,000 tons of green house gas emissions annually. 

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By the numbers:  Towers 70 meters (230 feet).  Blades 41.5 meters (136 feet).  The area swept by the blades of each tower = 1 1/3 acres.   Total swept area for the 25 towers = 33 1/3 acres.  (Swept area refers to the area in square feet of the rotor. It is also called the ‘capture area’.  pi x Radius² = Area Swept by the Blades).

This evening I attended a dinner organized by the UK Trade & Investment, in conjunction with CleanTECH San Diego and Global CONNECT.  The UK Trade & Investment is the business development arm of the British government.  The evening’s theme was clean technology and renewable energy in the UK, in particular wind energy, biomass and marine energy.

Many of the story threads of the clean technology take on proportions that are almost beyond comprehension.  The UK’s role in wind energy has a plethora of gee-whiz facts. 

Airtricity, a division of Scottish and Southern Energy is developing two of the world’s larger wind farms.  One is off the Suffolk coast of England (540MW).  An onshore wind farm is located in the Upper Clyde Valley in Scotland (456MW).  Last week the British government announced grants for the construction of the largest wind turbine blades ever built.  Designed for offshore towers 574 high, each blade will be 230 feet long.  With a combined maximum sweep height of over 800 feet the wind turbines will be 300 higher than the tallest building in San Diego.  Each blade will weigh about 67,000 pounds which is equivalent to 22 Toyota Prius hatchbacks or a couple of Rolls Royce Phantoms.