Smart Windows Are A High Tech Growth Area As The Energy Department Places Its Bet

March 10, 2010

Tinted windows may seem a trivial after-thought to traditional building construction. But the business opportunity in coming years is anything but dull.

The market for next generation tint-on-demand, or smart, glass is estimated at more than $3 billion. However, high costs are likely to mute annual growth until mid decade or beyond.

Tinted windows will become a $3 billion market, but costs will restrain growth until mid decade. Sage Electrochromics is preparing with a new plant.

This delay isn’t keeping suppliers from preparing for an explosive market.

Next generation tinted windows are nothing like the colored glass many people envision. These windows use sophisticated technologies – similar to ones used to make computer chips and flat-panel displays – to steer away unwanted solar heat while letting in sun light for illumination.

Estimates are that cooling costs can be cut by 25 percent and winter heating bill reduced when windows are programmed to let more heat pass. Lighting costs can drop 60 percent.

The windows are coated with electrochromic glazing, in some cases based on ceramics, that absorb infrared radiation. Some require small doses of electricity to work.

Companies such as RavenBrick, Rockwell Scientific and Gentex have the market in their sites. Last week, the Energy Department weighed in, offering a $72 million loan guarantee to competitor Sage Electrochromics of Faribault, MN. The company will use the money to build a $110 million high volume manufacturing plant next to its headquarters.

Construction is to begin this summer with production to begin at the end of 2011.

“We find ourselves in a good market environment,” says CEO John Van Dine, who has been selling limited quantities of his glass since 2003.

He says his SageGlass, which sells for $35 to $50 a square foot, is more economical for building designers than the alternative of installing larger cooling systems, exterior sunshades and interior blinds. But it isn’t yet slam-dunk cheaper.

The goal now will be to lower production costs – and watch revenue that came in at less than $10 million last year multiply.


Evidence Of Global Warming Strengthens, Say Energy Secretary Chu

March 9, 2010

Evidence of global warming continues to accumulate, says Energy Secretary Steven Chu, with dire warnings for those who ignore it.

"This is the smoking gun," says Energy Secretary Steven Chu.

New research reinforces the claim that human activities are behind the build up of CO2 and other greenhouse gases in the atmosphere, Chu said during an address at Stanford University.

“This is the smoking gun,” he said. “The carbon in the atmosphere is due to humans.”

The new research examines the types of carbon in the atmosphere and compares the ratio of carbon-14, a rare form of carbon created in the upper atmosphere, to carbon-12, formed by the burning of fossil fuels. It offers unequivocal proof, he said

Chu warned that the dangers of business as usual could be considerable. During the last ice age, average global temperatures were 6 degrees Celsius cooler than today. And yet much of Europe and North America lay under sheets of ice.

If the world continues unimpeded to burn fossil fuels, temperatures could rise 3 to 6 degrees Celsius. “Six degrees represent a profound change,” he said.

To many, the dangers of climate change seem remote because changing temperatures are difficult to measure over a span of 20 to 30 years. In recent years, for instance, temperatures seem to have reached a plateau.

But scientists looking at a 150-year period observe a rise and steeper rises will come, Chu said. The impact of the increasing CO2 “won’t be fully felt for 100 years…cause the oceans have to warm up.”

The way to fight this rise, many experts say, is to limit the use of fossil fuels by putting a price on carbon. “We will live in a carbon constrained world,” Chu agreed. It may take five years to arrive; it may take 10. “It is coming,” he said.


Steven Chu’s Top Green Technologies (Hint: No Thin Film)

March 9, 2010

Energy Secretary Steven Chu is the first to admit the nation faces a clean-energy technology gap.

"We don't have all the technolgy we need to reduce carbon by 80 percent by mid century," says Energy Secretary Steven Chu

“We don’t have all the technology we need to reduce carbon by 80 percent by mid century,” Chu said Monday. “We need better technology.”

Advancing the state of green tech is the reason he invested $80 billion of Recovery Act funds in clean-tech research, product development and generating capacity. The nation needs to prepare itself for the green economy of the 21st Century at a time when countries, such as China, are pouring in lots of money of their own.

We are falling behind in the clean-tech race,” he said during an address at Stanford University.

And yet, all is not bad news. During his address, Chu listed several technologies where the U.S. is making progress and which could have a powerful impact in the decades to come. They include:

*Utility-scale energy storage,  an important addition to the energy grid as more renewable power comes from sometimes on, sometimes off wind and solar. The best way to achieve store energy is by pumping water up a hill, says Chu. When the power is needed, water is released, driving turbines. The energy loss: just 25 percent, far better than batteries, he says.

*Offshore wind has a great deal of untapped potential, adds Chu. But maintaining turbines is difficult in a marine environment due to storms and salt water.

One encouraging step is Clipper Windpower’s work on a massive 10 MW offshore wind turbine, says Chu.

*In the solar market, the cost of solar cells has dropped by a factor of 10. But it isn’t low enough for panels to be competitive without government subsidies. That could rapidly change, says Chu. Module costs are about $2 a watt, but will drop to less than $1 by the end of the year.

The drop will help rooftop solar compete. Rooftop systems still cost $4 a watt to install, with the panels accounting for half of the bill. At $1.50 cents installed, solar becomes cost efficient without subsidies, he says.

Chu says it is not clear whether low cost thin-film cells will outsell the polysilicon cells that make up the majority of today’s market. Polysilicon cells keep making gains with efficiency.

*The transportation sector is the toughest to achieve energy improvements. Lithium ion batteries don’t have near the energy density of gasoline or diesel. Fortunately, electric motors are highly efficient.

One breath of fresh air may come from aluminum batteries, says Chu. Aluminum could help cut battery costs by a factor of 10. Suddenly all the energy required by a building could be stored in a battery the size of a room.


The US Is In Danger Of Losing The Clean Tech Race, Says Energy Secretary Chu

March 8, 2010

The United States risks losing the race to a clean-tech economy if it fails to get serious about global warming, Energy Department Secretary Steven Chu said Monday.

Taking five years or longer to pass energy legislation will limit the nation’s ability to be a leader in the green-energy technologies of tomorrow, Chu said during an address at Stanford University.

American prosperity is at stake, said Energy Secretary Steven Chu.

“I think we will lose (and) end up purchasing equipment from abroad,” he said. “The future prosperity of the United States is at risk.”

Chu used the midday speech to renew his call for an energy bill from Congress. But he also highlighted the danger more motivated countries, particularly China, pose to a complacent country.

China is spending $9 billion a month to diversify its energy production, he noted. One advanced power line project by itself will cost $88 billion over the next decade as high-efficiency high-tension wires are strung 1,200 miles from east to west. The wires will transport energy to the coastal population centers with miniscule energy losses of as little as 5 percent.

In 1996, the U.S. was the leading manufacturer of solar panels. Now its market share is below 10 percent, Chu added. “We are falling behind in the clean-energy race.”

He argued that the importance of energy legislation can’t be overstated. A properly crafted bill will set a price on carbon and a cap on permitted emissions, giving companies the clarity to begin making investments. Even a modest bill can provide an important signal to the market, he said

That Obama Administration has made the goal of energy legislation a top priority. Chu hoped to push the effort along: “I would like to have it this year.”

But the nation needs more than legislation. The Recovery Act passed at the start of the Obama Administration set aside $80 billion for clean technology development. However, many of the grants and tax credits it included have been allocated.

More money will be needed, Chu said. “We still need tens of billions of dollars at a minimum a year. The Recovery Act was a start of that.”

Chu said the future prosperity of the country hangs in the balance. So does the U.S.’s first climate change counter punch, a long awaited first blow.


BrightSource Wins $1.37B In Federal Loan Guarantees For Massive California Solar Plant

February 22, 2010

Days after scaling back a massive Mojave Desert solar plant, BrightSource said Monday it won $1.37 billion in Energy Department loan guarantees for the project.

The planned 392 MW Ivanpah solar thermal plant is among the world’s largest, with 3,500 acres of mirror arrays on three separate sites concentrating solar heat for steam generators. It is expected to nearly double the amount of solar thermal generation power generation in the U.S.

The loan guarantees, still subject to negotiation, should help BrightSource obtain financing for construction. The guarantees provide vital support for project, noted Peter Darbee, CEO of PG&E, which will purchase about two-thirds of the electricity generated by Ivanpah.

Ivanpah Valley in southern California could be the site of one of the world's larges solar plants

The plant is a key first step toward California’s ambitious renewable energy target. The state has mandated that a third of its power come from renewables by 2020.

It also appeared to spark interest in neighboring Nevada for similar solar thermal plants. “I look forward to BrightSource and other solar companies putting more Nevadans to work by building major projects like this sin Nevada very soon,” said Senator Harry Reid.

In a press release, BrightSource reaffirmed its intention to begin construction in the second half of 2010, with San Francisco-based Bechtel serving as construction engineers. The project is using soalr-powered steam turbines from Siemens on the first of the three sites. One thousand construction jobs are expected to be created.

Ten days ago, BrightSource said it would scale back the overall “footprint” to the sprawling facility by 12 percent. Environmental groups, including the Sierra Club, had worried the plant would curtail habitat for an endangered desert tortoise.

The number of towers, which collect heat from the ground mounted mirrors, were cut to three from seven.

The project is one of small number of fast-track plants earmarked by the Department of the Interior. It would be the first solar plant built in California in two decades.


Energy Dept Earmarks Another $620 Million For Smart Grids

November 24, 2009

The federal government dug into its pockets for a second round of smart grid funding, this time sending $620 million on 32 demonstration projects in 21 states.

The announcement came Tuesday from Energy Secretary Steven Chu and brings the department’s smart grid funding to more than $4 billion this year.

Steven Chu's Energy Department has now allocated more than $4 billion for smart grids

Smart grids promise energy savings and efficiencies by giving consumers greater access to information about and control over their energy use. They also hope to create more resilient electric grids capable of accepting large quantities of renewable energy from solar and wind farms.

However, fully capable smart grids are years away, with demonstration projects just getting underway.

On Tuesday, Chu said the public money will be matched with $1 billion of private funding. Sixteen of the awards, $4535 million in funds, will go to regional demonstration projects involving 50 utilities and 100 million consumers. These efforts include installing smart meters and improving the flow of information about electricity usage and power outages.

A second funding push will underwrite energy storage projects to enhance the reliability of the grid, such as advanced batteries, compressed air systems and flywheels.

Chu said smart grid technologies should be able to reduce the nation’s electricity use more than 4 percent by 2030, saving $20.4 billion.


$1 Billion More In Energy Dept Smart Grid Grants Expected Shortly, $800 Million In BioFuel Too

November 17, 2009

The Energy Department is preparing to award another $1 billion in grants to companies developing and deploying smart grid technologies.

The biofuels money will include $450 million for demonstration biorefineries, says DOE's Sanjay Wagle

The grants will be announced soon, along with another $800 million earmarked for companies converting biomass into biofuels, said Sanjay Wagle, renewable energy adviser at the Department of Energy.

Speculation is the smart grid money could be released within the next couple weeks. Already the energy department has doled out $3.4 billion in smart grid funding to 100 projects in an announcement it made late last month.

Wagle, during an appearance at the Dow Jones Alternative Energy Innovations conference in Silicon Valley, declined to say which companies would win the awards.  But he said the grants would focus on encouraging demonstration projects involving utilities and consumers. It is believed California companies may benefit from this second grant announcement more than from the first.

Included in the biofuels funding will be $450 million set aside for demonstration refineries, he said.

The two awards are among the largest grant allocation remaining from $36 billion in recovery act funding the Energy Department has been steering to new energy companies. Eighty-five percent of the funds have now been dispersed, though major loan guarantees and tax credits remain.

Wagle said three new loan guarantees have been approved, but not yet announced. The department’s first loan guarantee of $535 million went to the solar company Solyndra earlier this year.

Another dozen loan guarantee candidates are in the pipeline, he said.


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