Putting Together a Wind Project: To Do Items. February 7, 2007

Transcription

1 Putting Together a Wind Project: To Do Items Presenter Michael Reese Renville County Renewable Energy Conference February 7, 2007

2 Solar Rays and Wind The sun drives the hydrologic cycle and also drives the wind across the planet The suns rays create heat and pressure in the atmosphere and force volumes of air to move across the planet

3 Wind Energy Advantages Clean Local Least expensive renewable energy Proven technology Distributed

4 Wind Energy Disadvantages Not dispatchable or intermittent Eye pollution Noise pollution Shadow affect Foot print Non-centralized Wildlife Impacts?

5 Types of Wind Energy Development: 1. Small Wind ( kw) 2. Community Wind (500 kw 40 MW) 3. Utility Wind (40 MW 200 MW +)

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7 Nordex 1-MW Turbine

8 Steps in Wind Energy Development 1. Leadership and Professional Assistance (Complex and Long-term Project) 2. Determine Scale Community Size 3. Location Transmission access, Fatal Flaws (airports,etc) 4. Wind Resource Assessment Measure with anemometer Meteorological model 5. Pro forma Projected ROI 6. MISO Study and Approval Necessary for interconnection on to the grid Distribution vs. Transmission Size of system will determine need Work with local utility if possible

9 Steps in Wind Energy Development 7. Power Purchase Agreement Contract between wind farm and utility for sale of electricity CBED (Community Based Energy Development) 8. Business / Finance Structure Investor Owned: Minnesota Flip Structure Equity Drive / Local Ownership Publicly Owned: Bonds - CREBs Grants Levies (?) Appropriations / Others?

10 Steps in Wind Energy Development 8. Secure Capital Bond Issuance, Bank Financing, Equity Investment 9. Soil borings, turbine micro siting, permits (land use, FAA, and Department of Commerce) 10. Equipment, warranty, and construction contracts (Legal Documents and Assistance Throughout Wind Development Process) 11. Operation and maintenance contracts 12. Obtain insurance 13. Construction At minimum six months from Notice to Proceed on Turbine Supply to Final Completion 14. Turbine Oversight, Management, Financial Management 15. Plan for Dismantling and Reclaiming Land

11 Steps in Wind Energy Development Getting Started: Attend Conferences Web resources (Windustry, American Wind Energy Association, CBED.org) Organize wind farm bus tour and or local meetings Identify and hire professional assistance Wind developers, engineers, etc Make the phone calls! Will NEED Persistence, Patience, and Passion

12 What is the University of Minnesota doing to support local ownership of wind energy?

13 NWROC NCROC WCROC St. Paul SWROC SROC

14 West Central Research & Outreach Center: Strong desire to make a positive and substantial impact on the citizens of the state, especially in rural Minnesota. Conduct agricultural and rural related research and outreach. Renewable energy is a agriculture resource. University of Minnesota, Morris: Students wanted and requested renewable energy. Campus energy costs were growing rapidly. Other Stakeholder Groups: Active and willing participation by a number of people. Proactive citizens in the community and region. Desire to build on the success of the ethanol industry.

15 Goal: To develop a community-scale, integrated, production, research, and demonstration renewable energy center. Destination Renewable Energy Research & Demonstration Systems

16 Objectives: 1. Develop a renewable energy research and demonstration center focusing on wind, biomass / biofuels, and hydrogen. 2. Facilitate renewable energy projects being done by others in the region and state. 3. Provide a model for rural communities.

17 Core Systems: 1. WCROC Hybrid Wind Renewable Energy System 2. UMM Biomass Gasification System 3. WCROC Renewable Energy Research & Education Addition 4. Community Bio-gas / Bio-methane System Practical Production Systems Not Lab Scale Research and Demonstration Platforms Utilize Renewable Resources within Geographic Region Link systems on Internet to Provide Information World-wide

18 WCROC Wind Turbine: Hybrid Wind System Research tool and a functioning, production system MW Vestas V 82 Wind Turbine 5.6 million kwhr per year estimated production Direct line to the University of Minnesota Morris campus and supplies over 60 % of the campus electrical needs Thermal energy storage potential

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22 Hybrid Wind System Wind to Hydrogen Research and Demonstration Objectives: 1. Provide systems to store wind energy for base load / dispatchable / on-demand or peaking power. 2. Develop value added products and hydrogen bridge technologies from wind energy. 3. Combine these technologies, validate systems, and conduct economic analysis.

23 Hybrid Wind System: Wind To Hydrogen Project *Legislative Commission on Minnesota Resources has provided funding for Phase 1. Phase I Hydrogen & Electrical Energy Production 1. Electrolyzer 2. Storage 3. Reciprocating engine generator 4. Fuel cell(s) (Not currently funded)

24 Wind to H2-Utsira, Norway

25 Hybrid Wind System Phase II: Value Added Wind Energy & Bridge Technologies 1. Production of Anhydrous Ammonia Nitrogen fertilizer Refrigeration and other uses 2. Transportation Fuel Fleets (Government, schools, carriers, etc) Service vehicles (fork lifts, golf carts, lawn tractors) Cars and pickups

26 Hybrid Wind System Wind to Hydrogen Phase II Value Added Wind Products and Bridge Technologies

27 Projected U.S. Natural Gas Imports

28 Projected Natural Gas Prices By Sector

29 Projected Prices of Hydrogen from Wind Energy NREL, 2005 Current cost projections limit hydrogen use in electrical energy generation and as a transportation fuel.

30 Midwest Export Boundaries for Electrical Energy

31 Electrical Energy Export Boundaries (West to East) North Dakota Export Boundary (1950 MW Load Capacity)

32 North Dakota Export Boundary (1950 MW Load Capacity) Metro Area Load 3545 MW 11 County Metro Area Electrical Load

33 Electrical Generation Facilities (Over 50 MW)

34 Wind To Hydrogen To Anhydrous Ammonia History -At the turn of the 20 th Century, world food demand was outpacing organic nitrogen supply. Nitrogen is the most limiting nutrient in cultivated crops. -Companies and academic institutions around the world explored synthetic nitrogen fertilizer production.

35 Norway s Hydrogen History

36 Norsk Hydro: Company Profile: Norwegian Energy and Aluminum Company $25 Billion in annual sales 36,000 Employees History: Began by producing anhydrous ammonia from hydro electric dams in 1920 s initially with plasma technology and then switching to Haber Bosch technology. Grew to become the world s largest nitrogen fertilizer company in the world until spinning off fertilizer division in Producing hydrogen and nitrogen from hydroelectric energy is a proven technology.

37 Drivers for Wind to H2 to Ammonia: 1. High wind resource in conjunction with low capacity of the transmission grid. 2. A high local demand for ammonia (N fertilizer) with accompanying storage capacity/ handling infrastructure. 3. High cost of ammonia due to rising natural gas prices. 4. Success of Farmer-owned Ethanol Plants -Economic Development -Experience -Proven Model

38 Drivers for Wind to H2 to Ammonia: 5. Increasing public will to move towards energy independence, clean energy, and a hydrogen economy. 6. Minnesota s industry and business portfolio with companies strong in fuel cell components. 7. No requirement for MISO Study and Approval and for a utility Power Purchase Agreement The two largest bottlenecks for wind energy development. 8. Minnesota becomes a national leader in renewable hydrogen production and receives technology dividend! 9. Protects and secures domestic biofuels industry.

39 Electrical Energy Use in the United States

40 U.S. Wind Resource Map

41 Largest Volume of Corn Production & Anhydrous Ammonia Demand

42 High supply of wind energy and high demand for ammonia High wind resource region Highest corn production and fertilizer usage region

43 Ethanol Plant Locations and Export Boundaries

44 Potential / Best Bet Locations for NH3 Plants (Tentative) North Dakota Export Boundary (1950 MW Load Capacity)

45 Hydrogen Bus and Fueling Station - Iceland

46 Hydrogen Highways The Northern H Upper Midwest Hydrogen Initiative

47 Hybrid Wind System Phase III: Hybrid Wind and Hydrogen Systems 1. Business / Commercial Modeling Wind Energy Refinery 2. Hydrogen Natural Gas Mixed Turbine (2-3 MW) and Boilers 3. Hydrogen or H2 and Natural Gas Pipeline System 4. In depth analysis of combined power generation, valued added products, energy storage, and natural gas displacement

48 Renewable Hydrogen Research and Demonstration Refrigerants Anhydrous Ammonia + N Anhydrous Storage Reformer

49 Michael Reese Renewable Energy Director West Central Research & Outreach Center (320) Destination Renewable Energy Research & Demonstration Systems

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