Rebuild AmericaEnergy & Environmental Technologies to Boost Your Business
Seminar for Alternate Energy, Conservation and Efficiency
Seminar
June 8, 2004
New York Power Authority Headquarters
123 Main Street, White Plains, NY
And
Center of Sustainable Energy Seminar
“Hummers and Hot Tubs for China: Will oil demand exceed supply
and what will that mean for New York”
At the Bronx Community College
June 17, 2004
Report
To the Superivisor and Town Board
Submitted by
Richard J. Garfunkel
On June 8, 2004, I attended a seminar held at the offices of the New York Power Authority, which was hosted by the United States Department of Energy, NYSERDA, and the Power Authority. Ms. Pat Courtney, from Mid-Hudson Energy Smart served as the moderator, with the able assistance of Ms. Nikki Coddington, of the Town of Greenburgh’s Energy Conservation Office. Over the course of the day over 150 guests, that included, professional engineers, architects, builders, energy related business people, and other interested persons listened to addresses regarding conservation, efficiency and alternates to fossil fuel use. These of course included; new types of lighting systems, geo-thermal energy, cogeneration, wind-turbines, solar energy, and photo-voltaics.
Mr. Angelo Esposito of the New York Power Authority, who stressed the background of energy efficiency promoted by the Power Authority over the past 20 years. That history included the investment of over $1 billion from the State of New York, regarding energy efficiency and conservation. The investing of over $3.5 million in the NYPA headquarters in White Plains in 2002 and the implementing of over 2500 projects throughout New York State. In 2004, alone, over $750 million had been invested in energy related projects that saved over $87 million with a cumulative saving of $600 million through out the state. These efficiencies have been directed towards public buildings, public schools and governmental institutions, and have been responsible for avoiding the dispensing of over 630,000 tons of greenhouse gases.
Basically what was stressed, over and over, the necessity of keeping our air clean, finding alternate energy sources to accomplish this end, and reducing our national and state dependency on foreign fossil fuel.
Pursuant to that goal, and with the reality of $2.40 gasoline, the specter of record high heating oil and natural gas prices in the heating season, global warming, declining fossil fuel resources and indoor and outdoor pollution, Ms. Courtney introduced the following guests, who were able to demonstrate their expertise and special talents regarding their disciplines with handouts and power point demonstrations.
a) Bud Nicoletti, the City of White Plains- Department of Public Works- public
b) Ed Smyth, RLW Analytics- energy efficiency
c) Dominick Aiello, Metro Energy Solutions– performance contracting
d) David Martindale- Sunwize Energy Systems- photo-voltaics
e) Jay Busch- Osram Sylvania– Energy efficient lighting
f) Joseph Borowiec- NYSERDA- cogeneration
g) John DeLise-Advance Power Systems Engineering– cogeneration/micro-turbines
h) Michael Sherber, Lentz Engineering Associates-mechanical systems
i) Rose Dowdy Enlink Geothermal– geothermal
j) Keith Christensen, Community Energy, Inc.- Renewable energy: wind
Commissioner Nicoletti, jnicolet@ci.white-plains.ny.us, 914-422-1210, discussed in depth the efforts the City of White Plains was making with regards to its public buildings, car and truck fleet, water pumps and energy conservation. In its 20 public buildings, Nicoletti stressed their effort to make them energy efficient. He also described in great detail the workings of their VFD water pumps and how they were aligned to perform with seamless efficiency. What he stressed was the necessity of keeping water pressure steady and even throughout the high and low demands reflective of usage during the day. Another interesting aspect was his department’s ability to keep his truck fleet in working condition despite the age of the vehicles. The department has made efforts to lighten the superstructures of his truck fleet with lighter weight metals or plastics to make them more energy efficient. The city also uses smaller garbage trucks to do specific jobs that they are more suited for. The City of White Plains uses special granite curbing stones that are more expensive, but will last much longer than concrete. In the same way they use stainless steel for guard rails, These guard rails need little servicing, do not have to be painted and do not rust. In other words, White Plains’s Department of Public Works is quite cognizant of cost, works to preserve and utilize what it owns, and looks to be efficient in its usage of materials. In other words, use only the energy you need!
a) VFW water pumps in a cascade format, in chiller compressors, in sound retardant rooms
b) Large ventilated vehicle repair facility
c) Electronic furnace control, centralized computer, touch tone screens
d) Improving vehicle efficiency, aluminum, fiberglass, high strength low alloy steel, superior durability and low maintenance
e) Right sizing vehicles for the proper task, alternate fuels, thinking long range.
Mr. Ed Smyth, of RLW Analytics, ed@rlw.com, 518-880-0331, sponsored by NYSERDA and the NY Energy Smart program, works on commercial energy audits. He tries to alert his clients to what is efficient and what isn’t. In other words energy efficiency can pay high dividends. Smart use: regarding lighting, heating, and reliability with less cost. Small businesses should have energy audits to see where they can save dollars.
a) Excellent return of one’s investment
b) Overcoming fears; it is not detrimental or competitive with utilities, not about 1970’s style to do without!
c) Overcoming the fear of poor quality equipment and untested technology
d) Overcoming the objections of no: time, money or information
e) The program is yours, it is paid for by the System Benefit Charge, and its part of the NYSERDA EnergySmart program.
f) It is designed for any small building owners- non-profits-municipalities-places of worship
g) Low cost returnable audit fee
Mr. Jay Busch, of Osram-Sylvania, 69 Pittis Avenue, Allendale, NJ 07402, jay.Busch@sylvania.com, 201-995-1836, works on lighting solutions that include creating more efficient lighting with lower energy costs. This reduces impact on the environment, is responsive to architectural form and style, and is easy to maintain. There are new generations of lighting that can reduce cost, accommodate needs and safe money. In other words where lighting should be placed, how much is needed, and what wattage is adequate. As for example, sensors could actuate the lighting of infrequently used hallways. Therefore lighting can be turned on and off reflective of need. Lighting that automatically turns on and off when rooms are not in use.
a) Much of what new lighting is rated by color/cri, lumen output, lumen maintenance and life expectancy
b) Color rendering indices can indicate color shift, better shade analysis, and color temperature
c) The future of fluorescent lamps/ longer life- reduced wattage T8 systems
d) The changing of fluorescent ballast regulations
1) By 4-1-05 all ballasts for replacement can still be produced or sold
2) Eliminates the production for use in new fixtures
3) By 7-1-10 all production, including replacement ballasts, will cease
e) Ballast functions; lamp starting voltage, lamp coil heating, limit lamp current after starting
f) Energy Efficiency- Reducing lamp power by only 1 watt can save
1) A 500 lamp store (4500 hrs/year) – $225/yr
2) A 2000 lamp school (3000 hrs/year) – $600/yr
3) A 5000 lamp hospital (8760 hrs/year – $4,380/yr
Mr. Michael Sherber, of Lentz Engineering Systems, 20 Tower Lane, Avon, CT, 60001, SherberMike@cs.com, 860-676-9017, market High Performance HVAC Systems, that promote; world-class energy efficiency, good indoor air quality, precise temperature and humidity control, quiet systems, minimize ozone depletion, ease of maintenance, and cost-effective construction. In the past the focus of energy concentrated on energy conservation efforts that; improved envelope design and construction, equipment efficiencies, and reduction of ventilation. Because of this there was inadequate filtration, re-circulation of internal contaminants, and noisy large, energy intensive boilers and chillers. In other words, CATNAP (cheapest available technology narrowing avoiding prosecution).
These new or “green” strategies mean the avoiding the need for “high efficiency” boiler and chillers. A “high efficiency system” with low efficiency equipment beats a low efficiency system with high efficiency equipment every time. In other words evaporative cooling and humidification, displacement ventilation and thermal storage can all sharply reduce both heating and cooling plant size and energy usage. The “green” strategy of dual path ventilation, eliminating terminal reheat, and energy recovery, which recycles heating/cooling energy permits ventilation to be used in spaces while minimizing new energy input. Alternate systems involving regenerative dual path systems, will reduce costs, provide better ventilation and reduce contaminates.
a) Energy Conservation potential- truly “green” system should be able to provide between 50 to 97% reductions in energy use
b) These systems can be installed at costs equal to or less than conventional designs
c) Conclusions- standard HVAC systems strategies are not meeting our needs
1) Conventional HVAC designs are the problem
2) Energy intensive
3) Re-circulation degrades indoor air quality
4) Can be expensive to build and take up too much space
d) A regenerative double-duct system can include these benefits
1) Superior indoor air quality
2) Greatly reduced energy
3) Reduced heating and cooling costs
4) Easy to construct and maintain
5) Competitive or lower construction costs
6) Quiet
Mr. Joseph Borowiec, of NYSERDA, job@nyserda.org, 866-862-1090 x3381, fax 518-863-1091, specializes in Cogeneration, which combines the use of heat and power. These systems reduce energy-cost, improve power reliability, and increase energy efficiency. At the present time almost 8% of all U.S. electric power, are from CHP, (combined heat and power), decrease energy use by 1.3 trillion BTUS/year, reduce Nox, SO2 emissions, and prevent 35 million tons of carbon equivalent into the air. Currently the technology is moving from IC engines, to micro turbines to fuel cells. CHP systems make sense in regards to: capacity constrained/high electric demands, high thermal demands, coincidental thermal and electric demands, extending operating hours, and access to fuels.
The objectives of NYSERDA’s CHP program:
a) Provide approximately $15 million per year for support of CHP to bolster NYS economy
b) Encourage the installation of clean and efficient technologies and applications
c) Establish a broad portfolio covering various technologies and end-use sectors
d) Document hurdles and lessons learned from design through implementation
e) Identify “role model” systems so they can be replicated faster, better and cheaper.
Currently NYSERDA will contribute 50% to the cost of selected Technical Assistance Study, up to $50,000.
Dominick Aiello, of Metro Energy Solutions, 973-439-7283 x 13, fax 973-439-6998 daiello@metroenergysolutions.com, design and build a Performance Based Project. Metro assumes performance risk and compensation is based on measured performance. Their expertise includes: survey, analysis, engineering/design, project management, installation, 0 & m, m & v, and energy procurement
This is for any organization looking for cost reductions:
a) Energy
b) Operations
c) Maintenance- improving operational equipment
d) Energy Procurement (purchase or generation)
e) Upgrading of aging systems and existing buildings
f) Project financing-little or no upfront funding
g) Environmental solutions
John DeLise, Advanced Power Systems Engineering, 64 Drake Avenue, New Rochelle, NY 10805, idelise@erols.com, 914-712-1591, fax: 914-712-1592, specialize in cogeneration and microturbines. He demonstrated the uses of cogeneration facilities regarding heat recovery.
Allied Converters Cogeneration Facility Heat Recovery:
a) Hot water generated from heat recovered from exhaust gas
b) Provides building heating and thermal energy required to operate lithium bromide absorption chillers.
c) One Micogen Heat Recovery Unit
d) Generates 330,000 BTU/hr
e) 100,000 BTU/hr is required to raise 1 million cubic feet 10 degrees Fahrenheit
Allied Converters Cogeneration Facility Electric Power Generation
a) Two 28 KW Capstone Microturbines
b) Natural gas fired
Allied Converters Cogeneration Facility Chilled Water for Building Cooling:
a) Two Yazaki 10 ton hot water fired lithium bromide absorption chillers
b) 45 degree Fahrenheit hot water
c) Hot water supply must be kept above 167 degree Fahrenheit
It was demonstrated that the installation of these converters could significantly lower electric power consumption along with demand. Also as natural gas consumption increased from 2003 to 2004 (months Feb, March and April) savings increased.
Ms. Rose Dowdy of EnLink Geoenergy Services, 16430 Park Ten Place/suite 600 Houston, Texas 77084, 281-828-3625, fax-282-398-6715, e-mail: rdowdy@enlinkgeoenergy.com Understanding Geothermal Heating and Cooling Systems. Geothermal involves the use of the earth as a heat exchanger, through various techniques that has been a proven technology for over 50 years. A geothermal system provides pumps that can remove heat or add heat to the building. Removed heat must be rejected to outside air, water which subsequently rejects heat to the atmosphere via a cooling tower, or to water and then to the earth.
The main benefits of a GHP ( Geothermal Heat Pump) System
a) Utility reduction (40-60%) of the energy consumption of a building is for heating, cooling and hot water
1) No water consumption from cooling tower
2) No gas consumption for heating
3) Dramatic reduction in electricity demand
4) Lowering of maintenance costs
5) Eliminate gas boiler
6) Free up additional space without a mechanical room
7) Eliminate the chemical treatment of water
8) Eliminate water usage
b) Stage 1- the Engineering analysis – looking over the current system and the surrounding environment and locale
1) Geothermal and Geological testing
2) Is it in New York?
a) Merchant Marine Academy
b) Adelphi University
c) Long Island University
d) Westchester Country Club
e) Saratoga Race Track
c) Stage 2- Drilling, Looping, and Grouting
1) Driving is done with modern bits that can go down as low as 400 feet for the heat exchanger
2) Looping and Grouting with EnLink patented cell tubing unit (CTU)
d) Stage 3- Trenching and Manifolding-well fields and their connections, and the linkage with the buildings
e) Results of one university project over System Life- Emission Reduction- According to the EPA the following reductions are equivalent to planting 1,944,000 trees or removing 3,888 vehicles from our roads.
1) Carbon Dioxide in lbs-971, 998
2) Sulfur Dioxide in grams 617,029
3) Nitrogen Oxides in grams-861, 661
Mr. David Martinadale, of SunWize Energy Systems, 1155 Flatbush Avenue, Kingston, NY 12401, damtindale@besicorp.com, 845-336-0146, specializes in solar technology. Sunwize is a solar technology company, which can integrate systems and serves as a manufacturer and a distributor. Solar is non-polluting, maintenance free, and it can be used in remote areas where power is not easily available. They also have telecommunications applications that include; microwave repeater sites, broadband, and VSATS, and gateways, rural telephony and radio networks. Solar can be used for traffic signboards, intelligent transportation systems, navigation aids and railroad crossing aids. Solar energy can be used also for government applications regarding; water pumping, area lighting, emergency backup power, surveillance and communication. Generally this system costs are $6 per watt and 80% of the of system cost, with an approximate 12 year pay back, bring an 8% return on investment.
Again solar could be used for sensitive areas that need perimeter protection, lighting or the need for call boxes. These systems can be tied into the existing power grid to augment existing power, reduce utility load demand, and lessen pollution. There are now solar shingles that aesthetically are more appealing then panels, but they must be attached through the roof decking.
Power from the sun is unlimited, the solarvoltaics peak with maximum solar exposure, there is no use of fossil fuel, and these systems are tied to the electrical grid. Under current law New York must buy back excess energy that is generated. The cost of photocells is coming down, and efficiency is increasing. At this time 90% of the photovoltaics are foreign made, with GE now coming into the market place.
For residential applications, not e the following
a) Reduce utility costs
b) Add value to one’s home
c) UL listed components
d) Certified installers
For commercial applications:
a) Reducing utility expense
b) Low maintenance
c) Non-polluting, less cleanup
d) Rebates and incentives
Funding options are available through NYSERDA, LIPA, NJCEP, CCEF, www.dsireusa.org
Mr. Keith Christenson, of New Wind Energy, Community Energy, Inc, 2 Lewis Road, Wappingers Falls, NY, 12590 Keith.Christensen@newwindenergy.com, 845-454-2113, fax: 800-4958048, specializes in wind-driven turbines to create electrical energy. Today 9% of New York State’s energy is derived from oil burning plants, 16% from coal burning furnaces and 29% from 6 nuclear reactors. These emissions from electric generation cause 40% of all carbon dioxide (c02), the leading greenhouse gas, 67% of all sulfur dioxide (so2), the leading precursor of acid rain, and 25% of all nitrogen oxide (nox), the leading component of smog. Because of the acid rain problem in New York State 300 of the 2500 lakes in the Adirondack region have literally devoid of life. Also a consequence of this contamination of our air, now one school age children, in the United States, suffers from asthma. In some urban New York areas, the rate is as high as 25%.
The question of “why wind power?” can be addressed by the following:
a) Emission free
b) Fuel free
c) Fixed price, no increases
d) Less Centralized
There has been a 90% reduction in levelized costs from 1980. In 1979 the cost was 40 cents/kwh to 4-7 cents/kwh in 2003. There have been estimates that the cost will go down to 2.5 to 4.5 cents by 2010. There are now increase in turbine size, manufacturing improvements and R & D advancement. New York State has wind resources, determined by NYSERDA of 5000 megawatts for land-based turbines (10% of New York’s electrical needs) and another 5200 potential megawatts from off shore wind. One-megawatt wind turbine engine as tall as a Redwood tree, reduces c02 emissions by 6 million lbs/year, and has the same pollution-reducing impact as planting 320,000 trees.
The current wind premium costs are the following: residential- $5 per month buys 200 kwh for a home; the average home uses 500 kwh/month. With 100% wind power, the costs are $12.50 per month.
Current contributors to the NY State Electrical Grid:
a) 26% natural gas
b) 20% nuclear reactors
c) 18% hydroelectric
d) 16% coal
e) 9 % oil
f) Less than 1% renewable
In conclusion, there are many new and old businesses marketing innovative and emerging technologies that can save money for the state, the county, the local town, businesses and for ultimately the consumer and taxpayer. Not all of these technologies have application for everyone. With regards to the issue of fossil fuel, there are some obvious problems ahead. One of these problems is that of supply. There is an increasing worldwide demand from super-populated countries like India and China, which have been developing large consumer demand and have emerged as manufacturing and industrial centers. This industrialization and consumerism will continue to grow, as hundreds of millions within their borders demand more electrical devices and automobiles. In fact, pollution in these countries has reached alarming levels. Therefore the near term specter of cost reduction in fossil fuel is illusionary. Demand will continue to escalate prices unless alternate sources are found and implemented. Also the relative possibility of political instability regarding main oil producers like; Saudi Arabia, Iraq, Iran, Libya, Nigeria, Venezuela and Indonesia will continue to put pressure on the future markets. Recent attacks at the Iraqi oil depots of Basra and at the offices of foreign oil management in Saudi Arabia have shaken the future’s markets. Insurance costs rose spectacularly after terrorist launched an unsuccessful, but murderous strike on the Basra port area.
As a consequence of the burning of more home-produced coal or foreign oil, pollution will continue to increase. The resulting affect can mean adverse changes in our climate, greater health problems, and the disappearance of more of our lakes, and forests. Also the commercial affect of higher energy prices will adversely impact on current business and any type of industrial expansion in our area. We will become less competitive as a region if our need for imported oil continues along with the domestic shortage of natural gas. Currently, before the sharp escalation of oil prices, the cost of natural gas had already risen dramatically. Energy intensive businesses will be under greater pressure to relocate out of this region. Also, as a consequence of higher heating costs, more people will be forced to emigrate to milder climes. In other words, being a region that is vulnerable to high imported oil costs will eventually cause economic decline. Currently all of our transportation systems have included “fuel surcharges” to our shipping costs.
From a security perspective, the increase in the amount of dependency on nuclear energy is questionable and probably risky. The cost for security is tremendous and the guarantees are not perfect. That cost will continue to escalate in the near and distant future. Today there are many calls for the closing of the nuclear plant at Indian Point. The possibility of a “forced” evacuation from this region is unthinkable. Therefore if security is not almost perfect, the risk of continuing energy from nuclear plants may become economically unjustifiable. In regards to pollution, the rise in medical costs, and therefore the rise in health insurance, may also be a long-term factor in the economic decline of a region.
The creation of a greater renewable energy industry will pay high dividends for our region and the state. The lowering of costs through cogeneration, micro turbines, geothermal, along with solar paneling and wind turbines will also result in less pollution and the “end” costs to businesses and the public. A change from a dependency from foreign and domestic fossil fuels must be done. It will pay dividends in the short run and be critical in the long run.
In the wake of this seminar at the New York Power Authority, I was invited to the Bronx Community College Campus, at the old New York University Heights location, in the Bronx, to participate in a seminar and luncheon, sponsored by the Center for Sustainable Energy and hosted by the acting director, Dr. James Quigley. The focus of this gathering was to listen to a talk by Alfred Cavallo, PhD, on “Hummers and Hot Tubs for China: When will oil demand exceed supply and what will that mean for New York?” Dr. Cavallo, an energy consultant based in Princeton, New Jersey, recently published an article in the Bulletin of the Atomic Scientists, January/February 2004, entitled “The Illusion of Plenty,” that analyzed in depth the illusion regarding “limitless supplies of fossil fuel.” Dr. Cavallo articulates, in detail, who really controls those resources, and what the current and future demand is for those same resources. Dr. Cavallo makes an excellent case for urgency regarding “demand” and believes that at our current pace of consumption, along with the continued growth of demand from China and India we all face a “supply” problem sooner than our governments and the oil industry is predicting.
Of course, with regards to what Dr. Cavallo states, the world is currently consuming 28 billion barrels of oil per year. Today, China’s and India’s combined population is 2.3 billion people. If those two country’s economies continue to evolve, to a European-like life-style, the demand for oil from their populations would equal the same 28 billion barrels that is currently used worldwide! In 2003, China’s oil demand was up 10%, which accounted for one-third of all of the increase in demand worldwide. In the first quarter of 2004 it accelerated to a pace of 17%!
Therefore, of course, the question Dr. Cavallo poses, is what are the “real” resources out there, can we really tell with a greater level of accuracy who controls them; and what are the consequences of that control?
Dr. Cavallo believes that with today’s sophisticated advances in evaluating potential sites for oil recovery, our understanding of future reserves is much more accurate. In other words, many of the potential places for discovery have been analyzed with a greater level of technology than ever. He looks at three categories of oil; proven, undiscovered, and reserve growth.
a) Plate tectonic analysis
b) Oil formation- migration, trapping
c) Major sedentary basins explored, more remote or deeper deposits found and developed
d) Three and four dimensional seismic surveys actuated-nuclear magnetic resonance
e) Lateral drilling
f) Floating platforms, drilling in water up to 8000 feet deep
Therefore reserves estimates include information from the following:
a) Government, military, intelligent agencies, industry sources
b) Information from the United States Geological Survey (USGS) www.usgs.gov.
c) A five year project to determine “real” reserves
d) First science-based estimates
e) The three categories of oil reserves; proven, undiscovered, and reserve growth
f) The “mean” estimate cannot add all of these together
Of course currently the world’s primary energy comes from theses following sources, as of 1999:
a) Oil- 39%
b) Natural gas 23%
c) Coal 22%
d) Nuclear 7 %
e) Other 9%
With regards to these current energy sources, and where they come from, our government estimates that this production will peak in 2037, while the European Community and the CIA’s estimates say 2025! But of course throughout the years there have been many, many estimates and predictions that the world would soon run out of oil. But are the estimates today more accurate? Are the models for future discovery, production and demand more believable? According to Dr. Cavallo we can only assume that “proven” reserves, what is in the ground and “undiscovered” reserves, potentially discoverable, through geological probability can be counted.
The “reserve growth” category cannot really be counted because it is not really clear that there is really any oil in those locations and that if there was, new technologies cannot access these resources economically. Currently, as of 1996, the best estimates are that there are 3 trillion barrels oil worldwide. With an optimistic recovery rate of 50% there are, as of 1996, 853 billion barrels in the OPEC producing countries and 769 billion barrels in the non-OPEC producing countries. The former Soviet Union controls 39% of those non-OPEC reserves. Generally speaking production in the United States and the United Kingdom has peaked, while other non-OPEC country’s production has been flat. Of both groups, OPEC and non-OPEC, two realities are apparent, production of non-OPEC oil is at much higher rate, and is being consumed much faster, and the margins regarding OPEC oil are much, much greater. Production costs for the much more easily accessible oil from OPEC (mostly middle eastern suppliers) could range from 5 to 10 cents a gallon!
Dr. Cavallo, in his article “The Illusion of Plenty,” says, “Petroleum reserves are limited. Petroleum is not a renewable resources and production cannot continue to increase indefinitely. A day of reckoning will come sometime in the future. The point at which production can no longer keep up with increasing demand will mean a radical and painful readjustment globally to everyday life. In spite of that indisputable fact, people behave as if the global petroleum supply is unending.”
With all that in mind, Dr. Cavallo currently discounts our ability to access oil from tar sands and shale economically or with enough speed to match the growth in demand. Therefore his conclusion is that with a demand model, of 1, 2, or 3% growth, we will be in a crisis of supply much sooner than it is currently predicted. He also states that at the current level of production non-OPEC oil producing countries will run out of oil much sooner, and that OPEC will be left controlling the world’s supply. Again, currently with estimates of approximately 1.5 trillion barrels of recoverable oil and a current demand of approximately 28 billion barrels of oil per year, we have 35 years of reserves left. When we take into account the decline in production as reserves peak, the increase in normal demand by the traditional users, and the accelerated demand by the emerging population giants of China and India, the picture looks bleaker.