by Bruce Goodman

The MDNRE has denied Wolverine Power Supply Cooperative’s air permit application for a new 600-megawatt power plant in Rogers City to be fueled by petroleum coke and coal. The decision was based on MPSC findings that the plant was not needed to meet future supply needs and would increase electricity rates by more than 59% to over 20 cents per kwh.  The MPSC analysis suggested that Wolverine had alternatives to supply electricity to its customers at a fraction of the cost of a new power plant.  Separately, Consumers Energy announced deferral of its  development of a 830-megawatt coal-fired power plant near Bay City that it planned to have in operation in 2017. The reasons given included reduced customer demand for electricity due to the recession, forecasted lower natural gas prices due to recent developments in shale gas recovery technology, and projected surplus generating capacity in the Midwest market.

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 by Bruce Goodman

Research at U of M has led to a recent discovery in understanding how to chemically break down the greenhouse gas carbon dioxide into a useful product–carbon monoxide. The studies have figured out a way to efficiently make this chemically occur using sunlight. Carbon monoxide is a desirable chemical that can be used in processes to produce electricity or hydrogen. Alternatively, it has significant fuel value and can be converted by catalysts into hydrocarbons or methanol for use as a liquid fuel. It also serves as a source of energy and biomass for microbes.

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by Bruce Goodman

The opinion page of the Wall Street Journal recently claimed that “unconventional natural gas” may well revolutionalize the challenges and opportunities for alternative energy. The natural gas previously locked in impermeable shale around the nation is now becoming available due to hydraulic fracturing techniques. Thus the domestic gas supplies are increasing, and at a much lower unit cost than previously thought possible. The author suggests that this makes gas fired electric generation more available to back up intermittent energy from solar or wind generation. That is the optimistic perspective. The more realistic outcome is that cheap natural gas will lead to natural gas generation being preferred ahead of alternative energy supplies, unless some sort of carbon tax makes that option less desirable. After all, the natural gas that was locked up contains the carbon that climate change is all about.

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by Bruce Goodman

At its recent meeting in Detroit earlier this month, seven of the eleven states in the Midwestern Governors Association (including Michigan) signed an accord that provides a road map of work to be done to transition the region toward less reliance on fossil fuels. Key elements include:  

• working together on upgrading the region’s infrastructure to facilitate more renewable energy (improvements to transmission lines); •
• reducing electricity and natural gas use; 
• targeting a 25% RPS by 2025 (30% by 2030); energy efficiency building codes;
• a low-carbon fuel standard to encourage locally produced biofuels; and
• restructuring utility regulations to ensure energy efficiency is incorporated into a utility’s profit motive.

It would be interesting to know how much of this can be accomplished by regulation, and how much depends on legislation. To date the region’s efforts at coordinating energy policy has been somewhat uneven.

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by Bruce Goodman

Early in October Tom Friedman from the New York Times spoke in Grand Rapids. He addressed a crowd of 700 on many of the messages contained in his most recent book Hot, Flat and Crowded: Why We Need a Green Revolution. His was an optimist message — no matter the problem(s), if we start solving them now they can be solved in time. He left somewhat to the imagination what constituted “in time”, having earlier stated that Al Gore got it all wrong on global warming. It fact it was happening faster and more severely than the former vice president predicted.

Not surprisingly his call for a carbon tax as a price signal that makes dirty fuels more expensive and clean fuels relatively cheaper did not get a lot of applause, even though it makes sense. He called on the crowd and the nation to be diligent and innovative in searching for sources of abundant, cheap, clean reliable electricity generation. He ended his presentation with his motto: “Change your leaders, not your light bulbs, because leaders write the rules. Rules shape the markets and markets give you scale. It starts there.”

Many more interesting and thought provoking comments. He could start a revolution.

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by Bruce Goodman

By Executive Order dated July 30, 2009, Governor Granholm put into motion the climate action plan recommended by the Michigan Climate Action Council. She set goals of a 20% reduction in greenhouse gas emissions below 2005 levels by 2020, and an 80% reduction by 2050. The MDEQ was directed to begin tracking progress toward this goal beginning in 2012. Implementation measures include developing:

• Building codes to adopt higher energy efficiency standards;
• Strategies for reducing vehicular congestions; 
• An eco-driver program to improve driving patterns and practices;
• Practices for implementing carbon sequesteration practices in agriculture and forestry; 
• A statewide truck idling program; and 
• Adaptation plans for state.

54 climate mitigation actions form the basis of the climate action plan.

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 by Bruce Goodman

There is little doubt that the energy resources to be developed in Michigan are dependent on the state and national response to climate change and global warming.  Energy and greenhouse gases are inextricably linked.  It is disapointing to see that the international community is unable to coalesce around targets and strategies on glabal warming which is turn would provide direction and guidance for energy policies around the world. 

Meanwhile, in the vacuum that currently exists, the U.S. and the State of Michigan need to take the lead in this challenge.  Author Tom Friedman’s clarion call in his recent writings has correctly linked energy policy and climate change when he calls for a global energy technology revolution to address supply and demand of energy, the decline of natural resources, climate change, energy poverty and biodiversity.  The solution he suggests is abundant, cheap, clean, reliable electrons, with the admonition – “invent, baby, invent.”  Michigan’s contribution to the development of low emission vehicles is the right thing to be doing at the right time.  R&D on electric generation and other transportation components (e.g. jet engines) that will provided by Michigan research (such as the new GE facility) will put Michigan in the middle of the innovation that is needed.

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