What the Green Industry Wants From Obama

The incoming president is getting a long list of ideas from greentech companies that expect him to provide money and policies quickly to help them survive the recession and more.

Barack Obama is the new Genie for the greentech industry.

The guy won't become president until Jan. 20, but he has already received plenty of wish lists from folks in the renewable energy, biofuel and auto industries.

It's normal for businesses to vie for Obama's attention before he starts working in the West Wing. It's particularly critical to get a head start when the economy is sinking and cash and loans to develop technologies and build factories are hard to find.

The wish lists have come with a tinge of desperation, though. Many in the greentech business see Obama as their advocate, and now they expect him to deliver money and policies that will get them through tough times.

Obama, however, appears to be listening. In his weekly address to the nation over the weekend, he said that a centerpiece of his campaign will be to create three million new jobs, with 80 percent of those jobs in the private sector. Many of those jobs will likely revolve around renovating public buildings for energy efficiency, which he said is another goal of his Presidency.

Obama also added that he wants to double the production of renewable energy, although he didn't put a time frame on it.

Obama will have to pull some nifty tricks to grant those wishes quickly. He might represent hope and a better time to come, but he's no magician. He has assembled some helpers with pro-green leanings, however (see Obama Names Energy and Environmental Leaders).

Here is a look at what greentech folks want from the new administration:

Solar: The Solar Energy Industries Association, along with its brethrens in the wind, geothermal and hydropower industries, want cash instead of tax credits. They asked for the goodies less than two months after they won a hard-fought battle to get Congress to extend tax credits for building renewable energy power plants or producing cleaner energy (see Industry Groups Call for Changes to Federal Incentives).

The groups also want another $30 billion worth of incentives in 2009 for developing and building renewable energy projects. Expect to see a push on loan programs too. Although venture capitalists and other investors have poured millions into solar projects, building factories and solar farms requires millions in capital, which has become scarce.

Smart Grid: The Demand Response Smart Grid Coalition has 21 policy recommendations, including tax credits for companies that use so-called smart meters or devices and software to reduce power use (see Smart Grid Coalition Seeks Tax Breaks for Negawatts).

The coalition also wants a fund set up to finance the manufacturing and installing of advanced meters and other technologies for making it easier to manage the supply and demand of power over the grid.

Batteries: The National Alliance for Advanced Transportation Battery Cell Manufacture wants $1 to $2 billion over five years to accelerate the development of lithium-ion batteries for hybrid and all-electric cars (see Green Light post). The group, which includes 14 battery and chemical companies such as 3M, ActaCell and EnerSys, says government help is necessary to ensure the American car industry won't have to rely on the growing number and prowess of Asian battery makers.

Meanwhile, more than a dozen Japanese car and battery makers have banded together to work on setting international standards for lithium-ion batteries (see Japan, U.S. Strive to Set Car-Battery Standards).

Automakers: The cry for help from the auto industry before the November election, and you can bet it will continue after Obama takes office.

Back in September, Congress approved a $25 billion program to help carmakers retool their plants to make more fuel-efficient cars. But that loan program wouldn't take place soon enough to rescue General Motors and Chrysler from bankruptcy. So President Bush agreed to use part of the $700 billion set aside for bailing out the financial industry for rescuing GM and Chrysler (see U.S. Automakers Get Federal Bailout). But there's no guarantee that the $17.4 billion worth of loans will be sufficient to prop up GM and Chrysler.

Biofuel: The Renewable Fuels Association is lobbying to include several ethanol-friendly provisions in legislation to boost the economy. The suggestions include setting up a $1 billion loan program for existing ethanol producers to stay in business. It also wants a $50 billion loan guarantee program for building refineries and related infrastructure.

To make sure demand for ethanol will grow substantially, the association wants a federal mandate that all carmakers receiving federal aid would make only cars that can run on a blend of up to 85 percent ethanol, starting with the 2010 models.
Biofuel makers, however, have had trouble even meeting the production requirements set under outgoing President George Bush. The United States will not be able to meet the mandate to use 36 billion gallons of biofuels by 2022, reported the U.S. Energy Information Administration in December.

A recent survey by investment firm ThinkEquity shows that cellulosic ethanol makers will likely miss federal targets by a weighty margin, at least in the near future. Instead of meeting the goals to produce 100 million gallons of cellulosic ethanol in the United States by 2010, the survey indicated that only 28.5 million gallons will be available in 2010.

The problem? Biofuel plants require inordinate amounts of capital, which is in short supply.

Fuel Cells: The US Fuel Cell Council wants $1.2 billion for research and production of fuel cell technologies, and for investing in fuel cell-powered vehicles and fueling stations. The group has offered a break down of how Obama and Congress should spend that $1.2 billion on its Website.

Comments [3]

  • Nick Panchev 01/5/09 6:18 PM

    Open Letter (a Demand by the People and for the People) to the Honorable Barack Obama, President United States of America (as of 01/20/2009)

    ?Wall Street titans that have taken taxpayer bailouts are squandering money on spa retreats, golden parachutes and more. Wasn’t this cash supposed to be spent on saving the economy??

    Your attention to the herein below Public links is hereby demanded.

    http://articles.moneycentral.msn.com/Investing/CompanyFocus/the-10-worst-bailout-boondoggles-slides.aspx?slide-number=5

    http://www.bailoutsleuth.com/

    We, the People and for the People, hereby demand that you demand an immediate refund to the US Treasury, from all of these Banks, et al, not limited thereto and particularly from AIG, associated therewith misappropriation of bailout funds, and apply such funds toward what you promised to the People, who elected you.

    The People from the Renewable Energy sector does not want Government subsidy.

    You have the Presidential power to seek the creation of a TRUST FUND (Renewable Energy Trust Fund) from these demanded refunds and with the assistance from the Honorable Steven Chu, Secretary Department of Energy (as of 01/20/2009), create a Credit Facility to all of these companies in the Alternative and Renewable Energy Sector, hereinafter the ?Science Revolution Sector?, enabling creation of jobs and saving the economy. (Every little bit helps; not billions of taxpayer’s dollars).

    All other sectors, that can also create jobs, shall be equally considered.

    It is highly unlikely that the bailout entities will create jobs and save the economy.

    Reply
  • David Doty 01/9/09 2:36 PM

    The most important thing the president needs to know is that the current DOE is completely broken when it comes to support for innovation.  There is no mechanism for funding truly innovative energy solutions.  For a DOE proposal to be funded, it must respond precisely to a narrowly drafted solicitation from the DOE.  For example, a DOE solicitation may call for research leading to specific improvements in specific components in a specific thermodynamic cycle being used under specific conditions for thermal energy conversion.  Indeed there is an office to which unsolicited proposal may be sent, but this office has virtually no budget, either for review or for funding.  Their standard response to a truly innovative and scientifically sound proposal is to simply say ?Your objectives are not aligned with those of the DOE,? or something equally asinine.

    The NIH, on the other hand, has helped guide a revolution in health advances in the U.S. over the past three decades because they have consistently welcomed unsolicited proposals.  It is not even necessary for the author of a proposal to attempt to identify any particular program to which his/her proposal should be submitted.  It is only necessary that it appear from the title and abstract that the proposal is attempting to do something that might be health related and might be an advance in science or technology.  The Center for Scientific Review does an extremely efficient job of sorting out all the incoming proposals (about 100,000 annually) and sending each one to an appropriate program manager, who in turn sees to it that each proposal is given a respectful peer review on its scientific merits.

    Undoubtedly, there are lots of good, innovative energy-related ideas out there that are languishing because the DOE has no interest in anything they have not thought of first.  This problem should be simple to fix.  It could begin by increasing the budget for the Office for Unsolicited Proposals by several orders of magnitude ? to at least several hundred million dollars ? and establishing a division of the Center for Scientific Review to deal with energy-related proposals. 

    Now for a case in point.  We at Doty Energy have recently simulated novel processes that will make it practical to synthesize fuels of all types ? gasoline, alcohols, jet fuel, diesel ? from waste CO2, water and cheap, off-peak low-carbon energy.  The process begins by electrolyzing water to produce the needed renewable hydrogen.  Then, a portion of this hydrogen is reacted with the CO2 to produce the renewable carbon monoxide (CO) needed in an advanced Fischer-Tropsch (FT) process to synthesize hydrocarbons and alcohols of all types.  With thorough system optimization, 60% of the input electrical energy can end up in the chemical energy in the liquid fuels produced.  The electrolyzer operates only when cheap energy is available.  Sufficient hydrogen is stored to keep the FT reactor operating at a fairly stable rate around the clock. 

    These wind-generated carbon-neutral fuels, dubbed WindFuels, will compete when oil is above $40 to $95/bbl, depending on the cost of the off-peak energy.  Recycling CO2 into transportation fuels using off-peak renewable energy addresses both the oil and the climate challenges, and it completely stabilizes the power grid, no matter how much wind and solar are added.  Detailed scientific, engineering, and economics analyses are available at http://windfuels.com/ .  We call it RFTS, Renewable Fischer Tropsch Synthesis. 

    Wind energy is the most competitive renewable energy resource in many regions.  The challenge has been getting wind energy from good sites to where and when it is needed.  Efficient conversion of off-peak wind energy and waste CO2 into standard liquid fuels solves these problems.  Annual WindFuels production per land area in good wind regions will exceed biofuels production density in fertile farming areas by a factor of 4 to 30.

    In many areas, the cost of off-peak wind energy is already often below 2 cents/kWhr and it continues to drop as more wind is added.  At this rate, the cost of ethanol and even gasoline from wind and CO2 can be below $1.50/gal.  Already, it is sometimes necessary for the energy producers to pay to get rid of their excess energy to maintain grid stability, and wind is only 1% of the grid energy.  WindFuels is the most promising avenue for carbon-neutral transportation fuels and stabilization of the renewable grid, but the DOE is not interested in unsolicited proposals, no matter how good they might be.

    Reply
  • monson 06/9/09 2:34 PM

    Whatever the pres does, I hope he does it fast and effectively because we need this alternative energy stuff to become a large reality. check out http://www.geothermaldistributors.net

    Reply
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