Posted: Monday, 07 April 2008 4:43PM

Michigan Energy Report - March, 2008
 
Thursday, March 27, 2008

 
 

Water and energy: inextricably linked

Oil is precious, but water will become more precious

 James A. Croce, CEO NextEnergy 

We’ve all been guilty of grabbing a plastic container of bottled water, twisting off the cap, and drinking it down. But did you know that it takes five times the amount of water that’s IN the bottle to MAKE the bottle, fill the bottle, seal the bottle and ship the bottle? In other words, more than a gallon of fresh water is used up to produce every 12 ounce bottle of water. Please think about that the next time you lazily grab a bottle of water instead of filling up a cup at the tap.

Why is so much water used? Because it takes a lot of water to produce energy. In fact, it takes a lot water to produce just about everything. Water is needed in huge amounts for heavy industries like coal mining, drilling for oil, refining gasoline, generating and distributing electricity and disposing of waste. And that’s not even touching on agriculture, domestic use (showers, dishwashers, toilets, washing machines) and manufacturing. According to Peter Gleick, president of the Pacific Institute for Studies in Development, Environment and Security in Oakland, Calif., as the United States produces more and more of its own energy and fuel (rather than importing it) the U.S. will also use up more and more of its domestic water supply. “The largest use of water,” say Mr. Gleick, “is in cooling power plants.” Twenty percent of all the water used in California is used in energy generation. Most of the water used for energy does return to its source, but it’s often heated or polluted and therefore of less value.

So energy generation and water use are, in fact, two sides of the same coin. And either side of the coin cannot be considered without an eye on the other side. Which puts Michigan in an astonishingly unique position in the entire world. Because not only does Michigan have the work force, educational resources, and existing infrastructure to be a world leader in alternative and renewable energy research, development and manufacturing, but Michigan also had access to fresh water sources unrivalled anywhere on earth. You think people are squawking about the shrinking supply of oil at the moment? Wait until they start screaming about the shrinking supply of fresh water. That’s a few years out before it gets on the cover of Time magazine, but we states that border the Great Lakes are going to become real popular with the Sun Belt. The so-called Rust Belt is going to become the Canteen of America quicker than you can say Lake Superior.

And we in Michigan have to be prepared. At least one governor from the southwest has begun to make ugly intimations about “their water” (meaning us) and battle lines are already being quietly, and not so quietly, drawn. My opinion at this time is clear but patently simplistic … if any business wants the benefits of clean, plentiful, inexpensive Michigan water, then move your business to Michigan.

Fundamentally, our nation has to understand that we, as a nation, cannot effectively pursue a self-sustaining energy course without simultaneously pursuing a self-sustaining water usage course. And this is not yet happening. Much call has been made to draft a federal energy policy with single-source Federal overview; a policy which does not yet exist. I posit that, since the horse isn’t out of the barn yet with regard to a federal energy policy, let’s do it right the first time and make it a federal energy and water policy. Two sides of the same coin.
 

Azure inks deal for hybrid utility boom trucks
Oak Park-based Azure Dynamics Corp., a developer of hybrid electric and electric powertrains for commercial vehicles, announced it has signed a memorandum of understanding with an unnamed manufacturer of aerial boom trucks for the electric utility, telecommunications and contractor markets. The MOU includes the branding, marketing and sale of Azure's Low Emission Electric Power systems within the electric utility and telecom markets. More at www.azuredynamics.com.

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GR museum world's first to LEED gold
The Grand Rapids Art Museum announced it has received a gold certification from the U.S. Green Building Council's Leadership in Energy and Environmental Design program -- the first and only newly built art museum in the world to receive LEED certification. LEED certification is the nationally accepted benchmark for the design, construction and operation of high-performance, sustainable buildings. A gold certification recognizes a superior level of energy and environmental performance. From its conception, the new museum integrated extensive sustainable systems. The new building opened to the public on Oct. 5. Lead donor for the new museum is Peter Wege, an environmentalist whose foundation made LEED certification a requirement of its $20 million gift.

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Croce leaving NextEnergy for entrepreneurship
James A. Croce announced Wednesday that he's leaving NextEnergy, Michigan's renewable energy industry accelerator. Croce, president and CEO of NextEnergy the past four years, says he will join the growing ranks of Michigan renewable energy entrepreneurs. Croce said he would remain at NextEnergy another six months, while the NextEnergy board selects his replacement. NextEnergy is a non-profit corporation dedicated to enabling the commercialization of energy technologies that positively contribute to economic competitiveness, energy security and the environment. More at www.nextenergy.org.

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Lawrence Tech leads international zero-emission race
Element One, a student team at Lawrence Technological University, has taken the equivalent of the pole position in the international Formula Zero racing series for zero-emission, hydrogen-fuel-cell-powered race karts. All competitors must use identical 8.5-kilowatt hydrogen fuel cells, and only six are available. Formula Zero race officials based in Amsterdam notified the Lawrence Tech team that it has qualified for the race and finished first in the design competition. “None of this would be possible without hard work, dedication, and determination to win,” said student team member Mike Samaroo in announcing Element One’s success. “However, keep in mind that this was just the design competition, and although this was a huge accomplishment for our team, we still have the championship to win.” The racing season is scheduled to begin in August in Rotterdam.

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Two Wayne State teams national finalists in hydrogen design
Two teams from Wayne State University are among five national finalists in the Hydrogen Education Foundation's 2007-08 Hydrogen Student Design Contest. The grand-prize winning team will be announced and present their design at the National Hydrogen Association's Annual Hydrogen Conference 2008 in Sacramento, Calif. on March 31 during the opening keynote session. For this year's Hydrogen Student Design Contest, "Hydrogen Applications for Airports," teams were challenged to use a budget of $3 million to design the most effective airport hydrogen system that would address the three main challenges for airports today: noise, air pollution and groundwater contamination.

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Bay City plant getting power from wind
Racine, Wis.-based SC Johnson said this month that the wind will provide nearly half of electrical needs at its second largest North American manufacturing plant in Bay City. The plant will be powered in part by the Thumb's Harvest Wind Farm. SC Johnson is one of the first manufacturers in Michigan to use wind power, striking a five-year deal with Spartan Renewable Energy that will provide approximately 31.5 million kilowatt hours annually, which is the maximum capacity that Spartan is able to provide. This is enough energy to power 46 percent of the company's Bay City operations.

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Muskegon Chamber backs continued electric choice
The board of directors of the Muskegon Area Chamber of Commerce announced that it favored a Michigan energy policy that preserves electric competition, promotes renewable energy and energy efficiency, and also provides the opportunity for businesses to generate and sell energy into the grid. In short, the chamber said, its members have benefited from the state Customer Choice and Electric Reliability Act of 2000. The chamber policy opposes current efforts to eliminate or restrict the current electric choice program. However, the chamber also said it supports an aggressive Renewable Portfolio Standard (RPS) in Michigan, which would require the state's utilities to generate a certain percentage of their power from renewable sources. Current Michigan RPS proposals in the state Legislature are tied to other bills that would restrict electric competition. Utilities argue that they need assurance as to their customer count before making major investments in new electric plants to meet an RPS.

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Brighton energy firm to be bought out
Brighton-based Encore Energy Systems (Pink Sheets: ENCS) said it would be acquired by Oxford, Miss.-based Modern Technology Corp. The terms include an offer to existing Encore shareholders of not less than 1 cent per share. Encore had 51.05 million shares outstanding as of January, so the offer values Encore at around $500,000. The payment will come in either common or convertible preferred stock of Modern (Pink Sheets: MODC) at the shareholder's option. Stockholders are not required to sell any shares and will not lose their ownership interest in Encore. More at www.encoreenergyinc.com or www.moderntechnologycorp.com.

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Thumb district gets EPA clean school bus grant
The United States Environmental Protection Agency's Chicago-based Region 5 has awarded a $59,120 grant to the Elkton-Pigeon-Bay Port Laker School District in Pigeon for a project to cut diesel emissions from the district's school buses. EPA officials said the grant will be used to retrofit 12 school buses with emission-reducing diesel oxidation catalysts and replace the district's heaviest polluting bus with a new, low-emission bus. In addition, the district will start using B20, a blend of 20 percent diesel fuel from vegetable oils and 80 percent conventional petroleum diesel fuel. The district will also hold a workshop for other Huron County school districts on the benefits of operating with B20 and installing diesel oxidation catalysts on their buses.

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Energy-efficient lighting firm gets new manufacturer
Romeo-based Ultraform Industries Inc., a producer of energy-efficient fluorescent light fixtures, this month announced a manufacturing agreement with Alumalight of Troy. Ultraform's lamps can reduce a facility’s energy costs by up to 49 percent and, thanks to this manufacturing agreement, are now available for shipment anywhere in North America through Ultraform's dealer, Ultra Lighting.

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Chrysler to study wind power
Chrysler LLC announced it would begin testing its Chelsea Proving Grounds for its potential as a wind energy generation site. An 80-meter (264-foot) meteorological test tower will be raised this month at the proving grounds, part of a 12- to 18-month test of whether the winds in western Washtenaw County are suitable for clean energy production. It's the first such tower to be raised in southern Michigan. Chrysler officials said an earlier study identified wind energy potential at the Chrysler site and the surrounding area in Sylvan Township.

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New MSU study puts value on 'green infrastructure'
The Land Policy Institute at Michigan State University released its final report on green infrastructure in Michigan. The comprehensive report, summarizing the results of three recently completed studies related to natural resource valuation, natural resource impact analysis and natural resource conservation funding, shows the significant value of water resources and green infrastructure assets, the tax benefits to local government due to those assets, the significant economic impact of parks, and that Michigan ranks 47th in the nation (ugh!) in per capita spending on natural resource conservation. Even after discounting for its low economic performance and its political and socioeconomic structure, the study finds that Michigan still ranks even worse (48 out of 48). The gap between what Michigan spends and what it should spend given the framework for conservation spending is the largest in the nation. Coincidentally, many of the largest green spenders are among the best performing states.

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MSU studying Toledo firm's waste-based biofuels
Toledo-based N-Viro International Corp. announced an agreement with Michigan State University to explore the development of its patented N-Viro Fuel Technology at MSU's T.B. Simon Power Plant. N-Viro is an environmental and materials handling company that owns patented technologies for the treatment of various waste streams including biosolids and manures. Included in these technologies is the patented renewable bio-fuel technology known as N-Viro Fuel. MSU and N-Viro conducted a full scale test of the N-Viro Fuel process and product at the Simon plant on the MSU campus in East Lansing in January. The successful test separately used both biosolids and animal manure-based N-Viro Fuel to demonstrate the potential of this technology to beneficially reuse these materials by creating a renewable alternative fuel. More at www.nviro.com.

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Ann Arbor's Adaptive Materials gets more than $4 million from military
Ann Arbor fuel cell technology developers Adaptive Materials Inc. said it had secured funding and contracts from the United States military to develop the company's technology for unmanned aerial vehicles, military robots and communications devices. Unlike its competitors, Adaptive Materials' fuel cells are lightweight and run off of propane, a commonly available fuel source. The company also said it would soon open a new manufacturing plant to accommodate the increased demand for its product. The Defense Department has awarded Adaptive Materials a $2.35 million Phase II Small Business Innovation Grant to fund the continuing development of its portable solid oxide fuel cell technology for UAVs. Also, the company got $1.75 million from the U.S. Army Tank and Automotive Command to develop its fuel cell power system for use on the iRobot PackBot military robot. Finally, the company got a contract to develop a portable power source for U.S. Army communications devices, including radios and GPS devices used by soldiers in the field.

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Titan Energy grows at NextEnergy Center
Titan Energy said it has grown to 30 employees, in part at Detroit's NextEnergy Center. The company's Sentry 5000 unit brings power, water purification, satellite communications, heating and cooling to emergency and disaster scenes in a single unit that can be towed easily behind a small truck. The unit is designed for the aftermath of everything from tornadoes to hurricanes to earthquakes to explosions -- when power, phone lines and cell towers are down, water is contaminated, temperatures are extreme. The Sentry 5000 was developed at NextEnergy in Detroit’s TechTown, where Titan Energy began its startup operation in October 2005 as NextEnergy’s first tenant. In little more than two years, Titan has grown from two employees to 30 and expects to see its ranks of workers grow as orders continue to come in for the Sentry 5000 and the success of its other subsidiaries. More at www.titanenergy.com or www.nextenergy.org.

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