Mixing Energy Sources
Posted August 25, 2009 at 9:19 am 
Filed in: A “Solar-Powered Oil Field” is the latest juxtaposition of today’s energy sources. As we move towards more independence from non-renewable fuels, the inevitable reality is that energy sources will be mixed. The joint initiative of the 29-megawatt solar steam plant between BrightSource Energy and Chevron speaks of a will to converge the past and the future at the present.
What has caused an oil company to join efforts with the renewable energy sector?
Since certain oil production processes are energy intensive (such as extracting oil from oil sands and shales), renewable energy could potentially offset some of the negative energy balance. Within the natural gas industry, solar steam systems are competitive when natural gas is at $8.50 per million BTU (According to New Energy Finance’s report February 2009). However, it’s estimated that the U.S. currently contains 100 years worth of natural gas resources (Financial Times). That capacity will continue to increase as foreign energy groups, foreseeing the promise of natural gas in the U.S., begin to form partnerships in the U.S. market. Now that the price of natural gas has dropped to $3 per million BTU, how does the solar-powered oil field intend to play a strategy that is cost competitive?
The answer lies within sustainable business models. While natural gas forecasts are optimistic, like the oil industry, developments are subject to constant maintenance, production and unexpected interruptions from natural disasters. Likewise, the capacity of solar energy will fluctuate with the mood of the sun. The diversity in the energy portfolio minimizes commercial risk while supporting growth in clean energy technology.
Speaking of clean energy technology, efforts towards advancing carbon capture were given a boost yesterday after DOE announced funding for 19 U.S. projects that will determine the risks of carbon storage in geologic formations. Most, but not all of the projects’ funding will stem from federal funds. About 23% of the total $35.8 million, four-year project will be funded by private sources.
The risks in carbon capture involve whether or not CO2 will stay within the storage sites or rise to the surface. If the latter, it may just as well have been released at a smokestack. But, if the sequestration technology can bury CO2 deep in the soil, much the way plants transfer it through their roots, and keep it there, then we may finally be able to label the world’s most abundant fossil fuel, coal, as “clean.” But, we can’t forget that the process of pumping CO2 underground does take energy (about 20% more coal would be required), making it perhaps another application for renewable energy.
Other carbon sequestration projects currently underway:
· StatoilHydro (1996), Norway’s North Sea; the world’s first commercial CO2 storage project
· EU’s CO2SINK (2008), Ketzin, Germany
· CO2CRC (2008), Otway Basin, Australia
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