Jeff Wood September 24, 2009

WEST VIRGINIA DIVISION OF ENERGY

Jeff WoodSeptember 24, 2009


Energy Efficienc

y Program

Coalfield Community Developmen

t

----- West Virginia Public Energy

Authority

Who We Are…


Our overall goal is to displace 1.3 billion gallons of oil by 2030. That figure represents 60% of ourstate oil use, our nation’s current level of oil imports. Our savings are reflected in oil use reductionsas well as enhanced resource development.

West Virginia Energy Opportunities Document

www.energywv.org


We have a growing dependence on

imported oil supplies

• Five years ago the daily excess worldwide oil capacity was 3-4 mmbbl. Today - 0

• The monthly Federal trade deficit is $60 billion. Monthly oil imports cost the U.S. $35 billion

• 2/3 of world’s oil reserves are in the Persian Gulf region


The changing world of oil production



W.Va. Coal Distributionfor Power Generation


Natural Gas Deposits Have Been Discovered Across the U.S

Conventional FormationsUnconventional Formations


Renewable Portfolio Standards

• Many state renewable portfolios allow wood-fired electric hydro, solar and wind generation as options

• West Virginia renewable projects now in place provide more than 1,000 megawatts to other PJM state portfolios


States with Portfolio Standards


16,794

1,402

Coal Renewables

Wind: 1,011mw

Hydro: 391 mw**Licensed+unbuilt+underway+outside FERC

West Virginia existing and planned electric

capacity 2009

8 %


West Virginia’s Renewable

Portfolio Standards

•Renewable and Alternative Options in the Standard

•Special consideration to projects on Surface Mined Sites

•10% by 2015; 25% by 2025

•Energy Efficiency incentives in the project as well


• Operational Wind Projects (330 MW) •Shell Wind Energy/Dominion/Nedpower (Mount Storm) 264 MW•Florida Power and Light (WV Wind Energy Center) 66 MW

• Permitted wind projects (461 MW):•Invenergy ( Beech Ridge) 186 MW•US Wind Force (Mt. Storm) 150 MW•AES (Laurel Mountain) 125 MW

•Project before the WVPSC•AES (New Creek) 165 MW•US Wind Force – (Pinnacle) 55 MW

Wind Project Development in West Virginia


Licensed Hydroelectric

Energy in West Virginia

London/Marmet, Kanawha RiverWinfield, Kanawha RiverMillville, Shenandoah RiverLake Lynn, Monongahela RiverHawks Nest & Glen Ferris, New RiverDam No. 4 Hydro Station, Potomac RiverDam No. 5 Hydro Station, Potomac RiverRacine L & D, Ohio RiverNew Martinsville, Ohio RiverBelleville, Ohio RiverSummersville, Gauley River


• Tygart Dam: 20mw• R.D. Bailey Project: 7.8mw• Sutton: 12mw• Jennings Randolph: 10.5mw• Robert C. Byrd: 48mw• Opekiska Lock and Dam (Mon River): 10mw• Hildebrand Lock and Dam (Mon River): 10mw• Morgantown Lock and Dam (Mon River): 9mw

Preliminary licensed

hydroelectric facilities

FERC


The pellet industry in West Virginia

• Hamer Pellet Fuel operates plants in Elkins and Mt. Hope

• Lignetics of West Virginia operates a plant near Glenville, W.Va.


Pellet market growth prospects

• Exports to meet EU electrical needs.

• Commercial applications including institutional and agricultural applications (poultry houses).


Biomass advantages in coal projects

• Biomass can be up to 50 percent of the BTU input.

• Co-firing and carbon sequestration can address CTL’s environmental issues.

• Idaho National Laboratory study indicates that CTL liquids could have the same environmental impact (well to wheel) as conventional petroleum products with biomass co-firing and sequestration.


Issues for biomass in coal projects• Concentration of biomass supply at a

central point is a primary concern • Assuming a 25% biomass blend, a 10,000

b/d plant would require 1.5 million tons of coal a year and 1 million tons of biomass

• The Baard CTL plant is designed for 50,000 b/d

• West Virginia’s use of imported oil could be offset with a 100,000 b/d CTL plant


Helping to relieve the gasoline demand crunch

Cellulosic ethanol is envisioned as a wayto reduce use of imported oils

Source:USDOE EIA Annual Energy Outlook


Barriers to cellulosic ethanol use

• Contains less BTU energy than gasoline• Conversion technologies are still being advanced• Like corn-based ethanol, it is corrosive


• Energy Independence and Security Act (EISA) expands the Renewable Fuel Standard to 36 billion gal/yr of renewable fuel by 2022• Corn ethanol limited to 15 billion of 36 billion gallons in 2022• Remaining 21 billion gallons is advanced biofuels• Biodiesel must be at least 1 billion gallons in 2022• 1/3 of current US corn crop now goes for 8 billion gallons of ethanol

Cellulosic ethanol


West Virginia already has biofuels availableBiodiesel

• Fuel produced from domestic, renewable resources• Can be blended at any level with petroleum diesel to create a biodiesel blendEthanol• An alcohol-based fuel made by fermenting and distilling crops that have been broken down into simple sugars• In the United States, ethanol is generally made from starch crops such as corn or sorghum


• Two public retail E85 locations

Dulaney Oil Co. Ltd.Exxon144 Dents Run Rd. 50 Genesis Blvd.Morgantown, WV 26505 Bridgeport WV 26330

• Must be used in an FFV (Flexible Fuel Vehicle). About forty FFV models are available in 2009: Chrysler, Ford, General Motors, Mazda, Mercedes, Isuzu, Nissan and now Toyota flexible fuel vehicle (FFV) models See http://www.e85fuel.com/e85101/flexfuelvehicles.php

E85 in West Virginia


QUESTIONS?

Jeff WoodWest Virginia Division of Energy

(304) [email protected]

Documents

Jeff Wood September 24, 2009