TURNING THE REST OF THE CORNER
ClearPath Founder Jay Faison and Executive Director Rich Powell began 2018 with their short list for what needs to happen this year to help the U.S. begin to turn the corner on keeping pace with China and others in the global development and deployment of clean energy technologies.
So how’s it going so far? Pretty well. Let’s review:
1. Congress must expand and extend key tax incentives – including 45Q for carbon capture and 45J for advanced nuclear.
Lawmakers included both fixes and extensions in February’s budget deal. What’s next? IRS is currently developing key implementation guidance for both. A bipartisan group of senators has also offered up a sequel of sorts - the USE IT Act - which was approved by the Senate Environment and Public Works Committee in May and would aim to spur key infrastructure such as CO2 pipelines that would send the captured carbon for enhanced oil recovery.
Rich and ClearPath graphics wizard Mitch Kersey just did a great video explainer on EOR and the economic benefits of carbon capture, based on a study ClearPath, the Carbon Utilization Research Council and several unions sponsored.
Rich and ClearPath’s in-house carbon capture expert Justin Ong earlier explained why 45Q alone isn’t enough, echoing ClearPath’s nuclear guru Spencer Nelson’s take on the significance and shortcomings of the 45J fix.
2. DOE’s budget must refocus on truly revolutionary clean energy technologies, establishing “moonshot” goals for our nation’s laboratories and creating a pathway for the the private sector to develop and commercialize these breakthroughs.
Lawmakers may be inching towards including “moonshot” goals for both advanced nuclear and energy storage technologies in a fiscal year 2019 spending strategy.
The House-passed FY19 bill directs DOE to map out moonshot goals for demonstrating advanced nuclear technologies with the private sector by the mid- to late-2020s, similar to bills led by Rep. Clay Higgins (R-La.) and Sen. Jeff Flake (R-Ariz.).
The House and Senate spending strategies also piggyback on bipartisan legislation led by Rep. Steve Knight (R-Calif.) and Flake by directing the energy secretary to launch a department-wide energy storage effort with aggressive performance targets, utilizing the strengths of the agency’s electricity, renewable and science offices to drive down costs and improve performance of grid-scale technologies.
In another of their digital whiteboard videos, Rich and Mitch explain - just as President John F. Kennedy’s original moonshot goal subsequently led to the U.S. landing the first man on the moon - why we need these type of far-reaching yet achievable goals for prioritizing DOE efforts in the race China is now winning to commercialize and export clean energy technologies.
3. NETPower fires up.
The landmark 50-MW demonstration plant in Texas indeed achieved “first fire” in late May, a major milestone in validating the fundamental operability and technical foundation of a new breed of natural gas power plant that produces virtually no carbon emissions. The demonstration plant is expected to generate electricity onto the Texas grid later this year, with the goal of global deployment of 300-MW commercial-scale plants beginning as early as 2021.
If successful, NET Power will greatly simplify the process and equipment needed to produce not just cleaner power, but emission-free power, from natural gas. It would emit no carbon and use no water. Rich and Mitch explained the Allam Cycle, the process used by NET Power and which could also be used with coal, and how it could revolutionize clean energy in the U.S. and globally.
4. Battery storage starts competing with peaker plants.
Falling costs of lithium-ion batteries mean that utilities may soon choose to build a big battery instead of a gas peaker plant, to run on just the highest demand days of the year.
And that’s what’s happening in Arizona. The Salt River Project will build the state’s first standalone energy storage plant for peak power, the first time a standalone battery system serves peak capacity outside of California. Minnesota also sees this as economic in a couple more years.
This is by no means an exhaustive list.
This spring’s 9th annual Clean Energy Ministerial in Copenhagen launched two significant U.S.-led efforts to better recognize carbon capture and advanced nuclear as clean energy tools. But ClearPath’s policy triumvirate - Jeremy Harrell, Spencer Nelson and Justin Ong - were there and detailed why there is still much work to do to elevate those issues on the global stage, including at next year’s ministerial hosted by Canada.
On the domestic front, this June Jay was named to DOE’s Nuclear Energy Advisory Committee (NEAC), which will offer advice and recommendations from a range of experts to the assistant secretary for nuclear energy. Jay highlighted some initial thoughts he is bringing to the NEAC table and the role DOE must take to advance the U.S. nuclear sector.
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