$2.3 Billion for Clean Energy Manufacturing
President Obama announced on January 8 the award of $2.3 billion in Advanced Energy Manufacturing Tax Credits for clean energy jobs and manufacturing projects across the U.S.
Funding for the tax credits, which comes from the Recovery Act, will go to 183 energy enterprises in 43 states involved in manufacturing components and systems relating to solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support renewable energy; energy conservation technologies; and carbon sequestration equipment. Companies will produce next-generation wind turbine blades, smart meters, and double-reflective glass for solar panels, among others.
For example, to boost the smart grid, Itron, Inc. is making one of the first residential smart meters that provides built-in, two-way communications and a remote on/off switch, giving customers more choice while enabling utilities to provide higher reliability at lower cost.
The investment tax credits, worth up to 30% of the cost of each planned manufacturing project, will leverage private capital for a total investment of nearly $7.7 billion in U.S. high-tech manufacturing. President Obama says the awards will "help close the clean energy gap" between the U.S. and other countries, while creating jobs and reducing carbon emissions.
The projects were competitively selected through a merit review process – the companies chosen say they will create over 17,000 jobs. While projects selected for this tax credit generally must be placed in service by 2014, about a third will be completed in 2010.
Manufacturers of solar PV modules and components garnered about 40% of the tax credits, including more than $400 million for materials and component manufacturers such as AE Polysilicon Corp.; Dow Corning; DuPont; Hemlock Semiconductor Corp.; PPG Industries, Inc.; REC Silicon; Solaicx; and Wacker Polysilicon North America LLC, plus more than $500 million for both established and up-and-coming solar cell and module manufacturers like Abound Solar, Inc.; Amonix, Inc.; BP Solar International, Inc.; First Solar, Inc.; Konarka; Miasole; Nanosolar; Schott Solar, Inc.; Sharp Electronics Corp.; Spire Semiconductor, LLC; Stion Corporation; Suniva, Inc.; SunPower Corporation; Suntech; United Solar Ovonic, LLC; and Xunlight Corporation. See the DOE press release, the tax credit fact sheet, and the full list of projects (Excel 115 KB).
DOE to Award $187 Million to Improve Car, Truck Fuel Efficiency
DOE announced on January 11 that it will award $187 million, including $100 million in ARRA funds, to 9 projects to improve fuel efficiency for heavy-duty trucks and passenger vehicles.
With a private cost share of 50%, the funding will support nearly $375 million in research, development, and demonstration projects across the country. Currently, the transportation sector accounts for 28% of total U.S. energy use; by 2030, the new technologies could save over 100 million gallons of gasoline and diesel fuel a day, reducing carbon emissions from on-road vehicles by 20%.
$115 million goes to three projects which will focus on cost-effective measures to improve the efficiency of Class 8 long-haul freight trucks by 50%. The projects will develop and demonstrate systems-level fuel efficiency technologies by 2015, including technologies to improve aerodynamics, reduce engine idling, recover waste heat, improve combustion, and incorporate hybrid electric systems into truck powertrains.
Cummins Inc., for example, will use $38 million to build a highly efficient and clean diesel engine, an advanced waste heat recovery system, an aerodynamic Peterbilt tractor and trailer combination, and a fuel cell auxiliary power unit to reduce engine idling.
The other projects will receive $71 million to support efforts to increase fuel economy in passenger vehicle engines and powertrains. The goal is to develop engine technologies that, on their own, improve passenger vehicle fuel economy by 25%-40% by 2015.
In this area, Ford Motor will receive $15 million to achieve a 25% fuel economy improvement with a gasoline engine in a 2010 sedan using such approaches as engine downsizing, turbocharging, direct injection, and a novel exhaust after-treatment system. Chrysler and General Motors Corporation will also receive awards. See the DOE press release.
DOE to Award $47 Million to Boost IT, Telecom Energy Efficiency
DOE announced on January 6 that it will award $47 million in ARRA funds for 14 projects across the country to improve energy efficiency in the information technology (IT) and communication technology sectors. The Recovery Act funds will be matched by over $70 million from private industry.
IT and telecommunications facilities account for about 120 billion kWh of electricity annually, equaling 3% of all U.S. electricity consumption. Advances in the sectors’ energy efficiency can produce energy and cost savings while reducing carbon pollution.
The new funding is for research, development, and demonstration projects in three areas: equipment and software, focused on the core components such as servers and networking devices, as well as software to optimize energy use; technologies aimed at cutting power loss and heat generation that occurs as electricity moves through server-based systems; and advanced cooling technologies.
Power Assure, Inc., for example, will use $5 million to develop power management software, which could cut energy use 50% in large server farms by turning servers off and on when needed.
Another company, Federspiel Controls, will use a $584,000 grant to develop a cooling system that employs variable fan speeds, adjustable air inlets, and wireless temperature sensors to monitor and adjust temperatures in data centers. The company estimates that cooling systems typically account for 25% of a data center’s energy use. See the DOE press release, the list of awardees (PDF 17 KB), and DOE’s Industrial Technologies Program Web site.
Also, DOE’s Lawrence Berkeley National Lab (LBNL) is working directly with Silicon Valley companies to demonstrate energy-efficient data center technologies, such as temperature sensors embedded in servers to control cooling, modular cooling systems, and dynamic cooling systems connected to wireless sensors. LBNL is providing technical assistance to the Silicon Valley Leadership Group with funding from the California Energy Commission.
According to a recent analysis by Frost & Sullivan, there is a growing interest in energy efficiency solutions for data centers as companies look for ways to cut costs during the economic downturn. For an average company, Frost & Sullivan estimates that IT infrastructure accounts for 5%-10% of the company’s total energy consumption. See the press releases from LBNL and Frost & Sullivan.
DOE: Additional Energy Efficiency Enforcement Action to Protect Consumers
DOE announced on January 7 that it has entered into a Consent Decree with Haier America, resolving an investigation into whether Haier violated DOE’s energy efficiency standards.
DOE’s investigation led Haier to determine that a parts defect caused certain freezers to consume more energy than was represented to consumers, possibly violating DOE’s energy efficiency standards and the Energy Star requirements for freezers. As part of the Obama Administration’s commitment to enforcing energy efficiency, the Consent Decree obligates Haier to notify affected consumers, repair defective units, extend the warranty by one year, and pay a voluntary contribution of $150,000 to the U.S. Treasury.
During the investigation by DOE’s Office of General Counsel, Haier voluntarily identified the freezer parts defect and took immediate steps to remedy it. Haier’s cooperation with the DOE investigation was critical in reaching the Consent Decree, the first ever entered into by DOE to enforce minimum energy efficiency standards. DOE encourages all manufacturers to follow Haier’s example.
DOE also announced it has received certifications from 160 manufacturers for more than 600,000 residential appliances in 15 different product categories in response to its enhanced energy efficiency enforcement efforts. DOE recently informed manufacturers that they had until January 8 to submit correct energy-use data before aggressive enforcement actions would be taken. See the DOE press release.
DOE to Support Clean Energy Projects in Costa Rica, Caribbean
DOE has selected three initial projects under the Low-Carbon Communities of the Americas program, launched in June 2009 to assist countries in Latin America with sustainable energy market transformation initiatives.
The three projects include an energy efficiency center in Costa Rica, a project to study and install small wind turbines on the Caribbean island of Dominica, and a broader effort to create low-carbon communities in the Caribbean.
The Costa Rican energy efficiency center will train professionals in energy efficient technologies and auditing procedures and help expand the technical knowledge base and capabilities of countries across Central America. The project will bring together DOE; the Natural Resources Defense Council; ICE Grupo, Costa Rica’s electricity and telecommunications group; and the University of Costa Rica.
In Dominica, small wind turbines will be examined in terms of available technologies, economics, feasibility, commercialization strategies, and impacts on the electrical grid, leading to the pilot installation of turbines and a public information campaign.
Dominica is also part of a broader effort in the Caribbean, under which the Organization of American States and selected Caribbean governments will enable participating countries to expand development and use of renewable energy and energy efficiency systems. The project will also involve the island governments of Antigua and Barbuda, The Bahamas, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines.
DOE invited countries to submit proposals for collaboration in areas including renewable energy development and building and industrial energy efficiency. DOE’s National Renewable Energy Lab, along with other national labs, will provide technical assistance to countries receiving support under the initiative. See the DOE press release.
Labor Department Awards $155 Million to Support Green Jobs
The U.S. Department of Labor awarded nearly $100 million in green jobs training grants from the Recovery Act. As part of the $500 million ARRA initiative, the funds will support job training programs to help dislocated workers and others to find jobs in green industries and related occupations.
25 projects will receive grants ranging from $1.4 to $5 million; about $28 million will support projects in communities impacted by auto industry restructuring. Training activities funded through this grant program will be individually tailored based on occupations and skills identified as in demand in local areas around the country. Training programs will seek to prepare workers for a range of careers, including hybrid electric auto technicians, weatherization specialists, wind and energy auditors, and solar panel installers. See the Labor Department press release and the full list of grantees (PDF 233 KB).
In November, the Labor Department announced two other categories of grant awards totaling $55 million under the larger Recovery Act initiative: State Labor Market Information Improvement grants and Green Capacity Building grants.
The Green Capacity grants, totaling $5.8 million, will increase the training capacity of 62 current Labor Department grant recipients through a variety of strategies, and will offer training opportunities to help individuals acquire jobs in expanding green industries. The grants will help serve underserved communities.
The State Labor Market Information Improvement grants, totaling $48.8 million, will support collection and dissemination of labor market information, and will enhance the labor exchange infrastructure to provide career opportunities in clean energy industries. Grantees will be able to employ strategies that enable job seekers to connect with green job banks and help ensure that workers find employment after completing training. See the Labor Department press release and the full list of grantees (PDF 390 KB).
EIA Sees Gasoline Hitting $3 per Gallon by Summer
A slow but steady growth in U.S. gasoline consumption is expected to drive prices at the pump for regular-grade gasoline above $3 per gallon by spring or summer, according to DOE’s Energy Information Administration (EIA).
The EIA’s latest "Short-Term Energy Outlook," released on December 12, projects that regular-grade gasoline prices will average $2.84 per gallon in 2010, rising to $2.94 per gallon in 2011. Retail prices for diesel fuel will also escalate, averaging $2.98 per gallon in 2010 and $3.14 per gallon in 2011.
Meanwhile, crude oil prices actually fell in December 2009, averaging only $74.50 per barrel, although prices were back up to $79 per barrel by the end of the month. The EIA expects crude oil spot prices to weaken over the next few months before regaining strength, gradually rising to $85 per barrel by the end of 2011. See the EIA’s "Short-Term Energy Outlook."
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EREE Network News is a weekly publication of the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE).
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