Transcript Slide 1

THE WORLD ENERGY
CHALLENGE
is
A GREAT OPPORTUNITY FOR
KANSAS
Almost All U.S. Ethanol Plants Are Located in
the U.S. Midwest
Argonne National Laboratory: Energy Systems Division Seminar. August 2005.
U.S. Ethanol Plants and Capacities by State
IA
MN
NE
SD
KS
IL
WI
IN
ND
MI
MO
(28) 1,796 MGY
(16) 677 MGY
(15) 781 MGY
(14) 627 MGY
(10) 360 MGY
(7)
679 MGY
(6)
280 MGY
(5)
312 MGY
(4)
263 MGY
(4)
212 MGY
(4)
155 MGY
CA
CO
KY
TN
AZ
OR
NM
WY
OH
VA
(4)
(3)
(2)
(1)
(1)
(1)
(1)
(1)
(1)
(1)
69 MGY
85 MGY
35 MGY
67 MGY
55 MGY
35 MGY
30 MGY
11 MGY
4 MGY
unknown
Total U.S. Capacity = 6.4 BGY
Additional Capacity Under Construction = 6.0 BGY
Source: American Coalition for Ethanol; Renewable Fuels Association – July 2007
Biofuels
Overview
10 Ethanol
Plants Existing
360 MGY
5 Ethanol
Plants are
Permit
Pending
518 MGY
ETHANOL
In Kansas
6 Ethanol
Plants Under
Construction
427 MGY
4 Ethanol
Plants Are
Permitted
308 MGY
*MGY: Million gallons per year
U.S. Ethanol Plants and Capacities by State
IA
MN
NE
SD
KS
IL
WI
IN
ND
MI
MO
(28) 1,796 MGY
(16) 677 MGY
(15) 781 MGY
(14) 627 MGY
(10) 360 MGY
(7)
679 MGY
(6)
280 MGY
(5)
312 MGY
(4)
263 MGY
(4)
212 MGY
(4)
155 MGY
CA
CO
KY
TN
AZ
OR
NM
WY
OH
VA
(4)
(3)
(2)
(1)
(1)
(1)
(1)
(1)
(1)
(1)
69 MGY
85 MGY
35 MGY
67 MGY
55 MGY
35 MGY
30 MGY
11 MGY
4 MGY
unknown
KS Today
787
KS Tomorrow
1613
Total U.S. Capacity = 6.4 BGY
Additional Capacity Under Construction = 6.0 BGY
Source: American Coalition for Ethanol; Renewable Fuels Association – July 2007
Energy Issues were prominently featured in State of the State
Address by Governor Sebelius…
“Our goal is to produce 10 percent of our
state’s electricity from wind power by 2010,
and 20 percent by 2020. ”
….State of the State Address, Jan. 10, 2007
Certainty Rating of the Wind Resource
Estimates for Areas with Class 3 or Higher Wind
Power in the Contiguous United States
http://rredc.nrel.gov
Wind Energy Projects
As of Dec 31, 2006
Kansas Wind Projects – In operation and announced
WIND PROJECT (County)
DEVELOPER
UTILITY
SIZE
Jeffery Energy Center (Pottawatomie Co.)
Westar
Westar
1.5 MW
1999
Gray County Wind Farm (Gray Co.)
FPL Energy
Aqula
112.2 MW
2001
Elk River Wind Facility (Butler Co.)
PPM Energy
Empire
150 MW
2005
Spearville Wind Energy Facility (Ford Co.)
enXco
KCP&L
100.4 MW
2006
Smoky Hills Wind Farm (Ellsworth/Lincoln Cos)
Tradewind
Sunflower
50.4 MW
2007 (4th Qtr)
KC BPU
25 MW
2007 (4th Qtr)
Midwest
25.2 MW
2007 (4th Qtr)
Westar
500 MW
250 MW by 2008
Westar Announcement (2/26/07)
RFP Due 4/2/07
YEAR_______
250 MW by 2010
KCP&L Announcement (3/20/07)
RFP Due 6/15/07
KCP&L
400 MW
100 MW by 2008
300 MW by 2012
Meridian Way Wind Farm
Horizon Wind Energy, LLC
Empire
201MW
2007
Compiled by Kansas Energy Office (April 2007)
1800
1600
1565.7
1400
1265.7
1200
1000
800
MW
600
665.7
400
364.1
200
0
Existing
Existing and Under
Construction
Existing, Under
Construction and
Announced by 2010
Existing, Under
Construction, Announced
by 2010 and Announced
by 2012
People Want Renewable Energy!
Total Installed Wind Capacity
80000
75000
70000
1. Germany: 20952 MW
2. Spain: 12500 MW
3. United States: 12376 MW
4. India: 7093 MW
5. Denmark: 3136 MW
65000
60000
Capacity (MW)
55000
50000
45000
40000
35000
30000
World total July 2007: 78728 MW
25000
20000
15000
10000
5000
Source: WindPower Monthly
Rest of World
07
20
06
20
04
03
05
20
20
20
02
20
01
00
20
20
99
19
98
97
19
96
Europe
19
19
95
19
94
93
92
United States
19
19
19
91
19
89
90
19
88
19
19
87
19
85
86
19
19
84
19
83
19
19
82
0
KANSAS AS A WIND
EXPORTER
FOR IT TO HAPPEN
• New wind becomes cheaper than new coal
• Congress passes a National RPS
• Congress passes a Carbon Tax
Wind Cost of Energy
COE (¢/kWh [constant 2000 $])
12
Natural Gas (fuel only)
10
8
Low wind speed sites
6
2007: New Wind
New Bulk Power
Competitive Price Band
High wind
speed sites
4
2
1990
Depreciated Coal
Depreciated Wind
1995
2000
2005
2010
2015
2020
In 2006, Wind Projects Built Since 1997 Were
Competitive with Wholesale Power Prices in Most Regions
Case Study: Texas
Utilities and wind companies
invested $1B in 2001 to build
912 MW of new wind power,
resulting in:
• 2,500 quality jobs with a
payroll of $75M
• $13.3M in tax revenues
for schools and counties
• $2.5M in 2002 royalty
income to landowners
• Another 2,900 indirect
jobs as a result of the
multiplier effect
• $4.6M increase in Pecos
County property tax
revenue in 2002
Case Study: Minnesota
107-MW Minnesota wind
project
• $500,000/yr in lease
payments to farmers
• $611,000 in property taxes
in 2000 = 13% of total
county taxes
• 31 long-term local jobs and
$909,000 in income from
O&M (includes multiplier
effect)
Case Study: Iowa
240-MW Iowa wind
project
• $640,000/yr in lease
payments to farmers
($2,000/turbine/yr)
• $2M/yr in property taxes
• $5.5M/yr in O&M income
• 40 long-term O&M jobs
• 200 short-term
construction jobs
• Doesn’t include multiplier
effect
Economic Impacts to Kansas
from 7158 MW of new wind development by 2030
Wind energy’s economic “ripple effect”
Direct Impacts
Payments to Landowners:
• $20.8 million/year
Local Property Tax Revenue:
• $19 million/year
Construction Phase:
• 11,133 new construction jobs
• $1.35B to local economies
Operational Phase:
• 1805 new long-term jobs
• $152M/yr to local economies
Indirect Impacts
Induced Impacts
Construction Phase:
Construction Phase:
• 5,000 new jobs
• $424M to local
economies
• 6,223 new jobs
• $559 M to local
economies
Operational Phase:
Operational Phase:
• 438 local jobs
• $43 M/yr to local
economies
• 850 local jobs
• $76 M/yr to local
economies
Totals (construction + 20 yrs)
Total economic benefit to Kansas = $7.8 billion
New local jobs during construction = over 23,000
New long-term jobs for Kansans = over 3,000
Construction Phase = 1-2 years
Operational Phase = 20+ years
HOW WE CAN MAKE THIS HAPPEN?
WE BRING EVERYONE
TOGETHER…
ENVIRONMENTALISTS, UTILITIES, AND
CONSUMER ADVOCATES MUST COME
TOGETHER IN AN UNPRECEDENTED WAY