FW: [sustainable] EERE Network News -- 02/09/05

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From: "EERE Network News"

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A weekly newsletter from the U.S. Department of Energy's (DOE)
<http://www.eere.energy.gov/>Office of Energy Efficiency and Renewable
Energy (EERE). The EERE Network News is also available on the Web at:
<http://www.eere.energy.gov/news/>www.eere.energy.gov/news/


February 09, 2005




News and Events

    * White House Budget Boosts Funding for Hydrogen
    * 2005 Budget Includes Tax Incentives for Renewables and Clean Vehicles
    * DOE Proposes $1.2 Billion for Efficiency and Renewables in 2006
    * Bush Administration Pushes Renewable Energy on Public Lands
    * Lexus Hybrid SUV Aims for 30 mpg in City Driving
    * U.K. and China Plan to Build Wave and Tidal Energy Plants


Site News

    * Please Update Your Links and Bookmarks to the EERE Web Site


Energy Connections

    * EIA: Oil Prices to Stay Above $40 per Barrel Through 2006
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News and Events




White House Budget Boosts Funding for Hydrogen

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A man works on the frame of a vehicle in the background of this


A worker installs door components on the Ford Focus Fuel Cell Vehicle
(FCV). The President's Hydrogen Fuel Initiative could allow such vehicles
to be commercialized by 2015.
Credit: Ford Motor Company

President Bush released his proposed federal budget for fiscal year 2006 on
Monday, and despite tight constraints on discretionary spending, the budget
includes $260 million for the President's Hydrogen Fuel Initiative, an
increase of $35 million over 2005 funding levels. The Hydrogen Fuel
Initiative is a $1.2-billion, five-year commitment to develop the
fundamental science and technologies to produce, store, and distribute
hydrogen for use in fuel-cell vehicles, electricity generation, and other
applications. The 2005 budget continues strong support for high-risk,
high-payoff basic research that is closely coupled and coordinated with the
initiative's applied research and development programs.

Research funded through the initiative has already led to reduced costs for
fuel cells, and progress continues on other technological challenges in
hydrogen production and storage. According to DOE, technological advances
have reduced the estimated cost to produce automotive fuel cells at high
volumes from $275 per kilowatt, based on the state of technology in 2002,
to $200 per kilowatt, based on the state of technology in 2004. Additional
research is needed for fuel cells to achieve the cost target of less than
$50 per kilowatt, which roughly equates to the cost of today's internal
combustion engines. With complementary work ongoing under the FreedomCAR
partnership, these efforts keep the Hydrogen Fuel Initiative on track for
the industry to make a decision on commercialization by 2015. See the
<http://www.whitehouse.gov/omb/budget/fy2006/energy.html>White House
summary of the DOE budget.


2005 Budget Includes Tax Incentives for Renewables and Clean Vehicles

President Bush's proposed federal budget for fiscal year 2006 includes tax
incentives totaling $3.6 billion through 2010 to spur the use of renewable
energy and energy-efficient technologies. The Bush Administration proposes
extending the tax credit for producing electricity from wind, biomass, and
landfill gas through January 1, 2008, while excluding electricity produced
from agricultural livestock wastes. The Administration proposes a partial
credit­running from 2006 through the end of 2008­for the use of biomass
sources that are not specifically grown as a power source (so-called
"open-loop" biomass) when co-fired with coal in a coal plant. The
Administration also proposes a 10-percent investment credit for businesses
that install a combined heat and power system that produces more than 50
kilowatts of power or more than 67 horsepower, if placed in service between
December 31, 2004, and January 1, 2010.

For individuals, the Administration proposes a tax credit for the purchase
of residential solar energy systems, equal to 15 percent of the cost of the
equipment and its installation, up to a maximum of $2,000. The credit would
apply to photovoltaic equipment placed in service after December 31, 2004,
and before January 1, 2010, and to solar water heating equipment placed in
service after December 31, 2004, and before January 1, 2008.

Buyers of hybrid electric vehicles would benefit under a proposal to extend
the current $4,000 federal tax credit through January 1, 2009. However, the
Administration proposes adjusting the credit based on the percentage of the
vehicle's power provided by the energy storage system and based on the
amount that the vehicle's fuel economy exceeds the 2000 model year fuel
economy in city driving. The Administration also proposes a credit of up to
$8,000 for fuel cell vehicles purchased before January 1, 2013, with
adjustments again based on the vehicle's fuel economy. See pages 288 and
289 (PDF pages 300 and 301) of "Analytical Perspectives"
(<http://www.whitehouse.gov/omb/budget/fy2006/pdf/spec.pdf>PDF 2.6 MB), a
detailed budget document.
<http://www.adobe.com/products/acrobat/alternate.html>Download Acrobat
Reader.


DOE Proposes $1.2 Billion for Efficiency and Renewables in 2006

President Bush's proposed federal budget for fiscal year 2006 includes
roughly $1.2 billion for the DOE Office of Energy Efficiency and Renewable
Energy (EERE). The proposed EERE budget emphasizes hydrogen technologies;
offshore wind power; renewable and synthetic fuels; biorefineries; and a
new collaborative initiative on crystalline silicon solar cells. In
addition, the proposed budget increases funding for DOE's Weatherization
Assistance Program. DOE plans to shift the emphasis of its Industrial
Technologies Program from industry-specific research to multi-industry,
high-risk research that could achieve significant energy savings. DOE also
plans to transfer EERE's successful research and development of hydropower
turbines and water management techniques to industry, thereby closing out
EERE's involvement in hydropower technologies. See the
<http://www.eere.energy.gov/office_eere/budget.html>fiscal year 2006 budget
documents on the EERE Web site.


Bush Administration Pushes Renewable Energy on Public Lands

The U.S. Department of Interior announced last week the availability of a
new report that highlights the Bush administration's efforts to increase
interest in the development and use of renewable energy resources on U.S.
public lands. The 26-page report, "Renewable Resources for America's
Future," shows that lands managed by the Interior Department provide 48
percent of the nation's geothermal energy, 17 percent of hydropower, and
nearly 10 percent of wind energy production in the United States.

Since 2001, the Interior Department's Bureau of Land Management (BLM) has
processed 200 geothermal lease applications, compared to 20 in the
preceding four years. In 2003, the Interior Department licensed two new
49-megawatt geothermal power plants in California, the first such approvals
in over 10 years. The department also approved two geothermal power plant
expansions and one new 30-megawatt power plant in Nevada. In the same
timeframe, the BLM issued more than 60 rights-of-way for wind energy
testing and development, quadrupling the number of permits nationwide. And
as a result of increased interest in the development of wind on public
lands, the agency is also preparing a
<http://windeis.anl.gov/index.cfm>comprehensive Environmental Impact
Statement to address wind development, which is scheduled for completion
this summer. See the
<http://www.doi.gov/news/05_News_Releases/050204b>Interior Department press
release, or go directly to the report
(<http://www.doi.gov/initiatives/renewable_energy.pdf>PDF 1.6 MB).
<http://www.adobe.com/products/acrobat/alternate.html>Download Acrobat
Reader.


Lexus Hybrid SUV Aims for 30 mpg in City Driving

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A photo of the Lexus 400h.


The Lexus 400h, the world's first luxury hybrid SUV, will hit the road in
April.
Credit: Lexus

Lexus is gearing up for the launch of its hybrid electric sports utility
vehicle (SUV), the RX 400h, in April, and announced last week that the
vehicle should achieve 30 miles per gallon (mpg) in city driving, a 67
percent improvement over the comparable RX 330. Lexus estimates that the RX
400h will achieve 26 mpg on the highway, for a combined mileage of 28 mpg.
The RX 400h will draw on a maximum 268 horsepower and 3,500 foot-pounds of
torque from a standstill to accelerate faster than the RX 330, reaching 60
miles per hour in only 7.3 seconds. Lexus has not yet announced its
suggested retail price for the vehicle.

The RX 400h employs three motor-generators in its powertrain. The
engine-driven generator can charge the battery pack or power other electric
motors as needed, and serves as a starter motor for the engine. By
regulating the amount of electrical power it produces, the generator also
controls the output speed of the transaxle, eliminating any need for a
clutch or viscous coupling in the transmission. Power from the engine and a
123-kilowatt front drive motor is distributed to the drive wheels via a
continuously variable transmission, while a 50-kilowatt motor drives the
rear axle. The RX 400h combines all that with Electronic Power Steering and
a new Electronically Controlled Brake system to yield a new integrated
control system for stability and traction, called the Vehicle Dynamics
Integrated Management System. And if that's not enough technology for you,
the RX 400h includes enough high-tech features to make a gearhead dizzy.
See the 
<http://pressroom.toyota.com/photo_library/display_release.html?id=20050201b
>Lexus 
press release and preliminary product sheet
(<http://pressroom.toyota.com/presstxt/2006lexuskit/2006lex400h_s.pdf>PDF
128 KB). <http://www.adobe.com/products/acrobat/alternate.html>Download
Acrobat Reader.

A new report from J.D. Power and Associates says that the growing number of
hybrid vehicles available in the United States will not translate into
significant market share. Although the report anticipates that 38 hybrid
vehicle models will be available by 2011, it also expects the hybrid share
of the U.S. automotive market to peak at 3 percent around that time. See
the <http://www.jdpower.com/news/releases/pressrelease.asp?ID=2005013>J.D.
Power press release.


U.K. and China Plan to Build Wave and Tidal Energy Plants

Both the United Kingdom and China are working to build wave energy
demonstration plants within the next few years. U.K. Energy Minister Mike
O'Brien announced last week that the United Kingdom will commit about $79
million (42 million pounds) to a new scheme that aims to result in
large-scale wave and tidal energy plants contributing to the nation's power
grid within three years. The funds will support the construction of
demonstration plants around the United Kingdom. Meanwhile, China's
Guangzhou Institute of Energy Conversion, part of the Chinese Academy of
Sciences, is working to develop a 100-kilowatt on-shore wave power station
on the east bank of Nan-Ao Island. See the
<http://www.gnn.gov.uk/environment/detail.asp?ReleaseID=143807>U.K. press
release and the 
<http://www.giec.ac.cn/giec/giec_english/division/ocean/p-100w.htm>Guangzhou
Institute Web site.

A detailed study of wave energy technology by the Electric Power Research
Institute (EPRI) suggests that wave power may become economically feasible
in the near future. The study examined five potential wave energy sites in
the United States and determined that facilities at three of the five sites
would be economically feasible once a total of 20,000 megawatts of wave
power capacity has been built. That forecast is based on technology
learning curves that would be expected to result in cost savings. As a
result, EPRI concluded that the technology warrants additional research and
development. See the
<http://www.epri.com/corporate/discover_epri/news/2005/020205_WaveEnergy.htm
l>EPRI 
press release or go directly to EPRI's
<http://www.epri.com/targetWhitePaperContent.asp?program=267825&value=04T084
.0&objid=297213>wave
energy reports.

The recent wave energy announcements come as a number of related
conferences are approaching. In late April, Energy Ocean 2005 comes to
Washington, D.C., presented by the newly revived Ocean Energy Council. That
conference is bookended by the Marine Renewable Energy Conference­sponsored
by the British Wind Energy Association (BWEA) and held in London in early
March­and by the Renewable Power Association's Wave and Tidal Technology
Symposium, better known as WATTS 2005, which takes place in Aberdeen,
Scotland, in late May. See the <http://www.energyocean.com/>Energy Ocean,
<http://www.bwea.com/marine/conference.html>BWEA, and
<http://www.r-p-a.org.uk/article_default_view.fcm?articleid=1180>WATTS Web
sites.
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Site News




<http://www.eere.energy.gov/>Please Update Your Links and Bookmarks to the
EERE Web Site

Two years ago, DOE's Office of Energy Efficiency and Renewable Energy
(EERE) moved its Web site to a new
address—<http://www.eere.energy.gov/>www.eere.energy.gov—and left the
old "EREN" name behind. And for the past two years, EERE has been good
enough to allow anyone entering the old EREN Web address to be seamlessly
redirected to the new Web address, a process so quick and automatic that
many people may not have even noticed the change. But those times are over!
As of last week, anyone using the old Web address will end up at a Web page
that warns that their link is outdated and points them to the new home
page. If you haven't updated your links and bookmarks to the new site,
please do so now! A recent tally using a popular search engine indicated
that more than 60,000 links still go to the old EREN Web address.


Energy Connections




EIA: Oil Prices to Stay Above $40 per Barrel Through 2006

Oil prices for the first quarter of 2005 are expected to average $46.70 per
barrel, according to DOE's Energy Information Administration (EIA). The
EIA's latest "Short Term Energy Outlook," released yesterday, expects oil
prices to remain above $40 per barrel throughout this year and next,
despite increased oil inventories in industrialized countries and slower
growth in oil demand. See the EIA's
"<http://www.eia.doe.gov/emeu/steo/pub/contents.html>Short Term Energy
Outlook."

While oil supplies appear to have stabilized, at least for the short term,
the Royal Dutch/Shell Group of Companies continues to adjust its estimates
of available oil and gas supplies. Shell announced last week that it is
again cutting its estimate of proved oil and gas reserves by 10 percent­the
equivalent to 1.4 billion barrels of oil­to the equivalent of 12.95 billion
barrels of oil. A year ago, the company cut its oil and gas reserves by 20
percent, the equivalent of 3.9 billion barrels of oil. The petroleum
company also continues to struggle with replacing its oil and gas
production with new oil and gas reserves. Most companies aim to replace 100
percent of their production with new reserves, a percentage known as the
reserves replacement ratio (RRR). Not counting divestments, Shell's RRR for
2004 is in the range of 31 to 41 percent. However, the company claims that
it is still targeting a 100 percent RRR for the 2004 to 2008 period, with
much of its new proved reserves added in the latter part of the five-year
period. See Shell's
"<http://www.shell.com/home/Framework?siteId=investor-en&FC2=/investor-en/ht
ml/iwgen/quarterlyresults/2004/zzz_lhn.html&FC3=/home/investor-en/html/iwgen
/quarterlyresults/2004/q4_2004_results_02022005.html>Fourth
Quarter and Full Year Results 2004."

This newsletter is funded by DOE's <http://www.eere.energy.gov/>Office of
Energy Efficiency and Renewable Energy (EERE) and is also available on the
<http://www.eere.energy.gov/news/>EERE news page. You can
<http://www.eere.energy.gov/news/about.cfm>subscribe to the EERE Network
News using our simple online form, and you can also
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If you have questions or comments about this newsletter, please
<http://www.eere.energy.gov/news/editor.cfm>contact the editor.
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