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Oil firm plans natural gas-powered cryptocurrency mining in Alaska
Nov 19, 2024

OIL & GAS: A petroleum firm and a data center developer plan to install a natural gas-powered cryptocurrency mining facility at an oil and gas well on Alaska’s North Slope. (Northern Journal)

ALSO: A petroleum executive predicts only moderate oil and gas production increases during a more permissive Trump administration, with most of the gains coming from the Permian Basin. (Hart Energy)

HYDROPOWER:

SOLAR:

  • A Colorado researcher looks to grow crops, increase buildings’ efficiency and generate electricity by installing solar panels over rooftop gardens on Denver highrises. (Colorado Sun)
  • An Idaho city acquires enough solar power to offset 100% of its airport’s and wastewater treatment facility’s energy use as part of an effort to achieve community-wide carbon neutrality by 2050. (Idaho Capital Sun)
  • The U.S. Agriculture Department awards 15 Montana entities $600,000 to install solar arrays and more efficient equipment. (NBC Montana)

HYDROGEN: A New Mexico electrical cooperative proposes a solar-powered green hydrogen production facility and energy storage system using treated wastewater from an abandoned mine. (Clean Technica)  

STORAGE: An Arizona utility proposes a 200 MW battery energy storage system with the capacity to power 45,000 homes for four hours during peak demand. (news release)

ELECTRIC VEHICLES: Oregon has recorded 102,461 zero-emissions vehicle registrations, a 400% increase from 2019. (OPB)

GEOTHERMAL: The federal Bureau of Land Management plans to auction 6,061 acres in western Utah for geothermal power development. (St. George News)

UTILITIES: A Washington state utility pushes back on Bonneville Power Administration’s preference for SPP’s day-ahead power market, saying the California grid operator’s competing proposal would yield more benefits. (RTO Insider, subscription)

LITHIUM: The developer of the contested Rhyolite Ridge lithium mine in Nevada plans to move forward even if the incoming Trump administration kills federal electric vehicle incentives. (NPR)

POLITICS: Nevada conservationists predict the incoming Trump administration will stifle clean energy development on public lands in the state and encourage new natural gas plants. (Nevada Current)

COMMENTARY: A New Mexico petroleum executive urges developers of a proposed liquefied natural gas export facility to draw from oil and gas fields across the West, rather than relying entirely on the Permian Basin. (Santa Fe New Mexican)

Boise Airport now powered by 100% renewable energy through Idaho Power program
Nov 19, 2024

This article was originally published by the Idaho Capital Sun.

The Boise Airport became powered by 100% renewable energy this fall after Boise opted to be the first city to sign on to an optional new renewable energy program through Idaho Power.

The city of Boise is purchasing enough solar energy to power both the Boise Airport and the Lander Street wastewater treatment facility through 100% renewable energy, Steve Hubble, climate action manager for the city of Boise, said in an interview Thursday.

The Boise Airport is likely the first municipally-owned major airport in Idaho to become 100% solar energy powered. Hubble said he isn’t familiar enough with municipalities in North Idaho or eastern Idaho, which work with different utility companies, to know what their energy mix is.

“We’re the first municipality in Idaho to enter one of these Clean Energy Your Way contracts, so that’s pretty exciting in and of itself,” Hubble said. “And then from a quantitative perspective, I’m always going to link that back to what the city’s goals are.”

The move to powering its facilities by renewable energy represents Boise moving forward on climate policies at a time when the Idaho Legislature is actively pushing back against environmental and climate programs. While the Idaho Legislature has not established formal climate goals, the city of Boise has specific goals it bases climate policies around.

  • Power city government by 100% renewable energy by 2030.
  • City government operations become carbon neutral by 2035.
  • Power the entire community by 100% clean electricity by 2035.
  • The community becomes carbon neutral by 2050.

Making the Boise Airport and Lander Street wastewater treatment plant 100% renewable-powered brings the city to 25% of its 2030 renewable energy goal for city government.

Boise Lander Street Wastewater Treatment plan
Starting in the fall of 2024, the city of Boise is buying enough solar energy to power the Lander Street Wastewater Treatment plant and the Boise Airport. (Courtesy of City of Boise)

“So in other words, if you look at all the city’s electricity usage right now, about a quarter of it is being powered by renewable electricity, because the airport and Lander Street are two of our three biggest electricity-using facilities,” Hubble said.

How did Boise make its airport and a water treatment plant renewable energy powered?

Boise had been powering the airport and Lander Street facility with the standard energy it received from Idaho Power, which includes an energy portfolio of renewable energy like hydro as well as nonrenewable energy sources, like coal. To go 100% renewable, the city bought enough renewable solar energy to cover 100% of the energy those two facilities use.

The project is part of Idaho Power’s Clean Energy Your Way program, which is optional and does not change the energy mix that regular Idaho Power customers receive or the rates they pay, Idaho Power Director of Economic Development and Innovation Megan Ronk said in an interview.

Idaho Power’s largest source of energy today is renewable hydro power, Ronk said. For 2022, 24% of Idaho Powers energy generation capacity was coal, Idaho Power reported. Idaho Power has a goal to have 100% clean energy by 2045.

For customers who want to go renewable sooner, Idaho Power created Clean Energy Your Way, Ronk said.

“Clean Energy Your Way is really intended to provide a menu of options to meet customers where they are at in meeting their respective renewable and clean energy goals,” Ronk said in a phone interview.

The Boise City Council approved participating in the Clean Energy Your Way program in October 2023.

“This is possible because Boiseans have been so clear that they expect our city to lead in protecting our environment for the future,” Boise Mayor Lauren McLean said in a written statement after the Boise City Council vote. “It is important that we are resilient and because we want our kids, and their kids, to be healthy and to have a place where they can live and thrive into the future.”

After the Boise City Council approved participating in the program, Idaho Power and the city applied for approval from the Idaho Public Utilities Commission, which regulates utility companies in Idaho.

Under the application for the project, Boise sought approval to buy up to 10 megawatts of power from Black Mesa Energy solar project in Elmore County. In addition to the normal Schedule 19 rate Boise pays for energy not from the solar project, Boise will pay a fixed cost charge for each kilowatt hour of energy received from the Black Mesa Energy solar project. Excess energy generated but not used will be credited to the city.

Black Mesa solar energy Boise Idaho
The city of Boise buys enough energy from the Black Mesa Energy solar project in Elmore County to power the Boise Airport and Lander Street Wastewater Treatment Plant. (Courtesy of Idaho Power)

The Idaho Public Utilities Commission approved the application in August, which allowed the city to begin purchasing the solar energy Sept. 1.

The city’s contract is for 20 years. Hubble told the Sun he expects the city to pay slightly more for energy during the first 18 months of the project. Then, for the duration of the first 10 years, Hubble expects the city to either realize a savings or be paying no more than it would have regularly, without going renewable.

“We’re pretty excited about that savings opportunity, because basically this contract allows us to kind of lock in the rate for a portion of our power cost, and power costs do change, so that’s something we’re really excited about,” Hubble said. “It’s kind of cool, not only the renewable attribute of this, but that economic attribute of this is pretty exciting.”

Boise has a 25% share of the solar energy from the Black Mesa Energy project, while the remaining 75% is being used by Micron for renewable energy projects, Hubble said.

Other cities, residents and businesses can participate

Idaho Power offers different types of Clean Energy Your Way programs for residential customers, businesses and large municipal customers like the city of Boise. The largest energy-using customers, like the city of Boise, are able to participate in the Clean Energy Your Way Construction agreement that powered the Boise Airport and Lander Street facility. Hubble thinks Boise’s project could set an example for other large Idaho Power municipal or industrial customers who want to go with renewable energy.

But there are other options for other types of Idaho Power customers too. Residential customers can cover all or part of their energy use with renewable wind and solar energy at a cost of 1 additional cent per kilowatt hour, with the ability to cancel any time. Business customers can purchase renewable energy certificates, with options to buy on a month-to-month basis or for a three-year commitment.

Trade unions ask states to triple offshore wind procurements
Nov 18, 2024

OFFSHORE WIND: A coalition of trade unions urges Connecticut, Massachusetts, and Rhode Island to triple their offshore wind procurement targets to help meet climate goals and create jobs. (Inside Climate News)

ALSO: Officials on Nantucket object to the terms of a mitigation agreement proposed by a planned offshore wind farm, saying the offer fails to address the harms the project will cause to the island. (Nantucket Current)

CRYPTO: A New York judge allows a cryptocurrency mining operation to keep running its fossil fuel-fired power plant, saying state regulators failed to justify their decision not to renew the facility’s permit. (WSKG)

HEAT PUMPS: Maine’s decision to incentivize whole home heat pump systems rather than individual rooms has driven a surge in homeowners taking advantage of the rebates. (Portland Press-Herald, subscription)

MICROGRIDS: A renewables-powered community microgrid in the country’s easternmost city is already proving to be a model for other towns along the Maine coast to reduce outages. (Inside Climate News)

SOLAR: Maryland communities attempt to stem the tide of solar development on open land, with Carroll County looking to strengthen its prohibition on solar projects on farmland and Harford County moving to place 1,100 acres of land into agricultural preservation. (Baltimore Sun, subscription)

BATTERIES: A Canadian company plans to open a lithium-ion battery manufacturing facility in New York, creating some 250 jobs. (The Post-Journal)

ELECTRIFICATION: Maine launches a $1 million study to determine the cost and logistics of electrifying four ports to cut diesel emissions from visiting ships. (Portland Press Herald, subscription)

NUCLEAR: New York’s energy authority begins to assess the possibilities for and interest in developing advanced nuclear facilities in the state. (RTO insider, subscription)

INDUSTRY: Decarbonizing the steel industry in states such as Pennsylvania will require enormous amounts of clean energy and deployment of new technologies.  (Canary Media)

CLEAN ENERGY: In Vermont, experts and state leaders worry federal funding for clean energy and other environmental priorities could be withdrawn when Donald Trump takes office. (VTDigger)

COMMENTARY:

New Kentucky battery factory builds on the state’s clean energy boom
Nov 18, 2024

Correction: The Georgia Environmental Finance Authority recently launched two federally funded energy efficiency programs. An item in Thursday’s digest misstated the organization sponsoring the program.

STORAGE: Kentucky Gov. Andy Beshear announces a subsidiary of Canadian Solar will build a $712 million, 3 GW lithium ion cell battery manufacturing plant — the latest in a wave of battery factories and electric vehicle expansions that together account for more than 16,000 new jobs. (Lexington Herald-Leader)

ELECTRIC VEHICLES: Donald Trump’s plans to repeal a $7,500 electric vehicle tax credit could be a major blow to auto manufacturers who have invested billions in EV and battery factories in Georgia and other Republican-led Southeast states. (Atlanta Journal-Constitution)

OIL & GAS: Entergy proposes a 1,500 MW gas-fired power plant in Louisiana to power a proposed $5 billion-plus data center, as critics question secrecy around the project and its likely effect on rates and carbon emissions. (Floodlight)

WIND: Oklahoma’s wind generation capacity has grown tenfold since 2010 as renewables now generate about 44% of the state’s power, but experts expect the industry’s rapid growth to slow. (Tulsa World)  

SOLAR:

UTILITIES:

COAL:

HYDROGEN: West Virginia residents rally against a proposed “blue hydrogen” hub proposed for Appalachia. (Charleston Gazette-Mail)

OVERSIGHT: West Virginia officials anticipate Donald Trump’s selection to lead the U.S. EPA will reverse course on proposed rules to restrict emissions from coal-fired and new gas-fired power plants. (WV News)

CLIMATE:

POLITICS: A Virginia lobbyist wrote the energy chapter of the Heritage Foundation’s Project 2025 playbook, which proposes overhauling the U.S. Department of Energy, repealing clean energy funding sources, boosting oil and gas and streamlining the nuclear approval process. (Virginia Mercury)

Advocates make economic case for green steel production at Dearborn, Michigan plant
Nov 18, 2024

Dearborn, Michigan, was at the heart of auto industry innovation during the days of the Model T Ford.

Now clean energy and environmental justice advocates are proposing that the city play a lead role in greening the auto industry, through a transformation of the Dearborn Works steel mill to “green steel” — a steelmaking process powered by hydrogen and renewable energy with drastically lower emissions than a traditional blast furnace.

The blast furnace at Dearborn Works is due for relining in 2027, at an estimated cost of $470 million. Advocates argue that instead of prolonging the blast furnace’s life, its owner, Cleveland Cliffs, should invest another $2 billion dollars and convert the mill to Direct Reduced Iron (DRI) technology powered by green hydrogen (hydrogen produced with renewable energy).

An October report by Dr. Elizabeth Boatman of the firm 5 Lakes Energy examines the economics and logistics of such a conversion, and argues that demand for cleaner steel is likely to grow as auto companies and other global industries seek to lower their greenhouse gas footprints. Starting in 2026, steel importers to the European Union will need to make payments to offset emissions associated with steel production.

Worldwide, the auto industry is the second largest consumer of steel after construction, and “being able to pass on the price of a ‘green steel premium’ to its end consumers, the automotive industry is uniquely positioned to create demand for green steel without having to rely on public subsidies,” the European Union think tank CEPS said in a recent publication.

“This is a great chance for the state to step in now and ensure this conversion happens, instead of waiting another 20 years,” said Boatman. “All the economic indicators suggest clean steel is the steel product of the future, and the best way to future-proof jobs especially in the steel sector and especially for unions.”

Cutting pollution, creating jobs

Cleveland Cliffs is planning to convert its Middletown, Ohio, steel mill to DRI, tapping a $500 million federal grant for industrial decarbonization under the Bipartisan Infrastructure Law and Inflation Reduction Act.

A DRI furnace does not need to use coke or heat iron ore to 3,000 degrees Fahrenheit to produce pure “pig iron”; the same result is achieved with a different chemical process at much lower temperatures. DRI furnaces can be powered by natural gas or clean hydrogen. Initially, Cleveland Cliffs says, its Middletown mill will run on natural gas, releasing about half the carbon emissions of its current blast furnace. Eventually, the company announced, it could switch to hydrogen.

Along with slashing greenhouse gas emissions, a similar green steel conversion at Dearborn Works would greatly reduce the local air pollution burden facing local residents in the heavily industrial area, which is also home to a Marathon oil refinery, a major rail yard and other polluters.    

But it wouldn’t be cheap. Boatman’s report estimated the cost of converting a blast furnace to a DRI furnace and associated electric arc furnaces at $1.57 billion, plus $2.6 billion to build a green hydrogen plant. Utility DTE Energy would need to work with grid operator MISO to add about 2 GW of solar and 2 GW of wind power, plus battery storage, to the grid to power the green hydrogen production.

The conversion would mean closure of the EES Coke plant, which turns coal into coke for the steel mill, on heavily polluted Zug Island in the River Rouge just outside Detroit, five miles from Dearborn. In 2022, the EPA sued the coke plant, a subsidiary of DTE Energy, over Clean Air Act violations.

A recent study by the nonprofit Industrious Labs found that the EES Coke plant could be responsible for up to 57 premature deaths and more than 15,000 asthma attacks. The report also found that more than half the people living within a three-mile radius of both the steel mill and coke plant are low-income, and three-quarters of those living around the coke plant are people of color, as are half those living around the steel mill.

“The total health costs are quite significant,” said Nick Leonard, executive director of the Great Lakes Environmental Law Center, which is representing local residents as intervenors in the EPA lawsuit against the coke plant. “We allow companies to externalize those costs and not account for them. If they were required by some sort of change in policy or regulation to be responsible for those costs, it would certainly make the case they could make this expensive switch” to green steel.

The law center also represented residents in legal proceedings around Dearborn Works’ Clean Air Act violations, including a 2015 consent decree and a 2023 mandate to install a new electrostatic precipitator at a cost of $100 million.

Leonard said local residents “know Cleveland Cliffs poses a risk to their health, and they want solutions. They know there’s a problem, they are frustrated by the lack of will or attention from state and local government.”

Cleveland Cliffs did not respond to a request for comment.

Why Michigan?

The country’s active steel mills are concentrated in Pennsylvania, Indiana, Ohio and Michigan. Advocates and residents are asking Nippon Steel to consider a green steel conversion at the Gary Works mill in Northwest Indiana, if the global corporation succeeds in acquiring Gary Works owner U.S. Steel. Advocates have also proposed green steel conversions for Pennsylvania mills.

There are factors that make a green steel conversion both more promising and more challenging at Dearborn Works, compared to other locations, Boatman explained.

Dearborn Works has only one blast furnace in operation, meaning a potentially smaller investment than at mills with more furnaces. Michigan has also set aggressive renewable energy goals, which could be furthered by the ambitious renewable energy buildout that would be required to produce enough green hydrogen for the steel mill.

“That’s why we’re asking the state of Michigan and the governor to get all the interested parties to the table to actually talk about this, hopefully commit to it, and do the detailed planning that needs to be done to figure out how much wind, how much solar, how much battery storage does there need to be to get this off the ground,” said Boatman.

Michigan has legal limits on behind-the-meter generation that could make it more difficult to build renewables specifically to power green hydrogen production for a steel mill. Utilities would instead need to produce or procure the renewable energy, and sell it to the steel mill, Boatman explained.

A green steel conversion at Dearborn Works could create a total of about 500 new jobs, Boatman estimates, considering that about 500 jobs would be lost at the closing coke plant but 410 jobs would be created at the hydrogen plant, 550 in new renewables and 170 at the mill itself. The DRI conversion at the Middletown steel mill is expected to create 170 new permanent jobs and 1,200 construction jobs, according to Cleveland Cliffs.

A 2023 analysis by the Ohio River Valley Institute found that at the Mon Valley Works steel mill in Pennsylvania, a DRI conversion would likely preserve more iron- and steel-making jobs than “business as usual,” with 87% of the current jobs expected to exist in 2031, compared to 69% without a change — as U.S. steel production continues to shrink and automate.

“We are seeing a general trend for both iron and [secondary] steel production to move toward the South, to states that aren’t friendly to unions and can produce products at cheaper prices by bypassing unions,” said Boatman. “Michigan obviously has a proud history of being a strong union state, it matters to keep those good union jobs there.”

Labor unions have largely been silent on the concept of green steel conversion. The United Auto Workers union — which represents Dearborn Works employees — and the United Steelworkers did not respond to requests for comment.

Hydrogen wild cards

The U.S. Department of Energy plans to spend $8 billion on hydrogen hubs, and a potentially lucrative tax credit known as 45V is being finalized for clean hydrogen. Experts and advocates agree that energy-intensive, hard-to-decarbonize industries like steel are where hydrogen could have the most impact. But large-scale production of pure hydrogen for industrial use is still in nascent stages, and little infrastructure has been built or tested for transporting and storing hydrogen.

That is among the reasons, Boatman said, that there’s been reluctance among residents and union leaders to embrace the concept of green steel. Boatman’s report emphasizes that community benefits agreements and community engagement processes are crucial to make sure residents are informed about, benefit from, and have a meaningful voice in any green steel plans.

“Union workers and fence-line community members all want better air quality, lower emissions, who wouldn’t want to go to work knowing you’re safer being there?” she said. “There’s a lot of interest in cleaning up the air. It’s more a question over how that happens. When hydrogen becomes part of the equation, there’s always some concern.”

She noted that hydrogen could potentially be stored in salt caverns in the Detroit area, though extensive study on the feasibility and environmental impacts would be needed. In Mississippi, a startup company Hy Stor Energy is planning to store green hydrogen in salt caverns, ready to generate electricity during times of high demand.

Tax incentives for clean hydrogen could provide major incentives for steel mills. But clean hydrogen proposed projects have been in flux nationwide as the rules for qualifying for 45V tax credits are being hashed out in a lengthy, controversial process; and the change in presidential administration adds even more uncertainty.

“These industries have to be incentivized,” said Roxana Bekemohammadi, founder and executive director of the U.S. Hydrogen Alliance, which advocates for pro-hydrogen policies on the state level. “Europe is creating a mandate — that’s one incentive. We’d love to support any incentives that would allow hydrogen to be leveraged in the steel industry. With state legislation we certainly can incentivize it. It’s a question of how competitive we want to be.”

Study: California rooftop solar saves residents $2.3 billion annually
Nov 15, 2024

SOLAR: A study finds California’s 17,000 MW of rooftop solar capacity saved residents about $2.3 billion on their utility bills this year, casting doubt on “cost-shift” arguments used to support net-metering rate cuts. (Canary Media)

ALSO:

WIND:

STORAGE: Arizona Public Service agrees to purchase power from a proposed 250 MW battery energy storage system in central Arizona. (Solar Quarter)

TRANSITION: Arizona utilities award three communities a total of $125,000 to help them weather coal plant retirements. (Independent)

ELECTRIFICATION: Climate advocates say California and Washington state election losses for initiatives aimed at phasing out natural gas do not accurately reflect public sentiment on electrification. (Heatmap)

CLIMATE: New documents reveal California’s oil and gas lobby pioneered strategies in the 1950s aimed at obscuring fossil fuel-burning’s contributions to pollution and climate change and downplaying the risks. (DeSmog)

PUBLIC LANDS:

  • President-elect Donald Trump picks fossil fuel-friendly North Dakota Gov. Doug Burgum to lead the Interior Department and oversee oil and gas drilling and coal mining on federal lands. (New York Times)
  • Wyoming Gov. Mark Gordon looks to the incoming Trump administration to ease restrictions on oil and gas drilling in the federal Bureau of Land Management’s proposed sage grouse management plan. (Wyoming Public Radio)
  • The federal Bureau of Land Management revives a policy allowing it to apply wilderness-level protections and ban oil and gas drilling, new mining claims and other development on parcels of land. (E&E News, subscription)

BIOFUELS: An Oregon city proposes a recycling facility that would produce pipeline-grade methane fuel from diverted organic waste. (OPB)

MINING: Arizona advocates challenge the state land board’s approval of a pipeline right-of-way for a proposed copper mine in the southern part of the state. (AZ Mirror)

New York revives congestion pricing plans
Nov 14, 2024

EMISSIONS: New York Gov. Kathy Hochul intends to revive plans for congestion pricing in parts of New York City, dropping the toll to $9 from $15, before the new Trump administration can squash the plan. (New York Times)

ALSO:

TRANSMISSION: The developers behind a 145-mile transmission line intended to import Canadian hydropower to Massachusetts sue NextEra Energy, alleging the electric utility purposely misled voters and physically blocked progress to protect its turf and stop the project. (MassLive, subscription)

SOLAR:

NUCLEAR: Small modular nuclear reactors could be the key to providing onsite energy for power-hungry big tech companies and convincing them to set up shop in New York, says Gov. Hochul.  (Times Union)

EFFICIENCY: Burlington, Vermont’s plan to weatherize more than 700 rental properties is seriously behind schedule because of a shortage of workers trained to do the upgrades. (Seven Days)

CLIMATE: As New York falls behind on its climate goals, the state needs to ramp up its procurement of renewable energy, advocates say. (Canary Media)

OFFSHORE WIND: Seven Cape Cod towns vote against supporting offshore wind development on a ballot question that is nonbinding but raises questions about the region’s appetite for wind. (Cape Cod Times)

STORAGE: New Jersey utilities regulators modify their proposed incentive plan for grid-scale battery storage projects, as the state aims to reach 2,000 MW of capacity by 2030. (RTO Insider, subscription)

GRID:

COMMENTARY: Grid operator PJM should look to battery storage and other creative solutions to meet high demand rather than leaning on existing coal plants that hurt nearby communities, an Appalachian equity advocate says. (Utility Dive)

With $1.3B factory, Virginia finally joins Southeast’s “battery belt”
Nov 14, 2024

STORAGE: A Tennessee company announces it will build a $1.3 billion battery separator manufacturing facility in Virginia at the same site Gov. Glenn Youngkin previously said a Ford battery factory couldn’t use. (Virginia Business, Cardinal News)

RENEWABLES: A growing number of Mississippi farmers are leasing their land for wind and solar energy projects as they look for new revenue sources. (Mississippi Today)

PIPELINES: Virginia officials order the Mountain Valley Pipeline to pay $17,500 for erosion and sediment control violations over a three-month period. (Cardinal News)

OVERSIGHT: North Carolina regulators approve a new version of North Carolina’s energy plan that calls for more solar, batteries and wind, but critics attack the board for allowing Duke Energy to continue to rely on fossil fuels and miss an emissions reduction deadline. (Wilmington StarNews)

ELECTRIC VEHICLES:

OIL & GAS: The U.S. EPA finalizes a rule levying an excess methane emissions fee on oil and gas facilities, but West Virginia U.S. Shelley Moore Capito pledges to work with Donald Trump to repeal it. (Associated Press, West Virginia Public Broadcasting)

EFFICIENCY:

GRID:

COMMENTARY:

Commentary: Heat pump-assisted water heater technology could make big lift
Nov 14, 2024

Reliable hot water is critical for restaurants for preparing food and washing dishes and equipment, as well as hand washing.

However, water heating is one of the biggest energy users in restaurants. Heating water for restaurant use accounts for 16% of all commercial gas usage in California. Food service buildings are among the highest intensive energy users on a per-square-foot basis, largely because of their hot water usage. Foodservice operations may soon feel the pressure to electrify. The California Air Resources Board is analyzing proposed zero-emission GHG standards for new space and water heaters. It is currently planned for consideration in 2025 with any implementation beginning in 2030, and would only be applicable to the purchase of new equipment

Doing so will be difficult, particularly for existing restaurants. Many food service operations, especially small and independent businesses, do not have the space for the size of a storage tank that would be required for a heat pump water heater. Restaurants in California, as with most states, are legally required to have sufficient hot water to meet all these demands under peak conditions.

In response to these challenges, an emerging technology, the heat pump-assisted water heater, is gaining traction. It is designed to meet this existing gap between what the market needs and the cost and challenges of installing available heat pump water heaters. It is geared to meet the needs of existing food service businesses that want to be able to transition to a heat pump while still retaining the benefits of their current water heating system.

With funding from CalNEXT — California’s statewide emerging technology initiative — the TRC Advanced Energy team recently published a report, “Market Potential for Heat Pump Assisted Hot Water Systems in Foodservice Facilities.” This report, which TRC Advanced Energy developed with research support from Frontier Energy and Energy Solutions, assesses the benefits and challenges of adopting heat pump-assisted water heater technology for a range of food service establishments.

“Heat pump-assisted water heaters are a solution that we have available today,” said Amin Delagah, Associate Director of Research and Consulting for TRC Advanced Energy, an environmental services provider. “Heat pump water heater adoption rates in restaurants are still very low due to a lack of familiarity, space and electrical capacity requirements and primarily, the health department water heater sizing regulatory barrier, but the heat pump assist concept is a solution that we can move forward today to overcome these barriers.”

The heat pump-assisted water heater, as its name suggests, is designed to operate in series with an existing water heater, which makes it attractive for restaurants that do not want to overhaul their current system completely. During down times for the business, the existing heater would maintain the recirculation temperature of already heated water in its system. During off hours, the heat pump-assisted water heater would produce sufficient hot water to restock the system. Because the existing heater is already large enough to meet food service needs during business hours, the heat pump-assisted water heater system can be built to fit the available space, even if it is undersized.

The benefits of using a heat pump-assisted water heater are similar to those of a heat pump: improved energy efficiency and possibly lower long-term energy costs, although cost issues largely depend on the type of system being replaced. Natural gas fuel, which is used by 90 percent of food service operations for water heating, is currently cheaper than electricity in most of California.

Heat pump systems also provide cooling as a byproduct, which could be useful to counteract kitchen heat.

Heat pump-assisted water heaters are designed to address the big disadvantage of heat pump water heaters for restaurants — the longer time needed to heat the water from cold. One workaround is a much larger tank, but floor space is typically at a premium in restaurants, making this workaround unappealing for many food service operations. For a heat pump water heater to meet health department requirements, it would need a much bigger tank than its gas-fired counterpart (because the gas-fired water heater can heat water faster).

Heat pump-assisted water heaters may also be cheaper to install than a conventional, retrofitted heat pump water heater system, and the heat pump-assisted water heater does not need to meet these sizing regulations because the legacy water heater still functions as a backup system. At this point, the technology is still emerging and has not been installed commercially, but the authors estimate that initial costs for the heat pump water heater that acts as the assist, including installation, could range between $6,000 to $20,000. This amount, while significant, is still much cheaper than what it could cost a full-service restaurant to install a heat pump water heater capable of meeting water demands, which could well exceed $100,000.  

“The costs for heat pump assisted heat pumps are largely driven by the electrical work and the space required, and there may be incentives available to offset these,” Delagah said.

Another benefit is that because the heat pump-assisted water heater is a backup system, it does not require health department approval, making the process simpler.  

Both heat pump water heaters and heat pump-assisted water heaters also have the additional operational benefit of being able to benefit from time-of-use rates and the additional cooling they could provide for kitchens.

“This year in October, it was 95 degrees in the Bay Area,” Delagah said. “There are new California OSHA rules on the books for indoor temperatures — if your facilities are over an 82°F temperature indoors, you have to provide cooling centers for employees. That’s becoming an emerging concern for restaurants to meet a new heat illness standard.”

On the downside, the higher upfront costs will likely still be a significant barrier to the adoption of heat pump-assisted water heaters, even if they are relatively less expensive than heat pump water heaters.

One big hurdle is that health departments, by and large, are not familiar with the technology — and may be more resistant to its approval. The relatively high price of electricity in California, compared with gas, may be another barrier.

Yet regulations and the need to decarbonize are moving closer, with California’s 2030 deadlines for reducing its overall greenhouse gas emissions by 40%, in comparison with 1990 levels. Restaurants are well positioned to be the public face of doing their part.

“This is great equipment for restaurants that are thinking about positioning themselves for where things are going in terms of air quality regulations,” Delagah said. “If you’re a chain restaurant, you should probably be trying this out, kicking the tires a bit, and preparing for what your solution is going to be when there is a mandate.”

To learn more about this project, read the report on the CalNEXT website, calnext.com  

About CalNEXT: CalNEXT is a statewide initiative to identify, test, and grow electric technologies and delivery methods to support California’s decarbonized future. CalNEXT is funded by the ratepayers of California investor-owned utilities and provides a means for studying emerging technologies and energy-efficiency innovations that have the potential to save energy via utility programs and/or market support.

Article written by Emily Pickrell, Energy Solutions

Paper and pulp mills produce half of Maine’s industrial CO2 emissions. Could lasers help slash their climate impact?
Nov 14, 2024

A Massachusetts university is developing technology that aims to use lasers to drastically cut emissions and energy use from Maine’s paper and pulp industry.

Worcester Polytechnic Institute recently received a $2.75 million U.S. Department of Energy grant to help ready the industrial drying technology for commercial use.

“We are all excited about this — this is potentially a groundbreaking technology,” said Jamal Yagoobi, founding director of the institute’s Center for Advanced Research in Drying.

In Maine, the paper and pulp business generates about 1 million metric tons of carbon dioxide emissions each year, roughly half of the state’s industrial emissions. Much of these emissions come from the process of drying mashed, pressed, and rolled wood pulp to yield paper products. The emissions come mainly from three major operations across the state; three additional facilities contribute smaller amounts.

These plants’ emissions will need to be addressed if Maine is to reach its goal of going carbon neutral by 2045. Furthermore, each of these plants is located in an area with an above-average population of low-income residents, according to data assembled by Industrious Labs, an environmental organization focused on the impact of industry. And two are located in areas with a higher-than-average risk of cancer from air toxins, suggesting a correlation between their operations and the incidence of cancer in the area.

At the same, the paper and pulp industry remains economically important to Maine, said Matt Cannon, state conservation and energy director for the Maine chapter of the Sierra Club.

“It’s got real union jobs — the paper industry is still very important to our community,” he said.

Worcester Polytechnic’s drying research center has been working on ways to dry paper, pulp, and other materials using the concentrated energy found in lasers. The lasers Yagoobi’s team is using are not the lasers of the public imagination, like a red beam zapping at alien enemies. Though the lasers are quite strong — they can melt metal, Yagoobi says — they are dispersed over a larger area, spreading out the energy to evenly and gently dry the target material.

Testing on food products has shown that the technology can work. Now, researchers need to learn more about how the laser energy affects different materials to make sure the product quality is not compromised during the drying process.

“For paper, it’s important to make sure the tensile strength is not degrading,” Yagoobi said. “For food products, you want to make sure the color and sensory qualities do not degrade.”

Therefore, before the system is ready for a commercial pilot, the team has to gather a lot more data about how much laser energy is incident on different parts of the surface and how deeply the energy penetrates different materials. Once gathered, this data will be used to determine what system sizes and operating conditions are best for different materials, and to design laser modules for each intended use.

Once these details are worked out, the laser technology can be installed in new commercial-scale drying equipment or existing systems. “This particular technology will be easy to retrofit,” Yagoobi said.

Industrial sources were responsible for about 1.3 billion metric tons of carbon dioxide emissions in the United States in 2023, about 28% of the country’s overall emissions, according to the U.S. Energy Information Administration. Heating processes, often powered by natural gas or other fossil fuels, are responsible for about half of those emissions, said Evan Gillespie, one of the co-founders of Industrious Labs. Many industrial drying processes require high temperatures that have traditionally been hard to reach without fossil fuels, giving the sector a reputation as hard to decarbonize, Gillespie said.

“The key challenge here is: How do you remove natural gas as a heating source inside industrial facilities?” said Richard Hart, industry director at the American Council for an Energy-Efficient Economy. “The scale of what is happening in industry is enormous, and the potential for change is very powerful.”

To make the new technology effective, industry leaders and policymakers will need to commit to reinvesting in old facilities, Gillespie noted. And doing so will be well worth it by strengthening an economically important industry, keeping jobs in place, and creating important environmental benefits, he added.

“There’s often this old story of tensions between climate and jobs,” Gillespie said. “But what we’re trying to do is modernize these facilities and stabilize them so they’ll be around for decades to come.”

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