Baker Institute studies wind, fossil fuel power generation

US wind power generating capacity primarily has displaced natural gas-fired generation so far, yet a recent study by the Baker Institute for Public Policy at Rice University concludes that increased wind-generation capacity is likely to result in more investment in gas-fired generation capacity.

“A number of studies have shown that the expansion of wind has thus far displaced natural gas more than coal,” said a study entitled “Wind Power in the United States: Prospects and Consequences” by Peter R. Hartley, a Rice economics professor and scholar of energy economics for the Baker Institute.

But he sees this as being a short-term situation because gas is a good complement to renewable sources that are highly variable.

“In the longer run, the intermittency of wind and the fact that wind generation satisfies base-load demand more than intermediate or peaking loads should discourage investment in base-load coal and nuclear capacity,” he said.

Wind power generating capacity installed in the US has grown at about 30%/year since 2000, he said. US wind generation currently is concentrated in Texas and the Midwest.

Baker Institute study on biofuels examines ethanol spills

A recent study by Rice University’s Baker Institute concludes that the US needs to reconsider its policy to promote grain-based ethanol.

The study, “Fundamentals of a Sustainable US Biofuels Policy,” questions the economic, environmental, and logistical basis for federal subsidies that support US ethanol producers. Amy Myers Jaffe, associate director of the Rice Energy Program, was one of the authors of a paper about the study's results.

A research grant in environmental engineering from Chevron Technology Ventures supported the study on biofuels.

The study notes that increased use of ethanol increases the likelihood of leakage of ethanol into water supplies and the environment, often when ethanol is blended with gasoline.

Underground storage tanks are a principal source of this contamination. Metal containers are prone to corrosion and leaking. Already, there have been more than 479,000 confirmed releases of which 377,000 have been cleaned up.

Releases of ethanol likely will lead to some altered remediation approaches, the Baker Institute study said. But rather than the dangers of direct exposure to ethanol, the greater risk to human health comes from the potential for BTEX mixed with ethanol, which is more difficult to degrade. BTEX stands for benzene, toluene, ethylbenzene, and xylenes.

It's hard to replace energy infrastructure

Energy infrastructure is not easily replaced or retired from service, notes a Baker Institute report entitled “Sustainable US Policy Options to Address Climate Change: Highlights of the Debate.” The Baker Institute released the report in June outlining conclusions from climate change conferences that it organized on its campus within Rice University in Houston.

The 15-page report contains a lot of detailed information, yet it’s the infrastructure sentence that caught my attention. Despite extensive discussions nationwide about emerging climate policy, I am waiting to hear more about how the logistics of energy infrastructure will fit within any new policy.

Can the fuels of the future be distributed and marketed using existing refineries, pipelines, and service stations? This is where science and technology development will prove to be key, and it’s where the involvement of oil companies will prove to be key.

Steve Koonin, chief scientist at BP PLC, participated in a Baker Institute conference on climate policy last year. He said the need for adoption of climate policy is urgent because energy infrastructure is not easily replaced or retired.

“Apart from universality, greenhouse gas policies must also be timely—one of the defining characteristics of the energy infrastructure is its longevity,” Koonin said. “Power plants last 50 years, automobiles last 20 years, and buildings in which half the world’s energy is used last about 100 years.”

He noted future GHG emissions are being locked in for decades by infrastructure built today. Hence, the largest international corporations must be involved in GHG reductions and in figuring out the logistics for the fuels of the future.

“Materiality means that large corporations must be actively involved in GHG reductions, since it is through them that societies get things done, at least in the developed world,” Koonin said.