Posts Tagged ‘solar’

Article courtesy of the Las Cruces Bulletin

Written by Jay Rodman

Research being done at New Mexico State University on the production of algae-based biofuels would become increasingly impor­tant to New Mexico’s – and the na­tion’s – economic prosperity, if U.S. Sen. Tom Udall has his way.

Udall visited NMSU to announce legislation he will introduce in the Senate to ensure a more level playing field for the algal biofuels industry.

Joining Udall at the news confer­ence were NMSU President Barbara Couture; Pete Lammers, NMSU re­search professor and the technical director of the university’s Algal Bio­energy Program; Jim Peach, regents professor of economics; and Denise Gitsham, director of corporate af­fairs and legislative counsel for Sap­phire Energy, Inc., owner of a large biorefinery in Columbus, N.M.

The U.S. Energy Independence and Security Act of 2007 established a production target of 36 billion gal­lons of advanced biofuels by 2022, with separate volume requirements for each category of renewable fuel. It also required that life-cycle analyses be used to ensure that each renewable fuel emits less greenhouse gas that the petroleum it replaces.

Udall said he feels the renewable fuel standards established by than law go a long way toward promoting U.S. energy security through domes­tic production of fossil fuel alterna­tives. In the current version; however, mandated targets for alternative fuel production favor corn-based and cellulosic ethanol over algae-based and other “advanced” biofuels.

He expressed his belief that Con­gress should promote research and development of alternative energy sources, but that the market should determine the balance among the various alternatives. The legislation that he and Public Works Commit­tee colleague Larry Crapo of Idaho plan to introduce will mandate par­ity for algae and other non-cellulosic advanced biofuels, in terms of pro­duction requirements and subsidies under the renewable fuel standards. Comparable bipartisan legislation has been introduced in the House of Representatives.

Udall chose NMSU as the site for his announcement because of the university’s established com­mitment to algal biofuel research. NMSU recently moved into algae bio-oil production mode with a new 4,000-liter Solix BioSystems algal photobioreactor, which joined four smaller algae “raceways” at the Fabi­an Garcia Science Center in Las Cru­ces. The university is a member of the National Alliance for Advanced Biofuels and Bioproducts consor­tium, established through $49 mil­lion in grants from the Department of Energy to explore all aspects of algal biofuel production, harvesting, extraction and upgrading to diesel and jet fuels.

Prior to the news conference, Udall was greeted by Couture at the science center. He then met with a group that included other NMSU ad­ministrators, New Mexico Secretary of Agriculture Jeff Witte, and faculty and staff members involved in algal research. They showed him the new algal photobioreactor, as well as an automated biodiesel processor, and discussed various ways NMSU’s algal technology might be integrated into dairy and livestock production facili­ties, or even inland shrimp farming.

Lammer’s stressed the impor­tance of algae research in benefiting humankind. He foresees a situation in the not-too-distant future where converting algae into fuel will not only fill a significant portion of the nation’s energy needs, but will also capture value from waste streams to create a “cradle-to-cradle” approach to industrial ecology. Lammers sees the current push to develop renew­able fuels to blend with traditional petroleum products as a turning point in global energy policy, and he believes algae can play a key role.

“I think of algae cultivation as a waste-to-energy process that will benefit the economics of existing agricultural enterprises,” Lammers said. “This is the first step in a long journey. Industrial ecologies capable of sustaining a population of 7 bil­lion people for a thousand years will waste nothing and recycle ev­erything. In the long run, that will include industrial, municipal and agricultural waste streams.”

In his news conference remarks, Udall pointed out the advantages al­gal biofuel has over other options and the advantages New Mexico has over most other states in producing it.

Comparing algae to corn grown for ethanol and to soybeans used for biodiesel production, Udall explained that algae production requires much less land, can be accomplished with lower quality water, results in the absorption of large amounts of the greenhouse gas carbon dioxide – and it is not a food crop, so growing it for fuel production doesn’t impact the food supply.

New Mexico is an ideal place for algal biofuel production. It has plen­tiful sunshine, an abundance of water unsuitable for consumption or crop irrigation, and land is not scarce.

“I believe New Mexico is well po­sitioned to be a leader in this,” Udall said. “And with policies that encour­age the production of clean energy, our state can create an energy econo­my that leads the nation in develop­ing the jobs of the future.”

Udall shared the results of a sur­vey of 52 Algal Biomass Organization member companies on the issue of potential job growth from legislative and regulatory parity for algae. The estimate based on this survey sug­gested that “explosive” job growth – more than 200,000 jobs nationwide – could be expected over the next de­cade if Congress puts algae on a level playing field with ethanol and other advanced biofuels.

Peach and colleague Meghan Starbuck-Downes have studied the potential economic impact of algal biofuel production. Based on their economic model, they estimate that for every 100 million gallons of algal biofuel produced in the state, there would be 450 jobs created, includ­ing direct, indirect and induced jobs. State revenues would likely be boost­ed by $8 million to $9 million.

“New Mexico is an energy state with vast reserves of oil, natural gas, coal and uranium,” Peach said. “Wind and solar are significant parts of the state’s energy industry. Nearly all energy analysts agree that we need to develop all forms of energy. The algal biofuels industry could be­come an important part of the state’s energy portfolio and could have sub­stantial economic impacts.”

As many of you are already aware, MVEDA has a core, focused approach to economic development that concentrates on growing the economic base of Dona Ana County.  Economic based approaches focus on industries that export a product or service outside the region thereby bringing new dollar flow into the local economy.   It is one of the fundamental means by which a region can build and create new wealth and demand.  New dollar flow into an economy then leads to greater disposable spending that can be used to purchase the local goods and services that we rely on each day.    We have had success in this approach to economic development and as move closer to entering the fourth quarter of our fiscal year the impact from economic based industry development becomes evident; not only in job creation but in the new tax base that it creates.

For example, currently this fiscal year MVEDA has been involved in efforts that have assisted in the creation of 216 new jobs as well as the retention of 42 jobs within the City of Las Cruces with the total capital investment estimated in new construction and equipment estimated at $40mm.  Utilizing IMPLAN economic impact analysis, a 3^rd party statistical software that measures direct, indirect, and induced economic impacts, new tax revenue to the City of Las Cruces would exceed $700,000 during the construction phase and over $226,000 per year in subsequent years should employment levels be maintained.  Likewise, the increased tax revenue to the State of New Mexico as a result of these projects is estimated at over $2.3mm during the construction phase and over $347,000 in subsequent years.  Our educational institutions also benefit as a result of these economic based projects.  Las Cruces Public Schools property tax revenues could grow by as much as $200,000 per year.

Also, MVEDA is working closely with a handful of projects that have considerable impact to Dona Ana County; primarily with Union Pacific’s $400mm refueling station and intermodal ramp which would create over 3,000 construction jobs and eventually over 500 permanent, high wage jobs in Santa Teresa.  The impact of this project would create $19.9mm to the State of New Mexico and $3.5mm to Dona Ana County in new gross receipts and compensating tax paid on construction services alone.   As the State of New Mexico is currently faced with large budget deficits, the identification and creation of a new tax base becomes even that much more critical.  As evident from the above discussion, the attraction of economic based industry to the State and County is the solution.

Economic development practitioners and leaders around the United States value economic based industry growth and it is for this reason that competition continues to grow.  And even during these challenging economic times, and even with budget deficits, we see that States and regions across the country are investing more in their economic development efforts.  For example, just to the south of Dona Ana County in Horizon City (a suburb of El Paso), the city has adopted a new tax to build an economic development fund.  This is in addition to the State of Texas’ Enterprise Fund which provides the State with deal-closing dollars to attract industry.  Recently, Arizona legislators began a special legislative session to begin consideration of business tax cuts and the creation of a $25mm closing fund to attract new business to their State.   On a recent trip to Atlanta, MVEDA met with several national site selectors and two messages became clear.  First, that there would be an exodus of companies from California, and second, that Arizona and Texas had firmly placed their flag in the ground as the business friendly destination.   With less than a month left in New Mexico’s 60-day legislative session, we are hopeful that the State of New Mexico remains aggressive in the pursuit of economic development.  For this reason the Dona Ana County Legislative Coalition has been supporting the following economic development issues:

1.    Support of a State economic development recruitment budget by expanding the New Mexico Partnership beyond present funding levels, with the purpose of creating new private sector employment opportunities, creating new jobs for New Mexicans and expanding business in the State.  Currently, past year funding has been at $1.1mm.  This is a significant decrease in funding from when the program began in 2003. It is also a small budget in comparison to neighboring cities, much less other State recruitment budgets.  The Partnership also provides lead generation flow to smaller communities that do not have their own marketing budget to work with.  Rural communities that have benefited from the Partnership’s involvement have included Clovis, Roswell, Gallup, and Dona Ana County to name just a few.   To compare this funding level against some of our neighbors;

o    El Paso, TX has a recruitment program funded at about $1.5mm, and

o    The Greater Phoenix Economic Development Council has a recruitment program funded at about $4mm.

2.    Support of retaining existing economic development incentives to include:

o    Funding the State’s Job Training Incentive Program,

o    Maintaining the Technology Jobs Tax Credit, the Manufacturing Investment Tax Credit, and Rural Jobs Tax Credits.

3.    Support of regional border issues which comprise New Mexico’s second largest existing industrial base:

o    Reinstatement of the Locomotive Diesel Refuel Tax Exemption to make southern New Mexico more competitive against Texas as a bi-modal, transportation and logistics hub.

o    Creation of an Commercial Overweight Zone which will assist in attracting new logistics and distribution companies to New Mexico, &

o    Creation of a border infrastructure fund to plan, design and construct border infrastructure to allow for pro-active economic development planning.

Regardless of the outcome at the State level, we still have tremendous economic growth opportunities here in Dona Ana County.  This stems from a direct industry focused marketing approach that leverages the unique assets of the region.  They include our border logistics and port of entry with Mexico, our proximity to White Sands Missile Range, our natural assets in solar, a strong agricultural region, and the continued development of an aerospace industry with Spaceport America as its anchor.  As illustrated in the Lead Generation chart, MVEDA continues to receive diversified industry interest lead first by manufacturing and logistics, followed by renewable energy, and increased growth in the aerospace and food processing sectors.  We have also recently seen a renewed interest in high tech companies looking at the area.

In terms of performance output versus past years, MVEDA has assisted in the creation of 237 new jobs in Dona Ana County as of March 1 of this fiscal year which places us well ahead of job creation numbers in each of the past previous two years, only overshadowed by the positive economic climate of 2007-’08.  However, there remains a strong potential that we will see a handful of projects close before the end of the current fiscal year which would then create a record year for MVEDA.

As also illustrated in the Completed Projects chart, as of March 1^st we have already surpassed past years’ results in the industrial square footage taken off the marketplace and in the total capital investment that these projects have brought to Dona Ana County.

In addition to economic based industry attraction, MVEDA is working on solutions to connect local businesses to the opportunities that economic based industry brings to the region.   Therefore we were pleased to announce our first “Business Connection Series” on Monday, March 7, 2011 where SunEdison provided local vendors, suppliers, and sub-contractors with a pre-bid briefing on their 12 MW solar project at the West Mesa Industrial Park.  We are hopeful that this will be the first in a series of localized economic-based business building opportunities.

Additionally, in conjunction with the Border Industrial Association (BIA), MVEDA hosted a Business Incentives Workshop for the southern New Mexico industrial base and the CPA firms that service them.   The workshop which also counted towards CEP credit was provided by Moss Adams, a MVEDA Partner and covered, not only the details of applying for state incentives, but federal incentives as well.

As evident, even with the budget challenges at the State level, we are optimistic about the future of economic development in Dona Ana County and appreciate the continued support of all of our partners and stakeholders.

Article courtesy of The Las Cruces Bulletin

By Kristine Sandrick

Capturing the sun’s energy using mirrors to fuel southern New Mexico and west Texas homes was the hot topic of the Mesilla Valley Economic Development Alliance annual appreciation luncheon Friday, March 12, at Hotel Encanto de Las Cruces.

Luncheon keynote speaker Jim Shandalov, eSolar‘s vice president of business development, talked about his company’s new power plant under construction in Santa Teresa, New Mexico. The company plans to break ground this spring and have the power center operating by summer 2011.

Shandalov said the 92-megawatt plant is being constructed in unincorporated Dona Ana County, 1 mile north of the Mexican border off the Pete Domenici Highway.

The Santa Teresa plant will use 390,000 mirrors to collect energy, and the turbines will be connected to El Paso Electric power lines. Shandalov said the electricity will be enough to power 74,000 homes in peak production.

The company’s concentrating solar power (CSP) technology uses a field of small, flat mirrors – called heliostats – to concentrate sunlight onto a thermal receiver mounted on solar power towers approximately 180 feet high. The captured sunlight heats water in a thermal receiver to produce steam that powers a traditional turbine generator and produces electricity. The eSolar technology leverages a highly accurate system to track the sun over the course of the day.

Due to its modular design and preassembled components, the eSolar solution allows plants to be sited on private land parcels near existing transmission lines and points of consumption.

“It’s a 500-acre site, which is a lot less land and uses less steel than a typical plant, but will create more processing power,” he said. “There will be more (boiler) towers and more mirrors than at our 5-megawatt Sun Tower plant in Lancaster (Calif.)” In addition to the Lancaster plant, which opened in August 2009, eSolar has solar energy partnerships in India, China and South Africa.

Idealab – an Internet search engine company that was bought by Yahoo! – created eSolar just three years ago in Pasadena, California.

“New Mexico in general has done such a tremendous job to bring us here,” Shandalov said. “That’s what brought us here. The site is directly adjacent to El Paso Electric lines and Dona Ana County is supplying the water for the coolers.”

He added that there is a good workforce available to fill the 400 jobs created during the 14- to 16-month construction period.

Shandalov said the plant is built to last 30 years and the only major maintenance required is keeping the mirrors clean and replacing them as necessary.

Also during Friday’s luncheon, MVEDA’s chief executive officer Davin Lopez presented the nonprofit agency’s new marketing look, which he said will help southern New Mexico better attract national site selectors.

“Our goal is to make this area competitive across the country. When people think of New Mexico, they think of how rural it is so we want to broaden what they think of us as a region,” Lopez said.

MVEDA’s new logo emphasizes the “MV,” which stands for Mesilla Valley, and clearly identifies the area’s location with the state. Lopez also presented a new MVEDA website that emphasizes the availability of “the right space” for both commercial land and aerospace development. The website also has a language translator so it can be read by anyone anywhere in the world.

For more information, visit www. nmborderplex.com.