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Karl Burkart

How would you spend $7 billion?

Two proposed energy projects (each with a $7 billion price tag) present two very different directions for America's future. Which would you choose?

Mon, Sep 05 2011 at 3:48 AM EST
 82

 
I attended the National Clean Energy Summit 4.0 in Las Vegas and had the chance to talk with the developers of one of the most ambitious renewable energy projects in the United States — the TransWest Express (TWE) Transmission & Sierra Madre Wind Energy Project led by Anschutz Corporation.
 
The proposed roughly $7-8 billion project would deliver wind power generated by 1,000 2-3 megawatt (MW) turbines located in the gusty and ironically named Carbon Country, Wyoming, via a new super DC (direct current) transmission line to a hub in southern Nevada. If successful, it would produce 9 million MWh's (megawatt-hours)* of zero-carbon, zero-pollution electricity per year — roughly enough to power the entire city of Los Angeles ... forever. No mining. No drilling. No pollution. Just clean energy from a free resource.
 
The cost per MWh (about $80) would be significantly lower than existing coal power (about $90) and that is without any federal or state renewable subsidies. So for those of your skeptical about my last post in which I posited that wind power would soon be cheaper than coal, this project makes it a reality.
 
DWE + Sierra Madre would also create as many as 18,000 jobs (12,688 in the wind farm and 5,000+ in the transmission project) helping the U.S. to regain its lost foothold in two important growth industries (wind power and next generation energy transmission) while capitalizing on what some are calling a renewable "Kuwait" for America — a pocket of Class 7-10 winds that are unrivaled in the world. The new transmission line would also help to bolster the stability of the entire western electric grid.
 
What a contrast with the Keystone XL pipeline! This proposed $7-8 billion project, expected to hit President Obama's desk soon for approval, would largely benefit one foreign company (TransCanada), forcing the U.S. to pay a premium for oil that no one else wants because it is so expensive and so "heavy," requiring much more refinement than typical oil.
 
It would criss-cross some of the most important waterways in North America, including the Missouri River and the Ogallala Aquifer (which supplies 30 percent of the nation's agricultural freshwater) putting millions of people in harm's way. Astonishingly, the State Department recently found no evidence of risk for the proposed project despite the fact that the first Keystone pipeline has had a record 12 spills since it began operation in 2010. 
 
 
The two often cited benefits of Keystone XL is that it is a job creator and would help us get off foreign oil. TransCanada's job projections (500,000 ... really??) have been debunked by many people. The State Dept. puts it at something closer to 4,000-5,000. Regarding foreign oil, Kestone XL will indeed supply about 510,000 extra barrels of crude per day which sounds like a lot until you realize that this would only meet about 2.5 percent of our daily needs ... and at what cost?
 
A barrel of tar sands oil costs about $30 to produce (versus about $5 for a barrel of Saudi oil). And beyond the nearly incomprehensible environmental devastation it causes — 65 square miles of toxic tailings posts, cleared boreal forests, and polluted rivers — it is incredibly resource-intensive. Tar sands production uses three barrels of freshwater for every one barrel of oil produced and requires enough natural gas to heat 3 million Canadian homes, making it four times more carbon polluting than regular oil (PDF).
 
And for those of you who say I'm comparing apples and oranges — oil barrels and kilowatt-hours — I have this to say. Energy is energy, and wind power right now has become a viable alternative for powering our vehicles. In the lobby of NCES sat the brand new Coda sedan (I saw the prototype in China and blogged about it last year). It looks just like a Camry but goes up to 150 miles on a single 34 kWh charge. A typical U.S. driver would charge her Coda 100 times in a year (3.4 MWh's total), which means that the DWE + Sierra wind project could theoretically power about 2.9 million cars* — roughly the same as could be fueled by the Keystone XL pipeline.**
 
It really does feel like a line has been drawn in the tarry sand. Our nation faces a choice. Which way do we want to go? Nearly 600 people have been arrested protesting the proposed Keystone XL (and many more have signed up). They're clear about what they want for the future of our country. How do you feel about it?
 
Also on MNN:
  • Remember when VCRs were a novelty? Watch these videos of then-new technology
  • Here's a car that runs on wine and cheese
 
*9.8 million MWh's: 2.5 MW per turbine x 365 days x 24 hrs x 45% = 9,855 MWh's x 1000 = 9.8 million MWh's. There would be transmission losses but those would be greatly reduced by the new DWE line, so I do not factor those losses in here. A Coda sedan requires 3.4 MWh's per year so 2.9 million cars. 
 
** 3 million cars: 510,000 barrels x 365 days x 19.5 gallons gasoline per barrel = 3.6 billion gallons gas. The crude coming from Alberta Tar sands has far lower productivity so I assume here about 50% normal production or roughly 10 gallons per barrel, yielding 1.8 billion gallons of refined gas per year. A typical car at 20 MPG averaging cars and light trucks (PDF) going 12,000 miles per year = 600 gallons per year for the average driver. 1.8 billion/600 = 3 million cars. Jet and diesel fuel production are not included in these calculations.
 
CLOSE link:
Previous Post
Japanese breakthrough will make wind power cheaper than nuclear
   Next Post
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Related Topics: Oil Dependence, Oil Sands, Smart Grid, Wind Power, Wind Turbine

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anonymous
Heidi Petersen 01/12/2012 09:05 AM

Check out the energy powerstations in Denmark. They have found out a way to reproduce the household waste we people through out and make energy of it !!
http://www.dongenergy.com/SiteCollectionDocuments/innovationscenter/news...

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anonymous
Realist 11/07/2011 09:21 AM

What would LA do when the wind stops blowing? It is not a 24/7 resource. Lots of stalled CODA's on the freeways :)

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anonymous
PeteInOhio 11/07/2011 09:08 AM

If measured only for benefit to the U.S., I vote for the wind farm, so long as all the components are made in the U.S., that Americans build the farm and run all the copper.

BTW, what is the carbon impact of making the wind mills and all associated infrastructure. It can't be zero.

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anonymous
Matt 11/07/2011 07:17 AM

If we are going to spend 7 Billion on energy products we should be exploring Liquid Fluoride Thorium Reactors(LFTR). They are distant cousins to the much safer molten sodium reactors used by the Navy, but use liquid fluoride as their working fluid.

LFTRs are much safer than traditional nuclear reactors and can't melt down. They use Thorium as a main fuel, but can take waste uranium and plutonium(both of which would have to go to Yucca Mountain for 10,000 years) as a secondary fuel. The.... More

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anonymous
Mark 11/07/2011 01:40 AM

All I can say is I would rather have an 100% Renewable energy grid rather than the current one we have. I can only see positives from increased investment in renewals. Putting money into our "old selves" would only make it take that much longer before we become self dependent from energy.

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anonymous
Wastrel 11/07/2011 01:28 AM

"A typical U.S. driver would charge her Coda 100 times in a year"

Oh, indeed. 'His' Coda is accepted English. Also, the typical driver is male. While I am all for wind power and I think that the oil sands idea that is on the table is irredeemably stupid, you should simply explain those facts without the use of new age jargon.

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anonymous
Terry Dean 11/07/2011 01:04 AM

We should do both.

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anonymous
Martin from SC 11/06/2011 20:40 PM

Tax payers should pay for neither. If its economically feasible major corporations will put up capitol. Let the corporations invest then make a profit on their investment.

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anonymous
John G. 11/06/2011 20:03 PM

Lets look forward and not backward. Do the wind power option! That is where the Asians and Europeans are focused right now. The tar sand oil is the last gasp of big oil. Why waste precious dollars prolonging the inevitable; we are way past peak oil.

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anonymous
Albert 11/06/2011 11:07 AM

Why not geothermal energy, cheaper (in the long run) and renewable via reinjection. Look at Finland and Iceland as an example. Geothermal is plentiful as long as there's surface water and heat from within mother earth - all of the west coast could be powered by it.

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anonymous
teach 11/06/2011 10:42 AM

It seems like most of your facts are wrong. Heavy oil costs $8 to produce not $30, not to mention all the other errors which readers have pointed out. Canada is a foreign country, but the oil companies in Alberta are mostly American (Chevron, Exxon, Sun Oil), most of the pipeline goes through the US creating high paying construction jobs, to US refineries creating more good jobs.

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anonymous
Anonymous 11/06/2011 19:59 PM

Actually, it is you who needs to do the info. check, Teach. According to wiki, it costs $27 to produce tar sand oil; Yahoo answers quotes $30-$35 per barrel, versus $7 per barrel in conventional, easily reached wells. What is your source?

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anonymous
Canuckistan 11/06/2011 10:37 AM

I would vote for clean energy. But like RVMan says, the wind project would feed California, and the oil pipeline feeds the East coast. So we should get both. There are plenty of pipelines in the USA, the refineries are getting their oil from somewhere.

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anonymous
John 11/06/2011 08:41 AM

Ok, the first project is enough to power LA, a city of 3 million, and that's a good thing, and meeting 2.5% of our oil needs is not nearly enough for the second project. Seems to me that the US has some 300 million people, which means only 1% live in LA. You have 2.5% vs. 1%, and he asks if the second option is worth the cost? Don't get me wrong, I'm all in favor of renewable energy and it sounds like a good start; I'm just against such heavily one-sided "reporting".

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anonymous
Luke 11/06/2011 00:16 AM

Moreover, the debate on wind versus oil is just another ploy to push you into party affiliation and creates no purpose other than for the fat cats of Washington, both Democrat and Republican, to make millions off your bickering. You are a drone as planned. Congrats.

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anonymous
Enter your name 11/06/2011 00:13 AM

These figures are terribly off. The oil also feeds diesel fuel and plastics and nylons. Not to mention fuel oil for heating. And to top it off, you compare a 45,000+ new sedan with old cars/trucks. Even a ford explorer now gets 28 mpg highway. Let's use a Prius V for comparison and factor in a Jetta Diesel for the remainder of that barrel. Suddenly we have enough fuel for 30 million cars. And now we're right back at why nobody significant is investing in wind. ITS TOO EXPENSIVE!

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anonymous
Duh - Brilliant 11/05/2011 16:04 PM

I wouldn't spend a dime - so that I could say I'm worth 7 Billion y'all.

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anonymous
Paul 11/05/2011 15:42 PM

Let the Canadians keep their owl, as this article says, energy is energy. California, the nations largest consumer of energy, gets 85% of its electricity right now from fossil fuels, anything that can dent that helps reduce the demand for oil and reduces our carbon footprint.

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anonymous
azezel 11/05/2011 13:09 PM

The capstone doesn't want 10-15% growth. If they did they would have stayed with the jason nuclear development plan. We would have 240 nuclear power plants by now. With another 160 in the plans before reaching its peak in 2050. Then the older facilities would be decommissioned as a resonance/legacy economy is put into place. This premature flirt with sustainability may infact cause a neoserfdom age and cost many members of the capstone their immortality.

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anonymous
Enter your name 11/05/2011 11:30 AM

we need free energy for everyone why do we pay per kilowat hour when they use solar energy to give to us... thats wrong . if i had 7 billion dollars the gov would have to assaniate me casue i would make everything free for the world and stop hunger world wide.

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anonymous
John 11/06/2011 08:44 AM

$7 trillion isn't enough to do that, much less $7 billion. Besides, people have thought of making everything free and just asking people to work as hard as they can with no real incentive (if it's all free, what good are savings?). You may have heard of those who came up with or tried the idea: Marx, Lenin, Mao, etc.

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anonymous
Anonymous 11/05/2011 15:08 PM

There is no such thing as free in life - ever. Dummy.

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anonymous
the other guy 11/05/2011 11:23 AM

Every one needs to see the movie spOILed. www.spoiledthemovie.com

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anonymous
Enter your name 11/05/2011 10:20 AM

Surely, if the scientific minds and not-so-scientific minds of the world pondered this problem, a solution could be found. Chicken wire?

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anonymous
Harley 11/05/2011 06:46 AM

this is kind of a no brainer but we know how are our government is, useless and they think with something other than the brains GOD gave us and also just lack simple common sense!!!

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anonymous
Malfunction 11/05/2011 03:18 AM

I would pick renewable energy.

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anonymous
Thomas Carden 11/04/2011 21:31 PM

The author has failed to mention the thousands of birds that the turbines would kill.

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anonymous
Anonymous 11/06/2011 21:28 PM

i know plenty of hunters that kill plenty more birds than the wind turbines do

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anonymous
Anonymous 11/06/2011 00:32 AM

And what about the abundance of life on this planet? Did you stop to think about that before this tiny problem with birds.. vs the much larger problems caused by the alternative?

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anonymous
Storm 11/05/2011 17:28 PM

[citation needed]..
Ever been to SE Wyoming?.. Birds are not plentiful in that area to begin with. It's a High altitude desert. Below the turbines you don't see a pile of dead birds..

I think the wind turbine companies should be responsible for having a neutral impact on the bird population.. with a requirement to create proper habitat to keep the population at pre wind-farm levels.

Getting wind power right is important, The oil sands will be there until we use them. .... More

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anonymous
Anonymous 11/05/2011 07:43 AM

irrelevant.

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anonymous
Harley 11/05/2011 06:50 AM

hmmm brids vs our waterways and food supply...again, it's a no-brainer and we can develop things that will reduce effects to the bird populations. Also, if we aren't building in a migratory path the collateral damage to the birds would be pretty insignificant in overall numbers...

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anonymous
Alfred E. Neuman 11/04/2011 23:52 PM

Who cares about a few dead birds? We cannot let a few bird loving, animal loving eco morons impact our energy policy. We need to be as energy independent as possible, we need to be free of these oil producing nations that hate us. I do not mind killing a few birds, if we do not have to have our young men killed by these oil rich nations that loathe us.

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anonymous
MakeThemEatCake 11/04/2011 16:42 PM

I would keep a billion for myself and then give every man, woman, and child in the U.S $20 bucks

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anonymous
MakeThemEatCake 11/04/2011 16:41 PM

I would keep a billion for myself and then give every man, woman, and child in the U.S $20 bucks

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anonymous
Biased much? 11/04/2011 16:31 PM

This article nearly made me laugh out loud. Even in such an obviously biased article, it is rare to see such blatant and unsupported assumptions pushing two opinions, projects, ideas firmly in opposite directions.

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anonymous
BlowHarder 11/04/2011 15:55 PM

Definitely have to go for the wind power, rather than the tar sands... If we could get a good grip on wind and solar power, we could finally wean ourselves off the oil teat once and for all...

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anonymous
Voltairine 11/04/2011 15:04 PM

I'd keep whatever kept me in my home, fed, clothed, healthy, etc. off the interest and donate the rest.

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anonymous
steved 11/04/2011 12:11 PM

How deluded are you people? The $7B will NOT provide power "forever". Only until the turbines need a major rebuild. Unfortunately most wind turbines are not designed to be easily rebuilt. In 10 years there will be thousands on non-functional wind turbines all over this country. Too costly to repair. When the government stops funding turbines, people will stop building them and installing them because the cost far outweighs the cost of fossil fuels. Wake up.

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anonymous
Anonymous 11/05/2011 19:07 PM

you are completely wrong. Most are designed to operate 45 years.

Wake up neocon

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anonymous
Anonymous 11/05/2011 19:06 PM

you are completely wrong. Most are designed to operate 45 years.

Wake up neocon

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anonymous
Ideasmatter 11/04/2011 12:52 PM

Actually, we are not so deluded. The life expectancy for wind turbines is 20 to 30 years, according to most sources, not 10. And then only moving parts will have to be switched out, not the tower itself, access roads, power lines, etc. The "rebuild" comment is a red herring, of course it is not overly complicated to switch out a gearbox, alternator, and blades.

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anonymous
TheRealDoris 11/04/2011 18:38 PM

Right, and let's not even start on the true 'cost of fossil fuels'. And really, what could possibly be anyone's objection to exploring renewable forms of energy, other than having one foot firmly planted in 1962 and the other in denial. Wake up Steved, the planet can't produce it as fast as we're consuming it, nevermind the environmental issues in doing so.

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anonymous
Roallin 11/04/2011 11:21 AM

Coke and strippers

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anonymous
Cyznyx 11/04/2011 10:15 AM

I'm all for wind and solar power. It's something we NEED to do
One MAIN PROBLEM that every one seems to miss is the CORPORATE GREED that is already taking place and will continue to do so. So when I see the MW cost, I wonder.....will it be exploited later?

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anonymous
joe j 09/27/2011 23:55 PM

4000 lbs of rare earth elements in every turbine made overseas not free not green not cheap

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anonymous
Dave Finnigan 09/11/2011 19:57 PM

Regarding that line in the sand you referenced, please watch and listen to this song.
http://www.youtube.com/watch?v=mvU8jNDCULA

Also 1253 eventually got arrested at the White House Tar Sands protest.

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anonymous
editorial suggestion / request 09/07/2011 14:15 PM

You need to make your images related to this (and other) articles enlargeable! I can't read the legend/keys at all. E.g.:
http://www.mnn.com/sites/default/files/user-39/alberta-v-wind.jpg

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ErikaLudwig
ErikaLudwig 09/07/2011 16:36 PM

We have passed this suggestion along to our tech team. Thank you for your input.
Best,
Erika, MNN staff

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anonymous
Nancy Califf Edwards 09/05/2011 23:28 PM

Wind power is superior to all other energy. Clean, pretty quiet.

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