The New Mainstream

With oil prices going through the roof, it‘s time to take a new look at alternative energy.

It’s been nothing but bad news on the energy front of late. Oil prices have shot above $70 a barrel. Gas is pushing close to $3 per gallon, and may hit $4 before year’s end. Unrest continues to ravage the oil-rich Middle East.

One result: There is a newfound appreciation for alternative energy sources. Once derided as the obsession of the crunchy Birkenstock-wearing set, options such as solar panels, hybrid cars, and wind energy are emerging as common sense investments these days.

What’s more, there is good news for businesses willing to consider a different model of energy consumption. Minnesota and the federal government have directed money and tax breaks to jump start such energy options as ethanol, solar, biodiesel, fuel cells, wind power, and hybrid cars. And a growing number of programs have begun focusing on “green buildings” to encourage developers and businesses to consider everything from green roofs to energy-efficient lighting to high-performance mechanical and ventilation systems.

Alternative transportation options

If you have offices in the Twin Cities metropolitan area, you can enroll in a Metro Transit program to reduce employee commuting costs (see www.metrotransit.org ). Once at work, however, commuters sometimes need a car. The answer to that problem could be car sharing. Hour car ( www.hourcar.org ) has a fleet of Priuses in Minneapolis and St. Paul while Zip Car ( www.zipcar.com/index ) has a Minneapolis office. Both services allow consumers to pay to use a car for a few hours a week while encouraging businesses to work out longer-term deals for regular use.

Saving energy takes less time, thought and sacrifice than many people imagine. With the price of energy headed up, the impetus for doing the right thing for the environment ¾ and your bottom line ¾ has never been stronger.

Note: On May 17, an MTI and the Minnesota High Tech Association (MHTA) Technology Awareness Forum, “ Alternative Energies: Becoming Mainstream, ” that will take a deeper look at transportation energy and possible alternative sources. Speakers will include

• Paul Plahn, director of advanced product development, Cummins Inc.
• Michael Lang, director of sales, e-Ride Industries
• Massoud Amin, CDTL director and professor of electrical and computer engineering, University of Minnesota
• Luca Zullo, principal chemical engineer, Cargill
• Vince Pellegrin, deputy general manager, Metro Transit

For more information, go to www.minnesotatechnology.org/training/events/forum.asp?forumId=212 or call MTI at 612-373-2900 or 800-325-3073.

Solar energy

Despite our frigid winters and fair share of gloomy days, Minnesota still has a climate conducive to solar power ¾ some experts feel we have the same solar power potential as balmy Miami. Solar energy is created when photovoltaic (PV) cells convert the sun’s rays into electricity. PV panels do everything from power state construction warning signs to rural irrigation systems. Some companies such as St. Cloud general contractor Winkelman Building Corp. and Flannery Construction in St. Paul boast large PV panels that reduce their reliance on traditional energy sources. Minnesota’s Solar Electric Rebate Program (www.state.mn.us/mn/externalDocs/Commerce/Solar_Electric_Rebate_Program_110802025911_RebateInstructions.pdf) offers homeowners and businesses from $1,000 to $20,000 for installing solar panels producing from 0.5 kilowatt systems to 10 kW. The rebate cuts the investment costs by as much as 20 percent, and solar panels are free of sales tax, too, which adds another 5 percent savings. Additionally, solar panels can be used for space heating and hot water supplies. Passive solar energy for hot water has a much faster pay back rate than systems producing electricity, though the equation may be changing with today’s higher energy prices. Also see: www.solarminnesota.org/about/about.asp .

Ethanol

The state of Minnesota has taken a national leadership role in promoting the use of ethanol as both an additive to gasoline and as a replacement fuel. Governor Tim Pawlenty’s Chevy Suburban runs on “E85,” a blend of 85 percent ethanol and 15 percent gasoline. So do many state vehicles, along with a growing fleet of privately owned cars and trucks. And if gas prices continue to climb, E85 could turn out to be an even more attractive option in the future. Nine automobile manufacturers produce dozens of models capable of using E85, and the Twin Cities has several stations offering the ethanol-heavy blend. For a map, see www.state.mn.us/portal/mn/jsp/content.do?subchannel=-536881511&programid=536908021&sc3=null&sc2=-536888997&id=-536881350&agency=Commerce .

Biomass

While state agencies and officials tout the benefits of biomass, it may not be coming to a power station near you anytime soon. Despite being loaded with potential, biomass ¾ which consists of organic materials such as wood byproducts and agricultural wastes that can be burned to produce energy or converted into a gas and used for fuel ¾ has been slow to catch on. But there are some notable exceptions. The City of Benson boasts the first poultry-fueled power plant in the country, and wood-burning biomass projects are underway in Northhome and Waseca. The largest biomass producer in the state, District Energy, sits next to the Science Museum of Minnesota in downtown St. Paul, where it provides electricity and hot water to Xcel Energy. Check out this site for more information on biomass in Minnesota: www.state.mn.us/portal/mn/jsp/content.do?id=-536881350&subchannel=-536881511&sc2=-536888132&sc3=-536888228&contentid=536907441&contenttype=EDITORIAL&programid=536906869&agency=Commerce.

Wind power

Want to support the alternative energy movement without putting PV panels on your roof or ethanol in your gas tank? Investing in wind power is one easy way to get in on the action. Every utility in the state allows businesses and consumers to buy wind-derived energy through programs such as Xcel’s WindSource ( www.xcelenergy.com/XLWEB/CDA/0,3080,1-1-2_735_3857-3320-5_406_657-0,00.html ). The energy you buy simply goes into the state’s energy grid but it has the impact of encouraging the development of more alternative energy sources. Also see: www.windustry.org .

Hydrogen

There’s been a lot of noise in the media over the hydrogen economy, including several mentions of it from President Bush. Clean, cost-efficient, and non-polluting, the hydrogen economy holds great promise. Hydrogen comes from a variety of sources, including biomass, fossil fuels, water, nuclear materials, and other carbon-rich sources. Michigan and other states have begun to develop strategies for a hydrogen future. Still, it remains in an exploratory stage, and is years away from reality. For more information, see www.emagazine.com/view/?171 and www.rmi.org/images/other/Energy/E03-05_20HydrogenMyths.pdf .

Hybrid vehicles

Perhaps the hottest car model around today is the Toyota Prius, the hybrid electric-gas automobile that goes as far as 650 miles between fill-ups. The Prius and other hybrid gasoline-electric cars have grown dramatically in popularity because of great gas mileage and their cool cache. The federal government has done its part in promoting their sale through a tax credit for hybrids ranging from $1,700 to $3,000.

Geothermal

The Green Institute in Minneapolis, a nonprofit economic development organization focused on sustainable enterprise, and a handful of other organizations are employing the earth to heat and cool their buildings. It’s easy to see why: Ground source heat pumps can provide heat in the winter and cooling in the summer, all in one unit. Grossly simplified, the unit itself features piping connected to a heat exchanger and ductwork going into the building. In the winter, a heat exchanger pulls in heat from the ground; in the summer, it pulls hot air from the building into the ground. For more information, see www.nd.gov/dcs/energy/pubs/renewable/geobuild.pdf .