Vail Resorts announces sustainability, net zero plan

Vail Resorts, Inc. -- the largest ski and mountain resort operator in the world -- has announced a comprehensive sustainability commitment that calls for "zero net emissions by 2030, zero waste to landfill by 2030 and zero net operating impact to forests and habitat."  According to the company, Vail Resorts' "Epic Promise for a Zero Footprint" will give resort guests and employees "the opportunity to enjoy the natural environment and resources without leaving an impact."
 
Vail Resorts' subsidiaries operate 11 mountain resorts and three urban ski areas, including Vail, Beaver Creek, Breckenridge and Keystone in Colorado; Park City in Utah; Heavenly, Northstar and Kirkwood in the Lake Tahoe area of California and Nevada; Whistler Blackcomb in British Columbia, Canada; Perisher in Australia; Stowe in Vermont; Wilmot Mountain in Wisconsin; Afton Alps in Minnesota and Mt. Brighton in Michigan. The company also owns and operates hotels as well as a real estate planning and development subsidiary.

In a July 25, 2017, press release, Vail Resorts announced its "Epic Promise for a Zero Footprint" sustainability commitment.  Pointing to Whistler Blackcomb's environmental commitment as inspiration, Vail Resorts announced its intent "to go beyond setting a partial emissions reduction target by executing on a more expansive and ambitious plan."

With respect to net zero emissions from operations by 2030, the Vail Resorts plan calls for continued reduction of the company's electricity and gas use by improving operating practices and investing $25 million in innovative, energy-saving projects, such as low-energy snowmaking equipment, green building design and construction, and more efficient grooming practices and equipment.  Among other measures, it envisions purchasing 100 percent renewable energy equivalent to Vail Resorts' total electrical energy use and working with utilities and local, regional and national governments to bring more renewable energy to the grids where the company operates its resorts. As an interim goal, the plan states the company's intent to achieve a 50 percent reduction in its net emissions by 2025, based on 2016 levels.

Other 2030 goals set in the Vail Resorts plan include "zero waste to landfill" (by diverting 100 percent of the waste from its operations to more sustainable pathways) and "zero net operating impact to forests and habitat" (by measures including mitigation, tree planting and forest restoration, and minimizing or eliminating the impact of any future resort development). 

Biofuels lead growth in U.S. biomass energy

The use of energy from biomass resources in the United States grew more than 60% over the decade between 2002 and 2013 -- primarily in the form of increased use of biofuels like ethanol and biodiesel that are produced from biomass.


A fuel pump displays prices for gasoline blended with up to 10% ethanol.

According to the U.S. Energy Information Administration, biomass accounted for about half of all renewable energy consumed in 2013 and 5% of total U.S. energy consumed. The three primary sources of this biomass are wood and forest products byproducts, waste including municipal solid waste and landfill gas, and raw organic feedstocks like corn and soybean oil used to produce biofuels.

Of biomass energy resources, biofuels experienced the greatest growth over the last decade. From 2002 to 2013, biofuels created from biomass grew more than 500%, driven largely by increases in U.S. production of ethanol and biodiesel for blending as transportation fuels. These biofuels are typically produced from feedstocks such as agricultural crops and other plant material, animal byproducts, and recycled waste. For U.S. ethanol production, corn is the dominant feedstock, while biodiesel producers rely on soybean oil for just over half of feedstock needs and an array of biomass resources for the rest. Market demand for these biofuels comes in part from federal mandates such as the U.S. Environmental Protection Agency's Renewable Fuel Standard, which requires the blending of certain volumes of biofuels into gasoline and diesel.

Meanwhile, EIA data shows that consumption of wood and waste energy increased just 4% over the decade. About two-thirds of U.S. wood energy is consumed for industrial processes, while nearly all U.S. waste energy is consumed for electric generation or industrial processes.

If this trend continues, woody biomass and waste energy will continue to hold their positions in our portfolio of energy resources, while continued growth in the conversion of biomass into biofuels for transportation and other needs will increase biofuels' weighting in the nation's energy mix.  At the same time, debates continue over the cost and value of programs encouraging the growth of corn as a biofuel feedstock.  What does the future hold for biomass in the U.S.?

FERC report shows investment in natural gas

This week the Federal Energy Regulatory Commission issued its monthly energy infrastructure update covering May 2013.  The report details highlights in expansions of energy assets, ranging from natural gas pipelines to electric generation and transmission facilities.  It provides a monthly snapshot of recent activity, and can be used to spot trends in domestic energy development.  The current report illustrates increased investment in natural gas-related infrastructure, ranging from proposed new liquefied natural gas export terminals to newly installed natural gas-fired power plants.

The iconic U.S Capitol dome, where policies are made that shape energy investment.

Natural gas exports poised for growth.  Last month two facilities to liquefy natural gas for export advanced through the FERC regulatory process:

• Jordan Cove Energy requested authorization to construct and operate four liquefaction trains and storage facilities at a proposed export terminal in Coos Bay, Oregon.  If authorized and built, the project could export up to 900 MMcf per day of liquefied natural gas (LNG).  This gas would likely be destined for Asian markets.
• Golden Pass Products proposed a larger project in Texas.  Along with Golden Pass Pipeline, Golden Pass Products commenced the FERC prefiling process to construct and operate a 2,100 MMcf per day liquefaction facility for export at an existing import terminal located in Sabine Pass, Texas.  The Golden Pass project also includes proposed modification of an existing pipeline system to enable 2,500 MMcf per day of bidirectional capacity to the proposed export terminal.

These projects demonstrate increased interest in exporting natural gas to overseas markets.  The boom in domestic shale gas production has led to low natural gas prices in the U.S.  Domestic pricing is roughly one-third of the price that exporters can get by sending LNG to Europe or Asia.  Whether and to what extent the U.S. will allow exports remains to be seen, but in the interim, developers are scrambling to secure permits for export. 

New electric generation, mostly fueled by natural gas.  Last month a total of 33 new electric generation units came online.  Nearly three-quarters of the newly installed capacity is fueled by natural gas, adding 2,529 MW of new natural gas-fired electric generating capacity.  The new gas projects vary widely in scope:

• The largest, Mitsubishi Corporation’s 850 MW CPV Sentinel Energy Expansion in Riverside County, consists of eight 106.25 MW units.  Mitsubishi’s generation is sold to Southern California Edison under a long-term contract.
• In the middle, Procter & Gamble Company developed a 64 MW natural gas fired project to produce power for its paper products manufacturing facility in Wyoming County, Pennsylvania.
• At the opposite end of the scale, two landfill gas-fired projects came online in New York.  Wehran Energy Corp.’s 4.5 MW Brookhaven facility consists of three 1.5 MW Caterpillar Inc. generators.  The Brookhaven project was also joined by a 1.6 MW expansion of Waste Management Inc.’s Oneida-Herkimer project.

These projects illustrate the diversity of new natural gas fired projects being developed this spring.  The abundance of low-cost natural gas drives interest in the utility scale gas projects, while a desire to capture landfill-produced methane and put it to use as biogas supports the smaller projects.  As a result, natural gas’s share of total installed operating generating capacity grew slightly to 42.56%.  Despite a resurgence of coal as a fuel for electric generation, coal remains in second place in the installed capacity race, representing 28.9% of total U.S. installed capacity.

While each monthly energy infrastructure update represents only one data point, in the aggregate, they paint a picture of the direction of U.S. energy infrastructure development.  Natural gas is squarely in the center of this picture.  Based on consensus projections that natural gaswill remain the most cost effective fuel for decades to come, increased expansion of natural related infrastructure is likely to continue for some time.

From brownfields to renewable energy sites

Contaminated lands, landfills, and mine sites are increasingly being used as sites for renewable energy projects.  For example, many landfills may be suitable for siting solar photovoltaic panels.  Former industrial sites with subsoil contamination may not be suitable for redevelopment with buildings, but may be able to host solar or wind-based electric generation.  According to the U.S. Environmental Protection Agency, renewable energy systems have been installed at 60 such sites in 25 states.  What is the future of this trend?
 
EPA policy encourages renewable energy development on current and formerly contaminated land and mine sites when it is aligned with the community’s vision for the site.  Under EPA's RE-Powering America's Land initiative, EPA identifies the renewable energy potential of these sites and provides resources for communities, developers, industry, state and local governments.

An EPA report released earlier this month describes 60 renewable systems installed on potentially contaminated lands, landfills, and mine sites.  Of these, the majority (49) generate electricity through solar photovoltaic technology.  Seven generate electricity from the wind; biomass, geothermal, hydropower, and combined solar/wind round out the count.  Together, these resources provide 184.7 MW of electric generation capacity.  Most sell their power into the wholesale market, while some use the power on-site.

Host sites are split among private, federal, municipal, and state ownership.  Sites include those regulated under EPA's Comprehensive Environmental Response, Compensation, and Liability Act program (CERCLA, or Superfund), EPA's Resource Conservation and Recovery Act program (RCRA), brownfields, and landfills.

Many more potential sites exist.  Thousands of properties across the country face redevelopment challenges from contamination.  The country is home to over 3,000 active commercial landfills and 10,000 municipal landfills.  While not all may be suitable for renewable energy development, the concept offers the opportunity to create a revenue stream from property otherwise limited in use and saddled with environmental liabilities.  This revenue could be used for remediation of the sites' contamination, as well as for other purposes.  The trend of developing renewable energy facilities on contaminated lands, landfills, and mine sites is likely to continue for the foreseeable future.

Renewables dominate new electric generating capacity

In September 2012, the United States added 433 megawatts of new utility-scale electric generating capacity - and according to a federal report, it all came from renewable resources.

The Federal Energy Regulatory Commission's September 2012 energy infrastructure update provides a summary of recent developments of natural gas, hydropower, electric generation, and electric transmission facilities.  For electric generation, the report provides a breakdown of newly installed capacity by resource type.

According to the report, 5 wind projects came online in September, totaling 300 megawatts of capacity:

• EDF Group’s 140 MW Phase 1 Pacific Wind in Kern County, California
• Forsyth Street Advisor LLC’s 57.6 MW Phase 1 Horse Butt Wind Farm in Bonneville County, Idaho
• KODE Novus I LLC’s 80 MW Phase 1 Novus Wind Farm in Texas County, Oklahoma
• Fire Island Wind LLC’s 17.6 MW Phase 1 Fire Island Wind Project in Anchorage Borough, Alaska
• Kodiak Electric Association’s 4.5 MW Phase 2 Pillar Mountain Wind project expansion in Kodiak Island Borough, Alaska

Additionally, 18 solar projects came online in September, totaling 133 MW of capacity.  Among these are a number of projects earning "largest" ranks:

• NRG Energy & MidAmerican Renewables, LLC’s 50 MW Phase 5 Aqua Caliente Solar Project expansion in Yuma County, Arizona came online.  The expansion brings the Aqua Caliente Project's operational photovoltaic capacity to 250 MW, making it currently the largest photovoltaic facility in the country.
• Zongyi Solar America’s 20 MW Tinton Falls Solar in Monmouth County, New Jersey, the largest photovoltaic project in New Jersey
• Southern Sky Renewable Energy LLC’s 5.6 MW Canton Landfill Solar Project in Canton County, Massachusetts, the largest solar facility in New England

The report indicates that no fossil fuel-fired generation came online last month.  The growth in renewable energy may be due to a variety of factors, including a rush to get wind projects built before the federal production tax credit expires at the end of the year, state renewable portfolio standards, and future projections about the cost of traditional fuels.  Nevertheless, wind and solar remain relatively small players in the nation's energy mix, with 4.43% of the nation's total generating capacity coming from wind and only 0.29% coming from solar.  Still, the growth of these resources illustrates recent investment's focus on the renewable power sector.