Colombus, U.S.A. – The U.S. Chamber’s Institute for 21st Century Energy on July 17 launched a major new campaign focused on building support for utilizing shale energy resources in Ohio.

The “Shale Works for US” campaign is a national effort designed to build support for the vast economic and energy security benefits of natural gas and oil produced from shale. The Institute for 21st Century Energy is the energy policy arm of the U.S. Chamber of Commerce, the world’s largest business organization.

“Shale energy has the potential to be an economic game changer for America and for Ohio,” said Karen Harbert, president and CEO of the Energy Institute. “Ohioans are already beginning to see the benefits of shale development, but much more shale energy sits below the surface.  The Shale Works for US campaign will help educate the public and the business community and demonstrate the ways in which increased shale production will benefit communities across the Buckeye state.”

Almost twenty percent of the Marcellus shale formation — one of the world’s largest — is in Ohio. Development of shale energy is expected to bring more than 65,000 jobs; contribute $4.86 billion to Ohio’s economy; and result in $3.3 billion of labor income (an average of $50,225 per job) by 2014, according to the Ohio Shale Coalition.

“Oil and natural gas production in Ohio is not new, but recent advances in technology will allow for vast quantities of recently discovered shale energy to be produced in a safe, environmentally responsible way,” said Linda Woggon, executive director of the Ohio Shale Coalition and executive vice president of the Ohio Chamber of Commerce. “This production will not only create jobs for Ohioans, but generate new revenues for localities throughout our state, meaning more money for education and public safety and lower residential property taxes.”

Nationally, the Shale Works for US campaign will build a network of communities, businesses and policymakers throughout the states and at the federal level to support the economic, job creation and energy security benefits generated by shale energy.

The Shale Works for US campaign will include extensive grassroots recruitment, advertising, and educational outreach to businesses and community groups. Initially, similar efforts are underway in Pennsylvania and West Virginia with plans to expand across the country.

The mission of the U.S. Chamber of Commerce’s Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean.

Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.

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Washington, U.S.A. — The American Fuel & Petrochemical Manufacturers (AFPM) submitted a letter in response to the July 10 hearing by the House Subcommittee on Energy and Power on the challenges and opportunities of alternative fuels and vehicles. In the letter, AFPM President Charles T. Drevna states:

“Free markets, not mandates, should and can drive sensible integration of alternative fuels into the consumer marketplace. AFPM members have been significantly affected by the increasing amounts of alternative fuels mandated under federal law. The challenges the federal Renewable Fuels Standard (RFS) are posing highlight the problems with government mandates and highlight the need for a different approach to alternative fuel development and commercialization.”

“One challenge is the increasing amounts of biofuels refiners must blend into the fuel supply. The current size and scope of the ethanol mandate is costly, unworkable, and could make refiners less competitive in a growing global marketplace. The breadth of these challenges show that the RFS needs to be repealed, or at the very least, significantly reformed.”

AFPM also mentioned exploration of natural gas: “In addition to the problems with the RFS, AFPM has concerns with proposals to create massive subsidies and mandates for further use of natural gas as a transportation fuel. A recent IHS CERA report found that low natural-gas prices make natural gas powered vehicles economical in the transportation sector without federal incentives, and that any upfront investment costs could be recovered in three years.

Moreover, natural gas is an important feedstock for petrochemical manufacturing, power generation, and many other products such as fertilizer. Distorting the market through mandates and subsidies will have unintended consequence, much like the RFS. Markets, not mandates and subsidies, should determine the highest and best use of our natural resources.”

AFPM, the American Fuel & Petrochemical Manufacturers (formerly known as NPRA, the National Petrochemical & Refiners Association) is a trade association representing high-tech American manufacturers of virtually the entire U.S. supply of gasoline, diesel, jet fuel, other fuels and home heating oil, as well as the petrochemicals used as building blocks for thousands of vital products in daily life.

AFPM members claim to make modern life possible and keep America moving and growing as they meet the needs of our nation and local communities, strengthen economic and national security, and support 2 million American jobs.

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Last week’s media coverage of the Obama administration’s newly-proposed fracking rules focused so heavily on how drilling companies would have to disclose the chemicals they use that it largely overlooked the toughest provisions: Drillers would be required to test the physical integrity of their wells, and more water would be protected from drilling. Since many wells fail because the cement and casings crack, the new tests could prevent dangerous leakages.

One major limitation: Although widely understood as “national” guidelines, the draft rules would in fact only apply to a sliver of the nation’s natural gas supply. That’s because they would apply to mineral rights managed by the Bureau of Land Management, which means areas beneath most BLM and tribal land, but scarcely any U.S. Forest Service, private or state-owned lands – where most drilling occurs. Industry has criticized the proposed rules as too restrictive.

The draft rules would require companies to conduct “mechanical integrity tests.” These include pressure tests to make sure that the well can withstand the highly pressurized fluid used for fracking. Ensuring that wells are properly sealed is considered critical for preventing water and ground contamination.

The proposed rules also expand the scope of water protected from drilling to include not just fresh water but all “usable water” – meaning lower quality water used for agriculture and construction, as well as water that can be treated to make potable. Currently, only water with up to 5,000 parts per million of total dissolved solids is protected by the BLM. The new rules would expand that definition to include water with up to 10,000 parts per million, which matches the EPA’s definition for an underground source of drinking water.

“The proposed rule will modernize our management of well stimulation activities – including hydraulic fracturing – to make sure that fracturing operations conducted on public and Indian lands follow common-sense industry best practices,” Secretary of the Interior Ken Salazar said in a statement.

The lands covered by the proposed rules are the source of “11 percent of the Nation’s natural gas supply and five percent of its oil,” according to the BLM. About 3,400 wells are drilled on these lands each year, according to the bureau, and 90 percent of those wells use hydraulic fracturing, a technique to extract natural gas by injecting into the earth highly pressurized fluids laden with chemicals, sometimes including potentially toxic ones such as benzene and lead.

Environmental activists wonder how likely the rules are to be enforced. In New Mexico, for example, the BLM oversees more than 30,000 active wells ­– with only 69 inspectors. “However strong the rules are, enforcement is only as good as staff on the ground,” said attorney Erik Schlenker-Goodrich of the Western Environmental Law Center.

Environmentalists also lambasted a provision that would require companies to disclose the chemicals they use to frack on some public lands. At issue was timing: The draft rule would allow companies to complete drilling before they make public the chemicals they had injected into the ground. Although some drilling companies report the chemicals they use to online public registries, they are not always required to do so. Many drillers claim that disclosure would amount to revealing “trade secrets.”

The timing of disclosure matters. Landowners who want to see if a nearby well is polluting their land or water need a baseline assessment of chemicals that are present before drilling. If they don’t know the chemicals the company will inject, the only way to get a baseline reading is to test for a vast number of chemicals, an expensive and impractical undertaking.

“Knowing after the fact is nice, but does not allow for any steps to be taken if the chemicals being used are of concern to the public. I urge the Interior Department to strengthen this rule,” Congressman Maurice Hinchey (D-NY) said in a statement. Hinchey co-authored national legislation to give the EPA the power to monitor all fracking activities in the U.S., which under current law the agency cannot regulate.

The proposed disclosure rules would not demand much more than the standards some states already have in place. For example Colorado and Wyoming have large swaths of public lands targeted by the draft rules, but they already have disclosure regulations that are equally stringent, if not more so, than the federal proposal. Colorado requires that companies disclose the chemicals they use in addition to their concentrations within 60 days of fracking activities. Wyoming requires disclosure of chemicals both before and after fracking, although its regulation has been criticized for not making all of those disclosures public.

“It seems like BLM has looked at state rules as a ceiling, not as a floor, for what should be done,” said attorney Schlenker-Goodrich, who charged that the administration was putting forward “half-measures.”

Industry charges that the rules would slow down drilling too much. The Independent Petroleum Association of America and ExxonMobil did not immediately respond to requests for comment, but the IPAA head Barry Russell told Reuters that the rules will “will undoubtedly insert an unnecessary layer of rigidity into the permitting and development process.”

Once the draft rule is published in the Federal Register, the BLM will take comments for 60 days before it finalizes the rule.

by Lena Groeger, ProPublica, May 8, 2012, 12:04 p.m.

Image Courtesy of    billb1961

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One of the key controversies about fracking is the chemical makeup of the fluid that is pumped deep into the ground to break apart rock and release natural gas. Some companies have been reluctant to disclose what’s in their fracking fluid. Scientists and environmental advocates argue that, without knowing its precise composition, they can’t thoroughly investigate complaints of contamination.

Disclosure requirements vary considerably from state to state, as ProPublica recently charted. In many cases, the rules have been limited by a “trade secrets” provision under which companies can claim that a proprietary chemical doesn’t have to be disclosed to regulators or the public.

One apparent proponent of the trade secrets caveat? The American Legislative Exchange Council, better known as ALEC, a nonprofit group that brings together politicians and corporations to draft and promote conservative, business-friendly legislation. ALEC has been in the spotlight recently because of its support of controversial laws like Florida’s “Stand Your Ground” provision.

This weekend, as part of a story on ALEC’s political activity, The New York Times noted that the group recently adopted “model legislation” on fracking chemical disclosure, based on a bill passed in Texas last year. According to The Times, the model bill was “sponsored within ALEC” by ExxonMobil, which runs a major oil and gas operation through its subsidiary, XTO Energy.

The advocacy group Common Cause, which provided the documents on ALEC’s lobbying efforts to The Times, describes model legislation, in many cases identifying by name the company that proposed it to ALEC’s task forces.

ALEC has recently removed its list of model bills from its main website, and did not respond to requests for comment. A spokesman for XTO Energy confirmed that the company is a member of ALEC, but he did not provide details on the company’s involvement with the disclosure bill.

The spokesman said ExxonMobil supports “full disclosure of the ingredients and additives in hydraulic fracturing fluids,” but added that when vendors request it, ExxonMobil has “respected the trade secret status of their products.” Last year, the company began voluntarily uploading chemical disclosures to FracFocus, a clearinghouse website run by the Groundwater Protection Council and the Interstate Oil and Gas Compact Commission.

In a recent blog post, ALEC claimed that legislators in Pennsylvania, Illinois, Indiana, New York and Ohio have introduced versions of its model bill, but many of those states vary in the level of disclosure required and how they handle the trade secrets provision. Laws in 11 states require at least partial disclosure, and the Bureau of Land Management recently drafted disclosure guidelines for drilling on federal land.

These laws have been relatively well-received by environmental advocates, though the trade secrets issue remains a concern for some. In Ohio, for example, proprietary chemicals don’t have to be disclosed to regulators or the public. In Pennsylvania, they are disclosed to regulators, and the public can request information on them from the state Department of Environmental Protection on a case-by-case basis.

The Texas law, which ALEC cites in the post as its template, codifies the trade secrets exemption, and who can challenge it:

Otherwise, Texas’ law requires that companies post disclosure forms for each completed well on the FracFocus site. They must disclose all chemicals but only report the concentrations of those that are hazardous. The law also requires that the companies give the total volume of water used in fracking.

The Environmental Protection Agency cannot regulate fracking in order to protect groundwater, because in 2005 Congress exempted fracking from the Safe Drinking Water Act, which controls how industries inject substances underground.

According to ALEC’s blog, the model disclosure legislation is designed to promote “responsible resource production” and “aims to preempt the promulgation of duplicative, burdensome federal regulations” from the EPA, in particular. ALEC has consistently opposed any federal control over fracking. In 2009, the group adopted a “Resolution to Retain State Authority Over Hydraulic Fracturing.”

by Cora Currier, ProPublica, April 24, 2012, 2:06 p.m.

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American Security Project released the 2012 edition of its annual White Paper “America’s Energy Choices.” The paper details a range of options for America’s energy future, ranging from coal and natural gas to solar and tidal power.

The report sets out how each contributes to America’s energy make-up and how business and political leaders should weigh the competing priorities of energy security, economic stability, and environmental sustainability when making decisions.

“The domestic boom in fossil fuel production, particularly from shale gas and shale oil, is changing America’s views about energy security, while the development that American refiners have become major exporters of refined fuels has surprised many,” said Andrew Holland , Senior Fellow for Energy and Climate and the author of the report.

On the other hand Stephen A. Cheney, the CEO of the American Security Project, said that the politics of energy remain as frozen as they were then.

“Clean energy has become an even greater political football, while the return of rising oil prices has brought out the most short-term instincts in politicians. The way energy is used is clearly a national security issue. In the next decade the United States needs to make critical energy choices. We know we cannot carry on as we have been — the price of gas is but one example. We need to be more innovative and develop new technologies,” Cheney said.

“The choices we make on energy need to be informed by reality, not partisan bickering. This is what the American Security Project is here to do: forge that consensus for us to successfully move forward. We can solve these problems and in so doing increase national security.”

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Gasland documentary director, Josh Fox, was arrested on Wednesday, February 1, for what he claims is practicing his First Amendment right. According to usnews.com, the Wayne County filmmaker was arrested in the U.S. Capitol Building after attempting to film a congressional hearing linked with hydraulic fracturing, also known as fracking.

Fox says that after he filed for permission to film the hearing, he never received a response, which prompted him to attempt to film anyway. Capitol Police reported his arrest under unlawful entry, while Fox stated that he was only practicing journalism, according to media reports.

“I was not expecting to be arrested for practicing journalism. Today’s hearing in the House Energy and Environment subcommittee was called to examine EPA’s findings that hydraulic fracturing fluids had contaminated groundwater in the town of Pavillion, Wyoming.

I have a long history with the town of Pavillion and its residents who have maintained since 2008 that fracking has contaminated their water supply.” Said Fox regarding the arrest and congressional hearing, “I was arrested today for exercising my First Amendment rights to freedom of the press on Capitol Hill.”

During an interview, MSNBC host, Ed Schultz, discovered that the filming was being done in order to be featured in a follow-up documentary called Gasland II, also directed by Fox, which is said to be close to completion.  Also during the interview, Fox said that the hearing was going to be led by a Republican subcommittee and that he believed they were going to be attacking the EPA.

Fox was originally inspired to create Gasland after receiving a request to lease his land out for drilling. His website, www.gaslandthemovie.com, claims that after receiving the request, he then traveled up the coast, visiting various different fracking sites and the communities within the surrounding areas. He documented the fracking process and the possible effects the process takes on communities’ drinking water.

Fracking, as the website defines, is the act of drilling for natural gas extraction, utilizing  millions of gallons of water, sand, and proprietary chemicals blasted into deep wells. This process causes the rock and shale to fracture, thus emitting the gases within. For every frack that is completed, anywhere from 80-300 chemicals can be used.

However, due to the Haliburton Loophole, the companies involved in the drilling do not have to disclose the chemicals that are used. The website also claims that there have been over 1,000 reports by courts and governments of contaminated well water within communities surrounding fracking sites.

Fox has become a conflict ridden character within Wayne County, his home. Where some people see him as an activist, others claim he is merely using Gasland as his ride to fame and fortune. The trailer for the film here  may help you base your own opinions.

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While shared-ride transportation is inherently eco-friendly, many members of The GO Group, the world’s largest airport shuttle provider, are going one step further.

GO companies serving San Francisco International, Seattle-Tacoma International, Milwaukee’s GeneralMitchell International, Dallas-Ft. Worth and Puerto Rico’s Luis Munoz Marin International are converting all or part of their fleets to alternative fuels – either compressed natural gas (CNG) or propane.

While GO companies in Los Angeles (serving all southern California airports) and Chicago (serving Midway and O’Hare) also are in the process of doing so. CNG is a fossil fuel, while propane is a by-product of natural gas processing and petroleum refining.  Both burn cleaner than gasoline or diesel fuels, although CNG is considered the cleaner of the two.

Companies that convert to alternative fuels can earn a 50 cents-per-gallon tax credit as well other incentives from local government and the airports. GO Shuttle Express in Seattle, which has 43 propane-fueled vehicles, began the conversion process last January and has 20 more systems to install.

According to J. R. Rowley, president of GO Shuttle Express, the fuel saving has been around $2 per gallon.  Maintenance costs, however, have been slightly higher due to the learning curve. In San Francisco, GO Lorries has adapted 16 vans to CNG, with another 28 to be retrofitted for CNG by May. ”The conversions are expensive,” says Julio Bonilla, president, “but the fuel savings mitigate the cost.”

As of December, GO Riteway Transportation Group in Milwaukee has moved 21 of its 500-vehicle fleet to propane, experiencing a $7,000 fuel savings since October. According to Jason Ebert, fleet and facilities coordinator, the maintenance costs are lower as oil changes can now be performed every 7,000 rather than every 5,000 miles as in the past.

Ebert reports one reason GO Riteway opted for propane is that it is 90 percent as efficient as gasoline, which allows for a greater vehicle range than CNG, which is only 31 percent efficient.  Also, the cost of a propane conversion is one third less than the cost of a CNG conversion.

The GO Group LLC is a one-stop source for airport shuttles, which transport some 13 million passengers to and from airports in the United States, Mexico, Canada and Europe.

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A new study led by a NASA scientist highlights 14 key air pollution control measures that, if implemented, could slow the pace of global warming, improve health and boost agricultural production.

The research, led by Drew Shindell of NASA’s Goddard Institute for Space Studies (GISS) in New York City, finds that focusing on these measures could slow mean global warming 0.9 degrees F (0.5 degrees C) by 2050, increase global crop yields by up to 135 million metric tons per season and prevent hundreds of thousands of premature deaths each year. While all regions of the world would benefit, countries in Asiaand the Middle East would see the biggest health and agricultural gains from emissions reductions.

“We’ve shown that implementing specific practical emissions reductions chosen to maximize climate benefits also would have important ‘win-win’ benefits for human health and agriculture,” said Shindell. The study was published today in the journal Science.

Shindell and an international team considered about 400 control measures based on technologies evaluated by the International Institute for Applied Systems Analysis in Laxenburg, Austria. The new study focused on 14 measures with the greatest climate benefit. All 14 would curb the release of either black carbon or methane, pollutants that exacerbate climate change and human or plant health, either directly or by leading to ozone formation.

Black carbon, a product of burning fossil fuels or biomass such as wood or dung, can worsen a number of respiratory and cardiovascular diseases. The small particles also absorb radiation from the sun causing the atmosphere to warm and rainfall patterns to shift. In addition, they darken ice and snow, reducing their reflectivity and hastening global warming.

Methane, a colorless and flammable substance that is a major constituent of natural gas, is both a potent greenhouse gas and an important precursor to ground-level ozone. Ozone, a key component of smog and also a greenhouse gas, damages crops and human health.

While carbon dioxide is the primary driver of global warming over the long term, limiting black carbon and methane are complementary actions that would have a more immediate impact because these two pollutants circulate out of the atmosphere more quickly.

Shindell and his team concluded that these control measures would provide the greatest protection against global warming to Russia, Tajikistan and Kyrgyzstan, countries with large areas of snow or ice cover. Iran, Pakistan and Jordan would experience the most improvement in agricultural production.Southern Asia and the Sahel region of Africa would see the most beneficial changes to precipitation patterns.

The south Asian countries of India, Bangladesh and Nepal would see the biggest reductions in premature deaths. The study estimates that globally between 700,000 and 4.7 million premature deaths could be prevented each year.

Black carbon and methane have many sources. Reducing emissions would require that societies make multiple infrastructure upgrades. For methane, the key strategies the scientists considered were capturing gas escaping from coal mines and oil and natural gas facilities, as well as reducing leakage from long-distance pipelines, preventing emissions from city landfills, updating wastewater treatment plants, aerating rice paddies more, and limiting emissions from manure on farms.

For black carbon, the strategies analyzed include installing filters in diesel vehicles, keeping high-emitting vehicles off the road, upgrading cooking stoves and boilers to cleaner burning types, installing more efficient kilns for brick production, upgrading coke ovens and banning agricultural burning.

The scientists used computer models developed at GISS and the Max Planck Institute for Meteorology in Hamburg, Germany, to model the impact of emissions reductions. The models showed widespread benefits from the methane reduction because it is evenly distributed throughout the atmosphere. Black carbon falls out of the atmosphere after a few days so the benefits are stronger in certain regions, especially ones with large amounts of snow and ice.

“Protecting public health and food supplies may take precedence over avoiding climate change in most countries, but knowing that these measures also mitigate climate change may help motivate policies to put them into practice,” Shindell said. The new study builds on a United Nations Environment Program/World Meteorological Organization report, also led by Shindell, published last year.

“The scientific case for fast action on these so-called ‘short-lived climate forcers’ has been steadily built over more than a decade, and this study provides further focused and compelling analysis of the likely benefits at the national and regional level,” said United Nations Environment Program Executive DirectorAchim Steiner.

To see interactive and embeddable country-by-country graphs and maps of the impact of emissions reductions, visit: http://www.giss.nasa.gov/staff/dshindell/Sci2012/

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The U.S. natural gas market is going to have to change dramatically for pipeline developers to salvage their plan to ship gas from Alaska to the Lower 48 states, a key federal official said today at the Platts Energy Podium.

“It is going to take a big turnaround in the market, no doubt about it,” Larry Persily, federal coordinator of Alaska Natural Gas Transportation Projects, said at the newsmaker event in Washington, D.C. TransCanada and ExxonMobil have been working with state and federal officials on plans to build a $40 billion, 48-inch-diameter pipeline from the North Slope to the Canadian border, where Canadian pipelines would carry gas to the Lower-48.

However, shale gas development has dampened U.S. demand for the gas, and North Slope producers BP, ConocoPhillips, and ExxonMobil met with the Alaska Governor, Sean Parnell, last week to discuss alternatives to the project, including a pipeline to a new liquefied natural gas export project.

After the meeting, BP CEO, Bob Dudley, and ConocoPhillips CEO, Jim Mulva, said the LNG project seemed to be a better way to get the gas to market, casting growing doubts on the viability of the pipeline. On Tuesday, Persily acknowledged that the pipeline’s future hinges on the producers. “It is going to take concurrence of the three producers.

They are the ones that control the vast majority of the leased acreage, the production coming out of there. They are the ones that are going to have to sign 20-year firm shipping commitments on the pipeline worth more than $100 billion.” Persily said he thought the project had a 50-50 chance of being constructed by 2020. “I haven’t given up on the project. … What it would take is the companies believing the market is there at a sufficient price.”

He also noted that there are key benefits to building the pipeline instead of the LNG project. The Alaska Natural Gas Pipeline Act provides federal loan guarantees for the pipeline, and $21 billion worth of guarantees are currently authorized, he said. The law also allows for accelerated depreciation for the pipeline and an enhanced oil recovery investment tax credit for the gas treatment plant, which together are worth more than $1 billion in tax savings, he added.

“All that applies if you build a pipeline to move gas to the Lower 48. If it is an exclusively export-only line, unless federal law is changed, you don’t get those benefits,” Persily said. Meanwhile, the United States Deputy Interior Secretary David Hayes, also speaking at the Podium event, said the U.S. is working to give Shell an answer on the company’s plans to drill several exploratory wells this summer in Alaska’s Beaufort and Chukchi Seas.

Hayes, who was appointed by President Obama to chair an interagency task force on Alaska energy development, said meetings at both a secretarial and staff level are being held regularly on Shell’s plans. ”We are committed to give them a timely up or down,” Hayes said.

The Interior Department has already given conditional approval to Shell’s exploration plans for the Beaufort and Chukchi. But the company has yet to submit applications for individual permits to drill specific wells, Hayes said. Hayes also said Interior will not budge on a condition that Shell end its drilling program about 38 days short of the time the company had requested. Hayes said the time was needed for the drilling of a relief well in the event of a blowout.

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The Gas Company (TGC), Hawaii’s clean gas energy provider, is now producing renewable natural gas (RNG) for Hawaii. The Gas Company is transforming non-food-grade oils and fats into clean, reliable gas and biofuels at its renewable natural gas pilot plant in West Oahu.

The renewable natural gas plant is capable of processing up to one million gallons of feedstock per year, and it is designed to allow for expansion to accommodate increasing demand and feedstock supply availability. The facility was designed in association with Primoris Renewables, a leading innovator in renewable energy technology, and is located on the premises of TGC’s synthetic natural gas (SNG) manufacturing plant in Oahu’s Campbell Industrial Park.

The Hawaii Renewable Energy Development Venture, which is funded by the U.S. Department of Energy, awarded a $1 million grant to The Gas Company to support the RNG plant demonstration. No tax credit or further taxpayer support is required for the project. ”The production of renewable natural gas is a major milestone that will allow us to provide sustainable energy from local agricultural products that were previously discarded or shipped out of state,” said TGC’s president and CEO, Jeffrey Kissel.

The Gas Company is working with companies in Hawaii to purchase locally produced, sustainable non-food-grade oils and fats for the production of renewable natural gas. Hawaii Governor Neil Abercrombie participated in today’s dedication of the RNG plant.

“Hawaii’s clean energy industry is becoming a test bed for clean technologies because of our rich portfolio of renewable energy sources and strong partnerships,” he said. “Our state government has put in place the most aggressive clean energy policy in the nation, and The Gas Company’s renewable natural gas pilot plant is a prime example of how Hawaii is investing in itself rather than exporting its dollars elsewhere.”

Because Hawaii relies on imported petroleum for approximately 90 percent of its energy – more than twice as much as any other state – Hawaii’s state government launched the Hawaii Clean Energy Initiative in 2008, calling for 70 percent clean energy by 2030. The Gas Company is working toward producing half of its gas from renewable and sustainable sources.

The new facility transforms fats and oils in a process that uses the heat from its existing gas production facilities, surplus hydrogen, and steam to produce renewable natural gas and biofuels.

The renewable natural gas and biofuels that the RNG pilot plant produces will be incorporated into The Gas Company’s existing manufacturing and distribution operations. Renewable natural gas will displace gas produced from petroleum and will be distributed through The Gas Company’s 1,100-mile Oahu pipeline network. The cost for renewable natural gas should be the same as, or less, than gas produced from current sources without relying on taxpayer subsidy.

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Research from SRI International has identified a promising new way to produce liquid transportation fuels from coal without consuming water or generating carbon dioxide. Based on data from bench-scale tests, SRI engineers estimate that the capital cost for a full-scale plant using SRI’s process would be less than half that of a conventional coal-to-liquids plant that uses a process called Fischer-Tropsch synthesis. FTS produces only a small fraction of the hydrocarbons needed for fuel and requires extensive recycling.

SRI’s new process uses natural gas to provide the hydrogen needed to convert coal to syngas (a mixture of carbon monoxide and hydrogen). Syngas is first converted into methanol, which can then be efficiently processed to make transportation fuels.

Using natural gas eliminates the need to add water as a source of hydrogen, reduces the need to add energy to drive the gasification reaction, and results in the use of a smaller gasifier. In conventional CTL approaches, energy is supplied by burning a portion of the coal feed, which then produces carbon dioxide. SRI’s approach makes it economical to use carbon neutral electricity, such as nuclear, hydro, or solar as a source of additional energy.

“The implications of this research are expansive, including enhancing U.S. energy security through the use of domestic carbon sources,” said Robert Wilson, Ph.D., director, Chemical Science and Technology Laboratory, SRI International. “The process can also dramatically reduce the environmental footprint associated with alternative transportation fuels.”

SRI performed a series of analyses to examine the environmental impact of the technology under several scenarios. Based on these analyses, if diesel were produced using biogas as the source of methane, the resulting product would qualify as an alternative fuel under the revised Renewable Fuels Standard of the Energy Independence and Security Act of 2007. The Act requires alternative fuels to meet a standard of 50 percent reduction of greenhouse gas emissions compared to other fuels.

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The abundance of shale gas resources may spark a U.S. manufacturing renaissance with economic benefits that include cost savings, greater investments to expand U.S. manufacturing facilities and increased levels of employment, according to a new report released December 14 by PwC titled, Shale Gas: A renaissance in US manufacturing? .

To achieve these results, however, PwC says that manufacturers must help manage the environmental, regulatory and tax concerns created by shale gas resources.

PwC expects an estimated $11.6 billion in cost savings by 2025 by combining recent natural gas consumption levels with potential natural gas prices under high shale recovery scenarios. Additionally, manufacturing employment could increase by approximately one million workers by 2025 in high shale recovery scenarios.

“An underappreciated part of the shale gas story is the substantial cost benefits that could become available to manufacturers based upon estimates of future natural gas prices as more shale gas is recovered,” said Bob McCutcheon, U.S. industrial products leader, PwC .

He continued, “In fact, the number of U.S. chemicals, metals and industrial manufacturing companies that disclosed shale gas potential and its impact so far in 2011 easily surpassed that of the last three years combined, indicating this is of growing importance in the outlook of U.S. manufacturers.

The significant uptick in shale gas commentary among the manufacturing community reflects the positive influence that shale gas is having from investment, operational and demand standpoints.”

Resulting from production of a stable supply of shale gas, manufacturing industries are able to lower feedstock and energy costs, and are looking to shale gas as a source of growth for their own products. For example, companies that sell goods such as metal tubular products, drilling and power generation equipment should experience a near-term growth in sales as domestic natural gas production rates move higher.

“Manufacturers and communities throughout the country are beginning to see and recognize the real economic benefits of shale gas,” said National Association of Manufacturers President and CEO Jay Timmons. “Shale gas development is a bright spot in our economy and it has the potential to boost manufacturing employment by one million jobs, which are badly needed.”

Shale gas has already contributed to greater manufacturing investments in the U.S., particularly with chemical companies seeking cost advantages by using cheaper ethane, a natural gas liquid derived from shale gas, differentiating themselves from foreign competitors who rely more on oil-based naphtha.

Manufacturers outside the chemical industry have also announced expansion plans due to incremental energy resources, and plan on making investments in the U.S. based upon the opportunity to sell equipment for shale gas plays, according to PwC.

The relatively inexpensive and stable long-term source of natural gas is helping manufacturing companies expand and open more facilities in the U.S., presenting an opportunity to create more jobs in the industry.

“Lower natural gas prices resulting from incremental shale gas production have the potential to add over one million manufacturing jobs in the U.S. by 2025. The expectation of the new shale gas resource providing a significant long-term boost to move the U.S. manufacturing employment needle shines a light across the nation amid the current labor market woes,” added McCutcheon.

Environmental and regulatory concerns of shale gas resources include the rapid decline in production rates for shale as compared to conventional gas, which requires drilling more new wells to offset decline in existing wells. Also, there is a need to build out infrastructure in regions that haven’t already produced significant amounts of natural gas.

“The economic benefits to U.S. manufacturers can’t happen if shale gas is not extracted in a profitable and safe manner. To achieve these significant outcomes, manufacturing companies must effectively communicate the value that shale gas can create for U.S. workers and communities,” concluded McCutcheon.

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