American Gas - May 2013 - (Page 8)

ISSUES Supersize Me D IG E S T Chicago-area utilities Peoples Gas and North Shore Gas are advocating legislation that would set rates according to a formula and provide a reliable source of funding for infrastructure improvements. Under the current 11-month-long rate-setting process, the utilities say modernization could take twice as long and cost ratepayers $244 million more than under their funding plan. AARP and the state’s Citizens Utility Board are opposing the bill, which is similar to one passed in 2011 to pay for electric grid modernization. Coal-eating microbes are being used to produce natural gas from coal. Companies including Ciris Energy, Luca Technologies, and Next Fuel Inc. have demonstrated ways to prod microorganisms to consume coal and excrete natural gas. For example, DNA sequencing can identify organisms present in a coal bed and tailor nutrients to encourage growth. The technique holds promise for the vast coal reserves, especially in the U.S., China, and Russia, that are too expensive to mine. Four natural gas companies earned spots on the Ethisphere Institute’s 2013 World’s Most Ethical Companies list: Encana Corp., NiSource Inc., Sempra Energy, and Spectra Energy. The international think tank chose 145 companies Continued on page 9 8 AMERICAN GAS MAY 2013 The continent’s largest fuel-cell project will be powered by gas D ominion, among the country’s biggest energy producers and transporters, is building a fuel-cell power plant in what it says is the largest such project in North America. The Bridgeport, Conn., facility will generate 14.9 MW of electricity, enough to power about 15,000 homes. FuelCell Energy Inc. will construct and operate the plant, which is expected to begin service late this year. Dominion will sell the output to Connecticut Light & Power under a 15-year agreement. Fuel cells convert a fuel’s energy into electricity using a chemical process rather than combustion. Typically that process involves the combining of hydrogen and oxygen. At the Bridgeport facility, the hydrogen will be derived from natural gas. “We chose natural gas in this instance because it’s cost-effective,” James Eck, Dominion’s vice president of generation business development, told American Gas. “The volume of natural gas needed for this facility can be amply supplied through the existing infrastructure.” Southern Connecticut Gas will supply gas to the plant. FuelCell Energy will deploy five stationary fuel-cell systems, each about the size of a tennis court. The implementation will include a turbine to convert waste heat to energy. Dominion plans to use the plant for baseload power generation. “The fuel cells will run at capacity factors of 90 percent, meaning they’ll run 90 percent of the time,” Eck explained. “So they can deliver power when needed.” The Bridgeport facility is part of Connecticut’s Project 150, a state-sponsored program to drive 150 MW of renewable- and clean-energy projects. Fuel cells characteristically result in very low emissions. “This facility will increase Dominion’s fuel diversity and expand our cleanenergy portfolio,” Eck said. Dominion isn’t the only U.S. organization betting on large-scale fuel cells. Delaware utility Dominion’s Bridgeport, Conn., power plant will use FuelCell Energy fuel cells like those shown here. Delmarva Power has announced plans for 30 MW of fuel-cell power to be implemented by Bloom Energy. And companies like AT&T and eBay are deploying or have already deployed large onsite fuel-cell systems, though not all of them rely on natural gas. “We believe fuel-cell technology is poised for significant growth in the United States,” Eck said. “We’re actively exploring additional fuel-cell projects. For example, we’re seeing interest among customers such as military bases, universities, hospitals, and data centers that might want to have a portion of stand-alone power isolated from the grid. Costs are coming down, and with the abundant supply of natural gas, we think the timing is right to explore this technology.” —Eric Schoeniger ISSUES Liquid Gold, Low Cost Gas-to-liquid processes have been capitalintensive, but new approaches promise to be more cost-efficient A merica’s abundance of natural gas has raised interest in processes that convert it to liquid fuels such as gasoline, diesel, and kerosene. Gas to liquids, or GTL, could provide a way to use natural gas that can’t be transported

Table of Contents for the Digital Edition of American Gas - May 2013

American Gas - May 2013
Contents
President’s Message
Subject Index
Sandy Coins Say Thanks
Digest
Issues
Update
Need to Know
By the Numbers
Places
Need to Know
Taking a Bite out of Food Truck Pollution
Canada
Capitol Hill
State House
City Hal
Safety: Getting Employees Invested
The Rails
Profile
AGA Ops Conference Preview
Procurement
Jobs
Buyer’s Guide
Marketplace
Headway

American Gas - May 2013