Saturday, October 24, 2009

Congress Fails In Understanding Basic Energy 101

The below graphic is extremely informative on the sources of greenhouse gases and the critical importance of developing renewable energy projects within the industrial sector for industrial/manufacturing processes such as product drying.

As the graph's data show, greenhouse gas emissions from industrial processes (16.8%) are greater than from transportation fuels (14.0%) and pretty close to emissions from power plants (21.3%).  While the U.S. Congress has provided incentives for electricity generation (i.e., the Section 45 Production Tax Credit, potential nationwide Renewable Energy Portfolio Standard) and for ethanol -- no incentives exist for applications limited only to industrial processes.

For example, if  biomass gasification was used at an industrial plant to generate electricity, a federal tax credit is available (Section 45).  However, if biomass gasification was used at the same industrial plant just for the industrial processes of product drying, no incentive is available.

Another way of stating this is that the MMBtu's from biomass energy to displace fossil fuel use for electricity generation is viewed by Congress as important (providing tax incentives).

However, the MMBtu's from biomass energy to displace fossil fuel use for industrial processes is not important.

This just appears that Congress just doesn't understand basic Energy 101 -- What do you think?

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