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Released July 26, 2013 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--NAES Corporation (Issaquah, Washington) is chasing business opportunities in hydroelectric generation from one end of the U.S. to the other. NAES was one of more than 300 exhibitors at the HydroVison International 2013 this week in Denver. John Stender, NAES' director of hydropower construction and maintenance, discussed hydro business opportunities in an interview on the HydroVision exhibit floor.
"Different parts of the U.S. have different opportunities in hydropower," he said. In Alaska, NAES is constructing an 12.5-megawatt (MW) hydroelectric plant at Terror Lake Dam for the Kodiak Lake Electric Association. Construction is expected to be completed by the end of this year. NAES has also been awarded a contract to install three 5.3-MW units at the Blue Lake Hydroelectric Project in Sitka, Alaska.
"In Alaska, there is a lot of interest in hydro, because the resource is abundant and communities are trying to shed the dependence on diesel electric generation," Stender told Industrial Info.
NAES also provides hydroelectric maintenance services to a number of asset owners in the Western U.S. under long-term service agreements, he added.
"Across the country, there's a real movement to add generators to existing dams," Stender continued, noting that only about 3% of the nation's dams have hydroelectric generators. "People want to build hydro, but there are problems with money and licensing."
The NAES executive said the hydro funding and licensing picture would improve if the U.S. Senate passes two bills that have already passed the U.S. House of Representatives. One of those bills is H.R. 5892, the "Hydropower Regulatory Efficiency Act of 2012," while the other is H.R. 678, the "Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act." Both bills are supported by the National Hydropower Association (NHA) (Washington, D.C.) because they streamline the hydropower licensing process and authorize small conduit power projects of 5 MW or less on infrastructure owned or operated by the U.S. Bureau of Reclamation (Washington, D.C.), a branch of the Department of Interior (DOI) (Washington, D.C.). One of those bills would designate hydropower as a renewable energy resource, triggering eligibility for federal funding.
Adding hydro generators to existing dams would cost between $2 million and $3 million per MW of installed capacity, Stender estimated.
Across the country, in its Pennsylvania office, NAES is trying to broaden its existing business in the Power Industry. In that region, NAES is well-known for its maintenance and refurbishment of steam generators. Mark Minniti, director of business development in NAES' Cranberry Township office, is trying to expand its business in that region to include refurbishing and maintaining hydroelectric generators, as well as installing hydro generators.
Today, hydroelectric generation faces some competitive pressures from low-priced natural gas, Stender acknowledged: "You can build a gas-fired generator quickly, and at recent prices that's a no-brainer if you need more capacity fast. But gas prices are volatile, and there's nothing that says they can't shoot up again. Hydropower is more of a 50-year value proposition. Over that period we know exactly what hydro's fuel costs will be--zero."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
"Different parts of the U.S. have different opportunities in hydropower," he said. In Alaska, NAES is constructing an 12.5-megawatt (MW) hydroelectric plant at Terror Lake Dam for the Kodiak Lake Electric Association. Construction is expected to be completed by the end of this year. NAES has also been awarded a contract to install three 5.3-MW units at the Blue Lake Hydroelectric Project in Sitka, Alaska.
"In Alaska, there is a lot of interest in hydro, because the resource is abundant and communities are trying to shed the dependence on diesel electric generation," Stender told Industrial Info.
NAES also provides hydroelectric maintenance services to a number of asset owners in the Western U.S. under long-term service agreements, he added.
"Across the country, there's a real movement to add generators to existing dams," Stender continued, noting that only about 3% of the nation's dams have hydroelectric generators. "People want to build hydro, but there are problems with money and licensing."
The NAES executive said the hydro funding and licensing picture would improve if the U.S. Senate passes two bills that have already passed the U.S. House of Representatives. One of those bills is H.R. 5892, the "Hydropower Regulatory Efficiency Act of 2012," while the other is H.R. 678, the "Bureau of Reclamation Small Conduit Hydropower Development and Rural Jobs Act." Both bills are supported by the National Hydropower Association (NHA) (Washington, D.C.) because they streamline the hydropower licensing process and authorize small conduit power projects of 5 MW or less on infrastructure owned or operated by the U.S. Bureau of Reclamation (Washington, D.C.), a branch of the Department of Interior (DOI) (Washington, D.C.). One of those bills would designate hydropower as a renewable energy resource, triggering eligibility for federal funding.
Adding hydro generators to existing dams would cost between $2 million and $3 million per MW of installed capacity, Stender estimated.
Across the country, in its Pennsylvania office, NAES is trying to broaden its existing business in the Power Industry. In that region, NAES is well-known for its maintenance and refurbishment of steam generators. Mark Minniti, director of business development in NAES' Cranberry Township office, is trying to expand its business in that region to include refurbishing and maintaining hydroelectric generators, as well as installing hydro generators.
Today, hydroelectric generation faces some competitive pressures from low-priced natural gas, Stender acknowledged: "You can build a gas-fired generator quickly, and at recent prices that's a no-brainer if you need more capacity fast. But gas prices are volatile, and there's nothing that says they can't shoot up again. Hydropower is more of a 50-year value proposition. Over that period we know exactly what hydro's fuel costs will be--zero."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
