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Onsite wind energy can drastically cut a manufacturing facility’s CO2 emissions

By Michelle Froese | June 26, 2019

New analysis shows that 30% of U.S. counties offer suitable conditions for onsite wind projects, built near manufacturing facilities.

One Energy, an industrial power company, has released a detailed analysis on the total addressable market (TAM) in the continental U.S. for onsite wind energy at commercial and industrial (C&I) facilities. The analysis shows that even with the investment tax credit (ITC) dropping to zero next year, nearly 30% of all U.S. counties have manufacturing facilities that can benefit from onsite wind power.

“Almost a third of the U.S. has high concentrations of wind and manufacturing, making these areas ideal for onsite wind energy projects. This presents a tremendous opportunity for companies to reduce their energy costs and their carbon footprint,” said Jereme Kent, CEO of One Energy.

Onsite generation wind projects were not possible for C&I consumers until very recently. Changes in state and federal interconnection laws, as well as technological and commercial advances, have now made such wind projects financially attractive.

In response, One Energy launched its Wind for Industry program, where customers sign a 20-year agreement that allows them to buy energy produced at a fixed rate that is lower than retail electricity rates.

“Our total addressable market report for onsite wind energy was developed as an internal planning document; however, given that there is no comparable market information available, we decided it was worth sharing with the public,” said Kent.

For this study, the wind resource was analyzed county by county across the U.S. and translated into a capacity factor (CF). The CF was then paired with current known Wind for Industry threeturbine project costs to determine an estimated 20-year PPA rate. The PPA-rate determination was performed using three different ITC rates: 18%, 12%, and 0%.

For this study, the wind resource was analyzed county by county across the U.S. and translated into a capacity factor (CF). The CF was then paired with current-known three-turbine project costs to determine an estimated 20-year PPA rate. The PPA-rate determination was performed using three different ITC rates: 18%, 12%, and 0%. Download the report here.

“Low, fixed cost energy for the next twenty years is a very appealing proposition for energy-intensive enterprises,” he added. “Our Wind for Industry program is generating tremendous manufacturing interest.”

In a typical three-turbine project, where three 1.5-MW turbines are installed on their property, a single manufacturer can reduce their CO2 emissions by 168,000 metric tons (MT) over a 20-year period, which is equivalent to reducing 183 million pounds of burned coal.

One Energy has now installed more than 30 MW of onsite wind energy at 11 large C&I facilities in Ohio — cutting CO2 emissions by 1.1 million MT, and is rapidly expanding into other states throughout the Midwest.


Filed Under: Community wind, News
Tagged With: oneenergy
 

About The Author

Michelle Froese

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