Energy Capital The Magazine-February 2022-Edition 09

FOR INFRASTRUCTURE DEVELOPERS, INVESTORS AND INDUSTRIAL USERS FEBRUARY 2022, ISSUE 09

Power to the cities Revolutionizing the energy storage market with everlasting batteries

• Hyperlight Energy and its agreement with the U.S. Department of Energy’s National Renewable Energy Laboratory • $500 million to the DC PLUG program

State of the Industry in solar & metal roofing

Opinion

Is Your Energy Capital Project Destined to Fail?

Ask Your Project Team and Key Stakeholders… but do it anonymously, and regularly.

By Noe’ H. Saenz Energy Capital’s Editorial Board Chairman

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owadays, it is hard to imagine buying a new product or deciding on going to a new restaurant without first looking at their customer reviews. We do this to increase the chances of making a good decision. And for this, we cannot rely only on what the seller tells us. So, we ask for references, we look for recommendations or advice on what to watch out for.

The benefit of anonymous feedback is clear.

Most of us are familiar with performance reviews, which are an excellent tool for individual performance continuous improvement and career development.

But what about team performance? And as important, organizational performance. Especially, during a capital project where time is typically the scarcest resource. And where decisions need to be made knowing that, you typically only get one chance to do it right, without incurring unplanned expenses or delays.

How do we typically measure performance in a project? Based on the project management team’s reports or dashboards. Which are excellent communication tools, but they often receive biased input, to begin with. An effective way to provide an additional ‘review’ of the project is to directly ask the people involved, but not as a group in a conference room (“Hey Team, how do you think we are doing?”) because we know what the “group answer” will be.

The Reality of Energy Capital Projects As we know, energy capital projects involve a multitude of companies and organizations, which must come together to plan, finance, engineer, procure, construct, commission, and startup the new or rebuilt asset. They require substantial amounts of resources (financial, labor, materials, technology) to develop and become a reality, and when things start to go wrong, it is exceedingly difficult to bring them back on track. All it takes is one of those companies to get in trouble, either financial or technical, for the project to be directly impacted.

It is time for a new way of project performance assessment, one that gives the people involved in the project an opportunity to communicate their views on things, their concerns, and watchouts, as well as suggestions for risk mitigation and proactive improvements. And to do this, the best way would be anonymous and regular feedback.

team, there are other powerful benefits to getting people’s feedback on a regular basis. First, it makes project communications inclusive. Where everyone has the same chance to share their thoughts in writing and not just verbally during meetings, where it is typically difficult to articulate issues in front of the group or in front of a client, etc. So, people will feel included and that their thoughts are important and being considered. Second, it promotes a culture of continuous improvement because people know that Team Performance Reviews will be regularly conducted, so they will naturally want to see their ‘team scores’ improve.

The Opportunity

“Can I REALLY be open with my feedback?”

It is no secret that people are not always eager to speak out due to fear of being looked upon as pessimistic. Or fear of making their boss or their peers look bad. These are legitimate concerns, so it is important that we ask for people’s feedback considering at least the following: • Promote it as a project and team performance feedback, not focused on individuals • To be done by a third (independent) party using an outside surveying system • To be reported out appropriately, confidentially, looking at it as a team In addition to the immediate benefit that these anonymous reviews will give the project management

Facilitating people-centric communications and relations should be The Key Focus in every capital project -from beginning to end. Yet little has been developed to help guide capital project teams in these critical areas. I believe one reason for the lack of focus on this area is because most of us engineers and technical people do not see the people side of things as important. How often have we heard: “We don’t have time for that.... let’s get to work!”

So, what to do?

What I have learned over my 22+ year career in the engineering and construction industry as a project engineer, project manager, and business leader, is that successful capital projects are able to implement not only a good project plan but also a good people plan. One that guides the PM team on good people communications & relations practices, like a campaign. A People Campaign.

Noe H. Saenz is Energy Capital’s Editorial Board, Chairman.

Analysis A boost in Hyperlight Energy’s Linear Fresnel Reflector performance

Hyperlight Energy signs exclusive license agreement with NREL NREL's new receiver design method combined with Hyluxs world’s lower-cost solar steam technology comes as an innovative, economical and promising alternative, boosting solar energy’s efficiency. This will take companies and industries a step closer towards the urgent decarbonization objectives.

Analysis BY: ANA PAULA FERRER yperlight Energy announced that it had signed the agreement with the U.S. Department of Energy’s National Renewable Energy Laboratory, or NREL, for its patented receiver design technology on February the 2nd. This new receiver design will improve the performance of Hyperlight’s low-cost reflect system and increase the value of the Hylux platform for customers.

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John King, the CEO, and co-founder of Hyperlight Energy pointed out that they had been working with NREL on their in-house developed world-beating lowcost reflector system for close to a decade. “We’re thrilled to now be executing on our plan to add best-inclass performance to our offering by integrating their proprietary receiver design methodology into Hylux.”

Hylux is a concentrated solar power (CSP) technology.

A CSP is a type of solar energy that uses mirrors to

“WE’RE THRILLED TO NOW BE EXECUTING ON OUR PLAN TO ADD BEST-IN-CLASS PERFORMANCE TO OUR OFFERING BY INTEGRATING THEIR PROPRIETARY RECEIVER DESIGN METHODOLOGY INTO HYLUX.” - JOHN KING HEADSHOT, CEO, AND COFOUNDER OF HYPERLIGHT ENERGY

JOHN KING HEADSHOT CO-FOUNDER AND CEO, HYPERLIGHT ENERGY

Analysis concentrate sunlight onto the receiver containing a circulating heat transfer fluid. This fluid is the energy carrier that delivers valuable high-temperature thermal energy to end-use industrial processes.

What differentiates Hylux from other CSPs is that it uses domestically produced and recyclable plastic low-cost mirror structures. Built in its San Diego-based manufacturing plant, these structures can be installed on location and designed to fit a range of industrial settings.

According to Hyperlight’s webpage, Hylux came to be because of an accident. It appears that John King and his team were working on a bioenergy project using algae when they noticed the plastic pipes they were using heated up in the sun. They soon realized they had the lowest cost solar concentrator in their hands by aiming this unwanted light and concentrating it on a target.

NREL is a U.S. Department of Energy laboratory which, as stated in its presentation brochure,

THIS NEW RECEIVER DESIGN WILL IMPROVE THE PERFORMANCE OF HYPERLIGHT’S LOW-COST REFLECT SYSTEM AND INCREASE THE VALUE OF THE HYLUX PLATFORM FOR CUSTOMERS.

is focused on transforming today’s energy challenges into tomorrow’s solutions through research, development, commercialization, and deployment of renewable energy and energy efficiency technologies. The laboratory partners with various businesses and organizations to accelerate the transition of renewable energy and energy efficiency solutions into practical applications.

Such is the case with Hyperlight Energy, with whom NREL began a partnership many years ago to improve Hylux linear fresnel technology performance. Still, they had to do a lot of work involving research and experimentation before they got there.

Guangdong Zhu, an inventor and senior engineer at NREL, and Nicholas Kramer, co-founder of Hyperlight Energy, made an analysis in 2018. They compared the optical performance of three concentrating solar power collector designs in linear fresnel, parabolic through, and central receiver. They decided to use the linear fresnel that Hyperlight

Analysis

GUANGDONG ZHU DESCRIBED NREL'S NEW TECHNOLOGY AS A BREAKTHROUGH IN DESIGN METHODOLOGY THAT OPTIMIZES OPTICAL CAPTURE.

and NREL were developing for the analysis. The study describes linear fresnels as arrays of long, individually tracking, curved, or nearly flat mirrors that reflect incoming rays onto a receiver fixed in a position. Linear fresnel collectors enable increased concentration ratios without increasing the wind load on the collectors because of their low profile to the ground.

The analysis mentions that the primary problem that linear fresnel collectors face is the lower optical performance. This is due to the primary reflectors' increased shading and blocking losses and the intercept loss resulting from the sunbeam broadening after primary reflection.

The Hyperlight linear fresnel employed a secondary reflector with an optimized method developed

by NREL to increase optical efficiency and concentration ratio. It showed that this method could give a secondary design with the highest optical performance. They concluded that Hyperlight linear fresnel provided a significantly improved energy cost and could compete with natural gas for industrial process heat in the California market.

Four years had to pass following this study for NREL’s and Hyperlight Energy’s partnership to give fruits. Guangdong Zhu described NREL's new technology as a breakthrough in design methodology that optimizes optical capture.

“Up until now, the receiver design process started with an equation followed by a ‘guess-and-check’ approach through optical modeling of multiple iterations of the curve. However, the best way to do it is to use optical modeling from the start and let that tell you the optimal design with no guesswork involved. You end up with the same material and production cost, but with a boost in performance for free,” he explained.

Analisis A boost in Hyperlight Energy’s Linear Fresnel Reflector performance

NAPE Summit 2002 Let the dealmaking begin!

NAPE Summit 2022 brought unrivaled opportunities to learn, connect and make deals happen across the energy sector.

By Norma Martinez ringing the Energy Industry together The premier expo took place in Houston, Texas, between February 9th to 11th.

The edition joined dealmakers, decisionmakers, and information seekers. Also, finalists in the NAPE/TCU Energy Innovation Case competition presented their projects. And the Job Fair exhibited 17 companies in the energy industry.

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"We are so excited to welcome old friends and new back to NAPE Summit — the place where deals happen," emphasized Bryan E. Hennigan, CPL, chair of the NAPE Operators Committee.

Specialists at NAPE Global Business Conference In "The Future of the Power Grid" session, Max Minzner, general counsel at Arcadia, gave a perspective of the U.S. electricity markets. He emphasized the transformation of power production over the last decade by the rise of renewables, the collapse of coal, and the success of natural gas. The expert highlighted how power consumption remained flat since 2005, declined during the pandemic, started moving slowly under the Biden government and the state's support to reach 100% renewable grid targets.

Robin Fielder, EVP of low carbon strategy and chief sustainability officer at Talos Energy, during "Positioning the E&P Industry for Energy Transition Participation," offered tips to leverage engineering, geology expertise, and operational capabilities for leading the development of carbon capture and storage project opportunities.

She spoke about the U.S. Gulf Coast as it offers a significant CCS market opportunity as America's industrial epicenter and a world-class storage region.

Finally, the specialist shared Talos' new strategic partnerships and technology alliances.

Through the GBC Keynote, Chesapeake Executive Chairman and Three Rivers Operating founder and CEO Mike Wichterich and DrivePath Advisors Managing Partner Gordon Pennoyer discussed the current landscape of E&P companies. They predicted the future top performers during the interactive presentation "Picking Winners in 2022 and Beyond."

Exploring the future of ESG Jim Wicklund, managing director at Stephens Inc., moderated "Past the Talk and Into the Implementation," which included the panelist's Barbara Baumann,

president of Cross Creek Energy Corp.; David de Roode, EVP at Lockton Companies; and Jason Issac, director of Life: Powered. The panel discussed the challenges of implementing policies to ensure ESG goals become a reality. They remarked on the importance of measuring and looking the real-time data to manage the impact and operate correctly.

of Texas at Austin competed in person. The teams had five hours to prepare before presenting their solutions before a panel of judges comprised of energy industry leaders. They debated the question, "How can U.S. E&Ps leverage their energy transition strategy to reduce global energy poverty?" The winning group competed for $40,000 in prize money.

At last, the experts motivate to focus on the "S" of ESG, the social concept, through education. Today there is more public interest in sustainability, and it is the opportunity to improve education efforts.

The Job Fair and the Networking Event The summit also included a Job Fair, where seekers contacted companies looking to hire as the industry rebounds. The exhibition included upstream oil and gas companies, renewable energy producers, colleges, and other leaders in the energy industry.

A look at the oil and gas future. During "Oil & Gas Outlook," Marshall Adkins, managing director and head of energy investment banking at Raymond James, detailed the supply/ demand fundamentals that will lead to sustainably higher oil prices over the next five years.

He analyzed near-term oil price drivers such as COVID demand recovery, the need for capital on the U.S. oil supply, and OPEC capacity to produce at different prices. He closed by talking about longer-term issues such as oil demand displacement from electric vehicles, the consequences of electric grid transformation to wind and solar, and the challenges of increasing oil supply.

The Energy Innovation Case Competition In January, 18 teams of MBA students representing 12 universities competed virtually. During the summit, the four finalist teams representing Rice University, TCU, the University of North Carolina, and the University

Finally, TexasFile sponsored NAPE's renowned networking event. The session reconnected old friends, made new connections, and closed great deals.

NEW! NAPE MONTH This year's NAPE Summit marks the debut of an all-new digital platform: NAPE Month, powered by Energy Domain. NAPE Month is taking energy deals to the next level with an extended run of electronic transactions.

NAPE Summit exhibitors can list prospects for zero commission and zero associated costs until February 18th. Buyers can quickly scroll through deals and access documents and granular information related to revenue, expenses, tracts, leases, and production to make informed buying decisions. Both parties also benefit from the quickness and efficiency of the automated closing process.

Industrial consumers The battery of the future

EnerVenue, revolutionizing the energy storage market with everlasting batteries EnerVenue is facing the challenge of scaling the production of its trademark battery to face demand. To do that it has the economic support of three strategic investors.

BY: ENERGY CAPITAL he energy storage market is changing profoundly, especially as the electrification of everything takes over the industry and as renewables make a more significant part of the energy mix. For decades we have been accustomed to plugging our devices into a wall for power coming from a station miles away and through steady transmission lines.

T JORG HEINEMANN CEO, ENERVENUE

However, as renewables make up a bigger part of the mix, so does intermittency. Such intermittency obligates us to save power when it is available and cheaper — that's when energy storage comes in handy. Still, energy storage devices need to step up to storing power efficiently, safely, and in a flexible manner. For example, at scale, some of the most common energy storage devices have

been pumped hydropower. Still, this technology has proven to be difficult to deploy as it needs dams and handmade water reservoirs that require lots of permits and infrastructure development.

with not so much success. However, EnerVenue, a California-based company, has developed a unique device that will truly disrupt the energy storage market worldwide.

Consequently, batteries became the most accessible and most sought energy storage medium. Lithium-ion batteries are the most common energy storage devices for both grid and home use cases. Nevertheless, lithium-ion poses severe fire risks, not to mention that they have a profound environmental footprint as they require many rare earth metals to be manufactured.

EnerVenue has developed a durable, safe, flexible, and maintenance-free battery that is affordable and the most effective way to store energy for home and grid use cases. This device is a nickel/ hydrogen battery that can operate in a -40 to +60C ambient temperature with a 30+ year lifespan and 30K+ full cycles without degradation or usage restrictions.

As a result, for years, energy companies have sought to develop durable, safe, and costeffective batteries to solve all these problems,

Indeed, it is almost an everlasting battery that, due to its components, poses no fire or thermal hazard. It is also manufactured without any toxic materials and is easy to recycle. EnerVenue's

Industrial Consumers

OUR THREE STRATEGIC INVESTORS ARE VERY INTERESTED IN OUR TECHNOLOGY BECAUSE THEY ARE LOOKING TO CAPITALIZE ON THE ENERGY TRANSITION.” - ENERVENUE'S CEO, JORG HEINEMANN.

CEO, Jorg Heinemann, sat with us on an exclusive interview to talk about the batteries. He said about the matter: "our battery is a vessel; within that is a stack of electrodes. As we charge the battery, we build up a small amount of hydrogen within that vessel; then, as we discharge, the hydrogen gets reabsorbed into water. It's like a low-pressure hydrogen fuel cell."

The CEO remarked that the battery's technology had been around for some time in the aerospace industry. "The nickel/hydrogen batteries were designed in the 1980s and then deployed in the '90s and 2000s for aerospace applications.

Specifically for satellites, the International Space Station… They were designed at a time when satellites needed a battery that would have a crazy long lifetime and could not be maintained because sending someone to replace a battery to outer space is tremendously expensive."

"It would also have to withstand the rigors of outer space, meaning very low or very high temperatures. When renewable energy came in, many batteries came on board, and nickel/ hydrogen technology was simply ignored due to its cost. It was way too expensive," Heinemann said. Nevertheless, around four years ago, he said, Yi Cui, a Professor of Materials Science and Engineering at Stanford University and one of the world's top Material scientists, assembled

a team to conduct research on how to bring those costs down.

That team managed to reassemble the batteries for outer space with lower-cost materials without any performance shortcomings. "In fact, what we discovered in 2020 was that the battery performed better for this use case with the new materials," the CEO commented.

The result was a battery that can almost run for a lifetime, without the risks of common lithiumion. Due to its design, the battery can be recycled and repurposed very easily, delivering a "cradle to cradle product, the sustainability experts would say," the CEO said. Moreover, the company has assembled several thousands of these devices up to this point. According to the executive,

Industrial Consumers

the next challenge is to bring up production to meet demand. For that, the company recently secured $100 million from Schlumberger and Saudi Aramco's Energy Ventures and Towngas to expand its manufacturing capabilities. The investment came around a year after EnerVenue raised $12 million.

According to the executive, the company will use the funds to scale its nickel-hydrogen battery production, particularly through a Gigafactory in the U.S. and through an international distribution agreement with Schlumberger.

He commented about the matter. "After all of this, during 2022, we are doing our first megawatt-hour scale deployment. Currently, we are limited in our capacity. We have 10 MWh worth of batteries

10MWH

OF PRODUCTION CAPACITY READY FOR 2022. US GIGAFACTORY ON SIGHT FOR 2024

$100

MILLION OF INVESTMENT FROM SCHLUMBERGER, SAUDI ARAMCO AND TOWNGAS SECURED

Industrial Consumers

that we can produce in 2022. We will be deploying those with key customers at demonstration sites during this year."

They view it as critical for their energy transition to convert their existing oil and gas customers to new energies."

"The following year, we will bring online our full speed manufacturing line. In fact, we expect our first large-scale factory to be at full production, about 10 gigawatthours of production per year. That will be purely manufactured in the U.S. Some of our strategic investors will also help us to scale that capacity internationally, which will happen around 2024 and beyond."

The interesting thing is that each of those three strategic investors of EnerVenue could consume the 100% planned output of the company for the next five years.

Consequently, the scaling of production is a big element of EnerVenue's strategy for the future.

Consequently, the main challenge for the company ahead is how to scale up the production of these batteries, to put out not hundreds but millions of these devices out there in the market. The investment from Schlumberger, Saudi Aramco, and Towngas is also relevant as the three companies have been involved in oil and gas but are now transitioning themselves and helping their clients transition into new energies. Consequently, investing in EnerVenue will help them accelerate that transition.

"Our three strategic investors are very interested in our technology because they are looking to capitalize on the energy transition, and they recognized that their core business (oil and gas) is now pivoting to power. So, they have looked at our technology, and they liked our unique capabilities: flexibility, durability, safety.

As a conclusion, Jorg Heinemann said. "The energy storage market is very interesting.

As of 2018, everyone was waiting for a market to appear. Back then, everyone was asking when energy storage would become economically viable.

We are now at a point where energy storage is viable for some use cases. But with renewable energies going into the grid, the electrification of everything on the other end, and a lot of power purchases, we will need a lot of batteries that behave as our cellphones do. When we have excess power, we would want to charge our batteries quickly and discharge those fast or slow, depending on our needs. That means that our batteries would need to withstand multiple cycles and don't wear out; to last almost forever. Our batteries would need to be easy to use, install, and recycle. That's what EnerVenue will deliver, the battery that the industry will need in the near future."

IndustriaL Consumers About 26,000 electric customers will benefit

Nearly $500 million invested in the DC PLUG program Nearly $500 million have been invested in the joint application between Pepco and the District of Columbia Department of Transportation (DDOT) for DC PLUG’s Third Biennial Plan. $250 million come from the PEPCO’s portion, $187.5 million come from the District’s share and up to $62.5 million from DDOT.

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BY ANA PAULA FERRER his is the final phase of DC PLUG and will migrate the District’s most vulnerable overhead distribution lines underground in Wards 3, 4, 5, 7, and 8. Once this multiyear program has completed the construction of all 20 feeders, it will provide about 26,000 electric customers in the District with increased reliability and resiliency of the electric system against significant storms.

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electric system due to climate disasters such as 2010’s Snowmageddon or 2012’s Derecho.

According to DC PLUG’s webpage, the then D.C. Mayor Vincent Gray established the Mayor’s Power Line Undergrounding Task Force. The Task Force determined that improvements to the District of Columbia’s electric distribution system to enhance its resiliency and reduce power outages caused by storms would require new investments.

DC PLUG initiative was born in 2012 as a response to the increasing customer interruptions of the

On January 11, 2022, the DCPSC held a virtual community hearing about DC PLUG. The hearing

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Industrial Consumers began with an overview of the Third Biennial Plan by Emile Thompson, Chair of the D.C. Public Service Commission. He explained the two types of charges that will apply for Pepco’s District of Columbia customers taking electric distribution service over two years.

The first one is the Underground Project Charge (UPC); it will recover expenses incurred by Pepco to underground the selected feeders and other authorized costs and charges. There will be a total increase of approximately two cents per month from the current UPC for a typical residential standard offer service customer who uses 692 kilowatt-hours per month. This charge is part of the $250 million that PEPCO’s portion.

The second is the proposed underground rider charges incurred by DDOT imposed on Pepco. It represents a total increase of approximately 3 cents per month for the current rider for a typical residential steering offer service customer who uses 692 kilowatt-hours per month. The low-income customers served under Pepco's residential aid discount rider won’t receive any of the two charges mentioned before.

The virtual hearing continued with DDOTs Ronald Williams, who gave a bit of DC PLUG’s initiative background and showed the feeders that will take part in the Third Biennial Plan. He then passed the word to Aaron Smith from PEPCO, who explained that DDOT would primarily construct the underground facilities. PEPCO will mainly install the underground electric distribution for four overhead feeders affected by outages.

Smith presented the Integrated Communications Strategy - DC PLUG Education Plan that 28

Industrial Consumers

“The goal of DC PLUG to reduce the frequency and impact of stormrelated outages by burying overhead distribution lines is commendable and necessary.”

Sandra Mattavous-Frye, People’s Counsel for the District

mimics the First and Second Biennial Plans.

This consists of a comprehensive strategy to educate and update District customers and other stakeholders about DC PLUG. It is responsible for ensuring that the information depicts what reliability enhancements have to be made. They also intend to hold community events for each feeder, focusing on project introduction and planning, what to expect when the construction kicks off, and progress updates.

He also delved into the monthly bill impact for a typical residential customer (692 kWh per month), estimating that for 2022 the UCP charge will be $0.04 and the underground rider charge of $0.92. In 2023 the UCP charge will be $0.08 and the underground rider of $0.91.

The hearing ended with the People’s Counsel for the District, Sandra Mattavous-Frye, who said that: “the goal of DC PLUG to reduce the frequency and impact of storm-related outages, by burying overhead distribution lines is commendable and necessary.”

Mattavous-Frye stated that OPC encouraged the commission to pay particular attention to four issues. The first one was equity for the most vulnerable neighborhoods providing access to safe and reliable service, resilient to extreme weather.

The following issue was affordability; she emphasized that DC PLUG must spend its funds carefully and prudently to improve grid resiliency at the least cost to consumers. In addition, it must be a well-planned program, and the commission should closely examine the selection of overhead electric distribution feeders to ensure that data used to support 29

Industrial Consumers

50% OF THE DISTRICT OF COLUMBIA IS ALREADY SERVED BY UNDERGROUND POWER LINES

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Industrial Consumers

THIS IS THE FINAL PHASE OF DC PLUG AND WILL MIGRATE THE DISTRICT’S MOST VULNERABLE OVERHEAD DISTRIBUTION LINES UNDERGROUND IN WARDS 3, 4, 5, 7, AND 8.

the passage of feeders and energy engineering solutions is sound, current, and comprehensive.

The final issue was communication; the program should be accompanied by solid consumer outreach and education to the specific neighborhoods and communities impacted, both before and during construction.

On January 27th, the Public Service Commission of Columbia approved the Third Biennial Plan and the Financing Order Application of DC PLUG. Within ninety days of the Order, PEPCO must identify the estimated start date and projected end date for each feeder approved in the Third Biennial Plan.

It is also required to submit a report on the total expenses of the Benning Area Reliability Plan (BARP) since inception and a cost-breakdown for

each DC PLUG feeder compared to the original budget estimates. PEPCO and DDOT must also submit a compliance filing during the same period.

Within ten days of the Order, PEPCO will file all revised tariff sheets. The Order also requires PEPCO and DDOT to update their contractors’ hiring practices in its Annual Update and SemiAnnual Meetings.

Finally, the partnership has to make every practical effort to ensure the hiring of the District’s residents for newly created jobs through the Undergrounding Act. The goal is to fill 100% of all construction-related jobs with District residents and award 100% of the construction contracts to certified business enterprises (CBEs) or certified joint ventures where a CBE holds a majority interest.

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Downstream

Natural gas, economy, and environment

U.S. Natural Gas: a key option for our economy, saving the planet Davies Public Affairs, addressed at Santa Barbara, California, is a national public affairs firm that help companies tell their stories, especially during times of controversy or crisis.

They provide strategies, compelling messages, and precise tactical execution for clients. The company has a record of helping industries overcoming significant challenges, and reorienting issues that seemed to be lost. In general, Davies Public Affairs motivates individuals to speak out and act. They educate the masses in favor of a plan, redefine the issue and gain public approval. Davies Public Affairs employed this strategy with power plants, pipelines and recently, they opposed a natural gas ban in the state.

By Norma Martinez

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John Davies, Founder, and CEO

THE TRUE STORY OF NATURAL GAS IN THE UNITED STATES

Advising the public about controversial topics is not an easy task. In America, the energy story is an important theme, people get excited about so it is essential to show them what it means.

As a result, companies have signed long- term deals with South Korea, China, and India, helping to solve the global crisis.

“America has a tremendous amount of natural gas, we can supply a lot of the world with clean energy and prosperity,”

IN AMERICA, NATURAL GAS SEEMS TO HAVE A PROMISING FUTURE. PEOPLE SUPPORT IT AT INCREDIBLE LEVELS; 65 TO 75 PERCENT APPROVE OF THIS ENERGY. INDUSTRIES MUST TAKE ADVANTAGE OF THIS AND ENGAGE OR INVOLVE MORE OF THE PUBLIC. 33

Downstream

However, some people are opposed to natural gas industry. They must understand that our industry is involved with another type of energy production. Still, there is not enough land, copper, solar, wind, or other natural resources to satisfy global demand. Energy production needs to balance other energy sources with natural gas; it is a transition.

The opposition needs to know that natural gas is an energy that can help clean the environment. The natural gas decarbonization process, the careful work at wellheads and pipelines, can help these delivery systems become cleaner as they approach net-zero carbon emissions. This is how the industry can and is supporting a cleaner planet.

FUTURE OF THE

NATURAL GAS PRODUCTION In the global energy transition, natural gas is playing a vital role. There are two main trends. Countries can use natural gas or coal, or both. Some countries such as India and China are planning the construction of thousands of coal plants. These coal plants do not have the appropriate technology to produce clean energy.

IN THE LAST YEAR IN TEXAS AND AROUND THE COUNTRY, THE INDUSTRY HAS MADE SIGNIFICANT MOVEMENTS TO CLEAN THE NATURAL GAS, FOLLOWING THE BEST MEASUREMENT TOOLS. 34

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Downstream

It will be a radical change, and America will achieve economic power by exporting natural gas. The innovative technologies in the natural gas industry play a significant role in accessing, producing, delivering and enabling cleaner energy products.

Today natural gas producers already work on this cleaner option. They are decarbonizing, cleaning natural gas, and using the correct tools. They need to solve the challenge and be transparent. To convince people of this job, they must inform and show the public what they are doing.

“Telling people the results of replacing coalfired power plants in the United States for the past 20 years excites them, and they become very supportive when they hear the opportunity of exporting natural gas as a cleaner fuel,” 36

They are also collaborating with companies that are contributing to environmental improvements in the natural gas industry, like Project Canary.

The industry has a crucial role in proudly and articulately telling the natural gas story to harness and activate the public’s support.

PEOPLE IN CENTRAL AND SOUTH AMERICA ARE VERY SUPPORTIVE OF USING NATURAL GAS AS AN ENERGY, AS THEY CONSIDER IT A SOLUTION FOR CREATING A CLEANER ENVIRONMENT.

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Mercury emissions capture

ME2C Environmental gains additional supply business ME2C Environmental has secured a new supply business with their patented Sorbent Enhancement Additive (SEA®) licensee. ME2C Environmental has achieved emissions removal at a significantly lower cost and less operational impact with its leading-edge services in developing patented solutions.

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By Energy Capital

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his additional supply business with a major utility allows for continued operations on the company’s innovative approach to mercury emissions capture. Richard Mac Phearson, CEO of ME2C Environmental, stated that working directly with them as a supply customer provides the plant with additional measurable benefits and bottom-line operational improvements.

“Since partnering with this major utility as a license partner of our mercury emissions technologies, we have completed product testing to gain additional supply business,” said Mac Phearson. “This new plant location operated by this significant power producer represents the second “win” toward our efforts in monetizing the value of our patents.”

This major utility was part of the initial ones to enter into a license agreement with ME2C Environmental in 2020. In mid-2021, it was the first to extend its agreement with a new supply contract for a plant in the Midwest. Finally, on February the 1st, 2022, after certain testing was completed, it was announced that a second plant location under this utility’s fleet had become a direct product supply customer of ME2C’s patented SEA technology.

SEA®, short for Sorbent Enhancement Additive Technology, provides Total Mercury Control by offering patented, abundant, and affordable solutions based on a thorough scientific understanding of actual and probable interactions involved in mercury capture in the coal-fired flue gas.

By being injected into the boiler furnace or added to the coal in minimal amounts, SEA technology can capture more effectively both elemental 25

Industrial consumers

THESE PROCESSES PROVIDE THE BEST AVAILABLE CONTROL TECHNOLOGY (BACT) IN THE FIELD, ALLOWING ANY UTILITY TO MEET THE STRICTEST OF MERCURY COMPLIANCE REQUIREMENTS WITH REASONABLE AMOUNTS OF SORBENTS REQUIRED AT FULL OUTPUT.

and oxidized forms of mercury. These processes provide the Best Available Control Technology (BACT) in the field, allowing any utility to meet the strictest mercury compliance requirements with reasonable amounts of sorbents required at full output. According to a Sorbent Enhancement Additives for Mercury Control report by the U.S. Department of Energy, SEA technology provides some key advantages, such as the improvement of native mercury by fly ash or allowing the use of more abundantly available supplies of AC. As the company states in its commercial information, it offers three kinds of products: 26

SF (Oxidizer): The SF line of SEAs offers a solid or liquid-based reagent that quickly reacts with mercury in

”

SB Sorbents: The SB line of SEAs offers a solid, often carbon-based, material that synergistically reacts with SF products, impedes sorption of flue gas constituents, and captures mercury as soon as it is injected into the flue gas (up to 95+% Hg capture). It promotes mercury oxidation and capture as a part of the ME2C “Total Mercury Control.” Some of its benefits are enhanced mercury control at low dosage, minimal-to-no impact on balanceof-plant equipment and, it is designed to work with SF products for effective oxidation and capture of Hg.

THIS NEW PLANT LOCATION OPERATED BY THIS SIGNIFICANT POWER PRODUCER REPRESENTS THE SECOND “WIN” TOWARD OUR EFFORTS IN MONETIZING THE VALUE OF OUR PATENTS.

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Infrastructure

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A SECOND PLANT LOCATION UNDER THIS UTILITY’S FLEET HAD BECOME A DIRECT PRODUCT SUPPLY CUSTOMER OF ME2C’S PATENTED SEA TECHNOLOGY.

the boiler and flue gas to oxidize and capture it (up to 99+% Hg oxidation). The SF promotes gas-phase and catalytic mercury oxidation. It also enhances the capture of mercury on the sorbent as part of the ME2C “Total Mercury Control” Program. Some of its benefits are very low dosage rate, and its design is aimed to work with SB sorbents.

SA2: The scrubber additive SA2 is a sulfurbased reagent that quickly precipitates dissolved mercury from the absorber solution, efficiently preventing reemission (up to 99% Hg precipitation).

It also provides heavy metals remediation as part of the ME2C “Total Mercury Control” Program. Some of its benefits are low dosage rates (-1 to 4 gallons/ hour), and the application equipment is simple to operate.

ME2C Environmental, also known as OTCQB: MEEC or Midwest Energy Emissions Corp., is a Texasbased environmental firm. It provides products

and full-service solutions to the coal-fired utility industry. These solutions are completely customized to each plant's unique necessities resulting in more tailored and cost-effective services, as well as greater optimization of their systems and processes.

MacPhearson expects that, throughout the year, ME2C Environmental will grow its supply business with the utilities currently operating under a license agreement and enhance its solid customer base with additional license and supply partners.

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Wave Energy development system

Oscilla Power selected for $1.8 million grant by U.S. Department of Energy U.S. Department of Energy (DOE) has selected Seattle’s wave system developer, Oscilla Power, for a $1.8 million funding. This will accelerate the development of a utility-scale version of the company’s core Triton Technology.

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By Ana Paula Ferrer - Energy Capital

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alky Nair, Oscilla Power CEO, pointed out that the funding enables the continued development of their flagship utility-scale Triton system.

It also provides a clear pathway and process for commercial testing and deployment at a full-scale in a realworld operating environment.

Oscilla Power’s Triton Wave Energy Converter is a highly efficient multimode point absorber. It consists of a geometrically optimized surface float connected to a ring-shaped, vertically asymmetric heave plate by three taut, flexible tendons. This unique three-tendon architecture is Triton’s key differentiator providing the ability to capture energy from the ocean in all six degrees of freedom (have, pitch, surge, roll, and yaw). By doing this, Triton enables increased

THEORETICAL WAVE ENERGY POTENTIAL ON THE WORLD’S SHORELINES IS ABOUT 32,000 TERRAWATT HOURS, THAT IS MORE THAN THE WORLD’S TOTAL ELECTRICITY CONSUMPTION.

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energy capture across a broader range of ocean conditions, greater average annual energy production and a substantially lower levelized cost of electricity.

Triton uses three independent hydrostatic, hydraulic drivetrains to provide a highly reliable, flexible, and high-efficiency conversion of mechanical energy to electricity. Oscilla Power has developed the hydraulic drivetrain focusing on engineering it to effectively manage the highly variable power flows and dissipate peak energy as needed.

Oscilla’s wave energy converter uses flexible tendons to connect the float to the submerged reaction ring, allowing the system to be installed quickly by readily available marine vessels more simply and cheaply.

This process is what Oscilla Power refers to as “low cost, tow and drop installation.”

The webpage also describes how the Triton has been engineered to withstand the most extreme storm conditions. The system employs a validated approach to automatically submerge just below the surface when experiencing extreme waves.

As part of the funding DOE will grant access to Oscilla Power to PacWave, a first-of-its-kind, grid-connected, full-scale test facility for wave energy conversion technologies off the coast of Oregon. According to DOE’s web page, PacWave can simultaneously accommodate up to twenty wave energy converters in four separate berths. The objective of PacWave is to test devices more quickly and 27

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$200,000

IN COST-SHARING WILL BE ADDED TO THE SUM

BY OSCILLA POWER AND ITS PARTNERS

cost-effectively to demonstrate iterative design improvements and allow technology developers to rapidly improve performance, drive down costs, and attract investment and financing for future projects.

DOE awards aim to strengthen innovative marine energy projects like Oscilla Power to reach President Biden’s goal of net-zero carbon emissions by 2050.

U.S. Secretary of Energy Jennifer Granholm recognized that “harnessing the unrelenting power of the ocean is a clean, innovative, and sustainable way to curtail carbon pollution…diversifying and expanding our clean energy sources will usher in a new era of energy independence that makes the grid more resilient, curbs the climate crisis, and saves American’s money on their energy bills.”

Founded in 2009 in Seattle, Oscilla Power is a privately held company that develops novel wave energy systems such as their architectural multi-mode Triton and Triton-C. The company is focused on producing power at a lower levelized cost than traditional wave energy systems, which are cost-competitive with incumbent systems.

Oscilla Power stated that theoretical wave energy potential on the world’s shorelines is about 32,000 TerraWatt hours; that is more than the world’s total electricity consumption. Tim Mundon, VP of Engineering of Oscilla Power, explains that waves energy is an essential part

of the mix because it complements solar and wind energies. He also pointed out that by mixing these three renewables together, we can significantly increase the number of renewables that we can put onto the grid.

Some of the advantages of waves energy are mentioned in Oscilla Power’s webpage, like how ocean waves represent our planet’s last untapped large-scale renewable energy source.

They have greater predictability than other renewable energies since they are generated by wind and originate a long way from shore; computer models of wave propagation allow us to forecast incoming waves accurately. It also has a low environmental impact and seems to match daily and seasonal electricity demand. Oscilla Power’s team will work together with its partners, including Glosten Associates, Spencer Fluid Power, Applied Motion Systems, Applied Control Engineering, and DNV, to complete the Triton design for PacWave.

Subsequently, they will build and get the Triton system in the water.

32,000

TERRA-WATT HOURS IS THE THEORETICAL WAVE ENERGY POTENTIAL ON THE WORLD’S SHORELINES

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Power A boost in Hyperlight Energy’s Linear Fresnel Reflector performance

State of the Industry: Solar PV & Metal Roofing.

Rob Haddock, Founder and CEO of S-5!

Like all sectors of the economy, our industry has seen raw material price increases and supply chain backlogs like never before―mostly due to the fallout from the pandemic. Steel companies had shut down production and inventories became decimated. That’s raw material at its source.

Other mills beyond steel, like aluminum, stainless, lumber and consumer goods had shutdowns as well (both domestic and foreign).

What is your forecast for the upcoming years in terms of renewables and especially solar PV now that new legislations are coming? f the solar provisions are preserved and the final Build Back Better Act becomes law, it will trigger an avalanche of solar development in every state across the country. And the amount of solar deployed in the U.S. could triple to 300 GW in the next five years. The use of renewables and solar PV was already on the rise, despite the pandemic. The interest in solar continues to increase primarily because it makes good financial sense, with the cost of solar significantly decreasing over the last decade improving return-oninvestment and internal rate of return (IRR) metrics.

It is a perfect example of environmental capitalism!

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Why is the metal roof the ideal host for mounting photovoltaic (PV)?

The short story is: Because it’s the only roof type

Power guaranteed to outlast the life of the solar. Metal roofing provides an ideal platform for mounting rooftop solar because it is the only roof type with a service life exceeding that of the solar (in the range of 50-70 years). The service life of a solar PV system averages 32.5 years and climbs each year. Alternative roofing types will expire long before the life of the PV system, leading to costly disassembly of the PV array, re-roofing and re-assembly.

This expense erodes the otherwise attractive financial metrics of roof-mounted PV. Metal is also the most sustainable roofing type and in combination with S-5! attachments lowers solar installation costs.

In conclusion, the “standing seam” metal roof is the only roof type really worthy of consideration for solar PV. Standing seam roofs also enable solar mounting completely free of roof penetrations, preserving all roof warranties.

We know that you have co-invented with your son a rail-less direct-attach solar solution; what are the advantages of rail-less mounting?

Advantages of rail-less mounting: 1. Greater flexibility in module placement 2. Simplified, lower-cost logistics/material handling 3. Lightweight solution (3 lbs. (1.4kg)/kW—85% less weight and 90% less volume than railed systems) 4. Reduced material cost 5. Less freight cost —up to 50% lower due to less weight and volume.

6. Reduced labor cost 7. Reduced dead load to the roof 8. 25% better load distribution to the roof 9. Faster on-and-off the job 10. Strength to resist any wind speed (low profile reduces wind effects) 11. Aesthetically pleasing due to low-profile solution Rail-mounting components for a 250 kW system, weighing in at 5,000# would require a big-rig truck.

The same size system in rail-less components, fits in the trunk of a car (750 lbs). You can carry all you

need for an 8 kW residential system up the ladder in your backpack— tools included. When it comes to container shipping, inventory costs and storage on or off the jobsite—the savings are multiplied Can you tell us about the ease and cost of installation going “rail-less”?

Again, far fewer components are involved―fewer parts to assemble translates to faster installation.

The S-5! PVKIT® rail-less, direct-attach™ solution significantly reduces freight, handling and labor costs.

The key to labor savings is simplicity: requiring 65-75% fewer components, they are positioned, and modules installed “on-the-fly.” We have numerous time-study efficiencies (on real jobs) down to 72 seconds per module―all in. Installers report a net labor savings of 30 to 50% compared to rail.

Finally, shipping long lengths of rail to project sites and transporting them up to a rooftop is costly and often a logistical nightmare. With the PVKIT, shipping costs for the mounting system are 70% lower than

Rob Haddock

Founder and CEO of S-5!

Is a former contractor, award-winning roof-forensics expert, author, lecturer and building envelope scientist who has worked in various aspects of metal roofing for five decades. He began groundbreaking innovation of penetration-free ancillary attachment solutions in 1991 and holds 60+ U.S. and foreign patents. Together with his son, Dustin, they co-invented, a rail-less direct-attach solar solution that provides a simple, secure method to “lay & play” PV modules with tested, engineered, cost-saving, attachment to the only roof type that outlasts the solar—the metal roof.

Power railed mounting systems, with fewer logistical hassles transporting the product to distribution, then the site, and then within the site and onto the roof.

A traditional rail system of 750 kW would normally require two or more big-rig trucks to transport (15,000#). At 2,250#, the PVKIT fits in a short-bed pickup truck with plenty of room to spare. There are other considerations when it comes to roof attachments and roof types in general, and these comments should not be taken too broadly. I am speaking with reference to our own products and metal roofs specifically. I cannot speak to other roof types or other “rail-less” vendors with respect to these economies. And there are always cases where rail may be the better choice.

When you decide to install solar, what are the improvements in terms of the lifetime return on investment (ROI) from metal roofing?

Good question. There is not a single “correct” answer for your question because it depends on the roof type. According to a recent Berkeley study, solar has an average life of 32.4 years—again depending on the quality of the solar components. That number improves each year. And of course, it is an average.

Some systems in that study are at 35 years. One

module producer is now offering a 40-year warranty.

Metal has a life of 40 to 100 years―or more— depending upon the type of metal used. This is NOT dependent upon the climate at the project site as with most other roof types. The fact that metal outlasts the solar is hardly disputable, but when making this kind of comparison with other roof types, there are multiple factors involved. A commercial TPO singleply roof has an expected life of 15 years. That’s less than half the life of the solar— and that’s if the roof is new. If the roof’s service life is 15 years, the answer is easily 100%+ improvement to the ROI for metal.

The solar and roof together must be looked upon as a single asset with roof replacement included when it is eminent.

In my decades-long career of rooftop solar, roof replacement is rarely, if EVER considered in the ROI analysis presented to the buyer. Inverter replacement is factored in at 10 to 15 years, but not the roof itself. In cases of non-metal roofs, roof replacement is inevitable. It is not a question of “if” but “when”.

To ignore that factor is a very costly oversight because roof replacement will shatter the theoretical ROI of the new solar roof. For aged, retrofitted roofs it can be far worse. If the same TPO roof considered in my example is already 5-years- old—well, now it has a remaining life of less than a third of the solar, and the ROI improvement for metal is more like 200%.

Asphalt shingle is 10 to 20+ years, depending upon its quality (which also affects its price) and is dependent on the climate of the project site. Asphalt dries out and embrittles over time and exposure, so in hail-prone areas, its expected life is shorter. In wet climates, algae growth may also shorten service life.

Metal is not affected by these factors. Concrete tile may have a service life of 15 or 20 years―or even more depending upon the quality of the tile. But tile is also heavy and expensive to mount to properly. It is also prone to hail damage.

Each project must be considered individually, but because metal is the only roof material that outlives

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solar―it is a foregone conclusion that it is the best host roof. And the initial cost difference between the best roof and something less is minimal compared to the value of solar on a roof of any type when the two are considered a single asset as they should be. With all that said, metal roofs should also be assessed for remaining service life. We have seen solar installed on some 50-plus-year-old metal roofs that are close to end-of-life. That is also short-sighted.

How eco-friendly and sustainable are the products from S-5! ?

By installing solar on metal roofs with lower transport, equipment and labor costs, the PVKIT is proving to be a “green” innovation in the solar and roofing industries both. Production of this system saves an estimated 90% of the energy used to produce rail mountings and saves 85% of carbon emissions in transportation.

Recyclable coated steel roofs have a demonstrated service life of 60+ years—three times that of any other commercial roof type. And they are highly recycled, so they are not contributing to landfills.

We manufacture the PVKIT in the U.S.A., made entirely of 300 series 18-8 stainless steel and 6061 T6 certified structural aluminum. Stainless riser components are turned by CNC lathe. The aluminum clamps or brackets are extruded and CNC-machined. All fasteners are stainless steel. The award-winning S-5! manufacturing facility in Iowa Park, Texas utilizes stateof-the-art equipment and automation. It is certified to ISO 9001:2015 quality assurance standards. Every aspect of the supply chain is tracked, including lot traceability and Certificates of Conformance (CoC).

All raw material is certified to ASTM standards and regularly audited by UL, FM, ICC, TÜV, and SAI Global to ensure proper QA plant procedures. Unlike most others who outsource manufacturing/procurement, the S-5! plant is solely designed, customized and

dedicated to manufacturing certified mounting solutions.

We manufacture the PVKIT from highly recyclable material using energy-efficient processes, resulting in a demonstrably smaller carbon footprint. Aluminum and stainless are two of the most recycled materials on earth. Their scrap value is sufficiently high to ensure their destination is not a landfill. We recycle all scrap from manufacturing. Roof-mounted solar PV powers 36% of the S-5! factory, producing 400,000 kWh annually with plans to double solar production to 70% of consumption by 2024.

Would you like to add any final thoughts?

Solar is a big investment. Most solar designers and EPCs have little knowledge about roofing.

Roofing is a minimal cost when compared to solar, yet it determines the integrity of the two assets as a whole. One depends upon the other. No roofing will last forever, yet that is often the short-sighted assumption made. This is tragic and will drastically affect the entire financial equity equation with very disappointing results.

The assumptions made in the evaluation of the hardware that marries one to the other is equally flawed in terms of life-cycle performance, warranties, testing and engineering, evidence of certifications and so forth. For heaven’s sake, this hardware investment which is only about 2-3% of the finished cost is responsible to hold the whole system onto the roof for 30-plus years! Think of it as you would an engine in a race car. The roof is the chassis of the car—its importance is huge and its cost relatively insignificant by comparison; the solar is the engine—the star performer. Think of the mounting hardware as the motor mounts holding one to the other: Now, would you put a Ferrari engine on a Ford Escort chassis and bolt it down with 2- 3/8” bolts made God-knowswhere or how? Think about it.