Embed Size (px)
Citation preview
TTS148-1Caterpillar Confidential: Green
Craig Anderson Director, Environmental Affairs
Solar Turbines
AB 32-Cap and Trade Compliance &Solar Turbines Product Test FacilitiesMarch 2012
TTS148-2Caterpillar Confidential: Green
Business SummaryBusiness Summary
• Wholly Owned Caterpillar Subsidiary
• Customers In 98 Countries
– 13,700 Units Installed
• $3.3B Revenue in 2010
• Leading California Exporter
– 75% of Revenue International
• Leading Supplier of Mid-range Gas Turbine Power Systems
2
TTS148-3Caterpillar Confidential: Green
Turbomachinery Product LinesTurbomachinery Product Lines
Mars 90 & 100
Titan 130
Titan 250
Taurus 70
Taurus 65
Taurus 60
Mercury 50
Centaur 40 & 50
Saturn 20
Generator SetsCompressor
Sets
Mechanical
Drives
TTS148-4Caterpillar Confidential: Green
Business Summary Business Summary
• 83 Years in California
• Products Designed, Manufactured
and Tested in San Diego
• 4,000 Employed in San Diego
– Harbor Drive
– Kearny Mesa
4
TTS148-5Caterpillar Confidential: Green
Cap and Trade ApplicabilityCap and Trade Applicability
0.025% of Cap in 20130.01% of Cap in 2015
TTS148-6Caterpillar Confidential: Green
Solar’s Kearny Mesa Facility
Solar’s Kearny Mesa Facility
•100% of all new product is assembled and tested and shipped from KM•95% is shipped outside of Calif•70% is shipped outside US
TTS148-7Caterpillar Confidential: Green
Kearny Mesa GHG Emissions and Energy Usage
Kearny Mesa GHG Emissions and Energy Usage
Kearny Mesa GHG 2010 2009 2008 2007
Source Mtons Mtons Mtons Mtons
Stationary Combustion 31,048.00 31,924.71 38,942.72 27,648.84
Electricity Usage (indirect) 7,522.98 6,705.98 7,241.16 7,889.04
Natural Gas Use (1000 lbs) 22,116 22,766 27,050 17,812
Diesel Use (1000 lbs) 2,143 2,320 3,474 2,967
TTS148-8Caterpillar Confidential: Green
Kearny Mesa 2009 GHG EmissionsKearny Mesa 2009 GHG Emissions
20%
30%
40%
Annual Variation
TTS148-9Caterpillar Confidential: Green
The Big IssuesThe Big Issues
TTS148-10Caterpillar Confidential: Green
BenchmarkBenchmark
TTS148-11Caterpillar Confidential: Green
Leakage Risk = Business RiskLeakage Risk = Business Risk
TTS148-12Caterpillar Confidential: Green
“Compliance Instruments”“Compliance Instruments”
• Reduce GHG Emissions = Reduce Testing
• Purchase Emission Offsets
• Participate in Allowance Auctions and/or
Private Contracts
• All of the Above
TTS148-13Caterpillar Confidential: Green
0
10
20
30
40
50
60
201
7
201
8
201
9
202
0
Free Allowances (1000,s Mtons)KM GHG Emissions
GHG Allowance Compliance Scenario100% Allowances
GHG Allowance Compliance Scenario100% Allowances
2018-2020Deficit= 97,000
Mtons
100% Through Purchase of Allowances• Cost: $10-55/Allowance•Total Cost: $300K - $1.55M/year•Risk:
Will there be allowances available?
TTS148-14Caterpillar Confidential: Green
0
10
20
30
40
50
60
201
7
201
8
201
9
202
0
Free Allowances (1000,s Mtons)KM GHG Emissions
GHG Allowance Compliance ScenarioAllowances and Offset Credits
GHG Allowance Compliance ScenarioAllowances and Offset Credits
2018-2020Deficit= 97,000
Mtons
92% Through Purchase of Allowances• Cost: $10-55/Allowance•Total Cost: $280K - $1.3M/year•Risk:
Will there be allowances available?
8% Through Offset Projects•Cost: Unknown•Risk:
Will offset projects remain Viable (Permanent)
TTS148-15Caterpillar Confidential: Green
?
