Energy and South Carolina

Trish Jerman

September 2008

S.C. Energy Office Mission

To increase energy efficiency and diversity,enhance environmental quality and save

energy dollars for South Carolina.

Programs

• Transportation Alternatives• Renewable Energy • Energy Efficiency• Energy Education and Outreach• Radioactive Waste Disposal• Energy Planning and Forecasting

South Carolina energy overview• No conventional energy resources -- no

coal, no oil, no natural gas and no uranium.

• Highly dependent on coal and nuclear power for electricity, and oil for transportation fuel.

S.C. energy statistics

• Spend nearly $20 billion on energy annually

•Rank 15th nationally in total energy consumption per capita

S.C. total energy consumption

1,000

1,500

2,000

2,500

3,000

19901995

20002005

20102015

20202025

Tri

llio

n B

TU

S.C. total energy consumption by fuel type

Nuclear8%

Coal23%

Renewables5%

Petroleum40%

Natural Gas24%

Coal26%Renewables

5%

Petroleum 29%

Natural Gas10%

Nuclear 28%

South Carolina

United States

Industrial 36%

Residential14%

Transportation41% Commercial

9%

S.C. total end-use energy consumption by sector

Industrial 20%

Residential24%

Commercial18%

Transportation38%

South Carolina

United States

Electricity in South Carolina

South Carolina:• Spent $5.5 billion on electricity in 2007. • Is 5th in nation in electricity consumption per capita. • Is 10th highest in the U.S. in average residential

electricity bill.• Averaged just under eight cents per kWh in 2007

across all sectors, 16th lowest in the country.

Hydro7%

Nuclear13%

Coal54%

Renewable2%

Gas21%

Petroleum3%

Hydro2%

Renewable2%Gas

2.2%

Coal40%Nuclear

51%

Petroleum0.4%

United States

South Carolina

Electricity generation by fuel source

Natural Gas

• According to EIA, more than ¼ of S.C. households use natural gas as primary home heating source

• Cleanest burning of the fossil fuels

Pollutant Natural Gas Oil Coal

CO2 117,000 164,000 208,000

CO 40 33 208

NOx 92 448 457

SOx 1 1,122 2,591

Particulates 7 84 2,744

Mercury 0.000 0.007 0.016

Source: EIA

Emissions – Pounds per billion Btu of energy input

Recent Growth in Natural Gas Production in the Lower 48 States Breaks with Historical Trends

Natural gas reserves growing• Total U.S. proven natural gas reserves have

grown about 10% over the last 10 years

Onshore production increasing• Nearly 65% increase in production from

“unconventional” sources. • Gas shale production has increased more

than 200% from 1998-2007.• Actual “unconventional” production regularly

beats EIA yearly outlook estimates.

Abundant onshore supply

This map shows 23 prominent gas shales in North America.

Current shale estimates

• In 2007, a natural gas assessment stated that U.S. shales contain roughly 1,680 trillion cubic feet (Tcf) of natural gas.

• That represents an 88-year supply assuming 2007 production levels.

Natural Gas – Transport

• S.C. served by two large pipelines• Southern Natural Gas• Transcontinental Natural Gas (TRANSCO)

TRANSCO

Southern

Southeastern Natural Gas Pipelines

Liquified Natural Gas

• Why? • Reduces volume by more than 600 times (600

tankers instead of 1 LNG tanker)

• Where? • Generally from areas with large discoveries:

Algeria, Indonesia, Malaysia, Nigeria, Qatar, and Trinidad

• Shipped to Elba Island near Savannah

Liquified Natural Gas

• Elba Island serves Eastern U.S., esp. Southeast

• First LNG facility in U.S. to accommodate two tankers

*in-service in mid-2010

*approximately 190 miles of 42-inch and 36-inch diameter, natural gas pipeline.

*compressor station will be constructed later, to increase capacity in 2012

Renewable energy options in S.C.• Biomass-to-Energy• Wood wastes• Switchgrass• Landfill gas• Animal and human waste

• Wind• Offshore• Small-scale, land-based

• Solar• Small-scale hydro• Hydrogen

Currently, landfill gas is one of most successful forms of renewable energy in South Carolina.

Santee Cooper now has 17.1 MW at four sites; projects 42 MW in the future.

BMW utilizes landfill gas to produce the equivalent of 4.8 MW of electricity.

Enoree Landfill in Greenville County is generating 3.2 MW of electricity which is being sold to Duke Energy.

Kimberly-Clark constructed 3 MW-equivalent landfill gas project in Aiken Co.

FujiFilm starting project in Greenwood. Another 75 MW of energy may be possible.

Landfill gas

Future of renewable energy

• Attractive state incentives exist for biomass, but more needs to be done to encourage solar for businesses

• Biomass such as wood waste, agricultural products and by-products, and landfill gas most viable renewable options right now

• Solar, offshore wind, tidal and wave action are potentially abundant sources of energy in near future

Energy for transportation

• 13th in the nation in per capita motor fuel consumption.

• In 2007, we used 3.2 billion gallons of motor fuel, costing $8.7 billion

Growth rate of oil consumption, 1990-2005

• United States – 22%• World – 25%• South Carolina – 31%

Alternative transportation fuels• Compressed natural gas (CNG) • Propane• Hydrogen

The Central Midlands Regional Transit Authority (CMRTA) operates six natural gas vehicles which currently refuel on Flora Street in Columbia. 83 other vehicles in SC also run on CNG.

Columbia will soon be getting a hydrogen fuel-cell powered bus.

Natural Gas-Powered VehiclesAdvantages• Nearly 87% of U.S.

natural gas used is domestically produced

• 60-90% less smog-producing pollutants

• 30-40% less greenhouse gas emissions

• Less expensive than gasoline

Disadvantages

•Limited vehicle availability •Less readily available than

gasoline & diesel •Fewer miles on a tank of fuel

Natural Gas-Powered Vehicles • Dual Fueled vehicles – Require two separate

fueling systems, take up cargo space • Dedicated vehicles – Honda GX CNG is the

only model available now• Mileage 24/36 28 mpg equivalent combined

• Retrofits possible

CNG and Hydrogen

• Natural gas is principle source of hydrogen for the foreseeable future

• CNG fueling stations likely will be the pathway to the H2 fuel infrastructure in the future

• Many equipment manufacturers are the same for CNG and Hydrogen vehicle systems and fueling• Compression: CNG & C-H2• Liquefaction: LNG & L-H2

• Biogas is a renewable source of H2

Biofuels• Ethanol (E85, substitute for gasoline) & Biodiesel

(B20, substitute for diesel)• Reduce air pollution• Create jobs in South Carolina• Save money• Decrease dependence on foreign oil• Expansion of biofuels depends on development of

feedstocks that are not used for food

Arundo donax (Giant Reed) may be a useful bioenergy crop to produce cellulosic ethanol and/or energy.

Ethanol and biodiesel feedstocks

• Ethanol is made from: • Corn• Sugarcane, barley, sweet potatoes, etc.• Cellulose (wood chips, switchgrass, etc.)

• Biodiesel is made from:• Soy oil• Canola oil• Animal fats• Waste cooking oil• Jatropha seeds• Chinese tallow tree• Algae

Conclusion

For more information:

South Carolina Energy Office

1201 Main Street, Suite 430

Columbia, S.C. 29201

(803) 737-8030

www.energy.sc.gov