A solar power plant project has been given approval by the United States government. This project consists of a plant located in the region of Blythe, California on federal land. According to the Wall Street Journal, this plant is a joint venture, called Solar Trust of America, by the German company Solar Millennium AG and Ferrostaal AG. It is a six billion dollar project located on 7,025 acres in a California desert with the potential to generate up to 2,800 megawatts (WSJ). Now that approval has been granted, the next step for developers is to seek federal grants and loans. If everything is done in a timely fashion, as this certain grant is soon to expire, the company could get up to a 900 million dollar grant. California is eager for this project, as it is one of many solar plants they are envisioning for the state. Another benefit for everybody is the job creation. During construction, up to 1,000 jobs will be created and 300 daily jobs once it is completed. This plant isn't using conventional solar panels that you or I think of. It uses curved mirrors to send light into a central tube that will create steam to rotate the turbines and create energy.
As is California, I am much to eager about this project. It is a sign of the future of alternative energies in America. With the Obama administration's approval of this plant, much headway will be made. Being as California has many acres of desert, projects like these make perfect sense. The German company seems to have a firm grasp on the technology and if they feel this can be done in a cost efficient manner, then kudos to them. This will be of great concern to the oil and gas industry. As California has plans to build several more of these plants, the other energy companies in the industry might begin to worry with this project breaking ground. I feel that regardless of how they take this news, it is a good sign of the future of the energy industry and the direction it is heading. My only concern is that it would be nice to see some American companies gaining momentum in this sector of the industry. However, I feel after seeing the potential success and profits of this project, they might begin to see the light.
http://online.wsj.com/article/SB10001424052702303467004575574392614626562.html?mod=WSJ_Energy_leftHeadlines
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ReplyDeleteI totally agree with both, California and Adam. At first, I was a little iffy about the cost being exorbitant, but i did some research; it suggests otherwise. To build a coal power plant in Wisconsin, it is going to cost 1.1 to 1.2 billion dollars that produces 300 megawatts. The proposed solar plant will cost 6 billion but has the potential to produce 2,800 megawatts. So on a dollar per megawatt comparison, California's plant is comparatively almost twice as cost efficient. Furthermore, solar panels are much easier to maintain than coal-burning power plants. Not to mention, the coal plant will have to pay for its energy supply, whereas, the California plant can just look up and smile.
ReplyDeleteOn a side note, Adam did make a great observation this is a German company. America is far behind and must catch up.
http://www.jsonline.com/business/29482814.html