Renewable Energy Sources: The Alternative

SRI Consulting releases global reports on renewable energy materials

MENLO PARK, CA. February 13, 2007— Predictions that fossil fuels will be stressed to their capacities by 2050 have escalated research and investments in alternative energy sources. Coupled with increasing interest from consumers and politicians on conservation and demands for energy from emerging economies, the alternative energy industry is poised for growth.  SRI Consulting (SRIC) has released two new reports, Raw Materials for Biofuels and Materials and Chemicals for New Energy Generationthat provide comprehensive and current information on the contribution and cost of renewable energy sources. Each of these new reports provides valuable insight on energy materials and trends to prepare the chemical and energy industries and related stakeholders for new opportunities as well as for potential threats to their businesses.

Mr. Davenport added, “SRIC recently reported that the global biodiesel capacity exceeds the demand anticipated in the next 5-10 years. Nonetheless, we expect biodiesel will steadily increase as a percentage of total energy required. The regional land resources will impact biofuel feedstock options.  In some areas, there will be limitations in land and growing conditions.  In those areas, deficits will need to be supplied by imports or other renewable energy sources.”

The Materials and Chemicals for New Energy Generation report focuses primarily on solar and wind electrical energy and how these renewable sources could be used to conserve fossil fuels. The report identifies new materials that would be in demand with increasing use of these technologies. Today, solar and wind energy, two of many emerging sources of renewable energy, are essentially small businesses limited to regional or consumer applications. Currently, 7% of the total demand for electrical energy is generated by renewable sources. Over the next couple of decades, renewable sources will grow but still be small portions of the total energy supply.  

T. Adrian Gaitan, SRIC Consultant and author of Materials and Chemicals for New Energy Generationsaid, “The main issue retarding adoption of renewable sources for electricity is production cost.  Fossil fuels generate electricity at significantly lower costs. For example, fossil fuel production costs are about $25/MWh and are expected to remain flat until 2010. Estimates for solar production in 2010 are expected to be ten times higher, about $250/MWh.  Wind power generation of electricity is less expensive than solar. However, 2010 estimates for wind power are still four times higher than fossil fuel production amounting to about $100/MWh.”

Mr. Gaitan added, “Due to the cost disadvantages, government and utility company incentives to increase consumer demand, along with technology advances, are essential for more widespread use of all renewable sources for electrical energy.”