Southwest Region
SOUTHWEST REGION
From Site Selection magazine, November 2008

An
Oasis
of
Power

Alternative energy
plants proliferate in
the tri-state desert
region as investors
find the right mix for
commercial success.
D
oes the Desert Southwest hold the key to solving America's energy crisis? It may if a series of alternative energy projects succeed in their mission to reduce the nation's dependency on oil and keep the wheels of commerce humming in Arizona, Nevada and New Mexico.
      From innovative biofuel factories and solar cell plants to wind farms and geothermal facilities, the tri-state region of the American Southwest is leaving an indelible imprint on the future of renewable energy.
      An ambitious startup based in Pleasanton, Calif. – using a product that no one else wants, to create something that everyone needs – gained national attention July 18 when it selected a site in Northern Nevada for a breakthrough project.
      Fulcrum BioEnergy Inc., a privately held firm founded in 2007, announced that it will build one of the country's first plants to turn municipal solid waste into ethanol.
      The US$120-million Sierra BioFuels plant will be located on 11.3 acres (4.6 hectares) about 10 miles (16 km.) east of Reno, Nev., at the Tahoe-Reno Industrial Center in Storey County.
      Construction is set to begin by the end of this year, with the hiring of 20 to 30 factory workers and full production slated for early 2010.
      "This project is a watershed event in our nation's efforts to create a sustainable source of domestic, renewable fuel," said E. James Macias, president and CEO of Fulcrum BioEnergy.
Rendering of Fulcrum BioEnergy ethanol plant
Fulcrum BioEnergy Inc. is developing a $120-million biofuels plant near Reno in Northern Nevada. The plant will be one of the first in the U.S. to convert municipal solid waste into ethanol.
"Converting garbage waste into a clean, renewable fuel for cars has profound social and environmental benefits. It will help mitigate our dependence on imported oil, lower the price of gasoline, reduce the amount of waste landfilled, lower greenhouse gases and create a new industry of jobs and economic growth."

A Year of New Energy Sources
      The Sierra BioFuels plant is one of many installations cropping up throughout the Southwest to accommodate investors' thirst for alternative power.
      A review of the Conway New Plant Database shows that, in the past year, alternative energy plants and logistics facilities are two of the leading categories of industrial development in Arizona, Nevada and New Mexico.
      Ted Kniesche, vice president of business development for Fulcrum, explains why his California company chose to cross the Nevada state line to launch the first of its several planned biofuel plants across the U.S.
      "We were attracted to Northern Nevada and this particular industrial center for a number of reasons," Kniesche tells Site Selection. "The first was the fact that all permitting was in place on the site because we had purchased the project from our technology developer back in April. The transportation infrastructure of the adjacent Interstate-80 corridor helps us reach the Northern California market, and the site is rail served by Union Pacific, with lines going east and west along I-80."
Southwest Delivers Savings to
Logistics Space Users

      It helped that the Reno-Sparks area provides "an ample supply of feedstock that we can source locally," adds Kniesche. "With a couple thousand tons coming in each day from both Northern California and the Sparks area, we will have more than enough material to keep our plant operating."
      Kniesche says that the industrial park's utility infrastructure helped seal the deal. "The developers of the park have gone to great lengths to make the facility very developable," he says. "There are a variety of power lines coming into the site, plenty of water coming into the facility, along with natural gas and sewer."
      Richard Barraza, comptroller and vice president of administration for Fulcrum, notes that for every ton of waste received by the plant, 120 gallons of ethanol will be produced. "Our process is very unique," he says. "We will be the first on a commercial scale to take municipal solid waste and turn it into ethanol. We are here because we think Northern Nevada is a great market. We've got great access to feedstock. We look to be one of the lowest-cost producers of ethanol out there, if not the lowest-cost producer."
      The pendulum may be swinging toward more cost-effective methods of creating alternative energy throughout the Desert Southwest.
      On Aug. 22, New Mexico Gov. Bill Richardson and Raser Technology announced the construction of the first commercial geothermal power plant in New Mexico.
      The Lightning Dock Geothermal project will be built near Lordsburg, just east of the Arizona state line along I-10. Phase one will provide 10 megawatts of power – enough to generate electricity for about 8,000 homes. Phase two will expand the plant to between 20 and 25 megawatts.
      "We believe that the completion of this renewable energy plant over the next six months will mark the beginning of an expanding role for geothermal power in our nation's energy future," said Dick Clayton, executive vice president for Raser Technology. Raser's geothermal technology, developed by UTC Power, emits no air pollution or carbon while generating baseload power around the clock.

More Power from a Hot Planet
      In Albuquerque, Schott Solar broke ground March 3 on a 200,000-sq.-ft. (18,580-sq.-m.) solar cell manufacturing plant that will employ 350 workers. The initial investment will be $100 million, but long-term plans call for up to $500 million. (For more on this project, see our interview with Schott Solar's president and CEO in our March 2008 issue.)
      In Arizona, the Greater Phoenix Economic Council unveiled an initiative Sept. 3 to position the area as a preferred location for solar and clean technology, green building and renewable energy. The campaign is called "Greening Greater Phoenix Powered by SolarCity."
      "The desert is well suited to solar activity," says Barry Broome, president and CEO of GPEC. "The largest solar installation in the U.S. is being located here in a concentrated solar plant in Gila Bend. Abengoa of Spain is developing it. We are doing very well with foreign direct investment in this field."
      Located 70 miles (113 km.) southwest of Phoenix, the Abengoa project will be the world's largest solar plant when it opens in 2011, producing 280 megawatts of power on 1,900 acres (770 hectares). The plant is expected to sell $4 billion of electricity over 30 years.

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