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New Generation

by Adam Bruns

What does it mean to grow the energy sector? Does it refer to helping tech startups and established energy solutions providers expand their businesses? Does it mean utilities finding new ways to increase electrical power supply, dependability and diversification? Developing leading-edge lithium-ion batteries? Are we talking renewables and sustainability? Or is it about helping companies save on their energy bills, one LED bulb at a time?

Yes.

In Missouri, it’s about all those things. Battery firms are present throughout the state, including Johnson Controls’ expanding plant in the northwestern Missouri city of St. Joseph. But it’s southwest Missouri where the most pronounced cluster has formed.

Fall 2016 saw one of the state’s leaders in advanced battery development, EaglePicher, open a new 100,000-sq.-ft. Lithium Ion Center of Excellence in its hometown of Joplin in southwest Missouri. A year later, Montana-based ZAF Energy Systems announced the opening of its own new production facility in Joplin, where an initial $20-million investment will bring more than 100 jobs as ZAF seeds the market for nickel-zinc (NiZn) batteries as replacements for lead-acid batteries across such sectors as trucking, manufacturing, road construction and data centers.

"We just weren’t able to keep up with the demand with the capacity we had in Montana," said ZAF President and CEO Randy Moore. "The new production facility in Joplin will drastically scale up production to several thousand batteries per month, enabling us to keep pace with growing demand while also refining manufacturing processes and accelerating development efforts.

Manufacturing Savvy

By the beginning of 2018, ZAF already had around 23 people making about 200 batteries a month at the 34,000-sq.-ft facility in Crossroads Center Business and Distribution Park.

"The biggest thing that made me excited is we’re addressing an existing and extremely large market," Wilkins says of the company’s nickel-zinc product, a proven technology that he says has twice the power and capacity of lead-acid, lasts twice as long, but doesn’t cost twice as much. The timing couldn’t be better either, as even lead-acid batteries — a market one might assume to be saturated — are growing business at around 5 percent a year and expect to be a $60-billion market in five years.

Opportunities to power big trucks and data centers are front and center, and ZAF also is working the U.S. Navy on a product for submarines, as more and more power electronics on board mean the craft are running into physical-space constraints for batteries.

"The ecosystem is largely built around the talent pool — that drove 90 percent of our decision," says Wilkins, though low rents and cost of living help too. "I’m floored at the level of manufacturing [in Missouri]. To find such a good cross-section of blue-collar workers … you just don’t see that anymore. That made our minds up pretty quick."

Planning Ahead

Missouri’s array of energy solution providers includes firms such as St. Louis–headquartered Graybar and Emerson Electric, Johnson Controls, HNTB, Burns & McDonnell and Energizer. They are backed by institutional R&D expertise at the Energy R&D Center at Missouri University of Science and Technology (S&T) in Rolla; the Missouri Center for Advanced Power Systems (MOCAP) at Missouri Southern State University in Joplin; and the Center for Physical and Power Electronics at the University of Missouri’s flagship campus in Columbia.

But the state’s energy picture wouldn’t be complete without the power and human resources at major utilities such as Ameren, Associated Electric Cooperative and Kansas City Power & Light, which serve as both institutional infrastructure and energy solutions providers for end users.

In 2016, Ameren Missouri customers saved more than 52 million kilowatt hours of energy through efficiency projects and earned more than $3.6 million in cash incentives. The program recently helped Kraft Heinz achieve over $1 million in incentives at the company’s newly expanded processing plant in Adair County through installing LED lighting and motor controls and optimizing compressed air systems throughout the facility.

In addition to installing smart grid technology throughout its own infrastructure, Ameren Missouri is also boosting its own stake in renewable energy, announcing in September 2017 a commitment to add at least 700 megawatts of wind generation by 2020, representing an investment of approximately $1 billion, and to add 100 megawatts of solar generation over the next 10 years, with 50 megawatts expected to come online by 2025. Earlier in the year, Ameren Missouri announced plans to build a solar generation facility at St. Louis Lambert International Airport.

Across the state, KCP&L is pursuing its own retirement of old-line power plants and installation of renewables. But it’s also leading another surge: According to 2017 first-quarter numbers released by IHS Automotive and the Electric Power Research Institute (EPRI), Kansas City tops the nation in electric vehicle growth. Since deployment of the KCP&L Clean Charge Network began in 2015, the metropolitan area has experienced a 95-percent increase in EV adoption. In addition, Kansas City was ranked No. 1 in driver and charging station growth by ChargePoint, a manufacturer of EV charging stations, in 2016.

Features

New Generation

New projects and new data from companies and institutions around the world function as a global wind flow monitor, whether your favorite metric is air speed, megawatts, jobs or capital investment.

According to preliminary figures released in February by the Bonn, Germany–based World Wind Energy Association, 2014 brought a new record in wind power installations: More than 50 gigawatts (GW) of capacity were added during the year 2014, bringing the total wind power capacity close to 370 GW — enough to contribute close to 5 percent of global electricity demand.

The top 12 countries alone installed 44.8 GW, said the WWEA, which will publish its full statistical report for 2014 in April. Among the highlights:

  • China added 23.3 GW, the largest number a country has ever added within one year, reaching a total capacity of 115 GW.
  • Germany has become the second largest market for new turbines, adding onshore and offshore 5.8 GW.
  • “The US market recovered from its previous slump” and reached 4.9 GW.
  • “The newcomer of the year 2014 is Brazil,” with additional capacity of 2.8 GW, the first time that a Latin American country has reached such a figure. New national installation records were also achieved in Canada (1.9 GW) and Sweden (1 GW).
  • Denmark set a new world record by reaching a wind power share of 39 percent of its domestic power supply. Several other countries — including Spain, Portugal, Ireland, the United Kingdom and Germany — have now reached 10 percent or more of their power coming from wind.

A separate WWEA report issued in December estimated the total wind resource potential of the world at 95,000 GW. Mining more of that resource will take some major equipment.

The US market for wind power and the equipment that snares it has been intermittent in large part due to the intermittent nature of policy, as the federal Production Tax Credit for wind power rides a merry-go-round of expiration and temporary renewal, most recently expiring at the end of 2014 after a nearly useless two-week extension. Since 2008, over $100 billion in private investment has flowed into the US thanks in large part to that incentive. “Congress must find a way forward,” said American Wind Energy Association (AWEA) CEO Tom Kiernan in late January, “so we don’t lose years of investment and send this promising industry over another cliff.”

Despite the uncertainty, AWEA reported that 4,854 MW of wind power generation were installed in the US in 2014 — over four times more new wind energy than in 2013. There were about 2,500 turbines installed in 19 states. The top states for added capacity in 2014 were Texas, Oklahoma, Iowa, Washington and Colorado. As of the end of 2014, over 12,700 MW were under construction, with 23 states where construction activity was ongoing. Texas has more capacity under construction than is installed in any other state.

Other Shores Serve US Shores

Abroad, wind equipment projects include a 400-job turbine manufacturing facility from Acciona in Areia Branca, Brazil; a TPI Composites blade factory in Dafeng, Jiangsu, China; a Dong Energy distribution warehouse in Grimsby, UK (to serve the company’s major wind farm investments in the North Sea); a $17-million, 250-job blade plant from Metyx in Kaposvar, Hungary, close to the country’s border with Croatia; and Gamesa’s nacelle plant expansion in Mamandur, India, near Chennai. Gamesa says India has emerged as one of the most promising wind power markets.

France is doing its part to supply not only regional needs but US needs too, at the country’s first offshore wind turbine nacelle and generator plants in a new 300-worker, 19,000-sq.-m. (204,520-sq.-ft.) complex in Brittany from Alstom that was inaugurated in Saint-Nazaire in February 2014 to complement the company’s tower and blade production in Cherbourg. The machines Alstom is producing have wingspans of 150 m. (492 ft.) and capacity of 6 MW each.

Full production starting early this year includes five non-standard turbines intended for the Block Island wind farm in the US, which are expected to be commissioned in 2016 and represent France’s first export contract in the offshore wind energy sector, as well as being the first offshore project in the United States. The US Dept. of the Interior took measures in 2014 and early this year to open up territory for competitive lease sales in federal waters off the shores of Massachusetts and North Carolina.

Alstom and others are making strides in Latin America too, including a new $34-million tower plant in Jacobina, Bahia, Brazil from Alstom in partnership with infrastructure giant Andrade Gutierrez (AG). Expected to employ 250, the plant will produce 200 towers a year.

“Brazil should enter very soon the ranking of the largest wind power producers in the world,” said Yves Rannou, senior vice president of the Alstom Wind business, at the Jacobina plant’s inauguration last year. AG, known more for power generation than for production of the equipment to generate it, said the decision to invest in the plant instead of a wind farm was driven by market demand.

“We identified a repressed supply chain,” said Flavio Barra, global president of AG Energy. “What we propose to do is to manage the chain, since there is a tremendous gap to be filled.”