Increase in Capital Funding to Hydrokinetic Projects

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Hydrokinetic projects are projects that generate electricity from waves or directly from the flow of water in ocean currents, tides or inland waterways. According to some in the industry they are seeing an increased inflow of capital to the sector from investors, utilities and applications for federal stimulus money. The Federal Energy Regulatory Commission (FERC) staff developed a licensing process for hydrokinetic pilot projects tailored to meet the needs of entities interested in testing new technology, including connection with the interstate grid, while minimizing the risk of adverse environmental impacts. The goal of the pilot process is to allow developers to test new hydrokinetic technologies, to determine appropriate siting of these technologies, and to confirm their environmental effects, while maintaining FERC oversight and agency input. The process completes licensing in as few as six months to allow for project installation, operation, and environmental testing as soon as possible.

Many of these sites are located along the Mississippi, Missouri and Ohio rivers. Mark Stover, vice president for corporate affairs at Hydro Green Energy who has permits for sites in Mississippi, was quoted as follows in a recent newspaper article: “Money is flowing to this industry. I think we’re all about to see some incredible progress,” and “We have utilities talking to us now that two years ago probably wouldn’t have talked with us”. Other developers such as Marmc Enterprises and Free Flow Power Corp (who have permits for 55 sites along the Mississippi River between St. Louis and Plaquesmines Parish, Louisiana) intend to apply for federal stimulus money in order to fund their hydrokinetic pilot projects.

The State of Louisiana is looking to hydrokinetic power as a boon to their economy. As a result, they are considering enacting a state renewable energy portfolio, something no state in the southeast has yet to do. Unlike renewable power plants in rural areas, turbines installed in the nation’s largest river system will produce power within reach of existing transmission lines that serve cities and industries along the waterway. Unlike solar and on-shore wind power, which are intermittent and not considered by the National Renewable Energy Laboratory to have much potential in Louisiana, hydrokinetic power is constant. Free Flow Power Corp and Hydro Green Energy have both indicated that they would be interested in manufacturing their turbines in Louisiana.

Successful river projects should help pave the way for ocean tidal projects. Since the majority of the population lives in close proximity to the coasts or riverbanks, hydrokinetics presents one of the most significant opportunities for renewable energy in the country.

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Posted by admin on Jun 15 2009. Filed under Ocean Industry, Policy & Regulation, Ocean Power Technologies & Projects. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.