Energy today and
Tomorrow
Satyajeet D Pangu
WIPRO TECHNOLOGIES
TABLE OF CONTENTS
Introduction ........................................................................................3
PART I - OIL INDUSTRY, CHALLENGES AND IMPACT OF IT ....................4
2.1 BRIEF ABOUT OIL AND NATURAL GAS INDUSTRY…...........................................................…4
2.2 ENERGY CONSUMPTION AND CHALLENGES TO OIL INDUSTRY AND IMPACT…...................7
2.3 TECHNOLOGICAL STRATEGIES OF THE OIL AND GAS INDUSTRY………………..........................9
2.4 POTENTIAL OF IT IN OIL INDUSTRY SUPPLY CHAIN………………………………......................…. 12
PART II - ALTERNATIVE ENERGY SOURCES, FUTURE OF
ENERGY SECTOR WITH HYDROGEN ECONOMY AND
HOW IT CAN SUPPORT…………………………………......................13
3.1 FOSSIL FUELS…..................................................................................................................13
3.2 RENEWABLE ENERGY…......................................................................................................14
3.3 COMPARISON BETWEEN VARIOUS ENERGY PRODUCING TECHNOLOGIES…....................22
3.4 HYDROGEN ENERGY AND HYDROGEN ECONOMY - FUTURE OF ENERGY
TECHNOLOGY…………………………………..................................................................................30
OVERCOMING THE BARRIERS TO VALUE REALIZATION .....................33
4.1 OTHER WAYS TO PRESERVE NATURE AND IMPROVE ENERGY EFFICIENCY........................33
4.2 ENERGY EFFICIENCY AND CO2 EMISSIONS….....................................................................33
4.3 GREEN ENERGY COLLABORATIVE AND SERVICE IT SOLUTIONS FRAMEWORK
(GEIF)…..…………………………………........................................................................................35
CONCLUSION .....................................................................................37
Energy Today and Tomorrow
This white paper provides good overview of issues and concerns in energy sector along with overview of various energy sources
like fossil fuels and green energy sources. It compares fossil fuels with alternative energy sources. It gives brief overview of
environmental issues, energy efficiency challenges and Hydrogen economy. This paper highlights how Information Technology
helps in existing supply chain and how it can help as an enabler in improving energy efficiency and build supply chain around
Green Energy sources.
Introduction
Annual percent change of gross domestic product (GDP) or gross national product (GNP) represents economy growth in general
which refers to growth of potential output and national income, e.g. how rich countries can advance their economies and how
poor countries can catch up with rich ones.
There is currently a good correlation between a society’s wealth and its consumption pattern. As countries industrialize they
require more energy, which increases their GNP and the wealth of the population who in turn use more energy, e.g. cars, airconditioning etc.Fossil fuels like coal, oil and gas, together with uranium are the main primary energy sources consumed to
produce electricity and consumed for transportation.
Fossil fuels are not evenly distributed among countries but as commodities most can be easily shipped and are traded globally.
Crude oil is one of the most important commodities as to date it remains the only bulk cost effective source of energy for
transportation. It could be argued that from the 20th century onwards our whole world’s economic order has been based on the
trading relationships of oil which have resulted from the concentration of oil in some countries.
In 1973 the Organization of Petroleum Exporting Countries (OPEC) quadrupled the oil price and in 1979 they doubled
it because of political reasons and the speed of these rises had a major impact on the global economy. These oil shocks had
multiple effects not only on developed countries but also on developing countries. The oil price can have a major impact on local
countries’ inflation rates. Energy has affected the global economy and it is also increasingly recognized as having a big part by
impacting global ecology. Global warming, greenhouse effect are thought to be the consequences of rising levels of carbon
dioxide, methane and chlorofluorocarbons, caused by man-made activities, principally from energy generation. The present
acceleration rate is rising. Predictions on the earth’s ecology as a result of global warming abound. Rising sea levels, monsoonal
disturbance and increased cyclone and stormy activities are some of these; but it is difficult to attribute a single weather event
solely to man-made global warming.
Thus today’s growing economy is not only facing tremendous pressure to meet growing demand but also facing environmental
challenges. Energy sector is the basis of today’s growing economy and hence it is facing tremendous pressure to meet growing
demand and also environmental challenge of controlling environmental damage and preserving nature. This is driving strict
government regulations, and research and investment in alternative energy sources such as solar, wind, ocean and geothermal
etc. in order to preserve nature.
Part 1 of this document covers typical challenges that oil Industry is facing and their impact, government regulations and how IT
can play a significant role to address these challenges of Oil Industry.
Part II of this document covers various alternative energy sources and talks about future of those energy sources. This document
covers hydrogen economy future in brief and finally suggests Green Energy IT Framework (GEIF) as an enabler in stabilizing and
supporting energy sector with changes.
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2. PART I – OIL INDUSTRY, CHALLENGES AND IMPACT OF IT
2.1 Brief about oil and natural gas industry
Typical Oil and Gas supply chain is as follows:
Upstream
The upstream sector involves exploration—the search for sufficient reserves. Production is the process of getting the oil out of
the ground. Most of the oil is found underground using extremely sensitive and highly technical equipment.
Oil trapped underground needs to be pumped out. To extract as much oil as possible, carbon dioxide, other gases, and water or
chemicals are often injected to maintain well pressure. An assembly of complicated pipes and valves control the flow at the
wellhead.
Exploration – This is the first stage of oil industry supply chain which involves locating new oil resources using technology means.
Once an oil resource is located, well is drilled to extract oil out. This is a very expensive process.
Production – Once a well has been drilled, a wellhead such as a “Christmas tree” is put in place (collection of valves) to enable
oil to be extracted. This regulates and controls the flow. Depending on the pressure inside the field it is
determined whether additional pumps need to be utilized.
Downstream
Transportation, storage, distribution along with refining come under downstream sector.
Transportation – Once crude oil has been extracted, it is transported to oil refineries through pipeline or transportation like
tanker, train and road transportation.
Refining – Crude oil extracted direct from the well is not useful for most situations to be used as fuel in its original form. This
crude oil is therefore “refined” through fractional distillation to separate it into different products such as gasoline, diesel,
aviation gas, kerosene, paraffin and tar. Naphtha extracted is used as a base element for synthetic rubber and plastic.
Distribution – Various fuels and lubricants are distributed to gas stations, retail shops and relevant industries through
a distribution chain.
In case of Natural Gas supply chain flows like below
Exploration – Production – Processing - Transportation – Distribution
Out of which processing stage is important and most involved. During processing stage, unwanted gaseous elements
such as water, hydrogen sulfide and nitrogen are removed. The gas which is supplied to end customer is mainly
methane.
In Downstream sector storage and marketing play extremely critical role and contribute as one of the important
deciding factors in sales and profits under tight competition scenarios.
Below graphs show some statistical information about top 5 companies in Oil Industry, top 5 oil exporting countries
and top 5 oil consuming countries.
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Graph 1
Graph 2
Graph 3
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Graph 4
Graph 5
Graph 6
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2.2 Energy Consumption and Challenges to Oil Industry and
impact
Primarily, following four factors determine how much energy is used in society.
Population and geography – Highly populated and hot climate countries consume more energy on air-conditioning. Similarly, in
countries where climate is cold people tend to consume energy on heating.
Economic factors – Higher-income countries with more industries tend to use more energy than less-industrialized
countries.
Technology Efficiency – Depending upon machine and technology efficiency use of energy varies.
Lifestyle – Lifestyle includes a variety of energy-related factors, e.g. living in smaller house or bigger house, having
more cars or just one car or use public transport etc.
Oil has played and is playing an important role in day today energy consumption and so oil is one of the most important
commodities in the world and has a major impact on the global economy. As you can see from above graphs, availability of
crude oil is unevenly distributed. Global demand for oil and gas is increasing and access to exploitable global oil reserves are
declining. At the current rate of energy consumption, US energy demand is greater than the domestic energy supply. Because of
increasing energy demand and tight global energy supply (through OPEC), prices are continually increasing. Emerging
economies, such as China and India are leading this increase in demand. Oil suppliers operate under increasing pressure as
emerging countries need more oil. The US Energy Information Administration (EIA) predicts that over the next 20 years,
emerging countries will be responsible for a 45% increase in oil demand.
With increased oil consumption for electricity and transportation there is the potential if nothing changes for significantly
increased large emission of greenhouse gasses like CO2 leading to global warming. The aim of oil and gas companies is to
maximize returns to shareholders by producing and selling more than their competitors at the highest margins in order to make
higher profits, which will provide the funds necessary forfinding and developing new oil and gas sources. One of the biggest
challenges the oil and gas industry faces is to increase energy supply. In order to produce more oil and gas, more energy sources
need to be identified or more oil / gas need to be extracted from existing reservoirs. Big investments are needed to fund
research and exploration, to dig new wells, and to improve the current supply chain.
As supply and demand is closely matched, major political events such as political uncertainty, natural disasters, strikes etc. can
cause price volatility which has direct impact on our lives as it impacts directly on the price we pay for fuel at the pump, and
indirectly in the price of things like food and clothing.
Following table lists various challenges Oil Industry is facing and the impact
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Table 1
Challenge
Description
Impact
Increases in consumption
This increases demand and causes decrease in supply intern
causing higher oil prices.
Higher Oil prices
Fluctuations in demand
Various reasons like natural disasters, heat waves, snowfalls, or
any other sudden weather changes cause fluctuations in
demand that in turn causes supply not keeping pace with
demand. Sudden increase in oil imports can create local supply
shortages and increased oil prices
High prices or energy
shortages in local markets
Political environment and
instability
Political instability in major OPEC countries can reduce supply
and increase the risk of supply disruptions.
Higher oil prices due to
reduction of supply.
Government controls
Due to government controls and regulations supply / demand
and prices may be impacted.
Affects demand and can
reduce incentives for
increased supply
Depleting oil reserves
Oil reserves deplete in a bell-shaped curve. Peak production is
when the top of the bell is reached. After peak production has
been reached, production declines. The “easy to access” global
oil reserves are depleting and oil and gas companies are finding
it increasingly difficult to locate new energy sources. Some
countries are permitting only local companies to exploit their
fossil fuels which can reduce available supply. Result is oil
becomes scarcer, that will raise the price of oil
Higher oil prices in long term
due to supply shortages
Alternatives renewable
energies
Fossil fuel alternatives are renewable energy sources such as
hydro power, biomass, solar power, wind and hydrogen that
have the potential to have a considerable impact on the demand
for oil and gas. Environmental concerns about the impact and
safety of fossil fuels are increasing, reducing demand for fossil
fuels as people seek cleaner technology.
Lower prices in long term
Control of supplies
Global oil and gas supply is dominated by OPEC; other non-OPEC
countries like Russia often follow their lead. The Organization of
Petroleum Exporting Countries (OPEC) aims to stabilize oil prices
by correcting the imbalance in the market and ensuring that
crude oil prices remain at acceptable levels (usually by
restricting supply).
This has impact on supply
causing increase or
decrease in oil price.
Safety Issues
Safe facilities are essential for producers, consumers, and the
government. To stay in business, oil and gas producers must be
able to ensure a sustainable and timely oil supply at affordable
prices. Any threat to the safety of the facilities due to natural
disasters, intentional destruction, or war can seriously affect
production and supplies. Furthermore, as oil and gas are highly
flammable, producers must do everything they can to minimize
the risk of fire hazards, explosions, and faulty pipelines. Safe
facilities are essential for companies to continue receiving
license to operate from the governments and for shareholders
to be assured that management is capable of running these
companies.
Can seriously affect supply
and health.
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Environmental
challenges – global
warming, smog, acid
rain and oil spills
Government regulations
Global Warming – Global warming represents potential dramatic
rise in the annual average global surface temperature of the
earth by 1.5 °C to 4°C. Because of such a significant change
alterations are begin to be seen in climate like rainfall
distribution changing, frequency of severe weather events, such
as hurricanes and typhoons are increasing. But how Oil Industry
is associated with this? Most scientists believe that the change is
due to increasing amount of man-made carbon dioxide (CO2)
and the other gases in the earth’s atmosphere acting to trap
outgoing thermal radiation which then warms the earth. And
fossil fuel burning for transportation and electricity produces
maximum Co2.
Energy policies and regulations are important to companies in
the oil and gas industry because they determine production,
storage, transportation, import and export regulations.
Protectionist policies and government
monopolies decide the import and export regulations. These
regulations are largely responsible for the development and
improvement of national oil companies and domestic energy
development.
Direct impact to clement,
health and planet earth
Maintaining Regulations is a
challenge and expensive.
Countries like US and UK are facing major energy challenges due
to growing population, expanding economy, and rising standard
of living.
Governments are very aggressive on responding to two main
challenges:
• Cutting carbon emissions to tackle global warming
• Ensuring secure, clean and affordable energy as imports
replace declining production from North Sea oil and gas.
Similarly all around world individual government policies and
regulations are very important for oil companies from import
and export perspective, environmental issues and alternative
energy sources which could have greater impact on oil
companies.
2.3 Technological Strategies of the Oil and Gas Industry
Companies can gain a competitive advantage through the successful deployment of technology. Technology in the oil and gas
industry is used for different purposes throughout the value chain, including improvements in exploration and production,
storage, distribution, trading, marketing, supply chain integration and even abandonment.
Innovative technologies can make development more economical; technologies for overcoming the deepwater challenges of
strong currents and hydrostatic pressure, such as computerized drill bits that monitor pressure; horizontal drilling techniques to
tap resources inaccessible to conventional vertical drilling.
Technological strategies are not limited to operational solutions. IT solutions, including the Internet and ecommerce, improve
trading and information sharing at all stages of oil and gas production. The stages include, Exploration and appraisal – Social
media applications allow knowledge to be shared and data to be accessed and analyzed effectively.
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Field development – The Internet improves information flow between partners, which allows for more efficient
project planning and management of field development.
Oil and gas production safety – Emergency response units can be linked to production sites through central web sites, providing
critical information about site location and personnel. Supply chain collaboration, through integration and the enterprise
resource planning (ERP) solutions, can improve processes and help to solve industry problems, such as cost reduction.
Companies can also use IT and e-commerce to improve the supply chain. These strategies include
1. Integrating the supply chain using enterprise-wide software solutions
2. Shortening cycle times with electronic order-processing
3. Improving communication between trading partners that enables better collaboration among key customers, suppliers, and
service partners
Customer relationship management (CRM) is another vital part of the supply chain. Technological strategies can improve CRM,
especially in B2B situations. B2B, or business-to-business, refers to electronic communication between companies. Similarly, in
business-to-consumer, or B2C relations, companies can offer various programs and other incentives to build better relationships
with consumers and encourage the use of their gas stations.
There is some key business strategies commonly used across Oil Industry and IT, which can be combined with those
to produce results quickly.
These Strategies are as follows:
1) Strategies for Profitability
Good demand, combined with limited supplies of oil, is driving oil prices up. A higher price per barrel has motivated many
‘exploration and production’ (E&P) companies to expand production. However, new investments and high fixed costs are
adversely affecting profitability. Production expansion also places companies at risk if the price for oil decreases. Companies are
making very watchful investments in expanding capacities, and are trying to reduce costs and drive increased revenue to the
bottom line. They are also optimizing existing capacities, making operations more efficient through better technology and
flexible production techniques. Oil and gas companies use four strategies to help increase profits:
a) Taking advantage of increasing prices and the gap in demand and supply of oil and gas
b) Rationalizing the products/service portfolio and directing resources only to products with the highest net present value (NPV)
c) Improving pricing tactics
d) Increasing market share
e) IT can help in bringing real time data integrated with web service for making careful investments in new exploration activities
with predictable and accurate data.
2) Ensuring Security of Supply
The security of energy supply directly affects the economy in developed countries. With several major oil fields showing
declining productivity, oil companies are looking for alternative sources to maintain a steady supply of the resource.
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There are three main strategies for helping secure a regular supply of oil:
Improving communication between oil suppliers and consumers reassures consumers of market stability. This averts panic and
consumer action that may result in speculation and fluctuating demand. Improved communication can also foster accurate
supply and demand forecasting. Many companies have accelerated their plans to bring on stream in production capacity that
can meet continued growth by optimizing their current capacity and improving yield and increasing investment in exploration
and production of oil.
More oil and gas will need to be refined, processed, and transported as production increases. By investing in sectors
such as refining, processing, and transportation, security of supply is ensured and bottlenecks in the downstream
sector are avoided.
3) Handling Geopolitical Issues
Geopolitical issues present a challenge to oil and gas companies because they can threaten security of supply and cause prices
to become more volatile. No company operating in the global environment can isolate itself form the risks resulting from
geopolitical issues.
Companies can apply three main strategies in response to geopolitical issues. Management will often implement a single
strategy or a combination of the following strategies:
a) Find common ground – Companies can work together to achieve common goals of ensuring energy security (Illegal in most
markets)
b) Become more diversified – By spanning many continents and countries it helps companies minimize geopolitical risks and
uncertainties.
c) Withdraw from the global market and focus locally – This is an extreme strategy in response to geopolitical issues and is a
reverse of the global diversification strategy. A company can recoup some of its investment costs, consolidate, and refocus on
local business opportunities (unlikely, best companies change their investment risk profile and make investments in less risky
countries and reduce investments in high geopolitical risk countries).
4) Exploring alliances with other companies and partners
Collaboration can be a great benefit to all parties concerned, principally by reducing risks. However, profits will be shared among
all parties involved, meaning a company needs large profits to see any real benefit.
5) Building new relationships with host governments to improve relations
6) Take advantage of market drivers
Detecting trends in market drivers can be very useful when a company faces price volatility, financial challenges, or cost
reduction. If trends are positive, the company will be alerted early and gain a competitive edge, possibly resulting in large
profits. If trends are negative, the company can recoup costs of investments before the decline causes large losses. However,
trends are merely indicators of the way things are likely to proceed. They may not always be correct.
7) Rationalize the products/services portfolio
A company can increase profits by directing resources only to the product lines with a high net present value (NPV)
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or focusing on core activity, outsourcing peripheral activity to others, e.g. IT, Accounts. However, this strategy will not increase
productivity of these remaining product lines.
Restructure the asset portfolio
Removing underperforming products and unprofitable assets from a company's portfolio can help refocus on the company. This
is a good strategy to use when other strategies have failed, but it will not improve the profitability of the remaining assets and
products.
2.4 Potential of IT in Oil Industry supply chain
In recent past many new sites appeared in energy sector covering e-business. IT adds lot of value in oil supply chain, however
there are gaps in energy sector which IT can fill and help energy sector to become smarter. E-business and the Internet have the
potential to transform the upstream and downstream sector of the oil and gas industry. At each stage of the exploration and
production (E&P) life cycle IT has a potential to run the sector in a smarter way.
1) Exploration and appraisal - Sophisticated evaluation tools characterize the exploration and appraisal phase of the
upstream sector. These tools are used to analyze prospect opportunities and compare risk and return profiles of different
investment options. In the exploration and appraisal stage of E&P, e-business, web services and knowledge management
applications could allow knowledge to be shared and data to be accessed and analyzed effectively to simplify the management
of portfolios and investment prospects.
2) Field Development
- When companies engage in field development, they want to reach first oil as soon as possible.
Partnerships are a vital component of this activity. These partnerships can be maintained through web based communications.
In field development, the Internet improves information flow between partners and allows for more efficient project planning
and management. This is all about visualization; advanced seismic analysis, better reservoir modeling. It also improves the
collaborative and interactive aspects of the phase. Various internet based tools like sophisticated project and portfolio
management tools, effective web based communication tools could play key role in planning, communicating and saving time,
resources and money. E.g. message about bird flu, hurricane or any natural disaster, through light weight web components can
reach in real time on laptops, PDAs. With the help of these alerts travel arrangements can be made accordingly.
3) Production
- the main focus of the production phase is maximum recovery. To achieve this, companies must make
optimal use of resources. In the production stage, e-business can help transform the cost structure associated with production
by managing economies of scale and rebalancing asset portfolios. As production costs normally account for 40 to 50 percent of
the life cycle's cost per barrel, the savings are potentially significant
Health and safety is one of important challenges for Oil Industry. Oil spills impact on offshore facilities, employee
health and also on environment. IT can run services including real time monitoring, automatic alerting, incident
registering and coordinating communication through helpdesk systems..
4) Abandonment
- the main focus of the abandonment phase is to maximize value. Companies will often sell reuse the
existing platforms and equipment (not commonplace). In the abandonment stage, e-business potential has not yet been
exploited. The Internet could help companies quickly and easily access information about regulations and service providers. It
can reduce decommissioning costs and help to dispose of surplus or used assets.
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In downstream sector also IT has huge potential and already playing significant role.
Transportation and storage - IT b2b solutions are already implemented to manage business among partners to provide effective
communication between production and refineries.
Refining – More about optimizing blends of crude received against demand, big linear programs as well as maintenance
scheduling, real time analysis to ensure maximum up-time. Health and safety is important in refineries as well and IT can run
services including real time monitoring, automatic alerting, incident registering and coordinating communication through help
desk systems.
Storage and Distribution – Various fuels and lubricants are distributed to gas stations and retail shops and relevant industries
through distribution. IT plays major role in retailing.
Energy Efficiency
Improving energy efficiency is gaining importance all over the world.
?How
energy is consumed at each process stage right from Exploration and Production to refineries, storage and
transportation.
?Measure
?Amend
the consumption
the processes or design and implement new processes to reduce energy consumption
?Monitor
the consumption throughout and keep improving it.
IT can play an important role as an enabler in above process.
Thus IT has still huge potential in improving oil and gas supply chain and enable energy sector to conduct the business in smarter
way to reduce impact of challenges.
3. PART II – ALTERNATIVE ENERGY SOURCES, FUTURE OF ENERGY
SECTOR WITH HYDROGEN ECONOMY AND HOW IT CAN SUPPORT
3.1 Fossil Fuels
Fossil fuels like coal, peat, oil and gas are primary drivers in Energy sector mainly responsible to produce electricity and as fuel
for transportation.
Oil and gas – petroleum is the generic term for hydrocarbons derived from organic material and deposited
during sedimentary rock-basin formation. Oil is highly mobile fuel; it can be piped, shipped by tanker or moved by
road or rail. USA remains a high oil-consuming society.
Natural gas – Natural gas is nothing but gaseous fossil fuel consisting primarily of methane. It also includes
significant quantities of ethane, butane, propane, carbon dioxide, nitrogen, helium and hydrogen sulfide. It is found
in oil fields and natural gas fields. Before natural gas can be used as a fuel, it undergoes extensive processing to
remove almost all materials other than methane. Some of it is refined into Liquefied Petroleum Gas (LPG), Liquefied
Natural Gas (LNG) and Compressed Natural Gas (CNG) at various parts of world and is traded as commodity like oil.
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Coal - non-renewable fuel, production and recovery rate are high, costs per tone are low, but large areas of land may be
affected and need to be restored when mining is completed. It has become increasingly capital-intensive. CO2 emission is a
major issue with coal.
Peat – is a vegetable matter accumulated at temperature of less than 50c, the threshold for coal formation. Peat is “younger”
coal. And emissions from burning it are often worse. Indonesia has the world’s largest reserves with 200 billion tones.
Nuclear Power – one of the most significant technological developments in the twentieth century. Nuclear Fission is done
with chain reaction in Nuclear reactor. The uranium bundle acts as an extremely high-energy source of heat. It heats the water
and turns it to steam. The steam drives a steam turbine, which spins a generator to produce power.
All these sources are called nonrenewable energy sources as eventually OIL, Gas Coal, Peat and Uranium reserves will run out.
3.2 Renewable Energy
Renewable energy supplies are defined as those which harness energy in the natural and sustainable environment.
Impact on the environment from carbon dioxide emissions are minimal, compared with the use of nuclear or fossil fuels.
Sun is the source of most of the energy on earth. Any fossil fuel or coal energy also owes its origin to the sun via animal / plants
photosynthesis. Renewable energy uses this natural energy more directly such as wind energy, wave energy etc. Waves occur
because of gravitational interaction with the moon as well as energy from the sunwinds, and winds blow because the sun warms
atmosphere. Warm air becomes light and tends to rise which is replaced by other air and thus wind forms.
Continued high prices of oil and natural gas, a growing concern about environmental problems, the energy security benefits are
three of the principal factors influencing investment in advanced renewable energy systems and technologies.
Let us see what all come under renewable technology which can produce electricity and can be used in transportation (though
use of renewable fuels for transportation has much narrower options ) where huge amount of CO2 emissions takes place due to
fossil fuels that can be avoided through renewable technology.
1) Wind - Wind energy is currently the world’s fastest growing energy business.
People all over the world are turning to wind energy not only because it is cost-effective, clean and safe, but also because
windmills have traditionally been a part of their cultures and traditions (some say wind turbines ruin tourist attractions). Below
simple diagram explains how electricity can be obtained from wind energy.
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Satisfying
?
the customer is the primary driver. The No.1 value driver behind ALM/PPM tools investments is
customer satisfaction, as indicated by responses of better quality, better customer satisfaction, and better business-IT alignment
- 96%, 84%, and 82%, respectively. IT organizations are adequately concerned about satisfying their customers: the business.
Productivity
?
is high on the list. Fully 82% of respondents cited lower costs as a value driver. Cost efficiency, as a
highly visible indicator of performance, is obviously top of mind in IT organizations.
?
Driving the
business is a close third. Faster
time-to-market was cited by 74% of respondents, indicating
strong support for what Forrester Research calls IT-to-BT transformation: "Just as past woes have corralled CIOs into a primary
focus on IT operations, a new technology reality is redefining alignment, increasing business demand for results, and upping
firms' hunger for innovation. This new challenge is business technology (BT) - pervasive technology use that boosts business
results and in which the business becomes deeply embedded in technology."
?
IT organizations
are doing the right things initially . . . sometimes. Fifty-eight percent of respondents
indicated that their organizations had built a business case for all of their ALM/PPM tools investments, and 62% indicated that
the selection, purchase, and implementation of these tools had been driven by formal initiatives. But 40% indicated that they
had built a business case, and 34% had launched a formal initiative only for some tools investments (see Figure 2). This suggests
that a significant number of tools investments are not managed with appropriate governance, and there is no expected value
associated with these investments from the get-go.
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Group of wind turbines are set in remote areas where average wind speeds are high and can make electricity for the utility grid.
The electricity is sent through transmission and distribution lines to homes, businesses, schools, and so on. Modern wind
turbines fall into two basic groups: the horizontal-axis variety and the newer vertical-axis design. Horizontal-axis wind turbines
typically either have two or three blades. These three-bladed wind turbines are operated "upwind," with the blades facing the
wind. The wind turns the blades, which spin a shaft connected to a generator and makes electricity. Utility-scale turbines range
in size from 50 to 5 MW. Low Power turbines, below 50 kilowatts, are used for homes, telecommunications dishes, or water
pumping.
Wind Farm – A wind farm is a collection of wind turbines in the same location to generate electricity. Production varies with
the wind.
There is one interesting supergrid solution proposed using wind energy to create a supergrid of interconnected wind farms
across Europe.
A Supergrid proposal for Europe on Wind Power
A European sub sea supergrid running from Spain to the Baltic Sea, in which high-voltage DC power lines link national grids and
deliver power from offshore wind farms. This solution has two benefits,
1) When the wind is blowing over a wind farm on the supergrid, the neighbouring cables would carry its power where most
needed by aggregating wind power across geographically dispersed areas.
2) When the farms are still, the cables will serve a second role: opening up Europe's power markets to efficient energy trading.
The result would be a more integrated and thus more competitive European market, delivering power at lower prices. And it
would enable Europe's grid to safely accommodate even cleaner, but highly variable wind power. The wind farms would produce
10,000 megawatts of electricity -- 50 times more than today's biggest offshore farms.
A 5,000 megawatt DC power line would carry power west to the U.K., and a second 5,000 megawatt line would run east to
continental Europe, perhaps to the Netherlands. When the wind is too calm to produce power the lines would go into
interconnect mode, carrying 5,000 megawatts of electricity in either direction. This would, for example, more than double the
U.K.'s energy-trading capacity, make the country's grid more stable and give its consumers access to a wider range of power
producers.
This flexible DC network would be made possible by digitally controlled, high-voltage DC power converters, a technology that
has been entering the market over the past five years.
The challenge is to get the supergrid onto the policy agenda because it's a big-energy concept.
2) Solar
a) Solar PV Systems
A photovoltaic (PV) cell is a particular form of semiconductor diode that converts visible solar light radiation directly to
electricity. A large-scale PV system, which is also called solar farm, is actually a massive array of PV cells. Depending on the size
of array it can produce up to 100 MW power. Below diagram shows how PV system works to produce electricity.
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b) Solar Ponds (very rare) – Differences in the salinity of seawater and fresh water could also be used to produce power,
although this area of ocean energy research is at very early stage. By maintaining gradation of salt concentration and
therefore density from the water's surface to the bottom of the pound, temperature differences between cool water at surface
and warmer water at the bottom is achieved. This drives heat engine to generate electricity.
The solar pond works on a very simple principle. It is well-known that if water or air is heated they become lighter and rise
upward. Similarly, in an ordinary pond, the sun's rays heat the water and the heated water from within the pond rises and
reaches the top but loses the heat into the atmosphere. The net result is that the pond water remains at the atmospheric
temperature. The solar pond restricts this tendency by dissolving salt in the bottom layer of the pond making it too heavy to
rise.
A solar pond has three zones. The top zone is the surface zone, or UCZ (Upper Convective Zone), which is at atmospheric
temperature and has little salt content. The bottom zone is very hot, 70°– 85° C, and is very salty. It is this zone that collects and
stores solar energy in the form of heat, and is, therefore, known as the storage zone or LCZ (Lower Convective Zone). Separating
these two zones is the important gradient zone or NCZ (Non-Convective Zone). Here the salt content increases as depth
increases, thereby creating a salinity or density gradient. If we consider a particular layer in this zone, water of that layer cannot
rise, as the layer of water above has less salt content and is, therefore, lighter. Similarly, the water from this layer cannot fall as
the water layer below has a higher salt content and is, therefore, heavier. This gradient zone acts as a transparent insulator
permitting sunlight to reach the bottom zone but also entrapping it there. The trapped (solar) energy is then withdrawn from
the pond in the form of hot brine from the storage zone.
Energy, in the form of hot water, is extracted by circulating fresh water in pipes laid on the bottom of the pond. Fresh water (or
radiator coolant) is circulated through them, and is heated by the saline pond water. This hot fluid is then used to run heat
engine to make electricity. Representation of how this technology works is as follows:
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3) Water – Hydro Power – A wind Hydropower plant captures
the energy of moving water to generate electricity. A
turbine converts the kinetic energy of falling water into mechanical energy. Then a generator converts the mechanical energy
from the turbine into electrical energy.
Huge dam is built on a large river that has a large drop in elevation. Reservoirs are optional but help smooth out supply. The
dam stores lots of water behind it in the reservoir. Near the bottom of the dam wall there is the water intake through gates.
Gravity causes it to fall through the penstock inside the dam. At the end of the penstock there is a turbine propeller, which is
turned by the moving water. The shaft from the turbine goes up into the generator, which produces the power. Power lines are
connected to the generator that carries electricity. The water continues past the propeller through the tailrace into the river past
the dam.
?
Pumped Storage
Pumped storage is about using the fact that demand and price of meeting that varies in a 24 hour period. Usually price of energy
at night is much lower. At that time water is pumped into a reservoir, and then released to power turbines at peak demand.
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4) Ocean Power –
a) Wave Power –Ocean waves are created by the wind blowing over the surface of the water. Their size and energy content
depends on the speed and duration of the wind and its fetch – distance on the ocean surface over which the wind blows.
Multiple techniques are experimented. The most popular is the water-to-air junction used in devices called oscillating water
columns (OWC) as below: At present this is one of the least proven technologies with only a few experimental machines in
operation.
b) Tidal Power - Tides arecomplex phenomena that not only reflect the influence of the sun and moon in accordance with the
laws of gravity, but also the rotation of the earth about its axis and the motion of oceanic masses. The operational principle is
simple in which power was generated through a tidal damming system equipped with sluice gates and a paddle wheel. Bulb unit
permits the turbines to be used in both water-flow directions so that power is produced during filling as well as during emptying
of the basin – a double-action cycle.
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The gravitational pull of the moon causes water to flow in from the ocean twice a day on the flood tides, and outward during
ebb tides. Additional monthly and annual lunar cycles vary the strength of these currents. Below is the representation of a
technique to generate electricity using Tidal Power.. – Note, only a couple sites are yet in existence.
Tidal power can be classified into two types. Tidal stream systems make use of the kinetic energy from the moving water
currents to power turbines, in a similar way to underwater wind turbines. This method is gaining in popularity because of the
lower ecological impact compared to the second type of system, the barrage. Barrages make use of the potential energy from
the difference in height (or head) between high and low tides, and their use is better established.
c) Ocean Thermal PowerTemperature differences in seawater could be used to generate power. In a “closed cycle” system a pressurized fluid such as
ammonia is vaporized with warm surface ocean water to run a turbine generator to produce electricity. The vapor is then
condensed with cold ocean water to begin the cycle again. Ocean Thermal Energy Conversion (OTEC) is a system typically
suitable for tropical oceans because tropical oceans can be regarded as consisting of two vast reservoirs of water, one at 27 to 30
degree C because of surface heating by sun and the other at 4 to 5 degree C at about 1 km down the surface. Electricity
generated by an OTEC system can be either transmitted to the power grid or can be used to produce hydrogen through
electrolysis of water which can be stored and transported. OTES plants could become the sites of world's floating cities in future,
since they could produce power, air conditioning and fresh water for inhabitants, as well as nutrient-rich cold waters to support
the culture of fish, shellfish and seaweed. Below represents closed system OTES technology to produce electricity.
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5) EarthGeothermal – Rock and water in the earth’s crust are continually heated and the intrusion of molten rock, or magma,
from earth’s mantle into the crust. This stored heat, known as geothermal energy, can be extracted and used to
produce electricity and other things like heat to warm buildings. The amount of geothermal energy stored below the
earth’s surface is enormous and represents 35 billion times the world’s present total annual energy consumption. In
reality, however, only small fraction of this can be extracted from the earth’s crust. It is said that geothermal energy
is one of the cheapest sources of electricity. With additional research and development into advanced technologies
to extract energy from hot dry rock and magma resources, geothermal energy could eventually provide vast amounts
of usable energy at a cost competitive with conventional sources and so it is expected to play an important role.
Below is the representation of how this works.
Cold water is pumped down from power station through a hole into above highlighted space or hot region under the ground.
The hot rocks under the ground heat water. Hot water or steam is forced up through another hole. It is about 190 0C when it
comes to surface.
There are three ways possible
1) Steam from underground can directly turn turbines.
2) Underground hot water can be changed to steam by lowering air pressure and then the steam turns turbine.
3) Underground warm water can be used to heat another liquid that boils at a lower temperature and the vapor from this turns
the turbines.
The heat underground is renewable and very little emission takes place, however if safety is not maintained underground gases
can escape causing air pollution. About 25 countries use geothermal power. Largest users are US and Philippines.
6) Biomassconsists of growing plants or agricultural waste and even garbage. Biogas is high-quality fuel that is excellent for combined heat
and power generating (CHP) plants.
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It is CO2 –neutral and lower on methane emission fuel that can be used as substitute for fossil fuel consumption. It is said that
enough plants grow every year to meet world's energy needs eight times over. Plants like Seaweed, Lichen grow all over the
world and can be useful source as Biomass. Animal dung, strew from crops, household rubbish, sawdust and wood waste etc.
can be burned to produce electricity. Methane can be produced from rotting waste or dung through slurry tank and
bacteria treatment. Methane is harmful gas but when burned to produce heat or electricity produces fewer amounts of
emissions.
7) Aero electric PowerThis is still sort of imagination stage technology. Some scientists think that atmospheric electricity can be tapped to get usable
energy. In concept several hundred million watts of power on average is possible from atmospheric. The earth is very good
electrical conductor. So is the upper part of atmosphere which is known as ionosphere. Where as lower atmosphere does not
normally conduct electricity, so it acts as electrical insulator. When an insulator is sandwiched between two conductors, that
insulator is known as dielectric resulting in a capacitor capable of storing energy as an electric field. This capacitor is constantly
charging up in some regions and discharging in other regions forming a global circuit system. If this energy gets trapped it will be
called aero electric power.
3.3 Comparison between various energy producing technologies
Below table consolidates all different energy sources, technologies, advantages and disadvantages
Table 1
Type of | Various fuels|Basic principle of how|
Energy
and
it works
technologies
Fossil
Fuels
Coal, Oil,
Gas
Heat water by
burning fuel.
Generated steam
turns turbines
which in turn
generators to
produce electricity
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Advantages
Very large amounts of
electricity can be
generated in one place
using coal, fairly cheaply.
Transporting oil and gas
to the power stations is
easy. Gas-fired power
stations are very efficient.
A fossil-fuelled power
station can be built almost
anywhere, as long as you
can get large quantities of
fuel to it (Most need
access to large amounts of
water)
|
Disadvantages
|
Basically, the main
drawback of fossil fuels is
pollution. And the fact the
resources are finite and
often countries need
to import these from
elsewhere Burning any
fossil fuel produces carbon
dioxide, which contributes
to the "greenhouse
effect", warming the earth.
Burning coal produces
more carbon dioxide than
burning oil or gas. It also
produces sulphur dioxide,
a gas that contributes to
acid rain. Mining coal can
be difficult and dangerous.
Strip mining destroys large
areas of the landscape.
Coal-fired power stations
need huge amounts of
Is it
Renewable?
No
WIPRO TECHNOLOGIES
Energy Today and Tomorrow
fuel, which means trainloads of coal almost
constantly. In order to
cope with changing
demands for power, the
station needs reserves.
This means covering a
large area of countryside
next to the power station
with piles of
coal. Minimal compared to
land taken for renewables.
Nuclear Uranium
Chain reaction
inside nuclear
generates heat
which heats water
to produce steam.
Generated steam
turns turbines
which in turn
generators to
produce electricity
Nuclear power costs
about the same as coal, so
it's not expensive to make.
(Debatable) Does not
produce smoke or carbon
dioxide, so it does not
contribute to the
greenhouse effect.
Produces huge amounts of
energy from small
amounts of fuel. Produces
small amounts of waste
but very toxic. Nuclear
power is reliable.
(Debatable) Security threat
as material can be used for
bombs.
Although not much waste
is produced, it is very, very
dangerous. It must be
sealed up and buried for
many years to allow
the radioactivity to reliable
Nuclear power is reliable,
but a lot of money has to
be spent on safety - if it
does go wrong, a nuclear
accident can be a
major disaster. People are
increasingly
concerned about this - in
the 1990's nuclear power
was the fastest-growing
source of power in most of
the world. In 2005 it was
the second slowestgrowing.
No
Solar
1)Photovolt
aic cells
Convert light
directly into
electricity. In a
sunny climate, you
can get enough
power to run a
100W equivalent
light bulb from just
one square meter
of solar panel
Solar energy is free - it
needs no fuel and
produces no waste or
pollution. In sunny
countries, solar power can
be used where there is no
easy way to get electricity
to a remote place. Handy
for low-power uses such as
solar powered garden
lights and battery chargers
Yes
2) Solar
water
heating
Heat from sun is
used to heat water
by passing through
black panted pipes
which gets
hot under sun.
Doesn't work at night. Very
expensive to build solar
power stations. Solar cells
cost a great deal compared
to the amount of
electricity they'll produce
in their lifetime. Can be
unreliable unless you're in
a very sunny climate. No
backed up by the grid. The
world's biggest market is
Germany, not a “sunny”
country. However,
for these applications it's
definitely worthwhile.
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3)Solar
furnaces
Use a huge array of
mirrors to
concentrate
the sun's energy
into asmall space
and produce very
high
4) Solar
towers
The way it works is
you build a big
greenhouse, which
is warmed by the
sun. In the middle
of the greenhouse
you put a very tall
tower. The hot air
from the
greenhouse will
rise up this tower,
fast and can
drive turbines
along the way. This
could generate
significant amounts
of power, especially
in countries where
there is a lot of
sunshine and a lot
of room, such as
Australia.
5) Solar
Ponds
By maintaining
gradation of salt
concentration and
therefore density
from the water’s
surface to the
bottom of the
pound,
temperature
differences
between
cool water at
surface and
warmer water at
the bottom is
achieved.
This drives heat
engine to generate
electricity.
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Solar energy is free
without any pollution.
It requires a lot of land
area - land must be very
low cost. It requires a very
large supply of salt water.
WIPRO TECHNOLOGIES
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Wind
Wind farm,
Windmill
Because of uneven
heating of
atmosphere
due to sun energy
some patches
become warmer
than others. These
warm patches of air
raise, other air
blows in to replace
them - and we feel
a wind blowing.
We can use the
energy in the wind
by building
a tall tower, with a
large propeller on
the top. The wind
blows the propeller
round, which turns
a generator to
produce electricity.
Wind is free, wind farms
need no fuel.
Produces no waste or
greenhouse gases.
The land beneath can
usually still be used for
farming.
Wind farms can be tourist
attractions.
A good method of
supplying energy to
remote areas.
The wind is not always
predictable - some days
have no wind.
Suitable areas for wind
farms are often near the
coast, where land is
expensive. Some people
feel that covering the
landscape with these
towers is unsightly. Can kill
birds - migrating flocks
tend to like strong winds.
Can affect television
reception if you live
nearby. Can be noisy.
Wind generators have a
reputation for making a
constant, low, "swooshing"
noise day and night, which
can drive you nuts. An
entire wind farm makes
quite a racket! Having said
that, the small modern
wind generators used
on boats and caravans
make hardly any noise, and
as aerodynamic designs
have improved, modern
wind far are much quieter.
Yes
Ocean
Tidal
barrages
Works like a
hydroelectric
scheme, except
that the dam is
much bigger. A
huge dam (called a
"barrage") is
built across a river.
When the tide goes
in and out, the
water flows
through tunnels
in the dam. The
ebb and flow of the
tides can be used
to turn a turbine, or
it can be used to
push air through a
pipe, which then
turns a turbine.
Large lock gates,
like the ones used
on canals, allow
Once you've built it,
tidal power is free.
It produces no
greenhouse gases or
other waste.
It needs no fuel.
It produces electricity
reliably.
Not expensive to
maintain.
Tides are totally
predictable.
Offshore turbines and
vertical-axis turbines
are not ruinously
expensive to build and
do not have a large
environmental impact.
A barrage across an
estuary is very expensive
to build, and affects a very
wide area - the
environment is changed
for many miles upstream
and downstream. Many
birds rely on the tide
uncovering the mud flats
so that they can
feed. There are few
suitable
sites for tidal barrages.
Only provides power for
around 10 hours each day,
when the tide is actually
moving in or out.
Yes
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Water
Offshoretur
bines
Much like
submerged
windmills, but
driven by flowing
water rather than
air. They can be
installed in the sea
at places with high
tidal current
velocities, or in a
few places with fast
enough continuous
ocean currents.
Wave
At a wave power
station, the waves
arriving cause the
water in the
chamber to rise
and fall, which
means
that air is forced in
and out of the hole
in the top of the
chamber.
Turbine is turned
by the air rushing in
and out.
The turbine turns a
generator.
The energy is free - no fuel
needed, no waste
produced.
Not expensive to
operate and maintain.
Can produce a great deal
of energy.
Depends on the waves sometimes you'll get loads
of energy, sometimes
nothing.
Needs a suitable site,
where waves are
consistently strong.
Some designs are noisy.
Must be able to withstand
very rough weather.
Yes
Hydro electric
Hydro-electric
power is generated
from falling water.
A dam is built to
trap water, usually
in a valley where
there is an existing
lake.
Water is allowed to
flow through
tunnels in the dam,
to turn turbines
and thus drive
generators.
Once the dam is built,
the energy is virtually
free. No waste or pollution
produced. Much more
reliable than wind, solar
or wave power. Water
can be stored above the
dam ready to cope with
peaks in demand.
Hydro-electric power
stations can catch to
full power very quickly,
unlike other power
stations. Electricity can
be generated
constantly.
The dams are very
expensive to build.
However, many dams are
also used for flood control
or irrigation, so building
costs can be shared.
Building a large dam will
flood a very large area
upstream, causing
problems for animals that
used to live there. Finding
a suitable site can be
difficult - the impact on
residents and the
environment may be
unacceptable.
Yes
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Pumped
Storage
Reservoirs
Pumped storage
reservoirs aren't
really a means of
generating
electrical power.
They're a way of
storing energy
so that we can
release it
quickly when we
need it. Demand of
power changes
throughout
causing sudden
peak in demand. If
power station fails
to generate
excess power one
can expect power
cuts. Majority of
the power stations
take at least half an
hour to crank
them up to full
power. In that case
Pumped Storage
Reservoirs are
useful. Water is
pumped up to
the top reservoir at
night, when
demand for
power across the
country is low.
When there's a
sudden demand for
power, the
"headgates" (huge
taps) are opened,
and water rushes
down the tunnels
to drive the
turbines, which
drive the powerful
generators. The
water is then
collected in the
bottom of the
reservoir, ready to
be pumped back up
later. This can
produce up to
1000 MW in 10 to
12 seconds.
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Without some means of
storing energy for quick
release, we'd be in
trouble.
Little effect on the
landscape. No pollution
or waste. In countries
where rainfall is very
high this is very useful,
just need to store rain
water.
Expensive to build.
Once it's used, you can't
use it again until you've
pumped the water back
up. Good planning can get
around this problem.
NA because
this is not a
power station.
WIPRO TECHNOLOGIES
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Earth
Geothermal
The centre of the
Earth is around
6000 degrees
Celsius - hot
enough to melt
rock. Even a few
kilometers down,
the temperature
can be over 250
degrees Celsius.
Hot rocks
underground heat
water to produce
steam. Holes are
drilled down to hot
region and
water is pumped in.
Steam comes up, is
purified and used
to drive turbines,
which drive electric
generators. There
may be natural
"groundwater" in
the hot rocks
anyway, or we
may need to drill
more holes and
pump water down
to them.
Geothermal energy does
not produce any pollution,
and does not contribute to
the greenhouse effect.
The power stations do
not take up much room,
so there is not much
impact on the
environment.
No fuel is needed. Once
you've built a geothermal
power station, the energy
is almost free. It may need
a little energy to run a
pump, but this can be
taken from the energy
being generated.
The big problem is that
there are not many places
where you can build a
geothermal power
station.You need hot rocks
of a suitable type, at a
depth where we can drill
down to them.
The type of rock above is
also important, it must be
of a type that we can easily
drill through.
Sometimes a geothermal
site may "run out of
steam", perhaps for
decades. Hazardous gases
and minerals may come up
from underground, and
can be difficult to safely
dispose of.
Yes
Biomas Wood,
s
sugar cane,
other solid
waste,
corn stalks,
animal
waste
etc.
Consists of growing
plants or
agricultural
waste and even
garbage. Biogas is
high quality fuel
that is excellent for
combined heat and
power generating
(CHP) plants.It is
CO2–neutral and
lower on methane
emission fuel that
can be used as
substitute for fossil
fuel consumption.
It is said that
enough plants
grow every year to
meet world’s
energy needs
eight times over.
It makes sense to use
waste materials where
we can. The fuel tends to
be cheap. Less demand on
the earth's resources. If
waste management is
improved,this is very
good fuel for rural and
urban needs. Also
scientists believe that
even though burning
biomass releases CO2 in
air it is the Co2 absorbed
by plants in photosynthesis
and so net result is
atmospheric cycle is
maintained.
Collecting the waste in
sufficient quantities can be
difficult as current waste
management systems are
not well planned and
limited. We burn the fuel,
so it makes greenhouse
gases.
Some waste materials are
not available all year
round.
Yes
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Plants like
Seaweed, Lichen
grow all over the
world and can be
useful source as
Biomass. Animal
dung, strew from
crops, household
rubbish, sawdust
and wood waste
etc. can beburned
to produce
electricity.
Methane can
be produced from
rotting waste or
dung through slurry
tank and bacteria
treatment.
Methane is harmful
gas but when
burned to produce
heat or electricity
produces fewer
amounts of
emissions. The fuel
is burned, which
heats water into
steam, which
turns turbines,
which in turn drive
generators, just like
in a fossil-fuel
power station.
Air
Aeroelectric
power
This is still sort of
imagination stage
technology. Some
scientists think that
atmospheric
electricity can be
tapped to get
usable energy. In
concept several
hundred million
watts of power on
average is possible
from atmospheric.
The earth is very
good electrical
conductor. So is the
upper part of
atmosphere which
is known as
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If this technology
becomes reality then air is
the fuel so it is cheap and
available in ample.
Looking at the concept it
appears to be very
expensive technology.
Yes
WIPRO TECHNOLOGIES
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ionosphere.
Whereas lower
atmosphere does
not normally
conduct electricity,
so it acts as
electrical insulator.
When an insulator
is sandwiched
between two
conductors, that
insulator is known
as dielectric
resulting in a
capacitor capable
of storing energy as
an electric field.
This capacitor is
constantly charging
up in some regions
and discharging
in other regions
forming a global
circuit system. If
this energy gets
trapped it will be
called aero electric
power.
3.4 Hydrogen energy and Hydrogen economy – Future of energy
technology
Hydrogen is the lightest of the elements, as well as the most abundant one. Hydrogen is a hydrocarbon without
carbon. When it is combined with oxygen to produce heat or electricity, its main by-product is water. Hydrogen can be produced
by water electrolysis from clean electricity obtained by solar power, wind turbines, ocean waves and tides, geothermal, ocean
thermal, biomass etc. Once produced, it can be stored in pressurized vessel. This can be then transported and converted into
electricity using newly emerged technique called hydrogen fuel cell. Because of fuel cell and clean burning to produce electricity
and power prospects are bright for Hydrogen being used as car fuel and thus becoming the environment’s savior from the
menace of suffocating pollution. Fuel cell is an electrochemical producer of electricity in which continuous operation is achieved
by feeding fuel and an oxidizer to the cell and removing the reaction products.
Note that hydrogen is not a primary energy source like oil or coal, but rather a “clean” energy carrier like electricity, which can
be stored and converted into different forms of energy with the help of heliotechnology.
As hydrogen can be stored or transported it can be carried through natural gas pipelines already in existence. Another way is to
store hydrogen in liquid form and convert that into electricity at its destination. Additional hydrogen could be produced in
individual homes and commercial buildings using rooftop solar cells, and it is stored in a basement tank for later use or is piped
into local hydrogen distribution system. The fuel cell may one day be thought of as the silicon chip of hydrogen economy.
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Fuel cell works as follows:
The proton exchange membrane fuel cell (PEMFC) is one of the most promising fuel cell technologies. Pressurized hydrogen gas
(H2) entering the fuel cell on the anode side. This gas is forced through the catalyst by the pressure. When an H2 molecule
comes in contact with the platinum on the catalyst, it splits into two H+ ions and two electrons (e-). The electrons are conducted
through the anode, where they make their way through the external circuit (doing useful work such as turning lighting bulb) and
return to the cathode side of the fuel cell while the electrolyte proton exchange membrane which only conducts positively
charged ions, conducts H+ towards cathode while blocking electrons.
Meanwhile, on the cathode side of the fuel cell, oxygen gas (O2) is being forced through the catalyst, where it forms two oxygen
atoms. Each of these atoms has a strong negative charge. This negative charge attracts the two H+ ions through the membrane,
where they combine with an oxygen atom and two of the electrons from the external circuit to form a water molecule (H2O).
This reaction in a single fuel cell produces only about 0.7 volts. To get this voltage up to a reasonable level, many separate fuel
cells must be combined to form a fuel-cell stack.
Hydrogen economy
According to definition of hydrogen economy, a hydrogen economy is a hypothetical economy in which energy is stored and
transported as hydrogen (H2). Various hydrogen economy scenarios can be envisaged using hydrogen in a number of ways. A
common feature of these scenarios is using hydrogen as an energy carrier for mobile applications (vehicles, aircraft).
And the driving force for hydrogen economy is its efficiency over fossil fuels in terms of burning to produce electricity in cleaner
manner without emission of hazardous gases, without causing pollution and thus protecting environment from harmful effects
of co2 emission such as global warming.
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CO2, global warming is considered as adverse effects of current economy of petroleum. Another key consideration is availability
of hydrogen against non renewable fossil fuels. Hydrogen is available in abundant everywhere where as fossil fuels would die
eventually. Still it is very early days for this concept as hydrogen is expensive to produce and burn, however hydrogen fuel cell
which we discussed above is providing breakthrough in technology to enable hydrogen economy concept soon as a future.
In full picture of hydrogen economy, all primary sources of energy would produce hydrogen instead of getting used directly in
transportation vehicles. Produced hydrogen and hydrogen fuel cell would drive vehicles with slightly modified transmission
systems called next generation hydrogen internal combustion engines.
Fuel-cell Vehicle (FCV)–
FCV is essentially an Electric Vehicle (EV) that uses fuel cell in a place of or in addition to a storage battery. Below
diagram shows how it works.
Like vehicles, once fuel cell technology becomes low cost option, probably tiny versions of fuel cell would replace battery in
computer laptops, PDAs, mobile phones and many more battery driven applications in future years. Developed alternative
energy sources like wind, solar etc. would be used to producing hydrogen by water electrolysis of other means. As green
technologies would be used to produce hydrogen and hydrogen would be used in transportation overall greenhouse gas
emission would be tremendously low.
As alternative energy sources can be used to produce hydrogen, hydrogen production can be done in both centralized and
decentralized manner. Even people would be able to generate hydrogen at home storing in basement and then trade it or
distribute it or use it in cars thus directly participating in economy. Hydrogen can be pressurized and also converted in liquid
form to store and transported. Various storage and transport capabilities would emerge as a part of hydrogen economy. A new
supply and distribution backbone is requiring in new economy. Apart from powering fuel-cell cars hydrogen is considered to
have major impact in power generation.
That is because hydrogen could radically alter the economics of intermittent sources of green power. At the moment,
much wind power is wasted because the wind blows when the grid does not need, or cannot safely take, all that power. If that
wasted energy were instead stored as hydrogen (produced by using the electrical power to extract hydrogen from water), it
could later be converted back to electricity in a fuel cell, to be sold when needed what would be called "hydricity".
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Another benefit is that hydrogen could be sold to allow passing fuel-cell-powered electric cars to refill their tanks. In time, those
automobiles might themselves be plugged into the grid. Tim Vail of General Motors calculates that the power-generation
capacity trapped under the hoods of the new cars sold in America each year is greater than all the country's nuclear, coal and
gas power plants combined. Most cars are in use barely a tenth of the time. If even a few of them were plugged into the grid (in
a car park, say), a "virtual utility" could tap their generating power, getting them to convert hydrogen into electricity and selling
it on to the grid for a tidy profit during peak hours, when the grid approaches overload.
4. OVERCOMING THE BARRIERS TO VALUE REALIZATION
4.1 Other ways to preserve nature and improve energy
efficiency
Green Buildings and green architecture
New buildings use design and technology to reduce environmental impact, cut costs and provide better places to work. Most
people are not accustomed to think of large buildings as vast, energy-guzzling machines. But that is what they are. It is said that
in America, buildings account for 65% of electricity consumption (this looks too high), 36% of total energy use and 30% of
greenhouse-gas emissions. So making buildings more energy-efficient could have a significant impact on reducing greenhouse
gases. That is a key goal of the "green architecture" movement, which is changing the way buildings are designed, built and run.
In the case of a large office, for example, the combination of green design techniques and clever technology can not only reduce
energy consumption and environmental impact, but also reduce running costs, create a more pleasant working environment,
improve employees' health and productivity, reduce legal liability, and boost property values and rental returns.
Going green saves money by reducing long-term energy costs. Energy-saving techniques need not all be as exotic as installing
coated glass, computer-controlled blinds or photovoltaic cells. Builders are now insulating buildings more effectively, in some
cases using materials such as recycled paper and fabrics, including old, shredded jeans. It is more effective than traditional
insulation.
Green buildings can also have less obvious economic benefits. The use of natural daylight in office buildings, for example, as well
as reducing energy costs, seems to make workers more productive improving greater job satisfaction, less stress and fewer
illnesses.
The building industry is much disaggregated, so adoption patterns are really slow but again IT can help in this area
by developing improved planning and simulating software to indicate green performance and cost savings due to
that taking into account its shape, heating and cooling systems, orientation to the sun and geographic location.
4.2 Energy Efficiency and CO2 Emissions
Organizations are thinking how the same output can be achieved with less amount of energy and also reduced CO2
emissions. Approximately one ton of CO2 emissions occupies 556 m3 of space at 25 0c and standard pressure.
Improving energy efficiency is a huge saving. To improve energy efficiency organizations are looking at how
technology can be improved to achieve same amount of work with less amount of energy. At the same time it is
important to ensure CO2 emissions are kept under control.
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Organizations are thinking how the same output can be achieved with less amount of energy and also reduced Co2 emissions.
Approximately one ton of CO2 emissions occupies 556 m3 of space at 25 0c and standard pressure. Improving energy efficiency
is a huge saving. To improve energy efficiency organizations are looking at how technology can be improved to achieve same
amount of work with less amount of energy. At the same time it is important to ensure CO2 emissions are kept under control.
What each of us can do to improve Energy Efficiency and reduce CO2 EMISSIONS?
There are number of things which we can do in our day to day life to help reduce CO2 emissions and improve nature.
Travel, transport and foodThink carefully about your travel needs. Use public transportation whenever practical. Consider carpooling. Take care of your car
to ensure its efficient running. In particular check tire pressures and engine lubrication. Remove roof racks or boxes when not
required, as these can reduce vehicle efficiency by over 10%.
Use Video/Audio conferencing, tools like live meeting wherever possible instead of flying and avoid traveling to reduce
transportation needs, reduce fuel consumption, and reduce carbon emissions.
Improve public transport wherever possible. Reliable local train systems, local bus transport helps a lot. Improving local
transport introduce congestion charges, pollution charges, parking charges for private cars and discourage them to use private
transport and encourage them to use public transport. This will help reduce more vehicles on road at a given time and achieve
reduction in carbon emissions, healthier environmental conditions.
Encourage local urban farms and cottages industries to produce and sale fresh milk, cheese, butter, milk products,
fresh vegetables, fresh meat in near by cities, reduce packaged food products. This will help in reducing
transportation needs, reduction in fuel consumption and thus reduction in carbon emissions.
Also this is a healthy solution.
Corporate offices
In offices energy efficiency can be largely improved by reducing paper printing, improving capacity of utilization of space,
implementing effective power management solutions thinking about energy efficient infrastructure etc.
Encourage flexible timings and work from home options wherever possible. Due to extensive timings like more than 9 hours of
compulsory attendance in office employees tend to rush in traffic both ways and prefer private transport, also driving under
stress increase the speed and thus fuel consumption and more number of vehicles in rush hour. Options like work from home or
reduction in compulsory attendance from 9 hours to 8, introducing flexible timings can reduce stress and all after effects under
stress affecting green environment. Encourage car pooling options. Preserving natural reserve can help achieve natural balance.
Education
Provide early education in schools on carbon footprint, global warming, introduce various environmental issues in study.
Develop inclination towards various energy sources through simple scientific experiments involving play and fun.
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National policies
At national level, encourage production of alternative energy resources other than fossil fuels. Come up with energy policy to
reduce an amount of carbon emission by adopting renewables in various areas. Encourage house holds to participate in energy
policy, improve electricity grid system across country to reuse surplus energy produced across. E.g. if industry or households are
producing their own energy and they give surplus back to grid then provide discount on their electricity bill. This will help in
reducing dependency on fossil fuels for electricity generation and thus can help reducing carbon footprint.
Household
There are various proactive steps we can take to reduce carbon footprint at household. Good thermal insulation and draughtproofing are some of the most cost-effective means of reducing energy costs and carbon emissions. Check out the quality of
insulation in lofts and cavity walls. Check for gaps around doors and windows.
Most home energy is used for heating and cooling. Cost savings and CO2 reductions of over 10% can be made simply by
adjusting heating controls to reduce overheating and using natural ventilation more effectively.
Use gas, wood, LPG instead of electricity, if possible, for heating or air conditioning systems. Reduce heat loss or AC loss by
improving insulation, double glazing for windows, draft proofing around external doors and windows, use energy saving light
bulbs, efficient appliances. Efficient 'fluorescent' light bulbs use less than half the energy to produce the same amount of light
than traditional 'incandescent' bulbs. The US Department of Energy has estimated that over 400 million tons of CO2 emissions
per year could be avoided by switching to efficient lighting in the US alone. Switch off lights when not required, do not leave
equipment on stand by, separate household waste in order to help recycling. Recycling materials can help to reduce carbon
emissions by avoiding the need to extract and refine new raw materials. Recycling organic materials such as paper and
cardboard can avoid emissions of methane (a powerful greenhouse gas) from landfill sites.
Adjusted temperature control for AC, freeze. New small-scale wind turbines are becoming available for household electricity
generation. Use solar water heater, gas geyser etc., reduce number of vehicles and usage of vehicles, e.g. use cycle for 1 to 2km
travel and use motor cycle up to 5 km. See if public transport can be used.
Think about energy in the kitchen. Take care not to over-fill pans and kettles. Use the correct size of ring or burner
for your pan. Keep refrigerators ice-free.
4.3 Green Energy collaborative and service IT solutions
Framework (GEIF)
Various portals and web services are providing information about hydrogen economy, green technologies, and energy efficiency.
However there is a need of framework to provide collaborative internet solution which can act as Green Energy Framework as a
one stop information and knowledge management in this area.
Following are the key futures of Green Energy IT Framework (GEIF)
All below mentioned issues are so complex that there is a need to bind the information together and use it for optimum results
1) Database and knowledge management
i. Having in detail database of all developed, under development and conceptual alternative energy sources.
ii. Integrated services and information about various suitable sites around globe for each and every type of energy source.
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1. Database of suitable markets, all the geographical data, benefits, existing running projects, completed projects, capacity, new
technologies, new sources.
iii. Integrated with real time news and feed services like RSS to provide up to date information on happenings in this area
iv. Energy calculator with cost comparison techniques, carbon emission calculations. projects, completed projects, capacity, new
technologies, new sources.
iii. Integrated with real time news and feed services like RSS to provide up to date information on happenings in this area
iv. Energy calculator with cost comparison techniques, carbon emission calculations.
2) Simulations and plant development solutions – Using energy database ability to choose ideal combination of energy source,
technology, location of site etc. as per the required capacity.
3) Government regulations, policies – Ability to provide up to date information about government regulations, policies,
integrated with consultancy services in this area.
4) Covering Hydrogen economy – Supply chain solutions to integrate small scale networking and distribution, fuel cell
manufacturing companies with B2B and B2C customizable solutions.
5) Health and Safety services integrated with greenhouse monitoring and incident registering with helpdesk solutions on ITIL
kind of best practices.
6) Portal to address supply and demand monitoring and solutions integrated with existing market techniques.
7) Micropower and Microgrid - Solutions to enable utility sector to transform existing grid technology into smarter digital grid
technologies and enable them to integrate with supply chain for Micropower and Microgrid concepts.
8) Energy calculator and carbon footprint calculator.
9) Ability to provide and/or integrate with E-commerce and trading services.
10) Green building and architecture – Ability to integrate with services and software solutions which can help in green building
and architecture.
Building the energy distribution Internet
Electricity generated through fossil fuels or alternative energy sources is transmitted and distributed through very
large power grid systems. In recent past incidents of bigger blackouts are observed frequently causing major disruptions in
economy all around world.
There is increasing emphasis put on converting these grid systems in smart digital systems. Multiple advantages would be
1) Smarter distribution.
2) Lower and smaller duration power cuts.
3) Reduction in power loss over transmission.
4) Reduction in illegal staling of power.
Typical technologies are being developed to transform grid working in smarter way. Following four aspects are
researched for smart grid systems.
1) Ability to measure the behavior of the grid in real time.
2) Ways to use measured behavior to control flow of power fast enough to avoid blackouts.
3) Improving grid system using online real time monitoring systems and services to support and maintain at very high SLAs.
4) Improving ways to produce and store power near consumer to reduce need to send so much power at the first instance.
5) Smarter distribution.
6) Lower and smaller duration power cuts.
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7) Reduction in power loss over transmission.
8) Reduction in illegal staling of power.
It is suggested that more and bigger the power grids more black outs are there and so building "micropower" – a large number
of small power sources located near to end-users, rather than a small number of large sources located far away. Another
concept which is emerging "microgrids" made up of all sorts of distributed generators, including fuel cells (which combine
hydrogen and oxygen to produce electricity cleanly), wind and solar power. Power generated from “micropower” would be
aggregated by "Virtual utilities" in real time and would be sold to the grid.
Agent oriented business engineering can be used for energy Internet (AOBE)
Intelligent business agents are the next higher level of abstraction in model-based solutions to business problems. By
building on the distributed object foundation, intelligent agent technology can help bridge the remaining gap between flexible
design and useable applications. Intelligent agents support a natural merging of object orientation and knowledge-based
technologies. Intelligent agents can facilitate the incorporation of reasoning capabilities within the application logic (e.g.
encapsulation of business rules within agents or modelled organizations). They permit the inclusion of learning and self
improvement capabilities at both infrastructure (adaptive routing) and application (adaptive user interfaces) levels.
To achieve common goals agents need coordination. Effective coordination requires cooperation, which in turn can be achieved
through communication and organization. In our case following are the common goals,
Smarter distribution
Lower and smaller duration power cuts
Reduction in power loss over transmission
Reduction in illegal stealing of power
Agent technology can address the goals in real time as each agent have different knowledge, capabilities, reliability, resources,
responsibilities or authority. Different agents may perceive the same event or object differently. Agents may specialize in or
focus on different problems and sub-problems. Different agents can respond to the same service request differently without the
requester’s knowledge about such differences. Intelligent agents communicate asynchronously by message passing, using a
variety of rich interaction protocols (e.g. negotiation and conflict resolution protocols). Intelligent agents can be autonomous,
can discuss about themselves and can be mobile. Intelligent agents can actively and dynamically seek to cooperate to solve
problems.
This concept is new and needs lot of research.
CONCLUSION
As we discussed, increased use of energy for various purposes is the basis of today’s economy growth. Energy is primarily
produced by consuming fossil fuels like oil and that is causing environmental issues, global warming etc. Today’s fast growing
economy is really making impact on earth’s environment.
It is a big challenge to achieve economic growth by preserving nature. Preserving nature is a global responsibility. Energy sector
is looking forward to develop technologies around alternative, clean and renewable energy sources for transportation and
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Governments are showing higher commitment towards developing green technologies. Sun and wind technologies are growing
fast and all major energy players are investing into alternative technologies. Government is investing for research in all possible
ways to generate clean energy and ease oil pressure. Organizations are keen to improve energy efficiency and implement strict
process measurements to help in improving energy efficiency.
Hydrogen seems to be promising with hydrogen fuel cell as means of producing energy from hydrogen and there
are speculations about hydrogen economy to replace oil economy in coming years. But till then we need to move
forward positively in order to sustain, improve energy efficiency and preserve nature. IT has important role to play
as an enabler for achieving green energy goals.
ACRONYMS
GDP - gross domestic product
GNP - gross national product
OPEC - Organization of Petroleum Exporting Countries
EIA
- Energy Information Administration
E&P - Exploration and Production
NPV - Net Present Value
PV
- Photo Voltic
UCZ - Upper Convective Zone
LCZ Lower Convective Zone
NCZ Non Convective Zone
GEIF Green Energy IT Framework
REFERENCES
Further reading1. The Timeless Energy of the Sun - Madanjeet Singh
2. Energy Matters – Rosemary Hector
3. The Future of Technology – Tom Standage
4. Alternative Energy Demystified – Stan Gibilisco
5. Global warming: the science of climate Change – Frances Drake
6. Information Congestion – Satyajeet D Pangu, Anil Mirchandani, 2003 IEEE
Web1. http://www.bp.com
2. http://en.wikipedia.org
3. http://www.eia.doe.gov/kids/energyfacts/sources/renewable/geothermal.html
4. http://findarticles.com/p/articles/mi_qn4159/is_/ai_n21128648
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ACKNOWLEDGEMENTS
Initial draft of this paper was shown to Mark Hammonds (C&EA) and Jeremy Hine (ADAM) from BP. My sincere thanks to Mark
and Jeremy, who supported my passion about Green Energy, encouraged me to learn more about Green Energy and provided
valuable inputs for in this paper.
I would also like to thank Bipin Paracha, Practice Head IT Operations and Services Consulting from Wipro Consulting Services for
his encouragement and suggestions.
ABOUT THE AUTHOR
Satyajeet D Pangu
Consultant, IT Operations and Services Consulting, Wipro Consulting Services
Satyajeet Pangu is experienced IT Manager with around 10 years of contribution in IT. Process and Management experience
using ITIL and PMI Project Management methodologies in handling IT Projects, operations, support and consulting.
He has worked as Consultant, onshore Service Manager, Transition Manager and Offshore Project Manager. He is PMP certified
and Certified ITIL foundation V2.
His areas of interest are Green Energy, Business Integration, Service Management and Process Automation.
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ABOUT WIPRO TECHNOLOGIES
Wipro is the first PCMM Level 5 and SEI CMMi Level 5 certified IT Services Company globally. Wipro provides comprehensive IT
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Wipro's unique value proposition is further delivered through our pioneering Offshore Outsourcing Model and stringent Quality
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The Wipro Council for Industry Research comprising of domain and technology experts from the organization aims to address
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For more information please visit www.wipro.com/industryresearch
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