December 5, 2006

 

American Energy Security Study Implementation Plan Underway

  Kentucky, Peabody Energy, Rentech, Inc. First to Step Up
          We are pleased to announce that the Commonwealth of Kentucky has once again taken the lead with funding for the American Energy Security (AES) initiative, making another commitment this month for $100,000 through its Kentucky Office of Energy Policy.  AES has entered into the “Implementation Phase,” and is raising an additional $750,000 from industry and state, national and local government sponsors to fund our ongoing national program (see story below). 

 

  

          “The Bluegrass State continues to show national leadership for domestic alternative liquid fuels production from our vast resources of coal, biomass, oil shale, and unconventional oil & gas resources,” notes Ken Nemeth, the AES Chairman.  Mr. Nemeth serves as the Executive Director and Secretary of the Southern States Energy Board (SSEB), a founding member and manager of the American Energy Security program.

          “I would like to personally thank Governor Ernie Fletcher and his staff at the Kentucky Office of Energy Policy for their continuing support” Nemeth remarked upon hearing the news.  “Their leadership role in the imperative to eliminate America’s dependence on foreign oil is truly appreciated.”

          Peabody Energy and Rentech, Inc. were quick to follow with funding commitments.  These companies have been principal supporters through the Study phase of the AES program over the past year.  Peabody Energy is the largest private-sector coal company in the world (NYSE: BTU <> www.PeabodyEnergy.com).  Rentech, Inc. is one of the world's leading developers of Fischer-Tropsch coal-to-liquids and gas-to-liquids technologies (AMEX: RTK <> www.RentechInc.com).

          The founding members of the study, EnviRes LLC and the Southern States Energy Board, continue to back the AES program with ongoing monthly financial support.  EnviRes LLC is commercializing a molten iron-based gasification technology trademarked HyMelt® that it believes will dramatically reduce the capital and operating costs to gasify coal, biomass, and other carbon-bearing feedstocks.

          AES also has received Implementation Phase funding pledges from several other states.  “With these pledges and the commitments from Kentucky, Peabody Energy and Rentech, we believe we are already about half way to our $750,000 goal,” according to Ken Nemeth.  AES staff members have entered into discussions with states across America.  A broad coalition of industry support also is being sought.  Targeted commercial stakeholders include: large fuel users such as the railroads, truckers, and the airlines; the agricultural industry; coal and oil & gas companies; oil shale project developers; chemical companies; auto makers; utilities; and others.

          Thanks again to Kentucky, Peabody Energy, Rentech, EnviRes and the SSEB for your generous leadership contributions.  For more details about our planned activities over the next twelve month, please see the following article entitled “American Energy Security Study Implementation.”  For questions, comments, and to make a contribution, contact Jim Mayer at 717-359-0014.

          An executive summary and details of the AES Implementation Plan and funding proposal are available on our website at:  www.americanenergysecurity.org/ImplementationPlan.html

 

American Energy Security Study Implementation

 

 On July 17, 2006, the Southern States Energy Board released the American Energy Security Study, a groundbreaking national initiative for American energy security and independence.  The Study, and background information, can be downloaded from the AES website located at the address:  www.AmericanEnergySecurity.org.  The SSEB is an interstate compact organization comprised of 16 states and two territories, whose members are governors, state legislators, and a federal representative appointed by the U.S. President.

          To date sponsors of the American Energy Security initiative have included:  the Department of Defense-U.S. Army National Automotive Center, the Southern States Energy Board, the Association of American Railroads, the Commonwealth of Kentucky, Rentech, Inc., EnviRes LLC, Peabody Energy, and the National Mining Association. 

          Additional non-monetary support has been provided by the U.S. Department of Energy-Naval Petroleum and Oil Shale Reserves.  The Study has been guided by an expert executive panel comprised of representatives from the Southern States Energy Board, the U.S. Department of Energy-Naval Petroleum and Oil Shale Reserves, Peabody Energy, the Army National Automotive Center, EnviRes LLC, the U.S. Department of Defense, the University of Kentucky, Mitretek Systems, Management Information Services, Inc., General*Bioenergy, Augusta Systems, and A. J. Mayer International.

          The AES report presents a plan for America to establish energy security and independence through the production of alternative transportation fuels from our vast domestic resources such as coal, biomass, and oil shale.  The plan also emphasizes the need and opportunity for domestic carbon dioxide enhanced oil recovery and sequestration programs, increased voluntary transportation fuel efficiency, and sensible energy conservation.  The following figure presents a summary of our plan in a graphic format.
Figure 1:  The Path to U.S. Energy Security and Independence

Source:  Southern States Energy Board and Management Information Services, Inc., 2006

 

          Our Study is unique, embracing a comprehensive resource and technology platform and setting bold objectives for America.  This leadership initiative (1) establishes an ambitious goal for the Nation--energy independence; (2) broadly frames a plan for success; (3) models the benefits of achievement and the costs of complacent dependence on foreign energy sources and imports; and (4) formulates a package of specific federal, state, and local recommendations, including legislation, to support the plan.  While the plan is very ambitious, the AES team is confident that the stated objectives can be accomplished, assuming a high level of national will can be forged through bold leadership.
          Study findings are conclusive:  embarking on a national mission to achieve energy security and move toward liquid fuels independence will reduce risk and lower oil prices and oil price volatility.  It also will facilitate an industrial boom, create millions of jobs, foster new technology, enhance economic growth, reduce the trade and budget deficits, ensure affordable energy for citizens and strategic fuels for the military, and establish a reliable domestic energy base, which will position U.S. industries to be more globally competitive.
          SSEB is seeking additional funding partners to implement the recommendations of the American Energy Security Study over the next year.  Our goal is to raise a minimum of $750,000.  This will allow us to continue to play a leadership role in helping to catalyze the rapid commercialization and growth of a multi-resource based domestic alternative liquid fuels industry.  With pledges from a number of state and business supporters, we believe that we are already about halfway to full funding.
          Our primary implementation goals are (1) to establish better awareness of America’s potential to produce its own liquid transportation fuels, (2) to help elevate the level of National Will to become energy secure and ultimately independent, and (3) to shape and encourage legislation on a national and state level that will create a fertile environment for rapid growth.  This will be accomplished through a comprehensive program that emphasizes:

  • Extensive education and outreach programs to engage stakeholders and potential advocates, including industry, political leadership, and the American people

  • Expanding the understanding of the highly compelling economic and environmental benefits of the AES plan

  • Shaping and securing comprehensive enabling Federal policy initiatives, including legislation

  • Shaping and securing comprehensive enabling state and local policy initiatives, including legislation

          The principal elements of the AES Implementation Phase are outlined below and described in more detail in the attached plan.

  • Federal Legislation Shaping and Implementation

  • House and Senate Hearings on the AES Study and Initiative

  • National Educational Research Survey on Liquid Fuels Import Dependence

  • Oil Price Insurance Corporation Shaping, Development and Legislative Implementation

  • State Legislation and Incentives Assessment, Shaping, Model Legislation Development, and Implementation

  • Organize and Manage a State and Industry Leaders Nation-wide AES Summit

  • Financial Community Educational Outreach and Briefings

  • Expanded Environmental Analysis of the AES Plan

  • Expanded Coal/Biomass Gasification/FT Analysis

  • Development of Targeted List Databases

  • National AES Education Program Implemented Through Media Outreach

  • Share Data with DOE EIA to Facilitate Analysis via the Benchmark DOE NEMS    Forecasting Model

  • Share data with Argonne National Lab, and Facilitate Analysis Using the GREET Model

  • Alternative Liquid Fuels Plant Financing Analysis and Strategy

  • Alternative Liquids Fuels Financial Directory Published

  • Educational American Energy Security Documentary Film or Film Series Produced and Promoted

  • Online Project Marketplace Developed

          This Nation must develop a secure portfolio of domestic sources of alternative liquid transportation fuels in order to reduce and ultimately eliminate our costly and risky dependence on foreign oil.  We are asking for your financial contribution toward the Implementation Phase of the American Energy Security initiative.  Become a co-sponsor and help America reduce its dependence on imported oil and provide for our economic future.
          The Southern States Energy Board is asking for support from a broad base of private and government organizations.  Participants will benefit from both national exposure and rich networking opportunities.  Syndicating the cost of the AES program across a multiple co-sponsors will allow your investment to realize substantially more benefit than you could achieve on your own.  You will also benefit from SSEB’s unbiased reputation and its access to political and industry leadership at the highest levels.  SSEB and its partners encourage you to forward this newsletter to business and government associates who may have an interest in participating.  Thank you for your consideration.

AES NATIONAL SUMMIT IN WASHINGTON, D.C.

          We invite you to attend the 2007 American Energy Security National Summit, to be held at the Hilton Alexandria Mark Center near Washington D.C. on April 16, 17 and 18.  Please mark you calendars.  More information will be forthcoming and will be posted on our website at:  www.AmericanEnergySecurity.org.  Subscribe to our email list from the website to be sure you do not miss important information. 
The purpose of this high-level Summit is to discuss the findings of the American Energy Security Study and plan a road map for implementation of the tenets and recommendations suggested for Congress and for state and local governments.  This initiative will be led by Governor Joe Manchin of West Virginia (Chairman of the Southern States Energy Board) and State Senator John Watkins of Virginia (Vice Chairman of the Southern States Energy Board).

          The Summit will highlight the need for safety, security, reliability, and stability in America’s liquid transportation fuels sector and the need for energy independence from current, unreliable suppliers of foreign oil.  The findings of the American Energy Security Study will be discussed in detail.  This will feature the historic opportunities to stimulate American economic growth and industrial revitalization through the aggressive ramp-up of domestic alternative transportation fuel production.

          Federal, state, industry, and academic leaders will discuss their roles in charting a new course for the Nation.  The focus will be on federal, state, and local legislation needed to jump start new liquid transportation fuels industries; America’s vast alternative fuels resource base; the role of technology in the production of ultra-clean fuels from near-zero emissions plants; and how the necessary level of national will can be developed through leadership and education.

          A number of short courses will also be offered in important topics such as gasification and Fischer-Tropsch synthesis, biomass gasification and pyrolysis, and the productive use and sequestration of carbon dioxide to enhance the recovery of oil and gas and to accelerate the production of bio-energy crops.

          The program will build a secure bridge to energy independence and a sustainable energy future.

          You can help by forwarding this newsletter to your associates, referring to it in your company newsletter, etc.  Anyone can subscribe to the AES Newsletter from the home page of our website at www.AmericanEnergySecurity.org.  Thank you.

Become a co-sponsor: click here for details.