Jeff,

Your comments and questions lead me to posit something I call "energy banking." Here is a hypothetical example: Suppose PV currently has an EROEI of 1:1 and has a 50 useful lifespan. In other words, the PV output over its lifetime will equal the input energy from when it is first put into service. It is likely that the EROEI of the materials used to build the system will drop over the years. Therefore, the EROEI of the PV system will increase with passing time and provide "interest" on the initially invested energy.

I'm beginning to feel that maybe we should discount EROEI to some extent for sustainable energy systems with long lifetimes.

Todd

I agree. There is a difference between fixed and marginal EROI and also the timing of the flows. For wind power, high EROI would tend to favor the PURCHASERS of the wind, because it has a long duration, for biofuels, any positive EROI (we know its not high) will go to the seller, especially dueto subsidies, because the payback is on a much shorter time frame, etc. As energy prices go up, those who have invested in long duration renewable flows will be better off. In any case, my opinion is EROI is the second step. It will be best used only after we figure out sustainable scale. Ends before means.

Todd-

I think that applying banking and finance principles to energy accounting is a good idea--provided that EROEI in general is sufficiently greater than 1. As oil, coal, natural gas, etc. begin to decline in EROEI, the comparative return on existing renewable (wind, PV, etc.) infrastructure will improve. My concern (as I wrote about here) is that a certain amount of surplus energy is needed to build-out a renewable energy infrastructure. Energy for PV and wind, for example, must be expended up front before any energy is returned (same true of oil & gas, but to a different extent). I think that it takes a huge (and unacceptable) leap of faith to assume that, after we've burned off the high-EROEI fossil fuel, there will be either A) sufficient energy to build out a fully renewable energy infrastructure with lower-EROEI fossil or renewable sources, or B) that the actual EROEI of renewables like PV and wind, after accounting for the energy required to produce their full supporting infrastructure, will actually be greater than 1.

Declining production and EROEI of "primary energy sources" like coal, oil, and gas, will decrease the amount of surplus energy available to build out new renewables while simultaneously maintaining the energy required by the existing economy. Will this surplus be large enough to build out enough renewable generation capacity to make up for declines in fossil fuels, once they set in? I just don't think we have enough information, or a sufficient methodology, to answer this question at the moment. But, ultimately, I think it is the question that all EROEI analysis leads to...

Nate or Dr. Hall can correct me here, but I think this issue is where the power of Input-Output table analysis would come in. As the energy required to mine for coal increased, that would show up as increasing energy intensity in that sector of the economy. Other sectors that used coal would likewise see a boost in energy intensity per $ of steel and other sectors.

The question in my mind (you may be saying this as well, not sure) is predicting how large the repercussions will be in the future. I think we have adequate (?) theory to account for a present increase in the energy input in a given sector, but no theory to help us understand to what degree present increases in the one part of the IO table will impact another part of the table, and how long the time-lag will be. By way of example, think of our highway infrastructure, which was constructed largely on oil and coal energy that has experienced significant EROEI declines over recent years. We can't just input the new intensity of coal and oil because that highway infrastructure will last for many years--how, and over what period do we amortize the energy for that replacement? It seems workable if all we had to do was amortize over a known replacement period for the infrastructure, but because we're trying to continually incorporate a moving target (the EROEI of oil & coal) that is moving in an unknown way in the future, I don't know how to proceed...

See the response to my post below.

http://www.theoildrum.com/node/3810#comment-328100

I don't know if my numbers are right or not. But using my weird methods I also came up with 5:1 as probably the real lower bound EROI. This is mentioned in the key post.

Also in my post I think our current EROI is actually 10:1 not 20:1 my justification is simple. We where at 20:1 about 2002 and prices have increased five fold so that suggests a real EROI of 20/4 == 5:1 right now. Taking into account growth etc 10:1 makes more sense as a high estimate.

If you somewhat agree with that argument then EROI has dropped by 50% in five years with steady oil production. It makes sense that real EROI will probably drop faster once production begins to decline so instead of being at 5:1 if we are not there now in five years we probably will be less.

Of course we are not going to make the massive investments needed to keep net energy levels up so the net energy levels should be and probably are already dropping probably in line with the EROI drop. This would mean that say if EROI goes from 10:1 to 5:1 and absolute production drops by 50% then net return would be say 25% or a 75% drop.

My gut feeling has always been that if we where going to make a smooth transition from oil to alternative energy we would have had to start in the 1970's. Even if my numbers are off I don't think they are off by orders of magnitude. So I simply don't think its possible to make a smooth transition.

Considering we need to invest a significant amount of excess energy into alternatives to speed the transition say 10-25% of todays excess. You can see that when we reach the point of having only 25% of todays excess energy the rate we could make the change drops dramatically. Also of course as current energy extraction process begin to take up more and more of our economic activity they are in direct competition with alternatives. Both are chasing the same shrinking pie. I'd hazard that current approaches would generally win.

Now I'm not saying we can't make such a transition just that from what I can tell it would already be extremely painful if we made it a top priority right now and it becomes increasingly more painful as we wait. And probably worse it seems the time it takes to deploy the amount of alternatives to bring us back to our current free energy levels quickly stretches out to centuries as the ability to expand alternative energy sources contracts to a small percentage of a lot lower net energy level.

Finally as far as our current infrastructure goes very little of it is terribly useful for building out alternatives. Roads and oil based transport are not all that useful over the longer term. Rail would be but in many places it would itself need to be built out. The highway infrastructure in the US is actually in horrible shape and close to collapse and our secondary roads basically need to be rebuilt completely every 10-20 years. We have been abusing this oil investment for a very long time. Given the huge amount of deferred maintenance in roads at best they offer no total support at worst they are and additional place we must invest to simply get our rail expanded. Cars/Trucks etc also have limited lifespans generally less than 20 years again its dubious how much of this can be treated as a stable investment and how much of it would be lost in even 20 years.

Overall after all the money we have spent in my opinion our current infrastructure is only useful for about 20 years of support for investment into alternatives at best. After that we have to have new rail infrastructure in plain to continue development.

In any case pain or not we need to start transitioning off oil yesterday. If we wait to long considering the way EROI seems to work only a tiny fraction of todays population will be able to create high tech sustainable lifestyles and the rate they can expand will be painfully slow.

I happen to think we will end up with these islands of technology in a sea of misery but I'm not the most optimistic guy on the planet.

Ok, now I see what you are doing. The energy needed to refine silicon (say) does not change. But the energy to create the energy to refine the silicon goes up. And this should work for all materials.

What is the damage to society from this change? Hmmm. First pass, I would try to bound the problem to see how much trouble it could cause. So take an extreme example and push the drop from 100:1 to 10:1.

So suppose I have a 100:1 energy source powering my society. I calculate the EROI of some alternative source and it comes out 10:1 (Estimate A). My wonderful power source now declines to 10:1. What will the EROI of my alternative power source decline to? (Estimate B).

Here is my approximation. I am going to change the coding slightly to make it clearer (I would appreciate others to check the math). Society starts with a 100:1 power source that declines to 100:10 (recoded 10:1).

We want to know the impact on another EROI calculation that also has a 100:10 ratio. Ok. Estimate A would include a tiny 1% hidden cost that is the energy cost to get the power which = 10*0.01= .1 units energy. For Estimate B that would increase by 10 times. 10*0.1 = 1

So for Estimate B our alternative energy source would really end up being 100:11. That is not much change. But dropping below 10 would start to get painful. It should be possible to calculate directly this way, and put in a corrective factor. Anyone have a different view?

We can't just input the new intensity of coal and oil because that highway infrastructure will last for many years--how, and over what period do we amortize the energy for that replacement?

I wonder if this isn't addressed better as a time component of Net Energy. We need a "velocity" of energy as it moves through our economy. Energy that has become embedded in long life items is still flowing through the economy, just slower than fuels. An Embodied Net Energy concept.

Jeff,

I read your current post on your site (I disagree about the recession part) and it sounds like we sort of agree. We do have surplus energy now. As a surrogate, I would point to where it takes 10cal of input energy for 1cal of output/body energy.

Retuning to my "banking" of energy: I am unaware of any part of society that cares about EROEI. I was a process development and plant manager in the chemical industry and we didn't care about energy use as long as the cost could be passed on to other manufacturers using our products. My group developed several innovative ways to reduce reaction times...in one case from 1 1/2 hours to 45 minute and another from 30+ hours to 8 hours. The irony is that I, as the chief honcho, seemed to be the only one who could do this stuff. I want to put this in context - I was never a chemical reactor operator, heck I started as a research chemist and moved into chem engineering. I would go out to my facility or the production plant in my coat and tie (naturally with hard hat and safety goggles), tell them to keep dumping in catalyst until the pressure began to surge, tell them to put on full cooling and go back to my office. Did anything come of this? Nope. I was the only person out of several hundred employees who could do it. And, I'm not kidding here - production turned it all down cold because "it took too much attention."

My point is that, today, energy only matters in a financial/profit context. There is lots of "surplus" energy that can be captured. And, I return to arguing that it makes more sense to invest this energy/money in energy that has a currently slightly negative or break even EROEI but is sustainable in the long term - with an ultimate positive return.

Todd

Todd

Alan and I talked about something along these lines a long time ago. Basically, if the oil was going to be used up anyway (Jevons's paradox) then how can we use it in a way that pays back for centuries?

I said road beds (Roman road beds have been in use "forever") and he said rail tunnels. Rail tunnels are expensive to cut, but then the trains don't have to climb or divert so they pay back handsomely.

EROEI over time is a great point. Which leads me to another thing I noticed in the article:

The EROEI numbers for CSP are ancient -- 1986??? Can't you find newer numbers? In 1986 CSP plants were fairly new and EROEI over time has been on the increase for CSP, thermal and solar towers.

I'm looking for more recent CSP numbers but I found the numbers on the ASPO site to be, in some cases, more favorable for renewables than the ones posted in the above.

Hydropower 11.2 (33.6)
Nuclear (light-water reactor) 4.0 (12.0)
Solar
Power satellite 2.0 (6.0)
Power tower 4.2 (12.6)
Photovoltaics 1.7 (5.1) to 10.0 (30.0)
Photovoltaics Thin-Film 7 (21) to 40 (120)
Solar Thermal to find
Wind 80 (240)
Geothermal
Liquid dominated 4.0 (12.0)
Hot dry rock 1.9 (5.7) to 13.0 (39.0)
Table Notes: Estimates of energy return on investment (EROI) ratios for some existing and proposed fuel supply technologies. Numbers in parentheses for electricity generation include a quality factor based on a heat rate of 2,646 kcal/kWh (10,493 BTUs/kWh) (source: http://energycrisis.com/aspo-usa/2005/).

A solar tower is a kind of CSP and here it is listed as a 4.2 EROI. It also adds a break out for thin film photovoltaics which the original post has failed to mention.

One thing I did find is that the energy payback time for CSP is 5 months to one year depending on the system:

"The energy balance is outstanding: the payback period for the energy expended in production of the components is 5 months. The materials used (concrete, steel, glass) can be recycled. The specific land use is quite low at 2 hectacres per MWel. The property needed has a very low value. There is no social or ecological problems associated with its use. There are no hidden social costs in the form of environmental pollution, additional social services, or resulting economic effects. Solar thermal plants use materials that are available and affordable worldwide. For the most part they can be constructed and operated by local labor."

http://www.schott.com/solar/english/download/schott_memorandum_e.pdf

If the energy payback time is five months then to state that the EROEI on a system that will last 25 to 50 years is 1.8:1 is ludicrous.

If you want to be taken seriously, you need to take a hard look at your data and determine if it's telling the truth as it stands today and is an accurate representation of FACTS or if it's simply a long chain of inaccurate, outdated, and issue-slanted statistics.

If you want to be taken seriously, you need to take a hard look at your data and determine if it's telling the truth as it stands today and is an accurate representation of FACTS or if it's simply a long chain of inaccurate, outdated, and issue-slanted statistics.

Surely that's exactly why the draft is posted here?

While it is still in draft form, it is hoped (with some help from TOD readers) to be refined and directed into the formal peer review literature. But Professor Hall (and I) believe this type of thinking also needs to be considered outside the academy, and increasing the level of energy discourse in our nation is one reason for him choosing to display his draft essays on theoildrum.com.

Well my refinement would be to:

1. Get more recent numbers on Concentrated Solar Power from a variety of sources. You can start with the solar towers subset from ASPO USA (1985) and then do an EROEI calculation by collecting industry figures for other concentrated sources. Some plants have been in operation now for years and you should be able to go to the industry to get good data points.

2. Break out Photovoltaic and Thin film EROEI figures.

3. Look at nuclear from within the US RE regulatory issues and outside the US. I'd be very interested to see what kind of numbers you'd get in France, for example, which seems very successful in nuclear at the moment.

When I saw these old numbers I had to laugh. EROEI for a renewable infrastructure in place will scale upward over time even with the added cost of maintenance etc.

Here's another EROEI list I found that seems to scale with the ASPO data and supports a CSP (solar tower) EROEI estimate of approx 4:1.

http://www.eroei.com/eroei/evaluations/net-energy-list/

Also, I found a study by Lorin Vant-Hunt, professor of physics at the University of Houston, that referenced the EROEI for a concentrated solar power system to be 27:1 over 30 years for the system:

http://www.ases.org/divisions/electric/SED_April06_nwsltr.pdf

The newsletter cites a study in 1991 that did a comprehensive EROEI study of a solar tower or heliostat with molten salt storage on site. The researcher also noted that though she had not performed a study on trough or Sterling CSP systems she thought EROEI numbers would be similar to the ones she found for the heliostat.

The primary reference for the work is an article: "Solar Thermal Electricity: an Environmentally Benign and Viable Alternative" pp 157-166 published 1992-1993.

In all, I think this represents a more rational current range with conservative estimates for CSP at around 4:1 and optimistic estimates up to 27 or more. Lorin Vant-Hunt noted 40+ EROEIs when materials used in the heliostats were recycled.

Brad F noted that there are some miscalculations (or typos) in the table. The number without salt storage should be 34 not 44.

These values for silicon PV should be useful:
http://www.nrel.gov/pv/thin_film/docs/lce2006.pdf

Chris

I did a quick analysis of the Nevada Solar One project using googled data.

Cost $266 million.
125e6 Kwh per year (23% capacity factor).
Lifetime 40 years (length of land lease).
I used 13Mj per $ number from article above. (the whole thing is glass and stainless steel + turbines)

5.21 EROI

Operating expenses (repair, cleaning, staff) were not factored in.

Actually, looking at the tables from 1975, it looks like glass and stainless are even more energy intensive per $ than turbines. Ok. If I use glass and steel Mj/$ then we get back down to 3.4 EROI. I think that is going to be too low because the whole plant cost will include less energy intensive items. A wider boundary analysis gives the lower bound on EROI.

Sigh. No wonder they keep building coal plants.

Well, this may point to an issue with applying MJ/$ to technology that is still scaling. What level of reinvestment is being put towards growth? How are early development costs being apportioned? What is the expected cost at the anticipated optimum scale (200 MWe)? Once the cost settles then the figure you used might be usefully applied.

Bottom up may have some advantages when assessing developing technologies, but here are some cost figures for 100 and 200 MWe plants: http://www.renewablesg.org/docs/Web/AppendixE.pdf

And here is a report on an LCA for a parabolic system that comes out to EROEI~25: http://www.latermotecnica.net/pdf_riv/200702/20070215003_1.pdf

This is in italian but the same authors have IEEE publications on this subject.

Chris

I agree that later production models will have higher EROI. One off designs with custom made parts imported from around the world are going to be expensive. But I see this as setting the lower bound. And it gives those doing the bottom up analysis a rough target to shoot towards to make sure they are including everything. The one with a value of 34 left out labor & construction cost. It is very easy to leave things out of a bottom up analysis.

Finally, the 5:1 answer makes some sense in that CSP is still delivering power at higher cost than nuclear. (And you are putting nuclear at 7?) So that would be roughly correct.

I think CSP is going to take off. The newer designs are all about getting costs down and efficiency up.

I'm not so sure that the EROEI has to change to get the cost to come down. Or perhaps it would be better to say that the cost of the manufacturing plant is front ended too much to make a dollar to energy conversion useful? The learning curve effect would be a separate thing I think. Still, $0.11/kwh now is pretty similar to $0.03/kwh from a plant whose financing was set 45 years ago.

Chris

Hi Chris,

Thanks for that link to the Appendix E Solar Thermal. There were quite a few useful bits of data and I did an EROI for the last two SEGS plants at Kramer Junction.

I ended up with an EROI of 9.3 for costs as they stand today. That includes all construction costs as well as operations and maintenance. It turns out that more energy is spent in maintaining the plants than was required to build them. They have a program underway to drop the O&M cost from $25/Mwh down to $10/Mwh. If that program is successful, then the EROI will increase to 14. This assumes a 40 year plant life. If the life is shorter, then the number drops substantially.

All and all that is a pretty good number considering the output is electrical power. And it has very few environmental side effects (except water use).

As far as the Nukes value goes, I was thinking of the MIT study (now several years old) that put new nuke $0.08/Kwh. It would be higher now of course (inflation, rise in steel & concrete).

If you want the spreadsheet, send me an email.

I started a thread here: http://europe.theoildrum.com/node/3795#comment-327648
that seems to indicate that estimated costs are going up faster than inflation but the only price for nuclear power I'm really interested in (outside of energy analysis) is the price without the Price Anderson subsidy and with the full cost of waste disposal and decommisioning, which is unknown. The UK estimate of $12,000/kW for decommissioning is interesting.

The other price I'm interested in is the price of carbon dioxide to make the scenario in fig. 6 of this preprint happen:
http://www.columbia.edu/~jeh1/2008/TargetCO2_20080317.pdf

My guess is that it is impoverishing and we'd need to ration instead but maybe I'm too influenced by the inelasticity of gasoline.

Thanks for the offer though.

Chris

Hi Robert. I appreciate your frustration with studies being 20 years out of date. Lucky for you, you don't have to sit on the sidelines. Dr. Hall has published enough information that you can jump in and do the heavy lifting yourself.

Here is how I would start: Find the total construction cost (materials, labor, everything) for a CSP power plant. Then convert those $ into $(2005) then use the Mj/$ value in the article to convert that into energy. Then calculate the energy output of the plant (factoring in true capacity factors etc). With that data you should be able to get a value for EROI.

I have not read the schott memorandum, but bottom up studies tend to over estimate the EROI because anything left out causes the EROI to go up. The sloppier the math, the better (sounding) the result! So I would dig into that analysis in more detail. What was included in "energy expended in production of the components"?

Dr. Hall did a calculation for a Coal Power plant that you might enjoy reading:

Hall, 1979, "Efficiency of Energy Delivery Systems: 1 An Economic and Energy Analysis", Environmental Management, Vol3, No 6, pp 493-504 (make sure you get parts 2, 3 also).