Income Tax and Energy Supply: Tax Codes Credit for Energy Production

income tax energy
Various provisions in the federal income tax treat energy producers more or less favorably than other businesses. By changing the after-tax rate of return on investments in the energy sector, the Tax Code may alter the long-run supply of specific types of energy.

In general, the income of all participants in the energy sector is subject to income tax of one form or another. Two notable exceptions arise in the generation and sale of electricity. Governmental agencies (such as the Tennessee Valley Authority, the Bonneville Power Administration, and municipally owned power companies) account for approximately 14 percent of the electricity sold in the United States. (more…)

CO2 Emission Reduction and Fossil Fuels Carbon

Reductions in carbon intensity, C/E, the carbon emitted per unit of energy generated, reflect the degree to which societies decarbonize their energy sources. The long-term trend has been a shift from coal to oil to natural gas––hydrocarbons with decreasing C/H ratios emitting progressively less CO2 per joule. However, the increasing use of clean low-carbon fuels is not sustainable without somehow disposing of excess carbon because it opposes the trend in the abundance of fossil fuels, with coal resources being the most abundant followed by oil and gas. (more…)

Renewable Energy Technologies in Europe

The development of the ‘‘new’’ wind and solar technologies is of great importance for the future contribution of RESs to energy supply. Although the present wind and solar technology contribution of 0.4% to total primary energy consumption per capita is still very small, the growth of these industries has been considerable in the past 6 to 8 years. Today they provide 10 times the energy of 10 years ago. Wind energy shows the most remarkable growth dynamics; its contribution is now reaching energetically relevant dimensions. (more…)

Long-Term Biofuel Industry Growth Remains Strong

biofuel industry
Biofuels are made from living matter, plant or animal, and are strongly favored by agricultural interests because of the large boost they bring to domestic farms. Most U.S. biofuels is made from corn (ethanol) or soybeans (biodiesel), although several unusual fuel sources are emerging, including algae and oil waste from deep-frying of foods. The biofuels industry experienced meteoric growth in 2005, 2006 and early 2007, but then it began to slow because of high feedstock prices. Private investment in biofuels finished off 2007 at $2.1 billion, according to ‘Global Trends in Sustainable Energy’, a report by New Energy Finance and United Nations Environmental program. (more…)

Bioenergy from Dependent Resources (Forestry, Vegetable Oils, Waste)

Agricultural and forestry residues provide the largest proportion of biomass used for the production of biomas bioenergy. Some estimates suggest that globally available biomass role in the form of recoverable residues represents about 40 Ejyr -1, enough to meet 10% of the total present energy use of 406 Ejyr -1 . However, realizing this potential is limited by factors such as ease and cost of recovery and environmental concerns relating to sustainable land use practices. (more…)

Bioenergy from Dedicated Resources (Crops, Biomass Feedstock, Woody Biomass)

The future development of energy crops, to the level at which they would replace residues as the major bioenergy fuel source, will be largely dependent on regional factors such as climate change and local energy requirements and emission factors, which will determine their environmental and financial viability. (more…)

Bioenergy as Carbon Neutral Energy Source

Bioenergy produced from biomass is sometimes called a carbon-neutral energy source, because the same quantity of carbon released when the biomass is burned is sequestered again when the crop or forest is re-grown. Referring to bioenergy as carbon neutral or having zero net emissions may be misleading; there are emissions associated with producing biomass, such as from fossil fuel used in cultivation, harvest, processing and transport, and in manufacture and construction of fuel conversion technology. (more…)

Modernizing Bioenergy – Biomass as Energy Source

modernizing bioenergy biomass
Estimation of the future technical potential of biomass as an energy source is dependent on assumptions with respect to land availability and productivity as well as conversion technologies. With the emergence of energy crops as the major source of biomass fuel, land use conflicts, especially in relation to food production, may arise. However, with efficient agricultural practices, plantations and crops could supply a large proportion of energy needs, with residues playing a smaller role without compromising food production or further intensifying agricultural practices. (more…)

Energy from Waste Biomass

energy waste biomass
Another large source of renewable carbon supplies is waste biomass. It consists of a wide range of materials and includes municipal solid wastes (MSW), municipal biosolids (sewage), industrial wastes, animal manures, agricultural crop and forestry residues, landscaping and tree clippings and trash, and dead biomass that results from nature’s life cycles. Several of these wastes can cause serious health or environmental problems if they are not disposed of properly. Some wastes such as MSW can be considered to be a source of recyclables such as metals and glass in addition to energy. Thus, waste biomass is a potential energy resource in the same manner as virgin biomass. (more…)

Energy Potential of Waste Biomass

energy potential waste biomass
Another large source of renewable carbon supplies is waste biomass. It consists of a wide range of materials and includes municipal solid wastes (MSW), municipal biosolids (sewage), industrial wastes, animal manures, agricultural crop and forestry residues, landscaping and tree clippings and trash, and dead biomass that results from nature’s life cycles. Several of these wastes can cause serious health or environmental problems if they are not disposed of properly. Some wastes such as MSW can be considered to be a source of recyclables such as metals and glass in addition to energy. (more…)

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