Our solar power generation can be view here.
Q: Why we selected a grid connected system, would it be better to go off-grid right away?
A: A grid connected system will not require on-site batteries, although suitable utility scale 100kWh batteries from TESLA will be available in the next 12 months and we will test them at some point in the future on this site. Without batteries the cost of the system is lower however if grid power goes down we will not be able to use our own power as for safety reasons our system will shut-down even if solar power is available.
Q: Will we use 100% of the energy we produce?
A: During the day our system will produce more than twice the electricity that we require to run pumpjack and PCP. The excess will be sold to the grid the high price; the price of electricity fluctuates within each day with low prices at night and frequently high prices during peak use in day hours. During the night, our wells will run on grid electricity that typically is 10-50% lower than average price. This difference will allow us to shorten the payback period. Below is an example when electricity price dramatically increases during the day, it doesn't happen too often, but when it happens, it dramatically improves profitability of solar power system.
Q: Last week one of our colleagues distributed article “The ugly side of solar panels” referring to the study which claims “that generating electricity with solar panels can also be a very bad idea. In some cases, producing electricity by solar panels releases more greenhouse gases than producing electricity by gas or even coal”. If this is true, there may be no significant emission reduction with solar power.
A: I always recommend to follow the information trail, read the original source of information, before you cast your judgment. This article attempted to “sensationalize” and misrepresent a study done in 2008 “Emissions from Photovoltaic Life Cycles”. Let me refer to the synopsis of the study “Analysis of material and energy flows in all life stages of photovoltaics shows that 90% of air emissions associated with electricity generation could be prevented if electricity from photovoltaics displaces electricity from the grid.”
As per Burkhardt et al. (2012) and Whitaker et al. (2012) life cycle GHG generation per kWh using solar panels is around 4% of coal generation. It is worthwhile to notice that at some point with increased penetration of green energy generation, solar energy life cycle emissions will be further minimized while coal based generation will stay the same as 98% of coal (and any other fossil fuel) emissions are from operational processes (burning). There is a possibility that additional processes will be introduced to deal with the emissions from fossil fuel power generation to minimize their impact, again, it will be very inefficient and with time not economically viable as additional processes will consume additional resources and increase cost.
You can find more interesting information at National Renewable Energy Laboratory.
To put the numbers in perspective:
For Average Monthly Electricity Energy Consumption: 2,500 MWh
Alberta Grid Emissions Associated with Above Consumption: 2,028 tonnes of GHG
Equivalent Emissions from Solar Power Generation: 100 tonnes of GHG
Q: There is no payback on solar energy, period!
A: When we looked at the economics of this project, using our standard discount rate it would not be possible to justify it. To be honest, looking at the risks associated with the uncertainty of global oil prices and the ability to deliver promised results by an average oil company, for many industries outside the oil patch the payback justification for standard oil industry projects would not work either.
Q: Is this the best way to spend our money when we can have 1-2 year payback on other projects?
A: At Imaginea, we all want an energy industry that’s better for planet, and people and profits. If were were to only choose traditional profit based projects all that would happen is us talking about our vision while not doing anything that demonstrates our commitment to long term environmental, social and financial benefits. Imagine if all of our electricity comes for free from renewable resources today. Our indirect emissions would be minimal and our cost of lifting will be significantly lower without the electricity cost. Once we have renewable energy sources in place there is very minimal maintenance cost and no fuel cost ever again.
Q: We have to generate respectable return on investment, how will this help us to achieve our goals?
A: The value we create today and tomorrow will not be only measured in $ of free cash flow, or in bbl/d we produce but in what we stand for and where we can take our vision. With time the value of Emission Free Oil will be higher than the value of oil that was extracted in a traditional way and it is used and one-time energy source. There is growing social awareness and need for producing clean, environmentally and socially acceptable raw materials and using them in a way that they stay and create value for a long time. I believe that we can increase value for our shareholder much easier by following our vision, minimizing emissions and pollution from our operation and in time providing Emission Free Oil for those who recognize and appreciate its long term value than by sticking to the traditional route.