Energy Investors Funds has formed a joint venture with Saint Augustine, Fla., -based NTE Energy to build and operate hybrid power generation facilities in the U.S.
The plants will use a combination of natural gas-fired a facility and renewable sources like solar or biomass.
According to the joint release, the two companies will announce projects in Florida, South Carolina, and Alabama in the near future. The two companies did not provide financial details.
EIF is veteran energy investors with a diversified portfolio of natural gas power generation and some renewable assets, including solar and biomass power plants. Less is known about NTE Energy. Its barebones Website does not list any projects and Seth Shortlidge, CEO, is the only listed executive. We’ve called both companies for more details on the venture and the expected project pipeline.
Is hybrid the way to go and in particular is natural gas what the future of green energy looks like? Coal is likely to remain cheap for the foreseeable future. However, it’s also dirty and can be a political liability. That’s why, a few weeks ago, the Blackstone Group opted to convert a coal-fired project in Nevada into an 800 megawatts hybrid natural-gas/ solar power plant.
BP Chief Executive Tony Hayward and others in the “traditional” energy sector maintain that natural gas — over solar or wind generation — is the real game changer that will help turn energy into a greener, cleaner business. The ongoing issues with renewables is consistency or the ability to generate electricity at all times, something that wind or solar farm can hardly do right now. The hybrid process could be the beginning of a solution.
Over the past year BP and competitors like Total or Exxon Mobil have all purchased natural gas developers with large shale resources. These unconventional reserves, like the Marcellus Shale gas field, could significantly bolster long-term U.S. supply, and ensure that natural gas stays competitive compared to coal.
Natural gas, and in particular how unconventional reserves, like the Marcellus Shale are developed is controversial. They point out that getting to these unconventional reserves using hydraulic fracturing, in which large quantities of water, sand and chemicals are injected into the shale, hurts the environment. Some oilfield service companies are trying to remedy this by using greener chemicals, according to the Wall Street Journal.