As oil rises, cleaner energy surges

Canadians are also taking notice of the potential for wind power. For instance, earlier this month, Hydro-Quebec, the giant utility in Canada, announced plans to buy up to 1,000 megawatts of electricity - enough to heat 200,000 homes - from eight windmill projects in the province. Hydroelectricity will balance the wind-produced electricity, which is not constant, once projects are on line between 2006 and 2012.

Some of the shifting is the result of the volatility of oil and gas prices, says Steve Zwolinski, chief executive officer of GE Energy's wind energy division. "What's changed is energy security and fossil fuel volatility," says Mr. Zwolinski. However, he adds, "This is not just a knee-jerk reaction to a short-term price change, but it's people looking at energy reserves and environmental balance and the need for emerging economies to supply their growing cities."

Even oil companies are jumping on board, using ethanol to augment gasoline supplies. Today, ethanol, which uses 12 percent of the nation's corn crop, is blended in 30 percent of the nation's fuel. Demand for ethanol is so robust, 12 new plants are under construction and many more are searching for financing to join the 83 already in operation. "It's not just a Midwest fuel anymore," says Bob Dinneen, president of the Renewable Fuels Association in Washington.

In fact, in New York State terminals are blending at a 10 percent level, double what's required for environmental standards. "The reason is it is more cost effective than other petroleum enhancers," says Mr. Dinneen.

Some corporations are also joining in the march to renewables. This week, FedEx announced it would add solar cells to its Oakland Airport facility. The company expects the cells to provide 80 percent of its peak load requirements, says Ryan Furby, a company spokesman. This week, the company also rolled out more hybrid vehicles that use a combination of diesel engines and lithium batteries, increasing fuel efficiency by 50 percent and reducing greenhouse gas emissions.

The government is joining in, too. This week, the US Postal Service announced it would add solar panels to one of its facilities in Sacramento, Calif. The company will combine the solar panels with an energy-management program that includes new lighting and improved compressors for its heating and cooling system. "They will lower their power consumption by 33 percent," says Jim Davis, president of Chevron Energy Solutions, which has the contract to work with the postal service.

Chevron will work with the postal service on seven more facilities in Northern California. Eventually, the program will be implemented across the entire USPS system, says Mr. Davis.

Some consumers, who have been reluctant to shift to renewables, are now doing so as well. Green Mountain Energy, which offers consumers the opportunity to shift to nonpetroleum fuels, always thought its product would appeal to environmentalists. Now the company says it's soccer moms who are buying their product.

"They want a safer future for their kids and kind of view it as a way to do their part," says Tim Smith, a vice president of the Austin, Texas, green-energy company.

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