High Natural Bas Prices drlvlng demıınd far ıılternııtlvee ta faeell fuele High natura/ gas prices in the US are affecting markets for distributed and centralized generation technologies a/ike. And, with energy analysts forecasting a protractedperiod ofhigh gas prices, the market is on the offensive, focusing on maximizing generation efficiency- and on alternative. The energy crises and fossil fuel shortage of the 1970s ushered in the Clean Energy Air Act in the US, and unprecedented investment in natural gas-fıred and renewable energy technology. Yet, soeffective was the 1970's-era energy policy that demand for clean-burning natural gas now outstrips supply. "There is a realization that carbon-based fuels are in the end restricted", contends Roger Salliant, CEO of Plug Power, "There is limited availability in the sense of being economically available, and we are entering a phase where people are seeing it in the pricing of these fuels." The growing demand for alternatives to volatile fossil fuel prices has trickled down to government and industry research laboratories and forward product plans. Across the spectrum of distributed generation (DG) technologies, manufacturers report an acceleration of R&D and commercialization timetables in response to a heightened interest in more effıcient, cheaper and cleaner power generation technology. Yet the market is divided on whether or not the next generation energy economy currently being planned will be carbonfree world. Many competing visions are being put forth by both government and industry. Over the next decade, renewable energies, bio-derived fuels and hydrogen produced from nuclear power will compete with clean coal technologies and a boom in liquefıed natural gas imports. Solar Wind Stirling engine systems Fuel cells m i c r To tuur rbbi ni nee/ Reciprocatinng o - - - - - 10 20 30 40 50 60 COMBINED HEAT AND POWER Where natural gas is being burned today !here is a clear migration to the highest effıciency to offset high fuel prices. Manufacturers of DG technology -including reciprocating engines, microturbines and fuel cells - are reporting high interest in CHP applications. "lf you are an industrial consumer you may want to look at ways to hedge utility costs through more effıcient electricity and thermal processes," says Robert L. Jones, Director of Global Marketing for Cummins, who reports customers willing to pay the added costs for CHP systems due to the improved economics of the overall system efficiency.
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