Sunday, October 12, 2008

An Energy Strategy

Cross posted at Future Blogger.

As long as we seem to be in the mood to spend our way out of trouble anyway, what say we try to acquire a little something in return for or effort?

I have written about the Hyperion Power Module with some degree of specificity in the past, but the present socio-political climate within the US national environment allows me to complete the strategic formulation, I believe.

Since the recent signing into law of the US$850b financial legislation, the mechanism to create a unifying force to relieve the impending energy crisis the USA presently faces is now available. Since the SecTres works for the President, a simple executive order to assign 8.5 of those $850b to a specific project would provide ample force, I submit.

Beginning now, the President should direct formation of a contract with Hyperion to purchase 500 of it's standard power modules on a crash construction basis to enhance the US domestic electric grid. The USG offers to pay a one-time fee of US$1,000,000 per unit and to supply sufficient real estate from suitable USG controlled land, limited legislative exemption from construction legal challenge, engineering and regulatory assistance for site and plant design and the sum of US$200,000,000 for each of five purpose-built construction facilities. Additionally, USG agrees to purchase at 50% of the present advertised price of US$25,000,000 apiece, 500 units over the course of 5 years plus one year for construction of the assembly plants. Finally, USG agrees to finance from this allocation the recruitment, relocation, training and housing needs of sufficient workforce to initially staff all five anticipated production facilities.

From the US$500,000,000 one-time fee, Hyperion agrees to construct (at a more financially sane pace) an additional construction plant to assume the new unit construction burden when the five special plants begin serial conversion to re-fuel the units previously constructed and placed into service (approximately one year before re-fueling's scheduled due date). Upon each plant's conversion to re-fueling status, the property in it's entirety escheats to Hyperion (or it's designated managing representative) as does responsibility for any and all property or other taxes as may subsequently apply.

Thanks to Brian Wang, we know each unit will provide a steady output in excess of 25 MWe over the course of it's 5+ year service life. This results in an expansion of the US electrical grid's capabilities by at least - let's see, 5x25+ two decimals with 1 gigawatt being equal to 1,000 megawatts - hmmm, 12.5 GWe? By installing these power modules at already existing sub-stations serving major metropolitan markets, the over-all base load requirements on the grid will be reduced by that amount of base demand, thereby extending the capacity of the existing grid into the peak load period instead (or relieving existing producers to permit needed maintenance/upgrade of their facilities).

So, we have identified the environment and climate within which we seek to advance our position. We have also developed the means to limit or defeat attacks against our advance. Additionally, we have determined a unifying force around which to structure and enforce alliances. And, we have stipulated the limits of our advance and the means to subsequently restructure alliances without loss of advancement.

I think Sun Tzu might approve.

1 comment:

Garry G said...

Will....

Mind if I cross post this at The Energy Roadmap.com?

We need to connect via email -- garrygolden (at) g mail

Garry