Power Engineering - AES creates alternative energy group

18 April 2006 - The AES Corporation announced Monday plans to invest approximately $1bn over the next three years to expand the company's alternative energy business and bring to market new projects and technologies to reduce or offset greenhouse gas emissions.

Through the creation of an alternative energy business group, AES said it intends to expand its existing alternative energy businesses in wind power generation, biomass and the development of liquefied natural gas (LNG) terminals.

AES said it plans to invest in the commercial development of projects and technologies that directly reduce greenhouse gas emissions or create emission offsets under the Clean Development Mechanism (CDM) of the Kyoto Protocol.

AES said that, since October 2005, it has already committed to approximately $100m in investments, which will generate over 17 million tonnes of carbon reduction credits through 2012.

AES said it plans to triple its investment in its wind generation business over the next three years.

Said it has entered strategic partnerships with Los Alamos National Laboratory and XL TechGroup, to identify, evaluate and bring to market new technologies in the alternative energy area. AES's partnerships with Los Alamos and XL Tech Group - an architect and builder of high value new businesses, primarily in the ecotech, biotech and medtech fields - give AES the opportunity to develop and commercialize proprietary energy-related technologies developed by these entities.

AES said it is evaluating future investments in other sources of alternative energy such as solar power and wave technologies. The company said it is also evaluating future investments in non-electric business lines such as ethanol, bio diesel, methane capture and conversion projects, synthetic fuels and new technologies to reduce greenhouse gas emissions.

"AES is committed to meeting a developing market need for new energy resources and technologies that will lead to a secure and sustainable energy future," said AES President and Chief Executive Officer Paul Hanrahan. "With 25 years of experience in energy and a presence in virtually every region of the world, AES will play a leading role in this rapidly growing segment of the energy ndustry."

William Luraschi, AES Executive Vice President, Business Development, will lead AES's alternative energy group.

"Global energy consumption is expected to more than double by 2025," Luraschi said. "We believe that traditional ways of producing energy alone will not meet this demand, due to rising production and transportation costs, energy security issues and the growing recognition of environmental impacts. That leaves an enormous opportunity for alternative sources of energy to fulfill a large part of this growing demand."

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