Tag Archives: Energy Economic Prosperity

Texas and Coal Power 6,000+ MW’s of Coal plant Capacity is missed!

Introduction:

My first assignment to Texas was as a young B&W Results Engineer. I was participating as one of the Results engineers to perform acceptance tests of a large (500 MW class) natural gas fueled boiler at the P.H. Robinson Plant near Houston. That was about 1968. After that involvement I watched with great interest as Texas built dozens of 500-750 MW natural gas and oil fueled plants all across Texas. Built by Foster-Wheeler, Combustion-Engineering and Babcock & Wilcox. Then came the Arab Oil Embargo in 1973 and Texas responded to this true energy crisis with an incredibly successful fuel change to power production changing from oil and gas to Texas and Wyoming coal. The huge build out of coal plants went from the late 1970’s till the mid 1980’s and I was impressed. I had the pleasure of working at many of the coal plants operated by various Texas Utility Companies and what impressed me most was the “Can Do” attitude of Texans. Then about 1978 I became very involved as a Field Engineer to help solve combustion and power generation challenges with ALCOA’s massive Rockdale, Texas Lignite Fueled Power Plant. Also in the mid 1980’s involvement with acceptance testing of the 450 MW Gibbons Creek Coal Plant near College Station.

Why am I writing this? It is because I am perplexed after watching for decades how Texans were so practical and innovative, they became enamored with Renewable Wind and Solar Power to a fault. I was not surprised that California had such foolish policies but found it odd that practical Texas would fall into the trap of too much dependence on unreliable, non dispatchable renewables.

In the 1970’s Texas rallied to successfully change from oil and gas fuel to coal. In 2021-2022 I see Texas rallying again to overcome the problem of over-dependence on renewables.

The Good Old Days of Coal Power and Aluminum Production in Rockdale

Here is how coal power in Texas helped to build some of the most productive aluminum manufacturing in North America. A major contributor to the local economy and manufacturer of critical metals for America at the same time providing over 1600 jobs. A story to document the relationship of reasonable cost energy and economic prosperity.

The following is from the Milam County Archives, 1974:

On November 24, 1952, something strange happened in the small, agriculturally-oriented Central Texas town of Rockdale. A visitor, seemingly from a different world, changed the living habits of its people along with the general tempo and appearance of its community. 

The courting days of the 1950’s has now, nearly 22 years later, turned into a love affair unmatched in many communities between industry and townspeople. 

It began innocently enough. The Korean War was raging on and government needed aluminum to make airplanes. Aluminum Company of America needed a new facility to meet the demand. Rockdale, with its large lignite reserves, was the apple in Alcoa’s eye. 

Thousands of acres of the “Cinderella fuel” nestled beneath the earth’s crust gave rise late in 1951 to the establishment of the aluminum industry in Milam County. Aluminum production demands electric power to break down ore, shipped in from South America, to form the lightweight, corrosion-free metal. 

Demand for the metal by government and this abundance of the electrical energy- producing fuel triggered boom-like industrialization when Alcoa’s multi-million dollar Rockdale Works raced into production only 13 months after groundbreaking. 

Tipping the giant vat to cast the first aluminum ingot were the plant’s first boss (now Alcoa board chairman and chief executive officer) John D. Harper and smelting division manager R. T. Whitzel of Pittsburgh corporate headquarters.

Today, Rockdale Works is Aluminum Company of America’s largest worldwide metal producer with eight potlines and the capacity for turning out 280,000 tons annually or 1.5 million pounds per 24-hour, continuous operation day. 

The original four-potline plant was expanded by two more lines in 1956 and the Central Texas smelter became Alcoa’s largest in 1969 with the addition of the seventh and eighth lines. For the first time, Alcoa began producing more aluminum in Texas than in any other state. Rockdale Works and Point Comfort Operations down on the Gulf Coast have a joint capacity for making 455,000 tons annually. 

Rockdale Works has one of the world’s biggest carbon electrode-making facilities and a diversified ingot plant which converts molten aluminum into extrusion, sheet and remelt ingot. The latter produces everything from a 50-pound to a 22,000-pound product. 

A couple of fabricating facilities further enhanced the company’s local investment in the 1960’s. An atomized aluminum powder unit was built in 1966 and has been expanded twice. It’s now the biggest aluminum powder producer in the U. S. Then came a redraw rod facility in 1968 which spews out “raw material” for Alcoa’s electrical conductor-or wire-fabricating plants, primarily its nearby Marshall (Texas) Works. 

The Rockdale story is like many across the Developed World. Reasonable cost and abundant energy is used to fuel a manufacturing facility with the end result of not only manufacturing vital materials but also contributing to employment, funding the local tax base and infra-structure and more. Energy and Economic prosperity go hand in hand. Now, the four power generating units at Sandow Station are shut down. The Rockdale Plant is for sale and aluminum is no longer manufactured here. It was a great run from 1952 till about 2008 when the Chinese took over the aluminum smelting market.

https://www.bizjournals.com/pittsburgh/news/2017/12/22/alcoa-to-close-texas-site-divest-italian-smelter.html

Recent Shutdown of 6,453+ MW of Coal Capacity

Including the Sandow Plant which was adjacent to the ALCOA Rockdale Plant, there were five other robust, reliable coal plants shutdown. These are:

Sandow 1252 MW, Oklaunion 650 MW, Monticello 1,980 MW, J.T. Deely 932 MW, Big Brown 1,186 MW, TMPA Gibbons Creek 453 MW.

Perhaps the renewable wind and solar power capacity made some folks feel good when it was purchased and installed. I am sure it made the environmental extremists happy to see these coal plants gone. However, the people in the great state of Texas sure could have used the reliable electricity that could have been produced from these plants, had they not been prematurely shut down.

Hayden Ludwig published this short video on the Capital Research web site on more sinister reasons of America’s foolish Green Energy policies: https://capitalresearch.org/article/how-china-designed-american-environmental-policy/

It personally saddens me to see the loss of the aluminum manufacturing in Rockdale which essentially was given up to Chinese aluminum smelting capacity. It saddens me also to see the unneccessary suffering of the people of Texas. The environmental extremists may be happy to have successfully hoodwinked the politicians on the evils of carbon. Perhaps now is the time to account for the costs in the loss of American jobs, economic prosperity, the powering of heat pumps, Refineries and Businesses and often overlooked, contributions to the local schools and government infrastructure & tax base.

Dick Storm

February 19, 2021

China’s Economic Influence in the World and Some Thoughts on the need to Reshore American Manufacturing

If America Was the Arsenal of Democracy for the Allies in WWII, Then What to Think of The Rise of China?

I voted for and support President Trump for reelection in 2020 because, I see him as the first President in recent years to recognize and act on reversing the De-Industrialization of America. The graphic below shows the ranking of world manufacturers. This in itself is not troubling. However, as you read later in this document, the rise of China may not be done solely for Humanitarian purposes and to lift 1.5 billion chinese from poverty. The Chinese 100 year plan 1949-2049 serves the CCP First.

The Rise of China since 1950

The Chinese Flag and Statue in Front of The CCP School. From PBS News Hour Report 2019
From the You Tube Video Which Illustrates the Top 10 Car Producing Countries in the World. In 1950, China had Negligible Car Production

In 1950, China was not a significant manufacturer of automobiles when compared to other nations. I took screen shots of a you tube video presented by USCB which showed the changing world manufacturing of automobiles from 1950-2020. This video is on you tube.

Then, by the year 2000, China progressed to rank #8 manufacturing just short of 2 million vehicles per year and more than the UK.

China is admitted to the WTO (World Trade Organization) in 2001 and China welcomes western Industry to setup manufacturing facilities in China.  Yes, we gave much of our manufacturing expertise to China, but what they were not given, they took. The automobile production which is mostly for Chinese consumption, is an index of economic growth and increased demand for steel, aluminum, copper and other materials. 

The astounding production year 2016 is shown below and still increasing. China is now building more than 2X the number of motor vehicles than we do in America. 

By 2016, China has Progressed to Ranking the #1 Car Manufacturer in the World

Some may say, “so what?”  They have 1.5 Billion people in China and they need a lot of cars.  This is true. Yes, they do need a lot of cars, but let’s take a look at China’s Published Grand Strategy:

Well, the supply chain for building motor vehicles is much the same as for military equipment. 

Remember recent history of America in WWII when FDR referred to us as the “Arsenal of Democracy” Steel, aluminum, copper, electronics, ships, planes, tanks, guns, etc.

 Below is the World Steel Association report from 2018 steel production. (World Steel Association: https://www.worldsteel.org/steel-by-topic/statistics/World-Steel-in-Figures.html)

I have seen these numbers, at least the percentages, in other articles and magazines. Fact: China produces over 50% of the World’s steel and Aluminum. 

On aluminum, in 2016 I was preparing for a talk and copied the aluminum production from the Aluminum Institute web site. This talk text is included on this Blog in 2016. References for World Aluminum Production are on the web at: (https://alucycle.world-aluminium.org/public-access/) Today they have updated the site to show a Sankey Diagram of aluminum flows by country and including recycling. 2018 data, International Aluminum Institute diagram is copied immediately below: 

The Largest World Producer of Aluminum is China. This from the International Aluminum Institute

The photo credit on the aluminum ingots on the dock is from the Wall Street Journal which wrote quite a bit about how China was taking over the world aluminum production in 2016. It began about 2002 from the chart above (no longer on the IAI website)

This was of particular interest to me because I did a great deal of work for ALCOA, all around the world, every year from 1977 to about 2012. I saw first hand how their business was shrinking from many plants all over the world and in 2006, about 125,000 employees, now drastically downsized. Thanks to China dumping of metal ingots on the world market.

Usually, I write about energy and electric power generation. That was my career for 50+ years. The observation I made during those years of world travel was that economic prosperity and energy use usually parallel each other. That is, it takes a lot of energy to create manufacturing  jobs and to produce primary metals. China after entering the WTO then began building new power plants at an incredible pace. They built more coal fueled power generation capacity in twenty years than America did in the preceding 100 years. This is not an exaggeration. The coal consumption data as compiled by the EIA (U.S. Department of Energy, Energy Information Administration) is copied below. China uses about 5X America’s coal consumption for electric power generation.

China’s “Belt and Roads Initiative” is worldwide. It includes gaining control of ports and natural resources all over the world, including Africa and South America. I personally was involved with a meeting with a law firm in West Virginia in 2008 and China was attempting to purchase WVA metalurgical coal mine. As you will see below, they have secured a foothold in American Real-Estate in the Mariana Islands.

Coal Consumption for Electric Power Generation by China. From the US-Dept. of Energy, EIA

Not only does China consume a lot of coal for power generation, but they have exported their coal plants at extremely cheap prices to other countries of the world. This improves their manufacturing economy, employs millions of workers at home and expands their reach. It also works toward the economic harm of America (and all western countries) through unfair competition.

New Coal Power Generation Plant Being Built in Dubai, Hassyan Plant

Here is one example of a coal plant being built in Dubai with a joint venture of Chinese investments and UAE. Link: https://www.nsenergybusiness.com/projects/hassyan-coal-fired-power-plant-dubai/

China is exporting their power generation equipment with components manufactured in China, all over the world. America once did this through USAID. 

Below is from a lecture by a retired General who had personal experience in command of Pacific Defense installations.

So, what is the economic activity that China is engaged in, in the South China Sea and Western Pacific?

Bloomberg News of Casino built in Saipan by China: https://www.bloomberg.com/news/features/2018-02-15/a-chinese-company-has-conquered-a-piece-of-america

Some would say, so, China built a Casino on American soil in Saipan. So what? Also in the news if you dig deeply, is reference to China building military bases on manmade islands in the South China Sea and Pacific.  Here are some satelite photos:

Energy and Economic Prosperity are inter-related. The World uses about 100 million barrels of oil per day. Much of this oil is transported to Asia through the Straits of Malacca.

So, if I get back to the matters of manufacturing, energy and economic prosperity, then a picture can be drawn of the rise of Chinese influence and control and the reduction of American influence and control. The economic piece of the aggression is ceding of the western Free World’s Manufacturing might to China. In doing so, it provides a revenue stream to fund their military buildup. One estimate of the projected military resources in 2025 is shown below. The red images of planes, missles, ships, submarines are China’s. The blue represent America’s. 

In my opinion, the return of manufacturing to the U.S.A. is important. Remaining energy independent is important. Keeping America’s military strong to continue Ronald Reagan’s legacy of “Peace through Strength is important. 

Additionally, protecting America’s Intellectual Property and securing the R&D of  American Universities and Industry is important.

It is not only steel and aluminum that China has exceeded all other world manufacturers. It is also Pharmaceuticals as we learned during the recent Pandemic. It is also Rare earth minerals and electronics as used in modern electronic devices. Manufacturing by U.S.A. companies also funds R&D which is then owned by the inventing company. If manufacturing is lost in America much of the funding for higher education as well as R&D will be compromised.

All of these and more require a President to place America’s priorities FIRST. These are some of the reasons why I voted for President Trump and a Straight Republican Ballot.

Let me close by asking before you vote, please do research on the inter-relationships of the importance of being energy independent, economic prosperity, fair trade and improving K-12 as well as Trade and College education within our borders.

Dick Storm

November 1, 2020

Additional References:

  1. Brian T. Kennedy, President of American Strategy Group, “Facing Up to the China Threat”, https://imprimis.hillsdale.edu/facing-china-threat/
  2. German News on 40 years of China’s Rise in Economic Power: https://www.youtube.com/watch?v=1SBnK9XIlZE
  3. PBS Hour Power and Prosperity Nov 2019: https://www.youtube.com/watch?v=JovtmKFxi3c
  4. Bloomberg News of Casino built in Saipan by China: https://www.bloomberg.com/news/features/2018-02-15/a-chinese-company-has-conquered-a-piece-of-america
  5. Dubai Coal Power Plant being built by China joint venture: https://www.nsenergybusiness.com/projects/hassyan-coal-fired-power-plant-dubai/
  6. Vehicle Manufacturing 1950-2018 You Tube: https://www.youtube.com/watch?v=kZCeuTzc850
  7. World Steel Association report from 2018 steel production. (World Steel Association: https://www.worldsteel.org/steel-by-topic/statistics/World-Steel-in-Figures.html)
  8. International Aluminum Institute:  web site. https://alucycle.world-aluminium.org/public-access/
  9. Dick Storm’s Blog, “The Importance of Energy to Economic Prosperity” https://dickstormprobizblog.wordpress.com/2020/09/21/part-4-the-importance-of-energy-to-economic-prosperity/