Energy production in Alabama
Energy production in Alabama is characterized by a diverse mix of sources that includes coal, natural gas, nuclear, and hydroelectric power. The state is a notable producer of coal, but it imports about half of its consumption due to high demand from its significant iron and steel industry. With an extensive network of rivers and lakes, Alabama harnesses hydroelectric power, which accounted for 7.1% of its energy generation in 2023. Nuclear energy is a major contributor, making up approximately 44% of the state's energy supply, with the Browns Ferry facility being a key player in this sector.
Alabama is also emerging as a leader in bioenergy, housing the world's largest biofuel plant and an ethanol facility that repurposes wood waste. Despite its reliance on traditional energy sources, the state is making strides in energy efficiency and renewable energy initiatives, supported by federal funding and local programs aimed at reducing carbon footprints. Additionally, while solar power has seen limited development, the state offers tax incentives to encourage its adoption. Overall, Alabama ranks sixteenth nationally in electricity production, reflecting a robust and evolving energy landscape.
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Energy production in Alabama
Summary: Alabama both produces and uses large amounts of coal and can lay claim to deposits of natural gas. Much of the state’s energy is derived from hydroelectric plants and abundant wood resources. Alabama is a major producer of nuclear energy and is becoming a significant producer of bioenergy.
Located in the southern United States, with a southern border that traverses a section of the Gulf of Mexico and three major rivers flowing through its borders, Alabama is well situated to be a major energy producer. The state is a significant producer of iron and steel, which results in demands for coal that outstrip available supplies. As a result, Alabama imports from other states roughly half of the coal it consumes. Natural gas deposits are found along the Gulf, with the largest concentrations located in the Black Warrior Basin and the Cahaba coalfield. The Tombigbee, the Alabama, the Tennessee, and the Chattahoochee Rivers flow through Alabama, and the 52,423 square miles that make up the state are dotted with lakes such as Guntersville, Wilson, West Point, and Lewis Smith. Dams along the Alabama and Coosa Rivers furnish a ready supply of hydroelectric power. Hydroelectric power accounted for 7.1 percent of the power generated in the state in 2023.
About 44 percent of Alabama's energy came from nuclear energy. The Browns Ferry facility, located in Limestone County, is second in size only to Arizona’s Palo Verde in terms of nameplate capacity. The state is also home to the world’s largest biofuel plant, which produces 520,000 metric tons of wood pellets annually. A 40-million-gallon-per-year facility is located in Claiborne; it converts soy oil into biodiesel fuel. In 2008, an abandoned lumber mill was converted into an ethanol plant, using the process of gasification to turn sawdust and wood scraps into ethanol.
The electric power sector is rapidly growing in Alabama since the consumption of electricity reflects the growth in industry. Between 1980 and 2005, electricity consumption in Alabama grew by 2.2 percent annually. In power generation, the nuclear energy sector is outranked only by natural gas and coal, which in 2023 provided 33 percent and 14 percent of the state's energy, respectively.
In 2023, Alabama generated 140 million terawatt-hours of electricity and was ranked sixteenth in the nation in the production of electricity overall. In addition to coal and nuclear energy, other forms of energy produced in Alabama, in rank order, include natural gas, hydroelectric power, and renewables. Most energy in Alabama is produced by ten plants. Nuclear energy is generated at the Brown’s Ferry and Joseph M. Farley facilities. Gas is produced at the H. Allen Franklin Combined Cycle facility and the E. B. Harris Electricity Generating Plant. Alabama’s coal-producing facilities include James H. Miller Jr., Barry, E. C. Gaston, Widows Creek, Colbert, and Greene County.
In 2009, the US Congress passed the American Recovery and Reinvestment Act, and governors of the various states were required to submit letters of intent in order to qualify for grants to be invested in promoting energy efficiency and renewable energy. The Department of Energy agreed to supply $347.4 million in funding for 39 relevant projects in the state. Chiefly under the supervision of the Alabama Department of Economic and Community Affairs, the state launched the Weatherization Assistance Program, which was aimed at reducing carbon dioxide emissions and assisting low-income families in creating more energy-efficient homes. Local communities received $31.7 million to create and manage their own programs designed to promote energy efficiency.
Many Alabamians continue to take advantage of the Energy Efficient Appliance Rebate Program, which is financed in part by a $4.5 million grant. Part of the grant money was used to improve electricity generation. Alabama Power received a $6 million grant for modernizing its facilities, and a Birmingham company received $164.5 million as a smart-grid investment. In order to encourage energy-efficient manufacturing, some companies received federal tax credits.
The state has also used grant money and funds from private lenders to establish programs such as AlabamaSAVES (Sustainable and Verifiable Energy Savings), which was launched in November 2010. This revolving loan program provides loans of $250,000 to $4 million to industries and businesses involved in energy-efficient modernizations. Qualifying projects range from upgrading heating and cooling systems and installing energy-saving windows and doors to converting to renewable energy systems.
While the use of wind power in Alabama has not received a good deal of attention, a 110-megawatt plant was constructed in McIntosh in 1991. This plant incorporates compressed airenergy storage (CAES) technology, using compression trains that are linked to generator trains by way of a common motor-generator and a series of clutches. The plant has operated with 95 percent reliability since it was erected. Little has been done to harness solar power in the state, but residents can receive tax credits for converting to solar energy.
Bibliography
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National Renewable Energy Laboratory. “State of the States 2009: Renewable Energy Development and the Role of Policy.” http://www.nrel.gov/docs/fy10osti/46667.pdf. Accessed 29 July 2024.
Noles, James L. Alabama Power Company. Charleston, SC: Arcadia, 2001.
"Profile Analysis." US Energy Information Agency (EIA), 19 Oct. 2023, www.eia.gov/state/analysis.php. Accessed 29 July 2024.
Solomon, Barry D., and Valerie A. Luzadis. Renewable Energy From Forest Resources in the United States. New York: Routledge, 2009.
Spencer, Thomas. “Alabama Plant to Begin Producing Ethanol From Waste Wood.” Birmingham News, June 11, 2008.
State of Alabama Energy Sector Risk Profile. US Department of Energy, 2016, energy.gov/sites/prod/files/2016/09/f33/AL‗Energy%20Sector%20Risk%20Profile.pdf. Accessed 29 July 2024.