Poor ratings fire up operators

Sydney Morning Herald
Thursday 4/9/2008 Page: 2

ENVIRONMENT group WWF has launched an attack on Australia's power generators, accusing leading energy companies of being "dinosaurs" and "horribly unprepared" for a future in which greenhouse gas emissions must be reduced. Releasing its Carbon Future Scorecard, WWF accused the companies of lobbying for compensation for their plants under the Rudd Government's Carbon Pollution Reduction Scheme but failing to invest in technology to cut emissions at their most polluting power plants.

"Despite knowing for 20 years that carbon emissions would have to be cut, the carbon footprints of the worst performing companies from power generation and mining interests remain enormous and extremely damaging", WWF's sustainability manager, Paul Toni, said yesterday.

"It's remarkable how these dinosaur companies can complain about their future and ask for handouts but do zero to reduce their emissions." Two highly profitable global companies, Rio Tinto and Alcoa, were named as owning the worst performing power plants. Both are linked to aluminium smelters, one in Queensland and one in Victoria. The global energy company Intergen, which has two Queensland coal-fired generators, was also labelled a poor performer. On a five-star rating, the three companies scored "nil".

The three NSW power companies received two stars. The three, which the Government is trying to privatise, were saved from the lowest rating because of their research and investment in cleaner power sources and "clean coal" experimental plants. The survey judged the generators on whether they had invested in alternative power sources and whether they set greenhouse gas reduction targets. But it also took into account whether they were investing in research for renewable energy and "clean coal" demonstration plants.

The three named as the worst performers yesterday strongly disputed the ranking. Rio Tinto was stung by its "nil" score because of its majority ownership of the Gladstone power generator. A Rio spokesman, Ian Head, said the company operating the power plant on its behalf failed to answer the survey and highlight the company's investment in clean coal technology including contributing to the Coal2l Fund.

Rio Tinto also pointed to its power plants in WA and Tasmania which use gas and hydro and produce less greenhouse gas. Alcoa also reacted angrily. A spokeswoman, Michaela Southby, said it was "absurd and inaccurate" to say it was unprepared for a low-carbon future. Alcoa globally had reduced its direct greenhouse gas emissions from its smelting and other operations by 33 per cent compared with 1990 levels.

The WWF survey specifically relates to Alcoa's brown coal power plant at Anglesea in Victoria. Ms Southby said that plant "runs at benchmark efficiency for a plant of its age" and had the lowest greenhouse gas emissions per megawatt hour compared with the state's other brown coal plants. The head of Intergen, Brent Gunther, defended his company's plants in Queensland saying they used "supercritical" black coal technology making their generators Australia's most advanced coal-fired power stations.