Age
Friday 11/3/2011, Page: 6
GOVERNMENT adviser Ross Garnaut has criticised media treatment of climate change, suggesting it has undermined support for action by giving equal weight to mainstream peer reviewed science and sceptical views not backed by published evidence.
The latest update to Professor Garnaut's 2008 climate change review, launched in Hobart last night, finds that the world is continuing to warm. He also found that the evidence that human greenhouse gas emissions are the primary cause has strengthened beyond the high level of certainty of three years ago.
Despite this, public confidence in climate science seemed to have weakened in Australia, in part due to media coverage of the issue. "If you take our mainstream media, it will often seek to provide some balance between people who base their views on the mainstream science and people who don't", he said. "That's a very strange sort of balance. It's a balance of words, and not a balance of scientific authority".
Professor Garnaut said the decline in public acceptance of climate science came amid increasing suggestions in scientific literature that large damage could start at a lower level of warming than the threshold of 2° above pre industrial levels recognised by the United Nations. The globe has warmed by about 0.9°. The latest Garnaut update the fifth of eight to be published before the end of March finds that not only is the globe warming, but that most physical and biological systems are changing at least as quickly as predicted.
The pace at which sea levels are rising has accelerated. While the likely increase this century remains uncertain, Professor Garnaut said credible estimates ranged up to 1.9 metres. The climate change department estimates up to 247,600 existing homes worth up to $63 billion are at risk of inundation from a sea level rise of 1.1 metres.
"It is an awful reality that no major developments in the science hold out realistic hope that the judgments of the 2008 review erred in the direction of overestimating the risks", Professor Garnaut said. He said he feared scientific projections to date might have been overly conservative.
Professor Garnaut's criticism of media coverage came as prominent Liberal frontbencher Malcolm Turnbull angrily rejected suggestions from Sydney talkback radio host David Oldfield, formerly involved with One Nation, that he was undermining Tony Abbott's leadership and pressing cross benchers to support the carbon tax. "He's just basically made that up", an angry Mr Turnbull said. "There is no basis in fact".
Tuesday, 15 March 2011
Hot rock power producer pounded
Courier Mail
Thursday 10/3/2011, Page: 55
GeoDynamics, Australia's biggest listed geothermal energy developer, will be ejected from the ASX 300 Index this month after hitting record lows and spearheading the losses that have plagued the sector. Shares in all the larger listed geothermal companies, including Brisbane based GeoDynamics and Panax Geothermal, and South Australia's Petratherm, are all at or close to record or 52 week lows.
Shares in GeoDynamics, which has the largest market capitalisation at $109 million, rallied in November after it said a 50 50 venture with Origin Energy to exploit shallow geothermal energy sources in South Australia's Cooper Basin was set to yield initial results before the end of June. Despite the effects of recent weather, the company still expects those initial results by June. But its shares have slid since February when its first-half net loss widened to $8.3 million from $5.5 million.
GeoDynamics' focus is its 70% owned project (Origin Energy owns the other 30%) in the Cooper Basin, which aims to tap heat in 4km deep granites to produce continuous, 24 hour power supply but without the greenhouse gas emissions and heavy water consumption of coal and gas fired power plants. The 50 50 venture targets heat at shallower depths and is less risky, so may bring geothermal power on line more quickly. But it could deliver only hundreds of MWs of power supply, while the deep venture has potential to produce thousands of MWs.
GeoDynamics, whose Jolokia 1 well is the hottest of its kind known in the world, is a global pioneer in hot fractured rock technology and a well blowout in 2009 delayed until 2013 a final investment decision on a 25 MW demonstration plant. Research firm Morningstar this week kept its "avoid" rating on GeoDynamics shares and urged clients to await more technological development progress before making any new investment in the stock. Morningstar cited concern over the company's rapid rate of cash outflow.
GeoDynamics recently secured a $90 million federal grant that underpins its operations up to the targeted commissioning of the 25 MW power plant in early 2015, Analysts also say the planned carbon price is likely to aid investment in Australia's gas producers but it will take other measures, such as national feed-in tariffs and more research and development support, to boost market support for renewable energy developers including geothermal and solar companies.
Investment research firm Bakers Group is more positive on the outlook for Panax Geothermal, recently rating its stock a "strong buy" but with high volatility likely. It said Panax Geothermal, unlike GeoDynamics, was focused on conventional geothermal technology for its projects in Australia, Indonesia and India. Bakers Group said because the technology was conventional, it was lower risk, and Panax Geothermal had several projects in advanced development stages. Panax Geothermal yesterday closed down 4% at 4.7¢. GeoDynamics was down 3% at 31.5¢.
Thursday 10/3/2011, Page: 55
GeoDynamics, Australia's biggest listed geothermal energy developer, will be ejected from the ASX 300 Index this month after hitting record lows and spearheading the losses that have plagued the sector. Shares in all the larger listed geothermal companies, including Brisbane based GeoDynamics and Panax Geothermal, and South Australia's Petratherm, are all at or close to record or 52 week lows.
Shares in GeoDynamics, which has the largest market capitalisation at $109 million, rallied in November after it said a 50 50 venture with Origin Energy to exploit shallow geothermal energy sources in South Australia's Cooper Basin was set to yield initial results before the end of June. Despite the effects of recent weather, the company still expects those initial results by June. But its shares have slid since February when its first-half net loss widened to $8.3 million from $5.5 million.
GeoDynamics' focus is its 70% owned project (Origin Energy owns the other 30%) in the Cooper Basin, which aims to tap heat in 4km deep granites to produce continuous, 24 hour power supply but without the greenhouse gas emissions and heavy water consumption of coal and gas fired power plants. The 50 50 venture targets heat at shallower depths and is less risky, so may bring geothermal power on line more quickly. But it could deliver only hundreds of MWs of power supply, while the deep venture has potential to produce thousands of MWs.
GeoDynamics, whose Jolokia 1 well is the hottest of its kind known in the world, is a global pioneer in hot fractured rock technology and a well blowout in 2009 delayed until 2013 a final investment decision on a 25 MW demonstration plant. Research firm Morningstar this week kept its "avoid" rating on GeoDynamics shares and urged clients to await more technological development progress before making any new investment in the stock. Morningstar cited concern over the company's rapid rate of cash outflow.
GeoDynamics recently secured a $90 million federal grant that underpins its operations up to the targeted commissioning of the 25 MW power plant in early 2015, Analysts also say the planned carbon price is likely to aid investment in Australia's gas producers but it will take other measures, such as national feed-in tariffs and more research and development support, to boost market support for renewable energy developers including geothermal and solar companies.
Investment research firm Bakers Group is more positive on the outlook for Panax Geothermal, recently rating its stock a "strong buy" but with high volatility likely. It said Panax Geothermal, unlike GeoDynamics, was focused on conventional geothermal technology for its projects in Australia, Indonesia and India. Bakers Group said because the technology was conventional, it was lower risk, and Panax Geothermal had several projects in advanced development stages. Panax Geothermal yesterday closed down 4% at 4.7¢. GeoDynamics was down 3% at 31.5¢.
We must face the facts
West Australian
Tuesday 8/3/2011, Page: 22
At first it seemed like a parody, but then it became clear that the letters published in The Weekend West (5/3) were from people who really believe in what they write. I agree on one point: the carbon tax in its current form is not really adequate to address all the issues we are facing globally This should not detract from the science behind global warming it is anthropogenic.
The only thing that nature has done is to throw in the occasional spanner in the form of a volcanic eruption which reduced the temperatures briefly The carbon emitted from volcanoes is ridiculously little when compared with human production. Volcanoes have always erupted, but the level of CO₂ increase in the atmosphere has been almost exponential since we started industrialisation.
All the letters have one common theme: let's put our head in the sand, ignore the science, hold on to the status quo for as long as we can because we hate change. And people in WA in particular have shown that we would really like things to continue on for ever, just the way they are, so we don't have to change.
It appalls me that people will ignore what is staring them in the face until it hits them and then there will be complaints about why nothing was done sooner. To say that our contribution to the problem is small is, to some extent, correct; but finger pointing has never led to change and in reality is an argument used to avoid necessary change we'll do something if the great polluters do something.
We are facing catastrophic changes. Have people not seen the news about flooding in Queensland? Have people not heard about the driest winter on record? The longest period of high temperatures which we just had? Are we really that ignorant or do we just don't want to know because it would force us to do something about it?
Let's face the facts: climate change is happening whether we like it or not. We can try to ignore it, but it is still happening and our actions today will determine how we are going to live in this country over the next generations. If a tax is required to force people to change their energy consumption habits and to force people to invest in renewable energy, then this is something that in the long run will benefit all of us.
Karsten Winter, Nollamara.
Tuesday 8/3/2011, Page: 22
At first it seemed like a parody, but then it became clear that the letters published in The Weekend West (5/3) were from people who really believe in what they write. I agree on one point: the carbon tax in its current form is not really adequate to address all the issues we are facing globally This should not detract from the science behind global warming it is anthropogenic.
The only thing that nature has done is to throw in the occasional spanner in the form of a volcanic eruption which reduced the temperatures briefly The carbon emitted from volcanoes is ridiculously little when compared with human production. Volcanoes have always erupted, but the level of CO₂ increase in the atmosphere has been almost exponential since we started industrialisation.
All the letters have one common theme: let's put our head in the sand, ignore the science, hold on to the status quo for as long as we can because we hate change. And people in WA in particular have shown that we would really like things to continue on for ever, just the way they are, so we don't have to change.
It appalls me that people will ignore what is staring them in the face until it hits them and then there will be complaints about why nothing was done sooner. To say that our contribution to the problem is small is, to some extent, correct; but finger pointing has never led to change and in reality is an argument used to avoid necessary change we'll do something if the great polluters do something.
We are facing catastrophic changes. Have people not seen the news about flooding in Queensland? Have people not heard about the driest winter on record? The longest period of high temperatures which we just had? Are we really that ignorant or do we just don't want to know because it would force us to do something about it?
Let's face the facts: climate change is happening whether we like it or not. We can try to ignore it, but it is still happening and our actions today will determine how we are going to live in this country over the next generations. If a tax is required to force people to change their energy consumption habits and to force people to invest in renewable energy, then this is something that in the long run will benefit all of us.
Karsten Winter, Nollamara.
Monday, 14 March 2011
Clean steel a blast from the future
Sydney Morning Herald
Tuesday 8/3/2011, Page: 5
PAUL O'MALLEY'S claim that a significant breakthrough in cutting steel making emissions is 20 to 40 years away appears to put little faith in imminent technologies. Climate Action Network Europe, the well regarded non government organisation, reports some technologies for cutting emissions, while costly, may not be that far away.
Last week Blue-Scope Steel's chief who is fast becoming the industry's figurehead against the federal government's carbon tax said 80% of Blue-Scope Steel's emissions come from steel making. "There is no technology available anywhere in the world that can see virgin iron produced from blast furnaces without CO₂ emissions. We are probably 20 to 40 years away from that kind of breakthrough", Mr O'Malley said.
According to the European report, however, there are four technologies that could reduce emissions significantly. The closest to being introduced is the Fastmelt process, using a redesigned blast furnace to reduce iron ore more efficiently. Adding carbon capture and storage (CCS) could reduce emissions in steel making by 55%, the report says. Top gas recycling, recently demonstrated in Sweden, is expected to be in use by 2020. It reuses the energy of blast furnaces, reduces coke consumption and separates CO₂, for sequestration.
The HIsarna steelmaking process, Climate Action Network says, is "the most promising route to low carbon steel making at the moment". It uses a cyclone converter furnace rather than a blast furnace, skipping the process of making pig iron pellets. It can provide an 80% reduction in emissions with CCS, or 20% without. Tata Power Steel in Europe, formerly Corus IJmuiden, has advanced in the pilot stage but deployment could still take until 2025.
The fourth technology is electrolysis, which would reduce iron ore by adding electrons to iron from electricity. "This theoretically allows for complete carbon neutral steel production if the applied electricity is produced without generating CO₂, emissions", the network said of the process, which is in only its pre pilot phase.
An Australian company, Wasabi Energy, is using Kalina cycle technology to capture waste heat from steel making and generate electricity, cutting emissions through energy efficiency measures. Dominique La Fontaine, the principal climate change consultant for Tasmanian group Pitt and Sherry, said the federal government needed to tailor compensation for steel makers to encourage the uptake of new technologies.
"It is a tough challenge from the point of view of the steel industry", he said. "But how much is this due to technological barriers and how much is it because of commercial issues such as asset renewal strategies?" Andrew Purvis, Blue-Scope Steel's vice president environment, said the company was working on finding a solution with rival OneSteel and the CSIRO as part of industry "CO₂, Breakthrough" programs.
Tuesday 8/3/2011, Page: 5
PAUL O'MALLEY'S claim that a significant breakthrough in cutting steel making emissions is 20 to 40 years away appears to put little faith in imminent technologies. Climate Action Network Europe, the well regarded non government organisation, reports some technologies for cutting emissions, while costly, may not be that far away.
Last week Blue-Scope Steel's chief who is fast becoming the industry's figurehead against the federal government's carbon tax said 80% of Blue-Scope Steel's emissions come from steel making. "There is no technology available anywhere in the world that can see virgin iron produced from blast furnaces without CO₂ emissions. We are probably 20 to 40 years away from that kind of breakthrough", Mr O'Malley said.
According to the European report, however, there are four technologies that could reduce emissions significantly. The closest to being introduced is the Fastmelt process, using a redesigned blast furnace to reduce iron ore more efficiently. Adding carbon capture and storage (CCS) could reduce emissions in steel making by 55%, the report says. Top gas recycling, recently demonstrated in Sweden, is expected to be in use by 2020. It reuses the energy of blast furnaces, reduces coke consumption and separates CO₂, for sequestration.
The HIsarna steelmaking process, Climate Action Network says, is "the most promising route to low carbon steel making at the moment". It uses a cyclone converter furnace rather than a blast furnace, skipping the process of making pig iron pellets. It can provide an 80% reduction in emissions with CCS, or 20% without. Tata Power Steel in Europe, formerly Corus IJmuiden, has advanced in the pilot stage but deployment could still take until 2025.
The fourth technology is electrolysis, which would reduce iron ore by adding electrons to iron from electricity. "This theoretically allows for complete carbon neutral steel production if the applied electricity is produced without generating CO₂, emissions", the network said of the process, which is in only its pre pilot phase.
An Australian company, Wasabi Energy, is using Kalina cycle technology to capture waste heat from steel making and generate electricity, cutting emissions through energy efficiency measures. Dominique La Fontaine, the principal climate change consultant for Tasmanian group Pitt and Sherry, said the federal government needed to tailor compensation for steel makers to encourage the uptake of new technologies.
"It is a tough challenge from the point of view of the steel industry", he said. "But how much is this due to technological barriers and how much is it because of commercial issues such as asset renewal strategies?" Andrew Purvis, Blue-Scope Steel's vice president environment, said the company was working on finding a solution with rival OneSteel and the CSIRO as part of industry "CO₂, Breakthrough" programs.
Renewable energy not powering electricity bill hikes
www.cleanenergycouncil.org.au
7 March 2011
Sharp rises in household power bills are being driven by rising network costs and retailer margins not renewable energy according to new analysis released today. In a new report by independent energy market analysts ROAM Consulting, renewable energy schemes were found to only contribute between 4 and 7% to power bills, at the same time delivering Australia's main response to the economic threat of climate change.
Clean Energy Council Chief Executive Matthew Warren said rolling out clean energy around Australia was the start of the transformation required to clean up Australia's electricity supply without imposing major costs on households. "Electricity bills are going up, but renewable energy is not to blame", Mr Warren said.
"While we are finalising the design of a carbon price, the national 20% renewable energy target remains the single largest greenhouse gas abatement program in Australian history. "Over the next decade it will cut Australia's greenhouse emissions by around 380 million tonnes of greenhouse gases as the contribution of renewable energy increases year on year", he said. Network costs, retailer margins and wholesale electricity prices account for more than 90% of power bills, with necessary investment in network upgrades being the biggest single driver of power price hikes.
The report for the Clean Energy Council by ROAM Consulting, "Impact of renewable energy policies on retail electricity prices", showed the combined cost of large and small scale renewable energy schemes and state based feed in tariffs from 2011 - 2020 would make up 4.7% of electricity bills. According to the report: "Even in the most aggressive scenarios the combined renewable schemes are likely to contribute less than 10% of retail electricity tariffs".
To access the full report, click here.
7 March 2011
Sharp rises in household power bills are being driven by rising network costs and retailer margins not renewable energy according to new analysis released today. In a new report by independent energy market analysts ROAM Consulting, renewable energy schemes were found to only contribute between 4 and 7% to power bills, at the same time delivering Australia's main response to the economic threat of climate change.Clean Energy Council Chief Executive Matthew Warren said rolling out clean energy around Australia was the start of the transformation required to clean up Australia's electricity supply without imposing major costs on households. "Electricity bills are going up, but renewable energy is not to blame", Mr Warren said.
"While we are finalising the design of a carbon price, the national 20% renewable energy target remains the single largest greenhouse gas abatement program in Australian history. "Over the next decade it will cut Australia's greenhouse emissions by around 380 million tonnes of greenhouse gases as the contribution of renewable energy increases year on year", he said. Network costs, retailer margins and wholesale electricity prices account for more than 90% of power bills, with necessary investment in network upgrades being the biggest single driver of power price hikes.
The report for the Clean Energy Council by ROAM Consulting, "Impact of renewable energy policies on retail electricity prices", showed the combined cost of large and small scale renewable energy schemes and state based feed in tariffs from 2011 - 2020 would make up 4.7% of electricity bills. According to the report: "Even in the most aggressive scenarios the combined renewable schemes are likely to contribute less than 10% of retail electricity tariffs".
To access the full report, click here.
Wind power reduces price of electricity
Summaries - Australian Financial Review
7 March 2011, Page: 51
The hidden costs of nuclear power are often overlooked, and they include the high cost of waste disposal, liabilities and insurance costs, costs which in international experience have been borne by taxpayers. Wind power, on the other hand, is cheap to set up and maintain, and as recently witnessed in South Australia, can supplement the grid at times of peak demand. The Australian Energy Market Operator reported last year that wind power in South Australia generates 'enough reserve power into the grid to safeguard Adelaide's supply.' (Andrew Richards is the executive manager of Government and Corporate Affairs for Pacific Hydro.)
7 March 2011, Page: 51
The hidden costs of nuclear power are often overlooked, and they include the high cost of waste disposal, liabilities and insurance costs, costs which in international experience have been borne by taxpayers. Wind power, on the other hand, is cheap to set up and maintain, and as recently witnessed in South Australia, can supplement the grid at times of peak demand. The Australian Energy Market Operator reported last year that wind power in South Australia generates 'enough reserve power into the grid to safeguard Adelaide's supply.' (Andrew Richards is the executive manager of Government and Corporate Affairs for Pacific Hydro.)
Iceland set to harness powers from below
Age
7 March 2011, Page: 9
REYKJAVIK. ICELAND EUROPEANS left stranded at airports last year as an Icelandic volcano spewed ash across the continent may soon benefit from the power that seethes beneath the remote north Atlantic island. Iceland is doing a feasibility study into building a 1200 kilometre power cable to Scotland to transport as much as 18 terawatt hours of geothermal and hydropower a year enough to fuel 5 million homes.
"Icelanders live with earthquakes and volcanic activity, but the benefits are that now we can monetise these powers", said Valdimar Armann, an economist at Reykjavik based asset manager GAMMA, who estimates yearly clean energy exports could reach about a 10th of the island's $Al2 billion economy.
The nation is trying to emerge from Europe's biggest banking meltdown this century to restyle itself as one of the continent's main sources of renewable energy. The power cable, which would be the longest of its kind, would come as the EU strives to reach its target of 20% clean energy by 2020. Landsvirkjun, a state owned utility that produces 75% of Iceland's electricity, is driving the feasibility study for the $2.1 billion power cable project.
While investors are already more upbeat about Iceland's prospects of recovery, the island still has a long way to go before it can restore its former wealth. Its 2008 banking crisis sent the krona down 80% against the euro offshore and shaved almost a fifth off disposable incomes the following year. Iceland may be unable to realise its geothermal dreams without some form of foreign investment.
7 March 2011, Page: 9
REYKJAVIK. ICELAND EUROPEANS left stranded at airports last year as an Icelandic volcano spewed ash across the continent may soon benefit from the power that seethes beneath the remote north Atlantic island. Iceland is doing a feasibility study into building a 1200 kilometre power cable to Scotland to transport as much as 18 terawatt hours of geothermal and hydropower a year enough to fuel 5 million homes.
"Icelanders live with earthquakes and volcanic activity, but the benefits are that now we can monetise these powers", said Valdimar Armann, an economist at Reykjavik based asset manager GAMMA, who estimates yearly clean energy exports could reach about a 10th of the island's $Al2 billion economy.
The nation is trying to emerge from Europe's biggest banking meltdown this century to restyle itself as one of the continent's main sources of renewable energy. The power cable, which would be the longest of its kind, would come as the EU strives to reach its target of 20% clean energy by 2020. Landsvirkjun, a state owned utility that produces 75% of Iceland's electricity, is driving the feasibility study for the $2.1 billion power cable project.
While investors are already more upbeat about Iceland's prospects of recovery, the island still has a long way to go before it can restore its former wealth. Its 2008 banking crisis sent the krona down 80% against the euro offshore and shaved almost a fifth off disposable incomes the following year. Iceland may be unable to realise its geothermal dreams without some form of foreign investment.
Saturday, 12 March 2011
Electricity producers cut emissions
Sydney Morning Herald
3 March 2011, Page: 9
BIG electricity generators reduced their emissions of greenhouse gases last financial year but still dominate the corporate sector's carbon footprint, according to the latest federal government statistics. The national greenhouse and energy figures, released last week, show a handful of electricity generators were responsible for nearly half the annual greenhouse gas emissions reported by 300 companies and large government owned businesses.
The country's 10 biggest electricity generation companies reported emitting 162.8 million tonnes of CO₂ equivalent gases in 2009/10, a 4.8% decrease on the previous financial year. The largest emitters outside the electricity sector were the steelmaker Blue-Scope Steel, miners Rio Tinto, BHP Billiton and Xstrata, the gas producer Woodside Petroleum and aluminium producer Alcoa.
Each of these companies reported more than 6 million tonnes of direct emissions directly generated from their own production activities and not including indirect emissions from their use of electricity. The biggest corporate emitter was International Power, which operates Victoria's brown coal fired Hazelwood power station and Loy Yang power station along with power stations in South Australia and Western Australia.
3 March 2011, Page: 9
BIG electricity generators reduced their emissions of greenhouse gases last financial year but still dominate the corporate sector's carbon footprint, according to the latest federal government statistics. The national greenhouse and energy figures, released last week, show a handful of electricity generators were responsible for nearly half the annual greenhouse gas emissions reported by 300 companies and large government owned businesses.
The country's 10 biggest electricity generation companies reported emitting 162.8 million tonnes of CO₂ equivalent gases in 2009/10, a 4.8% decrease on the previous financial year. The largest emitters outside the electricity sector were the steelmaker Blue-Scope Steel, miners Rio Tinto, BHP Billiton and Xstrata, the gas producer Woodside Petroleum and aluminium producer Alcoa.
Each of these companies reported more than 6 million tonnes of direct emissions directly generated from their own production activities and not including indirect emissions from their use of electricity. The biggest corporate emitter was International Power, which operates Victoria's brown coal fired Hazelwood power station and Loy Yang power station along with power stations in South Australia and Western Australia.
Home lag in energy efficiency
Hobart Mercury
3 March 2011, Page: 14
A TASMANIAN building expert says the state is lagging behind the rest of the nation in energy efficiency and the State Government has some serious work ahead if it is to get homes up to standard. Energy efficiency advocate Phil Harrington said Tasmania had a lot of catching up to do with the rest of Australia, having been the last to adopt a five star energy efficiency policy, which is scheduled to become six stars nationwide in May.
"There just hasn't been enough vigilance on building regulations to ensure homes are being built up to the five star standard", he said. "That's not to say that builders are shirking their responsibility but there need to be secure measures to ensure that all homes are being built with five star energy efficiency". Mr Harrington said it would make little difference if the state was to move to a six star minimum standard, if homes still hadn't met the current five star standard.
"It's a bit of a moot point in the end", he said. "It would make little difference, as the rate of five star homes in Tasmania is already below par so how can we expect to move to six stars?" Archicentre regional manager David Hellett said it was in people's best interests to ensure builders had met the five star standard when building their homes. "Make sure you're satisfied that the standard has been met, because you don't want to find out it hasn't later down the hack", he said.
As power bills continued to rise, there was a concern the lack of energy efficiency in homes could drastically affect consumption. "The amount of homes in the state that are wasting power because of poor energy efficiency is staggering", Mr Harrington said. "If people just took a few measures to properly insulate and seal their homes, they would see a drastic difference in their power bills". He said effective insulation and weather stripping were two key components of ensuring an energy efficient home. "You can increase your home's insulation from one to four stars just by putting in proper insulation". Mr Harrington said.
3 March 2011, Page: 14
A TASMANIAN building expert says the state is lagging behind the rest of the nation in energy efficiency and the State Government has some serious work ahead if it is to get homes up to standard. Energy efficiency advocate Phil Harrington said Tasmania had a lot of catching up to do with the rest of Australia, having been the last to adopt a five star energy efficiency policy, which is scheduled to become six stars nationwide in May.
"There just hasn't been enough vigilance on building regulations to ensure homes are being built up to the five star standard", he said. "That's not to say that builders are shirking their responsibility but there need to be secure measures to ensure that all homes are being built with five star energy efficiency". Mr Harrington said it would make little difference if the state was to move to a six star minimum standard, if homes still hadn't met the current five star standard.
"It's a bit of a moot point in the end", he said. "It would make little difference, as the rate of five star homes in Tasmania is already below par so how can we expect to move to six stars?" Archicentre regional manager David Hellett said it was in people's best interests to ensure builders had met the five star standard when building their homes. "Make sure you're satisfied that the standard has been met, because you don't want to find out it hasn't later down the hack", he said.
As power bills continued to rise, there was a concern the lack of energy efficiency in homes could drastically affect consumption. "The amount of homes in the state that are wasting power because of poor energy efficiency is staggering", Mr Harrington said. "If people just took a few measures to properly insulate and seal their homes, they would see a drastic difference in their power bills". He said effective insulation and weather stripping were two key components of ensuring an energy efficient home. "You can increase your home's insulation from one to four stars just by putting in proper insulation". Mr Harrington said.
Solar farms deal to soak up millions
Courier Mail
2 March 2011, Page: 47
A QUEENSLAND solar power company has secured contracts to build solar farms worth $185 million in Italy, including projects that will dwarf any solar farm currently operating in Australia. Eco Kinetics, which is based at Stapylton, south of Brisbane, has signed a heads of agreement for two contracts to build a combined 40 MWs of installed electricity capacity, including one 20 MW project and one 10 MW facility. The solar farms will be owned and operated by investment companies from Europe, the US and South East Asia.
Currently, Australia's largest solar power station is a 4 MW facility at Liddell in New South Wales. Eco Kinetics, which was acquired in January last year by Sydney based renewable energy company CBD Energy, provides engineering design, supply and installation services for wind and solar power facilities.
CBD Energy yesterday said construction was scheduled to start in May. CBD Energy also yesterday reported its financial results for the six months to December 31, which showed how Queensland based Eco Kinetics powered a swing back to profitability for its parent company.
Eco Kinetics' total revenue for the six months was $60.4 million, with a pretax profit of $7.1 million. Parent CBD Energy's consolidated revenue was $74 million, up from $5.9 million a year earlier, and its net profit was $2.37 million, up from a year ago loss of $3.49 million. CBD Energy, whose chairman is former deputy prime minister and National Party leader Mark Vaile, said it continues to experience significant growth, mainly driven by increasing householder demand for solar rooftop installations.
2 March 2011, Page: 47
A QUEENSLAND solar power company has secured contracts to build solar farms worth $185 million in Italy, including projects that will dwarf any solar farm currently operating in Australia. Eco Kinetics, which is based at Stapylton, south of Brisbane, has signed a heads of agreement for two contracts to build a combined 40 MWs of installed electricity capacity, including one 20 MW project and one 10 MW facility. The solar farms will be owned and operated by investment companies from Europe, the US and South East Asia.
Currently, Australia's largest solar power station is a 4 MW facility at Liddell in New South Wales. Eco Kinetics, which was acquired in January last year by Sydney based renewable energy company CBD Energy, provides engineering design, supply and installation services for wind and solar power facilities.
CBD Energy yesterday said construction was scheduled to start in May. CBD Energy also yesterday reported its financial results for the six months to December 31, which showed how Queensland based Eco Kinetics powered a swing back to profitability for its parent company.
Eco Kinetics' total revenue for the six months was $60.4 million, with a pretax profit of $7.1 million. Parent CBD Energy's consolidated revenue was $74 million, up from $5.9 million a year earlier, and its net profit was $2.37 million, up from a year ago loss of $3.49 million. CBD Energy, whose chairman is former deputy prime minister and National Party leader Mark Vaile, said it continues to experience significant growth, mainly driven by increasing householder demand for solar rooftop installations.
No carbon tax now means a tax on future generation
Canberra Times
1 March 2011, Page: 10
I have had a gutful of the unsubstantiated whinging by the Coalition, the Chamber of Commerce and the rest of the flat earth, climate contrarian no hopers getting so much attention in the media.
How does $26 a tonne for carbon convert into $300 on a household's electricity bill, as asserted by Greg Hunt on Lateline on Friday night? A typical coal fired plant produces one tonne of CO₂ to produce 1 MW of electricity. That's 2.6¢ per kW. A brown coal plant might produce 20% more CO₂, bringing the cost up to 3¢ per kW.
And that assumes all our power comes from dirty coal. I encourage all your readers to pull out their electricity bills and work out what the true cost on their power bill will be. My household uses less than 15 kW per day so the levy comes to a whopping 39¢ per day or $142 per year. Even assuming the average Australian house uses 20 kW per day gives just 52¢ per day. Neither of these figures comes close to the $300 so prominently spouted by the fear mongers.
And instead of whinging about renewable energy raising electricity bills, when will people like Barnaby Joyce concede that it is mainly the rapid adoption of air conditioning over the past decade that has required the construction of new infrastructure to satisfy the added electrical demand? The inflation I feel in my electricity bill has more to do with runaway demand from people installing air conditioning than grid connected solar arrays.
And the argument that Australia shouldn't go first in adopting a carbon tax is absurd. Canada, Denmark, Britain, Germany and others have had formal carbon pricing for many years and the most recent economic evaluation of the impact is that there isn't any or maybe a slight improvement in global competitiveness in the case of Denmark. Australia can't go first we have already missed the starting gun.
Brad Sherman, Duffy
1 March 2011, Page: 10
I have had a gutful of the unsubstantiated whinging by the Coalition, the Chamber of Commerce and the rest of the flat earth, climate contrarian no hopers getting so much attention in the media.
How does $26 a tonne for carbon convert into $300 on a household's electricity bill, as asserted by Greg Hunt on Lateline on Friday night? A typical coal fired plant produces one tonne of CO₂ to produce 1 MW of electricity. That's 2.6¢ per kW. A brown coal plant might produce 20% more CO₂, bringing the cost up to 3¢ per kW.
And that assumes all our power comes from dirty coal. I encourage all your readers to pull out their electricity bills and work out what the true cost on their power bill will be. My household uses less than 15 kW per day so the levy comes to a whopping 39¢ per day or $142 per year. Even assuming the average Australian house uses 20 kW per day gives just 52¢ per day. Neither of these figures comes close to the $300 so prominently spouted by the fear mongers.
And instead of whinging about renewable energy raising electricity bills, when will people like Barnaby Joyce concede that it is mainly the rapid adoption of air conditioning over the past decade that has required the construction of new infrastructure to satisfy the added electrical demand? The inflation I feel in my electricity bill has more to do with runaway demand from people installing air conditioning than grid connected solar arrays.
And the argument that Australia shouldn't go first in adopting a carbon tax is absurd. Canada, Denmark, Britain, Germany and others have had formal carbon pricing for many years and the most recent economic evaluation of the impact is that there isn't any or maybe a slight improvement in global competitiveness in the case of Denmark. Australia can't go first we have already missed the starting gun.
Brad Sherman, Duffy
Friday, 11 March 2011
Federal spending favours fossil fuels, study finds
Age
1 March 2011, Page: 7
AUSTRALIAN taxpayers spend 11 times more encouraging the use of fossil fuels than on climate change programs and the sum is growing. fossil fuel incentives and subsidies will cost an estimated $12.2 billion this financial year, compared with $1.1 billion spent on programs designed to cut greenhouse gas emissions and boost clean energy research. An Australian Conservation Foundation analysis found the cost of the incentives has increased $1.6 billion since 2007-08, the final year of the Howard government, while spending on climate programs had jumped just $500 million.
The biggest fossil fuel incentives were in unclaimed revenue, including nearly $5 billion in fuel tax rebates for greenhouse intensive industries. More than $1.1 billion was spent on fringe benefits tax concession for company cars a scheme that leads to people driving further than they otherwise would to gain access to a larger rebate.
ACF executive director Don Henry said the government must cut fossil fuel incentives at the May budget if it was to convince the community it was serious about tackling climate change. Keeping them would undermine the value of a carbon tax, he said. "Funding these is bad for the climate and it is bad economics", he said.
The analysis comes as documents released under freedom of information laws showed bureaucrats had identified up to 17 programs costing more than $8 billion a year that may have to be cut for Australia to meet a G20 agreement that member countries eliminate inefficient fossil fuel subsidies that lead to wasteful consumption.
Treasurer Wayne Swan has argued that Australia had no programs that met the G20's definition of a fossil fuel subsidy. Mr Henry said the foundation's analysis included all programs that made it cheaper to use fossil fuels. You can get into an arcane economic debate about what is defined as a subsidy and what isn't at the end of the day this is public money that is going to businesses to pollute", he said.
He said the fringe benefits tax concession for company cars was a "virtual pollution factory" equal to a mediumsized coal fired plant each year. Mr Swan's spokesman, Adam Collins, last night said none of the programs qualified as subsidies under the G20 definition. "All credible analysis shows the only way to meet our targets is by putting a price on carbon through a market mechanism so that's exactly what we are doing".
1 March 2011, Page: 7
AUSTRALIAN taxpayers spend 11 times more encouraging the use of fossil fuels than on climate change programs and the sum is growing. fossil fuel incentives and subsidies will cost an estimated $12.2 billion this financial year, compared with $1.1 billion spent on programs designed to cut greenhouse gas emissions and boost clean energy research. An Australian Conservation Foundation analysis found the cost of the incentives has increased $1.6 billion since 2007-08, the final year of the Howard government, while spending on climate programs had jumped just $500 million.
The biggest fossil fuel incentives were in unclaimed revenue, including nearly $5 billion in fuel tax rebates for greenhouse intensive industries. More than $1.1 billion was spent on fringe benefits tax concession for company cars a scheme that leads to people driving further than they otherwise would to gain access to a larger rebate.
ACF executive director Don Henry said the government must cut fossil fuel incentives at the May budget if it was to convince the community it was serious about tackling climate change. Keeping them would undermine the value of a carbon tax, he said. "Funding these is bad for the climate and it is bad economics", he said.
The analysis comes as documents released under freedom of information laws showed bureaucrats had identified up to 17 programs costing more than $8 billion a year that may have to be cut for Australia to meet a G20 agreement that member countries eliminate inefficient fossil fuel subsidies that lead to wasteful consumption.
Treasurer Wayne Swan has argued that Australia had no programs that met the G20's definition of a fossil fuel subsidy. Mr Henry said the foundation's analysis included all programs that made it cheaper to use fossil fuels. You can get into an arcane economic debate about what is defined as a subsidy and what isn't at the end of the day this is public money that is going to businesses to pollute", he said.
He said the fringe benefits tax concession for company cars was a "virtual pollution factory" equal to a mediumsized coal fired plant each year. Mr Swan's spokesman, Adam Collins, last night said none of the programs qualified as subsidies under the G20 definition. "All credible analysis shows the only way to meet our targets is by putting a price on carbon through a market mechanism so that's exactly what we are doing".
AGL shelves wind farms
Summaries - Australian Financial Review
24 February 2011, Page: 6
AGL Energy has placed $2 billion of wind farm investments on ice and a hiatus in new projects may last years, due to a soft and damp market for Renewable Energy Certificates. Managing director Michael Fraser indicated that AGL Energy will continue with projects under construction but will hold off committing to any new wind projects until the price recovered.
Last year, prices were depressed and new investments stalled after heavy subsidies for the installation of household rooftop solar systems saw a flood of certificates come onto the market. However, modifications to the certificate scheme that took effect on January 1 address a design flaw and split the renewable energy target between small scale and industrial scale projects. Mr Fraser said there will still be a massive amount of development.
Despite changes to the regulations, certificates are still trading for just over $30.00 each, while prices needed to justify new projects are $60.00 and $65.00. The investment freeze will leave projects on hold, such as the 300 MW Coopers Gap project in Queensland and the 150 MW Barn Hill and 99 MW Hallett 3 projects in South Australia. General manager Australia for renewable energy project developer, Pacific Hydro, Lane Crocket, says there is a "stand off" in the market with project developers refusing to sell certificates at current prices and retailers not requiring new supplies. He says the sale of New South Wales state retailers TRUEnergy may also lead to some earlier contracting.
24 February 2011, Page: 6
AGL Energy has placed $2 billion of wind farm investments on ice and a hiatus in new projects may last years, due to a soft and damp market for Renewable Energy Certificates. Managing director Michael Fraser indicated that AGL Energy will continue with projects under construction but will hold off committing to any new wind projects until the price recovered.
Last year, prices were depressed and new investments stalled after heavy subsidies for the installation of household rooftop solar systems saw a flood of certificates come onto the market. However, modifications to the certificate scheme that took effect on January 1 address a design flaw and split the renewable energy target between small scale and industrial scale projects. Mr Fraser said there will still be a massive amount of development.
Despite changes to the regulations, certificates are still trading for just over $30.00 each, while prices needed to justify new projects are $60.00 and $65.00. The investment freeze will leave projects on hold, such as the 300 MW Coopers Gap project in Queensland and the 150 MW Barn Hill and 99 MW Hallett 3 projects in South Australia. General manager Australia for renewable energy project developer, Pacific Hydro, Lane Crocket, says there is a "stand off" in the market with project developers refusing to sell certificates at current prices and retailers not requiring new supplies. He says the sale of New South Wales state retailers TRUEnergy may also lead to some earlier contracting.
Solar power works - now to use it
Summaries - Australian Financial Review
28 February 2011, Page: 30
Rising electricity prices, a reduction in the cost of solar panels and a pending price on carbon has raised expectations that solar power will soon fulfil the potential it has long been associated with. A further sign that the industry is being viewed more seriously by government came with the observation from Resources and Energy Minister Martin Ferguson that "The global use of renewable energy is predicted to triple by 2035."
Australia is well placed to take advantage of the growth due to the Australian Solar Institute, part of the federal government's clean energy initiative. Chief executive of the Australian Solar Institute, Mark Twidell, says 'The technology we have today works' adding that the role of the institute 'is working with industry to develop technology to the point of commercialisation.' The institute is involved in various projects throughout the country being undertaken by the University of New South Wales, CSIRO and the Australian National University.
28 February 2011, Page: 30
Rising electricity prices, a reduction in the cost of solar panels and a pending price on carbon has raised expectations that solar power will soon fulfil the potential it has long been associated with. A further sign that the industry is being viewed more seriously by government came with the observation from Resources and Energy Minister Martin Ferguson that "The global use of renewable energy is predicted to triple by 2035."
Australia is well placed to take advantage of the growth due to the Australian Solar Institute, part of the federal government's clean energy initiative. Chief executive of the Australian Solar Institute, Mark Twidell, says 'The technology we have today works' adding that the role of the institute 'is working with industry to develop technology to the point of commercialisation.' The institute is involved in various projects throughout the country being undertaken by the University of New South Wales, CSIRO and the Australian National University.
Carbon talk is simply not true
Herald Sun
28 February 2011, Page: 22
Tony Abbott is trying to scare us stupid on carbon pricing. Of course the picture he paints is terrifying. But it is simply not true. His paranoiac fantasies about the great, big, fat, hairy, scary new carbon tax are rejected by reputable economists around the world. Tony wants (maybe) to tackle climate change via direct action, and he wants taxpayers to foot the bill. But even a first year economics student knows that market mechanisms are more efficient and cheaper. In reality, a carbon tax, combined with strong support for renewable energy and energy efficiency, will be the cheapest way to reduce emissions.
Eli Court. Richmond
28 February 2011, Page: 22
Tony Abbott is trying to scare us stupid on carbon pricing. Of course the picture he paints is terrifying. But it is simply not true. His paranoiac fantasies about the great, big, fat, hairy, scary new carbon tax are rejected by reputable economists around the world. Tony wants (maybe) to tackle climate change via direct action, and he wants taxpayers to foot the bill. But even a first year economics student knows that market mechanisms are more efficient and cheaper. In reality, a carbon tax, combined with strong support for renewable energy and energy efficiency, will be the cheapest way to reduce emissions.
Eli Court. Richmond
Tuesday, 8 March 2011
Setting price may create 34,000 jobs - Report backs 'high' carbon price
Age
28 February 2011, Page: 6
A CARBON price aimed at cutting greenhouse gas emissions by 25% by 2020 could help create 34,000 jobs in regional Australia, research says.
To be launched today by independent MP Tony Windsor, the report by the Climate Institute predicts that a substantial carbon price, backed by renewable energy policies, would trigger tens of billions of dollars of investment in geothermal, largescale solar, bioenergy, hydro, wind and gas.
In Victoria, the number of people employed in the electricity industry was projected to increase over the next two decades despite some job losses as coal fired power plants closed. The new jobs would be concentrated in the state's Western District, central highlands and the Mallee. Climate Institute chief executive John Connor said the report, based on work conducted by consultants SKM MMA and Ernst & Young, showed that clean energy projects could provide an economic foundation to support strong regional populations.
It challenged claims that tackling climate change would cost jobs and hurt the economy. "It is important we have a discussion about the costs and how to manage them, but it is also important to look at the benefits and how you achieve those", Mr Connor said. Mr Windsor said the report showed regional Australia could be a big winner as renewable energy projects were developed. It is estimated nearly 6900 new electricity industry jobs could be created in Victoria by 2030 Nearly 4600 would be in power plant construction and about 1200 in manufacturing. More than 1000 would be permanent roles running new plants.
The total number of jobs in the industry would rise over the next five years as wind and gas plants were built, dip in the second half of the decade, but then grow dramatically after 2020 as more clean energy technologies became commercially viable. The report suggests about 40% of Victoria's electricity could come from clean sources by 2030, up from 5% today.
Gas fired power, with about a third the emissions of brown coal, would also expand dramatically to provide about a third of the state's electricity.
Specific projections for Victoria include:
The modelling does not consider the impact of the possible implementation of carbon capture and storage technology. The jobs figures are based on a carbon price starting at $47 in 2012, the national 20% renewable energy target, and policies to encourage clean technologies, including loan guarantees and tax credits.
The research won the support of the ACTU and several energy companies. Tony Maher, the president of the Construction, Forestry, Mining and Energy Union, applauded the Climate Institute for focusing on jobs, skills and training as the key to Australia cutting emissions.
28 February 2011, Page: 6
A CARBON price aimed at cutting greenhouse gas emissions by 25% by 2020 could help create 34,000 jobs in regional Australia, research says.
To be launched today by independent MP Tony Windsor, the report by the Climate Institute predicts that a substantial carbon price, backed by renewable energy policies, would trigger tens of billions of dollars of investment in geothermal, largescale solar, bioenergy, hydro, wind and gas.
In Victoria, the number of people employed in the electricity industry was projected to increase over the next two decades despite some job losses as coal fired power plants closed. The new jobs would be concentrated in the state's Western District, central highlands and the Mallee. Climate Institute chief executive John Connor said the report, based on work conducted by consultants SKM MMA and Ernst & Young, showed that clean energy projects could provide an economic foundation to support strong regional populations.
It challenged claims that tackling climate change would cost jobs and hurt the economy. "It is important we have a discussion about the costs and how to manage them, but it is also important to look at the benefits and how you achieve those", Mr Connor said. Mr Windsor said the report showed regional Australia could be a big winner as renewable energy projects were developed. It is estimated nearly 6900 new electricity industry jobs could be created in Victoria by 2030 Nearly 4600 would be in power plant construction and about 1200 in manufacturing. More than 1000 would be permanent roles running new plants.
The total number of jobs in the industry would rise over the next five years as wind and gas plants were built, dip in the second half of the decade, but then grow dramatically after 2020 as more clean energy technologies became commercially viable. The report suggests about 40% of Victoria's electricity could come from clean sources by 2030, up from 5% today.
Gas fired power, with about a third the emissions of brown coal, would also expand dramatically to provide about a third of the state's electricity.
Specific projections for Victoria include:
- More than 1500 jobs created in wind and geothermal energy in the south west around Warrnambool, Portland and Hamilton.
- Nearly 1200 new jobs relating to building and running largescale solar plants in the Mallee.
- About 600 new jobs in wind in the central highlands around Ballarat and Bendigo.
- In the Latrobe Valley, the loss of about 500 permanent jobs in coal power, but the creation of 720 construction jobs building new gas and renewable plants.
The modelling does not consider the impact of the possible implementation of carbon capture and storage technology. The jobs figures are based on a carbon price starting at $47 in 2012, the national 20% renewable energy target, and policies to encourage clean technologies, including loan guarantees and tax credits.
The research won the support of the ACTU and several energy companies. Tony Maher, the president of the Construction, Forestry, Mining and Energy Union, applauded the Climate Institute for focusing on jobs, skills and training as the key to Australia cutting emissions.
Plugging into the sun for clean, fresh water
Age
28 February 2011, Page: 3
A SMALL Victorian company reckons it has found a way to prevent 3.5 million deaths a year from water borne diseases while also cutting emissions of the greenhouse gas CO₂. F CUBED, based in Somerton, has been working on its solar powered desalination system for about six years and started selling the units commercially in November.
Earlier this month, F CUBED was recognised internationally and invited to join the Clinton Global Initiative, which aims to partner companies with technologies that may provide solutions to key environmental challenges. The modular unit, which retails for $362.50 plus GST and freight, works by running saltwater through a gravity fed pipe at the top. The water disperses evenly as it runs down the solar collector evaporator.
The solar power heats the water, which vaporises and then condenses on the inside of the plastic panel enclosure. The distilled water runs to the bottom of the unit where it is collected. In the process, disease causing pathogens, as well as heavy metals, are removed. Peter Johnstone, the chief executive and founder of F CUBED, said there was enormous potential to work with developing countries to provide clean drinking water.
"There is a clear connection between the world's poorest people boiling water for drinking and greenhouse gas emissions", he said. "An average family boiling 20 litres a day will need 20 kilos of fuel, which is usually wood, and that is producing 40 kilos of CO₂ a day. That is 15 tonnes a year of CO₂ and when you times that by 300 million families it is enormous".
The company has signed an $11 million memorandum of understanding with the South Australian town of Ceduna to supply 13,000 of the Carocell panels. "The beauty of us is that we don't waste anything", Mr Johnstone said. "We are going to sell about 6000 tonnes of salt from it. At $100 a tonne, that is $60,000 in salt sales".
F CUBED will have another revenue stream if it is successful in its application to be part of the Clean Development Mechanism under the Kyoto Protocol. The instrument allows signatories to Kyoto in developed countries to establish programs in developing countries and then sell the carbon credits.
"That would pay for the panels for the poor people, which means we can give them away for nothing", Mr Johnstone said. "It also means they won't be cutting down trees any more". While the application will take another two years to gain approval, F CUBED has received country approval from Bangladesh and is working with a not for profit group, WaterAid, to provide clean drinking water. The company is also believed to be in talks with large miners, such as Rio Tinto and one of the Queensland coal seam gas proponents, to provide desalinated water.
28 February 2011, Page: 3
A SMALL Victorian company reckons it has found a way to prevent 3.5 million deaths a year from water borne diseases while also cutting emissions of the greenhouse gas CO₂. F CUBED, based in Somerton, has been working on its solar powered desalination system for about six years and started selling the units commercially in November.Earlier this month, F CUBED was recognised internationally and invited to join the Clinton Global Initiative, which aims to partner companies with technologies that may provide solutions to key environmental challenges. The modular unit, which retails for $362.50 plus GST and freight, works by running saltwater through a gravity fed pipe at the top. The water disperses evenly as it runs down the solar collector evaporator.
The solar power heats the water, which vaporises and then condenses on the inside of the plastic panel enclosure. The distilled water runs to the bottom of the unit where it is collected. In the process, disease causing pathogens, as well as heavy metals, are removed. Peter Johnstone, the chief executive and founder of F CUBED, said there was enormous potential to work with developing countries to provide clean drinking water.
"There is a clear connection between the world's poorest people boiling water for drinking and greenhouse gas emissions", he said. "An average family boiling 20 litres a day will need 20 kilos of fuel, which is usually wood, and that is producing 40 kilos of CO₂ a day. That is 15 tonnes a year of CO₂ and when you times that by 300 million families it is enormous".
The company has signed an $11 million memorandum of understanding with the South Australian town of Ceduna to supply 13,000 of the Carocell panels. "The beauty of us is that we don't waste anything", Mr Johnstone said. "We are going to sell about 6000 tonnes of salt from it. At $100 a tonne, that is $60,000 in salt sales".
F CUBED will have another revenue stream if it is successful in its application to be part of the Clean Development Mechanism under the Kyoto Protocol. The instrument allows signatories to Kyoto in developed countries to establish programs in developing countries and then sell the carbon credits.
"That would pay for the panels for the poor people, which means we can give them away for nothing", Mr Johnstone said. "It also means they won't be cutting down trees any more". While the application will take another two years to gain approval, F CUBED has received country approval from Bangladesh and is working with a not for profit group, WaterAid, to provide clean drinking water. The company is also believed to be in talks with large miners, such as Rio Tinto and one of the Queensland coal seam gas proponents, to provide desalinated water.
Antiquated plants
Age
25 February 2011, Page: 16
ANDREW Chapman claims that transitioning to renewable energy will make power more expensive (Letters, 23/2). The truth is somewhat different. Credible research has demonstrated that in 2009 electricity prices in Denmark, Germany and Belgium (all among Europe's early adopters of wind power) fell as a direct result of the increasing contribution of wind power to the overall mix.
Since 2005 in the US, the average wind project has been producing energy at less than the national average wholesale price. In Australia a study for the National Generators Forum concludes that with the government's renewable energy target, electricity retailers will be $10 billion better off in 2015 than without it.
Current increases in the cost of power have almost nothing to do with the growth in renewables and a great deal to do with the cost of building fossil fuel infrastructure to accommodate demand growth and maintaining existing, often antiquated, infrastructure.
Doug Evans, Clifton Hill
25 February 2011, Page: 16
ANDREW Chapman claims that transitioning to renewable energy will make power more expensive (Letters, 23/2). The truth is somewhat different. Credible research has demonstrated that in 2009 electricity prices in Denmark, Germany and Belgium (all among Europe's early adopters of wind power) fell as a direct result of the increasing contribution of wind power to the overall mix.
Since 2005 in the US, the average wind project has been producing energy at less than the national average wholesale price. In Australia a study for the National Generators Forum concludes that with the government's renewable energy target, electricity retailers will be $10 billion better off in 2015 than without it.
Current increases in the cost of power have almost nothing to do with the growth in renewables and a great deal to do with the cost of building fossil fuel infrastructure to accommodate demand growth and maintaining existing, often antiquated, infrastructure.
Doug Evans, Clifton Hill
Monday, 7 March 2011
Wind turbine concept harvests energy roadside
www.earthtechling.com
24 February 2011
Sure, we know there's a lot of wind out there on the Kansas plains. But what about in our power hungry urban environments? A new system by Luis Castanheira Santos seeks to make use of the wind produced by moving vehicles, harvesting energy that would otherwise be wasted. The Voltaire vertical axis turbine concept (which comes to us via Tuvie) is a modular product that set up on the side of the road, acting as a kind of barrier. As cars, trucks and motorcycles whiz past, the turbines spin, creating electricity which can be used in turn to power lights.
The idea behind the concept is to keep the system simple, so these power generating barriers can be moved, combined and maintained with a minimum of effort and infrastructure. The designer also sees these structures providing juice for rest areas and gas stations, grid free, along major transportation routes. This is a concept that makes a lot of sense (provided the technology works) and fits nicely into a promising movement in green design focused on harvesting small amounts of energy in unexpected places, as in piezoelectrics.
24 February 2011
Sure, we know there's a lot of wind out there on the Kansas plains. But what about in our power hungry urban environments? A new system by Luis Castanheira Santos seeks to make use of the wind produced by moving vehicles, harvesting energy that would otherwise be wasted. The Voltaire vertical axis turbine concept (which comes to us via Tuvie) is a modular product that set up on the side of the road, acting as a kind of barrier. As cars, trucks and motorcycles whiz past, the turbines spin, creating electricity which can be used in turn to power lights.The idea behind the concept is to keep the system simple, so these power generating barriers can be moved, combined and maintained with a minimum of effort and infrastructure. The designer also sees these structures providing juice for rest areas and gas stations, grid free, along major transportation routes. This is a concept that makes a lot of sense (provided the technology works) and fits nicely into a promising movement in green design focused on harvesting small amounts of energy in unexpected places, as in piezoelectrics.
World’s biggest producer of wind energy records $4 billion in profits in 2010
inhabitat.com
24 February 2011
The world's largest producer of wind power, Spain based Iberdrola SA, blew away analysts' expectations last year with a whopping $4 billion in profits analysts had expected their gain to clock in at $3.9 billion. To sweeten the deal even more, the company's power generation rose 8% to 154,073 GWs and they produced half of that electricity without emitting CO₂.
Iberdrola has 44,991 MWs of energy production worldwide they've got investments in many countries and of that production wind and solar account for 28%, hydropower for 22%, and nuclear plants for 7.4%. Their production of wind and solar rose to 12,532 GWs last year. The company generates about half their energy outside of Spain and looks to invest a huge chunk of change into renewable energy in the US and UK in the coming years.
We all know you can shout from the rooftops about the environmental benefits of renewable energy and there will still be a whole host of people that don't listen but this major profit from one of the biggest renewable energy producers in the world is great news for the clean cause because non believers all start paying attention when "cha chings" are heard. In a down economy Iberdrola has proven that green energy is on the up and up. With as much as $22 billion over the next two years in investments much of it in renewable energy generation we can all be expecting this initial Iberdrola profit gain to keep on keeping on.
24 February 2011
The world's largest producer of wind power, Spain based Iberdrola SA, blew away analysts' expectations last year with a whopping $4 billion in profits analysts had expected their gain to clock in at $3.9 billion. To sweeten the deal even more, the company's power generation rose 8% to 154,073 GWs and they produced half of that electricity without emitting CO₂.Iberdrola has 44,991 MWs of energy production worldwide they've got investments in many countries and of that production wind and solar account for 28%, hydropower for 22%, and nuclear plants for 7.4%. Their production of wind and solar rose to 12,532 GWs last year. The company generates about half their energy outside of Spain and looks to invest a huge chunk of change into renewable energy in the US and UK in the coming years.
We all know you can shout from the rooftops about the environmental benefits of renewable energy and there will still be a whole host of people that don't listen but this major profit from one of the biggest renewable energy producers in the world is great news for the clean cause because non believers all start paying attention when "cha chings" are heard. In a down economy Iberdrola has proven that green energy is on the up and up. With as much as $22 billion over the next two years in investments much of it in renewable energy generation we can all be expecting this initial Iberdrola profit gain to keep on keeping on.
IKEA Invests in Wind Power Project
www.renewableenergyworld.com
24 February 2011
Sweden's IKEA, famous for its easy to assemble furniture products, now plans to build its own dedicated wind power facility. Under its long term plan to heat, cool and power all its buildings using 100% renewable energy, the Swedish home furnishings giant will invest an undisclosed amount in the construction of its own wind farm to power 17 stores in Sweden. The nine turbine onshore wind farm will be built in Dalarna, in central Sweden, by Stockholm based wind developer O2 Vind. The facility is expected to go online in early 2012.
In Sweden, 98% of IKEA's buildings are already heated and powered using renewable energy. With its decision to build its own wind farm, the company sees further benefits. "We get a long term source of renewable energy for our business", said Peter Agnefjall, EO of IKEA Svenska Foersaeljings, adding that the company also hopes to generate revenue be selling additional capacity.
IKEA is no newcomer to the wind power business. In 2009, the company purchased three French wind farms from Volkswind and acquired six more a year later in Germany from Gamesa. Together, farms have a capacity of more than 90 MW. Altogether, it currently owns 52 wind turbines, generating enough energy to cover about 10 of the group's electricity needs, a spokeswoman said, declining to comment on investment costs. Other large companies, such as Wal-Mart and Google, are also investing in wind power and for reasons similar to IKEA's.
"While we are happy to be purchasing renewable energy as part of our environmental commitment, this is also a structure that makes long term financial sense for Google", Google said in an earlier statement. "Through the long term purchase of renewable energy at a predetermined price, we're partially protecting ourselves against future increases in power prices. This is a case where buying green makes business sense".
In addition to wind power, IKEA has been installing solar panels in stores around the world, including, Belgium, Germany and the United States.
24 February 2011
Sweden's IKEA, famous for its easy to assemble furniture products, now plans to build its own dedicated wind power facility. Under its long term plan to heat, cool and power all its buildings using 100% renewable energy, the Swedish home furnishings giant will invest an undisclosed amount in the construction of its own wind farm to power 17 stores in Sweden. The nine turbine onshore wind farm will be built in Dalarna, in central Sweden, by Stockholm based wind developer O2 Vind. The facility is expected to go online in early 2012.
In Sweden, 98% of IKEA's buildings are already heated and powered using renewable energy. With its decision to build its own wind farm, the company sees further benefits. "We get a long term source of renewable energy for our business", said Peter Agnefjall, EO of IKEA Svenska Foersaeljings, adding that the company also hopes to generate revenue be selling additional capacity.
IKEA is no newcomer to the wind power business. In 2009, the company purchased three French wind farms from Volkswind and acquired six more a year later in Germany from Gamesa. Together, farms have a capacity of more than 90 MW. Altogether, it currently owns 52 wind turbines, generating enough energy to cover about 10 of the group's electricity needs, a spokeswoman said, declining to comment on investment costs. Other large companies, such as Wal-Mart and Google, are also investing in wind power and for reasons similar to IKEA's.
"While we are happy to be purchasing renewable energy as part of our environmental commitment, this is also a structure that makes long term financial sense for Google", Google said in an earlier statement. "Through the long term purchase of renewable energy at a predetermined price, we're partially protecting ourselves against future increases in power prices. This is a case where buying green makes business sense".
In addition to wind power, IKEA has been installing solar panels in stores around the world, including, Belgium, Germany and the United States.
Fear-mongering on wind
Age
25 February 2011 Page: 16
MICHAEL Madden (Letters, 24/2), Spain and Portugal have not lost 2½ jobs for every new job in renewable energy. This is a theoretical figure from a discredited study from a US right wing thinktank. The Spanish themselves said the study used incorrect data and egregiously flawed assumptions. Spain and Portugal are unable to import more than about 10% of their electricity, from French nuclear plants or otherwise, due to limited capacity on the Pyrenees interconnectors. They meet energy demand overwhelmingly from their own resources, increasingly from renewables.
Wind and solar provided 19% of all Spain's electricity needs in 2010, and on occasion supply nearly two thirds of the instantaneous demand. Yet Spain's electricity prices are consistently below the EU average. I visited Portugal and Spain last year and wasn't struck by "visual pollution": instead there is widespread acceptance of wind power, perhaps due to the absence of an anti renewables lobby suggesting to people they ought to fear wind turbines.
Tony Morton, Coburg
25 February 2011 Page: 16
MICHAEL Madden (Letters, 24/2), Spain and Portugal have not lost 2½ jobs for every new job in renewable energy. This is a theoretical figure from a discredited study from a US right wing thinktank. The Spanish themselves said the study used incorrect data and egregiously flawed assumptions. Spain and Portugal are unable to import more than about 10% of their electricity, from French nuclear plants or otherwise, due to limited capacity on the Pyrenees interconnectors. They meet energy demand overwhelmingly from their own resources, increasingly from renewables.
Wind and solar provided 19% of all Spain's electricity needs in 2010, and on occasion supply nearly two thirds of the instantaneous demand. Yet Spain's electricity prices are consistently below the EU average. I visited Portugal and Spain last year and wasn't struck by "visual pollution": instead there is widespread acceptance of wind power, perhaps due to the absence of an anti renewables lobby suggesting to people they ought to fear wind turbines.
Tony Morton, Coburg
Sunday, 6 March 2011
NZ geothermal contract awarded
www.khl.com
24 February 2011
New Zealand power company Contact Energy has awarded the contract for the construction of two geothermal power units to a joint venture between contractors SNC Lavalin, McConnell Dowell and Parsons Brinkerhoff. Located northwest of Taupo on the north island of New Zealand, the US$ 623 million Te Mihi geothermal project will source power from the nearby Wairakei steam field.
The 166 MW project is scheduled for completion in 2013 and the new power station is planned to gradually replace the existing, 52 year old Wairakei Power Station which will be phased out of production. "Geothermal power is playing an increasingly important role in the industry and we are pleased to be expanding our experience in the worldwide renewable energy market", said Patrick Lamarre, executive vice president of SNC Lavalin Group.
24 February 2011
New Zealand power company Contact Energy has awarded the contract for the construction of two geothermal power units to a joint venture between contractors SNC Lavalin, McConnell Dowell and Parsons Brinkerhoff. Located northwest of Taupo on the north island of New Zealand, the US$ 623 million Te Mihi geothermal project will source power from the nearby Wairakei steam field.
The 166 MW project is scheduled for completion in 2013 and the new power station is planned to gradually replace the existing, 52 year old Wairakei Power Station which will be phased out of production. "Geothermal power is playing an increasingly important role in the industry and we are pleased to be expanding our experience in the worldwide renewable energy market", said Patrick Lamarre, executive vice president of SNC Lavalin Group.
Solar energy powers water treatment plant
www.earthtechling.com
23 February 2011
Philadelphia is aiming to purchase or generate 20% of its electricity from alternative sources by 2015 under Mayor Michael Nutter's "Greenworks Philadelphia" agenda, and a new solar power system at a water treatment plant brings the city a tiny bit closer to the mark.
Contractors began work on the photovoltaic system at the Philadelphia Water Department's Southeast Water Pollution Control Plant in December, and it began generating power at the end of January, according to contractor CETCO. With a generating capacity of 250 kWs, this ground mounted system is hardly a monster; it covers about an acre of unused land and its power output is equivalent to what 28 average homes would need. Compare this to what the hometown Philadelphia Eagles are planning for Lincoln Financial Field: a 7.6 MW onsite dual fuel cogeneration plant.
Still, the solar system will help run the water treatment plant, which could reduce power costs borne by ratepayers, and backers hope it will spur more solar projects. "The City looks forward to learning from this project and replicating it", said Kristin Sullivan, program director of the Philadelphia Solar City Partnership.
Rarely do such projects come about through a simple outlay by a municipality, and this one is no exception: Philadelphia was assisted by a $850,000 from the City's Energy Efficiency and Conservation Block Grant from the US Department of Energy (DOE).
23 February 2011
Philadelphia is aiming to purchase or generate 20% of its electricity from alternative sources by 2015 under Mayor Michael Nutter's "Greenworks Philadelphia" agenda, and a new solar power system at a water treatment plant brings the city a tiny bit closer to the mark.Contractors began work on the photovoltaic system at the Philadelphia Water Department's Southeast Water Pollution Control Plant in December, and it began generating power at the end of January, according to contractor CETCO. With a generating capacity of 250 kWs, this ground mounted system is hardly a monster; it covers about an acre of unused land and its power output is equivalent to what 28 average homes would need. Compare this to what the hometown Philadelphia Eagles are planning for Lincoln Financial Field: a 7.6 MW onsite dual fuel cogeneration plant.
Still, the solar system will help run the water treatment plant, which could reduce power costs borne by ratepayers, and backers hope it will spur more solar projects. "The City looks forward to learning from this project and replicating it", said Kristin Sullivan, program director of the Philadelphia Solar City Partnership.
Rarely do such projects come about through a simple outlay by a municipality, and this one is no exception: Philadelphia was assisted by a $850,000 from the City's Energy Efficiency and Conservation Block Grant from the US Department of Energy (DOE).
Plymouth's Pilgrim nuclear plant prepares to restart after leak
www.patriotledger.com
23 February 2011
The Pilgrim nuclear power plant in Plymouth was expected to be back in business Wednesday afternoon following a three day shutdown to repair a leak in a cooling system. Operators started a controlled shutdown of the 685 MW plant early Sunday and notified the Nuclear Regulatory Commission.
Plant spokesman David Tarantino said this morning that workers were putting the plant back on line. The plant was shut down after monitors detected a leak in a tube that carries salt water and is used in a cooling system. The plant is next to the ocean and uses sea water to cool the steaming hot fresh water that turns the plant's electricity generating turbines.
Duxbury anti nuclear activist Mary Lampert wasn't worried about the repair. Lampert said David Lochbaum, a nuclear engineer and Union of Concerned Scientists specialist, said the leak was "no big deal". The state's only nuclear plant was operating at 100% capacity when the shutdown occurred. It had been on line for 634 consecutive days "a record for us", Tarantino said when the shutdown was ordered Sunday.
Entergy Corp., which operates the facility, said in a report that "this event had no impact on the health and/or safety of the public". The report said that a section of a reactor building was "declared inoperable" Feb. 18 and could not be repaired within 72 hours, prompting the shutdown at 12:01 a.m. Sunday.
Last week, The Patriot Ledger reported that the level of groundwater contamination from a radioactive isotope in a well at the plant had plunged in recent weeks, but the plant's operators didn't seem to be much closer to determining the source of the problem. Despite the sharp decline, representatives for the Plymouth plant and the Nuclear Regulatory Commission said it's far too early to know if the groundwater concern has gone away.
Last summer, tritium levels in a monitoring well at the Plymouth plant exceeded 25,000 picocuries per liter, adding to concerns about a potential leak at the plant.
The tritium levels in the monitoring well exceeded the federal maximum for drinking water of 20,000 picocuries per liter only on one other occasion, in September. The tritium levels in that well have fluctuated wildly, however, since that time and have generally been significantly above levels that could be caused by typical atmospheric conditions.
In recent weeks, the levels have fallen, according to the Nuclear Regulatory Commission. The tritium levels in the well fell from 7,000 picocuries per liter in mid January to roughly 1,000 picocuries per liter by the end of the month. The levels in the second half of January were the lowest recorded since the well was first used last spring. Also last week, a major manufacturer in the nuclear industry reported a potential "substantial safety hazard" with control rods at the Pilgrim nuclear power plant and more than two dozen other reactors around the country.
The NRC reported at that time that GE Hitachi Nuclear Energy had discovered extensive cracking and "material distortion", and likely would recommend that the boiling water reactors using its Marathon control rod blades replace them more frequently than they had been told to previously.
23 February 2011
The Pilgrim nuclear power plant in Plymouth was expected to be back in business Wednesday afternoon following a three day shutdown to repair a leak in a cooling system. Operators started a controlled shutdown of the 685 MW plant early Sunday and notified the Nuclear Regulatory Commission.Plant spokesman David Tarantino said this morning that workers were putting the plant back on line. The plant was shut down after monitors detected a leak in a tube that carries salt water and is used in a cooling system. The plant is next to the ocean and uses sea water to cool the steaming hot fresh water that turns the plant's electricity generating turbines.
Duxbury anti nuclear activist Mary Lampert wasn't worried about the repair. Lampert said David Lochbaum, a nuclear engineer and Union of Concerned Scientists specialist, said the leak was "no big deal". The state's only nuclear plant was operating at 100% capacity when the shutdown occurred. It had been on line for 634 consecutive days "a record for us", Tarantino said when the shutdown was ordered Sunday.
Entergy Corp., which operates the facility, said in a report that "this event had no impact on the health and/or safety of the public". The report said that a section of a reactor building was "declared inoperable" Feb. 18 and could not be repaired within 72 hours, prompting the shutdown at 12:01 a.m. Sunday.
Last week, The Patriot Ledger reported that the level of groundwater contamination from a radioactive isotope in a well at the plant had plunged in recent weeks, but the plant's operators didn't seem to be much closer to determining the source of the problem. Despite the sharp decline, representatives for the Plymouth plant and the Nuclear Regulatory Commission said it's far too early to know if the groundwater concern has gone away.
Last summer, tritium levels in a monitoring well at the Plymouth plant exceeded 25,000 picocuries per liter, adding to concerns about a potential leak at the plant.
The tritium levels in the monitoring well exceeded the federal maximum for drinking water of 20,000 picocuries per liter only on one other occasion, in September. The tritium levels in that well have fluctuated wildly, however, since that time and have generally been significantly above levels that could be caused by typical atmospheric conditions.
In recent weeks, the levels have fallen, according to the Nuclear Regulatory Commission. The tritium levels in the well fell from 7,000 picocuries per liter in mid January to roughly 1,000 picocuries per liter by the end of the month. The levels in the second half of January were the lowest recorded since the well was first used last spring. Also last week, a major manufacturer in the nuclear industry reported a potential "substantial safety hazard" with control rods at the Pilgrim nuclear power plant and more than two dozen other reactors around the country.
The NRC reported at that time that GE Hitachi Nuclear Energy had discovered extensive cracking and "material distortion", and likely would recommend that the boiling water reactors using its Marathon control rod blades replace them more frequently than they had been told to previously.
Spain scraps phase-out of nuclear power
www.powergenworldwide.com
23 February 2011
Spain has reversed a policy of phasing out the nation's 7.5 GW of nuclear powered electricity, 18% of total output, and has renewed the operating licenses for three of the nation's eight nuclear reactors. According to nuclear industry blog Idaho Samizdat, Spain's Congress has ratified new legislation that means the reactors can operate for longer than 40 years.
The moves are a complete turnaround from a prior government policy of phasing out the nation's nuclear plants. Most public opinion about nuclear power is negative and neither political party has supported reactor life extension until now, according to the blog.
Spain's power grid is almost completely isolated from the rest of Europe which makes energy security a leading factor in the government's decision to keep the reactors running past the artificial 40 year deadline. Blogger Dan Yurman said the financial collapse of its solar power subsidy programme may also have played a role in the change of heart.
23 February 2011
Spain has reversed a policy of phasing out the nation's 7.5 GW of nuclear powered electricity, 18% of total output, and has renewed the operating licenses for three of the nation's eight nuclear reactors. According to nuclear industry blog Idaho Samizdat, Spain's Congress has ratified new legislation that means the reactors can operate for longer than 40 years.
The moves are a complete turnaround from a prior government policy of phasing out the nation's nuclear plants. Most public opinion about nuclear power is negative and neither political party has supported reactor life extension until now, according to the blog.
Spain's power grid is almost completely isolated from the rest of Europe which makes energy security a leading factor in the government's decision to keep the reactors running past the artificial 40 year deadline. Blogger Dan Yurman said the financial collapse of its solar power subsidy programme may also have played a role in the change of heart.
Thursday, 3 March 2011
E.ON wins right to develop wind energy on FCS land in Scotland
wind.energy-business-review.com
23 February 2011
E.ON has secured exclusive right to explore the land owned by Forestry Commission Scotland (FCS) for new wind power projects. The German utility has been awarded two lots of FCS land located in the north and west of Scotland. E.ON said that the two lots have the potential to produce enough electricity to power over 270,000 homes annually.
E.ON managing director of European renewable business Michael Lewis said that wind is an important part of the future energy mix in the UK and as schemes get larger and larger, so too does the contribution they make towards renewable energy targets, which is why they are so vital. The utility already operates 18 onshore wind farms with a total capacity of 175 MW across the UK, and has over 1500 MW capacity within the planning and development phases.
23 February 2011
E.ON has secured exclusive right to explore the land owned by Forestry Commission Scotland (FCS) for new wind power projects. The German utility has been awarded two lots of FCS land located in the north and west of Scotland. E.ON said that the two lots have the potential to produce enough electricity to power over 270,000 homes annually.
E.ON managing director of European renewable business Michael Lewis said that wind is an important part of the future energy mix in the UK and as schemes get larger and larger, so too does the contribution they make towards renewable energy targets, which is why they are so vital. The utility already operates 18 onshore wind farms with a total capacity of 175 MW across the UK, and has over 1500 MW capacity within the planning and development phases.
Livermore Labs roll out hydrogen-powered vans
livermore.patch.com
22 February 2011
What do two Ford shuttle buses, a 2006 Toyota Prius and a mobile electric light stand have in common? They are examples of hydrogen powered technologies developed by the US Department of Energy and showcased in Livermore on Tuesday by Lawrence Livermore and Sandia California national laboratories.
Officials from the two labs were joined by DOE representatives in a parking lot next to the Bankhead Theater to introduce residents to two hydrogen gas powered Ford E 450 passenger vans. They arrived this month as part of a demonstration project at Sandia and LLNL. The 9 passenger vehicles will ferry passengers from building to building on the two sprawling campuses.
The demonstration will test how well the hydrogen powered vans and their fueling stations stand up to normal wear and tear. They will replace conventional diesel fuel burning taxis, resulting in roughly a 50% reduction in emissions of CO₂, a gas closely linked with global warming, Leonard Klebanoff, Ph.D., a principal member of the Sandia California lab said in an interview.
The arrival of the shuttles provided an opportunity for LLNL and Sandia lab officials to educate the public about the safety and environmental advantages of hydrogen as a fuel, he noted. Public outreach will involve Las Positas College and area high schools and elementary schools. "This is a celebration of our hydrogen technology programs", Klebanoff said.
The alternative fuel technologies powering the vans did not originate at LLNL and Sandia, however. Ford Motor Company in Detroit modified its internal combustion engine and added a special hydrogen tank pressurized to 5,000 pounds per square inch (ppsi) for gas storage at room temperature. Air Products and Chemicals, Inc., is providing hydrogen gas fuel. It also built and installed hydrogen fueling stations at the LLNL and Sandia campuses.
The vans have a range of 150 miles between refuelings. The only byproduct of hydrogen as a fuel is water vapor, making it an attractive alternative to CO₂ producing gasoline, according to Robert Glass, Ph.D., hydrogen program leader at LLNL.
The shuttles also served as technical baselines for innovations that officials at the two labs plan to implement soon. That's where the Toyota Prius factors in, noted Timothy Ross, a senior technician with the hydrogen storage program at LLNL. The experimental hydrogen powered car has a potential range of 650 miles, thanks to a compact hydrogen tank developed at LLNL. It generates extra mileage by pressurizing the gas to 5000 psi but also cools it to minus 423° Fahrenheit.
The storage unit underwent rigorous safety testing to earn Department of Transportation approval, Ross said. The tank survived high impact car crashes, bonfires and even gun fire from an armor piercing bullet, he said. The energy storage and conversion group in the energy and environment directorate at LLNL developed the tank. Costs were covered by the DOE hydrogen program and a hydrogen fuel initiative started by the George W. Bush administration, Ross said.
The mobile light stand demonstrated Sandia lab's ongoing work on fuel-cell energy technologies. From a practical standpoint, the fuel-cell approach substitutes for diesel generated electricity for mobile lights that illuminate highway construction, airport operations and movie production, said Mike James, Sandia's communications officer. But this clean energy source also has powered mobile external lighting over the red carpets outside recent Academy and Golden Globe awards, he said.
During formal comments Tuesday, Robert Carling, director of the Transportation Energy Center at Sandia, contrasted the performance of diesel generators that he characterized as "noisy and smelly" with odorless fuel-cell electrical generation "that you can barely hear".
Fuel-cell technology has been used to power experimental lift trucks and cell phone telecommunications towers. Its development is financed by $42 million in federal economic stimulus money from the American Recovery and Reinvestment Act of 2009 and matching funds from Federal Express and other companies that adopt the technology, said John Garbak, technology development manager with the DOE's fuel-cell technologies program.
22 February 2011
What do two Ford shuttle buses, a 2006 Toyota Prius and a mobile electric light stand have in common? They are examples of hydrogen powered technologies developed by the US Department of Energy and showcased in Livermore on Tuesday by Lawrence Livermore and Sandia California national laboratories.Officials from the two labs were joined by DOE representatives in a parking lot next to the Bankhead Theater to introduce residents to two hydrogen gas powered Ford E 450 passenger vans. They arrived this month as part of a demonstration project at Sandia and LLNL. The 9 passenger vehicles will ferry passengers from building to building on the two sprawling campuses.
The demonstration will test how well the hydrogen powered vans and their fueling stations stand up to normal wear and tear. They will replace conventional diesel fuel burning taxis, resulting in roughly a 50% reduction in emissions of CO₂, a gas closely linked with global warming, Leonard Klebanoff, Ph.D., a principal member of the Sandia California lab said in an interview.
The arrival of the shuttles provided an opportunity for LLNL and Sandia lab officials to educate the public about the safety and environmental advantages of hydrogen as a fuel, he noted. Public outreach will involve Las Positas College and area high schools and elementary schools. "This is a celebration of our hydrogen technology programs", Klebanoff said.
The alternative fuel technologies powering the vans did not originate at LLNL and Sandia, however. Ford Motor Company in Detroit modified its internal combustion engine and added a special hydrogen tank pressurized to 5,000 pounds per square inch (ppsi) for gas storage at room temperature. Air Products and Chemicals, Inc., is providing hydrogen gas fuel. It also built and installed hydrogen fueling stations at the LLNL and Sandia campuses.
The vans have a range of 150 miles between refuelings. The only byproduct of hydrogen as a fuel is water vapor, making it an attractive alternative to CO₂ producing gasoline, according to Robert Glass, Ph.D., hydrogen program leader at LLNL.
The shuttles also served as technical baselines for innovations that officials at the two labs plan to implement soon. That's where the Toyota Prius factors in, noted Timothy Ross, a senior technician with the hydrogen storage program at LLNL. The experimental hydrogen powered car has a potential range of 650 miles, thanks to a compact hydrogen tank developed at LLNL. It generates extra mileage by pressurizing the gas to 5000 psi but also cools it to minus 423° Fahrenheit.
The storage unit underwent rigorous safety testing to earn Department of Transportation approval, Ross said. The tank survived high impact car crashes, bonfires and even gun fire from an armor piercing bullet, he said. The energy storage and conversion group in the energy and environment directorate at LLNL developed the tank. Costs were covered by the DOE hydrogen program and a hydrogen fuel initiative started by the George W. Bush administration, Ross said.
The mobile light stand demonstrated Sandia lab's ongoing work on fuel-cell energy technologies. From a practical standpoint, the fuel-cell approach substitutes for diesel generated electricity for mobile lights that illuminate highway construction, airport operations and movie production, said Mike James, Sandia's communications officer. But this clean energy source also has powered mobile external lighting over the red carpets outside recent Academy and Golden Globe awards, he said.
During formal comments Tuesday, Robert Carling, director of the Transportation Energy Center at Sandia, contrasted the performance of diesel generators that he characterized as "noisy and smelly" with odorless fuel-cell electrical generation "that you can barely hear".
Fuel-cell technology has been used to power experimental lift trucks and cell phone telecommunications towers. Its development is financed by $42 million in federal economic stimulus money from the American Recovery and Reinvestment Act of 2009 and matching funds from Federal Express and other companies that adopt the technology, said John Garbak, technology development manager with the DOE's fuel-cell technologies program.
AGL puts brake on renewables
Adelaide Advertiser
24 February 2011, Page: 52
AGL Energy is likely to delay billions of dollars worth of renewable energy projects until there is greater certainty around carbon pricing and better prices for renewable energy credits. The company yesterday posted a 30.4% rise in first half statutory net profit and said it expected a similar performance from its retail and wholesale electricity businesses in the second half. The electricity and gas retailer said lead sales for January and February were up about 25%, after the company added 42,000 electricity customers in the first half of 2010 11.
Its net profit was $239.6 million for the six months to December 31, 2010, up from $183.7 million in the first half of 2009. Underlying profit, which excludes significant items, fell 3.7% to $226.2 million after worse than expected earnings from the Loy Yang coal fired power station in Victoria because of mild temperatures. AGL Energy maintained guidance of underlying profit for the full year of between $415 million and $440 million. "We are expecting in the second half a very strong performance from the retail business and certainly a higher result than they achieved in the second half last year", chief executive Michael Fraser said.
Earnings for the retail division grew by 5.6% in the first half, reflecting an increase in the gas and electricity gross margin. Mr Fraser said AGL Energy would increase its marketing spend to attract another 400,000 to 500,000 customers in NSW, after it missed out on any assets in the NSW electricity privatisation last December. AGL Energy, which is developing the largest wind farm in the southern hemisphere in Victoria, said it would hold off approval of further renewable energy projects until a carbon price was introduced. AGL Energy declared an interim dividend of 29¢ a share, unfranked.
24 February 2011, Page: 52
AGL Energy is likely to delay billions of dollars worth of renewable energy projects until there is greater certainty around carbon pricing and better prices for renewable energy credits. The company yesterday posted a 30.4% rise in first half statutory net profit and said it expected a similar performance from its retail and wholesale electricity businesses in the second half. The electricity and gas retailer said lead sales for January and February were up about 25%, after the company added 42,000 electricity customers in the first half of 2010 11.
Its net profit was $239.6 million for the six months to December 31, 2010, up from $183.7 million in the first half of 2009. Underlying profit, which excludes significant items, fell 3.7% to $226.2 million after worse than expected earnings from the Loy Yang coal fired power station in Victoria because of mild temperatures. AGL Energy maintained guidance of underlying profit for the full year of between $415 million and $440 million. "We are expecting in the second half a very strong performance from the retail business and certainly a higher result than they achieved in the second half last year", chief executive Michael Fraser said.
Earnings for the retail division grew by 5.6% in the first half, reflecting an increase in the gas and electricity gross margin. Mr Fraser said AGL Energy would increase its marketing spend to attract another 400,000 to 500,000 customers in NSW, after it missed out on any assets in the NSW electricity privatisation last December. AGL Energy, which is developing the largest wind farm in the southern hemisphere in Victoria, said it would hold off approval of further renewable energy projects until a carbon price was introduced. AGL Energy declared an interim dividend of 29¢ a share, unfranked.
Monday, 28 February 2011
Carbon way is cheapest
Herald Sun
23 February 2011, Page: 31
TERRY McCrann's criticisms of the carbon tax ("Carbon tax pain", February 22) are in my opinion simplistic and narrow minded. In the long run, a price on carbon combined with support for renewable energy and energy efficiency will keep electricity prices lower for households and consumers. The transition to renewable energy is already happening.
With strong government support in places such as California, renewable energy has already become as cheap as fossil fuel based electricity from the grid. The ever stronger global consensus on climate change means fossil fuels are no longer a good investment, and Australians will suffer higher electricity prices if we are left clinging to our coal power stations to the bitter end.
The impact of a carbon tax will be small compared with the increases due to billions of dollars of upgrades to the existing transmission network. Energy efficiency can counteract all these price rises. For example, the VECCI Carbon Down program has helped businesses reduce their bills despite switching them to more expensive Green Power.
Paul Murfitt, CEO, Moreland Energy Foundation
23 February 2011, Page: 31
TERRY McCrann's criticisms of the carbon tax ("Carbon tax pain", February 22) are in my opinion simplistic and narrow minded. In the long run, a price on carbon combined with support for renewable energy and energy efficiency will keep electricity prices lower for households and consumers. The transition to renewable energy is already happening.
With strong government support in places such as California, renewable energy has already become as cheap as fossil fuel based electricity from the grid. The ever stronger global consensus on climate change means fossil fuels are no longer a good investment, and Australians will suffer higher electricity prices if we are left clinging to our coal power stations to the bitter end.
The impact of a carbon tax will be small compared with the increases due to billions of dollars of upgrades to the existing transmission network. Energy efficiency can counteract all these price rises. For example, the VECCI Carbon Down program has helped businesses reduce their bills despite switching them to more expensive Green Power.
Paul Murfitt, CEO, Moreland Energy Foundation
Big tax breaks for 'greening' buildings
Age
23 February 2011, Page: 10
TAX cuts that pay for up to half the cost of "greening" commercial buildings are available under the federal government's program to cut greenhouse emissions in the property sector. Mark Dreyfus, parliamentary secretary for climate change and energy efficiency, said commercial buildings accounted for more than 10% of national greenhouse gas emissions. "Businesses that improve the energy efficiency of their existing buildings from two stars or lower NABERS rating to four stars or higher will be able to apply for a one off bonus tax deduction of 50% of the cost of the eligible assets or capital works", Mr Dreyfus said.
"The tax deduction will cover specified capital expenditure incurred as part of a qualifying retrofit of an existing office build ing, hotel or shopping centre". Mr Dreyfus's comments came in opening a forum on green buildings by the Royal Institution of Chartered Surveyors in Melbourne. "This initiative is expected to provide a boost of almost $1 billion over the life of the scheme", he said. "The design of the scheme is currently being developed".
A public consultation paper had been prepared to explain the key features of the proposed program in particular, eligibility criteria and assessment and certification processes, he said. Submissions closed last week, and the government would consider feedback before introducing legislation before July 1 when the scheme starts. Mr Dreyfus said the measure of mandatory disclosure, introduced last year, was already changing the way business was done in Australia. "Building owners, tenants and financiers are demanding greater information on energy performance to be available", he said.
Under the disclosure, most sellers or lessors of office space with a net lettable area of 2000 m² or more must obtain and disclose an up to date NABERS energy efficiency rating. Mr Dreyfus said improvements to the Building Code of Australia also meant future buildings would meet minimum energy performance requirements. This program set a pathway for better buildings and a consistent set of rating tools. Mr Dreyfus said the Green Building Fund had already committed $85 million for 232 projects. The fund had been extended by $30 million, he said.
23 February 2011, Page: 10
TAX cuts that pay for up to half the cost of "greening" commercial buildings are available under the federal government's program to cut greenhouse emissions in the property sector. Mark Dreyfus, parliamentary secretary for climate change and energy efficiency, said commercial buildings accounted for more than 10% of national greenhouse gas emissions. "Businesses that improve the energy efficiency of their existing buildings from two stars or lower NABERS rating to four stars or higher will be able to apply for a one off bonus tax deduction of 50% of the cost of the eligible assets or capital works", Mr Dreyfus said.
"The tax deduction will cover specified capital expenditure incurred as part of a qualifying retrofit of an existing office build ing, hotel or shopping centre". Mr Dreyfus's comments came in opening a forum on green buildings by the Royal Institution of Chartered Surveyors in Melbourne. "This initiative is expected to provide a boost of almost $1 billion over the life of the scheme", he said. "The design of the scheme is currently being developed".
A public consultation paper had been prepared to explain the key features of the proposed program in particular, eligibility criteria and assessment and certification processes, he said. Submissions closed last week, and the government would consider feedback before introducing legislation before July 1 when the scheme starts. Mr Dreyfus said the measure of mandatory disclosure, introduced last year, was already changing the way business was done in Australia. "Building owners, tenants and financiers are demanding greater information on energy performance to be available", he said.
Under the disclosure, most sellers or lessors of office space with a net lettable area of 2000 m² or more must obtain and disclose an up to date NABERS energy efficiency rating. Mr Dreyfus said improvements to the Building Code of Australia also meant future buildings would meet minimum energy performance requirements. This program set a pathway for better buildings and a consistent set of rating tools. Mr Dreyfus said the Green Building Fund had already committed $85 million for 232 projects. The fund had been extended by $30 million, he said.
Calls for renewable energy enquiry not supported by facts
Clean Energy Council
22 February 2011
The Clean Energy Council has responded to claims by Shadow Environment Minister Greg Hunt that $113 million in renewable energy credits had been "scrapped" in 2010, saying calls for an enquiry into the Renewable Energy Target scheme were not supported by the facts.
Renewable Energy Certificates (RECs) are an incentive designed to support the renewable energy industry by bridging the gap between the cost of black and green energy. Clean Energy Council Policy Director Russell Marsh said RECs invalidated by the Renewable Energy Regulator in 2010 were nothing out of the ordinary.
"This occurred as part of standard compliance procedures, which were tightened last year by Parliament to maintain the high standards of the renewable energy industry and to protect consumers", Mr Marsh said. "Invalidated credits do not equal lost or wasted money. If declared invalid for reasons of non compliance they can be re activated once the issue has been rectified".
Renewable Energy Regulator Andrew Livingston told a Senate estimates hearing on Monday that more than 3 million Renewable Energy Certificates (RECs) had been cancelled. Mr Livingston's testimony referred to a 10 year period and the cancellations represent 3.5% of the total number of RECs created during this period. RECs are cancelled for a variety of reasons, from incorrect paperwork and IT lodgement errors to the company creating the RECs asking for them to be cancelled.
"In 2010 1.1 million RECs were invalidated, representing 3.2% of the total created. Although numerically higher than in previous years, this figure is proportional to the number of solar power systems being installed. "There were more than 100,000 solar power systems installed in 2010, which is more than the rest of the decade put together.
"The Regulator is strictly enforcing the standards and that is entirely appropriate. The compliance system is working well and comparisons with the Federal Government's Home Insulation Program are not warranted", Mr Marsh said.
For more information, contact the Clean Energy Council's Media Manager Mark Bretherton on 0413 556 981 or 03 9929 4111.
22 February 2011
The Clean Energy Council has responded to claims by Shadow Environment Minister Greg Hunt that $113 million in renewable energy credits had been "scrapped" in 2010, saying calls for an enquiry into the Renewable Energy Target scheme were not supported by the facts.Renewable Energy Certificates (RECs) are an incentive designed to support the renewable energy industry by bridging the gap between the cost of black and green energy. Clean Energy Council Policy Director Russell Marsh said RECs invalidated by the Renewable Energy Regulator in 2010 were nothing out of the ordinary.
"This occurred as part of standard compliance procedures, which were tightened last year by Parliament to maintain the high standards of the renewable energy industry and to protect consumers", Mr Marsh said. "Invalidated credits do not equal lost or wasted money. If declared invalid for reasons of non compliance they can be re activated once the issue has been rectified".
Renewable Energy Regulator Andrew Livingston told a Senate estimates hearing on Monday that more than 3 million Renewable Energy Certificates (RECs) had been cancelled. Mr Livingston's testimony referred to a 10 year period and the cancellations represent 3.5% of the total number of RECs created during this period. RECs are cancelled for a variety of reasons, from incorrect paperwork and IT lodgement errors to the company creating the RECs asking for them to be cancelled.
"In 2010 1.1 million RECs were invalidated, representing 3.2% of the total created. Although numerically higher than in previous years, this figure is proportional to the number of solar power systems being installed. "There were more than 100,000 solar power systems installed in 2010, which is more than the rest of the decade put together.
"The Regulator is strictly enforcing the standards and that is entirely appropriate. The compliance system is working well and comparisons with the Federal Government's Home Insulation Program are not warranted", Mr Marsh said.
For more information, contact the Clean Energy Council's Media Manager Mark Bretherton on 0413 556 981 or 03 9929 4111.
Sunday, 27 February 2011
RMIT's $1.2m bid to feed home solar to grid
Australian
22 February 2011, Page: 31
RMIT University researchers and local inverter manufacturer MILSystems have begun work on a $1.2 million project to better integrate home generated solar power into the electricity grid. Households with renewable energy generators such as solar panels and wind generators are helping to reduce emissions.
However, surplus energy from household renewable energy sources fed back into the grid could cause issues for electrical distribution networks to deliver a high quality electricity supply at a regulated voltage. "The issue that is beginning to emerge both around the world and also in Australia is that when you put larger numbers of these conversion systems, these energy injection systems, back into your electrical distribution grid you essentially muck up the way the grid works", RMIT researcher Grahame Holmes said.
There can be significant challenges in controlling the voltages between the utility substations and consumers. Voltage levels may exceed safe limits in the grid and the electrical supply to that part of the network may fail. Professor Holmes and his power and energy research group within the RMIT Platform Technologies Research Institute are embarking on a two year project with MILSystems to address the problem.
They will develop a leading edge reactive power control (RPC) inverter to better regulate the flow of power within the grid that results from energy injected from renewable systems. The project has been supported by a $647,000 grant from the Victorian Department of Primary Industries Sustainable Energy Research and Development.
MILSystems will develop the advanced inverter for their part of the project and RMIT will explore how to control and co ordinate large numbers of these inverters. "It is translating the principles of control from small numbers of large capacity technology, which is the present approach, to large numbers of small capacity technology", Professor Holmes said. "Secondly, it is adapting the control strategies of one way energy flow, which is the present understanding of power systems, to a two way energy flow".
Professor Holmes, who is Innovation Professor in Smart Energy Systems at RMIT, said solar injection systems were causing operational problems. He said once the work was completed, appropriate regulatory standards related to solar power systems could be amended to allow the implantation of RPC inverters in the community within the next few years.
22 February 2011, Page: 31
However, surplus energy from household renewable energy sources fed back into the grid could cause issues for electrical distribution networks to deliver a high quality electricity supply at a regulated voltage. "The issue that is beginning to emerge both around the world and also in Australia is that when you put larger numbers of these conversion systems, these energy injection systems, back into your electrical distribution grid you essentially muck up the way the grid works", RMIT researcher Grahame Holmes said.
There can be significant challenges in controlling the voltages between the utility substations and consumers. Voltage levels may exceed safe limits in the grid and the electrical supply to that part of the network may fail. Professor Holmes and his power and energy research group within the RMIT Platform Technologies Research Institute are embarking on a two year project with MILSystems to address the problem.
They will develop a leading edge reactive power control (RPC) inverter to better regulate the flow of power within the grid that results from energy injected from renewable systems. The project has been supported by a $647,000 grant from the Victorian Department of Primary Industries Sustainable Energy Research and Development.
MILSystems will develop the advanced inverter for their part of the project and RMIT will explore how to control and co ordinate large numbers of these inverters. "It is translating the principles of control from small numbers of large capacity technology, which is the present approach, to large numbers of small capacity technology", Professor Holmes said. "Secondly, it is adapting the control strategies of one way energy flow, which is the present understanding of power systems, to a two way energy flow".
Professor Holmes, who is Innovation Professor in Smart Energy Systems at RMIT, said solar injection systems were causing operational problems. He said once the work was completed, appropriate regulatory standards related to solar power systems could be amended to allow the implantation of RPC inverters in the community within the next few years.
Wrestling with a climate conundrum
Sydney Morning Herald
19 February 2011, Page: 16
It's maddening. We have brilliant renewable energy resources, brilliant innovators and a vast pool of superannuation savings looking for opportunities beyond our overvalued, over analysed, ticket clipped top 50 listed companies.
We also have growing recognition that climate change poses a unique risk to traditional investment management strategies particularly here in Australia, where up to 40% of a typical share portfolio might be concentrated in sectors such as resources, which are heavily exposed to a rising price on carbon.
Why can't we join the dots, for example, between a report like Zero Carbon Australia's Stationary Energy Plan, which last year called for investment of $370 billion over a decade to switch this country to 100% renewable energy by 2020, and a report out this week by the actuarial consultants Mercer, called Climate Change Scenarios Implications for Strategic Asset Allocation, urging super fund trustees to divert up to 40% of their investments to so called climate sensitive assets, those suited to a low carbon economy, for the potential upside and because it could reduce portfolio risk.
Why can't we? Why can't we? Why can't we? Many reasons can be advanced, of course and some of them are sound.
A lot of it comes back to traditional approaches to investment portfolio construction, often guided by actuaries such as Mercer. This is why its global report developed over the past 18 months by 14 institutional investors (including VicSuper and AustralianSuper) with $US2 trillion in assets, with advice from the research team who worked on the landmark Stern Review in 2007 is so significant.
Super fund trustees do not worry as much about absolute returns the percentage movement up or down in your super fund balance in any given year as they do about risk. Principally, the risk of being unable to meet their liabilities as members redeem their funds. For super funds investing about $1.2 trillion of our retirement savings on behalf of millions of us, that is a long term proposition as many of us hope to quit work and live off our savings, income guaranteed, perhaps for decades.
The favourite way to manage risk is diversify your assets, although the US investment legend Warren Buffett once said diversification was simply "protection against ignorance,.. it makes very little sense for those who know what they're doing". As super funds grow beyond a certain size they come to own every class of asset domestic and international shares, property, bonds and cash plus a small but growing suite of alternative assets like infrastructure, hedge funds and private equity.
Notwithstanding the reputation that prominent stock pickers such as Buffett acquire, Mercer cites research showing decisions about which asset class to invest in so called strategic asset allocation account for 90% of the variation in portfolio returns. That is intuitive: it is very hard to make money on shares in a bear market, for example. Better to put your money in cash, fixed interest or property.
After diversifying by asset class, the super fund diversifies by manager, each of which has an investment process or "style". The chosen managers create their own diversified portfolio actively buying and selling this or that share, bond, property trust or building, or piece of infrastructure. Or they slash their management fee and passively track a so called index, or basket of representative assets. Layer upon layer of diversification buries risk after risk so if something goes bad, it is a tiny part of the portfolio.
The upshot: being harsh, it is unthinkable for a super fund trustee to invest a large chunk of a portfolio in, say, a series of new solar thermal power stations to be built at an uncertain cost using an unproven technology and valued,.. how? But in climate change we face a crisis unlike any we have faced before. Mercer writes that while some climate sensitive assets may be traditionally deemed as more risky on a standalone basis, selected investments could reduce portfolio risk.
Modelling the impacts of climate change on the different asset classes in a typical portfolio over the next 20 years is difficult, but Mercer tries. It runs four scenarios: from climate breakdown (business as usual, we do nothing, likely 3° of warming by 2050) to Stern action (emissions halve by 2030, carbon price $110/tonne, likely 1.8° of warming). Most asset classes fall in value if we do nothing. Most rise if we take tough action. Under two more probable, middling scenarios a delayed response, or a regionally divergent response the impact is patchier. An underlying theme is evident: delay now, pay more later.
If we are to climate proof our super funds, Helga Birgden of Mercer thinks our traditional approach to portfolio construction "isn't going to stack up a lot of decisions are made on historical quantitative analysis whereas a lot of climate change risk requires qualitative, forward looking input". Julian Poulter of the Climate Institute, who has developed a methodology to help super funds assess climate risk, cites Deutsche Bank estimates that just 06 2% of our super funds assets are lowcarbon.
To lift that to 40%, Poulter says, we are talking $486 billion of investment. "Even over a long time this should start to give market people an idea of the portfolio reconstruction required as a result of climate change. [Super fund] trustees could be in breach of their fiduciary duties if they do not proactively hedge this risk, in the same way they do inflation or interest rates".
paddy.manning@fairfaxmedia.com.au
19 February 2011, Page: 16
It's maddening. We have brilliant renewable energy resources, brilliant innovators and a vast pool of superannuation savings looking for opportunities beyond our overvalued, over analysed, ticket clipped top 50 listed companies.We also have growing recognition that climate change poses a unique risk to traditional investment management strategies particularly here in Australia, where up to 40% of a typical share portfolio might be concentrated in sectors such as resources, which are heavily exposed to a rising price on carbon.
Why can't we join the dots, for example, between a report like Zero Carbon Australia's Stationary Energy Plan, which last year called for investment of $370 billion over a decade to switch this country to 100% renewable energy by 2020, and a report out this week by the actuarial consultants Mercer, called Climate Change Scenarios Implications for Strategic Asset Allocation, urging super fund trustees to divert up to 40% of their investments to so called climate sensitive assets, those suited to a low carbon economy, for the potential upside and because it could reduce portfolio risk.
Why can't we? Why can't we? Why can't we? Many reasons can be advanced, of course and some of them are sound.
A lot of it comes back to traditional approaches to investment portfolio construction, often guided by actuaries such as Mercer. This is why its global report developed over the past 18 months by 14 institutional investors (including VicSuper and AustralianSuper) with $US2 trillion in assets, with advice from the research team who worked on the landmark Stern Review in 2007 is so significant.
Super fund trustees do not worry as much about absolute returns the percentage movement up or down in your super fund balance in any given year as they do about risk. Principally, the risk of being unable to meet their liabilities as members redeem their funds. For super funds investing about $1.2 trillion of our retirement savings on behalf of millions of us, that is a long term proposition as many of us hope to quit work and live off our savings, income guaranteed, perhaps for decades.
The favourite way to manage risk is diversify your assets, although the US investment legend Warren Buffett once said diversification was simply "protection against ignorance,.. it makes very little sense for those who know what they're doing". As super funds grow beyond a certain size they come to own every class of asset domestic and international shares, property, bonds and cash plus a small but growing suite of alternative assets like infrastructure, hedge funds and private equity.
Notwithstanding the reputation that prominent stock pickers such as Buffett acquire, Mercer cites research showing decisions about which asset class to invest in so called strategic asset allocation account for 90% of the variation in portfolio returns. That is intuitive: it is very hard to make money on shares in a bear market, for example. Better to put your money in cash, fixed interest or property.
After diversifying by asset class, the super fund diversifies by manager, each of which has an investment process or "style". The chosen managers create their own diversified portfolio actively buying and selling this or that share, bond, property trust or building, or piece of infrastructure. Or they slash their management fee and passively track a so called index, or basket of representative assets. Layer upon layer of diversification buries risk after risk so if something goes bad, it is a tiny part of the portfolio.
The upshot: being harsh, it is unthinkable for a super fund trustee to invest a large chunk of a portfolio in, say, a series of new solar thermal power stations to be built at an uncertain cost using an unproven technology and valued,.. how? But in climate change we face a crisis unlike any we have faced before. Mercer writes that while some climate sensitive assets may be traditionally deemed as more risky on a standalone basis, selected investments could reduce portfolio risk.
Modelling the impacts of climate change on the different asset classes in a typical portfolio over the next 20 years is difficult, but Mercer tries. It runs four scenarios: from climate breakdown (business as usual, we do nothing, likely 3° of warming by 2050) to Stern action (emissions halve by 2030, carbon price $110/tonne, likely 1.8° of warming). Most asset classes fall in value if we do nothing. Most rise if we take tough action. Under two more probable, middling scenarios a delayed response, or a regionally divergent response the impact is patchier. An underlying theme is evident: delay now, pay more later.
If we are to climate proof our super funds, Helga Birgden of Mercer thinks our traditional approach to portfolio construction "isn't going to stack up a lot of decisions are made on historical quantitative analysis whereas a lot of climate change risk requires qualitative, forward looking input". Julian Poulter of the Climate Institute, who has developed a methodology to help super funds assess climate risk, cites Deutsche Bank estimates that just 06 2% of our super funds assets are lowcarbon.
To lift that to 40%, Poulter says, we are talking $486 billion of investment. "Even over a long time this should start to give market people an idea of the portfolio reconstruction required as a result of climate change. [Super fund] trustees could be in breach of their fiduciary duties if they do not proactively hedge this risk, in the same way they do inflation or interest rates".
paddy.manning@fairfaxmedia.com.au
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