Thursday, 1 December 2011

Coal seam gas may not help climate fight

www.smh.com.au
19 Nov 2011

The federal Minister for Energy, Martin Ferguson, is often criticised but he's right about this: the coal seam gas industry has grown too fast. We have not done our homework before issuing approvals for this $50 billion-plus export industry-on the possible groundwater and land-use impact, on what to do with the millions of tonnes of salt left over, or the impact on Gladstone harbour and the Great Barrier Reef. Crucially, we have rushed to develop coal seam gas reserves as a cleaner alternative to coal, assuming it will help reduce greenhouse gas emissions and tackle climate change. But will coal seam gas reduce emissions? By how much? We don't actually know.

Recent research into fugitive emissions, including peer-reviewed articles by Cornell University's Robert Howarth and the US National Centre for Atmospheric Research's Tom Wigley, both published in Climate Change Letters, have found unconventional plays like coal seam gas or shale gas may deliver no greenhouse benefit at all, or even make things worse.

If that turns out to be right, gas may be an obstacle rather than a bridge to a decarbonised future. With the International Energy Agency warning this month that the energy infrastructure we build over the next five years will determine whether the world is able to limit global warming to 2°, it's hard to think of a more critical climate policy question-or one with more money riding on it. Early this year the oil and gas industry lobby group, the Australian Petroleum Production & Exploration Association (APPEA), commissioned research by engineering consultancy WorleyParsons on the life cycle emissions of coal seam gas versus coal when exported and burned in China.

APPEA did something strange. It only released the executive summary. Why? Because, according to some of its members, there were scenarios which showed how coal seam gas might emit more greenhouse gasses than coal. At worst, if burned in the least efficient ''peaking'' open-cycle turbines, coal seam gas was up to 44% dirtier than the newest, most efficient coal-fired plant. Some inside Worley-and the better coal seam gas companies, too-were unhappy with the association's handling of the report. There was pressure to get it out. The executive director of the think tank Beyond Zero Emissions, Matthew Wright, got wind of the industry disquiet and had an idea: commission a separate study by Worley-in fact, widen its scope-and get the results into the public domain that way. A contract was drawn up and a price agreed: $50,000. Wright believes the work was done and the report drafted. Somewhere, things went off the rails.

Cold feet at Worley, perhaps? All week, starting in Monday's Age and on ABC Radio National's Breakfast program and running from there, the accusations have flown thick and fast. Worley says it and Beyond Zero mutually agreed to drop the contract, no fee being payable. Instead, the same research would be published in a peer-reviewed journal, Energies. Wright flatly denies he ever agreed to that-he still wants the report he commissioned-and claims Worley is suppressing the report to stay on side with the coal seam gas industry which gives it contracts worth hundreds of millions of dollars. Worley rejects that outright and says everything Beyond Zero commissioned-''the full box and dice'', a spokesman told me-will be in the Energies paper. How, asks Wright, when his report had a broader scope than the Australian Petroleum Production & Exploration Association's 80-odd page document, and what peer-reviewed journal would publish all that? As it happened, a fortnight ago APPEA did finally release its own full, original report by Worley. Some media took APPEA's line, saying it proved gas was cleaner; others focused on the previously unreleased information, including less flattering gas-versus-coal scenarios. It's now online.

On Tuesday the Merrill Lynch oil and gas analyst David Heard weighed in with a six-page note to clients titled: ''Green gas debate: who is hiding the fugitives?'' It pulls the APPEA report apart. For a start, the report assumes coal seam gas/liquefied natural gas projects apply best practice in greenhouse gas and environmental management, especially to prevention of venting and leaks in upstream operations. Extreme scenarios for coal seam gas venting and leakage were excluded. Extreme was defined to mean ''other than best practice''. But Heard records his personal observation of a Santos drilling operation in the Cooper Basin (not a coal seam gas well, as it happens) where after fracking and in the flow-back phase ''the well vents a mixture of fracking fluid and gas direct to atmosphere in an unconstrained manner for days''. Heard's colleagues in the US have found likewise.

Then Heard noted how our National Greenhouse and Energy Reporting System (NGERS) allowed the coal seam gas companies to rely on a 2004 US industry-derived document, the American Petroleum Institute's Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Gas Industry, which explicitly stated it was ''neither a standard nor a recommended practice for the development of emissions inventories''. The compendium contains generic assumptions, Heard noted, which may be outdated given the rapid development of unconventional gas extraction, and inapplicable in an Australian context.

APPEA's report admits, on page eight, ''the large-scale CSG/LNG industry in Queensland is new and emissions are only projections subject to high uncertainties in some areas''. Under our emissions trading scheme, carbon price liability is determined according to the emissions reported under NGERS system, including fugitive emissions. Ferguson says leave it to the market, guided by the carbon price. But relying on the Compendium could lead companies to understate emissions and ignore any carbon price signal. If, for example, the coal seam gas companies just use a rule of thumb-a broad average at the end of the year by some junior accountant asked to 'multiply the number of wells we've drilled by a number in a 2004 US document'-there is no price signal.

We need better science on the emissions from coal seam gas and, ultimately, Heard's note backs Wright, expressing concern at the alleged suppression of Worley's report for Beyond Zero, and concluding such a thorough independent expert assessment of full life-cycle emissions would be worthwhile. This week Ferguson ruled out the government commissioning any such report. A spokesman for the Climate Change Minister, Greg Combet, conceded the NGERS probably relied on an estimation approach to emissions from coal seam gas extraction, but said the system allowed for annual updating of estimation methods as new science came in. Lastly, Heard's note criticises APPEA's assumption that gas substitutes for inefficient coal in baseload generation in China. This may not be correct, he writes, ''gas is not really competing with coal at all''.

Heard's concern, on his clients' behalf, is not so much that the coal seam gas companies could face higher-than-expected carbon price liabilities if we had a truer picture of emissions. Rather, it's that amid an increasingly nasty debate on the roll-out of coal seam gas in Queensland and NSW, and given these projects are on thin ice politically as they push east coast gas prices higher by linking us to international markets, the last thing the industry needs is to lose the one thing it had going for it: an apparent benefit in tackling climate change. The gas projects are counting on expansion, to build second and subsequent liquefaction ''trains'', and approvals may prove harder to come by. If the greenhouse benefit claims turn out to be false, it's bad news for the coal seam gas companies.

paddy.manning@fairfaxmedia.com.au
Twitter: @gpaddymanning

Geothermal industry eyes NT

www.abc.net.au
18 Nov 2011

The geothermal industry is eyeing the Northern Territory as a key source of inexpensive and renewable energy. Susan Jeanes from the Australian Geothermal Energy Association says the introduction of the carbon tax has made it more worthwhile to invest in exploratory drilling. Geothermal electricity is produced from energy released from superheated rocks lying km below the earth's surface. Ms Jeanes says drilling has already commenced in the Cooper Basin east of Alice Springs.

"What the problem for the industry is in this early exploration phase is that the rigs that we need to drill holes four and five km deep cost about 50 million dollars," she said. "There's only one here in Australia and that's the rig that's owned by GeoDynamics and that's currently located in the Cooper Basin. So anybody else who wants to drill a deep well has to bring one in from overseas."

Ms Jeanes says people need to embrace more clean energy sources. "The government has come and said we think this is a very important energy resource," she said. "They've got a policy program now that's underpinned by a carbon price that will start to move some money for us. The market has to become more interested in clean energy sources. There are lot of clean energy options around but ultimately we're the only renewable energy on the horizon that is baseload."

Two new geothermal power plants on line in Indonesia

www.utilityproducts.com
20 Nov 2011

Two Indonesian geothermal power plants are coming on stream with a total capacity of 25 megawatts, an official of the state electricity company PLN said. The fourth unit of PLTP Lahendong in North Sulawesi with a capacity of 20 MW is already on trial operation and PLTP Ulumbu in Flores with a capacity of 5 MW is to come on line next month. The two power plants will bring the total capacity of the country's geothermal power plants to 1,205 MW, said Mochammad Sofyam head of renewable energy. PLTP Lahendong, which is jointly owned by PLN and Pertamina Geothermal Enegry (PGE) is already connected to the PLN's system.

Power shifts as Tokyo turns to gas

www.smh.com.au
November 19, 2011

In a direct act of rebellion against Tokyo Electric Power Co, which owns the crippled Fukushima Daiichi nuclear power station, the local government in Tokyo is moving to build a huge natural gas facility. The plant would ensure a stable supply of electricity for the capital in the aftermath of the March nuclear meltdowns. But more important, the city government says, it could spur desperately needed change, breaking the collusion between business and government.

''Now's our chance,'' said Naoki Inose, Tokyo's vice-governor, invoking an ancient proverb about attacking a wild dog only after it has fallen into a river. ''On March 11, TEPCO became the dog that fell into the river. Only then can you fight against such a formidable foe,'' he said. Advertisement: Story continues below So formidable a foe, in fact, that just eight months after Japanese leaders vowed the nuclear disaster would lead to a kind of rebirth, the chances for change are slipping away.

Already, the reformers have lost a crucial ally: Naoto Kan, who as prime minister had called for an end to nuclear power and major changes to the power industry. He was eased out of office with the help of Japan's most powerful industry lobby, a faithful TEPCO supporter that, like many members of Japan's establishment, has benefited from the company's largesse.

''After the accident, I thought there was a real chance for change, but now the move to turn Fukushima into an opportunity for radical reforms is losing steam,'' said economist and author Hiroshi Okumura. ''There's a very big risk that Japan's lost decade, which became the lost 20 years, will now become the lost 30 years.''

Tuesday, 22 November 2011

Low-level radiation in Europe still a mystery-IAEA

www.reuters.com
Nov 16, 2011

Nov 16 (Reuters)-The source of low levels of radioactive iodine-131 detected in several European countries over the past few weeks is still unclear, the UN nuclear agency said on Wednesday. The International Atomic Energy Agency (IAEA) first announced on Friday that traces had been detected in Europe, after it was tipped off by authorities in the Czech Republic. The IAEA has said the traces should not pose a public health risk and that it does not think the particles are from Japan's stricken Fukushima nuclear power plant after its emergency in March.

But the origin of the particles remains a mystery. The IAEA said it was working with countries to seek out the source. "Authorities from the Czech Republic, Austria, Slovakia, Germany, Sweden, France and Poland have continued to measure very low levels of iodine-131 in their respective atmospheres in recent days", the IAEA said in a statement. "The levels of iodine-131 currently being detected are extremely low".

It said that if a person were to breathe in the levels for a whole year, they would receive an annual radiation dose of less than 0.1 microsieverts. In comparison, average annual background radiation is 2,400 microsieverts a year, it said. Iodine-131, linked to cancer if found in high doses, can contaminate products such as milk and vegetables. Experts have said the origin of the radiation, which has been spreading for nearly three weeks, could come from many possible sources ranging from medical laboratories or hospitals, to nuclear submarines.

France's agency for radioprotection and nuclear safety (IRSN) said on Thursday the levels likely originate from central or eastern Europe. Didier Champion, head of environment and intervention at IRSN, said the possible origin could be the Czech Republic, Poland, Hungary, Slovenia, Russia or Ukraine. Austria, which borders several of the eastern countries, could also be a possibility, he said. Austrian authorities say they have ruled out their country as the origin and have suggested that the source is a country to its east or south east.

IRSN is carrying out calculations to track down the trajectory of air masses to identify the origin of the leak. "We should have an answer by the middle of next week", Champion said, ruling out the suggestion that the leak could be from a nuclear power plant. "If it came from a reactor we would find other elements in the air", he said, adding one hypothesis the agency was working on was the possibility the leak came from the pharmaceutical industry.

Iodine-131 is a short-lived radioisotope that has a radioactive decay half-life of about eight days. The Czech Republic's nuclear security watchdog has said it alerted the IAEA after detecting the radiation, which it thought was coming from abroad but not from a nuclear power plant. It suggested it may be from production of radiopharmaceuticals.

South Africa’s first local wind turbine manufacturer to create hundreds of green jobs

www.businesslive.co.za
13 Nov 2011

With COP17 around the corner, the debate around green versus carbon energy is heating up. Some say that if the South African government would genuinely commit to renewable energy, it could kill two birds with one stone: curbing our nation's carbon footprint and paving the way for thousands of new, sustainable jobs. Various research reports over time have shown that the renewable energy industry has massive job creation potential, especially in developing countries.

A good example is the South African Energy Sector Jobs in 2030, published by Greenpeace Africa late last year. According to the researchers, 78,000 permanent and full-time jobs could be created in the next 20 years if renewable energy such as solar and wind becomes more mainstream. Focusing on carbon, including coal fired power plants, would see the creation of only 46.000 jobs. If green energy equipment such as wind turbines and solar panels were manufactured in SA instead of being imported from China and the EU, the number of employment opportunities would climb to 111,700.

Thomas Schaal, founder of SA's first wind turbine manufacturer, agrees with the findings above and is determined to put them into practice. While Isivunguvungu Wind Energy Converter (I-WEC) opened shop only last month and is employing just over two-dozen permanent staff, the number of workers is expected to increase by 700% in the next five years. In the process, the company expects to create hundreds of indirect jobs.

"At the moment we have 30 employees, including engineers, electricians, mechanics, and admin staff", Schaal explained. "In the meantime, we have created about 60 indirect jobs. According to our research, we could create two indirect jobs for every direct employment opportunity, for instance on our suppliers' side". "In the next five years, we aim to create between 300 and 400 full-time direct jobs, as well as 900 to 1,200 indirect employment opportunities", Schaal continued.

These predictions are based on the company's production forecast. While this year's production stands at just one 2.5 MW turbine, I-WEC is expected to manufacture five units next year. "After that, we will increase production to 50 units in 2013, 100 in 2014 and hopefully 200 in 2015", Schaal explained, stressing that 60% to 70% of the wind turbine components will be manufactured or sourced locally. "We are the first company to do so in SA, beating the big players like Siemens and Vestas who are importing their turbines", he noted.

One of the factors that could make or break I-WEC's job creation potential is the extent of the local demand for wind turbines. That is where the government should come in, Schaal said: "Apart from an environmental aspect, the South African government should push the green energy sector because it is labour intensive and has the potential to create thousands of much-needed jobs". He added that he could export the turbines to other parts of Africa: "While we initially want to focus on the South African market, our license allows us to export to other countries too".

I-WEC currently operates from a workshop in Cape Town's harbour, but plans to move to Saldanha sometime next year. "We have procured a piece of land there", Schaal explained. "The reason for moving is that we will have more space in Saldanha. Our turbines are 80 meters tall, and the blades are 50 meters long. We need space", he continued. "In addition, it makes sense to move to the west coast, it is after all this region that has been identified as a wind power hot spot".

Startup to capture lithium from geothermal plants

www.technologyreview.com
16 Nov 2011

As portable electronics get more popular and the market for electric vehicles takes off, demand for lithium--a critical element in rechargeable lithium-ion batteries--could soar. Yet just two countries, Chile and Australia, dominate global lithium production. California startup Simbol Materials thinks it can increase domestic production of lithium by extracting the element, along with manganese and zinc, from the brine used by geothermal plants.

In the late 1990s, the US produced 75% of the world's lithium carbonate, but now it makes only 5%. This is, in part, because US manufacturers couldn't compete with low-cost lithium chemicals from Chile. The US produces no manganese at all. "Yet we have this resource, already being harnessed for geothermal power production", says Luka Erceg, Simbol's CEO. "This is an enormous opportunity to harvest clean renewable energy and produce critical materials in a sustainable manner".

Worldwide demand for lithium chemicals was about 102,000 tons in 2010. This is expected to go up to as much as 320,000 by 2020, mostly because of increased electric-vehicle use. The world's largest lithium resources are estimated by the US Geological Survey to be in Bolivia. Most manufacturers, including the world's largest, in Chile, typically make the material by pumping brine into pools to evaporate in the sun for 18 to 24 months. This process leaves behind a concentrated lithium chloride that's converted into lithium carbonate. The only US producer, Chemetall Foote, drills for brine at Silver Peak in Nevada.

Simbol plans to piggyback on a 50 MW geothermal plant near the Salton Sea in Imperial Valley, California, that pumps hot brine from deep underground to generate steam to drive a turbine. The plant currently injects the brine, which contains 30% dissolved solids, including lithium, manganese, and zinc, back into the ground after the steam is produced. Simbol will divert the brine from the power plant, before reinjection, into its processing equipment. There, the still-warm brine will flow through a proprietary medium that filters out the salts within hours. Simbol has also acquired the assets and intellectual property from a now-defunct Canadian company for a purification process that creates the world's highest-purity lithium carbonate. Erceg expects to compete with the lowest-cost Chilean producers, which produce lithium at $1,500 a ton.

Simbol currently runs a pilot plant that filters 20 gallons a minute. The commercial plant, near Salton Sea, will begin construction in 2012 and will have the capacity to produce 16,000 tons of lithium carbonate annually. The world's third-largest producer, by comparison, makes 22,000 tons. By 2020, Simbol plans to triple production by expanding to more geothermal plants, Erceg says. But for now, it is buying low-grade lithium carbonate from other manufacturers for purification, and it expects to sell the high-purity product overseas before the end of this year.

Other lithium-mining projects are planned or underway around the world, including two more in Nevada. Keith Evans, a geologist and industrial minerals expert, says that if they all come online, global production in 2020 could be over 426,000 tons, far outstripping demand. Nevertheless, more US production could make the country self-sufficient. Plus, he says, Simbol could have an advantage over other US companies. "If their process is as good as they say it is, it could be a very-low-cost producer", Evans says. "It is potentially a very exciting project, if it works".

Saturday, 19 November 2011

E.ON tests wind-power storage in German gas supply network

www.rechargenews.com
16 Nov 2011

German utility E.ON has unveiled plans for a €5m ($6.8m) pilot plant that would use wind power to produce hydrogen for storage in the country's existing gas grid. The facility, in Falkenhagen in northeast Germany, will use power from intermittent renewable sources to generate about 360 cubic metres of hydrogen per hour through electrolysis-the process by which hydrogen and oxygen can be separated out of water.

Hydrogen produced at the plant, expected online in 2013, will be blended into the natural gas flowing in the Ontras pipeline, making the grid a storage system for renewable energy. "We need new storage capacities so that we can further increase the share of weather-dependent wind power in our generation portfolio in coming years", says Klaus-Dieter Maubach, the member of the E.ON board responsible for technology and development. "Using the existing gas infrastructure to store hydrogen is a promising approach in the long run, enabling us to combine our strengths as a power and gas company".

E.ON foresees increasing the concentration of hydrogen mixed into the gas from current levels of 5% to 15% "in the medium term". According to E.ON, the world's entire current renewable power output could be stored on the German gas grid. The company is also fast-tracking plans to boost its pumped-hydropower storage capacity. It intends to expand the existing pumped-hydropower facility at Edersee in the federal state of Hesse and has joined a consortium building a new plant on the German-Austrian border.

Local solar panel maker has to halt production

www.smh.com.au
16 Nov 2011

AUSTRALIA'S only solar panel maker, SilexSolar, yesterday suspended manufacturing at its Homebush plant saying it had been decimated by Chinese imports, the high dollar and a lack of support from state and federal governments. In August, the company stopped making the cells that went into its solar panels, sourcing them instead from its Chinese partner Hareon, with the loss of about 30 manufacturing jobs.

Another 45 jobs have gone in the round of restructuring announced yesterday, with all panel manufacturing suspended and the plant put under care and maintenance. SilexSolar still employs about 20 people, mostly in sales and marketing. Its future would be decided in the next few months, said Michael Goldsworthy, the chief executive of parent Silex Systems, which paid $6.5 million for the Homebush operation to BP in 2009.

Dr Goldsworthy said solar manufacturers around the world were suffering as China had risen from 6% to 60% of global production in about three years. There was a glut of solar panels, particularly as European countries wound back subsidies, and in the US there were allegations of dumping. In Australia, too, Dr Goldsworthy said, ''Right now, we think we're seeing dumping''. He said it was ironic the decision to suspend manufacturing at this country's only solar plant was occurring just as the carbon price package was finally passing into law.

Australia had been a leader in solar technology but with the wind back of subsidies for small-scale solar under the federal government's renewable-energy target, and with no support in NSW pending a nine-month review of feed-in tariffs by the Independent Pricing and Regulatory Tribunal, there was now ''no value on solar power generated in NSW''.

''It's been disappointing to be honest,'' he said. ''The state government told us to see the federal government and the federal government told us to talk to the state government.'' A spokeswoman for the NSW Energy Minister, Chris Hartcher, said it was ''unusual SilexSolar didn't wait until IPART handed down its draft determination into a fair price for solar before announcing a suspension of activity-given the draft report is due to be released by the end of November''.

France to complete world's largest tidal energy plant in 2012

www.wired.co.uk
16 Nov 2011

From Summer 2012, the French coast near Paimpol-Bréhat in Brittany will be home to the world's largest tidal energy plant. The project, which was originally conceived in 2004 and began construction in 2008, will provide power for up to 4,000 homes in the area, costing somewhere around 40 million euros (£34 million). The Irish company building the project, OpenHydro, has previously built facilities in the US, Canada, France, Scotland and the Channel Islands, but the scale of the French plant will dwarf them all.

The installation will consist of four two-megawatt turbines with a diameter of 22 metres, sitting anchored to the seabed 35 metres below the surface. Each weighs 850 tonnes and is connected to the French national grid. There are several significant advantages to tidal energy over the likes of solar, hydroelectric and wind. It has a very low environmental impact -- turbines are designed with a large open centre to allow marine life to pass through without getting caught in the blades. There are no oils or greases involved in the construction, and it produces very little mechanical noise. From the surface, they're invisible.

Then there's the benefit that tidal power is very predictable. Solar, hydroelectric and wind power output can be predicted to an extent but essentially depend on the weather, whereas we know to a very high degree of accuracy exactly how much energy will be generated by the tides at any given day and time. It's hoped that these advantages will encourage the roll-out of similar plants in other areas of strong tidal activity around the world.

Friday, 18 November 2011

E.ON takes on German government

www.electric.co.uk
17 Nov 2011

Right now there are a lot of people wondering where the energy industry is going. A lot of people want to pull the plug on nuclear power and move on to things like wind, solar, and tidal. Well, it appears that the German government just so happens to be on the side of cancelling all nuclear power products. This is something that E.ON does not agree with. E.ON, which is the leading utility company in Germany, said that it has taken steps to sue the German government. The company said that it would sue the government over its plans to completely phase out nuclear power generation. A spokesman for the company said that they will file a complaint this week.

It's pretty easy to guess that the German government chose to phase out nuclear power after the disaster in Japan that led to the meltdown of Fukushima. A lot of places around the world are now wondering just how safe nuclear power stations really are. There are some countries, like Germany, that do not think that this kind of energy is worth the risk anymore. In fact, this is why the German government is now looking forward to cutting nuclear power out of its energy game plan. They want to introduce a series of rules that will set in motion a faster than expected adoption of other renewable energy sources.

A spokesman for E.ON said it is about interference with property rights that are protected by the most basic German laws. In the eyes of E.ON, this latest announcement from the government is completely against the constitution. E.ON is not prepared to just sit by and watch the government put such rules into effect without a fight. Of course, the German government is not the only government that feels this way about nuclear power. Many other countries around the world are in the middle of considering the same thing. They are planning on phasing out nuclear power as well. This could mean big problems for energy companies all over the world.

On top of all of this, the general public supports the phasing out of nuclear power. After seeing what happened in Japan, most people admit that they no longer feel safe with nuclear power. This is putting energy companies in a hard spot. This goes double for energy companies that rely a lot on nuclear power. It is not known if other companies around the world will fight against the phasing out of nuclear power.

Belgium will eliminate all nuclear power plants by 2025

www.care2.com
11 Nov 2011

Belgium is a small European country with political parties that don't usually agree. But one thing they do agree on is their country's energy future–and it doesn't lie in nuclear power. Although nuclear power currently accounts for over half of the country's energy, Belgium's leaders recently announced that both of its commercial nuclear sites will be closed permanently by 2025. The two Belgian nuclear sites are located at opposite ends of the country. Doel Nuclear Power Station is on the northwest side near the port of Antwerp. The Tihange Nuclear Power Station is to the southwest along the Meuse River.

Although the country drew up plans to phase out its nuclear power plants back in 2003, public hostility towards nuclear power since Japan's nuclear crisis at Fukushima, encouraged leaders to announce formal plans for implementation. And Belgium isn't the only country to bail on nuclear power since Fukushima. Since the disaster, Japan abandoned its plans for 14 new nuclear plants and Germany announced that it would shut down all 17 of its nuclear plants by 2022. Switzerland followed Germany's example by agreeing to eliminate its dependence on nuclear power by 2034. Belgium, like these other countries, is confident that its growing energy consumption needs can be met through renewable sources.

£100m boost for green energy plans

www.google.com
13 Nov 2011

An extra £100 million will be made available to support green energy projects in Scotland after a deal was stuck between Holyrood and Westminster. Chancellor George Osborne announced the Scottish Government would be able to spend half of the cash in the fossil fuel levy fund. The fund, currently worth about £200 million, is held in London but can only be spent to promote the use of energy from renewable sources in Scotland.

SNP ministers have made repeated calls to be allowed to access the funding pot-which is made up with cash from suppliers of non-renewable energy sources. Mr Osborne revealed an agreement had been reached with the SNP administration that would allow them to spend half the cash in the fund. The other half of the money will be made available to support the capitalisation of the £3 billion UK-wide Green Investment Bank. Holyrood Finance Secretary John Swinney said the announcement, "though long overdue, is welcome nonetheless".

He added: "For too long Scotland's money has been sitting unspent in an Ofgem account in London. "We have consistently pressed the UK Government to deliver a pragmatic solution that accelerates the release of funding for renewable energy projects that are ready to go now in Scotland. "The proposal we put to the UK Government has at last broken this logjam and made over £100 million additional funding available now-vital funding to support further renewables investment and make the Green Investment Bank a reality for ongoing support". In the future, as further money becomes available via the fossil fuel levy fund, this will be split equally between the two governments.

Thursday, 17 November 2011

Denmark’s green energy future is built on offshore wind

www.cphpost.dk
11 Nov 2011

Twenty years since it built its first offshore wind park, Denmark believes they are key to achieving a future free of fossil fuels. "There is a lot of wind here, and the shallow waters off the Danish coast mean it is not so expensive to build at sea here, as it is in other places," said Steen Gade, a Socialistisk Folkeparti MP who chairs parliament's Climate and Energy Committee. "We have good prospects for producing a very high degree of windmill-generated electricity for Denmark and also the rest of Europe, in the long run," he told Xinhua.

Denmark already has hundreds of onshore facilities and several offshore wind parks. According to the Energistyrelsen, the state energy regulator, the share of installed offshore megawatts jumped from 423 MW in 2008 to 868 MW in 2010. The total installed capacity, at land and sea, equaled 3.8 gigawatts last year, representing 25% of the country's electricity demand.

Moreover, Denmark is good at involving local residents in the planning of wind turbine projects, be they on or off shore. This has helped reduce complaints that wind turbines are noisy, cast irritating shadows and disfigure the landscape. "The Danish cooperative model involves private persons in the ownership of wind turbines, because you want the project to be accepted, and also to avoid the NIMBY or, 'Not In My Back Yard' effect," said Hans Christian Sørensen, board member of the Middelgrunden Vindmøllelaug, a cooperative that owns part of a wind farm in at the entrance to Copenhagen Harbour.

Clearly visible from housing and recreation areas on land, from ships plying the harbour, and from aircraft coming in to land at the nearby international airport, these turbines required full, local acceptance before they could be installed. The idea for the park was raised as far back as 1993, and consultation with area residents and non-governmental organisations about where and how to place the wind turbines started soon after. Moreover, the park is unique because it is the first Danish offshore wind farm based on sale of shares.

"As a shareholder, you buy a share for 4,250 kroner and in the beginning you get about 600 kroner back in revenue every year, which means about 14 to 15% return," Sørensen told Xinhua. "But today, after more than 10 years, we have all the money back and you get about seven% every year on invested capital. People are quite satisfied with this because it is much better than having it in a bank, and at the same time, you are doing something positive for the environment," he explained.

The park, which became operational in 2000, cost about 350 million kroner to build. Today, it has some 8,856 shareholders who are free to trade their shares. According to Prof. Peter Karnøe of Copenhagen Business School, collective ownership has deep roots in Denmark. Banks, dairies and abattoirs have all experienced success with the co-operative model, while onshore wind turbines have been co-operatively owned since the 1970s. "Those who had to look at the wind turbines in their backyard also owned the wind turbines. And when the wind turbine was turning around they could hear the money going into their bank account," Karnøe told Xinhua.

On a windy day, the Middelgrunden windmills, with an installed capacity of 40 megawatts, turn their blades briskly, even as the seawater around them grows choppy, and residents on land turn their collars up against the stiff breeze. The park produces an average 100 GW hours of electricity, equal to meeting the power needs of 40,000 Copenhagen households. The power generated is carried by cables to a transformer plant 3.5 kilometers away, and then to a central grid, which also handles power generated from conventional sources.

From here, it is redistributed to households at a set cost per kilowatt-hour. Under Danish law, wind park operators or utility companies must buy the power generated by wind parks. Individual households and businesses then buy electricity from utility companies. Middelgrunden's experience has also inspired similar co-operatively owned offshore parks near urban areas in Avedøre, in southern Copenhagen, and a 22 MW site off the holiday island of Samsø. "wind farms today are like power stations. They are very huge, so it's important to get local residents on board," said Andreas Krog, a DONG Energy spokesperson on renewable power.

The Middelgrunden park is operated by DONG, Denmark's biggest energy and utility company, which also owns half of the park's 20 turbines. "In a small country like Denmark the number and size of wind turbines you can built on land is limited. (DONG is) looking at offshore turbines because that is where we see huge potential. That is where you have good wind resources and plenty of room," Krog told Xinhua. But large, deepwater offshore parks are costly, needing deep foundations for the turbine towers and long cables to bring the power to transformer stations. They are also more expensive to build and repair because of their location. Thus, they are mostly funded by private or public companies rather than co-operatives.

Krog admits that currently, the cost advantage of offshore parks are few, but they enjoy economies of scale, as dozens of big turbines can be placed without any interference, far out at sea. For instance, DONG already operates a 160 MW offshore park off the west coast of Denmark's Jutland peninsula. It is also building a 400 MW offshore park, equivalent to 111 wind turbines, and designed to meet the energy needs of 400,000 Danish households, in the Kattegat Sea, between Denmark and Sweden.

"Placing these onshore on the Danish landscape would be totally impossible," Krog observed. Meanwhile, smaller offshore projects situated in coastal waters, remain a viable option. "The idea is to have local residents involved in smaller offshore projects where you have the space for it, have better wind, and shallow water near the coast, where it is cheaper to install parks than in deep water," Sørensen remarked. Today, around 17% of Denmark's total energy production comes from renewable sources including wind, biomass, and solar power. The Danish government wants wind power to represent 50% of electricity consumption by 2020, and to phase out fossil fuel use by 2050.

Wind parks, both on and offshore, remain central to achieving these targets, but that will mean pricing green power correctly. "We should not be trapped in a situation where the government has to agree on too high a price for wind power," Karnøe cautioned. He was referring to cases in which the government has supported an above market-rate price per kilowatt-hour of electricity produced by offshore wind parks, so as to encourage renewable power projects.

"Too high a price not only raises the overall energy price but also gives a bad reputation: that wind power is nice, but too expensive," he explained, adding that it is only too expensive if one does not account for environmental costs accruing from fossil fuel use. But the government is confident that wind power will become cheaper. "As evolution in the industry continues, windmill electricity is becoming more and more competitive, and the amount of money that we use to support it, is going to be lower and lower," Gade said.

Solon wins 5.5MW PV order in Germany

www.newenergyworldnetwork.com
11 Nov 2011

European photovoltaic (PV) manufacturer Solon AG has been contracted by Green Energy 3000 to supply modules for a 5.5MW development in Scheibenberg, Germany. The panels will attach to a fixed ground mount and the facility is expected to be grid connected by the end of the year. Andreas Renker, managing director of Green Energy 3000, said, 'We wanted the best possible quality and service. That's why we decided to choose Solon AG products. Through the use of high-quality system components, we expect an annual yield of around 5.3 million kWh.' At the end of last month, Solon AG unveiled plans to construct a 10MW PV plant in Kingman, Arizona, and sold a facility in the north of Italy to Norwegian investment group EAM Solar.

China to add over 2.0 GW solar power capacity in 2011

www.reuters.com
11 Nov 2011

(Reuters) - New solar power capacity in China, the world's top energy user, may quadruple from last year to more than 2.0 gigawatts (GW) this year, an official of the research arm of the National Development and Research Commission (NDRC) said on Friday. China's total solar power capacity could reach around 3.0 GW by the end of this year, Li Junfeng, deputy director-general of the Energy Research Institute of the NDRC, told the China Energy Enterprises Summit Forum. In August, China set unified benchmark grid feed-in power tariffs for solar projects for the first time, a move that analysts said would be positive for solar power developers given a fast falling trend in development costs. The government has raised its installed solar capacity target for 2020 to 50 GW, up from the previous goal of 20 GW, state media have quoted Li as saying.

Monday, 14 November 2011

Better forecasts put more wind on grid

www.bostonherald.com
12 Nov 2011,

MINNEAPOLIS — Using new weather-forecasting technology, Xcel Energy says it has vastly improved its ability to predict when wind turbines will run and boosted how much electricity they send to the power grid. The new capability saved $6 million last year by allowing the utility to avoid running fossil fuel power plants when it could rely on wind power instead, according to the Minneapolis-based utility. Scientists at two national labs in Boulder, Colo., contributed to the new prediction system, which was developed under contract to Xcel Energy and used by the utility over the past two years. It was formally turned over to Xcel Energy last month.

The system feeds real-time data from the National Weather Service and wind farm sensors into software that forecasts wind turbines' power output, primarily for the next day. William Mahoney, program director at the National Center for Atmospheric Research, the prime developer of the system, said it is 35% more accurate than previous prediction tools, and builds on decades of atmospheric research by scientists at the Boulder lab, a unit of the National Science Foundation.

"We certainly took advantage of their knowledge base, technologies that have been developed, software and other things and ... brought it to bear on this solution," he said. John Welch , director of power operations for Xcel Energy in Denver, said the technology is helping energy traders and dispatchers there to better predict the output of the utility's wind farms in Minnesota, Wisconsin, Colorado, New Mexico and Texas.

Each day, Xcel Energy must predict how much wind power will flow onto the grid for the next day, and decide how much to rely on coal-or natural gas-fired power plants. If wind farms generate more than predicted — sending too much juice to the grid — their output typically is curtailed by turning off some units and by other means. Big power plants can be harder to dial back.

These energy-wasting wind farm curtailments had been happening about 2% of the time. Xcel Energy says the new prediction system has cut that to about 1%. Xcel Energy, which has the most wind power capacity of any US utility, also said it is hitting new milestones in generating off-peak wind power in Colorado and Minnesota, mainly at night when wind blows and electrical demand is low. In Colorado, after two new wind farms were added, Xcel Energy said it recently generated more than 50% of its nighttime load from wind on eight occasions. In its Minnesota region, the utility said it recently hit a 37% wind power share at night.

"Five years ago I never would never have anticipated that, but it is a new reality and one that is exciting. We're glad that we're on the leading edge of this," said Welch, who attributed those milestones partly to better forecasting. Michael Goggin , manager of transmission policy for the American Wind Energy Association, an industry trade group, said Texas wind farms have contributed more than 25% of nighttime power, and utilities in Spain and Ireland have gotten 50% of off-peak electricity from wind. Goggin said that as wind power supplies more electricity, "we need to be doing the right types of forecasting. ... It pays tremendous dividends, as the Xcel Energy numbers point out."

South Korea to pour $9 billion in wind power generation by 2019

www.reuters.com
11 Nov 2011

(Reuters) - South Korea, heavily dependent on energy imports, will invest about 10.2 trillion won ($9 billion) in building a 2.5-gigawatt wind power generating complex through 2019 to diversify its energy resources, the Ministry of Knowledge Economy said on Friday. The offshore wind farm project in the southwestern region will be led by state-run Korea Electric Power Corp (KEPCO) and its fully owned six utilities, a statement from the ministry of knowledge economy said. Power generation from the project will be equivalent to meeting the average demands of a city with 5.56 million people, or about 10% of the country's population, the statement noted.

Australian researchers develop prototype truck that runs on hydrogen

www.asianscientist.com
10 Nov 2011

AsianScientist (Nov. 10, 2011)-RMIT University researchers have developed Australia's first hydrogen fuel-cell truck, demonstrating how vehicle design and new sustainable technologies can make freight transport clean, green and silent. The small-scale model-an exact replica of the Scania Highline series-is operated by remote control and simulates the performance of a long-haul diesel truck, typically used between Melbourne and Sydney.

Professor Aleksandar Subic, Head of the School of Aerospace, Mechanical and Manufacturing Engineering, said given the carbon tax, emissions trading and rising diesel costs, new sustainable technologies offered industry a way of stabilising costs. "For residents worried about fumes and noise, the prospect of a silent, zero-emission truck is exciting", he said. "This latest innovation stems from our comprehensive research into sustainable mobility involving hydrogen technologies. We are also researching production of hydrogen using photovoltaic arrays and electrolyses, and solid state hydrogen storage", he added.

The hydrogen-powered electrical system could also supply power for truck air-conditioning and radio, along with a trailer refrigeration unit. Hydrogen refilling stations are powered through solar PV panels. RMIT Associate Professor John Andrews said students were testing the small-scale truck against pre-defined dynamic loads, with the result being scaled up using mathematical models to predict the performance of a full-scale truck.

"A wireless data system is being used to monitor truck performance and collect the critical data such as hydrogen consumption rate and electrical power supply", Prof. Andrews said. Road freight transport is an AU$35 billion industry in Australia, and the nation has some of the highest freight levels per capita in the world. Trucks account for about 20% of Australia's greenhouse emissions by road vehicles.

Sunday, 13 November 2011

760 celebrate launch of Australia’s first community wind farm

www.hepburnadvocate.com.au
10 Nov, 2011

THE Hepburn Community Wind Park was declared officially open on Saturday, November 5. The ribbon was cut by 10-year-old Neve Bosher of St Augustine's School in Creswick, who won the competition to name the turbines. Her winning names are Gale and Gusto.

As part of her prize, Neve was given a small parcel of shares, joining 1900 others who jointly own Australia's first community-owned wind farm, 10 km south of Daylesford, in Central Victoria. The wind farm has been built by a community that decided six years ago to begin taking responsibility for their energy needs. The two turbines are projected to produce more energy than the houses in Daylesford use each year.

Per Bernard, founder of Hepburn Wind said: "In Denmark, where I was born, most wind farms are owned by communities. I am so proud that the Hepburn community has come together to benefit from renewable energy". The success of the 'Hepburn Model' has inspired communities across the nation to build similar projects, including the neighbouring communities of Woodend and Castlemaine.

Initiated with the support of Sustainability Victoria, the project recently received a prestigious Banksia Environment Award as well as the Victorian Premier's Sustainability Award. David Karoly, one of Australia's leading climate scientists, said: "This project demonstrates that there's a viable business plan for communities to build wind farms on a small scale all around Australia in rural and regional areas and it will generate income and jobs".

Simon Holmes a Court, Chairman of Hepburn Wind said: "Australians love renewable energy. With the passage of the carbon legislation this week, many other regional communities will benefit from the transformation of our energy sector". The wind farm is located on the property of long time Leonard's Hill farmers, the Liversidge family, who, as well as growing potatoes and cattle, are now wind farmers.

Solar panel raw material price to plunge

idealab.talkingpointsmemo.com
10 Nov 2011

The price of the material from which most conventional solar panels are made is going to continue to plummet, reports Bloomberg The price of polysilicon is expected to drop nearly 40% from its already rock-bottom price of $33/kg today to $20/kg after 2012, according to an analyst at HSBC Bank quoted in the Bloomberg report. Three years ago, the price of polysilicon was $435/kg.

The price decline is directly attributable to a corresponding increase in the supply of the raw material. In 2011, the global industry produced 20% more polysilicon than the year before. In 2012, that number is expected to grow again up another 28%. That, in turn, is anticipated to result in a dramatic thinning of the entire raw materials industry, with up to two-thirds of the world's 66 polysilicon producers being either forced to merge or going out of business, according to analysts in the Bloomberg report.

One country will be hit worst of all by the glut, specifically, the one that has prized itself on cheap manufacturing: Up to 90% of China's 35 polysilicon producers, accounting for over half of the country's total output, could halt production due to the increased supply, the report notes. Chinese polysilicon producers have gotten themselves into an unwinnable arms race with European and American polysilicon producers, according to Taiwanese news website Want China Times.

Though China achieved record levels of exports in the three months from July through September, according to the China Customs department, the amount of polysilicon exports for the first three quarters of 2011, 49,000 tons, is roughly the same as the number of exports, over 48,000. Meanwhile, in the United States, the harsh business reality of a polysilicon oversupply is already changing business plans for at least one of the three American polysilicon companies.

The country's and the globe's biggest polysilicon producer, Hemlock Semiconductor Group, announced on Thursday that it was delaying plans to open a new facility in Tennessee in 2012 and cutting an unspecified number of 2,500 contractors scheduled to work on the project, Bloomberg reported. That plant would've expanded the company's polysilicon production capacity by 28%.

IPCC report supports feed-in-tariffs

www.eco-business.com
8 Nov 2011

Australian states without solid feed in tariff programs or reviewing their current arrangements should take note of the Special Report on Renewable Energy Sources and Climate Change Mitigation published by the Intergovernmental Panel on Climate Change (IPCC). Released some months ago and prepared by over 130 lead authors working with the IPCC, the report seemed to hardly make a ripple in Australia, perhaps due to its complexity. Consisting of 11 chapters, the section on Financing, Policy and Implementation alone is 135 pages.

The authors state a number of studies, including those carried out for the European Commission, have found well-designed and well-implemented feed in tariffs are the most efficient and effective support policies for promoting renewable energy generated electricity.

In relation to net metering, the option currently available to New South Wales solar households since the sudden-death of the Solar Bonus Scheme for new connections, the report says while it is generally considered an easily administered tool for promoting uptake and also benefits power companies, the experience in the USA has shown the level of incentive is generally insufficient to stimulate substantial growth of PV. Opponents of feed in tariffs usually base the crux of their argument on cost.

The IPPC report states: "It is also important to include all costs and benefits to society in that calculation. Conducting an integrated analysis of costs and benefits associated with RE is extremely demanding because so many elements are involved in determining net impacts.... Few studies have examined such impacts on national or regional economies; however, those that have been carried out have generally found net positive economic impacts".

The recent NSW Auditor General's report on the state's Solar Bonus Scheme was particularly scathing, but was focused on cost rather than the real value the Scheme. For example, New South Wales Opposition leader John Robertson flagged the volume of households participating in the scheme has resulted in New South Wales not needing any new billion-dollar base load coal-fired power plants for several years.

While the very generous rate offered by the NSW Solar Bonus Scheme likely went on for too long, the Government's reaction to the situation and current snail-pace in re-implementing a more sustainable scheme has also raised questions about its commitment to renewables.

According to a report on the Daily Examiner, John Robertson commented on Monday that Premier O'Farrell is making a special effort "to kill off every form of renewable energy in this state". Aside from "doing everything they can to attack the solar industry", Mr. Robertson says Premier O'Farrell is on the record as saying no further approval for wind turbines in NSW would be granted if he had his way.

Also on Monday, across the border in South Australia, the Essential Services Commission of South Australia (ESCOSA) released its draft report on solar tariffs. Recent changes to South Australia's feed-in tariff scheme have changed the rate new customers installing solar power systems are paid. The revised scheme will be open to new applications until October 2013.

New connections under the program now receive 16¢ per kW and an electricity retailer's contribution of an additional 6¢. The combined rate of 22¢ is roughly equivalent to current retail electricity costs; so in effect, a 1:1 feed in tariff for now, as electricity prices will increase.

The electricity retailer's contribution rate for solar households in South Australia is under review and will be determined by ESCOSA. The amount to be determined is to "reflect the fair and reasonable value to a retailer of electricity fed into the network, and all retailers selling electricity to eligible customers would be required to pay the amount".

While the revised electricity retailer contribution rate looks like it will be increased by up to a few¢, the Clean Energy Council (CEC) says overall it is disappointed with the report due to its narrow scope and ESCOSA's lack of recognition of a range of benefits home solar power contributes "simply because calculating those benefits might be difficult".

However, the CEC says the report had some positive aspects, in particular the commission's willingness to accept the impact distributed PV has on reducing overall and peak electricity prices.

Saturday, 12 November 2011

Clean options look good for area written off as a wasteland

www.watoday.com.au
9 Nov 2011

FOR the federal government ''clean energy future'' is the slogan used to sell its carbon tax package. But for Whyalla, and the rest of the Eyre Peninsula in South Australia-which Tony Abbott famously predicted would become ''a ghost town, an economic wasteland'' and even be ''wiped off the map'' under the carbon tax-clean energy is the future.

Mark Cant, a former Liberal candidate for the SA Parliament and now the chief executive of the Whyalla and Eyre Peninsula Regional Development Board, said the district had advanced plans to become a renewable energy centre. Advertisement: Story continues below ''We want to be one of the top 10 clean-energy regions in Australia,'' he told the Herald, rattling off a list of projects in the final stages of planning.

There's a wave energy pilot project set to begin in December, a rare earth minerals processing plant-providing metals used in modern technologies such as hybrid cars and iPods-also set to begin construction this year, well-advanced plans for a large-scale solar project and a study showing the region has the potential to provide big amounts of wind power.

Mr Cant said companies including Pacific Hydro, Orica and Origin Energy had bought land in the area and put up monitoring systems in preparation for possible wind-power investments and the region intended to apply to the federal government's clean energy fund for a high-voltage transmission line to connect the proposed projects to the national electricity network.

Mr Abbott's prediction (the ''wiped off the map'' phrase was repeating the forecast of a local union official) was based on the impact he believed the tax would have on OneSteel, the region's largest employer.

But when the carbon tax was announced, that company issued a statement saying it was ''appropriate and sensible''. The package offers OneSteel about $120 million of a $300 million, four-year steel assistance package. The company would also receive 95% of its required pollution permits free. But the industry remains under pressure because of the strong Australian dollar and the long-term impact of the tax, so OneSteel is reviewing its Whyalla operations.

Mr Cant said: ''What we are trying to do is to diversify Whyalla and the region, to get other industries to set up in our locality and most of those projects will benefit form the carbon tax,.. we want to become a manufacturing centre for the clean energy sector,.. ''We have competitive advantages in our location, our workforce and our port access. We see this as the way of the future.''

No cash for Bob’s mates

Australian Financial Review
9 Nov 2011

The chairwoman of Labor's $10 billion clean energy fund said it would not be handing out cash to "Bob Brown's friends", and warned that the money may not all be spent if p​roposed green projects did not meet strict commercial standards. Jillian Broadbent said it was important the economy developed a strong renewable energy industry to complement its resources sector and rejected claims by the opposition it would be a "Bob Brown slush fund" and put taxpayer funds at risk.

"It is not going to be day one - here is the money, come in and sign and take a whole pile of it", Ms Broadbent told The Australian Financial Review, "A lot of language of the opposition seems to suggest that type of approach - that you are going to be handing it out to Bob Brown's friends or something. It's weird", said Ms Broadbent, who is also a director of the Reserve Bank of Australia. "We are not printing money".

Announced as part of the carbon price package, the Clean Energy Finance Corporation will invest in clean technologies through loans, loan guarantees and equity investment to attract private investors such as super funds, which so far have been reluctant to invest because of the perceived risk. The fund - to be set up next year - has been the subject of heavy criticism from the opposition, which has vowed to scrap it if elected.

Ms Broadbent, along with fellow senior finance sector figures David Paradice and Ian Moore, has been appointed to consult with key stakeholders and report to the government by mid - March 2012 on an implementation plan for the CEFC and its investment mandate. Ms Broadbent said it was important to see the CEFC as a component of federal and state governments' attempts to position Australia in a worldwide, low - carbon economy.

"It is a global dynamic and the sooner we set up a fund which is an integral part of that spectrum of ​policies, the better", she said. "In Australia we are a large exporter of black energy. China is one of the biggest investors in renewable energy and a lot of that has to do with how they want to position themselves for the future world, not the past world. "We have to position ourselves for the future world because we have done very well out of exporting energy and we want to be there when the technology is changing. We want to make sure that our energy doesn't get rejected just because it is black".

Appointed chancellor of the ​University of Wollongong in 2009, Ms Broadbent started her career as an economist at the RBA before moving to Bankers Trust, where she was executive vice - president. Ms Broadbent was named Qantas businesswoman of the year in 1987 and went on to serve on the boards of Qantas, Westfield, Woodside Petroleum and Coca-Cola Amatil. She is now a director of ASX Ltd and Woolworths.

The CEFC is not intended to ​compete directly with the private sector but act as a catalyst to private investment, which is now un​available. In the United States, the provision of loan guarantees for renewable energy projects has been the subject of controversy after the collapse of a solar company, Solyndra. However, Ms Broadbent said she did not believe the CEFC would be putting taxpayers' funds at risk.

"It is what financiers do all the time - balancing risk, servicing their clients and yet holding on to their shareholders' money", she said. "There is certainly going to be rigorous requirements. My idea is that 'look, you have to reach certain goal posts before this is commercial'. You have to get up the supporters. Energy development and energy policy are a long journey".

But opposition environment spokesman Greg Hunt said the CEFC was a risky way to spend taxpayer funds. "The purpose of this fund is to invest in speculative ventures using borrowed money which the private sector would not fund", he said. "The experience in the United States as seen with Solyndra and a second collapse this week is this is an incredibly risky way to spend taxpayers' funds". Ms Broadbent said that despite the global economic environment, it was important to push ahead with the carbon price scheme and the CEFC.

"The problem is there is a hell of a lot going on in the world and it is incredibly unnerving", she said. "In the meantime, as far as the fundamentals - is energy important to Australia? Yes. Have we got a role to play in the transition to a low - carbon economy when we are exporting goods that have a very high carbon impact? That hasn't changed in 20 years, really".