Thursday, 25 August 2011

Bid to go local on energy funding

Australian
18 August 2011, Page: 6

THE peak union body is demanding that Julia Gillard's government quarantine billions of dollars of her clean energy program to help local manufacturers. The ACTU wants the government to introduce local content policies, to be set by cabinet, on certain projects able to tap government grants and finance under the government's carbon tax package.

But the policy, which if adopted could prove a blow to companies that have invested here such as Denmark's Vestas and Spain's Acciona Energy, is opposed by overseas clean energy investors. The ACTU is insisting that the policy be applied to the $1.2 billion clean technology program, which will give grants for research into low-pollution technologies and energy-efficient manufacturing.

It also wants it applied to the $10bn Clean Energy Finance Corporation, which will provide loans and equity investments in renewables such as geothermal and other clean energy technologies. ACTU president Ged Kearney said investments in local jobs and industries were an "important part" of the carbon pricing move. "Australian industries are innovative and have the initiative to drive investment in clean energy technologies. We just need to ensure that all Australian businesses are given an opportunity to be apart of this process". she said.

A spokesman for Climate Change Minister Greg Combet said it was premature to comment on this call as legislation and guidelines for the programs had not been finalised. Last night, Minister for Innovation, Industry, Science and Research Kim Carr said the government's position was to have Australian industry programs for project tenders worth more than $20 million and it was developing "specific guidelines for green technology programs". "There will be consultation on the guidelines in the coming months", Senator Carr said.

The ACTU has also criticised the $1.5bn solar flagships program for not including plans for local industry on the grounds that the program involved grants rather than tenders. Investors in the Moree solar farm, which is receiving money under this program, include Fotowatio Renewable Ventures and BP Solar both of which are based in Madrid and Australia's Pacific Hydro.

But last night, Vestas said it was opposed to local content requirements. "Such policies decrease competition, inhibit innovation, reduce economies of scale, and raise costs", said Vestas Australian Wind Technology director of policy and government relations, Ken McAlpine.

"We believe that governments would be able to attract more participation from wind power companies in their respective countries by shifting the focus from local content requirements to building local capabilities, a sound investment climate and competitiveness". Clean Energy Council director Kane Thornton said local content rules were not necessary and Australia was lagging behind China, Germany and Denmark in solar panels and wind turbines as a result of past industry policy.

Facts count

Canberra Times
16 August 2011, Page: 16

Debate over climate change policy is not helped by static from ignorant know-alls who publicly invent "facts" they have not checked. An example is John McKerral (Letters, August 13), who declares that the US Energy Information Administration has shown that power from solar thermal plants costs almost six times as much as coal-fired power.

He cites no reference for this claim, which can be disproved simply by reading the EIA's 2011 Annual Energy Outlook (www.eia.gov/aeo). The EIA estimates the capital cost of the cheapest and dirtiest coal-fired plants (without carbon capture or IGCC gasification technology) at $US2844 per kW, compared to $US4692/ kW for solar thermal plants: a gap of 65%.

But that is just the capital cost. Coal-fired plants run on coal, solar thermal plants on solar power. Coal costs $4.25 per MW/h, the EIA estimates, but the sun is free. Burning coal to produce power generates roughly a tonne of greenhouse gases per MW/h. Capturing solar power produces no emissions. I'm not advocating solar thermal plants. The EIA found the cheapest power sources were natural gas and wind. I am advocating truth in debate.

Tim Colebatch, Hackett


John McKerral and Brian Hatch frequently make claims in your letters columns that are simply wrong. Hatch claimed (Letters, August 11) that the world stopped warming in 1998. To the contrary, there is a very extensive interlocking chain of evidence for global warming, and its very serious potential consequences, from climatology, meteorology, oceanography, physics, chemistry, botany, zoology, ecology, palaeontology, glaciology and other fields of science.

McKerral previously claimed that deep CO₂ emission cuts will destroy our lifestyle, and that renewable energy can't contribute effectively (Letters, September 3, 2010). This time (Letters, August 12) he confuses energy ( kW/h) and power ( kW) in his claim that solar thermal costs 24¢ per kW. Large-scale solar costs 15-18¢ per kW/h in good locations, and that is declining rapidly. Solar is closing in on the price of electricity from coal, once a carbon price is factored in.

Deployment of photovoltaics in Australia has risen from 10 MW in 2007 to 360 MW in 2010. Far larger deployment of solar has taken place in Europe. Including a carbon price, the levelised cost of solar electricity from building roofs is now cheaper than retail tariffs in NSW, the Northern Territory, Queensland, South Australia and Western Australia (8% discount rate). Its likely that five billion people in temperate regions of the world will have solar parity with retail tariffs by 2015, and with wholesale prices a little later.

Professor Andrew Blakers, director, Centre for Sustainable Energy Systems, Australian National University

Consumers cut back as power price climbs

Age
15 August 2011, Page: 3

RISING electricity prices and a new awareness of ways to cut use have slashed consumer demand. Ausgrid energy efficiency specialist Paul Myors said: "We have seen consumption falling by around 2% a year for average household electricity use over the past four years. That goes against the long-term trend of a steady rise. "It could be the global financial crisis and rising tariffs is a factor. We are seeing the impact of energy efficiency", he said, pointing to the move away from electric hot water systems, previously the main user of electricity in the home.

The fall is expected to lead the national electricity market body, the Australian Electricity Market Operator, to forecast an overall decline of 5 to 6% in demand in the next decade the first drop in living memory. Prices rose as much as 13% on July 1 to fund $14.4 billion of spending on the electricity system but there has been criticism that NSW government owned companies such as Ausgrid and Endeavour Energy have been investing unnecessarily in their networks.

Household electricity prices are to rise by up to 17% more from mid-next year and up to 25% a year later. The proposed carbon tax will push household prices up further, although the federal government has promised to offset this for some households. Even with average household usage falling, demand is still rising at peak times in midsummer and midwinter, forcing upgrades to the power network.

The 5% cut in forecast demand is expected to push the need for new power stations back to 2020. No baseload power stations, which operate 24 hours a day, have been built in NSW since the 1980s, although gas-fired power stations have been built. The government is examining measures such as cutting the reliability of the network, which would leave households more exposed to blackouts.

Wednesday, 24 August 2011

Rural residents dig in over coal mine plan

The Saturday Age
13 August 2011, Page: 7

NOT long ago Bacchus Marsh was a country town notable for two things: its Avenue of Honour elm trees honouring World War I soldiers and the produce from its market gardens.

It is now at the heart of a population growth corridor between Melbourne and Ballarat, and home to a growing number of commuters. This week some landowners learnt they could have anew neighbour: an opencut coal mine. Mantle Mining, which has a brown coal exploration licence to the town's south-east, told the stock exchange a drilling plan had been approved and it expected to set up rigs this month.

The company had advertised its plans locally as required, but harness racing stable owner Kate Tubbs says many were unaware until a public meeting on Monday. "I don't think there was one person that was in favour of coal mining", she says from her property five kilometres from Bacchus Marsh. "I think the company came expecting acceptance, but we had more than 60 people there and they were worried. Some were angry".

The concerned include 81-year-old Bruce McDonald, whose family has farmed at Parwan all his life. Like Mrs Tubbs, he has been told the company wants to drill on his land. "I don't think I can stop them really", he says. "In my opinion it is just too close to Bacchus Marsh for a coal mine".

Conflict between farmers and resources companies in New South Wales and Queensland have centred on coal seam gas projects. Federal Opposition Leader Tony Abbott backed the farmers, saying: "If you don't want something to happen on your land, you ought to have a right to say no".

In Victoria, there has been a lesser focus on proposals for a brown coal export industry. Mantle Mining aims to develop an open-cut mine near the existing Maddingley Mine, where a small amount of coal is extracted to make fertiliser. It says new drying technology can reduce the greenhouse gas emissions from burning coal by 40%, opening up a lucrative export market to India. Its export plan hit a snag last month when it withdrew an application to explore for coal at Deans Marsh following strong local opposition.

Opponents say new coal mine proposals threaten farmland and are at odds with tackling climate change. Mantle responds that China and India will continue to use coal and helping them lower emissions makes sense. The Baillieu government supports the development of new brown coal industries, but only a fraction of exploration licences evolve into full mining licences.

Mantle Mining managing director Ian Kraemer told Parwan residents that most exploration would be on roadside sites, but the company had the right to drill on private land if the owner was compensated. He also indicated that, unlike at Deans Marsh, he planned to proceed with an application for a full mining licence despite local opposition if it proved economically viable.

Sun setting on Victoria's solar scheme

Summaries - Australian Financial Review
13 August 2011

With major consumer incentives set to expire, the Victorian government is coming under pressure to reveal how it will support the state's solar industry. The previous Labor government started a policy whereby small businesses and households that install solar panels gain a premium tariff from power companies for electricity they feed into the grid over and above power used in their premises. However, the premium rate covers only the first 100 MWs of capacity installed in the state. Energy Minister Michael O'Brien says the cap for installed capacity under the premium feed-in tariff is likely to be met in late 2011.

The Victorian Competition and Efficiency Commission report on tariff arrangements is expected in 2012. Solar Shop is Australia's biggest photo-voltaic solar panel provider and its chief executive Tony Thornton says the government needs to explain an interim policy plan urgently before the expiration of the cap as the solar industry was in trouble around the country. The view of Clean Energy Council policy director Russell Marsh is that a higher rate of 40 cents was probably needed, while Greens MP Greg Barker called on Mr O'Brien to release more information over the cost of the incentive package. Lily D'Ambrosio, the opposition energy spokeswoman, says the government has to end uncertainty in the industry.

Friday, 19 August 2011

Fund studies, not schemes, says Windsor

Sydney Morning Herald
15 August 2011, Page: 1

AUSTRALIA should concentrate its clean energy funding on research, the federal independent MP Tony Windsor says, rather than controversial schemes such as "pink batts or cash for clunkers". Mr Windsor, a member of the government's multi-party climate change committee, spent last week researching clean energy facilities and policy-making in Europe, including an inspection of Torresol Energy's 20 MW Gemasolar power station near Seville, Spain.

Gemasolar uses 2650 mirrors to concentrate the sun's rays on to the top of a central "power tower" and heat salt to more than 500°. The molten salts store heat that is slowly released to power a steam turbine, generating enough electricity for 25,000 households. Last month, Gemasolar became the first solar thermal power station to supply electricity into the grid for 24 hours including throughout the night a key test for solar power's ability to provide baseload power.

Mr Windsor visited the facility with Ross Garnaut, a climate change adviser, and Matthew Wright, head of Beyond Zero Emissions, a think-tank which proposed last year the extensive use of baseload solar power in its stationary energy plan to re-power Australia with 100% renewable energy. Mr Windsor said the Gemasolar plant was "an incredible sight". "I was in the vehicle with the project manager, Santiago [Arias], and when we drove in, we drove down this track between the reflectors.

The tower was some hundred yards away as we started this drive and I made the point, 'we're driving into our future here', and we really are! "I have no doubt that this sort of stuff is where we should be going". Mr Windsor's tour took in a full range of renewable and low emissions technologies that could receive funding from the multi-party climate committee's proposed clean energy finance corporation, which will provide $10 billion of debt and equity finance, and loan guarantees.

Irrespective of the type of clean energy technology to be funded, Mr Windsor said, "If there's one thing I've learnt out of this trip, [it is] if you've got a bucket of money, put it into research,.. rather than pink batts or cash for clunkers". He said Australia should work with countries such as Spain where there is "real research and refinement going on", not in the laboratory but "in the field". "Get out there and learn. You can see how they've piggybacked off their past endeavours".

Blue sky idea is now a reality

Adelaide Advertiser
13 August 2011, Page: 79

ELECTRIC-CAR makers and solar manufacturers have long known they share the same potential customers: highly educated and affluent people who are fascinated by technology and care about the environment and energy independence. SunPower Corp., Silicon Valley's largest solar manufacturer, and Ford Motor Co, on Wednesday announced a partnership that is a first for the auto and solar industries. Buyers of a Ford Focus Electric, which will hit the California market later this year, will be offered a deeply discounted rooftop solar system from SunPower.

The "Drive Green for Life" program is designed to provide the cars' owners the opportunity to fuel their vehicles with clean energy as well as having a carbon-free driving experience. SunPower will offer a 2.5kW rooftop system, which should provide enough electricity to fuel an electric car that travels about 1600km a month, for less than $10,000, after the federal tax credit.

Wind power flagged for city sites

Hobart Mercury
15 August 2011 Page: 3

WIND turbines could be installed on buildings across Tasmania, making the state a national leader in wind power, an expert says. wind turbine and sustainable energy specialist Brian Kirke said Tasmania had no shortage of wind and plenty of buildings suitable for housing turbines. Turbines in cities such as Hobart, Launceston and Burnie would improve the energy rating of buildings and could make Tasmania lead the nation.

Mr Kirke's comments come as four wind turbines atop the Marine Board building in Hobart were replaced yesterday. Two of the turbines were damaged in a $100,000 mishap in August last year, just weeks after they were installed. The human error sparked fears that the turbines were unsafe. As a result, all four turbines had been switched off for the past 12 months. All four were removed yesterday and replaced with new turbines and are expected to be switched on within weeks.

Workmen arrived at 6am yesterday to set up a crane and closed a section of Morrison St Teams of workers removed the 500kg vertical-axis turbines and lifted them down one by one before raising the new turbines and securing them in place. The work was completed by the afternoon. Project director Keith Drew, who manages the turbines for building owner Robert Rockefeller, said last year's mishap was unfortunate but he was confident it would not happen again.

He said the replacement turbines were the same size and design as the original ones but came with some modifications, including a stronger main shaft and a better braking system. The equipment and control systems will be wired up and tested in coming days. "We won't have an incident like last year, we know that for sure", Mr Drew said. "We've done everything possible to make them as safe as possible". Mr Drew said the turbines had a 12-to 15-year lifespan and could produce 120.000kW hours of power each year, 10-15% of the building's energy use.

Mr Kirke, from South Australia, was called in to oversee the installation process. He said the type of turbines on the Marine Board building was quite new to Australia but was being used effectively overseas. Mr Kirke would like to see turbines elsewhere in Tasmania and on more Hobart buildings, nominating the Hydro building as a perfect spot. He said Tasmania's southerly position meant wind was plentiful: "You're definitely in the right part of the world for wind".

Thursday, 18 August 2011

Consumers cut back as power price climbs

Age
15 August 2011, Page: 3

RISING electricity prices and a new awareness of ways to cut use have slashed consumer demand. Ausgrid energy efficiency specialist Paul Myors said: "We have seen consumption falling by around 2% a year for average household electricity use over the past four years. That goes against the long-term trend of a steady rise. "It could be the global financial crisis and rising tariffs is a factor. We are seeing the impact of energy efficiency", he said, pointing to the move away from electric hot water systems, previously the main user of electricity in the home.

The fall is expected to lead the national electricity market body, the Australian Electricity Market Operator, to forecast an overall decline of 5 to 6% in demand in the next decade the first drop in living memory. Prices rose as much as 13% on July 1 to fund $14.4 billion of spending on the electricity system but there has been criticism that NSW government owned companies such as Ausgrid and Endeavour Energy have been investing unnecessarily in their networks.

Household electricity prices are to rise by up to 17% more from mid-next year and up to 25% a year later. The proposed carbon tax will push household prices up further, although the federal government has promised to offset this for some households. Even with average household usage falling, demand is still rising at peak times in midsummer and midwinter, forcing upgrades to the power network.

The 5% cut in forecast demand is expected to push the need for new power stations back to 2020. No baseload power stations, which operate 24 hours a day, have been built in NSW since the 1980s, although gas-fired power stations have been built. The government is examining measures such as cutting the reliability of the network, which would leave households more exposed to blackouts.

ANU research to target solar hot spot

Canberra Times
9 August 2011, Page: 4

A groundbreaking solar research program that has the potential to create millions of zero-emission homes and businesses was unveiled at the Australian National University yesterday. The $9.5 million, three-year project aims to develop and commercialise a rooftop hybrid solar system that offers heating, cooling and electricity.

Resources and Energy Minister Martin Ferguson said the project, which converts the sun's energy into thermal and electrical energy, will make the solar industry more competitive by offering cost-effective electricity and solar hot water under one system.

"It will maximise the potential of rooftop areas when it comes to meeting the energy demands of the modern home", he said. "Using energy directly where it is generated in this way is not only highly efficient but has the potential to be highly cost effective too". Mr Ferguson said Australia did not have a competitive advantage in manufacturing photovoltaics and should focus on innovation and research.

"The opportunities for Australia in the rapidly growing global solar power market lie in innovation, research and development in licensing and exporting our technologies". Lead investigator Andrew Blakers, from the ANU College of Engineering and Computer Science, said companies had already expressed interest in manufacturing the rooftop system.

The system will create steam by heating water to 150°. "You can raise industrial steam and drive an air conditioner in a far more effective way", he said. "Importantly, this energy is delivered to [the] retail side of the energy meter where energy costs are three times what the wholesale costs are for both gas and electricity".

The all-in-one system focuses an intense beam of sunlight on to a concentrating collector. The project is being supported by a $3.2 million grant from the Federal Government. ANU will partner with the University of New South Wales, CSIRO, Chromasun and NEP solar.

Court invokes coals to Newcastle rule

Age
11 August 2011, Page: 5

A VISTA of gas rigs dotted along the coast from Sydney to Newcastle was never going to be a winner with New South Wales coastal councils. And in a rebuff to energy explorers keen to push new techniques and test mining legislation it has not been a winner with government. Federal Resources and Energy Minister Martin Ferguson and his former Labor state counterpart, Steve Whan, have refused to grant offshore exploration licences to underground coal gasification proponent Energie Future.

The ministerial rejection came to light in documents before the Federal Court, where Energie Future is seeking judicial review of the decision by the ministers, who were acting as the joint authority under the Offshore Minerals Act. In 2008, Energie Future applied for four lease exploration areas, covering 6000 km². The boundary comes as close as five kilometres to the coast.

NSW refused the application last October and in November Mr Ferguson agreed. One of the grounds cited by the joint authority was concern about the effect on flora and fauna on the ocean floor and the "fragile beach environments". As recently as June, Gosford, Wyong, Lake Macquarie, Newcastle and Port Stephens councils wrote to the state government, opposing offshore mining in the permit area. They asked what contingency plans the companies had to deal with an oil spill or gas leak, and also queried the effect on the annual whale migrations.

Underground coal gasification (UCG) is a new technology in which coal is burnt and converted to a synthesised (or non-natural) gas underground. The method is used to access coal resources that are either uneconomic or inaccessible to work by conventional means. It is a different process to coal seam gas (CSG) extraction, which is experiencing strong community and some political opposition. It involves drawing water from the coal seam gass to release primarily naturally occurring methane gas.

The joint authority concluded: "The work program was inadequate, the application area is in conflict with [the existing] petroleum exploration permit 11, and the understanding that synthetic manufacture of syngas using underground coal gasification methods is not encompassed by the Offshore Minerals Act nor the Offshore Petroleum and Greenhouse Gas Storage Act 2006".

Its key point of refusal was that the "in situ production of a synthetic gas was not classified as a naturally occurring substance", and the extraction method proposed was not covered under the legislation. "It would be irresponsible to grant an exploration licence that would be unable to proceed to a mining licence under the legislative framework", it said. Energie Future has argued the joint authority made an error in law, and also denied the company natural justice. It says it is not a precondition to the granting of a mining licence that the licence holder recover a "mineral". It also says the authority did not consider its proposed alternative method of mining coal through boreholes.

Wednesday, 17 August 2011

EU finds its power blowing in the wind

Canberra Times
6 August 2011, Page: 19

Energy producers expect European wind power generation to triple by 2020, with tens of thousands of new, ever-bigger wind turbines springing up, an industry body says. The European Wind Energy Association, which groups energy giants with wind interests and also many involved in nuclear or gasfired electricity generation, issued its figures this week in a new report aiming to influence EU energy policy after 2020.

By the end of last year, the Pure Power report said, wind power produced about 5.3% of demand across the EU's 27 states, some 182 terawatt hours. Its share is tipped to reach 15.7% by 2020, or 581 TWh. By the end of 2010, there were more than 70,000 turbines in operation, and the wind power association says 60,000 more of the same size will be needed to meet 2020 targets, although installing bigger machines could reduce that number to half or less depending on technology developments.

Investment is tipped to rise from 12.7 billion euros ($A16.59 billion) of annual investment in 2010 to $A35.9 billion in 2020, 40% of that investment going into offshore wind farms. Justin Wilkes, of the association, said companies would invest $A262 billion in onshore and, increasingly, offshore wind farms by then, "mainly driven by a strong EU regulatory framework to 2020, which we need also after 2020".

His grouping wants binding European Union targets for renewable energy production, part of a wider climate-action commitment, to be extended from the present 19% to 34% for the decade after 2020. EU states have been increasingly reluctant since the deep recession of the recent years to set binding European-level targets affecting domestic investment needs.

Germany and Spain alone account for well over half of all EU wind power, but Britain, France, Italy and Portugal are also emerging alongside small, but market-leading Denmark, despite strong French Government adherence to its giant nuclear industry, which delivers 80% of France's electricity needs. Scotland, whose independence seeking Government in Edinburgh is already committed to producing 100% of its energy needs from renewables, alone claims one quarter of the EU's coastline.

Germany has turned its back on nuclear after an earthquake and tsunami caused an accident at a nuclear plant in Japan in March, and the wind power association says the German Government could fill the 20-% gap in its generating capacity with wind within a decade.

The report can be accessed online at www.ewea.org.

Boom in rooftop solar panels 'extraordinary'

Sydney Morning Herald
8 August 2011, Page: 3

THE solar bonus scheme introduced last year was very successful in some suburbs, with more than 14% of homes installing rooftop solar panels, compared with a statewide average of about 3%. Figures provided to the Herald by three electricity distributors revealed the north coast had the highest number of solar schemes. In Dubbo, more than 2000 homes had also installed photovoltaic units.

Paul Myors, an energy efficiency specialist with Ausgrid, said the number of homes with solar panels had increased from 2000 18 months ago to 46,000, after the former NSW Labor government introduced the solar bonus rebate scheme that was scrapped in May by the new government.

Peak take-up rates are around the central coast and Lake Macquarie, where about 6% of homes in many suburbs have rooftop systems. Customers of Essential Energy, which supplies power to many country areas, installed more than 2200 systems in the post code covering Lismore and surrounding towns.

Data from the last census in 2006 said there were 18,500 dwellings in the Lismore postcode, which gives a rooftop solar system rate of more than 12%. In the Tweed Heads postcode, the rate is more than 14%, while Dubbo has a rate exceeding 13%, rates that Mr Myors described as "extraordinary".

Some of the high installation rates in certain towns are believed to be a result of intensive marketing campaigns conducted by solar panel companies. Mr Myors said the high percentage of detached homes with good solar access in some rural and regional areas was another factor behind the wide variations in take-up rates.

The chief executive of Strata Community Australia, Mark Lever, said more than 70% of residents in many Sydney local government areas live in apartments, as do more than 50% in North Sydney. He said while many of them wanted to install solar panels, the federal and state governments had not considered their needs while designing rebate schemes, leaving regulatory hurdles to be cleared.

"Body corporates are not eligible for federal Renewable Energy Certificates, and then they have to deal with the fact the Tax Office regards any income to the body corporate from solar schemes as mutual income that is taxable in the hands of individual owners", Mr Lever said. Ausgrid has started publishing details of solar panel installations and other data on its website to allow councils, consumers and other interested parties to compare trends in electricity consumption.

Mr Myors said the data showed that while electricity usage increased every year from the 1950s, it plateaued four years ago and had been declining by about 2% a year since then due to increased energy prices, improved energy efficiency in houses thanks in part to the home insulation scheme and more efficient appliances. However, peak demand was still increasing, especially on hot days. In 10 years, the percentage of houses with air-conditioning in NSW had increased from 30% to 70%, placing additional pressure on the system, he said.

Blackstone punts on wind farms

Canberra Times
8 August 2011, Page: 13

The US investment fund Blackstone Group plans to invest several billion euros in German wind farms, as the biggest economy in Europe will need the energy when it abandons nuclear power by 2022. Blackstone Group said that it had finalised 1.2 billion euros ($A1.63 billion) in financing to build what it says will be the biggest German offshore facility to date.

The fund said that it had also obtained permission for its wind company unit to develop a second site, putting its cost at $1.77 billion. The first farm, to consist of 80 turbines built by the German group Siemens, is to become operational in 2013 with a generating capacity of 288 MWs. Requiring around 100,000t of steel in its construction phase, the park should provide electricity for 400,000 homes and reduce carbon dioxide emissions by one million tonnes, a Siemens statement said. The turbines will be huge, with rotors that measure 120m in diameter, and are to stand in water more than 20m deep.

Siemens presents itself as the world's leading manufacturer of offshore wind turbines. Financing for the second project, designed for 63 turbines, should be finalised in 2013 and it is to be completed by 2016. Blackstone Group senior managing director David Foley welcomed "the progress and positive impact on the economy that can be achieved when private capital works in partnership with government, entrepreneurs and industry". Energy producers expect European wind power generation to triple by 2020, with tens of thousands of new wind turbines,the European Wind Energy Association said last week.

Monday, 15 August 2011

Cracks appearing in Japan's nuclear power lobby

West Australian
5 August 2011, Page: 40

Japanese executives aren't known for bucking the establishment. Hiroshi Mikitani is a rare exception at a time when rebellion is most needed. The president of Rakuten, Japan's biggest online retailer, turned 46 on March 11. That was the day when a record earthquake and tsunami set off the worst nuclear crisis since Chernobyl and forever changed the way Japanese view the reactors in their midst. Almost five months later, the Fukushima plant is still leaking radioactivity

A growing majority of the nation's 127 million people want a future devoid of radiation, contaminated air and food, and who can blame them? Forget it, says corporate Japan, the economy will collapse if we give up on nuclear power. Count Mikitani among those who disagree. He recently quit Japan's main business lobby, Nippon Keidanren, to protest its support of the energy status quo. Good for him. Japan needs to harness power from safer sources, but the Government lacks the courage to seek them. So, the private sector is filling the void.

Most notable is billionaire Masayoshi Son, the 53-year-old chief executive officer of Softbank. He first cracked the monopolies that dominated Japan's telecommunications industry Now he's shaking up the utilities market with plans to invest about $US1 billion ($937 million) to build 10 solar farms. Granted, Prime Minister Naoto Kan would like to take on the alliance of politicians, bureaucrats and power companies promoting the nuclear industry. He has even proposed a halt to plans for 14 new reactors. Yet he is a short-timer; he pledged to step down once emergency-funding Bills are passed.

It is naive to think the forces arrayed against Kan aren't playing a role in his demise. More than any leader, Kan has taken on the nuclear-industrial complex, Japan's answer to the nexus of business and the military in the US. Expect the knives to be out for any leader with reformist sensibilities.

The industry's allies are rallying to maintain the supremacy of nuclear power. A huge scare campaign is under way to convince voters that living standards will shrivel if Japan de-emphasises atomic energy Before the Fukushima disaster, the industry provided about 30% of Japan's electricity The plan was for that to rise to 53% by 2030.

The earthquake changed all that. nuclear power makes perfect sense on paper. It emits little pollution or greenhouse gases and doesn't rely on dirty and expensive imported fossil fuel. Yet something that didn't change between Ukraine in 1986 and Japan in 2011 is the risk of design flaws, shoddy construction and poor training of reactor personnel the human factor.

Fukushima's back-up generators that might have averted the disaster were located in a basement and swamped by the waves. The monumental foolishness of that is summed up by Ken Brockman, a former director of nuclear installation safety at the International Atomic Energy Agency in Vienna: "This in the country that invented the word tsunami".

The bigger irony is how the only nation ever to be attacked by nuclear weapons and the one with the most seismic activity so enthusiastically embraced a nuclear future. If the last five months taught us anything, it's the need to reconsider. No one is saying turn off all the reactors; the $US5 trillion economy has enough problems. Yet Japan needs an explosion of fresh ideas, innovation and investment to become less reliant on reactors. This should be a priority for any leader who succeeds Kan.

A recurring question in Tokyo has been: Who put Homer Simpson in charge? Japan's nuclear safety record these past 15 years seems no sounder than that of the fictional Springfield Nuclear Power Plant, where on The Simpsons, Homer is head of safety. Only, this is no laughing matter.

Alternative energy is an obvious chance for Japan to lead the world. Deflation and excessive debt cost Japan its economic vitality, especially as China thundered ahead to become the world's second-biggest economy. Credit Suisse Group, Switzerland's second-largest bank, recently stopped bothering to cover Japanese banks.

For all its economic sclerosis, Japan is a role model when it comes to energy efficiency. This can be seen in Tokyo's ability to avoid blackouts without Fukushima's reactors providing power to the city. Japan should act last to assert itself as the dominant power in clean energy, solar technology and storage batteries. It would create jobs, wealth and international prestige. Sadly, Tokyo's political class is preoccupied with internal, short-sighted squabbles. The good news is that the private sector is pushing ahead on its own.

The efforts by Softbank's Mr Son are even more important. His SUSI billion pledge is contingent upon getting access to transmission networks and regional utilities buying his electricity, As of July 27, a total of 17 big Japanese cities jumped on the alternative-to-nuclear bandwagon, the Asahi newspaper reported. It's a good start toward getting Homer Simpson's hands off the controls and a rare sign of hope in a nation that hasn't had a lot to cheer about.

Power generation in Latrobe 'to rise'

Age
5 August 2011, Page: 4

THE Latrobe Valley power generation industry will continue to grow for decades to come under a carbon price, according to economic modelling released by federal Treasury. Analyses released yesterday also suggest Australia will not meet its bipartisan target of 20% of electricity coming from renewable sources by 2020 without a carbon price or significant changes to existing renewable energy legislation.

In a challenge to claims that the Latrobe Valley would be devastated by forcing coal power plants to pay for their emissions, modelling by ROAM Consulting found the amount of power generated in the area would double under even a high carbon price by 2050.

Brown coal power generation is expected to continue to be the main source of power from the valley until at least 2030. It will gradually be replaced by baseload gas-fired power, which has about a third of the emissions of brown coal. The ROAM report says "that the Latrobe Valley remains a generation hub for all scenarios although under a carbon price there is incentive for increased diversification into gas, renewable and [carbon capture and storage] technologies".

The finding by ROAM is backed by a second consultancy, Sinclair Knight Merz, which found there was likely to be massive expansion of gas and renewable energy generation across Gippsland. The Sinclair report attributes the region's generation growth to its proximity to natural gas reserves, and strong wind, biomass and geothermal sources: "The exploitation of these resources under carbon pricing means that the overall level of electricity generation may not fall".

Other findings of five reports released by Treasury yesterday include:

  • It would be cheaper under existing law for electricity companies to pay a penalty than meet the 20% renewable target by building new wind farms.
  • $212 billion in new generation technology investment will be needed by the mid-century under a carbon price, almost double the investment needed without one.
  • Retail electricity prices are estimated to increase between 7% and 48% depending on the size of emissions cuts in the period to 2020.
  • The Department of Climate Change and Energy Efficiency found the government's carbon farming scheme which aims to reduce CO₂ from the land and livestock was likely to cut emissions by just 7 million tonnes of CO₂ a year by 2020.

Australia needs to cut emissions by about 160 million tonnes. The reports were commissioned as part of Treasury's modelling on the economic impacts of a carbon price. The Latrobe Valley findings are based on a starting carbon price of just under $20 a tonne and moderate global action to reduce emissions. The government carbon tax will start at $23 a tonne.

The modelling does not include the government's plans to pay to close two brown coal power plants, most likely Hazelwood in Victoria and Playford in South Australia.

WA solar must be given new life

www.cleanenergycouncil.org.au
1 August 2011

The WA solar industry has been dealt an unexpected blow by the Barnett Government with the sudden closure of their feed-in-tariff, announced today. "The Clean Energy Council is disappointed by this decision. West Australians have clearly demonstrated their enthusiasm for solar as a way to minimise the impact of future electricity price rises and reduce greenhouse gas emissions," Chief Executive Matthew Warren said.

"We are disappointed that this announcement has been made without any consultation with the solar industry and with no consideration of the future support for this popular technology." Mr Warren said changes to the Commonwealth's solar incentives, as well as the State's decision to reduce their feed-in-tariff - which both took effect on July 1 – had contributed to a spike in applications.

"The temporary rush by consumers to get access to the best incentives unfortunately appears to have been used as an excuse to shut down an industry which was on track to stabilise under the lower incentives, as was the experience in other states," he said.

Mr Warren said without an alternative scheme in place, jobs would be lost. "The solar industry continues to seek policy certainty so that it is not at the mercy of knee-jerk reactions," Mr Warren said.

"West Australians have invested in the solar industry – both as consumers and in terms of new training, skills and jobs. The WA Government should not be turning back on this emerging industry." "We are calling on the WA Government to consider redesigning the scheme to ensure long-term sustainability of the industry and would welcome the opportunity to work with them on such a process."

Thursday, 11 August 2011

Second wind for city's four new turbines

Hobart Mercury
4 August 2011, Page: 9

FOUR replacement wind turbines may be fastened on to the roof of Hobart's Marine Board building in less than two weeks. The Chinese-built turbines will look similar to those that failed spectacularly in August last year, about a month after they were installed. But project manager Keith Drew, acting for the building's owner Robert Rockefeller, said the turbines' braking systems had been extensively redesigned.

Mr Drew said the electro-mechanical brakes would allow the turbines to turn only when wind conditions were right. "By default the brakes will now be on unless all safety systems are operating properly", he said. Installation contractor I Want Energy yesterday began preparatory roof work. The pedestrian footpath on the eastern side of Mawson Place will be closed next week as the all-new vertical-axis turbines are assembled.

Weather permitting, the turbines will be lifted on to the building on August 14, but Mr Drew said it was not clear how long it would take before they were fully operational. "This new system of check and triple check, along with the redesigned control systems of the wind turbines, means the installation is now as safe as we can possibly make it, but we will only fully recommission the turbines once we are confident they operate as they are supposed to", he said.

Hobart City Council aldermen Ron Christie, Peter Sexton and Marti Zucco said they weren't convinced the new turbines would be safe. They said similar assurances had been given for the previous failed set of turbines. On August 11 last year nearby roads were closed when those turbines spun out of control in 50kmh winds, causing blades to collapse inwards after the brakes failed.

"There could have been a fatality", Aid Sexton said. "How it was that Workplace Standards Tasmania approved it in the first place, that's a very big and important question". He said turbines should not be allowed in cities until there was a certified Australian standard for their installation.

Nothing fair or smart about solar bungling

West Australian
3 August 2011, Page: 20

The only thing saving the Barnett Government from a "pink batts" backlash over its comprehensive bungling of the rooftop solar panels scheme is scale. Luckily, the industry the Government poleaxed this week is smaller than that represented by the home insulation contractors the Rudd government ruined and there are fewer householders directly harmed.

But measuring your disasters against those of the past two Federal Labor governments can hardly be recommended as political best practice. The Liberal Party went to the last State election promising voters they would get a payment of 60¢ for every kW of electricity their rooftop panels fed into the power grid. It was the sort of political greenwash that has now become commonplace in Australian politics, playing on the good nature of those who want to "save the planet".

The essential difference was that this promise made commercial sense to those who liked the idea. It wasn't just green. It offered many people a real opportunity to cut their power bills. But the 60¢ tariff was such a fundamental misreading of the economics of our renewable energy future that it calls into question the Government's ability to deal with the new realities that the carbon tax will foist on the nation next year.

The renewable energy sector confirmed this week that the Australian Photo Voltaic Association told the WA Government in 2007 that a fair feed-in price was between 130-160. Why was that advice ignored? Who came up with the 60¢ tariff and why? When the promise finally made its way into the 2009 Budget, the Government set aside $13.5 million over four years.

By the time Energy Minister Peter Collier axed the program hastily on Monday morning, after this newspaper exposed its imminent demise "within weeks", its cost had blown out to $127 million. That is a massive bungle. And it was despite the fact that the Government had already dudded punters on its original tariff promise by reducing the starting price to 40¢ and then further cutting to 20¢ to try to contain its growth within the 150 MW quota.

Those people not frightened off by the Government's meddling who still want to go ahead with rooftop solar panels will now be offered a 7¢ return by wind.com/" target="_blank">Synergy Energy or Horizon. That tariff is laughably based on the cost of coal-fired power to the energy retailers and means that new entrants selling their solar electricity into the grid are effectively subsidising the State Government.

Why would anyone pay thousands of dollars for a solar system that feeds cheap electricity into the grid for negligible return while they are at work only to have to pay peak power rates for fossil fuelled energy when they come home in the evening and turn on their air-conditioning? Members of the WA solar panel industry met last week, fearing the 150 MW cap would be reached soon, not knowing whether the Government intended to extend the scheme on the basis of its unrivalled success.

"The Government has failed to consult with the industry on the ensuing changes, and this has made it very difficult for any business to plan effectively" Ray Wills, chief executive of the Sustainable Energy Association, said after Monday's brutal decision. "The renewable energy industry continues to be plagued by government decisions that lead to boom-bust cycles and fail to provide the conditions needed to grow the industry sustainably.

"While the SEA expects solar PV is likely to hit retail grid parity potentially by 2014-15, this interim period without some form of price support is likely to significantly erode the value and capability of the industry. The industry does not seek subsidies, just a fair price to be paid for consumers' exported electricity The provision of a fair price will create greater certainty and restore the confidence of solar installers to invest in growing their businesses, and consumers the confidence to buy". The raw politics of this decision are poisonous for the Barnett Government in the current economic climate.

Not only has it axed a program for being too popular a political non sequitur but it is seen to be stopping people from limiting their exposure to ever-increasing power price rises. Economic rationalists will rightly argue that home solar panels do not stack up in any direct comparison with commercial power generators.

The Productivity Commission found that a medium solar outfit produced power for around $400-$473/ MW compared with coal-fired electricity at $78-$91, combined-cycle gas turbines at $97 and wind turbines from $150-$214. But that doesn't take into account that private individuals are bearing the capital cost of the system and it frees up capacity in the existing low-cost State-owned generating system.

A well-priced feed-in tariff within a well-managed program with a realistic and expandable cap would have ensured a steady flow of privately sourced solar power at a lower cost than the Government could arrange through its own means to meet its renewable energy commitments. It is unlikely that the State will be able to extricate itself from ownership of its energy business any time soon. So its needs to get a lot smarter about how it handles the shift to renewables.

Solar solution missed

Herald Sun
3 August 2011, Page: 29

FLYING into Melbourne recently I was struck by the number of warehouse buildings with possibly thousands of hectares of north-facing roofs. Today I read that New York City is preparing a hyper accurate map to assess the building-by-building potential for solar panel installation.

So here's an idea: Could an entrepreneur, a solar power company and an electricity generator or retailer join forces to install large-scale solar power systems on warehouse roofs? Rental in the form of free or reduced-cost electricity could be paid to the warehouse owner, with excess energy being sold back into the grid. Has anyone done the numbers?

Tuesday, 9 August 2011

Barnett axed solar power scheme to kill off a rush

West Australian
2 August 2011, Page: 12

The State Government was forced to shut its popular solar panel subsidy scheme yesterday to prevent a "run" on it from householders who feared they might miss out, Premier Colin Barnett said. A day after saying the feed-in-tariff scheme, which pays households for electricity from rooftop solar panels fed into the energy grid, was "being monitored", Energy Minister Peter Collier suspended it. The West Australian reported yesterday that the scheme would soon hit the Government's 150 MW capacity cap, imposed to prevent the cost getting out of control.

The industry believed the cap would be hit within weeks but Mr Collier, after discussing the issue with Mr Barnett yesterday, suspended it immediately. "The decision had to be made", Mr Barnett said. "It was on the front page of The West Australian. "Once that appeared we had to act, otherwise there would have been a run on the scheme".

The scheme has been slashed twice before and the industry and Opposition said ending it would cost hundreds of jobs. Mr Barnett conceded the Government could not say how much capacity had been approved for the scheme before yesterday, but he believed it had just about reached the cap.

Despite being forced to cancel new applications just 11 months after the scheme began, Mr Collier continued to insist it had been "phenomenally successful". Shadow energy minister Kate Doust said the decision made no sense and the Government had no credibility on the environment. "It's going to put further pressure on families who wanted to cut back on their power bills", she said.

Sustainable Energy Association chief Ray Wills said the scheme was axed without warning and would likely have significant short-term negative effects on the solar installation industry, He said the Government failed to consult the industry and this made it difficult to plan. Professor Wills said the renewable energy industry was plagued by government decisions that caused boom and bust cycles that did not let it grow sustainably.

NZ trading scheme slashes carbon emissions

Age
Tuesday 2/8/2011 Page: 5

NEW Zealand's emissions trading scheme has helped boost investment in renewable energy and cut greenhouse gas emissions, according to a review by the country's conservative government. It also appears to have won over a sceptical business community, with 63% of companies saying in submissions to a government panel they backed the climate scheme. Two years ago 78% were opposed.

Speaking in Wellington, New Zealand Climate Change Minister Nick Smith said there had been a "marked and positive shift" in business attitudes to the scheme. "This reflects the value of certainty the fact that critics overstated the costs of the scheme and the careful approach the government has taken to the transitional arrangements", he said.

While support for the scheme has grown, Dr Smith said it should be noted that 60% of businesses still argued the scheme should be slowed down. Only 15% wanted it sped up. He said the New Zealand National Party government hoped there would be a trans-Tasman carbon market with Australia after 2015. "The debate in New Zealand and in Australia on putting a price on carbon has been pretty ferocious, but it is a vital first step to the change we need to make as a society towards a low-carbon economy", Dr Smith said.

The first annual report into the NZ scheme which was largely based on former prime minister Kevin Rudd's abandoned emissions trading system found it had "performed to expectations". Nearly 80% of energy generation last year came from renewable sources a 12-year high that reflected both the impact of the carbon price and increased rainfall allowing greater use of hydropower power. Twelve new renewable energy plants were approved in 2010 five times the annual average across the past decade.

In forestry, incentives to maintain existing forests and invest in new plantations turned a net loss of about 18,000 hectares of trees in 2007 turned to an expected net increase of 5700 hectares this year. Dr Smith said national emissions had fallen for two consecutive years for the first time since 1990. The scheme included forestry from January 2008. Energy plants, large industry and transport were covered from July 2010, but initially pay a discounted carbon price of about $10 a tonne of gas emitted less than half the proposed Australian starting price of $23 a tonne.

Reactor must go - PM for clean power

Sunday Mail Brisbane
31 July 2011, Page: 42

JAPAN'S Prime Minister, Naoto Kan, has pledged a "revolutionary" shift away from atomic power and towards renewable energy in the wake of the Fukushima nuclear disaster. His cabinet also agreed on a plan to rebuild after the quake and tsunami disaster of March 11, saying reconstruction would cost Y19 trillion ($222 billion) over five years. The embattled premier has been fighting calls to resign amid rock-bottom poll ratings.

He was speaking as more than 180,000 people in Niigata region and Fukushima were moved to evacuation centres after rains triggered floods that left five missing. "We have made a significant decision on energy policy, including nuclear power", Mr Kan said. "As a medium-term revolutionary energy and environmental strategy, we have decided to start a thorough review of nuclear power policy and draw a roadmap for a reduction of the dependence on nuclear power. "The Japanese government will aim for a society that does not depend on nuclear power".

Mr Kan, a one-time environmental activist, has pledged to boost alternative energy sources to 20% of the nation's energy mix by the 2020s. They currently make up about 9%. Medium-term goals until 2020 should include decentralised energy systems, with reduced nuclear use, he said.

Friday, 5 August 2011

Civic wind power plan widens focus

Hobart Mercury
29 July 2011, Page: 5

SOUTHERN Tasmanian councils are considering a $22 million proposal to generate their own wind power. The plan, put forward by Hobart City Council alderman Bill Harvey, suggests councils could cancel out their power bills by investing in wind turbines.

Aid Harvey said the Federal Government's $10 billion Clean Energy Finance Corporation, coupled with Tasmania's Action Plan to Reduce Emissions, could provide the extra boost needed to get the idea across the line. He said Hobart aldermen were supportive, provided a wind farm stacked up financially and met high community standards.

The HCC last week posted letters to other southern Tasmanian councils asking if they wanted to participate. The councils are considering a report that proposes seven 2 MW turbines worth about $22 million or, if the HCC goes it alone, four turbines. Aid Harvey said the turbines could be scattered across several locations in the state. "The return to councils is looking quite positive", he said.

Aid Harvey, who first raised the idea last year, said by killing its own $3 million-a-year power bill, the HCC could add value for ratepayers or even provide rate relief. He said the HCC would make a decision whether to engage a consultant and to move the project to the next stage, with or without other councils, in the next few weeks. He said it was time for councils to get serious and stop messing around with token efforts such as tiny roof-top turbines or solar panels. "This would be pioneering. No other Australian council has yet to generate a significant amount of energy", he said.

Aid Harvey said individuals and businesses could also be invited to invest in wind turbines as shareholders alongside councils, following the example of a successful community co-operative wind farm near the Victorian towns of Daylesford and Hepburn Springs. The co-operative, supported by the Victorian Government, has built a wind farm that produces enough energy for 2300 households almost enough for all of the houses in the two districts.

Fracking push on hold after twin earthquakes

Australian
29 July 2011, Page: 22

MARK Miller was hoping to lead an energy revolution in Britain. Then earthquakes intervened. Mr Miller, an oil industry veteran from Pennsylvania, is one of a small band of pioneers seeking to replicate North America's shale gas boom in Europe. His company, Cuadrilla Resources, has imported a technology used to great effect in the US to try to turn Blackpool, a seaside resort on the west coast of England, into a new Klondike for gas.

The technology, called hydraulic fracturing, or 'Tracking", is controversial. It involves injecting huge volumes of water, sand and chemicals deep into porous shale rock, creating fissures or fractures that allow the gas trapped inside the rock to flow out. Critics worry that fracking can contaminate groundwater and even cause gas to leak from nearby household taps.

After months of cajoling, Mr Miller, a 57-year-old petroleum engineer, thought he had managed to persuade the locals that fracking was safe. Then, this northern spring, the area around Blackpool was shaken by two tremors. After the second, Cuadrilla Resources suspended its fracking operations, pending an investigation. Some researchers have delved into possible connections between fracking and earthquakes. But Cuadrilla Resources says no such connection has been proved, and Mr Miller says he is sceptical there is any link.

Even so, one of the most closely watched energy projects in Europe is now on hold, and the publicity has dealt a blow to the image of shale gas, already under attack from environmentalists on both sides of the Atlantic. The quakes left residents in the Blackpool area "angry and distressed", said Philip Mitchell, chairman of the local Green Party. "They have told me they feel like guinea pigs".

Some were more sanguine. "If they find gas then I don't think there's anything wrong with what they're doing", said one elderly man who lives in the village of Singleton, a stone's throw from the Cuadrilla Resources site. "I worked for years in the nuclear industry, so I'm not bothered by these things".

Fracking could bring a measure of energy independence to Europe by reducing its increased reliance on gas imported from countries such as Russia, which in the past has turned off the spigot over pricing disputes. But Cuadrilla Resources's tribulations show the challenges of developing shale gas deposits in Europe, where conventional gas reserves have declined. Europe is also more densely populated than the US, meaning a greater number of people would be likely to live near fracking sites.

Mr Miller likes to compare the county of Lancashire, where Singleton is located, to the Barnett, Marcellus and Haynesville shales in the US, where vast new gas reserves unlocked by fracking have transformed energy markets. When Cuadrilla Resources started drilling last year, "we were amazed at how thick the shale was", he says. "There was almost 1000 feet more of it than we'd expected, and the thicker the rock, the more gas there is".

The widespread use of fracking was a game-changer for the North American energy industry, allowing the US to become a net exporter of gas and, in 2009, to overtake Russia as the world's largest producer. Last year, the US pumped 4.87 trillion cubic feet of shale gas, equivalent to 23% of its total gas production. Europe, too, is thought to have huge production potential. One London think tank estimates there are enough recoverable reserves of unconventional gas in Europe to meet its gas demand "for at least another 60 years".

That potential has attracted some of the world's biggest energy companies. Exxon-Mobil has been chilling for shale gas in northern Germany. ConocoPhillips has teamed up with Britain's 3Legs Resources to explore in Poland's Baltic Basin. But there are many obstacles. Environmentalists in several countries, including Britain, are pushing to restrict fracking. And although the British government this week rejected calls for tough new controls on the practice, France last month became the first country to ban it completely.

Cuadrilla Resources, founded in 2007, was initially focused on shale gas in the US. But by then, land prices in the likeliest areas were already too high. So it shifted its focus to Europe instead. "We knew there was similar geology there", Mr Miller said. Britain, whose untapped shale reserves are thought to be substantial, seemed to be the perfect destination. With backing from Australian mining company ASLucas and US private equity firm Riverstone Holdings, Cuadrilla Resources acquired a licence covering 280,000 acres in Lancashire's Bowland Shale in 2008.

Last year, Cuadrilla Resources made Britain' first shale gas discovery near Blackpool. In the ensuing months, it started fracking there to see if it could get the gas to flow. The company says its procedures are safe. To prevent leaks into the local aquifer, it is drilling 1000 feet below the water table, underneath rock that has held back the gas for millions of years. "It would defy physics" for any of that gas to seep into ground water, Mr Miller said. Cuadrilla Resources also puts an extra layer of steel and cement into its wells to better isolate the exposed rock formations. But in the end, the biggest threat to Cuadrilla Resources's operations came from an unexpected source: the two small earthquakes that shook Lancashire on April 1 and May 27.

In Singleton, people had been generally supportive of fracking, but some changed their minds after the tremors. "They should have investigated how it could affect the earth before they went ahead", said one local woman. Cuadrilla Resources assembled a team of independent experts to determine if there was any link between fracking and the tremors, which it stressed had caused no damage and no physical injuiy. Meanwhile, Mr Miller began a series of public meetings to try to calm local jitters. The Cuadrilla Resources chief executive said he didn't expect to be quite so much in the public eye. "I thought it would all be about well design and raising finance", he said. "Sometimes you feel you're a spokesman for the global oil and gas industry".

Explorer reassures investors

Adelaide Advertiser
29 July 2011, Page: 69

HOT rocks explorer GeoDynamics had $29.1 million in cash reserves at the end of the June quarter, it informed shareholders yesterday. The company last month reassured investors about its strong balance sheet-and access to the Federal Government's $90 million Renewable Energy Demonstration Program-to deliver value despite falling share prices.

Chief executive Geoff Ward this month said the company would be a "big winner" from the program, which would deliver benefits for the company's "long suffering shareholders". GeoDynamics is focusing on its 1 MW pilot plant at Innamincka to demonstrate the first power produced from an enhanced geothermal system early next year.

Thursday, 4 August 2011

Export fans $300 million to SA

Adelaide Advertiser
27 July 2011, Page: 27

AN industry that did not exist in Adelaide a decade ago now manufactures and exports wind towers for a wind farm in Victoria. RPG Australia's manufacturing plant at Kilburn is constructing the towers for the Macarthur wind farm in southwest Victoria. The company has made about 600 towers for sites across South Australia, New South Wales, Victoria and Western Australia since 2002, injecting about $300 million into the SA economy. Federal Climate Change Minister Greg Combet and Premier Mike Rann inspected the factory yesterday. Mr Rann said 90 of the plant's 100 staff were working on wind turbine tower production, "an industry that didn't exist here a decade ago".

He said the old Mitsubishi site at Tonsley Park would be turned into a hub for innovative companies in sustainable technologies. "We are expecting Tonsley Park to attract $1 billion in private investment over 15 years, with up to 8600 people employed on the site and increasing the gross state product by $400 million a year by 2026", he said. "So now we have a new target of having 33% of our electricity generation come from renewable energy by 2020". Mr Combet said of the new Clean Energy Finance Corporation: "(It) will play a vital role in unlocking significant new private investment into clean energy projects and the supply chain that feeds into these projects".

New Syngas China deal

Adelaide Advertiser
28 July 2011, Page: 69

SYNTHETIC fuel company Syngas has lined up a second potential Chinese partner, Kailuan Energy, for its coal gasification and biomass projects. The company signed a letter of intent with the Shanghai Stock Exchange-listed company yesterday in Melbourne to negotiate on possible investment options in Syngas or its projects, subject to regulatory approvals.

Syngas' current portfolio of projects, including the Clinton coal-to-liquid project 120km northwest of Adelaide, are covered by the agreement. Syngas has a similar understanding with the China National Electric Engineering Corporation to finalise an engineering, procurement and construction agreement by next March..

"This is a major development for Syngas. We now have the benefits of this relationship with Kailuan, as well as our existing CNEEC relationship", Syngas managing director Merrill Gray said. "We will be working diligently to bring significant value to shareholders through these relationships over the next few months". Kailuan Energy's main businesses are coal mining and coal beneficiation, logistics, machining and coal chemical.