Energy Discussion

Entries from February 2008

World’s ‘greenest city’

February 6, 2008 · Leave a Comment

MANILA, Philippines–WHAT DOES it take to be named, or become, a “green” city?

Recently, the World Wildlife Fund (WWF) and the government of Abu Dhabi launched a “sustainability strategy” to create the “world’s greenest city.” Known as Masdar City, it will be the world’s “first zero-carbon, zero-waste, car-free city,” according to the master plan, the “One Planet Living” program, a global initiative launched by WWF and environmental consultancy BioRegional. According to a news release, WWF will work with officials of Masdar to “ensure the city meets standards of sustainability which include specific targets for the city’s ecological footprint.”

Electricity for the planned city, occupying a 6 square-kilometer area, will be generated by photovoltaic panels, while cooling will be provided via concentrated solar power. Water will be provided through a solar-powered desalination plant. Landscaping within the city and crops grown outside the city will be irrigated with “grey water” and treated waste water produced by the city’s water treatment plant. Construction of Masdar City is slated to start early this year.

The city is part of the Masdar Initiative, Abu Dhabi’s “multi-faceted investment in the exploration, development and commercialization of future energy sources and clean technology solutions.” A model of Masdar City will be unveiled on Jan. 21 at the World Future Energy Summit in Abu Dhabi.

* * *

THIS early, Masdar City has already gained adherents, including no less than US President George Bush, who was briefed on the government’s plans for the city during a visit. Gulf News reports that Bush was “impressed” by plans for the “world’s greenest city.” “I was amazed at the advanced state of the UAE and how the country is using its resources to develop alternative energy,” the American president said, adding that “the whole world can learn what works and what does not in (Masdar).”

Praising the city as a model society powered by clean technology, Bush said the city is “an opportunity to share this [clean] technology with the UAE,” adding that he hoped his visit “will be an opportunity to work constructively with the UAE in all fields.” Dr. Sultan Al Jaber, CEO of Masdar, said Bush was especially interested in the partnerships the UAE had developed with businesses and academic institutions in the US.

Jean-Paul Jeanrenaud, director of WWF International’s “One Planet Living initiative,” noted: “Today Abu Dhabi is embarking on a journey to become the global capital of the renewable energy revolution. Abu Dhabi is the first hydrocarbon-producing nation to have taken such a significant step towards sustainable living.

“Masdar is an example of the paradigm shift that is needed and the strategic vision of the Abu Dhabi government is a case study in global leadership. We hope that Masdar City will prove that sustainable living can be affordable and attractive in all aspects of human living–from businesses and manufacturing facilities to universities and private homes.”

Al Jaber added: “Masdar City will question conventional patterns of urban development, and set new benchmarks for sustainability and environmentally friendly design–the students, faculty and businesses located in Masdar City will not only be able to witness innovation first-hand, but they will also participate in its development.”

* * *

MEANWHILE, even as the Abu Dhabi government is well on its way to creating “the world’s greenest city,” this country is still doing its best mitigating the damage wrought on the environment. A recent study found the Philippines to be among the “most harmed” countries in the world with respect to environmental degradation.

Perhaps in response to this news, the Supreme Court recently designated 117 “environmental courts” to try and decide on cases involving the violation of environmental laws, in a bid to speed up the resolution of such cases.

Von Hernandez, Greenpeace Southeast Asia campaigns director, welcomed the establishment of the environmental courts, saying he hoped these would “not only expedite the resolution of pending and future environmental cases, but also enhance the enforcement of existing environmental laws.”

Hernandez added that laws and policies already exist to address the many environmental challenges confronting the Philippines, but that “inconsistent and half-hearted enforcement of these laws has always been the bane of our environmental protection strategies.” Such a cavalier attitude toward the enforcement of environmental laws, said Hernandez, “has led to the severe pollution and despoliation of the air we breathe, the water we use for sustenance, and the forests needed to ensure the integrity of our various life-support systems.”

* * *

INDEED, the country already enjoys such groundbreaking laws like the Clean Air Act and the Ecological Waste Management Act. But despite the existence of such laws, said Hernandez, “illegal dumpsites keep on proliferating across the country and the ban on the open burning of waste continues to be violated with wild abandon. Because they know they can get away with it, abusive corporations treat our mountains and rivers as their private storehouses and repositories of their toxic waste.”

Before we can even dream, then, of creating “green cities” around the country, perhaps we should begin with enforcing our laws and preserving and protecting what remains of our unspoilt environment. The environmental courts can only hear cases of individuals and companies caught violating our laws. The rest of us can ensure that our laws are followed, starting with our own backyards, our own environmental practices.

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Categories: Energy Policies

EU to set member states stricter renewable energy targets for 2020 – report

February 6, 2008 · Leave a Comment

FRANKFURT (Thomson Financial) – The European Commission is poised to clash with member states over strict national targets it plans to set for boosting the proportion of energy they generate from renewable sources, Handelsblatt reported, citing unnamed EU diplomats.

By 2020, Commissioner Andris Piebalgs wants Sweden to lift its ratio of energy coming from renewable sources to 50 pct, while the proposed target for Austria is 34 pct, 20 pct for Spain and 18 pct for Germany, the newspaper said.

The rate in Germany was 9 pct in 2007, according to the BEE association of renewable energy companies.

As part of the package of new rules, the EU also wants to introduce carbon dioxide emission targets for each member state and set stricter conditions for trading in emission certificates, the newspaper added.

Member states are already claiming the proposed individual targets are too strict, saying they will hurt their economies, the sources were quoted as saying.

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China oil demand not affected by price rises – IEA

February 6, 2008 · Leave a Comment

Jan. 16, 2008 (Thomson Financial delivered by Newstex) –
BEIJING (XFN-ASIA) – Fuel price rises are unlikely to have any effect on demand in China, which continues to be driven by ’structural changes’ in the Chinese market, the Paris-based International Energy (OOTC:ILGL) Agency (IEA) said in its monthly oil report.

The report noted that oil demand rose 3.1 pct year-on-year in November, and that shortages on the market in the last few months suggests that ‘pent-up demand is significant’.

The Chinese government has already ruled out any short-term increase in the price of oil products, the IEA noted.

The agency said that despite a fall in fuel oil consumption, with small ‘teapot’ refiners switching to the subsidized crude provided by state oil companies at the instruction of the government, China will continue to be a significant driver of world energy demand growth.

November figures also indicate that despite government pressure, the two largest Chinese oil companies — PetroChina and Sinopec (NYSE:SNP) — have struggled to boost output, with refinery runs in November remaining almost the same as December.

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Categories: Energy Markets

China oil demand not affected by price rises – IEA

February 6, 2008 · Leave a Comment

Jan. 16, 2008 (Thomson Financial delivered by Newstex) –
BEIJING (XFN-ASIA) – Fuel price rises are unlikely to have any effect on demand in China, which continues to be driven by ’structural changes’ in the Chinese market, the Paris-based International Energy (OOTC:ILGL) Agency (IEA) said in its monthly oil report.

The report noted that oil demand rose 3.1 pct year-on-year in November, and that shortages on the market in the last few months suggests that ‘pent-up demand is significant’.

The Chinese government has already ruled out any short-term increase in the price of oil products, the IEA noted.

The agency said that despite a fall in fuel oil consumption, with small ‘teapot’ refiners switching to the subsidized crude provided by state oil companies at the instruction of the government, China will continue to be a significant driver of world energy demand growth.

November figures also indicate that despite government pressure, the two largest Chinese oil companies — PetroChina and Sinopec (NYSE:SNP) — have struggled to boost output, with refinery runs in November remaining almost the same as December.

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Categories: Energy Markets

EU nations chafe as the climate change bill comes in

February 6, 2008 · Leave a Comment

BRUSSELS (AFP) — Less than a year after challenging the world to a race to stop global warming, European Union nations are bickering over who should carry the biggest burden in the EU’s push to cut greenhouse gases.

Now starkly aware of the cost their commitments could imply, the 27 nations have been lobbying the European Commission hard as it prepares to unveil Wednesday a package of measures meant to achieve Europe’s climate goals.

Whether it is Germany with its auto industry, nuclear minded France, coal-dependent central Europe or the environment-friendly Nordic nations, all know they will struggle to meet targets the Commission is ready to impose.

Just nine months ago, EU leaders agreed with great fanfare to cut carbon dioxide emissions by 20 percent by 2020, against 1990 levels, which they judged to be the best way to stop the planet heating by two degrees Celsius.

As an incentive to the world’s major polluters, they offered to go 10 percent better, cutting emissions by 30 percent over the same period if others were prepared to match it.

The leaders also set a binding target for renewable energy to provide 20 percent of Europe’s needs by 2020, compared to 8.5 percent currently, and agreed that this should be achieved by some countries doing more than others.

“The specialities and peculiarities of each country will have to be taken into consideration,” warned German Chancellor Angela Merkel, whose country held the EU presidency.

In the run up to Wednesday’s announcement, they are all clamouring to be taken into consideration, with Germany’s environment and economics ministries part of the chorus of criticism.

German industrialists estimate the measures could endanger one million jobs.

For the Commission, coming up with the calculations to achieve the EU’s goals — through proposals to bolster emissions trading and national targets on carbon dioxide cuts and renewable energy use — has proved a thankless task.

French President Nicolas Sarkozy wrote to its chief Jose Manuel Barroso imploring him to calculate the targets based on the amount of pollution currently produced per inhabitant, rather than on gross domestic product (GDP).

France wants greater consideration taken of its wide use of nuclear power.

Nordic nations too are bristling. With Europe’s most impeccable environmental credentials, Denmark, Finland and Sweden were seeking reward for their already substantial efforts.

But they could be penalised for their relative wealth, with Sweden likely to be asked to derive half its energy from renewable sources, Finland 40 percent and Denmark 32 percent.

At the other end of the scale, ex-communist states, already battling to bridge the EU’s economic gulf, complain they have to overcome a legacy of environmental abuse and energy intensive industries.

Greece, Ireland, Portugal and Spain — which have become richer as members of the EU but have done little to reduce greenhouse gas emissions — are also likely to be hit hard.

But a week before the package was to be released, a defiant Barroso vowed not to compromise, even though the method of calculation does not yet have unanimous support in the Commission itself.

“Do not expect us to compromise on European interests,” he said. “Both our international credibility and credibility before European Union citizens depend on fulfilment of the targets.”

“It is essential to meet the three central challenges that the European Union faces in energy: competitivenesss, sustainability and security of supply,” he said.

In the end, the Commission’s calculations are bound to be modified, as the proposals are picked apart by the EU nations and the European Parliament over the next several months.

And while the targets will be legally binding, any action taken to fine a country that fails to respect them by 2020 would take years, dragging through EU infringement procedures and the courts.

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Categories: Energy Policies

Bodman: Global energy security requires significant investment

February 6, 2008 · 1 Comment

Nick Snow
Washington Editor

WASHINGTON, DC, Jan. 21
– Billions of dollars in investments will be required annually to
achieve global energy security by diversifying supplies, suppliers and
supply routes, US Secretary of Energy Samuel W. Bodman told business
leaders in Saudi Arabia.

“These three elements are the key to enhancing global security. To
achieve them is, perhaps, one of the most significant challenges of our
time. And to address them in a timely manner, we will need literally
billions of dollars annually, over many years,” he said in prepared
remarks that were released Jan. 19.

The International Energy Agency estimates that $22 trillion of
investment will be needed between now and 2030 if the world is to meet
expected energy demand, Bodman said in his breakfast address in Riyadh.
“This investment must be global, in developed and developing nations
alike, and at all stages in the energy cycle,” he said.

Government and business leaders also should recognize that greater
environmental responsibility is required in all energy cycle phases, he
said. This means harnessing scientific and technological resources, as
Saudi Arabia is doing at its King Abdul Aziz City for Science and
Technology, and soon at the King Abdullah University of Science and
Technology to develop cleaner energy sources and technologies, Bodman
said.

“That’s not even the whole picture. We must also consider the impact
energy prices have on our economies. The tremendous economic growth in
China and India and their growing demand for more and more energy has
received much attention. What has not been as widely discussed is the
impact high prices have on smaller and developing countries,” he said.

Economic impacts
Bodman
said he doesn’t consider it an overstatement to suggest that high oil
prices can hurt a country’s economic health. They can restrict
development in ways that keep businesses from growing, inhibit
improvements in health care and other critical areas, and generally
prevent rises in living standards, he said. Both consuming and
producing nations must act responsibly to encourage economic growth
worldwide, raise global living standards, and improve environmental
health, he said.

Achieving this goal will require many different efforts in several
different areas, Bodman said. “We must start by asking: Will the
necessary investments be made to bring sufficient hydrocarbons to
market? Is the investment climate in producing countries conducive to
inviting such capital flows? Are large consuming nations having the
right type of discussions and collaborations with producing nations? If
not, why not? And are we adequately investing in ways to produce fossil
energy more cleanly and efficiently?”

Bodman suggested that it is time to stop taking what he termed
“purposeful market distortions” that clearly won’t help, such as
restricting supplies, reducing production, and creating price floors
and ceilings. “I can’t stress this enough: The global oil market must
be allowed to function in a predictable and transparent way,” he
declared.

The world also requires new energy options beyond hydrocarbons, Bodman
said. “Everyone—governments included—has an important role to play in
the development of alternative fuels and advanced energy technologies.
But the private sector cannot do it alone. We need a new ay of thinking
about how we can work with the private sector. Even our research
priorities must be developed with substantial input from corporations,
utilities and universities. And research needs to be conducted in a
coordinated way.”

Governments should commit
To
that end, Bodman has challenged many countries’ governments to publicly
commit to increase investment in research and development necessary to
achieve the necessary alternative fuels and energy efficiency
breakthroughs, and to achieve the right balance between energy security
and environmental stewardship. “This requires significant public and
private global investments. But it’s worth it,” he said.

Increased investment in energy research and development also would help
meet another global challenge: the shortage of qualified engineers and
technical staff needed to meet the demand for rapid innovation, Bodman
said.

“We need to invest in the next generation of leaders to steer us
through the energy challenge, and we must get beneficial technologies
into the marketplace more quickly. That means sharing the risk that
capital markets and the private sector are not yet ready to take on,”
said Bodman.

One example is a new technology commercialization and development fund
that DOE is developing at several of its national laboratories, he
said. The fund will permit the labs to use prototype development,
demonstration projects, market research and other deployment activities
to move clean energy technologies which have moved beyond the research
stage toward commercial viability, he said.

“We must leverage the power of private equity, as we are doing in the
example I just cited. We must make smart public funding and regulatory
decisions, and unleash the world’s best scientists and engineers on the
problem of developing cost-effective, market-ready advanced energy
technologies,” said Bodman.

“Without sustained global investments, and without a new global
commitment to invest in new sources of energy and breakthrough
technologies, we will not achieve the innovations we must have to solve
the world’s critical energy problems,” he warned.

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Categories: Energy Policies

China power shortages spread to central regions – report

February 6, 2008 · Leave a Comment

BEIJING (XFN-ASIA) – Power shortages in central China are getting more severe by the day as a result of coal supply problems, according to official news agency Xinhua.

According to official figures, the region covered by the central Chinese power grid is suffering a capacity shortfall of 6,370 megawatts, and coal stockpiles at 25 thermal power stations have reached critically low levels, the report said.

Central China’s coal stockpiles have been depleting by around 100,000 tons a day. The region has 5.57 mln tons left, only half the normal level, and enough to meet only seven days of consumption, the report said.

In Sichuan, the local power grid has been restricting consumption by more than 20 mln kWh a day since Jan 18.

The central Chinese power grid covers the provinces of Jiangxi, Hubei, Hunan and Sichuan, as well as the city of Chongqing.

Snow and rain are affecting coal transportation in some parts of the region, while others have also been suffering from low water flows, which have seriously affected hydropower generation.

The Southern Power Grid Corp revealed last week that over 10,000 megawatts of capacity had been shut down in the region – which includes the provinces of Yunnan, Guizhou, Guangxi, Guangdong and Hainan – as a result of coal shortages.

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Categories: Energy Markets

Analysis: Renewable energy’s potential

February 6, 2008 · 1 Comment

By ROSALIE WESTENSKOW
UPI Correspondent
THE DALLES, Ore., Jan. 21 (UPI) — Faced with rising energy costs and growing demand, much of U.S. industry and government are turning to renewable energy as a solution, but for many citizens it’s unclear when and how well these technologies will work.

Given the approximately $2 billion allotted to renewable energy research and development in the recently signed Energy Independence and Security Act of 2007, taxpayers may want to know what their money is going to support.

Many renewable energy technologies exist, and though different entities classify different technologies as renewable, most lists include wind, solar, geothermal, hydropower, fuel cells and biomass. In 2006 renewable resources provided 7 percent of the nation’s electricity supply, according to the Energy Information Administration, the statistical agency for the U.S. Department of Energy.

Many of these technologies have been progressing in recent years and hold high potential to decrease U.S. consumption of fossil fuels, as well as benefit the environment because of low, or nonexistent, carbon dioxide emissions, said Gary Schmitz, spokesman for the National Renewable Energy Laboratory, directed by the Department of Energy.

“In terms of potential, (renewable energy) is virtually limitless,” Schmitz told United Press International. “Theoretically, if you took today’s solar photovoltaic technology and employed it in a square of the Arizona desert, 100 miles on a side, you could provide the entire country with its electricity needs.”

Although NREL isn’t suggesting anyone actually do that, Schmitz said the point is there’s enough sunlight to power the nation. And enough wind. And the list goes on.

The problem, then, lies not so much in the availability of renewable resources, or the technology to harness them, but the cost of doing so. Most of these technologies cost more, currently, than using fossil fuels.

However, even at current prices, several alternative energy technologies are thriving.

“(Implementation of) all of these technologies is growing at a rate of 20 percent to 30 percent per year,” Schmitz said. “Even solar … has found a healthy market.”

At 20 to 25 cents per kilowatt-hour, the price tag for solar energy stands significantly higher than that of coal at 3 to 7 cents per kwh.

But many companies see solar as a smart investment, nonetheless.

On Jan. 14, Schott Solar, a leading solar equipment manufacturer, announced its plan to invest $100 million in a factory that will produce equipment for solar power plants. Over the next several years Schott plans to employ 1,500 people and spend a total of $500 million on the facility, based in Albuquerque. The company sees the facility as an investment in a growing market, said Brian Lynch, spokesman for Schott.

“We are anticipating continued, steady growth, which has been 50 percent over the past several years,” Lynch told UPI. “We see the United States as a sleeping giant for solar energy.”

Although increasing fossil fuel prices and concern about the environment have fueled some of this growth, experts say government actions have also inspired investment in the technologies. Schott appears to be no exception.

“With increased incentives from the federal government and growing state action, we think the market for solar will continue to grow,” Lynch said.

More than 23 states and the District of Columbia have passed Renewable Portfolio Standards, mandates that require utility companies to generate a certain amount of their electricity from renewable energy sources. In addition, the federal government provides incentives or subsidies for a variety of these technologies as well as research funding.

Without this support, many renewables will never be able to break into today’s market, said Jan van Dokkum, president of United Technologies Co., a producer of fuel cells. These function somewhat like a battery, but use hydrogen and oxygen as fuel to produce electricity.

“It takes a mandate to go large scale,” van Dokkum told UPI. “If we can get volumes up, the price will come down … (because) if you look at the materials that make up a fuel cell compared to an internal combustion engine, it should be cheaper (to make a fuel cell).”

Currently, fuel cells are mainly used to provide electricity on board space shuttles. However, they have also been implemented in some city buses and concept cars and as electricity generators in buildings.

One of the main difficulties with fuel cell cars lies in the lack of infrastructure.

“All (gas stations) would have to be replaced with hydrogen fuel stations,” van Dokkum said. “So the problems you face with fuel cells in getting them to the marketplace are tremendous.”

There have been some exciting advancements in recent years, though, in making fuel cell technology cleaner. Currently, the hydrogen used in fuel cells cannot be produced without using fossil fuels. However, a scientist at Duquesne University in Pittsburgh has developed a way to split hydrogen from water molecules using only sunlight and a chemical catalyst. If this went to market, fuel cell technology would become completely emissions-free.

Photochemical hydrogen production, as it’s called, can be done with an efficiency of 10 percent right now, the level required by the Department of Energy for a product to go to market, but needs much more research and testing before it will ever be available for consumers, said Shahed Khan, associate professor at Duquesne. Without increased funding, that could take a long time.

“I should say if we had serious, sufficient funding, maybe five years (before we went to market), at the latest,” he told UPI.

Government should not be so quick to subsidize renewable technologies, though, said Ben Lieberman, a senior policy analyst for energy and the environment at The Heritage Foundation, a conservative think tank.

“The more government help something needs, then the less I think it’s probably all it’s cracked up to be,” Lieberman said.

What’s keeping most of these technologies from the marketplace isn’t lack of funding, Lieberman told UPI, but an inability to deliver what consumers want.

“The real issue with fuel cells is that they’re not as good as their proponents say they are,” Lieberman said. “The problem with wind and solar is their reliability. The sun doesn’t always shine; the wind doesn’t always blow.”

However, some renewable options are becoming increasingly competitive, and wind actually costs the same amount per kwh as fossil fuels. Although renewable skeptics attribute this to government subsidies, renewable proponents point out the fossil fuel industry receives government help, too.

In fact, according to a recent Government Accountability Office report, the Department of Energy spent $3.1 billion on research and development for fossil fuels between 2002 and 2007, compared with $1.4 billion for renewable technologies. Electricity-related tax expenditures in the same time period for fossil fuels reached $13.7 billion, while renewable energy sources received $2.8 billion.

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Categories: Renewable Energies