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  • Renewable Energy : Google Blind

    Posted on November 23rd, 2014 Jo No comments

    In an interesting article by two Google engineers, Ross Koningstein and David Fork, "What It Would Really Take to Reverse Climate Change : Today’s renewable energy technologies won’t save us. So what will?", the authors concluded from their modelling scenarios that :-

    "While a large emissions cut sure sounded good, this scenario still showed substantial use of natural gas in the electricity sector. That’s because today’s renewable energy sources are limited by suitable geography and their own intermittent power production."

    Erm. Yes. Renewable electricity is variable and sometimes not available, because, well, the wind doesn’t always blow and the sun doesn’t always shine, you know. This has been known for quite some time, actually. It’s not exactly news. Natural Gas is an excellent complement to renewable electricity, and that’s why major industrialised country grid networks rely on the pairing of gas and power, and will do so for some time to come. Thus far, no stunner.

    What is astonishing is that these brain-the-size-of-a-planet guys do not appear to have asked the awkwardly obvious question of : "so, can we decarbonise the gas supply, then ?" Because the answer is "yes, very largely, yes."

    And if you have Renewable Gas backing up Renewable Power, all of a sudden, shazam !, kabam ! and kapoom !, you have An Answer. You can use excess wind power and excess solar power to make gas, and you can store the gas to use when there’s a still, cold period on a wintry night. And at other times of low renewable power, too. And besides using spare green power to make green gas, you can make Renewable Gas in other ways, too.

    The Google engineers write :-

    "Now, [Research and Development] dollars must go to inventors who are tackling the daunting energy challenge so they can boldly try out their crazy ideas. We can’t yet imagine which of these technologies will ultimately work and usher in a new era of prosperity – but the people of this prosperous future won’t be able to imagine how we lived without them."

    Actually, Renewable Gas is completely non-crazy. It’s already being done all over the world in a variety of locations – with a variety of raw resources. We just need to replace the fossil fuel resources with biomass – that’s all.

    And there’s more – practically all the technology is over a century old – it just needs refining.

    I wonder why the Google boys seem to have been so unaware of this. Maybe they didn’t study the thermodynamics of gas-to-gas reactions at kindergarten, or something.

    Thanks to the deliberate misinterpretation of the Google "brothers" article, The Register, James Delingpole’s Breitbart News and Joanne Nova are not exactly helping move the Technological Debate forward, but that’s par for the course. They rubbished climate change science. Now they’ve been shown to be wrong, they’ve moved on, it seems, to rubbishing renewable energy systems. And they’re wrong there, too.

    Onwards, my green engineering friends, and upwards.

  • 20 Letters

    Posted on November 22nd, 2014 Jo No comments


    [ Video : George Marshall of the Climate Outreach Information Network launching his new book "Don't Even Think About It" on the communication of climate change at the Harvard Book Store, whereto he had to fly, thereby causing significant personal carbon dioxide emissions. This YouTube does not feature Ian Christie, but is not entirely unrelated to his address, which is documented in the text below. ]

    This afternoon, Ian Christie of the Sustainable Lifestyles Research Group (SLRG) at the University of Surrey stunned a group of seasoned environmental and political campaigners by suggesting that twenty letters could change the course of history. He suggested that if Member of Parliament or somebody working for another public organisation received as few as twenty letters on the same subject in their mailbag or email inbox, then they would feel that this would signify a change of mood in public discourse and warrant action, or, at the very least, a public statement.

    Ian Christie came to speak to the Green Christian Annual Members Meeting today under the heading “Sustainable Living : Why we struggle and how we can change”, and presided over three facilitated workshops on Church, Community and Campaigning. He was introduced as working with the Centre for Environmental Strategy at the University of Surrey, and having helped to pull together “Church and Earth”, the Seven Year Plan for the Church of England, as a response to the Alliance of Religions and Conservation initiative which culminated in the “Many Heavens, One Earth” Windsor Conference in November 2009. Ian Christie has also done project work with the Foundation for Democracy and Sustainable Development and the think tank Theos. He has been environmental advisor to the Bishop of Kingston.

    Ian Christie said that his colleague Tim Jackson, who has written a best-selling book “Prosperity Without Growth”, is on a permanent global tour, wherever the book gets published. The “juicy paradox” is that his carbon footprint is enormous. “I don’t fly”, said Ian, “I’m more or less offsetting his emissions”. Ian said that we shouldn’t beat ourselves up about our carbon emissions-filled lifestyles – we’re doing very well in not very promising circumstances. It’s not surprising that we haven’t made much progress in sustainable living – this is perhaps the biggest thing humanity has asked ourselves to do.

    Ian said, “Between 5% and 15% of the population (and this figure hasn’t changed over the last 10 years) are consistently trying to live within their personal carbon budget – in all areas of their lives. Meanwhile, between 5% and 20% don’t care at all. They might vote for UKIP. It’s nice to know they’ve got someone to vote for now. The other 45% or so, including myself, drift into that middle ground. We get confused. We give up. Feel that taking the trouble on environmental issues is a big of an effort – because other signals are not there, because other people are not doing it. Anyone who thinks we can bring about environmental “conversion”, person by person – it’s too difficult.”

    He went on to say, “We don’t tell positive stories very well. We’re much better at telling the apocalyptic story. There’s a lack of supporting infrastructure. People get locked-in to behaviours. We want to do the green, sustainable thing but we can’t. The idea that joy in less is possible is unbelievable.” He went on to explain that, “consumption can [make us feel good]. More can be more. I get a thrill going into John Lewis sometimes, all those bright and shiny things. It’s amazing they’re available for sale and that I can afford them. Consumerism can be fun.”

    Ian Christie remarked about the RESOLVE research of colleagues that there was a sense of “threatened identities”, when we’re asked to change our lifestyles – our whole identity can be at stake. There are a lack of positive incenties and collective [success] stories. He gave an example – one where people cooking for their families want to recreate the cosy, nourishing food of their childhoods, and they do that by using meat. These people find it hard to be told that they need to give up eating meat to save the planet. Another example, when people are told to cut down on car driving – there is a feeling of a loss of freedom, I can go where I like and do what I want to do. “Climate change is perhaps too big, distant or complicated for us. It is certainly too much for any one person to deal with – me, Tim Jackson, or the Pope.” Ian Christie spoke about the clash of desires and values – and that St Paul got there first (Romans 7:15-17) (and St Augustine, but paraphrased). He mentioned a friend, Mayer Hillman, who had written a letter to his loved ones overseas to say that he was sorry but that he would never be visiting them, as this would involve flying, and he could not do that. He said that he has discovered that many people had a dirty secret, which he calls “Top Gear Syndrome” – and “you’d be surprised how many environmentalists like watching Top Gear”. He also mentioned “Copenhagen Syndrome” – where environmentalists feel that they need to attend every meeting on climate change – and so they fly there. People like to go to exotic places – Greens especially.

    Ian Christie emphasised that we can’t get to sustainable living one person at a time. He said that this amounted to a “Collective Action Problem” or (CAP). He showed us an image of what is commonly called a Mexican Stand-Off – where a group of three people have their weapons at each other’s throats and nobody will back down – each of the three major groups in society thinks that the other two should take the lead. So governments think that businesses and citizens should act. And citizens think that government and businesses should act. And businesses think that their consumers and governments should act.

    Ian said that there is a clear finding from social research that people feel safety in numbers – they’re terrified of falling out with their neighbours – for example, in some cultures like America, people would rather make everyone feel comfortable than break out of normative behaviour or views. Individual households have a low perception of “agency” – feeling that they can make any significant change – that they don’t have sufficient capacity to act – “no clout” – as one member of the audience commented.

    Ian gave some examples of attitudes of people’s attitudes on environmental lifestyles : “I will even though you won’t – even though no one else steps forward”; “I will – but it’s never enough”; “I might if you will” or even, “I know you won’t, so don’t ask me”. He said that Collective Action Problems need to be addressed by all actors needing to be engaged. He said that there would be “no one best buy” and that action will tend to be “clumsy solutions”. He said that people need “loud, long and legal” signals from government, consistent messages and incentives for change.

    Ian Christie said there is a community level of action possible – “communities of practice”. He recommended that we look up the CLASL research done by Defra/WWF. He mentioned “moments of change” – times of transition in life – and whether these might be appropriate times to offer support for alternative choices. He said that action by individuals cannot be guaranteed by giving messages to people as if they are only consumers, rather than citizens. If we say that something will save people money, they won’t necessarily act. We need to address people’s values.

    Ian talked about some of the results of the research from the SLRG project, which is coming to an end. He spoke about the evidence of “Rebound Effects”, where people make savings on their carbon dioxide emissions by living frugally and then spend the money in ways that increase greenhouse gas emissions, like taking holidays by aeroplane – he mentioned the Tesco offer to “turn lights into flights”, where people were being encouraged to buy energy efficient light bulbs in exchange for Air Miles – “it’s going to make things much worse”. He said that research showed that respending (reinvestment) is what matters and that we need to go to the source of the emissions, through a carbon tax, for example.

    Ian Christie said that it is very limited what we can do as individual households. Lots of policymakers have thought to get through to people at moments of change – although there used to be no evidence. People’s habits and networks can be restructured for example when they move home, have a child or retire – a “habit discontinuity”. Research has now shown that there is an effect with housemovers – who are much more likely to act on information if they are given information packages on green living – but only a small minority are truly motivated. He asked “how do we magnify it ?” The sheer act of moving house makes people amenable to change. Research has also shown that there is a willingness amongst new parents – who would express more pro-environmental values [as a result of] having a new child – but are less capable of acting on these wishes. The reverse was found in those entering retirement – they wanted to live more frugally – but didn’t express this desire in terms of sustainable living.

    Ian said that the “window of opportunity” for introducing lifestyle change closed after three months or so – and that people did not retain their new habits without “lifestyle support systems”. People didn’t want to hear from a green group, but would be open to hearing from a church, or their Health Visitor, or Mumsnet. Maybe even a hairdresser ? One project that he recommended was PECT, the Peterborough Environment City Trust, which is acting as a facilitator to embedding changes. He said people get depressed if they feel businesses and governments are not doing the same thing. He mentioned avenues and approaches for increasing the sense of agency : framing environmental issues in : moments of change, local food growing, community energy groups, frugality, health and well-being… People like to think they are living a more frugal lifestyle.

    Ian Christie said that previously, the Church of England work on the “Fifth Mark of Mission” was perhaps not making much progress, but that there is now a pretty motivational group in Church House – with the “new blood” of Rt Revd Nicholas Holtam, Bishop Richard Cheetham and Canon Giles Goddard.

    He said that the Church of England needs to have a Press Release ready to put out the same day as the next Papal Encyclical – to say “see what the Pope is doing on Climate Change”.

    Ian Christie suggested that positive activities could inspire : why could a church not turn an emergency feeding centre – a food bank – into a food hub – a place where people could come for tools, seeds and food growing group support ? They could be linked to Transition Towns projects. What about Cathedral Innovation Centres ? Why not partner with the National Trust or the National Health Service over environmental issues ? He said the NHS has a Sustainable Development Strategy – “the best I’ve seen”. He said they are longing to work with partners – including churches. He mentioned the National Union of Students too – who have sustainable living project funds. How about calling for a New Green Deal for Communities ? The reason why the Green Deal has been so poorly supported has been it has been promoted to individuals and it’s much harder to get individuals to commit and act on projects.

    Ian pointed towards good intervention concepts : “safety in numbers” approaches, moments of change, congregation spaces, trusted peers in the community, consistent messages. He recommended Staying Positive : “look how far we’ve come”; we have two decisive decades ahead; Business As Usual is failing – CEOs are breaking ranks; cities are going green and the churches are waking up.

    He suggested that in future, instead of community groups drawn together by fear – such as Neighbourhood Watch – we should anticipate Neighbourhood Welcome – an eco-house in every community to invite new local residents to for inspiration for their new lifestyles.

    He asked “Is there another way of organising other than catastrophising ?”

    In questions, I asked Ian Christie why he only had three social groups rather than four. I said that I see businesses broken down into two categories – those that produce energy and those that consume energy to provide goods and services. I said there were some excellent sustainable development strategies coming out of the private enterprises consuming energy, such as Marks and Spencer. He said that yes, amongst the energy producing companies, CEOs have yet to come out and saying anything. He pointed to Unilever, who are beginning to see themselves as being opposed to the petrochemical industry – the source of much of their chemical feedstock. He said that he hoped that it would be possible to drive a wedge between these two groups, open up the gap as wide as it can be between energy-consuming and energy-producing companies. He said that food companies, for example, could be brought to understand that if they continue using fossil fuels that they are threatening their own businesses – and that they could come to be against the use of fossil fuels.

    When asked about whether we should try to set the economy on a “war footing” as regards climate change, Ian Christie said “we aren’t in a war like that. We are the enemy. We are the war.” He said that the churches need to bring climate change into every talk, every sermon “this is how we do Christian witness”. He said we can’t have a government-led mobilisation on climate change in the same way as in wartime.

    In discussion after the breakout workshops, Ian Christie said that we need to try to get to local opinion-formers. He said that a critical mass of communication to a Member of Parliament on one subject could be as few as 20 letters – that could be considered to be a change of public opinion – a shift. He said that this technique of mass letter writing is how other people “play the game” in politics, so we must do it too. For example, we could write to our churches, our leaders, our democratic representatives, and demand a New Green Deal for Communities, and in letters to political candidates for the General Election we could say it would be a critical factor in deciding who we vote for. In the General Election in 2015, Ian said that it could be a five-way split, and that the “green issue” could be decisive, and so we should say that our vote will go to the greenest of people.

    Ian said we should try to audit our church expertise, and that we should aim for our churches to give one clear overall narrative – not an “environmental narrative”, but one that urges us to be truly Christian. He said that it was important that church leaders talk the talk as well as walk the talk – making it normal to talk about these things – not keeping them partitioned. The weekly sermon or talk in church must tell this story. He said that people disagree for really good reasons, but that the issue was one of trying to create a setting in which disagreement can get somewhere. He mentioned the work of George Marshall and the Climate Outreach Information Network as being relevant to building narratives that work on climate change out of a silence or absence of dialogue.

  • Shell Shirks Carbon Responsibility

    Posted on November 19th, 2014 Jo No comments

    I was in a meeting today held at the Centre for European Reform in which Shell’s Chief Financial Officer, Simon Henry, made two arguments to absolve the oil and gas industry for responsibility for climate change. He painted coal as the real enemy, and reiterated the longest hand-washing argument in politics – that Shell believes that a Cap and Trade system is the best way to suppress carbon dioxide emissions. In other words, it’s not up to Shell to do anything about carbon. He argued that for transportation and trade the world is going to continue to need highly energy-dense liquid fuels for some time, essentially arguing for the continuation of his company’s current product slate. He did mention proudly in comments after the meeting that Shell are the world’s largest bioethanol producers, in Brazil, but didn’t open up the book on the transition of his whole company to providing the world with low carbon fuels. He said that Shell wants to be a part of the global climate change treaty process, but he gave no indication of what Shell could bring to the table to the negotiations, apart from pushing for carbon trading. Mark Campanale of the Carbon Tracker Initiative was sufficiently convinced by the “we’re not coal” argument to attempt to seek common cause with Simon Henry after the main meeting. It would be useful to have allies in the oil and gas companies on climate change, but it always seems to be that the rest of the world has to adopt Shell’s and BP’s view on everything from policy to energy resources before they’ll play ball.

    During the meeting, Mark Campanale pointed out in questions that Deutsche Bank and Goldman Sachs are going to bring Indian coal to trade on the London Stock Exchange and that billions of dollars of coal stocks are to be traded in London, and that this undermines all climate change action. He said he wanted to understand Shell’s position, as the same shareholders that hold coal (shares), hold Shell. I think he was trying to get Simon Henry to call for a separation in investment focus – to show that investment in oil and gas is not the same as investing in Big Bad Coal. But Simon Henry did not bite. According to the Carbon Tracker Initiative’s report of 2013, Unburnable Carbon, coal listed on the London Stock Exchange is equivalent to 49 gigatonnes of Carbon Dioxide (gtCO2), but oil and gas combined trade shares for stocks equivalent to 64 gtCO2, so there’s currently more emissions represented by oil and gas on the LSX than there is for coal. In the future, the emissions held in the coal traded in London have the potential to amount to 165 gtCO2, and oil and gas combined at 125 gtCO2. Despite the fact that the United Kingdom is only responsible for about 1.6% of direct country carbon dioxide emissions (excluding emissions embedded in traded goods and services), the London Stock Exchange is set to be perhaps the world’s third largest exchange for emissions-causing fuels.

    Here’s a rough transcript of what Simon Henry said. There are no guarantees that this is verbatim, as my handwriting is worse than a GP’s.

    [Simon Henry] I’m going to break the habit of a lifetime and use notes. Building a long-term sustainable energy system – certain forces shaping that. 7 billion people will become 9 billion people – [many] moving from off-grid to on-grid. That will be driven by economic growth. Urbanisation [could offer the possibility of] reducing demand for energy. Most economic growth will be in developing economies. New ways fo consuming energy. Our scenarios – in none do we see energy not growing materially – even with efficiencies. The current ~200 billion barrels of oil equivalent per day today of energy demand will rise to ~400 boe/d by 2050 – 50% higher than today. This will be demand-driven – nothing to do with supply…

    [At least one positive-sounding grunt from the meeting - so there are some Peak Oil deniers in the room, then.]

    [Simon Henry] …What is paramount for governments – if a threat, then it gets to the top of the agenda. I don’t think anybody seriously disputes climate change…

    [A few raised eyebrows and quizzical looks around the table, including mine]

    [Simon Henry] …in the absence of ways we change the use of energy [...] Any approach to climate change has got to embrace science, policy and technology. All three levers must be pulled. Need a long-term stable policy that enables technology development. We think this is best in a market mechanism. [...] Energy must be affordable at the point of use. What we call Triple A – available, acceptable and affordable. No silver bullet. Develop in a responsible way. Too much of it is soundbite – that simplifies what’s not a simple problem. It’s not gas versus coal. [Although, that appeared to be one of his chief arguments - that it is gas versus coal - and this is why we should play nice with Shell.]

    1. Economy : About $1.5 to $2 trillion of new money must be invested in the energy industry each year, and this must be sustained until 2035 and beyond. A [few percent] of the world economy. It’s going to take time to make [massive changes]. [...] “Better Growth : Better Climate” a report on “The New Climate Economy” by the Global Commission on the Economy and Climate, the Calderon Report. [The world invested] $700 billion last year on oil and gas [or rather, $1 trillion] and $220 – $230 billion on wind power and solar power. The Calderon Report showed that 70% of energy is urban. $6 trillion is being spent on urban infrastructure [each year]. $90 trillion is available. [Urban settings are] more compact, more connected, there’s public transport, [can build in efficiencies] as well as reducing final energy need. Land Use is the other important area – huge impact on carbon emissions. Urbanisation enables efficiency in distributed generation [Combined Heat and Power (CHP)], [local grids]. Eye-popping costs, but the money will be spent anyway. If it’s done right it will [significantly] reduce [carbon emissions and energy demand]…

    2. Technology Development : Governments are very bad at picking winners. Better to get the right incentives in and let the market players decide [optimisation]. They can intervene, for example by [supporting] Research and Development. But don’t specify the means to an end…The best solution is a strong predictable carbon price, at $40 a tonne or more or it won’t make any difference. We prefer Cap and Trade. Taxes don’t actually decrease carbon [emissions] but fundamentally add cost to the consumer. As oil prices rose [in 2008 - 2009] North Americans went to smaller cars…Drivers [set] their behaviour from [fuel] prices…

    [An important point to note here : one of the reasons why Americans used less motor oil during the "Derivatives Bubble" recession between 2006 and 2010 was because the economy was shot, so people lost their employment, and/or their homes and there was mass migration, so of course there was less commuter driving, less salesman driving, less business driving. This wasn't just a response to higher oil prices, because the peak in driving miles happened before the main spike in oil prices. In addition, not much of the American fleet of cars overturned in this period, so Americans didn't go to smaller cars as an adaptation response to high oil prices. They probably turned to smaller cars when buying new cars because they were cheaper. I think Simon Henry is rather mistaken on this. ]

    [Simon Henry] …As regards the Carbon Bubble : 65% of the Unburnable fossil fuels to meet the 2 degrees [Celsius] target is coal. People would stuggle to name the top five coal companies [although they find it easy to name the top five oil and gas companies]. Bearing in mind that you have to [continue to] transport stuff [you are going to need oil for some time to come.] Dealing with coal is the best way of moving forward. Coal is used for electricity – but there are better ways to make electricity – petcoke [petroleum coke - a residue from processing heavy and unconventional crude oil] for example…

    [The climate change impact of burning (or gasifying) petroleum coke for power generation is possibly worse than burning (or gasifying) hard coal (anthracite), especially if the pet coke is sourced from tar sands, as emissions are made in the production of the pet coke before it even gets combusted.]

    [Simon Henry] …It will take us 30 years to get away entirely from coal. Even if we used all the oil and gas, the 2 degrees [Celsius] target is still possible…

    3. Policy : We tested this with the Dutch Government recently – need to create an honest dialogue for a long-term perspective. Demand for energy needs to change. It’s not about supply…

    [Again, some "hear hears" from the room from the Peak Oil and Peak Natural Gas deniers]

    [Simon Henry] …it’s about demand. Our personal wish for [private] transport. [Not good to be] pushing the cost onto the big bad energy companies and their shareholders. It’s taxes or prices. [Politicians] must start to think of their children and not the next election…

    …On targets and subsidies : India, Indonesia, Brazil [...] to move on fossil fuel subsidies – can’t break the Laws of Economics forever. If our American friends drove the same cars we do, they’d reduce their oil consumption equivalent to all of the shale [Shale Gas ? Or Shale Oil ?]… Targets are an emotive issue when trying to get agreement from 190 countries. Only a few players that really matter : USA, China, EU, India – close to 70% of current emissions and maybe more in future. The EPA [Environmental Protection Agency in the United States of America] [announcement] on power emissions. China responded in 24 hours. The EU target on 27% renewables is not [country-specific, uniform across-the-board]. Last week APEC US deal with China on emissions. They switched everything off [and banned traffic] and people saw blue sky. Coal with CCS [Carbon Capture and Storage] we see as a good idea. We would hope for a multi-party commitment [from the United Nations climate talks], but [shows doubt]… To close : a couple of words on Shell – have to do that. We have only 2% [of the energy market], but we [hope we] can punch above our weight [in policy discussions]. We’re now beginning to establish gas as a transport fuel. Brazil – low carbon [bio]fuels. Three large CCS projects in Canada, EU… We need to look at our own energy use – pretty trivial, but [also] look at helping our customers look at theirs. Working with the DRC [China]. Only by including companies such as ourselves in [climate and energy policy] debate can we get the [global deal] we aspire to…

    [...]

    [Question from the table, Ed Wells (?), HSBC] : Green Bonds : how can they provide some of the finance [for climate change mitigation and adaptation] ? The first Renminbi denominated Green Bond from [?]. China has committed to non-fossil fuels. The G20 has just agreed the structure on infrastructure – important – not just for jobs and growth – parallel needs on climate change. [Us at HSBC...] Are people as excited about Green Bonds as we are ?

    [Stephen Tindale] Yes.

    [Question from the table, Anthony Cary, Commonwealth Scholarship Commission] …The key seems to be pricing carbon into the economy. You said you preferred Cap and Trade. I used to but despite reform the EU Emissions Trading Scheme (EU ETS) – [failures and] gaming the system. Tax seems to be a much more solid basis.

    [Simon Henry] [The problem with the ETS] too many credits and too many exemptions. Get rid of the exemptions. Bank reserve of credits to push the price up. Degress the number of credits [traded]. Tax : if people can afford it, they pay the tax, doesn’t stop emissions. In the US, no consumption tax, they are very sensitive to the oil price going up and down – 2 to 3 million barrels a day [swing] on 16 million barrels a day. All the political impact on the US from shale could be done in the same way on efficiency [fuel standards and smaller cars]. Green Bonds are not something on top of – investment should be financed by Green Bonds, but investment is already being done today – better to get policy right and then all investment directed.

    [...]

    [Question from the table, Kirsten Gogan, Energy for Humanity] The role of nuclear power. By 2050, China will have 500 gigawatts (GW) of nuclear power. Electricity is key. Particularly coal. Germany is building new coal as removing nuclear…

    [My internal response] It’s at this point that my ability to swallow myths was lost. I felt like shouting, politely, across the table : ACTUALLY KIRSTEN, YOU, AND A LOT OF OTHER PEOPLE IN THE ROOM ARE JUST PLAIN WRONG ON GERMANY AND COAL.

    “Germany coal power generation at 10-year low in August”, 9th September 2014

    And the only new coal-fired plants being built are those that were planned up to five years ago. No new coal-fired capacity is now being agreed.

    [Kirsten Gogan]…German minister saying in public that you can’t phase out nuclear and coal at the same time. Nuclear is not included in that conversation. Need to work on policy to scale up nuclear to replace coal. Would it be useful to have a clear sectoral target on decarbonising – 100% on electricity ?

    [Stephen Tindale] Electricity is the least difficult of the energy sectors to decarbonise. Therefore the focus should be on electricity. If a target would help (I’m not a fan) nuclear certainly needs to be a part of the discussions. Angela Merkel post-Fukushima has been crazy, in my opinion. If want to boost renewable energy, nuclear power will take subsidies away from that. But targets for renewable energy is the wrong objective.. If the target is keeping the climate stable then it’s worth subsidising nuclear. Subsidising is the wrong word – “risk reduction”.

    [Simon Henry] If carbon was properly priced, nuclear would become economic by definition…

    [My internal response] NO IT WOULDN’T. A LOT OF NUCLEAR CONSTRUCTION AND DECOMMISSIONING AND SPENT FUEL PROCESSING REQUIRES CARBON-BASED ENERGY.

    [Simon Henry] …Basically, all German coal is exempted (from the EU ETS). If you have a proper market-based system then the right things will happen. The EU – hypocrisy at country level. Only [a couple of percent] of global emissions. The EU would matter if it was less hypocritical. China are more rational – long-term thinking. We worked with the DRC. Six differing carbon Cap and Trade schemes in operation to find the one that works best. They are effectively supporting renewable energy – add 15 GW each of wind and solar last year. They don’t listen to NIMBYs [they also build in the desert]. NIMBYism [reserved for] coal – because coal was built close to cities. [Relationship to Russia] – gas replacing coal. Not an accident. Five year plan. They believe in all solutions. Preferably Made in China so we can export to the rest of the world. [Their plans are for a range of aims] not just climate.

    [...]
    [...]

    [Simon Henry] [in answer to a question about the City of London] We don’t rely on them to support our activities [my job security depends on a good relationship with them]]. We have to be successful first and develop [technological opportunities] [versus being weakened by taxes]. They can support change in technology. Financing coal may well be new money. Why should the City fund new coal investments ?

    [Question from the table, asking about the "coal is 70% of the problem" message from Simon Henry] When you talk to the City investors, do you take the same message to the City ?

    [Simon Henry] How much of 2.7 trillion tonnes of “Unburnable Carbon” is coal, oil and gas ? Two thirds of carbon reserves is coal. [For economic growth and] transport you need high density liquid fuels. Could make from coal [but the emissions impact would be high]. We need civil society to have a more serious [understanding] of the challenges.

    After the discussion, I asked Simon Henry to clarify his words about the City of London.

    [Simon Henry] We don’t use the City as a source of capital. 90% is equity finance. We don’t go to the market to raise equity. For every dollar of profit, we invest 75 cents, and pay out 25 cents as dividend to our shareholders. Reduces [problems] if we can show we can reinvest. [ $12 billion a year is dividend. ]

    I asked if E&P [Exploration and Production] is working – if there are good returns on investment securing new reserves of fossil fuels – I know that the company aims for a 10 or 11 year Reserves to Production ratio (R/P) to ensure shareholder confidence.

    Simon Henry mentioned the price of oil. I asked if the oil price was the only determinant on the return on investment in new E&P ?

    [Simon Henry] If the oil price is $90 a barrel, that’s good. At $100 a barrel or $120 a barrel [there's a much larger profit]. Our aim is to ensure we can survive at $70 a barrel. [On exploration] we still have a lot of things in play – not known if they are working yet… Going into the Arctic [At which point I said I hope we are not going into the Arctic]… [We are getting returns] Upstream is fine [supply of gas and oil]. Deepwater is fine. Big LNG [Liquefied Natural Gas] is fine. Shale is a challenge. Heavy Oil returns could be better – profitable, but… [On new E&P] Iraq, X-stan, [work in progress]. Downstream [refinery] has challenges on return. Future focus – gas and deepwater. [On profitability of investment - ] “Gas is fine. Deepwater is fine.”

    [My summary] So, in summary, I think all of this means that Shell believes that Cap and Trade is the way to control carbon, and that the Cap and Trade cost would be borne by their customers (in the form of higher bills for energy because of the costs of buying carbon credits), so their business will not be affected. Although a Cap and Trade market could possibly cap their own market and growth as the sales envelope for carbon would be fixed, since Shell are moving into lower carbon fuels – principally Natural Gas, their own business still has room for growth. They therefore support Cap and Trade because they believe it will not affect them. WHAT THEY DON’T APPEAR TO WANT PEOPLE TO ASK IS IF A CAP AND TRADE SYSTEM WILL ACTUALLY BE EFFECTIVE IN CURBING CARBON DIOXIDE EMISSIONS. They want to be at the negotiating table. They believe that they’re not the problem – coal is. They believe that the world will continue to need high energy-dense oil for transport for some time to come. It doesn’t matter if the oil market gets constrained by natural limits to expansion because they have gas to expand with. They don’t see a problem with E&P so they believe they can keep up their R/P and stay profitable and share prices can continue to rise. As long as the oil price stays above $70 a barrel, they’re OK.

    However, there was a hint in what Simon Henry talked about that all is not completely well in Petro-land.

    a. Downstream profit warning

    Almost in passing, Simon Henry admitted that downstream is potentially a challenge for maintaining returns on investment and profits. Downstream is petrorefinery and sales of the products. He didn’t say which end of the downstream was the issue, but oil consumption has recovered from the recent Big Dip recession, so that can’t be his problem – it must be in petrorefinery. There are a number of new regulations about fuel standards that are going to be more expensive to meet in terms of petroleum refinery – and the chemistry profiles of crude oils are changing over time – so that could also impact refinery costs.

    b. Carbon disposal problem

    The changing profile of crude oils being used for petrorefinery is bound to cause an excess of carbon to appear in material flows – and Simon Henry’s brief mention of petcoke is more significant than it may first appear. In future there may be way too much carbon to dispose of (petcoke is mostly carbon rejected by thermal processes to make fuels), and if Shell’s plan is to burn petcoke to make power as a solution to dispose of this carbon, then the carbon dioxide emissions profile of refineries is going to rise significantly… where’s the carbon responsiblity in that ?

  • UKERC : Gas by Design

    Posted on November 12th, 2014 Jo No comments

    Today I attended a meeting of minds.

    It’s clear to me that the near-term and mid-term future for energy in the United Kingdom and the European Union will best be centred on Natural Gas and Renewable Electricity, and now the UK Energy Research Centre has modelled essentially the same scenario. This can become a common narrative amongst all parties – the policy people, the economists, the technologists, the non-governmental groups, as long as some key long-term de-carbonisation and energy security objectives are built into the plan.

    The researchers wanted to emphasise from their report that the use of Natural Gas should not be a default option in the case that other strategies fail – they want to see a planned transition to a de-carbonised energy system using Natural Gas by design, as a bridge in that transition. Most of the people in the room found they could largely agree with this. Me, too. My only caveat was that when the researchers spoke about Gas-CCS – Natural Gas-fired power generation with Carbon Capture and Storage attached, my choice would be Gas-CCU – Natural Gas-fired power generation with Carbon Capture and Re-utilisation – carbon recycling – which will eventually lead to much lower emissions gas supply at source.

    What follows is a transcription of my poorly-written notes at the meeting, so you cannot accept them as verbatim.

    Jim Watson, UKERC = [JW]
    Christophe McGlade, University College London (UCL) = [CM]
    Mike Bradshaw, Warwick Business School = [MB]

    [JW] Thanks to Matt Aylott. Live Tweeting #FutureOfGas. Clearly gas is very very important. It’s never out of the news. The media all want to talk about fracking… If we want to meet the 2 degrees Celsius target of the United Nations Framework Convention on Climate Change, how much can gas be a part of this ? Is Natural Gas a bridge – how long a ride will that gas bridge be ?

    [CM] Gas as a bridge ? There is healthy debate about the Natural Gas contribution to climate change [via the carbon dioxide emissions from burning Natural Gas, and also about how much less in emissions there is from burning Natural Gas compared to burning coal]. The IPCC said that “fuel switching” from coal to gas would offer emissions benefits, but some research, notably McJeon et al. (2014) made statements that switching to Natural Gas cannot confer emissions benefits. Until recently, there have not been many disaggregated assessments on gas as a bridge. We have used TIAM-UCL. The world is divided into 16 regions. The “climate module” seeks to constrain the global temperature rise to 2 degrees Celsius. One of the outcomes from our model was that export volumes [from all countries] would be severaly impacted by maintaining the price indexation between oil and gas. [Reading from chart on the screen : exports would peak in 2040s]. Another outcome was that gas consumption is not radically affected by different gas market structures. However, the over indexation to the oil price may destroy gas export markets. Total exports of natural gas are higher under the 2 degrees Celsius scenario compared to the 4 degrees Celsius scenario – particularly LNG [Liquefied Natural Gas]. A global climate deal will support gas exports. There will be a higher gas consumption under a 2 degrees Celsius deal compared to unconstrained scenario [leading to a 4 degrees Celsius global temperature rise]. The results of our modelling indicate that gas acts as a bridge fuel out to 2035 [?] in both absolute and relative terms. There is 15% greater gas consumption in the 2 degrees Celsius global warming scenario than in the 4 degrees Celsius global warming scenario. Part of the reason is that under the 4 degrees Celsius scenario, Compressed Natural Gas vehicles are popular, but a lot less useful under the 2 degrees Celsius scenario [where hydrogen and other fuels are brought into play].

    There are multiple caveats on these outcomes. The bridging period is strictly time-limited. Some sectors need to sharply reduce consumption [such as building heating by Natural Gas boilers, which can be achieved by mass insulation projects]. Coal must be curtailed, but coal-for-gas substitution alone is not sufficient. Need a convincing narrative about how coal can be curtailed. In an absence of a global binding climate deal we will get consumption increases in both coal and gas. In the model, gas is offsetting 15% of coal by 2020, and 85% by 2030. With Carbon Capture and Storage (CCS), gas’s role is drastically reduced – after 2025 dropping by 2% a year [of permitted gas use]. Not all regions of the world can use gas as a bridge. [Reading from the chart : with CCS, gas is a strong bridging fuel in the China, EU, India, Japan and South Korea regions, but without CCS, gas is only strong in China. With CCS, gas's bridging role is good in Australasia, ODA presumably "Offical Development Assistance" countries and USA. Without CCS, gas is good for Africa, Australasia, EU, India, Japan, South Korea, ODA and USA.]

    In the UK, despite the current reliance on coal, there is little scope to use it as a transition fuel. Gas is unlikely to be removed from UK energy system by 2050.

    [Question from the floor] The logic of gas price indexation with the oil price ?

    [CM] If maintain oil indexation, exports will reduce as countries turn more towards indigenous at-home production of gas for their domestic demand. This would not be completely counter-balanced by higher oil and therefore gas prices, which should stimulate more exports.

    [Point from the floor] This assumes logical behaviour…

    [Question from the floor] [Question about Carbon Capture and Storage (CCS)]

    [CM] The model does anticipate more CCS – which permits some extra coal consumption [at the end of the modelling period]. Gas-CCS [gas-fired power generation with CCS attached] is always going to generate less emissions than coal-CCS [coal-fired power generation with CCS attached] – so the model prefers gas-CCS.

    [to be continued...]

  • Contracts for Difference Risks

    Posted on November 10th, 2014 Jo No comments

    The UK Government’s Electricity Market Reform (EMR) is a moving feast, or “trough”, if you are of the opinion that any state subsidy is a subsidy too far. My, how people complained and complained about the Renewables Obligation (RO), perhaps one of the world’s best stimuli for pushing forward wind power development. Yes, some rich engineering firms and rich landowners got richer on the back of the RO. What do you expect ? The wealthy always leverage their capital. But at least the RO has produced some exceptional wind power generation numbers. In the period 2017 to 2018 however, the RO is set to be staged down and replaced by several elements in the EMR, most notably, the CfD or Contracts for Difference, otherwise affectionately and quite inaccurately described as the FiT CfD – Feed-in Tariff Contracts for Difference.

    The basic plan for the CfD is to guarantee to new electricity generators, or old generators building new plant, a definite price on power sold, in order to ensure they can get debt and equity invested in their projects. However, this is a huge state intervention and potentially entirely scuppers the efforts to create a market in electricity. More dangerously, although the CfD is supposed to encourage the freeing up of capital to support new energy investment, it might fail in that, at least in the short-term, and it may even fail to make capital cheaper. This is due to the new kinds of risk associated with the CfD – particularly because of the long lead time from auction to allocation, and the cap on allocations. The CfD is designed to create project failures, it seems.

    I recently attended an event hosted at the Queen Elizabeth II Conference Centre in Westminster in London, called Energy4PowerLive 2014 and managed by GMP. The first session I attended was in the RenewablesLive 2014 stream, and featured a panel discussion between Andrew Buglass from Royal Bank of Scotland (RBS), Philip Bazin of Triodos and Steve Hunter, Investment Director of Low Carbon.

    What follows is not verbatim, and is based on my handwritten notes, and my handwriting is appalling, so that sometimes, even I cannot read it.

    [ Andrew Buglass, Managing Director and Head of Energy, Royal Bank of Scotland (RBS) : "Financing CfD projects - initial impressions from a lender" ]

    [You may have an interest in the actions of] RBS [heckle from the audience, "We own it !"]. We built our first renewable energy project in 1991 – an onshore wind turbine. Now we [have helped] finance 9 gigawatts of renewable energy. I have 15 minutes – only possible to scratch the surface of CfDs [Contracts for Difference - a subsidy under the UK Government Department of Energy and Climate Change (DECC) Electricity Market Reform (EMR))]. The EMR journey has been a very long one – four years. We have offered advice to the government – about the bankability of the policy. DECC have a different policy perspective – they are going over here [in this direction] whether or not… [Their aim was to] encourage new sources of investment debt and equity, [currently] not here in the UK. [...] Matt Hancock, new [energy] minister [...] £115 [billion ?] [...]. Half of £100 billion needed by end of decade. The EMR framework is [intended] to bring in new sources of debt and equity – its ability to track that into the market. I’m not going to review whether the EMR will be successful. It’s a “Nought to Sixty” question [reference to how quickly it takes for cars to accelerate], how quickly is capital going to be delivered [getting up and running]. There will be a big step up in terms of work [...] how are different counterparties [countersigning parties in the CfD contracts] responding ? Now is the time to deliver on the [practical economics] for those to decide whether to invest or not. Need to engage the ratings agencies – getting debt from bond markets – to convince Standard and Poor etc to convince [...] The first projects are going to take a long time – cutting their teeth. Cost, availability, terms of debt. The risks that will [come into play] :

    A. OFFTAKE RISK – BASIS RISK
    [At the start of the EMR discussions] we highlighted that small generators found it hard to get PPAS [Power Purchase Agreements]. With the CfDs “lender of last resort” “offtaker of last resort” [...] may support less strong balance sheets for PPAs. Great – because we need a lot more liquidity in PPAs. [However] the basis risks on the strike price compared to the reference price – if this is [changed, different] – a concern about whether they might be matching in the middle [and so conferring no benefit to having arranged the CfD]].

    B. WHOLESALE PRICE RISK
    In offshore wind – wild – the economics of generating. In onshore wind power, the wholesale price has less of a way to fall [because of many years of learning and maturing of supply chains etc].

    C. INDEX INFLATION RISK
    The CfDs are to be linked to CPI [Consumer Price Index] rather than the RPI [Retail Price Index]. This may seem like a not very important difference – but at the moment you cannot hedge against the CPI. [...] we recommend RPI – linked to lock in. Can’t do that with CPI.

    D. FORCE MAJEURE RISK
    [Risk] especially during construction. The CfD does not pick up during construction – need to see [how this pans out].

    E. CHANGE IN LAW (CIL) RISK
    Twenty pages of the CIL clause – doesn’t seem to give you much protection – what is a “foreseeable change in law” ? Unless you’re a big utility you will not have been tracking [policy and legislation] for the last ten years. Big risk ? In the RO [Renewables Obligation], CIL risk was set to the offtaker. Law firms are going to really agonise [over this in the CfD].

    F. LIFETIME MANAGEMENT RISK
    Risk relating to managing CfD contract during its lifetime. There is a risk from the termination of a CfD – more than in the RO. May need to do more work to keep lender involved to manage termination risk.

    Leads to a gloomy approach – in banking paying back on time is good – anything else is bad.

    The EMR has cross-party support, but this is the most interventionist approach since the CEGB (Central Electricity Generating Board market). The politicians are saying “no, no, we’d never change anything” – from three parties. It would help if there were a public statement on that (I get calls about “too many turbines”). Initial projects will probably take longer to start than [under] RO. Collectively fund pragmatic solutions.

    [ Philip Bazin, Head Project Finance Team, Triodos Bank : "Financing CfD projects - initial impressions from a different bank" ]

    Triodos was established in 1980, and started in the UK in 1995 with the acquisition of Mercury [...] Our portfolio in the UK is still relatively small. Over a third of the £500 million is in renewable energy. Our investment [...] basis of positive social and environmental outcomes. [...] Core lending of £1 to £15 million finance [...] construction [...] and up to 15 years [on loan repayment]. Smaller developers – best fit. The bank is almost becoming part of the supply chain in the bidding process. Give a forward fixed rate of interest. We’ve had to think about how we provide this derivative. Discussions with PPA providers. Feeling that most a lot of new players. The whole rush around CfD was quite unhelpful. We haven’t been engaging with any bidders for this round [of CfDs]. Our customers are small generators or community groups. Smaller projects are risk-averse and would [probably] use the RO instead of the CfD [for now]. These markets are going to find this new structure [offputting]. Not ideal if you’re a professional investor. [Andrew has explained the risks well] The biggest one for me is the risk of failing to achieve your LONGSTOP DATE [failure to start electricity generation by an agreed date], which would risk a termination [of the CfD subsidy agreement. This would destroy the economics of the whole project and therefore the investment]. What protections do you have as a sub-contractor ? Another point is about wayleaves. [If you can't get your wayleaves in time...] Fundamentally, the [CfD] mechanism is bankable. [However] in trying to fix a problem it [may] have created a total mess. Don’t know if more capital will be going into projects.

    [ Steve Hunter, Investment Director, Low Carbon : "CfDs from an equity perspective" ]

    [Our business is in] Solar PV, Onshore wind, CSP in the Mediterranean area. We get there when project developer is doing land deals. We have a cradle-to-grave perspective. Land planning and grid access are major risks [and the guarantee of biomass feedstock for a biomass project]. The WHOLESALE POWER PRICE RISK – someone needs to take it. Your view depends on your equity horizon. For us, the two big changes [from the RO] are the introduction of the ALLOCATION RISK and the removal of the power price risk. Don’t know the budget for allocation. Only know one month before the [CfD] auction ! The government has not released [a budget] for “emerging technology”. Timing : doesn’t really work for solar. The idea of CfD versus RO for solar will not work. [It's all down to the project lifecycle] – you could be waiting 14 or 15 months for a CfD allocation after making a bid, but grid connection deals are now closing in [at around 12 months - if you do not take up your grid connection permission, you will lose it]. At the moment there is no competition between technologies. Is there enough CfD set aside for offshore wind projects ? Yes. If CfDs are intended to deliver technology-neutral [energy mix] – it doesn’t yet. The REFERENCE PRICES for me are the significant risk. This is entirely new for CfDs. Because the CfD intended to bring lower cost of capital – there is an implication for return [on investment] to the investor. Government will set [the reference prices]. Government just released [for some technologies] – decreased [in a forward period]. The Government may have a very different view on forward power prices… These reference prices come out of the air [there seems to be no basis for them]. When is final not final ? When it comes from DECC. If consider 2018/2019 September, the tightest budget, you could afford 1,000 MW of offshore, [if there is a change in the reference price] you could only afford 700 MW. In the TEC Register from National Grid – download this – there is 1,000 to 1,200 MG in the pipeline onshore. If I was a wind developer with [grid] connection dates after the end of the RO, you can bet I’ve already bid [for a CfD allocation] already. The political risk of changing the RO. May be a small amount of solar – but anyway it’s too expensive. If the CfD is only to support onshore wind power – is it achieving its goals ? There will almost certainly be some modification [to the CfD or the reference prices ?]. Transparency ? Oversupply ? [Oversight ?] of setting reference prices. Increase in frequency of the CfD auction would be helpful. Would give developers more time to bid. Technologies like solar PV that could deliver large savings… If no large solar is built… They could put a minimum in [for the subsidy allocated to each technology] – more positive. CfD represents long-term support. If the industry drives down the cost of renewable energy, CfD gives us an infill fix on revenue. It will give that certainty to get debt [and equity] in. It may be the support mechanism we need in the long-term. It could be the support mechanism we need for renewable energy…

  • European Referendum : Corpse Factory

    Posted on November 9th, 2014 Jo No comments

    So I was in a meeting on a dateless date, at an organisation with a nameless name, with some other unidentifiable people in the room with me. For some reason I had been invited, I cannot think why. Ah, yes, I can. I was invited to attend because, apparently, I am a “campaigner”. I am, allegedly, somebody who buys into the notion that communications should serve the purpose of directing public attention and support towards a particular outcome, decided in advance by a political elite. And it seems, if I believe something is right, and that a message needs communicating, I will take action, but never invoice, because I am a believer. Well let me tell you right here and now, I am not that person. I may have that reputation, but really, I despise propaganda : the deliberate formation of a murmur of Tweet starlings, or the collective wall-to-wall newspaper coverage of the same story, the scandal story hauled out to scare the horses and herd them to the salt water shore, the faux narrative of collective political or social will for change.

    I want to believe that even though I am occasionally paid to communicate a story (but most often not), that my narrative, and importantly my agenda, is my own. I will not be co-opted. I shall not be defined by storytelling, I shall not be paid for spreading information – for if I were to be telling money-backed tales, I may end up peddling lies. And I do not want lies to be spoken. I am an ontologist. My ontology is :-

    SO
    IT IS
    AS
    IT IS.

    and not

    IT IS
    AS
    IT IS,
    SO…

    There is no “therefore” in what I write. When I say “should”, like, “we should adopt renewable energy”, it’s your choice as to whether you agree with me. You shouldn’t read anything and be swayed or directed, except by the force of reason based on evidence. I am the photographer, the recorder, but not the public relations consultant. And I am especially not an unsalaried volunteer. I paint the future using my own perspective, my own understanding, my own research, my own best judgement, but I am not telling people what to think. Although I go slightly beyond merely noting and analysing what is happening, to articulate possible futures, I am not a persuader.

    I do not want to write the script for the actions of the readers or listeners. I do not want to precipitate a revolution, or dehydrate the horses before leading them to the river bank. I want to describe rather than proscribe or prescribe. I want to scribe the way I see things, I do not do it in order to create waves or push buttons or light beacons. The facts should speak for themselves, and if anybody consumes my communication, they should be free to act as they feel fit, or suits. I am not a paid-for, paid-up, in-the-pocket campaigner. I am not spun round other peoples’ fingers like a talking puppet. I am a free person.

    So, there I was in this meeting, and the people in the room were discussing an event that is likely to take place. It appears from some analysis that the next British Government could well be another Coalition Government, with the Conservative Party having only a shaving of a majority for rule. And when they have crossed the i’s and dotted the t’s and formed a currently impossible political marriage, which I’m guessing will involve the Green Party as well as the Liberal Democrats, then they will need to live up to their promise to hold a referendum on British participation in the Grand European Experiment – economic union with other European countries.

    But nobody talks about Europe. Except to complain. In the meeting I attended, the hosts of the meeting were consulting for ways to highlight the Europe Question, and to give it a pro-Union light.

    For me, it’s facile. The United Kingdom of Great Britain and Northern Ireland is just a bunch of mediocre-sized islands off the coast of the European continent. Something like 80% of UK trade is with European countries, because Europe is our gateway to the rest of the global market, and you always do the most trade with your neighbours. It’s natural. Can anybody seriously suggest we ditch the Common Market – the agreements that European countries have come to to ensure common standards of goods and services, common terms and conditions of trade and common legal processes regulating trade ? So we want to reserve some kind of sovereignty over some kinds of decisions ? Why ? The UK is heavily involved in the central European institutions and governance bodies. We have massive input. We vote for MEPs. Why should things not go our way ? And even if things don’t go perfectly our way, will the negotiated compromises be so bad ? Subsidiarity – making decisions at the lowest/best/most appropriate level of administration – that’s still going to keep a lot of British control over British affairs. Surely the UK suffers a greater risk of interference from any pan-Atlantic trade deal that it does from Europe ?

    The UK have made commitments. Our Parliament has agreed that we need to work on climate change, social justice and economic stability. We have implicitly agreed that to address climate change we need Energy Change and environmental regulation; to achieve social justice we need human rights, justice, health, education and a benefits system; and for economic stability we need economic stimuli – for example, in national infrastructure projects. In terms of climate change and Energy Change there is so much we need to do. If we stay in Europe, all of this will be so much easier. Within the European project for energy market harmonisation is the work on standards to achieve gas and electricity grid harmonisation. The improvement and augmenting of interconnections between countries, and the provision of wider energy storage, will enable the balanced use of renewable energy. Governments need to create incentives for deploying renewable energy. Governments need to create mechanisms to leverage and facilitate renewable energy deployment. Without Europe, outwith Europe, it will cost us more, and be more complex. Within Europe, it will be easier.

    So, in the meeting I attended, I put forward my vision : if the UK stays in Europe, it will be easier to handle problems of energy – improving and replacing infrastructure and plant, co-ordinating the uptake of new renewable energy technologies and dealing with emerging energy security issues. Why, the North Sea, as everybody knows, is draining dry, and we can only build certain levels of relationship with countries outside the European Union, such as Russia. If the UK left the EU, the EU would be competitors with the UK for Russian Natural Gas, for example. I said I thought that energy security was a good thing to explain to people and a good reason to raise support for UK’s continued participation in Europe.

    So, somebody else in the meeting, who shall remain faceless and nameless, poured very cold water on this idea. They seemed to disbelieve that the UK faces risks to energy security. Instead, they suggested that the pro-Europe argument should be based on how the UK can “keep our place at the table”. How out of touch can one get, I thought to myself ? This kind of patrician argument is not going to wash. Appealing to some non-existent pride in the UK’s continued role as stakeholder in the European project is going to go down like a lead balloon. It’s a vote loser, for sure.

    What most people care about first is money. Their money. Any appeal to their pockets is going to help. We live in tough times – thanks to Government austerity policy – and we still cannot get a handle on public borrowing and spending. Because of the Government’s austerity policy.

    So how about we cast it like this : your energy is going to get much more expensive if the UK abandons the European community of nations. Plus, your lights could genuinely go out, unless you, the people, either as taxpayers or billpayers, fork out for new energy investments that the energy companies haven’t made for 20 years. Because of privatisation. Without taking part in the European energy market harmonisation, and the European development of new and renewable energy infrastructure, plant and networks, your bills could significantly rise/spiral out of control. If European companies were required to sell energy assets back to the UK, because the UK pulled out of Europe, we would be in a very fine mess indeed. Do you really want this kind of chaos ? Energy policy in the UK is already bad enough.

    The facts are available to those who search : British production of oil and gas from the North Sea is declining at something like 6% a year. The UK became a net energy importer between 2004 and 2006 (depending on how you define it). The Netherlands will become a net Natural Gas importer in the 2020s. Norway’s Natural Gas will reach a peak some time in the 2020s. It’s no good thinking that because the UK is a “gas hub”, and that British finance can currently spin up gas imports to the UK, that this situation is going to remain true. Within 10 to 15 years, I think that the UK will face significant competition for Natural Gas supplies with other European countries. Better to be in the debating chamber, surely, rather than scratching at the wind-and-rain-splattered window from outside ? So can the UK forge a gas alliance with countries outside the European Union, and apart from Norway ? A gas import alliance that sticks ? And that isn’t demolished by competition from the rest of the European Union for gas supplies that come through pipes sitting in European Union territory ? OK, the UK might want to leave full European Union membership, and join Norway in the European Economic Area, but will this guarantee beneficial import status for Natural Gas from countries that supply the full members of the European Community ?

    I said, instead of trying to talk about direct opposites – either Inside Europe or Outside Europe – let’s talk about how things can be helped by wider co-operation. The European Union was founded on energy treaties – coal and nuclear energy (and steel), and now Europe needs to move to a union forged on renewable power and Natural Gas – and later Renewable Gas – and it’s going to be so much easier to do if the UK stays at the party.

    The North Sea needs re-developing. Not for oil, but for wind power. This is going to happen best with full cross-border co-operation. Already, the UK has agreed to play a large part in the “North Sea Offshore Grid” wind power project in league with Ireland, Germany, Denmark, Sweden, The Netherlands, Belgium and France. And Luxembourg, strangely, although it doesn’t have a coast. Unlike new nuclear power, which could be decades in construction, offshore and onshore wind in Europe can be quick-build. If you want new power, you pick wind and solar. And, despite policy fumbles, this is happening. Actually, in the end, who really cares about subsidies for renewable energy, when the most capital-heavy organisations in the world start backing renewable power ? In some ways, I don’t care who brings me low carbon energy, and I don’t care if I have to pay for it through my tax or my bills, I just want it to happen. OK, offshore wind power is for the big boys, and you’re never going to get a diversity of suppliers with this project, and the dreams of decentralised energy are vapours, whisked away by giant engineering firms, but at least renewable energy is going to happen. One day people will realise that for the newspapers to rehearse the arguments of High Net Worth Individuals, and for sheep-like energy ministers to complain about onshore wind power and solar farms, is just a way to keep small electricity generators out of the energy markets, and allow the incumbent energy players to keep making profits. But when the need for a multiplicity of small energy installations becomes critical, I think this tune will change.

    I can see all this. But, because I am not a spin meister, or spin meistress, or a campaigner, I’m not going to be crafting fine messages to share with my networks on this particular subject. I did start (see below), but then I thought better of it. I dislike the use of social media, web logging and journalism to push an agenda. The trouble is, I know that the people who are vehemently against the European endeavour have so many trigger arguments tested and ready to deploy, such as : immigration, regulations, budgetary demands. None of these stand up to scutiny, but they are very easy props on which to deploy Corpse Factory scares and scandals, up there with the War on Terror. The pro-European segment of the population always stays so silent. If there were to be a Referendum on Europe today, I can pretty much guarantee a kneejerk exit. The British public act collectively by reflex. They never re-analyse their position. They mob, gang and plunder.

    I don’t think pro-Europe organisations know how to sell Europe. But they shouldn’t need to “sell” Europe. European membership should be an obvious best choice. So why should I try to talk up Europe ? I couldn’t have any influence, as one lone voice, against the Daily Mails, Daily Expresses and Daily Telegraphs of this world. And anyway, it’s not really my fight to fight. I don’t have a job title that reads “arch propagandist”. I am not that person. It does not become me. I prefer straight-talking, not mind-bending.

    I won’t get invited back. That’s just fine. I am not a volunteer campaigner. I’m not a political pusher. I’ve only played the role of “evangelist” on climate change, renewable energy and good policy because sometimes there is little else I can think of that might help or make a difference. But I don’t have any influence. And I don’t want any. I am just going to continue telling it the way I see it. Giving my perspective. I cannot guarantee any outcomes. And anyway, I prefer democratic engagement over salesmanship. Don’t ask me to sell your ideas, your policies, your projections. I don’t want to.

    Full membership of the European Union is the logical option for the United Kingdom, no matter how many tired dead donkey corpses the rabid tabloid media keep digging up to appall us all. Sooner or later, we also need to consider joining the Euro currency, and I predict we will, but I’m not your convincer on that argument, either.




    “What has Europe ever done for us ?”

    Common Climate : Common Cause : Common Market

    On climate change, the United Kingdom has secured the Climate Change Act, legislation with broad-based support across all political parties. The UK shares the concerns of other European countries about the potential risks and impacts from climate change in our geographical region. Society-level change in response to climate change includes energy change – changing the sources and use of energy – and changing policies for land use to include planting forests and energy crops. Within the European Community, the UK has worked to secure region-wide legislation on renewable energy, energy efficiency, waste control and air quality. All of these contribute to the response to climate change, and have developed action on climate change into a common cause. In addition to regulatory change, the European Community is seeking to develop trading mechanisms to enable carbon dioxide emissions control, and it working to develop a common market in carbon.

    Common Future : Common Purpose : Common Interest

    Common Values : Common Opportunities : Common Voice

    Common Security : Common Goals : Common Networks

    Common Infrastructure : Common Society : Common Protection

    Common Standards : Common Framework : Common Development

  • Who Likes Beer ?

    Posted on May 30th, 2014 Jo No comments

    First, Christian Figueres speaks at St Paul’s Cathedral, and then there’s a debate, and questions, and somebody says Capitalism needs to be reformed or we’re not going to get any proper change. Half the people in the room sigh. “The last thing we need now is an obsessive compulsive revolutionary Marxist”, I hear somebody thinking.

    Then, no surprise, Prince Charles comes out in favour of compassionate capitalism. That’s kind of like asking people to be nice to puppies, and about as realistic call for change as wanting the Moon to be actually made of cheese. As if focusing all our efforts and energy on repairing an already-breaking machine of trade with its destructive exploitation of resources and labour is going to stop climate change. Really. What actually needs to happen is that we address carbon emissions. If we cannot measure a reduction in carbon dioxide emissions, or count new trees, we are getting nowhere, fast. The Holy Economy can go hang if we don’t address Climate Change, and it will, because Climate Change is already sucking the lifeblood out of production and trade.

    The non-governmental organisations – the charities, aid and development agencies and the like, do not know how to deal with climate change. They cannot simply utilise their tools of guilt to prise coins from peoples’ clenched hands and put the money towards something helpful. Well, they can, and they do, and you better watch out for more poor, starving African type campaigning, because programmes for adaptation to climate change are important, and I’ve never said they’re not, but they don’t address mitigation – the preventing of climate change. Well, some can, such as the project for smokeless, efficient ovens, but that’s not the point here. The point is that Christian Aid, for example, calling on us all to be “Hungry for Justice” isn’t addressing the central problem – the mass use of fossil fuels and deforestation in the name of economic development.

    People are talking in hushed, reverential tones about Make Climate History. The way that Make Poverty History worked was a bunch of parliamentary people, and government people, sat down together and worked out how to get shows of public support for the government’s calls to the G8. The appeal to the masses was principally divided into two kinds – messages calling for people to support the government, and messages calling for people to urge, shout, rail, demonstrate to the government that they wanted these things. So, if you were in the first group you were showing support for what you thought was a good thing, and if you were in the second group, you were using all your righteous anger to force the government to take up the cause of the poor. The NGOs merely repeated these messages out on the wires. People spent a lot of time and energy on taking these messages out to various communities, who then spent a lot of time and energy on public meetings, letter writing, postcard signing, rallying, marching, talking to their democratic representatives. But all of that activity was actually useless. The relationships that counted were the relationships between the governments, not between the governments and their NGOs. The NGOs were used to propagate a government initiative.

    And now, they’re doing it again with climate change. Various parts of government, who have actually understood the science, and the economics, can see how it is in the best interests of the United Kingdom, and the European Union, of which we are a closely-connected part, to adopt strong carbon control policies. But they’re not content just to get on with it. No, they want all the politically active types to make a show of support. And so the communications begin. Apparently open consultative meetings are convened, but the agenda is already decided, and the messaging already written for you.

    It reminds me of what happened with the Climate Marches. A truly independent strongly critical movement centred around the Campaign against Climate Change organised a demonstration of protest every year in London, leading people either from or to the American Embassy, as the USA was the most recalcitrant on taking action to control greenhouse gas emissions. This was an effective display of public feeling, as it irritated and scratched and annoyed. So it had to go. So, I Count was born, a project of Stop Climate Chaos. They organised events sometimes on the very same day as the Campaign against Climate Change, and their inclusive hippy message was all lovehearts and flowers and we wouldn’t hurt a fly type calls for change. In the run up to the Copenhagen Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC) Kyoto Protocol in late 2009, all the NGOs were pushing for energy to be concentrated on its outcome, but nobody who joined in the vigils, the pilgrimages or the marches had any chance to make a real input. We were just the feather boa on the cake. We were even ejected from the building.

    All this energy expended was a complete waste of time. With climate change, the relationships that count are between the governments and the energy industry. The NGOs may rant and rail in their toothless, fangless, clawless way about energy industry infelicity, ignominy, ignorance and inflexibility, but the energy industry only cares about NGOs if they show any sign of rebellious insubordination, which might upset their shareholders.

    The governments know what they need to do – they need to improve their relationships with their energy industries to come to an agreement about decarbonising the energy supply – ask them in the most non-nonsense, unavoidable, sisterly/brotherly way to diversify out of fossil fuels. It really doesn’t matter what the NGOs say or do.

    Current climate change campaigning to the masses is analagous to walking into a student party and shouting above the noise, sorry, music, “Hands up, who likes beer ?” You might get some token drunken waves out of that, but nothing more.

    People, I predict, are less likely to join in with a hunger strike than they are to like beer. And even if I did join the Climate Fast, it wouldn’t make a blind bit of difference to energy company behaviour or government policy.

    Look, I’ve done my share of climate change actions. I’ve cut my personal energy use, I’ve given up ironing and vacuuming, for example. I’ve installed solar panels. I use the bus. I’ve taken part in the Great Scheme of Voluntary Behaviour Change – I, the energy consumer have shown my willingness to consume less and produce less greenhouse gas emissions. Now it’s time for other people to act.

    Given half a chance, most of the British people would vote for climate – a decent, hardworking, sunshine-and-rain and rather moderate climate – and none of this extremist storms, floods and droughts scenario we’ve been suffering recently.

    Yes, and more British people want renewable energy than voted in their Local Elections.

    So why doesn’t the UK Government just get on with it – institute the proper Carbon Budget at home, continue to ask for decent decarbonisation targets abroad, and leave all the compassionate caring people to devote themselves to causes that they stand a chance of impacting ?

    Academic Freedom, Advancing Africa, Bait & Switch, Behaviour Changeling, Big Society, Change Management, Climate Change, Climate Chaos, Climate Damages, Conflict of Interest, Corporate Pressure, Dead End, Deal Breakers, Demoticratica, Design Matters, Direction of Travel, Disturbing Trends, Divide & Rule, Dreamworld Economics, Economic Implosion, Emissions Impossible, Energy Calculation, Energy Change, Energy Disenfranchisement, Energy Revival, Evil Opposition, Extreme Energy, Extreme Weather, Feed the World, Feel Gooder, Freemarketeering, Gamechanger, Global Heating, Global Singeing, Global Warming, Green Investment, Green Power, Growth Paradigm, Hide the Incline, Human Nurture, Hydrocarbon Hegemony, Incalculable Disaster, Insulation, Libertarian Liberalism, Low Carbon Life, Mad Mad World, Mass Propaganda, Media, Meltdown, National Energy, National Power, National Socialism, Neverending Disaster, Not In My Name, Nudge & Budge, Optimistic Generation, Orwells, Paradigm Shapeshifter, Pet Peeves, Petrolheads, Policy Warfare, Political Nightmare, Protest & Survive, Public Relations, Pure Hollywood, Regulatory Ultimatum, Renewable Resource, Revolving Door, Science Rules, Screaming Panic, Social Capital, Social Change, Social Chaos, Social Democracy, Stirring Stuff, The Myth of Innovation, The Power of Intention, The Science of Communitagion, Tsunami, Unqualified Opinion, Unsolicited Advice & Guidance, Unutterably Useless, Utter Futility, Vain Hope, Voluntary Behaviour Change, Vote Loser, Wasted Resource
  • On Not Setting The Proper Tone

    Posted on May 28th, 2014 Jo No comments

    So, I turned up for a national Climate Change campaigning and lobbying day some years ago. I had offered to steward at the event. My attire concerned one of those close to the organising team. After all, there were Members of Parliament due to attend, and Gentlemen and Ladies of the Press. “I don’t think it’s quite setting the right tone.” she commented.

    Well, I want to know what the right tone is, exactly. And I don’t think anybody else does, either. How do we make change happen ? Really ?

    I’ve just received another email missive from The Climate Coalition asking me to Tweet tomorrow about the Carbon Budget.

    “As you may remember, back in 2011 we successfully fought for the government to deliver on its climate targets by adopting the Committee on Climate Change’s (CCC) recommendations on the 4th Carbon Budget…”

    I mean, that’s a bit of a claim to start with. I very much doubt that anything that the Climate Coalition (or Stop Climate Chaos, as they were known in 2011) did had any bearing on the UK Government’s policy- or decision-making.

    “…That decision is currently up for review and we need to make sure the government sticks to the ambition it showed 3 years ago, starting with a Twitter love in this Thursday.”

    I beg your pardon ? How can The Climate Coalition make sure the UK Government does anything ? By Tweeting ? OK, so The Climate Coalition is an umbrella organisation of over 40 organisations, ostensibly representing over 11 million people, but it doesn’t have any real political weight, or any serious influence with The Treasury, who are normally the ones resisting the development of the green economy.

    “…We’ve heard rumours that this is currently being negotiated in government, with at least some arguing for weaker targets. We don’t know yet which way it’ll go, so David Cameron and Nick Clegg might just need a bit of support from us to make the right decision and stick to our current targets…”

    So this is what it’s all about – a show of support for the UK Government !

    So, tell me, why should I join in, exactly ? I won’t be having any kind of genuine impact. It’s just a token flag-waving exercise.

    I know I’m not setting the right tone, here. I’m challenging the proposals for action from one of the country’s largest collective groups with a clear position about climate change. But that’s because it’s a washout – there is nothing to be gained by responding to this appeal to Tweet.

    I mean, if they called for the whole 11 million people to do something actually meaningful, like withdraw their labour for one hour a day, or refuse to use household appliances for 8 hours a week, or all demand a meeting with the fossil fuel producing companies asking them what their plan is to decarbonise the energy supply, then I suppose that might be something worth trying.

    But Tweeting ? In support of a Government decision that they ought to make anyway based on the existing Climate Change Law and the science ? Why would they need me to join in with them on that ?

  • This Too Will Fail

    Posted on May 24th, 2014 Jo 1 comment

    I will probably fail to make myself understood, yet again, but here goes…

    The reasons the United Nations Climate Change process is failing are :-

    1.   The wrong people are being asked to shoulder responsibility

    It is a well-rumoured possibility that the fossil fuel industry makes sure it has sympathisers and lobbyists at the United Nations Framework Convention on Climate Change (UNFCCC) conferences. It is only natural that they should want to monitor proceedings, and influence outcomes. But interventions by the energy sector has a much wider scope. Delegates from the countries with national oil and gas companies are key actors at UNFCCC conferences. Their national interests are closely bound to their fossil fuel exports. Many other countries understand their national interest is bound to the success of energy sector companies operating within their borders. Still others have governments with energy policy virtually dictated by international energy corporations. Yet when the UNFCCC discusses climate change, the only obligations discussed are those of nations – the parties to any treaty are the governments and regimes of the world. The UNFCCC does not hold oil and gas (and coal) companies to account. BP and Shell (and Exxon and Chevron and Total and GDF Suez and Eni and so on) are not asked to make undertakings at the annual climate talks. Governments are hoped to forge a treaty, but this treaty will create no leverage for change; no framework of accountability amongst those who produce oil, gas and coal.

    2.   The right people are not in the room

    It’s all very well for Governments to commit to a treaty, but they cannot implement it. Yes, their citizens can make a certain amount of changes, and reduce their carbon emissions through controlling their energy consumption and their material acquisitions. But that’s not the whole story. Energy has to be decarbonised at source. There are technological solutions to climate change, and they require the deployment of renewable energy systems. The people who can implement renewable energy schemes should be part of the UNFCCC process; the engineering companies who make wind turbines, solar photovoltaic panels, the people who can build Renewable Gas systems. Companies such as Siemens, GE, Alstom. Energy engineering project companies. Chemical engineering companies.

    3.   The economists are still in the building

    In the United Kingdom (what will we call it if Scotland becomes independent ? And what will the word “British” then mean ?) the Parliament passed the Climate Change Act. But this legislation is meaningless without a means to implement the Carbon Budgets it institutes. The British example is just a minor parallel to the UNFCCC situation – how can a global climate treaty be made to work ? Most of the notions the economists have put forward so far to incentivise energy demand reduction and stimulate low carbon energy production have failed to achieve much. Carbon trading ! Carbon pricing ! All rather ineffective. Plus, there’s the residual notion of different treatment for developed and developing nations, which is a road to nowhere.

    4.   Unilateral action is frowned upon

    Apparently, since Climate Change is a global problem, we all have to act in a united fashion to solve it. But that’s too hard to ask, at least to start with. When countries or regions take it upon themselves to act independently, the policy community seem to counsel against it. There are a few exceptions, such as the C40 process, where individual cities are praised for independent action, but as soon as the European Community sets up something that looks like a border tax on carbon, that’s a no-no. Everybody is asked to be part of a global process, but it’s almost too hard to get anything done within this framework.

    5.   Civil Society is hamstrung and tongue-tied

    There is very little that people groups can achieve within the UNFCCC process, because there is a disconnect between the negotiations and practical action. The framework of the treaty discussions does not encompass the real change makers. The UNFCCC does not build the foundation for the architecture of a new green economy, because it only addresses itself to garnering commitments from parties that cannot fulfill them. Civil Society ask for an egg sandwich and they are given a sandy eggshell. If Civil Society groups call for technology, they are given a carbon credit framework. If they call for differential investment strategies that can discredit carbon dependency, they are given an opportunity to put money into the global adaptation fund.

  • Positively Against Negative Campaigning

    Posted on May 24th, 2014 Jo 4 comments

    How to organise a political campaign around Climate Change : ask a group of well-fed, well-meaning, Guardian-reading, philanthropic do-gooders into the room to adopt the lowest common denominator action plan. Now, as a well-fed, well-meaning, Guardian-reading (well, sometimes), philanthropic do-gooder myself, I can expect to be invited to attend such meetings on a regular basis. And always, I find myself frustrated by the outcomes : the same insipid (but with well-designed artwork) calls to our publics and networks to support something with an email registration, a signed postcard, a fistful of dollars, a visit to a public meeting of no consequence, or a letter to our democratic representative. No output except maybe some numbers. Numbers to support a government decision, perhaps, or numbers to indicate what kind of messaging people need in future.

    I mean, with the Fair Trade campaign, at least there was some kind of real outcome. Trade Justice advocates manned stall tables at churches, local venues, public events, and got money flowing to the international co-operatives, building up the trade, making the projects happen, providing schooling and health and aspirations in the target countries. But compare that to the Make Poverty History campaign which was largely run to support a vain top-level political attempt to garner international funding promises for social, health and economic development. Too big to succeed. No direct line between supporting the campaign and actually supporting the targets. Passing round the hat to developed, industrialised countries for a fund to support change in developing, over-exploited countries just isn’t going to work. Lord Nicholas Stern tried to ask for $100 billion a year by 2020 for Climate Change adaptation. This has skidded to a halt, as far as I know. The economic upheavals, don’t you know ?

    And here we are again. The United Nations Framework Convention on Climate Change (UNFCCC), which launched the Intergovernmental Panel on Climate Change (IPCC) reports on climate change, oh, so, long, ago, through the person of its most charismatic and approachable Executive Secretary, Christiana Figueres, is calling for support for a global Climate Change treaty in 2015. Elements of this treaty, being drafted this year, will, no doubt, use the policy memes of the past – passing round the titfer begging for a couple of billion squid for poor, hungry people suffering from floods and droughts; proposing some kind of carbon pricing/taxing/trading scheme to conjure accounting bean solutions; trying to implement an agreement around parts per million by volume of atmospheric carbon dioxide; trying to divide the carbon cake between the rich and the poor.

    Somehow, we believe, that being united around this proposed treaty, few of which have any control over the contents of, will bring us progress.

    What can any of us do to really have input into the building of a viable future ? Christiana – for she is now known frequently only by her first name – has called for numbers – a measure of support for the United Nations process. She has also let it be known that if there is a substantial number of people who, with their organisations, take their investments out of fossil fuels, then this could contribute to the mood of the moment. Those who are advocating divestment are yet small in number, and I fear that they will continue to be marginal, partly because of the language that is being used.

    First of all, there are the Carbon Disclosers. Their approach is to conjure a spectre of the “Carbon Bubble” – making a case that investments in carbon dioxide-rich enterprises could well end up being stranded by their assets, either because of wrong assumptions about viable remaining resources of fossil fuels, or because of wrong assumptions about the inability of governments to institute carbon pricing. Well, obviously, governments will find it hard to implement effective carbon pricing, because governments are in bed with the energy industry. Politically, governments need to keep big industry sweet. No surprise there. And it’s in everybody’s interests if Emperor Oil and Prince Regent Natural Gas are still wearing clothes. In the minds of the energy industry, we still have a good four decades of healthy fossil fuel assets. Royal Dutch Shell’s CEO can therefore confidently say at a public AGM that There Is No Carbon Bubble. The Carbon Discloser language is not working, it seems, as any kind of convincer, except to a small core of the concerned.

    And then there are the Carbon Voices. These are the people reached by email campaigns who have no real idea how to do anything practical to affect change on carbon dioxide emissions, but they have been touched by the message of the risks of climate change and they want to be seen to be supporting action, although it’s not clear what action will, or indeed can, be taken. Well-designed brochures printed on stiff recycled paper with non-toxic inks will pour through their doors and Inboxes. Tick it. Send it back. Sign it. Send it on. Maybe even send some cash to support the campaign. This language is not achieving anything except guilt.

    And then there are the Carbon Divestors. These are extremely small marginal voices who are taking a firm stand on where their organisations invest their capital. The language is utterly dated. The fossil fuel industry are evil, apparently, and investing in fossil fuels is immoral. It is negative campaigning, and I don’t think it stands a chance of making real change. It will not achieve its goal of being prophetic in nature – bearing witness to the future – because of the non-inclusive language. Carbon Voices reached by Carbon Divestor messages will in the main refuse to respond, I feel.

    Political action on Climate Change, and by that I mean real action based on solid decisions, often taken by individuals or small groups, has so far been under-the-radar, under-the-counter, much like the Fair Trade campaign was until it burst forth into the glorious day of social acceptability and supermarket supply chains. You have the cyclists, the Transition Towners, the solar power enthusiasts. Yet to get real, significant, economic-scale transition, you need Energy Change – that is, a total transformation of the energy supply and use systems. It’s all very well for a small group of Methodist churches to pull their pension funds from investments in BP and Shell, but it’s another thing entirely to engage BP and Shell in an action plan to diversify out of petroleum oil and Natural Gas.

    Here below are my email words in my feeble attempt to challenge the brain of Britain’s charitable campaigns on what exactly is intended for the rallying cry leading up to Paris 2015. I can pretty much guarantee you won’t like it – but you have to remember – I’m not breaking ranks, I’m trying to get beyond the Climate Change campaigning and lobbying that is currently in play, which I regard as ineffective. I don’t expect a miraculous breakthrough in communication, the least I can do is sow the seed of an alternative. I expect I could be dis-invited from the NGO party, but it doesn’t appear to be a really open forum, merely a token consultation to build up energy for a plan already decided. If so, there are probably more important things I could be doing with my time than wasting hours and hours and so much effort on somebody else’s insipid and vapid agenda.

    I expect people might find that attitude upsetting. If so, you know, I still love you all, but you need to do better.


    [...]

    A lot of campaigning over the last 30 years has been very negative and divisive, and frequently ends in psychological stalemate. Those who are cast as the Bad Guys cannot respond to the campaigning because they cannot admit to their supporters/employees/shareholders that the campaigners are “right”. Joe Average cannot support a negative campaign as there is no apparent way to make change happen by being so oppositional, and because the ask is too difficult, impractical, insupportable. [Or there is simply too much confusion or cognitive dissonance.]

    One of the things that was brought back from the [...] working group breakout on [...] to the plenary feedback session was that there should be some positive things about this campaign on future-appropriate investment. I think [...] mentioned the obvious one of saying effectively “we are backing out of these investments in order to invest in things that are more in line with our values” – with the implicit encouragement for fossil fuel companies to demonstrate that they can be in line with our values and that they are moving towards that. There was some discussion that there are no bulk Good Guy investment funds, that people couldn’t move investments in bulk, although some said there are. [...] mentioned Ethex.

    Clearly fossil fuel production companies are going to find it hard to switch from oil and gas to renewable electricity, so that’s not a doable we can ask them for. Several large fossil fuel companies, such as BP, have tried doing wind and solar power, but they have either shuttered those business units, or not let them replace their fossil fuel activities.

    [...] asked if the [divestment] campaign included a call for CCS – Carbon Capture and Storage – and [...] referred to [...] which showed where CCS is listed in a box on indicators of a “good” fossil fuel energy company.

    I questioned whether the fossil fuel companies really want to do CCS – and that they have simply been waiting for government subsidies or demonstration funds to do it. (And anyway, you can’t do CCS on a car.)

    I think I said in the meeting that fossil fuel producer companies can save themselves and save the planet by adopting Renewable Gas – so methods for Carbon Capture and Utilisation (CCU) or “carbon recycling”. Plus, they could be making low carbon gas by using biomass inputs. Most of the kit they need is already widely installed at petrorefineries. So – they get to keep producing gas and oil, but it’s renewably and sustainably sourced with low net carbon dioxide emissions. That could be turned into a positive, collaborative ask, I reckon, because we could all invest in that, the fossil fuel companies and their shareholders.

    Anyway, I hope you did record something urging a call to positive action and positive engagement, because we need the co-operation of the fossil fuel companies to make appropriate levels of change to the energy system. Either that, or they go out of business and we face social turmoil.

    If you don’t understand why this is relevant, that’s OK. If you don’t understand why a straight negative campaign is a turn-off to many people (including those in the fossil fuel industry), well, I could role play that with you. If you don’t understand what I’m talking about when I talk about Renewable Gas, come and talk to me about it again in 5 years, when it should be common knowledge. If you don’t understand why I am encouraging positive collaboration, when negative campaigning is so popular and marketable to your core segments, then I will resort to the definition of insanity – which is to keep doing the same things, expecting a different result.

    I’m sick and tired of negative campaigning. Isn’t there a more productive thing to be doing ?

    There are no enemies. There are no enemies. There are no enemies.

    ——-

    As far as I understand the situation, both the [...] and [...] campaigns are negative. They don’t appear to offer any positive routes out of the problem that could engage the fossil fuel companies in taking up the baton of Energy Change. If that is indeed the main focus of [...] and [...] efforts, then I fear they will fail. Their work will simply be a repeat of the negative campaigning of the last 30 years – a small niche group will take up now-digital placards and deploy righteous, holy social media anger, and that will be all.

    Since you understand this problem, then I would suggest you could spend more time and trouble helping them to see a new way. You are, after all, a communications expert. And so you know that even Adolf Hitler used positive, convening, gathering techniques of propaganda to create power – and reserved the negative campaigning for easily-marginalised vulnerable groups to pile the bile and blame on.

    Have a nicer day,

    —–

    The important thing as far as I understand it is that the “campaigning” organisations need to offer well-researched alternatives, instead of just complaining about the way things are. And these well-researched alternatives should not just be the token sops flung at the NGOs and UN by the fossil fuel companies. What do I mean ?

    Well, let’s take Carbon Capture and Storage (CCS). The injection of carbon dioxide into old oil and gas caverns was originally proposed for Enhanced Oil Recovery (EOR) – that is – getting more oil and gas out the ground by pumping gas down there – a bit like fracking, but with gas instead of liquid. The idea was that the expense of CCS would be compensated for by the new production of oil and gas – however, the CCS EOR effect has shown to be only temporary. So now the major oil and gas companies say they support carbon pricing (either by taxation or trading), to make CCS move forward. States and federations have given them money to do it. I think the evidence shows that carbon pricing cannot be implemented at a sufficiently high level to incentivise CCS, therefore CCS is a non-answer. Why has [...] not investigated this ? CCS is a meme, but not necessarily part of the carbon dioxide solution. Not even the UNFCCC IPCC reports reckon that much CCS can be done before 2040. So, why does CCS appear in the [...] criteria for a “good” fossil fuel company ? Because it’s sufficiently weak as a proposal, and sufficiently far enough ahead that the fossil fuel companies can claim they are “capture ready”, and in the Good Book, but in reality are doing nothing.

    Non-starters don’t just appear from fossil fuel companies. From my point of view, another example of running at and latching on to things that cannot help was the support of the GDR – Greenhouse Development Rights, of which there has been severe critique in policy circles, but the NGOs just wrote it into their policy proposals without thinking about it. There is no way that the emissions budgets set out in the GDR policy could ever get put into practice. For a start, there is no real economic reason to divide the world into developing and developed nations (Kyoto [Protocol]‘s Annex I and Annex II).

    If you give me some links, I’m going to look over your [...] and think about it.

    I think that if a campaign really wants to get anywhere with fossil fuel companies, instead of being shunted into a siding, it needs to know properly what the zero carbon transition pathways really are. Unequal partners do not make for a productive engagement, I reckon.

    —–

    I’m sorry to say that this still appears to be negative campaigning – fossil fuel companies are “bad”; and we need to pull our money out of fossil fuel companies and put it in other “good” companies. Where’s the collective, co-operative effort undertaken with the fossil fuel companies ? What’s your proposal for helping to support them in evolving ? Do you know how they can technologically transition from using fossil fuels to non-fossil fuels ? And how are you communicating that with them ?

    ——

    They call me the “Paradigm Buster”. I’m not sure if “the group” is open to even just peeking into that kind of approach, let alone “exploring” it. The action points on the corporate agenda could so easily slip back into the methods and styles of the past. Identify a suffering group. Build a theory of justice. Demand reparation. Make Poverty History clearly had its victims and its saviours. Climate change, in my view, requires a far different treatment. Polar bears cannot substitute for starving African children. And not even when climate change makes African children starve, can they inspire the kind of action that climate change demands. A boycott campaign without a genuine alternative will only touch a small demographic. Whatever “the group” agrees to do, I want it to succeed, but by rehashing the campaigning strategies and psychology of the past, I fear it will fail. Even by adopting the most recent thinking on change, such as Common Cause, [it] is not going to surmount the difficulties of trying to base calls to action on the basis of us-and-them thinking – polar thinking – the good guys versus the bad guys – the body politic David versus the fossil fuel company Goliath. By challenging this, I risk alienation, but I am bound to adhere to what I see as the truth. Climate change is not like any other disaster, aid or emergency campaign. You can’t just put your money in the [collecting tin] and pray the problem will go away with the help of the right agencies. Complaining about the “Carbon Bubble” and pulling your savings from fossil fuels is not going to re-orient the oil and gas companies. The routes to effective change require a much more comprehensive structure of actions. And far more engagement that agreeing to be a flag waver for whichever Government policy is on the table. I suppose it’s too much to ask to see some representation from the energy industry in “the group”, or at least [...] leaders who still believe in the fossil fuel narratives, to take into account their agenda and their perspective, and a readiness to try positive collaborative change with all the relevant stakeholders ?


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  • Nigel Lawson : Unreferenced & Ill-Informed ?

    Posted on May 8th, 2014 Jo No comments

    An appeal was issued by David Andrews of the Claverton Energy Research Group, to respond to the Bath Lecture given by Nigel Lawson :-

    “Dear All, this group is not meant to be a mere venting of frustration and opinion at what is perceived to be poor policy. So what would be really useful is to have the Lawson spiel with the countering fact interspersed. I can then publish this on the Claverton web site which does get a lot of hits and appears to be quite influential. Can I therefore first thank Ed Sears for making a good effort, but ask him to copy his bits into the Lawson article at the appropriate point. Then circulate it and get others to add in bits. Otherwise these good thoughts will simply be lost in the wind. Dave”

    My reply of today :-

    “Dear Dave, I don’t have time at the moment to answer all of Nigel Lawson’s layman ruminations, but I have written a few comments here (see below) which begin to give vent to frustration typical of that which his tactics cause in the minds of people who have some acquaintance with the actual science. The sheer volume of his output suggests an attempt to filibuster proper debate rather than foster it. To make life more complicated to those who wish to answer his what I think are absurd notions, he gives no accurate references to his supposed facts or cites any accredited, peer-reviewed documentation that could back up his various emotive generalisations and what appear to be aspersions. Regards, jo.”


    http://www.thegwpf.org/nigel-lawson-the-bath-lecture/

    Nigel Lawson: The Bath Lecture

    Climate Alarmism Is A Belief System And Needs To Be Evaluated As Such

    Nigel Lawson: Cool It

    Standpoint, May 2014

    This essay is based on the text of a speech given to the Institute for Sustainable Energy and the Environment at the University of Bath.

    There is something odd about the global warming debate — or the climate change debate, as we are now expected to call it, since global warming has for the time being come to a halt.

    [ joabbess.com : Contrary to what Nigel Lawson is claiming, there is no pause - global warming continues unabated. Of this there can be no doubt. All of the data that has been assessed - and there is a lot of it - confirms the theoretical framework - so it is odd that Nigel Lawson states otherwise, seemingly without any evidence to substantiate his assertion. Nigel Lawson appears to be taking advantage of fluctuations, or short-term wrinkles, in the records of air temperatures close to the Earth, to claim that up is down, dark is light and that truth is in error. Why are temperatures in the atmosphere close to the Earth's surface, or "surface temperatures", subject to variability ? Because heat can flow through matter, is the short answer. The longer answer is the interplay between the atmosphere and the oceans, where heat is being transfered between parts of the Earth system under conditions of flows such as the movement of air and water - what we call winds and ocean currents. There are detectable patterns in the flows of air and water - and some are oscillatory, so the temperature (taken at any one time) may appear to wriggle up and down (when viewed over a period of time). Despite these wobbles, the overall trend of temperature over several decades has been reliably detected. Despite Nigel Lawson's attention to air temperatures, they are probably the least significant in detecting global warming, even though the data shows that baseline air temperatures, averaged over time, are rising. The vast proportion of heat being added to the Earth system is ending up in the oceans :-
    http://www.skepticalscience.com/global-cooling-intermediate.htm
    and the rise in ocean temperatures is consistent :-
    https://www.skepticalscience.com/cherrypicking-deny-continued-ocean-global-warming.html
    which indicates that circulatory patterns of heat exchange in the oceans have less effect on making temperatures fluctuate than the movement of masses of air in the atmosphere. This is exactly what you would expect from the study of basic physics. If you give only a cursory glance at the recent air temperatures at the surface of the Earth, you could think that temperatures have levelled off in the last decade or so, but taking a longer term view easily shows that global warming continues to be significant :-
    http://data.giss.nasa.gov/gistemp/graphs_v3/
    What is truly astonishing about this data is that the signal shows through the noise - that the trend in global warming is easily evident by eye, despite the wavy shakes from natural variability. For Nigel Lawson's information, the reason why we refer to climate change is to attempt to encompass other evidence in this term besides purely temperature measurements. As the climate changes, rainfall patterns are altering, for example, which is not something that can be expressed in the term global warming. ]

    I have never shied away from controversy, nor — for example, as Chancellor — worried about being unpopular if I believed that what I was saying and doing was in the public interest.

    But I have never in my life experienced the extremes of personal hostility, vituperation and vilification which I — along with other dissenters, of course — have received for my views on global warming and global warming policies.

    For example, according to the Climate Change Secretary, Ed Davey, the global warming dissenters are, without exception, “wilfully ignorant” and in the view of the Prince of Wales we are “headless chickens”. Not that “dissenter” is a term they use. We are regularly referred to as “climate change deniers”, a phrase deliberately designed to echo “Holocaust denier” — as if questioning present policies and forecasts of the future is equivalent to casting malign doubt about a historical fact.

    [ joabbess.com : Climate change science is built on observations : all historical facts. Then, as in any valid science, a theoretical framework is applied to the data to check the theory - to make predictions of future change, and to validate them. It is an historical fact that the theoretical framework for global warming has not been falsified. The Earth system is warming - this cannot be denied. It seems to me that Nigel Lawwon usurps the truth with myth and unsubstantiated rumour, casting himself in the role of doubting dissenter, yet denying the evidence of the data. He therefore self-categorises as a denier, by the stance of denial that he takes. His denial is also an historical fact, but calling him a denier is not a value judgement. It is for each person to ascribe for themselves a moral value to the kind of denial he expresses. ]

    The heir to the throne and the minister are senior public figures, who watch their language. The abuse I received after appearing on the BBC’s Today programme last February was far less restrained. Both the BBC and I received an orchestrated barrage of complaints to the effect that it was an outrage that I was allowed to discuss the issue on the programme at all. And even the Science and Technology Committee of the House of Commons shamefully joined the chorus of those who seek to suppress debate.

    [ joabbess.com : Considering the general apathy of most television viewers, it is therefore quite refreshingly positive that so many people decided to complain about Nigel Lawson being given a platform to express his views about climate change, a subject about which it seems he is unqualified to speak with authority of learning. He may consider the complaints an "orchestrated barrage". Another interpretation could be that the general mood of the audience ran counter to his contributions, and disagreed with the BBC's decisiont to permit him to air his contrarian position, to the point of vexation. A parallel example could be the kind of outrage that could be expressed if Nigel Lawson were to deny that the Earth is approximately spherical, that gravity means that things actually move out to space rather than towards the ground, or that water is generally warmer than ice. He should expect opposition to his opinions if he is denying science. ]

    In fact, despite having written a thoroughly documented book about global warming more than five years ago, which happily became something of a bestseller, and having founded a think tank on the subject — the Global Warming Policy Foundation — the following year, and despite frequently being invited on Today to discuss economic issues, this was the first time I had ever been asked to discuss climate change. I strongly suspect it will also be the last time.

    The BBC received a well-organised deluge of complaints — some of them, inevitably, from those with a vested interest in renewable energy — accusing me, among other things, of being a geriatric retired politician and not a climate scientist, and so wholly unqualified to discuss the issue.

    [ joabbess.com : It is a mark of integrity to put you money where your mouth is, not an indicator on insincerity. It is natural to expect people who accept climate change science to be taking action on carbon dioxide emissions, which includes investment in renewable energy. ]

    Perhaps, in passing, I should address the frequent accusation from those who violently object to any challenge to any aspect of the prevailing climate change doctrine, that the Global Warming Policy Foundation’s non-disclosure of the names of our donors is proof that we are a thoroughly sinister organisation and a front for the fossil fuel industry.

    As I have pointed out on a number of occasions, the Foundation’s Board of Trustees decided, from the outset, that it would neither solicit nor accept any money from the energy industry or from anyone with a significant interest in the energy industry. And to those who are not-regrettably-prepared to accept my word, I would point out that among our trustees are a bishop of the Church of England, a former private secretary to the Queen, and a former head of the Civil Service. Anyone who imagines that we are all engaged in a conspiracy to lie is clearly in an advanced stage of paranoia.

    The reason why we do not reveal the names of our donors, who are private citizens of a philanthropic disposition, is in fact pretty obvious. Were we to do so, they, too, would be likely to be subject to the vilification and abuse I mentioned earlier. And that is something which, understandably, they can do without.

    That said, I must admit I am strongly tempted to agree that, since I am not a climate scientist, I should from now on remain silent on the subject — on the clear understanding, of course, that everyone else plays by the same rules. No more statements by Ed Davey, or indeed any other politician, including Ed Milliband, Lord Deben and Al Gore. Nothing more from the Prince of Wales, or from Lord Stern. What bliss!

    But of course this is not going to happen. Nor should it; for at bottom this is not a scientific issue. That is to say, the issue is not climate change but climate change alarmism, and the hugely damaging policies that are advocated, and in some cases put in place, in its name. And alarmism is a feature not of the physical world, which is what climate scientists study, but of human behaviour; the province, in other words, of economists, historians, sociologists, psychologists and — dare I say it — politicians.

    [ joabbess.com : Au contraire, I would say to Nigel Lawson. At root, climate change is very much a scientific issue. Science defines it, describes it and provides evidence for it. Climate change is an epistemological concern, and an ontological challenge. How we know what we know about climate change is by study of a very large number of results from data collection and other kinds of research. The evidence base is massive. The knowledge expressed in climate change science is empirical - based on observations - which is how we are sure that what we know is assured. There is still scope for uncertainty - will the surface temperatures rise by X plus or minus some Y, owing to the dynamic between the atmosphere, the oceans, the ice cover and the land masses ? The results of the IPCC assessments are that we pretty much know what X is, and we have an improved clarity on a range of values for Y. The more science is done, the clearer these numbers emerge. Knowledge increases as more science is done, which is why the IPCC assessments are making firmer conclusions as time passes. Climate change science does not make value judgements on its results. It concludes that sea levels are rising and will continue to rise; that rainfall patterns are changing and will continue to change; that temperatures are rising and will continue to rise under current economic conditions and the levels of fossil fuel use and land use. Science describes the outcomes of these and other climate changes. It is for us as human beings, with humanity in our hearts, to place a meaning on predicted outcomes such as crop and harvest failures, displacement of peoples, unliveable habitats, loss of plant and animal species, extreme weather. You cannot take the human out of the scientist. Of course scientists will experience alarm at the thought of these outcomes, just as the rest of society will do. The people should not be denied the right to feeling alarm. ]

    And en passant, the problem for dissenting politicians, and indeed for dissenting climate scientists for that matter, who certainly exist, is that dissent can be career-threatening. The advantage of being geriatric is that my career is behind me: there is nothing left to threaten.

    [ joabbess.com : Climate change science is not something you can "dissent" from if you are at all versed in it. For those who question any part of climate change science from inside the community of those who have appropriate knowledge and learning, their position is not one of dissent, but of being unable to assent completely to the conclusions of their peers. They lack a capacity to fully assent to the results of other people's research because their own research indicates otherwise. As responsible members of the science community, they would then put their research conclusions and the research conclusions of others to the test. There is an integrity in this kind of questioning. It is a valid position, as long as the questions are posed in the language of scientific enquiry, and answered with scientific methods. For example, the Berkeley BEST team had questions about the evidence of global warming and set out to verify or falsify the results of others. Their own research led them to become convinced that their peers had been correct in the their conclusions. This is how science comes to consensus. Nigel Lawson should fund research in the field if he wishes to be taken seriously in denying the current consensus in climate change science. Instead of which, he invests in the publication of what appears to be uncorroborated hearsay and emotive politicking. ]

    But to return: the climate changes all the time, in different and unpredictable (certainly unpredicted) ways, and indeed often in different ways in different parts of the world. It always has done and no doubt it always will. The issue is whether that is a cause for alarm — and not just moderate alarm. According to the alarmists it is the greatest threat facing humankind today: far worse than any of the manifold evils we see around the globe which stem from what Pope called “man’s inhumanity to man”.

    [ joabbess.com : Nigel Lawson doesn't need to tell anyone that weather is changeable and that climate changes. They can see it for themselves if they care to study the data. Climate change science has discovered that the current changes in the climate are unprecedented within at least the last 800,000 years. No previous period of rapid climate change in that era has been entirely similar to the changes we are experiencing today. This is definite cause for alarm, high level alarm, and not moderate. If there is a fire, it is natural to sound the alarm. If there is a pandemic, people spread the news. If there is a risk, as human beings, we take collective measures to avoid the threat. This is normal human precautionary behaviour. It is unreasonable for Nigel Lawson to insist that alarm is not an appropriate response to what is patently in the process of happening. ]

    Climate change alarmism is a belief system, and needs to be evaluated as such.

    [ joabbess.com : Belief in gravity, or thinking that protein is good to eat are also belief systems. Everything we accept as normal and true is part of our own belief system. For example, I believe that Nigel Lawson is misguided and has come to the wrong conclusions. The evidence lies before me. Is my opinion to be disregarded because I have a belief that Nigel Lawson is incorrect ? ]

    There is, indeed, an accepted scientific theory which I do not dispute and which, the alarmists claim, justifies their belief and their alarm.

    This is the so-called greenhouse effect: the fact that the earth’s atmosphere contains so-called greenhouse gases (of which water vapour is overwhelmingly the most important, but carbon dioxide is another) which, in effect, trap some of the heat we receive from the sun and prevent it from bouncing back into space.

    Without the greenhouse effect, the planet would be so cold as to be uninhabitable. But, by burning fossil fuels — coal, oil and gas — we are increasing the amount of carbon dioxide in the atmosphere and thus, other things being equal, increasing the earth’s temperature.

    But four questions immediately arise, all of which need to be addressed, coolly and rationally.

    First, other things being equal, how much can increased atmospheric CO2 be expected to warm the earth? (This is known to scientists as climate sensitivity, or sometimes the climate sensitivity of carbon.) This is highly uncertain, not least because clouds have an important role to play, and the science of clouds is little understood. Until recently, the majority opinion among climate scientists had been that clouds greatly amplify the basic greenhouse effect. But there is a significant minority, including some of the most eminent climate scientists, who strongly dispute this.

    [ joabbess.com : Simple gas chemistry and physics that is at least a century old is evidence that carbon dioxide allows sunlight to pass right through to warm the Earth, which then emits infrared light because it has warmed up. When the infrared radiation is emitted, the Earth cools down. Infrared is partially blocked by carbon dioxide, which absorbs it, then re-radiates it, partially back to the Earth, which warms up again. Eventually, the warming radiation will escape the carbon dioxide blanket, but because of this trapping effect, the net result is for more heat to remain in the atmosphere close to the Earth's surface than you would expect. This is the main reason why the temperature of the Earth's surface is warmer than space. As carbon dioxide accumulates in the atmosphere, the warming effect will be enhanced. This is global warming and it is undisputed by the overwhelming majority of scientists. Climate sensitivity, or Equilibrium Climate Sensitivity (ECS) is a calculated measure of the total temperature change that would be experienced (after some time) at the surface of the Earth for a doubling of atmospheric carbon dioxide concentrations compare to the pre-industrial age. The Transient Climate Response (TCR) is a measure of the temperature change that would be experienced in the shorter-term for a doubling of atmospheric carbon dioxide concentrations. The TCR can be easily calculated from basic physics. The shorter-term warming will cause climate change. Some of the changes will act to cool the Earth down from the TCR (negative feedbacks). Some of the changes will act to heat the Earth up from the TCR (positive feedbacks). These are some disagreements about the ECS, such as the net effects from the fertilisation effect of carbon dioxide on plant growth, the net effects of changes in weather and cloud systems, and the net effects of changes in ocean and atmospheric circulation. However, evidence from the deep past (paleoclimatology) is helping to determine the range of temperatures that ECS could be. ]

    Second, are other things equal, anyway? We know that, over millennia, the temperature of the earth has varied a great deal, long before the arrival of fossil fuels. To take only the past thousand years, a thousand years ago we were benefiting from the so-called medieval warm period, when temperatures are thought to have been at least as warm, if not warmer, than they are today. And during the Baroque era we were grimly suffering the cold of the so-called Little Ice Age, when the Thames frequently froze in winter and substantial ice fairs were held on it, which have been immortalised in contemporary prints.

    [ joabbess.com : The Medieval Warming Period (or Medieval Warm Period) was just a blip compared to the current global warming of the last 150 years. And the Little Ice Age was also a minor anomaly, being pretty much confined to the region of Europe, and some expect could have become the Rather Much Longer Icy Period had it not been for the use of fossil fuels, which warmed Europe up again. Burning coal and other fossil fuels releases carbon that would have originally been in the atmosphere in the form of carbon dioxide millions of years ago, that trees and other plants used to grow. Geological evidence shows that surface temperatures at those times were warmer than today. ]

    Third, even if the earth were to warm, so far from this necessarily being a cause for alarm, does it matter? It would, after all, be surprising if the planet were on a happy but precarious temperature knife-edge, from which any change in either direction would be a major disaster. In fact, we know that, if there were to be any future warming (and for the reasons already given, “if” is correct) there would be both benefits and what the economists call disbenefits. I shall discuss later where the balance might lie.

    [ joabbess.com : The evidence from the global warming that we have experienced so far since around 1880 is almost universally limiting in terms of the ability of species of animals and plants to survive. There are tiny gems of positive outcomes, compared to a sand pit of negatives. Yes, of course it matters. The mathematics of chaos with strong perturbations to any system do not permit it to coast on a precarious knife-edge for very long. Sooner or later there will be a major alteration, and the potential for some milder probable outcomes will collapse. ]

    And fourth, to the extent that there is a problem, what should we, calmly and rationally, do about it?

    [ joabbess.com : The most calm and rational thing to do is to compile all the evidence and report on it. Oh yes, we've already done that. It's called the Intergovernmental Panel on Climate Change or IPCC. The concluisons of the compilation of over 100 years of science is that global warming is real, and it's happening now, and that there is a wide range of evidence for climate change, and indicators that it is a major problem, and that we have caused it, through using fossil fuels and changing how we use land. ]

    It is probably best to take the first two questions together.

    According to the temperature records kept by the UK Met Office (and other series are much the same), over the past 150 years (that is, from the very beginnings of the Industrial Revolution), mean global temperature has increased by a little under a degree centigrade — according to the Met Office, 0.8ºC. This has happened in fits and starts, which are not fully understood. To begin with, to the extent that anyone noticed it, it was seen as a welcome and natural recovery from the rigours of the Little Ice Age. But the great bulk of it — 0.5ºC out of the 0.8ºC — occurred during the last quarter of the 20th century. It was then that global warming alarmism was born.

    [ joabbess.com : Nigel Lawson calls it "alarmism". I call it empirical science. And there are many scientific explanations for what he calls "fits and starts", it's just that they're written in research papers, so he will probably never read them, going on his lack of attention to research publications in the past. ]

    But since then, and wholly contrary to the expectations of the overwhelming majority of climate scientists, who confidently predicted that global warming would not merely continue but would accelerate, given the unprecedented growth of global carbon emissions, as China’s coal-based economy has grown by leaps and bounds, there has been no further warming at all. To be precise, the latest report of the Intergovernmental Panel on Climate Change (IPCC), a deeply flawed body whose non-scientist chairman is a committed climate alarmist, reckons that global warming has latterly been occurring at the rate of — wait for it — 0.05ºC per decade, plus or minus 0.1ºC. Their figures, not mine. In other words, the observed rate of warming is less than the margin of error.

    [ joabbess.com : It is not valid for Nigel Lawson to claim that there has been “no further warming at all”. Heat accumulation continues to be documented. Where is Nigel Lawson’s evidence to support his claim that the IPCC is a “deeply flawed body” ? Or is that another one of his entirely unsubstantiated dismissals of science ? Does he just fudge the facts, gloss over the details, pour scorn on scientists, impugn the academies of science, play with semantics, stir up antipathy, wave his hands and the whole history of science suddenly vanishes in a puff of dismissive smoke ? I doubt it ! Nigel Lawson says “the observed rate of warming is less than the margin of error.” This is ridiculous, because temperature is not something that you can add or subtract, like bags of sugar, or baskets of apples, or Pounds Sterling to the Global Warming Policy Foundation’s public relations fund. Two degrees Celsius, or Centigrade, is not twice as warm as one degree Celsius. 30 degrees C doesn’t indicate twice as much heat as 15 degrees C, or require twice as much heating. The range of figures that Nigel Lawson is quoting, minus 0.05 degrees C plus or minus 0.1 degrees C, that is, somewhere between a cooling of 0.05 degrees C and a warming of 0.15 degrees C, is a calculation of temperature trends averaged over the whole Earth’s surface for the last 15 years :-
    http://www.climatechange2013.org/images/uploads/WGIAR5_WGI-12Doc2b_FinalDraft_Chapter09.pdf (Box 9.2)
    It is not surprising that over such a short timescale it might appear that the Earth as experienced a mild cooling effect. In the last 15 years there have been a couple of years far hotter than average, and these spike the calculated trend. For example, 1998 was much hotter than the years before or after it, so if you were just to compare 1998 with 2008, it would look like the Earth is cooling down. But who would be foolish enough to look at just two calendar years of the data record on which to base their argument ? The last 15 years have to be taken in context. In “Climate Change 2013 : The Physical Science Basis”, the IPCC report from Working Group 1, in the Summary for Policymakers, page 5, Section B1, the IPCC write :-
    http://www.climatechange2013.org/images/report/WG1AR5_ALL_FINAL.pdf
    “In addition to robust multi-decadal warming, global mean surface temperature exhibits substantial decadal and interannual variability [...] Due to natural variability, trends based on short records are very sensitive to the beginning and end dates and do not in general reflect long-term climate trends. As one example, the rate of warming over the past 15 years (1998–2012; 0.05 [–0.05 to 0.15] °C per decade), which begins with a strong El Niño, is smaller than the rate calculated since 1951 (1951–2012; 0.12 [0.08 to 0.14] °C per decade).” (El Niño is a prominent pattern of winds and ocean currents in the Pacific Ocean with two main states – one that tends to produce a warming effect on the Earth’s surface temperatures, and the other, La Niña, which has a general cooling effect.) ] In other words, in the last fifteen years, the range of rate of change of temperature is calculated to be somewhere between the surface of the planet cooling by 0.05 degrees Centigrade, up to warming by 0.15 degrees Centigrade :-
    http://data.giss.nasa.gov/gistemp/graphs_v3/Fig.C.gif
    http://www.climate4you.com/GlobalTemperatures.htm#Recent%20global%20satellite%20temperature
    However, this calculation of a trend line does not take account of three things. First, in the last decade or so, the variability of individual years could mask a trend, but relative to the last 50 years, everything is clearly hotter on average. Secondly, temperature is not a “discrete” quantity, it is a continuous field of effect, and it is going to have different values depending on location and time. The temperature for any January to December is only going to be an average of averages. If you were to measure the year from March to February instead, the average of averages could look different, because of the natural variability. Thirdly, there are lots of causes for local and regional temperature variability, all concurrent, so it is not until some time after a set of measurements has been taken, and other sets of measurements have been done, that it is possible to determine that a substantial change has taken place. ]

    And that margin of error, it must be said, is implausibly small. After all, calculating mean global temperature from the records of weather stations and maritime observations around the world, of varying quality, is a pretty heroic task in the first place. Not to mention the fact that there is a considerable difference between daytime and night-time temperatures. In any event, to produce a figure accurate to hundredths of a degree is palpably absurd.

    [ joabbess.com : Nigel Lawson could be said to mislead in his explanation of what "a figure accurate to hundredths of a degree" implies. Temperature is measured on an arbitrarily decided scale. To raise the whole of the Earth surface temperatures by 1 degree Celsius requires a lot of extra trapped energy. The surface temperature of the Earth is increasing by the absorption of energy that amounts roughly to 2 trillion Hiroshima atombic bombs since 1998, or 4 Hiroshimas a second. That is not a small number, although it has to be seen in the full context of the energy flows in and out of the Earth system :-
    http://www.skepticalscience.com/4-Hiroshima-bombs-per-second-widget-raise-awareness-global-warming.html
    http://blogs.discovermagazine.com/imageo/2013/12/03/climate-bomb-redux/#.U2tlfaI-hrQ
    Nigel Lawson credits the global temperature monitoring exercise as "heroic", but then berates its quality. However, climate change scientists do already appreciate that there are differences between daytime and nighttime temperatures - it is called the diurnal range. Besides differences between years, it is known that there are also differences between seasons, and latitudes, and climatic zones. Scientists are not claiming an absolute single value for the temperature of the Earth, accurate to within hundredths of a degree - that's why they always give a margin of error. What is astonishing from reviews of the data is something that Nigel Lawson has completely missed. Global warming appears to have fractal resolution - that is - at whatever geographical scale you resolve the data, the trend in most cases appears to be similar. If you take a look at some of the websites offering graphs, for example :-
    http://www.rimfrost.no/
    http://data.giss.nasa.gov/gistemp/station_data/
    the global warming trend is seen to be generally similar when averaged locally, regionally or at the global scale. This is an indicator that the global warming signal is properly being detected, as these trend lines are more or less what you would expect from basic physics and chemistry - the more carbon dioxide in the air, the more heat gets trapped, and the rate of carbon dioxide accumulation in the atmosphere has seen similar trendlines :-
    http://cdiac.esd.ornl.gov/trends/co2/recent_mauna_loa_co2.html ]

    The lessons of the unpredicted 15-year global temperature standstill (or hiatus as the IPCC calls it) are clear. In the first place, the so-called Integrated Assessment Models which the climate science community uses to predict the global temperature increase which is likely to occur over the next 100 years are almost certainly mistaken, in that climate sensitivity is almost certainly significantly less than they once thought, and thus the models exaggerate the likely temperature rise over the next hundred years.

    [ joabbess.com : I repeat : there is no pause. The IPCC are not claiming that global warming has stopped, only that there is an apparent "hiatus" in global surface temperature averages. Some scientists have concluded from their work that Climate Sensitivity is less than once feared. However, Climate Sensitivity is calculated for an immediate, once-only doubling of carbon dioxide in the atmosphere, whereas the reality is that carbon dioxide is continuing to build up in the atmosphere, and if emissions continue unabated, there could be a tripling or quadrupling of carbon dioxide concentrations in the atmosphere, which would mean that you would need to multiply the Climate Sensitivity by 1.5 or 2 to arrive at the final top temperature - higher than previously calculated, regardless of whether the expected Climate Sensitivity were to be less than previously calculated. It is therefore illogical for Nigel Lawson to extrapolate from his understanding that Climate Sensitivity is lower than previously calculated to his conclusion that the final level of global warming will be lower than previously calculated. The more carbon dioxide we emit, the worse it will be. ]

    But the need for a rethink does not stop there. As the noted climate scientist Professor Judith Curry, chair of the School of Earth and Atmospheric Sciences at the Georgia Institute of Technology, recently observed in written testimony to the US Senate:
    “Anthropogenic global warming is a proposed theory whose basic mechnism is well understood, but whose magnitude is highly uncertain. The growing evidence that climate models are too sensitive to CO2 has implications for the attribution of late-20th-century warming and projections of 21st-century climate. If the recent warming hiatus is caused by natural variability, then this raises the question as to what extent the warming between 1975 and 2000 can also be explained by natural climate variability.”

    [ joabbess.com : The IPCC reports constitute the world's best attempts to "rethink" Climate Change. Professor Judith Curry, in the quotation given by Nigel Lawson, undervalues a great deal of her colleagues' work by dismissing their valid attribution of Climate Change to the burning of fossil fuels and the change in land use. ]

    It is true that most members of the climate science establishment are reluctant to accept this, and argue that the missing heat has for the time being gone into the (very cold) ocean depths, only to be released later. This is, however, highly conjectural. Assessing the mean global temperature of the ocean depths is — unsurprisingly — even less reliable, by a long way, than the surface temperature record. And in any event most scientists reckon that it will take thousands of years for this “missing heat” to be released to the surface.

    [ joabbess.com : That the oceans are warming is not conjecture - it is a statement based on data. The oceans have a far greater capacity for heat retention than the atmosphere, so yes, it will take a long time for heat in the oceans to re-emerge into the atmosphere. However, the processes that directed heat into the oceans rather than the atmosphere in recent years could easily reverse, and in a short space of time the atmosphere could heat up considerably. In making his arguments, Nigel Lawson omits to consider this eventuality, which lowers considerably the value of his conclusions. ]

    In short, the CO2 effect on the earth’s temperature is probably less than was previously thought, and other things — that is, natural variability and possibly solar influences — are relatively more significant than has hitherto been assumed.

    [ joabbess.com : Nothing about science has changed. The Earth system continues to accumulate heat and respond to that. Carbon dioxide still contributes to the Greenhouse Effect, and extra carbon dioxide in the air will cause further global warming. The Transient Climate Response to carbon dioxide is still apparently linear. The Equilibrium Climate Sensitivity is still calculated to be roughly what it always has been - but that's only for a doubling of atmospheric carbon dioxide. If more methane is emitted as a result of Arctic warming, for example, or the rate of fossil fuel use increases, then the temperature increase of the Earth's surface could be more than previously thought. Natural variability and solar changes are all considered in the IPCC reports, and all calculations and models take account of them. However, the obvious possibility presents itself - that the patterns of natural variability as experienced by the Earth during the last 800,000 years are themseles being changed. If Climate Change is happening so quickly as to affect natural variability, then the outcomes could be much more serious than anticipated. ]

    But let us assume that the global temperature hiatus does, at some point, come to an end, and a modest degree of global warming resumes. How much does this matter?

    The answer must be that it matters very little. There are plainly both advantages and disadvantages from a warmer temperature, and these will vary from region to region depending to some extent on the existing temperature in the region concerned. And it is helpful in this context that the climate scientists believe that the global warming they expect from increased atmospheric CO2 will be greatest in the cold polar regions and least in the warm tropical regions, and will be greater at night than in the day, and greater in winter than in summer. Be that as it may, studies have clearly shown that, overall, the warming that the climate models are now predicting for most of this century (I referred to these models earlier, and will come back to them later) is likely to do more good than harm.

    [ joabbess.com : The claim that warming will “overall [...] do more good than harm” is erroneous, according to Climate Change Science. ]

    Global warming orthodoxy is not merely irrational. It is wicked.

    [ joabbess.com : My conclusions upon reading this lecture are that the evidence suggests that Nigel Lawson's position is ill-informed. He should read the IPCC reports and re-consider. ]

  • Christiana Figueres : Love Bug

    Posted on May 7th, 2014 Jo No comments

    It was probably a side-effect of the flu’, but as I was listening to Christiana Figueres speaking at St Paul’s Cathedral, London, this evening, I started to have tunnel vision, and the rest of the “hallowed halls” just melted away, and I felt she was speaking to me individually, woman to woman.

    She talked a lot about investments, injustices and inertia, but I felt like she was personally calling me, nagging me, bugging me to show more love. She said she didn’t want us to leave thinking “That was interesting”, or even “That was inspiring”, but that we would leave resolved to do one more concrete thing to show our love for our world, and our fellow human beings.

    I was a little defensive inside – I’m already trying to get some big stuff done – how could I do anything else that could be effective ? She said that we couldn’t ask people to do more if we weren’t prepared to do more ourselves. I wasn’t sure that any of the things she suggested I could try would have any impact, but I suppose I could try again to write to my MP Iain Duncan Smith – after all, Private Eye tells me he’s just hired a communications consultant, so he might be willing to communicate with me about climate change, perhaps.

    Of her other suggestions, I have already selected investments that are low carbon, so there would be little point in writing to them about carbon-based “stranded assets”. My diet is very largely vegetarian; I buy food and provisions from co-operatives where I can; I don’t own a car; I’ve given up flying; I’ve installed solar electricity; my energy consumption is much lower than average; I buy secondhand; I reuse, repair, reclaim, recycle.

    I don’t want to “campaign” on climate change – I don’t think that would be very loving. This should not be a public relations mission, it needs to be authentic and inclusive, so I don’t know what the best way is to engage more people in “the struggle”. I’ve sent enough email in my life. People already know about climate change, I don’t need to evangelise them. They already know some of the things they could do to mitigate their fossil fuel energy consumption, I don’t need to educate them. The organisations that are still pushing fossil fuels to society have more to do to get with the transition than everyday energy consumers, surely ?

    So, how is it that this “love bug” bites me ? What do I feel bugged to be getting on with ? Researching low carbon gas energy systems is my main action at the moment, but what could I do that would be an answer to Christiana’s call for me to do something extra ? Join in the monthly fast and prayer that’s due to start on 1st November ? Well, sure I will, as part of my work duties. Network for Our Voices that will funnel the energy of the monthly call to prayer into a Civil Society “tornado” in support of the UNFCCC Paris Treaty ? Yes, of course. Comes with the territory. But more… ?

    I noticed that Christiana Figueres had collegiate competition from the bells of St Paul’s, and it sounded like the whole cathedral was ringing. Then my cough started getting bad and I started to feel quite unwell, so I had to leave before the main debate took place, to medicate myself with some fresh orange juice from a company I chose because it tracks its carbon, and has a proper plan for climate sustainability, so I never answered my question – what do I need to do, to do more about climate change ?

  • All Kinds of Gas

    Posted on May 2nd, 2014 Jo No comments

    Amongst the chink-clink of wine glasses at yesterday evening’s Open Cities Green Sky Thinking Max Fordham event, I find myself supping a high ball orange juice with an engineer who does energy retrofits – more precisely – heat retrofits. “Yeah. Drilling holes in Grade I Listed walls for the District Heating pipework is quite nervewracking, as you can imagine. When they said they wanted to put an energy centre deep underneath the building, I asked them, “Where are you going to put the flue ?””

    Our attention turns to heat metering. We discuss cases we know of where people have installed metering underground on new developments and fitted them with Internet gateways and then found that as the rest of the buildings get completed, the meter can no longer speak to the world. The problems of radio-meets-thick-concrete and radio-in-a-steel-cage. We agree that anybody installing a remote wifi type communications system on metering should be obliged in the contract to re-commission it every year.

    And then we move on to shale gas. “The United States of America could become fuel-independent within ten years”, says my correspondent. I fake yawn. It really is tragic how some people believe lies that big. “There’s no way that’s going to happen !”, I assert.

    “Look,” I say, (jumping over the thorny question of Albertan syncrude, which is technically Canadian, not American), “The only reason there’s been strong growth in shale gas production is because there was a huge burst in shale gas drilling, and now it’s been shown to be uneconomic, the boom has busted. Even the Energy Information Administration is not predicting strong growth in shale gas. They’re looking at growth in coalbed methane, after some years. And the Arctic.” “The Arctic ?”, chimes in Party Number 3. “Yes,” I clarify, “Brought to you in association with Canada. Shale gas is a non-starter in Europe. I always think back to the USGS. They estimate that the total resource in the whole of Europe is a whole order of magnitude, that is, ten times smaller than it is in Northern America.” “And I should have thought you couldn’t have the same kind of drilling in Europe because of the population density ?”, chips in Party Number 3. “They’re going to be drilling a lot of empty holes,” I add, “the “sweet spot” problem means they’re only likely to have good production in a few areas. And I’m not a geologist, but there’s the stratigraphy and the kind of shale we have here – it’s just not the same as in the USA.” Parties Number 2 and 3 look vaguely amenable to this line of argument. “And the problems that we think we know about are not the real problems,” I out-on-a-limbed. “The shale gas drillers will probably give up on hydraulic fracturing of low density shale formations, which will appease the environmentalists, but then they will go for drilling coal lenses and seams inside and alongside the shales, where there’s potential for high volumes of free gas just waiting to pop out. And that could cause serious problems if the pressures are high – subsidence, and so on. Even then, I cannot see how production could be very high, and it’s going to take some time for it to come on-stream…” “…about 10 years,” says Party Number 2.

    “Just think about who is going for shale gas in the UK,” I ventured, “Not the big boys. They’ve stood back and let the little guys come in to drill for shale gas. I mean, BP did a bunch of onshore seismic surveys in the 1950s, after which they went drilling offshore in the North Sea, so I think that says it all, really. They know there’s not much gas on land.” There were some raised eyebrows, as if to say, well, perhaps seismic surveys are better these days, but there was agreement that shale gas will come on slowly.

    “I don’t think shale gas can contribute to energy security for at least a decade,” I claimed, “even if there’s anything really there. Shale gas is not going to answer the problems of the loss of nuclear generation, or the problems of gas-fired generation becoming uneconomic because of the strong growth in renewables.” There was a nodding of heads.

    “I think,” I said, “We should forget subsidies. UK plc ought to purchase a couple of CCGTS [Combined Cycle Gas Turbine electricity generation units]. That will guarantee they stay running to load balance the power grid when we need them to. Although the UK’s Capacity Mechanism plan is in line with the European Union’s plans for supporting gas-fired generation, it’s not achieving anything yet.” I added that we needed to continue building as much wind power as possible, as it’s quick to put in place. I quite liked my radical little proposal for energy security, and the people I was talking with did not object.

    There was some discussion about Green Party policy on the ownership of energy utilities, and how energy and transport networks are basically in the hands of the State, but then Party Number 2 said, “What we really need is consistency of policy. We need an Energy Bill that doesn’t get gutted by a change of administration. I might need to vote Conservative, because Labour would mess around with policy.” “I don’t know,” I said, “it’s going to get messed with whoever is in power. All those people at DECC working on the Electricity Market Reform – they all disappeared. Says something, doesn’t it ?”

    I spoke to Parties Number 2 and 3 about my research into the potential for low carbon gas. “Basically, making gas as a kind of energy storage ?”, queried Party Number 2. I agreed, but omitted to tell him about Germany’s Power-to-Gas Strategy. We agreed that it would be at least a decade before much could come of these technologies, so it wouldn’t contribute immediately to energy security. “But then,” I said, “We have to look at the other end of this transition, and how the big gas producers are going to move towards Renewable Gas. They could be making decisions now that make more of the gas they get out of the ground. They have all the know-how to build kit to make use of the carbon dioxide that is often present in sour conventional reserves, and turn it into fuel, by reacting it with Renewable Hydrogen. If they did that, they could be building sustainability into their business models, as they could transition to making Renewable Gas as the Natural Gas runs down.”

    I asked Parties Number 2 and 3 who they thought would be the first movers on Renewable Gas. We agreed that companies such as GE, Siemens, Alstom, the big engineering groups, who are building gas turbines that are tolerant to a mix of gases, are in prime position to develop closed-loop Renewable Gas systems for power generation – recycling the carbon dioxide. But it will probably take the influence of the shareholders of companies like BP, who will be arguing for evidence that BP are not going to go out of business owing to fossil fuel depletion, to roll out Renewable Gas widely. “We’ve all got our pensions invested in them”, admitted Party Number 2, arguing for BP to gain the ability to sustain itself as well as the planet.

  • David MacKay : Heating London

    Posted on May 2nd, 2014 Jo No comments

    I took some notes from remarks made by Professor David MacKay, the UK Government’s Chief Scientific Advisor, yesterday, 1st May 2014, at an event entitled “How Will We Heat London ?”, held by Max Fordhams as part of the Green Sky Thinking, Open City week. I don’t claim to have recorded his words perfectly, but I hope I’ve captured the gist.


    [David MacKay] : [Agreeing with others on the panel - energy] demand reduction is really important. [We have to compensate for the] “rebound effect”, though [where people start spending money on new energy services if they reduce their demand for their current energy services].

    SAP is an inaccurate tool and not suitable for the uses we put it too :-
    http://www.eden.gov.uk/planning-and-development/building-control/building-control-guidance-notes/sap-calculations-explained/
    http://www.dimplex.co.uk/products/renewable_solutions/building_regulations_part_l.htm

    Things seem to be under-performing [for example, Combined Heat and Power and District Heating schemes]. It would be great to have data. A need for engineering expertise to get in.

    I’m not a Chartered Engineer, but I’m able to talk to engineers. I know a kilowatt from a kilowatt hour [ (Laughter from the room) ]. We’ve [squeezed] a number of engineers into DECC [the Department of Energy and Climate Change].

    I’m an advocate of Heat Pumps, but the data [we have received from demonstration projects] didn’t look very good. We hired two engineers and asked them to do the forensic analysis. The heat pumps were fine, but the systems were being wrongly installed or used.

    Now we have a Heat Network team in DECC – led by an engineer. We’ve published a Heat Strategy. I got to write the first three pages and included an exergy graph.

    [I say to colleagues] please don’t confuse electricity with energy – heat is different. We need not just a green fluffy solution, not just roll out CHP [Combined Heat and Power] [without guidance on design and operation].

    Sources of optimism ? Hopefully some of the examples will be available – but they’re not in the shop at the moment.

    For example, the SunUp Heat Battery – works by having a series of chambers of Phase Change Materials, about the size of a fridge that you would use to store heat, made by electricity during the day, for use at night, and meet the demand of one home. [Comment from Paul Clegg, Senior Partner at Feilden Clegg Bradley Studios : I first heard about Phase Change Materials back in the 1940s ? 1950s ? And nothing's come of it yet. ] Why is that a good idea ? Well, if you have a heat pump and a good control system, you can use electricity when it’s cheapest… This is being trialled in 10 homes.

    Micro-CHP – [of those already trialled] definitely some are hopeless, with low temperature and low electricity production they are just glorified boilers with a figleaf of power.

    Maybe Fuel Cells are going to deliver – power at 50% efficiency [of conversion] – maybe we’ll see a Fuel Cell Micro-Combined Heat and Power unit ?

    Maybe there will be hybrid systems – like the combination of a heat pump and a gas boiler – with suitable controls could lop off peaks of demand (both in power and gas).

    We have designed the 2050 Pathways Calculator as a tool in DECC. It was to see how to meet the Carbon Budget. You can use it as an energy security calculator if you want. We have helped China, Korea and others to write their own calculators.

    A lot of people think CHP is green and fluffy as it is decentralised, but if you’re using Natural Gas, that’s still a Fossil Fuel. If you want to run CHP on biomass, you will need laaaaaarge amounts of land. You can’t make it all add up with CHP. You would need many Wales’-worth of bioenergy or similar ways to make it work.

    Maybe we should carry on using boilers and power with low carbon gas – perhaps with electrolysis [A "yay !" from the audience. Well, me, actually]. Hydrogen – the the 2050 Calculator there is no way to put it back into the beginning of the diagram – but it could provide low carbon heat, industry and transport. At the moment we can only put Hydrogen into Transport [in the 2050 Calculator. If we had staff in DECC to do that… It’s Open Source, so if any of you would like to volunteer…

    Plan A of DECC was to convert the UK to using lots of electricity [from nuclear power and other low carbon technologies, to move to a low carbon economy], using heat pumps at the consumer end, but there’s a problem in winter [Bill Watts of Max Fordham had already shown a National Grid or Ofgem chart of electricity demand and gas demand over the year, day by day. Electricity demand (in blue) fluctuates a little, but it pretty regular over the year. Gas demand (in red) however, fluctuates a lot, and is perhaps 6 to 10 times larger in winter than in summer.]

    If [you abandon Plan A - "electrification of everything"] and do it the other way, you will need a large amount of Hydrogen, and a large Hydrogen store. Electrolysers are expensive, but we are doing/have done a feasibility study with ITM Power – to show the cost of electrolysers versus the cost of your wind turbines [My comment : but you're going to need your wind turbines to run your electrolysers with their "spare" or "curtailed" kilowatt hours.]

    [David Mackay, in questions from the floor] We can glue together [some elements]. Maybe the coming smart controls will help…can help save a load of energy. PassivSystems – control such things as your return temperature [in your Communal or District Heating]…instead of suing your heat provider [a reference to James Gallagher who has problems with his communal heating system at Parkside SE10], maybe you could use smart controls…

    [Question] Isn’t using smart controls like putting a Pirelli tyre on a Ford Cortina ? Legacy of poor CHP/DH systems…

    [David MacKay in response to the question of insulation] If insulation were enormously expensve, we wouldn’t have to be so enthusastic about it…We need a well-targeted research programme looking at deep retrofitting, instead of letting it all [heat] out.

    [Adrian Gault, Committee on Climate Change] We need an effective Government programme to deliver that. Don’t have it in the Green Deal. We did have it [in the previous programmes of CERT and CESP], but since they were cancelled in favour of the Green Deal, it’s gone off a cliff [levels of insulation installations]. We would like to see an initiative on low cost insulation expanded. The Green Deal is not producing a response.

    [Bill Watts, Max Fordham] Agree that energy efficiency won’t run on its own. But it’s difficult to do. Not talking about automatons/automation. Need a lot of pressure on this.

    [Adrian Gault] Maybe a street-by-street approach…

    [Michael Trousdell, Arup] Maybe a rule like you can’t sell a house unless you’ve had the insulation done…

    [Peter Clegg] … We can do heat recovery – scavenging the heat from power stations, but we must also de-carbonise the energy supply – this is a key part of the jigsaw.

  • Fiefdom of Information

    Posted on April 27th, 2014 Jo 1 comment

    Sigh. I think I’m going to need to start sending out Freedom of Information requests… Several cups of tea later…


    To: Information Rights Unit, Department for Business, Innovation & Skills, 5th Floor, Victoria 3, 1 Victoria Street, London SW1H OET

    28th April 2014

    Request to the Department of Energy and Climate Change

    Re: Policy and Strategy for North Sea Natural Gas Fields Depletion

    Dear Madam / Sir,

    I researching the history of the development of the gas industry in the United Kingdom, and some of the parallel evolution of the industry in the United States of America and mainland Europe.

    In looking at the period of the mid- to late- 1960s, and the British decision to transition from manufactured gas to Natural Gas supplies, I have been able to answer some of my questions, but not all of them, so far.

    From a variety of sources, I have been able to determine that there were contingency plans to provide substitutes for Natural Gas, either to solve technical problems in the grid conversion away from town gas, or to compensate should North Sea Natural Gas production growth be sluggish, or demand growth higher than anticipated.

    Technologies included the enriching of “lean” hydrogen-rich synthesis gas (reformed from a range of light hydrocarbons, by-products of the petroleum refining industry); Synthetic Natural Gas (SNG) and methane-“rich” gas making processes; and simple mixtures of light hydrocarbons with air.

    In the National Archives Cmd/Cmnd/Command document 3438 “Fuel Policy. Presented to Parliament by the Minister of Power Nov 1967″, I found discussion on how North Sea gas fields could best be exploited, and about expected depletion rates, and that this could promote further exploration and discovery.

    In a range of books and papers of the time, I have found some discussion about options to increase imports of Natural Gas, either by the shipping of Liquified Natural Gas (LNG) or by pipeline from The Netherlands.

    Current British policy in respect of Natural Gas supplies appears to rest on “pipeline diplomacy”, ensuring imports through continued co-operation with partner supplier countries and international organisations.

    I remain unclear about what official technological or structural strategy may exist to bridge the gap between depleting North Sea Natural Gas supplies and continued strong demand, in the event of failure of this policy.

    It is clear from my research into early gas field development that depletion is inevitable, and that although some production can be restored with various techniques, that eventually wells become uneconomic, no matter what the size of the original gas field.

    To my mind, it seems unthinkable that the depletion of the North Sea gas fields was unanticipated, and yet I have yet to find comprehensive policy statements that cover this eventuality and answer its needs.

    Under the Freedom of Information Act (2000), I am requesting information to answer the following questions :-

    1.   At the time of European exploration for Natural Gas in the period 1948 to 1965, and the British conversion from manufactured gas to Natural Gas, in the period 1966 to 1977, what was HM Government’s policy to compensate for the eventual depletion of the North Sea gas fields ?

    2.   What negotiations and agreements were made between HM Government and the nationalised gas industry between 1948 and 1986; and between HM Government and the privatised gas industry between 1986 and today regarding the projections of decline in gas production from the UK Continental Shelf, and any compensating strategy, such as the development of unconventional gas resources, such as shale gas ?

    3.   Is there any policy or strategy to restore the SNG (Synthetic Natural Gas) production capacity of the UK in the event of a longstanding crisis emerging, for example from a sharp rise in imported Natural Gas costs or geopolitical upheaval ?

    4.   Has HM Government any plan to acquire the Intellectual Property rights to SNG production technology, whether from British Gas/Centrica or any other private enterprise, especially for the slagging version of the Lurgi gasifier technology ?

    5.   Has HM Government any stated policy intention to launch new research and development into, or pilot demonstrations of, SNG ?

    6.   Does HM Government have any clearly-defined policy on the production and use of manufactured gas of any type ? If so, please can I know references for the documents ?

    7.   Does HM Government anticipate that manufactured gas production could need to increase in order to support the production of synthetic liquid vehicle fuels; and if so, which technologies are to be considered ?

    Thank you for your attention to my request for information.

    Regards,

    jo.

  • On Having to Start Somewhere

    Posted on March 15th, 2014 Jo No comments

    In the last few weeks I have heard a lot of noble but futile hopes on the subject of carbon dioxide emissions control.

    People always seem to want to project too far into the future and lay out their wonder solution – something that is just too advanced enough to be attainable through any of the means we currently have at our disposal. It is impossible to imagine how the gulf can be bridged between the configuration of things today and their chosen future solutions.

    Naive civil servants strongly believe in a massive programme of new nuclear power. Head-in-the-clouds climate change consultants and engineers who should know otherwise believe in widespread Carbon Capture and Storage or CCS. MBA students believe in carbon pricing, with carbon trading, or a flat carbon tax. Social engineers believe in significant reductions in energy intensity and energy consumer behaviour change, and economists believe in huge cost reductions for all forms of renewable electricity generation.

    To make any progress at all, we need to start where we are. Our economic system has strong emissions-dependent components that can easily be projected to fight off contenders. The thing is, you can’t take a whole layer of bricks out of a Jenga stack without severe degradation of its stability. You need to work with the stack as it is, with all the balances and stresses that already exist. It is too hard to attempt to change everything at once, and the glowing ethereal light of the future is just too ghostly to snatch a hold of without a firm grasp on an appropriate practical rather than spiritual guide.

    Here’s part of an email exchange in which I strive for pragmatism in the face of what I perceive as a lack of realism.


    To: Jo

    I read your article with interest. You have focused on energy, whereas I
    tend to focus on total resource. CCS does make sense and should be pushed
    forward with real drive as existing power stations can be cleaned up with it
    and enjoy a much longer life. Establishing CCS is cheaper than building new
    nuclear and uses far less resources. Furthermore, CCS should be used on new
    gas and biomass plants in the future.

    What we are lacking at the moment is any politician with vision in this
    space. Through a combination of boiler upgrades, insulation, appliance
    upgrades and behaviour change, it is straight forward to halve domestic
    energy use. Businesses are starting to make real headway with energy
    savings. We can therefore maintain a current total energy demand for the
    foreseeable future.

    To service this demand, we should continue to eke out every last effective
    joule from the current generating stock by adding cleansing kit to the dirty
    performers. While this is being done, we can continue to develop renewable
    energy and localised systems which can help to reduce the base load
    requirement even further.

    From an operational perspective, CCS has stagnated over the last 8 years, so
    a test plant needs to be put in place as soon as possible.

    The biggest issue for me is that, through political meddling and the
    unintended consequences of ill-thought out subsidies, the market has been
    skewed in such a way that the probability of a black-out next year is very
    high indeed.

    Green gas is invisible in many people’s thinking, but the latest House of
    Lords Report highlighted its potential.

    Vested interests are winning hands down in the stand-off with the big
    picture!


    From: Jo

    What is the title of the House of Lords report to which you refer ?

    Sadly, I am old enough to remember Carbon Capture and Storage (CCS)
    the first time the notion went around the block, so I’d say that
    progress has been thin for 30 years rather than 8.

    Original proposals for CCS included sequestration at the bottom of the
    ocean, which have only recently been ruled out as the study of global
    ocean circulation has discovered more complex looping of deep and
    shallower waters that originally modelled – the carbon dioxide would
    come back up to the surface waters eventually…

    The only way, I believe, that CCS can be made to work is by creating a
    value stream from the actual carbon dioxide, and I don’t mean Enhanced
    Oil Recovery (EOR).

    And I also definitely do not mean carbon dioxide emissions pricing,
    taxation or credit trading. The forces against an
    investment-influencing carbon price are strong, if you analyse the
    games going on in the various economic system components. I do not
    believe that a strong carbon price can be asserted when major economic
    components are locked into carbon – such as the major energy producers
    and suppliers, and some parts of industry, and transport.

    Also, carbon pricing is designed to be cost-efficient, as markets will
    always find the lowest marginal pricing for any externality in fines
    or charges – which is essentially what carbon dioxide emissions are.
    The EU Emissions Trading Scheme was bound to deliver a low carbon
    price – that’s exactly what the economists predicted in modelling
    carbon pricing.

    I cannot see that a carbon price could be imposed that was more than
    5% of the base commodity trade price. At those levels, the carbon
    price is just an irritation to pass on to end consumers.

    The main problem is that charging for emissions does not alter
    investment decisions. Just like fines for pollution do not change the
    risks for future pollution. I think that we should stop believing in
    negative charging and start backing positive investment in the energy
    transition.

    You write “You have focused on energy, whereas I tend to focus on
    total resource.” I assume you mean the infrastructure and trading
    systems. My understanding leads me to expect that in the current
    continuing economic stress, solutions to the energy crisis will indeed
    need to re-use existing plant and infrastructure, which is why I
    think that Renewable Gas is a viable option for decarbonising total
    energy supply – it slots right in to substitute for Natural Gas.

    My way to “eke out every last effective joule from the current
    generating stock” is to clean up the fuel, rather than battle
    thermodynamics and capture the carbon dioxide that comes out the back
    end. Although I also recommend carbon recycling to reduce the need for
    input feedstock.

    I completely agree that energy efficiency – cutting energy demand
    through insulation and so on – is essential. But there needs to be a
    fundamental change in the way that profits are made in the energy
    sector before this will happen in a significant way. Currently it
    remains in the best interests of energy production and supply
    companies to produce and supply as much energy as they can, as they
    have a duty to their shareholders to return a profit through high
    sales of their primary products.

    “Vested interests” have every right under legally-binding trade
    agreements to maximise their profits through the highest possible
    sales in a market that is virtually a monopoly. I don’t think this can
    be challenged, not even by climate change science. I think the way
    forward is to change the commodities upon which the energy sector
    thrives. If products from the energy sector include insulation and
    other kinds of efficiency, and if the energy sector companies can
    continue to make sales of these products, then they can reasonably be
    expected to sell less energy. I’m suggesting that energy reduction
    services need to have a lease component.

    Although Alistair Buchanan formerly of Ofgem is right about the
    electricity generation margins slipping really low in the next few
    winters, there are STOR contracts that National Grid have been working
    on, which should keep the lights on, unless Russia turn off the gas
    taps, which is something nobody can do anything much about – not BP,
    nor our diplomatic corps, the GECF (the gas OPEC), nor the WTO.


  • Failing Narratives : Carbon Culprits

    Posted on March 14th, 2014 Jo No comments

    In the last few weeks I have attended a number of well-intentioned meetings on advances in the field of carbon dioxide emissions mitigation. My overall impression is that there are several failing narratives to be encountered if you make even the shallowest foray into the murky mix of politics and energy engineering.

    As somebody rightly pointed out, no capitalist worth their share price is going to spend real money in the current economic environment on new kit, even if they have asset class status – so all advances will necessarily be driven by public subsidies – in fact, significant technological advance has only ever been accomplished by state support.

    Disturbingly, free money is also being demanded to roll out decades-old low carbon energy technology – nuclear power, wind power, green gas, solar photovoltaics – so it seems to me the only way we will ever get appropriate levels of renewable energy deployment is by directed, positive public investment.

    More to the point, we are now in an era where nobody at all is prepared to spend any serious money without a lucrative slap on the back, and reasons beyond reasons are being deployed to justify this position. For example, the gas-fired power plant operators make claims that the increase in wind power is threatening their profitability, so they are refusing to built new electricity generation capacity without generous handouts. This will be the Capacity Mechanism, and will keep gas power plants from being mothballed. Yes, there is data to support their complaint, but it does still seem like whinging and special pleading.

    And the UK Government’s drooling and desperate fixation with new nuclear power has thrown the European Commission into a tizzy about the fizzy promises of “strike price” guaranteed sales returns for the future atomic electricity generation.

    But here, I want to contrast two other energy-polity dialogues – one for developing an invaluable energy resource, and the other about throwing money down a hole.

    First, let’s take the white elephant. Royal Dutch Shell has for many years been lobbying for state financial support to pump carbon dioxide down holes in the ground. Various oil and gas industry engineers have been selling this idea to governments, federal and sub-federal for decades, and even acted as consultants to the Civil Society process on emissions control – you just need to read the United Nations’ IPCC Climate Change Assessment Report and Special Report output to detect the filigree of a trace of geoengineering fingers scratching their meaning into global intention. Let us take your nasty, noxious carbon dioxide, they whisper suggestively, and push it down a hole, out of sight and out of accounting mind, but don’t forget to slip us a huge cheque for doing so. You know, they add, we could even do it cost-effectively, by producing more oil and gas from emptying wells, resulting from pumping the carbon dioxide into them. Enhanced Oil Recovery – or EOR – would of course mean that some of the carbon dioxide pumped underground would in effect come out again in the form of the flue gas from the combustion of new fossil fuels, but anyway…

    And governments love being seen to be doing something, anything, really, about climate change, as long as it’s not too complicated, and involves big players who should be trustworthy. So, you get the Peterhead project picking up a fat cheque for a trial of Carbon Capture and Storage (CCS) in Scotland, and the sidestep hint that if Scotland decides to become independent, this project money could be lost…But this project doesn’t involve much of anything that is really new. The power station that will be used is a liability that ought to be closing now, really, according to some. And the trial will only last for ten years. There will be no EOR – at least – not in the public statements, but this plan could lead the way.

    All of this is like pushing a fat kid up a shiny slide. Once Government take their greasy Treasury hands off the project, the whole narrative will fail, falling to an ignominious muddy end. This perhaps explains the underlying desperation of many – CCS is the only major engineering response to emissions that many people can think of – because they cannot imagine burning less fossil fuels. So this wobbling effigy has to be kept on the top of the pedestal. And so I have enjoyed two identical Shell presentations on the theme of the Peterhead project in as many weeks. CCS must be obeyed.

    But, all the same, it’s big money. And glaring yellow and red photo opps. You can’t miss it. And then, at the other end of the scale of subsidies, is biogas. With currently low production volumes, and complexities attached to its utilisation, anaerobically digesting wastes of all kinds and capturing the gas for use as a fuel, is a kind of token technology to many, only justified because methane is a much stronger greenhouse gas than carbon dioxide, so it needs to be burned.

    The subsidy arrangements for many renewable energy technologies are in flux. Subsidies for green gas will be reconsidered and reformulated in April, and will probably experience a degression – a hand taken off the tiller of driving energy change.

    At an evening biogas briefing given by Rushlight this week, I could almost smell a whiff of despair and disappointment in the levels of official support for green gas. It was freely admitted that not all the planned projects around the country will see completion, not only because of the prevailing economic climate, but because of the vagaries of feedstock availability, and the complexity of gas cleaning regulations.

    There was light in the tunnel, though, even if the end had not been reached – a new Quality Protocol for upgrading biogas to biomethane, for injection into the gas grid, has been established. You won’t find it on the official UK Goverment website, apparently, as it has fallen through the cracks of the rebranding to gov.uk, but here it is, and it’s from the Environment Agency, so it’s official :-

    http://www.greengas.org.uk/pdf/biomethane-qp.pdf

    http://www.r-e-a.net/news/rea-welcomes-environment-agencys-updated-anaerobic-digestion-quality-protocol

    http://adbiogas.co.uk/2014/01/30/biomethane-qp-could-boost-renewable-gas-to-grid-market/
    http://adbiogas.co.uk/2014/01/30/biomethane-quality-protocol-published/

    Here’s some background :-

    http://www.environment-agency.gov.uk/aboutus/wfo/epow/124111.aspx

    To get some picture of the mess that British green energy policy is in, all you need do is take a glance at Germany and Denmark, where green gas is considered the “third leg of the stool”, stabilising renewable energy supply with easily-stored low carbon gas, to balance out the peaks and troughs in wind power and solar power provision.

    Green gas should not be considered a nice-to-have minor addition to the solutions portfolio in my view. The potential to de-carbonise the energy gas supply is huge, and the UK are missing a trick here – the big money is being ladled onto the “incumbents” – the big energy companies who want to carry on burning fossil fuels but sweep their emissions under the North Sea salt cavern carpet with CCS, whilst the beer change is being reluctantly handed out as a guilt offering to people seeking genuinely low carbon energy production.

    Seriously – where the exoplanet are we at ?

  • In Confab : Paul Elsner

    Posted on January 23rd, 2014 Jo No comments

    Dr Paul Elsner of Birkbeck College at the University of London gave up some of his valuable time for me today at his little bijou garret-style office in Bloomsbury in Central London, with an excellent, redeeming view of the British Telecom Tower. Leader of the Energy and Climate Change module on Birkbeck’s Climate Change Management programme, he offered me tea and topical information on Renewable Energy, and some advice on discipline in authorship.

    He unpacked the recent whirlwind of optimism surrounding the exploitation of Shale Gas and Shale Oil, and how Climate Change policy is perhaps taking a step back. He said that we have to accept that this is the way the world is at the moment.

    I indicated that I don’t have much confidence in the “Shale Bubble”. I consider it mostly as a public relations exercise – and that there are special conditions in the United States of America where all this propaganda comes from. I said that there are several factors that mean the progress with low carbon fuels continues to be essential, and that Renewable Gas is likely to be key.

    1. First of all, the major energy companies, the oil and gas companies, are not in a healthy financial state to make huge investment. For example, BP has just had the legal ruling that there will be no limit to the amount of compensation claims they will have to face over the Deepwater Horizon disaster. Royal Dutch Shell meanwhile has just had a serious quarterly profit warning – and if that is mostly due to constrained sales (“Peak Oil Demand”) because of economic collapse, that doesn’t help them with the kind of aggressive “discovery” they need to continue with to keep up their Reserves to Production ratio (the amount of proven resources they have on their books). These are not the only problems being faced in the industry. This problem with future anticipated capitalisation means that Big Oil and Gas cannot possibly look at major transitions into Renewable Electricity, so it would be pointless to ask, or try to construct a Carbon Market to force it to happen.

    2. Secondly, despite claims of large reserves of Shale Gas and Shale Oil, ripe for the exploitation of, even major bodies are not anticipating that Peak Oil and Peak Natural Gas will be delayed by many years by the “Shale Gale”. The reservoir characteristics of unconventional fossil fuel fields do not mature in the same way as conventional ones. This means that depletion scenarios for fossil fuels are still as relevant to consider as the decades prior to horizontal drilling and hydraulic fracturing (“fracking”).

    3. Thirdly, the reservoir characteristics of conventional fossil fuel fields yet to exploit, especially in terms of chemical composition, are drifting towards increasingly “sour” conditions – with sigificant levels of hydrogen sulfide and carbon dioxide in them. The sulphur must be removed for a variety of reasons, but the carbon dioxide remains an issue. The answer until recently from policy people would have been Carbon Capture and Storage or CCS. Carbon dioxide should be washed from acid Natural Gas and sequestered under the ocean in salt caverns that previously held fossil hydrocarbons. It was hoped that Carbon Markets and other forms of carbon pricing would have assisted with the payment for CCS. However, recently there has been reduced confidence that this will be significant.

    Renewable Gas is an answer to all three of these issues. It can easily be pursued by the big players in the current energy provision system, with far less investment than wholesale change would demand. It can address concerns of gas resource depletion at a global scale, the onset of which could occur within 20 to 25 years. And it can be deployed to bring poor conventional fossil fuels into consideration for exploitation in the current time – answering regional gas resource depletion.

    Outside, daffodils were blooming in Tavistock Square. In January, yes. The “freaky” weather continues…

  • Gain in Transmission

    Posted on January 13th, 2014 Jo No comments

    It constantly amazes and intrigues me how human individuals operate in networks to formulate, clarify and standardise ideas, tools, machines, procedures and systems. Several decades ago, Renewable Electricity from sources such as wind power was considered idealistic vapourware, esoteric, unworkable and uncertain, and now it’s a mainstream generator of reliable electricity in the UK’s National Grid. Who would have thought that invisible, odourless, tasteless gas phase chemicals would heat our homes ? It’s now just so normal, it’s impossible to imagine that Natural Gas was once considered to be so insignificant that it was vented – not even flared – from oil wells.

    Judging by the sheer number of people working on aspects of Renewable Gas, I expect this too to be mainstream in the energy sector within a decade. What do others think ? I have begun the process of asking, for example, see below.

    =x=x=x=x=x=x=x=x=

    from: Jo Abbess
    to: Richard A. Sears
    date: Mon, May 2, 2011 at 11:59 PM
    subject: Question from your TED talk

    Dear [Professor] Sears,

    I was intrigued by your TED talk that I recently viewed :-

    http://www.ted.com/talks/richard_sears_planning_for_the_end_of_oil.html

    Yes, I am interested in the idea of “printing” solar cells, which is what I think you might be alluding to with your reference to abalone shells.

    But I am more interested in what you base your estimate of “Peak Gas” on. I recently did some very basic modelling of hydrocarbon resources and electricity, which look somewhat different from the IEA and EIA work and reports from BP and Royal Dutch Shell. My conclusion was that Peak Oil is roughly now, Peak Natural Gas will be around 2030, and Peak Electricity around 2060 :-

    http://www.joabbess.com/2011/02/11/future-energy-tipping-points/

    I am going to try to improve these charts before I submit my MSc Masters Thesis, so I am trying to find out what other people base their projections on. Could you help me by pointing me at the basis of your assessment of Peak Natural Gas ?

    Thank you,

    jo.

    =x=x=x=x=x=x=

    from: Richard A. Sears
    to: Jo Abbess
    date: Thu, Oct 24, 2013 at 5:30 PM

    Jo,

    I am just now finding a number of old emails that got archived (and ignored) when I moved from MIT to Stanford a few years ago. A quick answer is that I did about what Hubbert did in 1956. No detailed statistical modeling, just look at the trends, think about what’s happening in the industry, and make what seem like reasonable statements about it.

    A number of interesting things have happened just in the last two years since you wrote to me. Significantly, US oil production is on the rise. When you count all hydrocarbon liquids, the US is or will soon be, the world largest producer. This just goes to one of my points from TED. Don’t expect oil and gas to go away any time soon. There are plenty of molecules out there. I first said this internally at Shell in the mid 1980’s when I was Manager of Exploration Economics and since then I’ve felt that I got it about right.

    I did just look at your website and would caution you about extrapolating very recent trends into the future. The rate of growth in shale gas production has slowed, but there’s an important economic factor driving that. Gas prices in the US are very low compared to oil. With the development of fraccing technology to enable oil and liquids production from shale formations, the industry has shifted their effort to the liquids-rich plays. A few statistics. Gas is currently around $3.50/mcf. On an energy equivalent basis, this equates to an oil price of about $20/barrel. Brent currently sells for $110/barrel and the light oils produced from the shale plays in the US are getting between $90 and $100/barrel, depending on where they can be delivered. As a consequence, in the 3rd quarter of 2013, compared to one year ago, oil well completions are up 18% while natural gas well completions declined 30%.

    Yes, you are right. Printing solar cells is an example of what I was talking about with Abalone shells. Similarly, what if you had paint that as it dried would self assemble into linked solar cells and your entire house is now generating electricity. I was totally amazed at the number of people that didn’t actually think about what I was saying and called me an !d!*t for imagining that I was going to transform coal itself into some magical new molecule. [...]

    In any case, I think it’s good that you’re thinking about these problems, and importantly it appears from your website that you’re thinking about the system and its complexity.

    Best regards,
    Rich Sears

    Richard A. Sears
    Visiting Scientist
    MIT Energy Initiative
    Massachusetts Institute of Technology

    =x=x=x=x=x=x=x=x=x=

    from: Jo Abbess
    to: Richard A Sears
    sent: Monday, May 02, 2011 3:59 PM

    Dear [Professor] Sears,

    Many thanks for your reply.

    I had kinda given up of ever hearing back from you, so it’s lovely to
    read your thoughts.

    May I blog them ?

    Regards,

    jo.

    =x=x=x=x=x=x=x=

    from: Richard A Sears
    date: Fri, Oct 25, 2013 at 5:03 PM
    to: Jo Abbess

    Jo,

    I have personally avoided blogging because I don’t want to put up with people writing mean comments about me. But the data is worth sharing. You should also know the sources of that data otherwise you open yourself to more criticism.

    The data on production comes from the International Energy Agency and a research firm PIRA. All of it was in recent press releases. The Energy Information Administration makes similar projections about future production. The data on well completions was recently released by API.

    No need to reference me. The data is out there for all to see. But if you do, fair warning. You will get stupid comments about how I used to be a VP at Shell so of course these are the things I’m going to say. [...]

    By the way, there’s something else that’s very interesting in the world of peak oil and various peaks. I have long believed, as hinted in my TED talk that the most important aspect of peak oil is the demand driven phenomena, not the supply side. It’s worth noting in this context that US oil consumption peaked in 2005 and has declined about 10% since then. This data can be found easily in the BP Statistical Report on World Energy. This is real and is a result of economic shifts, greater efficiency, and the penetration of renewables. Future energy projections (references above) show that this trend continues. A big component of US energy consumption is gasoline, and US gasoline consumption peaked in 2007. I think that data can be found at http://www.eia.gov, although I haven’t looked for it lately. It’s a little factoid that I think I remember.

    Rich

    Richard A. Sears
    Consulting Professor
    Department of Energy Resources Engineering
    Stanford University

    =x=x=x=x=x=x=x=x=

    from: Jo Abbess
    to: Richard A Sears
    date: Sun, Jan 12, 2014 at 11:47 AM

    Dear Professor Sears,

    HNY 2014 !

    This year I am hoping to attempt the climb on my own personal K2 by writing an academic book on Renewable Gas – sustainable, low-to-zero carbon emissions gas phase fuels.

    I am not a chemist, nor a chemical engineer, and so I would value any suggestions on who I should approach in the gas (and oil) industry to interview about projects that lean in this direction.

    Examples would be :-

    * Power-to-Gas : Using “spare” wind power to make Renewable Hydrogen – for example by electrolysis of water. Part of the German Power-to-Gas policy. Some hydrogen can be added to gas grids safely without changing regulations, pipework or end appliances.

    * Methanation : Using Renewable Hydrogen and young or recycled carbon gas to make methane (using the energy from “spare” wind power, for example). Also part of the German Power-to-Gas policy.

    NB “Young” carbon would be either carbon monoxide or carbon dioxide, and be sourced from biomass, Direct Air Capture, or from the ocean. “Old” carbon would come from the “deeper” geological carbon cycle, such as from fossil fuel, or industrial processes such as the manufacture of chemicals from minerals and/or rocks.

    Precursors to Renewable Gas also interest me, as transitions are important – transitions from a totally fossil fuel-based gas system to a sustainable gas system. I have recently looked at some basic analysis on the chemistry of Natural Gas, and its refinery. It seems that methanation could be useful in making sour gas available as sweetened, as long as Renewable Hydrogen is developed for this purpose. It seems that there is a lot of sour gas in remaining reserves, and the kind of CCS (Carbon Capture and Storage) that would be required under emissions controls could make sour gas too expensive to use if it was just washed of acids.

    I don’t think the future of energy will be completely electrified – it will take a very long time to roll out 100% Renewable Electricity and there will always be problems transitioning out of liquid fuels to electricity in vehicular transportation.

    If you could suggest any names, organisations, university departments, companies, governance bodies that I should contact, or research papers that I should read, I would be highly grateful.

    Many thanks,

    jo.

  • Curmudgeons Happen

    Posted on January 5th, 2014 Jo 1 comment

    I was talking with people at my friend’s big birthday bash yesterday. I mentioned I’m writing about Renewable Gas, and this led to a variety of conversations. Here is a kind of summary of one of the threads, involving several people.

    Why do people continue to insist that the wind turbine at Reading uses more energy than it generates ?

    Would it still be there if it wasn’t producing power ? Does David Cameron still have a wind turbine on his roof ? No. It wasn’t working, so it was taken down. I would ask – what are their sources of information ? What newspapers and websites do they read ?

    They say that the wind turbine at Reading is just there for show.

    Ah. The “Potemkin Village” meme – an idyllic-looking setting, but everything’s faked. The Chinese painting the desert green, etc.

    And then there are people that say that the only reason wind farms continue to make money is because they run the turbines inefficiently to get the subsidies.

    Ah. The “De-rating Machine” meme. You want to compare and contrast. Look at the amount of money, resources, time and tax breaks being poured into the UK Continental Shelf, and Shale Gas, by the current Government.

    Every new technology needs a kick start, a leg up. You need to read some of the reports on wind power as an asset – for example, the Offshore Valuation – showing a Net Present Value. After it’s all deployed, even with the costs of re-powering at the end of turbine life, offshore North Sea wind power will be a genuine asset.

    What I don’t understand is, why do people continue to complain that wind turbines spoil the view ? Look at the arguments about the Jurassic Coast in Dorset.

    I have contacts there who forward me emails about the disputes. The yachtsmen of Poole are in open rebellion because the wind turbines will be set in in their channels ! The tourists will still come though, and that’s what really counts. People in Dorset just appear to love arguing, and you’ve got some people doing good impressions of curmudgeons at the head of the branches of the Campaign for the Protection of Rural England (CPRE) and English Heritage.

    There are so many people who resist renewable energy, and refuse to accept we need to act on climate change. Why do they need to be so contrarian ? I meet them all the time.

    People don’t like change, but change happens. The majority of people accept that climate change is significant enough to act on, and the majority of people want renewable energy. It may not seem like that though. It depends on who you talk with. There’s a small number of people who vocalise scepticism and who have a disproportionate effect. I expect you are talking about people who are aged 55 and above ?

    Example : “Climate Change ? Haw haw haw !” and “Wind turbines ? They don’t work !” This is a cohort problem. All the nasty white racists are dying and being buried with respect by black undertakers. All the rabid xenophobes are in nursing homes being cared for in dignity by “foreigners”. Pretty soon Nigel Lawson could suffer from vascular dementia and be unable to appear on television.

    The media have been insisting that they need a balance of views, but ignoring the fact that the climate change “sceptics” are very small in number and not backed up by the science.

    Why does Nigel Lawson, with all his access and privilege, continue to insist that global warming is not a problem ?

    Fortunately, even though he’s “establishment” and has more influence than he really should have, the people that are really in charge know better. He should talk to the climate change scientists – the Met Office continue to invite sceptics to come and talk with them. He should talk to people in the energy sector – engineers and project managers. He should talk to people in the cross-party Parliamentary groups who have access to the information from the expert Select Committees.

    And what about Owen Paterson ? I cannot understand why they put a climate change sceptic in charge of the Department of the Environment.

    Well, we’ve always done that, haven’t we ? Put Ministers in Departments they know nothing about, so that they can learn their briefs. We keep putting smokers in charge of health policy. Why do you think he was put in there ?

    To pacify the Conservative Party.

    But I know Conservative Party activists who are very much in favour of renewable energy and understand the problems of climate change. It’s not the whole Party.

    We need to convince so many people.

    We only need to convince the people who matter. And anyway, we don’t need to do any convincing. Leaders in the energy industry, in engineering, in science, in Government (the real government is the Civil Service), the Parliament, they already understand the risks of climate change and the need for a major energy transition.

    People should continue to express their views, but people only vote on economic values. That’s why Ed Miliband has pushed the issue of the cost of energy – to try to bring energy to the forefront of political debate.

    What about nuclear fusion ?

    Nuclear fusion has been 35 years away for the last 35 years. It would be nice to have, because it could really solve the problem. Plus, it keeps smart people busy.

    What about conventional nuclear fission power ?

    I say, “Let them try !” The Hinkley Point C deal has so many holes in it, it’s nearly collapsed several times. I’m sure they will continue to try to build it, but I’m not confident they will finish it. Nuclear power as an industry is basically washed up in my view, despite the lengths that it goes to to influence society and lobby the Government.

    It’s going to be too late to answer serious and urgent problems – there is an energy crunch approaching fast, and the only things that can answer it are quick-to-build options such as new gas-fired power plants, wind farms, solar farms, demand reduction systems such as shutting down industry and smart fridges.

    How can the energy companies turn your fridge off ?

    If the appliances have the right software, simple frequency modulation of the power supply should be sufficient to trip fridges and freezers off. Or you could connect them to the Internet via a gateway. The problem is peak power demand periods, twice a day, the evening peak worse than the morning. There has been some progress in managing this due to switching light bulbs and efficient appliances, but it’s still critical. Alistair Buchanan, ex of Ofgem, went out on a limb to say that we could lose all our power production margins within a couple of years, in winter.

    But the refrigerators are being opened and closed in the early evening, so it would be the wrong time of day to switch them off. And anyway, don’t the fridges stop using power when they’re down to temperature ?

    Some of these things will need to be imposed regardless of concerns, because control of peak power demand is critical. Smart fridges may be some years away, but the National Grid already have contracts with major energy users to shed their load under certain circumstances. Certain key elements of the energy infrastructure will be pushed through. They will need to be pushed through, because the energy crunch is imminent.

    The time for democracy was ten years ago. To get better democracy you need much more education. Fortunately, young people (which includes young journalists) are getting that education. If you don’t want to be irritated by the views of climate change and energy sceptics, don’t bother to read the Daily Telegraph, the Daily Express, the Daily Mail, the online Register or the Spectator. The old school journalists love to keep scandal alive, even though any reason to doubt climate change science and renewable energy died in the 1980s.

    Although I’ve long since stopped trusting what a journalist writes, I’m one of those people who think that you should read those sources.

    I must admit I do myself from time to time, but just for entertainment.

  • Making The Sour Sweet

    Posted on January 1st, 2014 Jo No comments

    In the long view, some things are inevitable, and I don’t just mean death and taxes. Within the lifetime of children born today, there must be a complete transformation in energy. The future is renewable, and carefully deployed renewable energy systems can be reliable, sustainable and low cost, besides being low in carbon dioxide emissions to air. This climate safety response is also the answer to a degradation and decline in high quality mineral hydrocarbons – the so-called “fossil” fuels. Over the course of 2014 I shall be writing about Renewable Gas – sustainable, low emissions gas fuels made on the surface of the earth without recourse to mining for energy. Renewable Gas can store the energy from currently underused Renewable Electricity from major producers such as wind and solar farms, and help to balance out power we capture from the variable wind and sun. Key chemical players in these fuels : hydrogen, methane, carbon monoxide and carbon dioxide. Key chemistry : how to use hydrogen to recycle the carbon oxides to methane. How we get from here to there is incredibly important, and interestingly, methods and techniques for increasing the production volumes of Renewable Gas will be useful for the gradually fading fossil fuel industry. Much of the world’s remaining easily accessible Natural Gas is “sour” – laced with high concentrations of hydrogen sulfide and carbon dioxide. Hydrogen sulfide needs to be removed from the gas, but carbon dioxide can be recycled into methane, raising the quality of the gas. We can preserve the Arctic from fossil gas exploitation, and save ourselves from this economic burden and ecological risk, by employing relatively cheap ways to upgrade sour Natural Gas, from Iran, for example, while we are on the decades-long road of transitioning to Renewable Gas. The new burn is coming.

  • Champagne with Michael Caine

    Posted on December 11th, 2013 Jo No comments

    It was like a very bad sitcom from 1983 at the House of Commons this afternoon. “You saw Ed Balls running around in full Santa outfit ?” “Yeah ! The proper job.” “You know what we should do ? Put a piece of misteltoe above that door that everyone has to go through.” “You do it. I’ve heard you’re very good with sticky-backed plastic…”

    Once again Alan Whitehead MP has put on a marvellous Christmas reception of the All Party Parliamentary Renewable And Sustainable Energy Group, or PRASEG. The one flute of champagne in the desert-like heat of the Terrace Pavilion at the Houses of Parliament was enough to turn me the colour of beetroot and tomato soup, so when Alan despaired of getting anything altered, I took on the role of asking the lovely Pavilion staff to turn the heating down, what with Climate Change and everything, which they nobly obliged to do.

    In the meantime, I was invited onto the terrace overlooking the Thames by Christopher Maltin of Organic Power, to refresh myself. The winter night had fallen like a grey duvet, and what with the lingering fog and the lighting schemes for famous buildings, and the purple-blue sky behind it all, it was quite romantic out there. But very, very cold, so we didn’t discuss biogas and biosyngas for long.

    Back in the Pavilion, we were addressed by the fabulously debonair Lord Deben, John Gummer, sporting a cheery red pocket kerchief in his dark suit. During his talk, announcing the Committee on Climate Change confirmation of the Fourth Carbon Budget, and urging us to be “missionary” in influencing others over Climate Change mitigation, across the room I espied a younger gentleman who had, shall I say, a rather keen appearance. Was he a journalist, I asked myself, paying so much attention ? In fact, wasn’t he Leo Hickman, formerly of The Guardian ? No, he was not, but it was a bit shadowed at that end of the room, so I can’t blame myself for this mistake.

    When he had finally worked the room and ended up talking with me, he turned out to be Jack Tinley, Relationship Manager for Utilities at Lloyds Bank, in other words, in Big Finance, and currently seconded to the UK Government Department of Energy and Climate Change (DECC), so that was what explained his preppiness. I explained my continuing research into Renewable Gas, and he recommended Climate Change Capital for all questions of financing renewable energy, should I encounter any project that needed investment. Very helpful. Although he didn’t know who Leo Hickman is. Talking with him, and the guy from TEQs (Tradable Energy Quotas) was so interesting, I absentmindedly ate some…no… loads of party snacks. I need to make a strong mental note not to eat too many party snacks in future.

    After the illuminating and encouraging speeches from Lord Deben and Alan Whitehead MP, we were delightfully surprised by the attendance of, and an address by, Greg Barker MP, a “drive by speech” according to Alan. I was struck, that with his new specs, “Curly” Greg looks astonishingly like a young Michael Caine. During his speech he said that we ought to put the damaging controversy about energy behind us and move on into a year of great opportunity, now that the House of Lords had approved the Energy Bill. And then he pushed his glasses back up his nose in a way that was so Michael Caine, I nearly laughed out loud. Greg expressed the wish that the energy industry would become a “sexy sector”, at which point I corpsed and had to turn away silently laughing with a hand clamped over my mouth.

    Afterwards, I shook Greg by the hand, and asked if he would please unblock me on Twitter. He asked if I had been posting streams and streams of Tweets, and I said I don’t do that these days. When I suggested that he reminded me of Michael Caine, he was rather amused, but he did check I meant the Michael Caine of the 1960s, not the actor of today.

    Other people I spent time talking to at the PRASEG reception were Professor Dave Elliott of the Open University, and author on renewable energy; Steven English who installs ground source heat pumps; and Steve Browning, formerly of the National Grid; all in the Claverton Energy Research Group forum.

    I explained the foundations of my research into Renewable Gas to a number of people, and used the rhetorical question, “Germany’s doing it, so why can’t we ?” several times. I bet the Chinese are doing it too. I mean they’re doing everything else in renewable energy. In copious quantities, now they’ve seen the light about air pollution.

    I ended the event by having a serious chat with a guy from AMEC, the international engineering firm. He commented that the “Big Six” energy production and supply companies are being joined by smaller companies with new sources of investment capital in delivering new energy infrastructure.

    I said it was clear that “the flight of international capital” had become so bad, it had gone into geostationary orbit, not coming down to land very often, and that funding real projects could be hard.

    I suggested to him that the “Big Six” might need to be broken up, in the light of their edge-of-break-even, being locked into the use of fossil fuels, and the emergence of some of these smaller, more liquid players, such as Infinis.

    I also suggested that large companies such as AMEC should really concentrate on investing in new energy infrastructure projects, as some things, like the wind power development of the North Sea are creating genuine energy assets, easily shown if you consider the price of Natural Gas, which the UK is having to increasingly import.

  • My Generation

    Posted on November 21st, 2013 Jo No comments

    Each of us, be we wise or distracted, are in some way invested in the future, in how the future is for ourselves, and those that come after us. What we do now, we do for the present, because of the past, in anticipation of what is to come, building a foundation, a support, a frame, for the future that will emerge. We save money; we learn new skills; we invest in friendships. And since the medium is the message, we enact the future, making a silhouette, a pattern, of how the future will appear. We lead by doing. We challenge by creating. We teach by learning. We take the step forward that others will in their turn take. And so it is that I have caught the sunshine and made it work for me, because that is one important way in which tomorrow’s power will be made. Today a significant milestone was reached in my rooftop solar photovoltaic electricity generation – 4MWh – four megawatt hours, from a 3kW capacity system, installed on 18 November 2011, just over two years ago. Here are my recent readings :-

    17 November 2013 17:30 3996.5 kWh
    20 November 2013 10:10 3998.5 kWh
    20 November 2013 16:45 3999.0 kWh
    21 November 2013 10:10 3999.1 kWh
    21 November 2013 11:50 3999.4 kWh
    21 November 2013 15:25 4000.2 kWh
    21 November 2013 18:30 4000.2 kWh

  • Economic Ecology

    Posted on October 25th, 2013 Jo No comments

    Managing the balance between, on the one hand, extraction of natural resources from the environment, and on the other hand, economic production, shouldn’t have to be either, or. We shouldn’t value higher throughput and consumption at the expense of exhausting what the Earth can supply. We shouldn’t be “economic” in our ecology, we shouldn’t be penny-pinching and miserly and short-change the Earth. The Earth, after all, is the biosystem that nourishes us. What we should be aiming for is an ecology of economy – a balance in the systems of manufacture, agriculture, industry, mining and trade that doesn’t empty the Earth’s store cupboard. This, at its root, is a conservation strategy, maintaining humanity through a conservative economy. Political conservatives have lost their way. These days they espouse the profligate use of the Earth’s resources by preaching the pursuit of “economic growth”, by sponsoring and promoting free trade, and reversing environmental protection. Some in a neoliberal or capitalist economy may get rich, but they do so at the expense of everybody and everything else. It is time for an ecology in economics.

    Over the course of the next couple of years, in between doing other things, I shall be taking part in a new project called “Joy in Enough”, which seeks to promote economic ecology. One of the key texts of this multi-workstream group is “Enough is Enough”, a book written by Rob Dietz and Dan O’Neill. In their Preface they write :-

    “But how do we share this one planet and provide a high quality of life for all ? The economic orthodoxy in use around the world is not up to the challenge. [...] That strategy, the pursuit of never-ending economic growth has become dysfunctional. With each passing day, we are witnessing more and more uneconomic growth – growth that costs more than it is worth. An economy that chases perpetually increasing production and consumption, always in search of more, stands no chance of achieving a lasting prosperity. [...] Now is the time to change the goal from the madness of more to the ethic of enough, to accept the limits to growth and build an economy that meets our needs without undermining the life-support systems of the planet.”

    One of the outcomes of global capitalism is huge disparities, inequalities between rich and poor, between haves and have-nots. Concern about this is not just esoteric morality – it has consequences on the whole system. Take, for example, a field of grass. No pastoral herder with a flock of goats is going to permit the animals to graze in just one corner of this field, for if they do, part of the grassland will over-grow, and part will become dust or mud, and this will destroy the value of the field for the purposes of grazing. And take another example – wealth distribution in the United Kingdom. Since most people do not have enough capital to live on the proceeds of investment, most people need to earn money for their wealth through working. The recent economic contraction has persuaded companies and the public sector to squeeze more productivity out of a smaller number of employees, or abandon services along with their employees. A simple map of unemployment shows how parts of the British population have been over-grazed to prop up the economic order. This is already having impacts – increasing levels of poverty, and the consequent social breakdown that accompanies it. Poverty and the consequent worsening social environment make people less able to look after themselves, their families, and their communities, and this has a direct impact on the national economy. We are all poorer because some of our fellow citizens need to use food banks, or have to make the choice in winter to Heat or Eat.

    And let’s look more closely at energy. Whilst the large energy producers and energy suppliers continue to make significant profits – or put their prices up to make sure they do so – families in the lower income brackets are experiencing unffordability issues with energy. Yes, of course, the energy companies would fail if they cannot keep their shareholders and investors happy. Private concerns need to make a profit to survive. But in the grand scheme of things, the economic temperature is low, so they should not expect major returns. The energy companies are complaining that they fear for their abilities to invest in new resources and infrastructure, but many of their customers cannot afford their products. What have we come to, when a “trophy project” such as the Hinkley Point C nuclear power station gets signed off, with billions in concomitant subsidy support, and yet people in Scotland and the North East and North West of England are failing to keep their homes at a comfortable temperature ?

    There is a basic conflict at the centre of all of this – energy companies make money by selling energy. Their strategy for survival is to make profit. This means they either have to sell more energy, or they have to charge more for the same amount of energy. Purchasing energy for most people is not a choice – it is a mandatory part of their spending. You could say that charging people for energy is akin to charging people for air to breathe. Energy is a essential utility, not an option. Some of the energy services we all need could be provided without purchasing the products of the energy companies. From the point of view of government budgets, it would be better to insulate the homes of lower income families than to offer them social benefit payments to pay their energy bills, but this would reduce the profits to the energy companies. Insulation is not a priority activity, because it lowers economic production – unless insulation itself is counted somehow as productivity. The ECO, the Energy Company Obligation – an obligation on energy companies to provide insulation for lower income family homes, could well become part of UK Prime Minister David Cameron’s “Bonfire of the Green Tax Vanities”. The ECO was set up as a subsidy payment, since energy companies will not provide energy services without charging somebody for them. The model of an ESCO – an Energy Services Company – an energy company that sells both energy and energy efficiency services is what is needed – but this means that energy companies need to diversify. They need to sell energy, and also sell people the means to avoid having to buy energy.

    Selling energy demand reduction services alongside energy is the only way that privatised energy companies can evolve – or the energy sector could have to be taken back into public ownership because the energy companies are not being socially responsible. A combination of economic adjustment measures, essential climate change policy and wholesale price rises for fossil fuel energy mean that energy demand reduction is essential to keep the economy stable. This cannot be achieved by merely increasing end consumer bills, in an effort to change behaviour. There is only so much reduction in energy use that a family can make, and it is a one-time change, it cannot be repeated. You can nudge people to turn their lights off and their thermostats down by one degree, but they won’t do it again. The people need to be provided with energy control. Smart meters may or may not provide an extra tranche of energy demand reduction. Smart fridges and freezers will almost certainly offer the potential for further domestic energy reduction. Mandatory energy efficiency in all electrical appliances sold is essential. But so is insulation. If we don’t get higher rates of insulation in buildings, we cannot win the energy challenge. In the UK, one style of Government policies for insulation were dropped – and their replacements are simply not working. The mistake was to assume that the energy companies would play the energy conservation game without proper incentives – and by incentive, I don’t mean subsidy.

    An obligation on energy companies to deploy insulation as well as other energy control measures shouldn’t need to be subsidised. What ? An obligation without a subsidy ? How refreshing ! If it is made the responsibility of the energy companies to provide energy services, and they are rated, and major energy procurement contracts are based on how well the energy companies perform on providing energy reduction services, then this could have an influence. If shareholders begin to understand the value of energy conservation and energy efficiency and begin to value their energy company holdings by their energy services portfolio, this could have an influence. If an energy utility’s licence to operate is based on their ESCO performance, this could have an influence : an energy utility could face being disbarred through the National Grid’s management of the electricity and gas networks – if an energy company does not provide policy-compliant levels of insulation and other demand control measures, it will not get preferential access for its products to supply the grids. If this sounds like the socialising of free trade, that’s not the case. Responsible companies are already beginning to respond to the unfolding crisis in energy. Companies that use large amounts of energy are seeking ways to cut their consumption – for reasons related to economic contraction, carbon emissions control and energy price rises – their bottom line – their profits – rely on energy management.

    It’s flawed reasoning to claim that taxing bad behaviour promotes good behaviour. It’s unlikely that the UK’s Carbon Floor Price will do much apart from making energy more unaffordable for consumers – it’s not going to make energy companies change the resources that they use. To really beat carbon emissions, low carbon energy needs to be mandated. Mandated, but not subsidised. The only reason subsidies are required for renewable electricity is because the initial investment is entirely new development – the subsidies don’t need to remain in place forever. Insulation is another one-off cost, so short-term subsidies should be in place to promote it. As Nick Clegg MP proposes, subsidies for energy conservation should come from the Treasury, through a progressive tax, not via energy companies, who will pass costs on to energy consumers, where it stands a chance of penalising lower-income households. Wind power and solar power, after their initial investment costs, provide almost free electricity – wind turbines and solar panels are in effect providing energy services. Energy companies should be mandated to provide more renewable electricity as part of their commitment to energy services.

    In a carbon-constrained world, we must use less carbon dioxide emitting fossil fuel energy. Since the industrialised economies use fossil fuels for more than abut 80% of their energy, lowering carbon emissions means using less energy, and having less building comfort, unless renewables and insulation can be rapidly increased. This is one part of the economy that should be growing, even as the rest is shrinking.

    Energy companies can claim that they don’t want to provide insulation as an energy service, because insulation is a one-off cost, it’s not a continuing source of profit. Well, when the Big Six have finished insulating all the roofs, walls and windows, they can move on to building all the wind turbines and solar farms we need. They’ll make a margin on that.

  • The Economist : Annoying Power

    Posted on October 20th, 2013 Jo No comments





    I generally avoid reading The Economist magazine – apart from the Science and Technology section – as it tends to make my blood boil. The writing style frequently includes such things that I would describe as casual generalisation, unquestioned third party claims, suppositions used in place of factual account, and the selective use of statistics to construct meaning – all of which have the power to annoy. Sometimes an article has so many trigger points, that I simply cannot finish reading it.

    This week I risked reading an article recommended to me about power generation in Europe, and I was pretty soon gnashing my teeth and wailing. I was indignant because the arguments being used ignored vital parts of European energy policy, and just parroted the complaints of utility companies, without challenging them, whilst at the same time ignoring the energy sector blackmail and brinkmanship. The article contradicted itself about energy investment and energy prices, and failed to make the case for utilities to diversify in order to survive.

    First of all – the contradictions. In The Economist magazine of 12th October 2013, the article entitled “How to lose half a trillion euros”, contains these two sections :-

    “[...] During the 2000s, European utilities overinvested in generating capacity from fossil fuels, boosting it by 16% in Europe as a whole and by more in some countries [...] The market for electricity did not grow by nearly that amount, even in good times; then the financial crisis hit demand. According to the International Energy Agency, total energy demand in Europe will decline by 2% between 2010 and 2015.”

    “[...] the old-fashioned utilities [...] So far, it is true, they have managed to provide backup capacity and the grid has not failed, even in solar- and wind-mad Germany. [...] But [...] it is getting harder to maintain grid stability. [...] The role of utilities as investors is [...] being threatened. [...]”

    How can the privatised power utilities on the one hand have “overinvested”, and at the same time not invested enough to protect the grid in future ?

    The article writer misses several key points. The underlying reasons for investment in Europe in fossil fuel-fired generation during the 2000s was not in anticipation of higher power demand. The vast majority of new investment in the period 2000 to 2010 in the European Union was in Natural Gas-fired power plants, in anticipation of carbon emissions control and other environmental policy, and in anticipation of the retirement of a number of power plants reaching the ends of their lives. It was also viewed as a no-regrets option given there were plans to diversify the unified European power market to increase competitiveness – incorporating new, smaller players, and new, variable renewable power resources. Flexible gas generation would therefore always be in demand – the ability to turn off and on as required. Requiring gas plants to operate flexibly divorces generation capacity from generation demand, and so invalidates The Economist writer’s statement.

    And on to the problem of a contradiction over prices :-

    “[...] Renewable, low-carbon energy accounts for an ever-greater share of production. It is helping push wholesale electricity prices down, and could one day lead to big reductions in greenhouse-gas emissions. For established utilities, though, this is a disaster. [...] In short, they argue, the growth of renewable energy is undermining established utilities and replacing them with something less reliable and much more expensive. [...]”

    How can renewable electricity be lowering the prices of wholesale power, and yet also be replacing established utilities with something “much more expensive” ?

    I think the clue for this poor reasoning lies with a faulty interpretation of Germany’s Renewable Energy Surcharge – the EEG-Umlage, which is held up as the proof that green power costs more than fossil fuel power. The article says :-

    “[...] Electricity prices have fallen from over €80 per MWh at peak hours in Germany in 2008 to just €38 per MWh now [...] These are wholesale prices; residential prices are €285 per MWh, some of the highest in the world, partly because they include subsidies for renewables that are one-and-a-half times, per unit of energy, the power price itself). [...]”


    The Economist’s calculation of the green power subsidies at “one-and-a-half times” the wholesale power price is €57/MWh, so that’s only 20% of the total price of power to the consumer. Other costs besides the actual wholesale cost of the electricity, add up to €190, 67% of the cost of power to the household – far more of an impact than the renewable energy subsidies. I found the data from the BDEW to confirm these figures – from the “Power prices for households” presentation for May 2013, the price of electricity for consumers (for a standard three person house) is at €287.3/MWh, and the combination of Renewable Energy surcharges – including the VAT and the Offshore Wind surcharge – come to €59.82/MWh. So the numbers aren’t wrong, but the way The Economist article paragraph is written it gives the impression that asking end consumers to pay the costs of transitioning to green power is a huge burden. It’s not.

    These charges to households would be less if all energy users were to participate in paying for the renewable energy subsidies – but some companies do not, using the argument of anti-competitiveness. If they have to pay the surcharge, they reason, they will lose business to other countries. Quite effective blackmail, burdening the end consumer with higher power bills. In addition the electricity supply companies are trying to maintain their profit margins so may not be passing all the reductions in power costs to their consumers. One calculation suggests the total cost of Germany’s power will reduce by over €5.5 billion in 2014, and yet household electricity costs are expected to rise. The heightening effect of the Renewable Energy Act (EEG) surcharge on power prices is not going to last forever, however, as it’s promoting cheaper wholesale prices, and building in protection from the risks of sharply-rising prices for fossil fuels. Electricity supply companies are going to be able to sell progressively cheaper energy, and this differential will eventually reach the consumers, even if that needs to be legislatively enforced.

    Next, on to the assertion that increasing renewable electricity is pushing flexible gas-fired power generation out of the frame :-

    “[...] Renewables have “grid priority”, meaning the grid must take their electricity first. This is a legal requirement, to encourage renewable energy in Europe. But it is also logical: since the marginal cost of wind and solar power is zero, grids would take their power first anyway. [...] But unlike the baseload providers already in place (nuclear and coal), solar and wind power are intermittent, surging with the weather. [...] Now, when demand fluctuates, it may not be enough just to lower the output of gas-fired generators. Some plants may have to be switched off altogether and some coal-fired ones turned down. [...] It is costly because scaling back coal-fired plants is hard. It makes electricity prices more volatile. And it is having a devastating effect on profits. [...] Gérard Mestrallet, chief executive of GDF Suez, the world’s largest electricity producer, says 30GW of gas-fired capacity has been mothballed in Europe since the peak, including brand-new plants. The increase in coal-burning pushed German carbon emissions up in 2012-13, the opposite of what was supposed to happen.”

    The real core of this issue is that baseload is history – or it should be – and it will be for Germany in the near future – as some coal-fired power plants will need to close or be transitioned under the Large Combustion Plants Directive, and it’s successor, the Industrial Emissions Directive (9,000 coal-fired installations will be affected by the IED); and the nuclear power plants are all scheduled to close. It is very unlikely that much in the way of new European nuclear power will come on-stream within the next 15 years. The price of coal fuel might stay reasonable, due to a number of factors, but the cost of burning it is likely to become higher, so the baseload paradigm should be well and truly broken.

    That gas-fired power plants would be finding profit margins slim is something that has been anticipated widely, so it’s not exactly a shock, although it’s being used as a bargaining chip by utilities in ongoing negotations to launch an EU-wide “Capacity Market” for flexible power generation (principally gas, of course, since neither nuclear nor coal are flexible, and coal is practically on the edge of extinction in policy terms).

    CapGemini has recently published a scaremongering projection :-

    “[...] Gas plant closures : One of the biggest impacts of the disturbed gas and electricity markets is the rapid closure of numerous gas plants in the region. A recent study by IHS estimates that about 130,000 MW (130 GW) of gas plants across Europe (around 60% of the total installed gas fired generation in the Region) are currently not recovering their fixed costs and are at a risk of closure by 2016. These plants – essential to safeguarding security of supply during peak hours – are being replaced by volatile and unforecastable renewable energy installations that are heavily subsidised. [...]”

    And other sources are also pushing the doom and gloom :-

    “[...] The pain being suffered by owners of European gas-fired power plant has escalated over the last 12 months. Weak power demand, subsidised renewable build and relatively high gas prices have conspired to crush gas fired generation margins [...] It is difficult to imagine how market sentiment around gas-fired plant could get much worse. About a year ago we questioned the prospect of a European gas plant bust in the form of plant mothballing, closures and the distressed sale of assets. There is clear evidence of a bust gathering steam in 2013, with a number of utilities pursuing exactly these actions. [...]”

    Instead of complaining and game-playing, electricity utilities should accept the need to adapt. In line with EU Directives, they can expect to be able to make a good profit by diversifying into energy services – so they end up not simply selling energy, but selling energy demand control. They would move from being E. Co.’s to ESCOs. If they accept the challenge to diversify, they can keep their shareholders happy, and they will be able to survive the slim margins they can make from gas-fired electricity generation during periods of peak demand, or to load balance grids increasingly dependent on renewable electricity generation.

    If the power utilities fail to adapt, they’re not too big to fail. I would suggest that European Governments renationalise them, as we’re going to have to fork out gazillions of euros to keep the Capacity Market running the way the utilities would like, so we might as well own the assets, too.