Posted on June 23rd, 2015 No comments
The British Government do not have an energy policy. They may think they have one, and they may regularly tell us that they have one, but in reality, they don’t. There are a number of elements of regulatory work and market intervention that they are engaged with, but none of these by itself is significant enough to count as a policy for energy. Moreover, all of these elements taken together do not add up to energy security, energy efficiency, decarbonisation and affordable energy.
What it takes to have an energy policy is a clear understanding of what is a realistic strategy for reinvestment in energy after the dry years of privatisation, and a focus on energy efficiency, and getting sufficient low carbon energy built to meet the Carbon Budget on time. Current British Government ambitions on energy are not realistic, will not attract sufficient investment, will not promote increased energy efficiency and will not achieve the right scale and speed of decarbonisation.
I’m going to break down my critique into a series of small chunks. The first one is a quick look at the numbers and outcomes arising from the British Government’s obsessive promotion of nuclear power, a fantasy science fiction that is out of reach, not least because the industry is dog-tired and motheaten.Academic Freedom, Alchemical, Artistic Licence, Assets not Liabilities, Bait & Switch, Baseload is History, Big Number, Big Picture, British Biogas, Burning Money, Carbon Recycling, Change Management, Cost Effective, Dead End, Design Matters, Direction of Travel, Disturbing Trends, Dreamworld Economics, Efficiency is King, Electrificandum, Emissions Impossible, Energy Autonomy, Energy Calculation, Energy Change, Energy Insecurity, Energy Revival, Engineering Marvel, Gamechanger, Gas Storage, Green Gas, Green Investment, Green Power, Growth Paradigm, Hydrocarbon Hegemony, Hydrogen Economy, Nuclear Nuisance, Nuclear Shambles, Optimistic Generation, Policy Warfare, Political Nightmare, Price Control, Realistic Models, Renewable Gas, Solar Sunrise, Solution City, Technofix, Technological Fallacy, Technological Sideshow, The Data, The Power of Intention, The Right Chemistry, The War on Error, Wasted Resource, Wind of Fortune, Zero Net
Posted on June 15th, 2015 No comments
I went to a fascinating meeting on Monday 8th June 2015, hosted by PricewaterhouseCooper (PwC) in London, and organised by the Solar Trade Association, and starring Mr Sunshine himself, Greg Barker, who was on top form, and exceptionally good value, as always.
We had very interesting presentations from a number of key actors in solar photovoltaic energy, including the newly rebranded Solar Power Europe. James Watson, Solar Power Europe‘s CEO, expressed a view to the effect that it could seem like a waste of time, effort and money for Europe to be spending half its Energy Union budget on reforming the EU Emissions Trading Scheme, when so much could be achieved instead through a recasting of the Renewable Energy Directive. Amendments are due in a new Renewable Energy package in 2017, as confirmed by Commissioner Arias Cañete in March 2015. These amendments would usefully tackle the risk of the European Capacity Mechanism being used to support coal-fired power in Germany – as the parallel policy has been in the UK.
The Energy Union is taking forward the open and free market principles of “harmonisation” of the electricity and gas trade in the geographical envelope of the Eurozone, which includes countries that have not taken the Euro currency, such as the UK, and countries that are in the European Economic Area but are not full members of the European Union, principally Norway. A key part of the Energy Union is a physical enactment of guarantees for market access – focusing on standards in gas and power products, and the interconnectors that make cross-border trade possible. It is in the interests of all the private energy companies, public energy companies, invididual producers and network operators in the region to take part in this project, as the outcomes will include not only free, open and fair trade, they will also increase energy security in the region, particularly as the level of renewable energy production increases. Renewable electricity is intermittent and variable at all time slices, and strongly seasonal and weather-related, and so international trade within the European region is essential.
Most commentators on the Energy Union narrow in on the electricity grids, but union also includes the gas grids. The legal framework for gas market harmonisation includes work on gas quality standards and also what kinds of gas can be transmitted through the pipelines, issues covered in the 2009 Energy Package, which permitted unconstrained access for alternative gases as long as they meet the gas protocols. This would permit gas grid injection of biomethane, and potentially other biogases or Renewable Gas varieties.
One of the main contributors to new power production in the Eurozone is renewable electricity, with growth that has continued throughout the recession in the economy. Although barriers to increased renewable power in the electricity grids have been by and large vaulted, through a combination of regulatory progress and subsidies, as the landscape has changed, so has the need for re-assessment of policy. For example, in the UK, the solar Feed-in Tariff has been strongly criticised as costing too much (although it is a minnow in terms of the total socialised energy budget), and has had to be “degressed” – or stepped down in stages. In Germany, all electricity consumers have been taxed in order to pay for the renewable energy budget – and there has even been a tax on “self-consumption” for solar power producers – and this has been strongly contested. Plans to manufacture low carbon gas from excess solar and wind power would be badly affected by this. It does seem strange that producer-consumers of virtually cost-less and zero carbon power should be taxed, especially when centralised producers are forced to sell power for virtually nothing when there is oversupply – for example on a sunny day.
What is more likely to hold back European solar expansion, according to Solar Power Europe, is the Minimum Import Price, or MIP. Solar Power Europe will are lobbying for an end to both the MIP and German solar tax. The MIP, according to their analysis, is making solar power in Europe too costly, compared to other regions. Roughly 60% to 70% of the MIP subsidy is going to support Chinese manufacturers, yet China’s solar power industry is becoming very successful in its own right, and doesn’t need this support. Solar Power Europe are concerned that there is gaming of the market going on to decrease the costs of solar panels in Europe – for example, panels made in China are being routed through countries where exports don’t come under the MIP rules. In effect, Solar Power Europe wants policy to change to stop subsidising China and iron out counter-productive internal policies.
Solar Power Europe have published their “Global Market Outlook : 2015 – 2019” this week, and clearly, there are sunny times ahead, especially since Greg Barker has a key role in delivering solar power in London.
Greg Barker came to the podium to give his summary of solar power in the UK. He reminded the solar power industry, that although they were becoming a serious sector, that they would continue to remain dependent on subsidies. He said that the major reduction in unit costs was probably over; and barring some improvements in underlying technology, such as revolutions in semiconductor devices, I think I’d probably agree with him. Greg Barker said that to promote the market, there was still a need to sweep away unintended obstacles – he said he didn’t understand why solar power was still cheaper in Germany. He said that the development in solar power was incredible – he said that when he had first taken office in the previous Coalition Government, when he had talked about his ambition for solar power, officials had “fallen off their chairs, laughing”, at his parrotting as Minister, but that now there was a risk of over-development under the Levy Control Framework – the policy that caps subsidy spending on energy. Greg Barker said that he regretted that the EMR bids from solar power (bidding into the Contracts for Difference auction instituted as part of the Electricity Market Reform) may now not get built. He said that the solar industry would be “gutted that Eric Pickles has gone”, and that with the new majority Conservative Government rooftop solar would get support from the Department for Communities and Local Government from their new Minister Greg Clark. Greg Barker said that Camilla Cavendish, appointed in David Cameron’s Policy Unit, is a real ally of renewable energy. Greg Barker warned the room that there would be no additions to the levy budget for solar power, and told the solar industry not to go asking for increases as the regulatory environment would be harsh. He said the solar power developers should aim to drive down their costs and dive into a far more centralised market. He said that he expected that there would be “insurgent companies” making significant progress on solar power – something that the Big Six electricity providers would be unable to do. He warned the solar industry to he “hardheaded and realistic” and urged them to work with the Government.
Greg Barker told us about his new appointment to the London Sustainable Development Commission. He said that when Boris Johnson had called him about this, he hadn’t heard of it. Greg Barker said that the population of London is growing by 100,000 a year, and that London has growing technology companies – so much so that clean tech in London is better than California. He said that he accepted the appointment to the London SDC on the basis that he would get carte blanche to reform it, to “shift the dial”. He said that “much as I love city farms, and bees“, that he wanted to create more focus. He said that he wanted to get the London SDC working to three criteria on solar power, firstly scalability. He wants to see solar power initiatives that are scalable – which I took to mean not just large unrepeatable projects, or small bespoke projects. Greg Barker said that solar power policy should have genuine additionality – not just producing more reports. The third criteria he wants to apply is that of replicability – as until now, the record of solar power in London was not very good. He said we should remember the aesthetics of solar power, and that big blue panels sitting proud of a red clay roof was not particularly appealing. He mentioned Amber Rudd, who has been given the post of Secretary of State for the Department of Energy and Climate Change, and how she has been talking about the aesthetics of nuclear power. He said this issue was not ephemeral and that it was important to have good design for the London “semi” – semi-detached house. He said that local policy changes could help – such as eliminating the Congestion Charge for solar power companies having to drive and park in London for installations. Greg Barker said that Ed Davey, the Secretary of State for Energy and Climate Change in the previous Government, was too narrow in his views on organisations that should be enabled to do solar projects. Greg Barker said that we needed not only co-operatives, but also charities, and local authority level alliances, to be enabled to do solar projects. He said that policy needed to be revisited as regards the mid-sector rooftop solar band. He said that if the solar industry and builders get together and propose a change in regulation, Greg Clark would listen. Greg Barker said that Government should be regulating for outcome and not process in order to make progress. Greg Barker said that he wanted solar power to be a key policy issue in the upcoming mayoral election (for the Mayor of London). He said that when he had sat down with Boris Johnson the issues that had surfaced were a need for policy to deal with the circular economy, and how to develop London’s clean tech cluster, and the need for a solar group.
Greg Barker finished with some good advice. He told the solar power industry to be “persuasive rather than loud”. He said that the solar industry need to understand that a good deal of subsidy has to be focused on the offshore wind power priority, and that this cannot be changed. He said that the solar power industry could “pick up the slack from onshore wind”. He reminded the solar industry to focus on aesthetics and to sell this along with the idea of energy efficiency and return on investment. He said that the Green Deal has shown that we are still a long way from a market in energy efficiency. He asked if the Feed-in Tariff would survive, as solar power continues in its march towards grid parity.
Later on in the day, over snacks and a couple of beers, I was shown worrying-looking maps of the state of the National Grid by somebody looking at the “constraints” being imposed by Western Power Distribution (WPD), for example, in the South West of England. A summary that could be drawn from the maps was that there are difficulties with adding new power generators into large parts of the grid network. For the proposed Hinkley Point C nuclear power plant and the new Seabank 3 gas-fired power plant, an entirely new piece of grid will be needed – which will increase the lead time to these projects being able to contribute power to the network. If modifications for major projects are going to take up all the attention of National Grid, they won’t be able to advance the upgrades to the grid needed for small, decentralised projects – perhaps for years – and this is worrying as it imposes limitations on the amount of new renewable electricity that can be added in the near future. Some will see this as excellent news, as it will cap the rollout of windfarms and solar parks. However, this will create a drag on low carbon transition. It seems that large amounts of new renewables will only be possible in localised grids – so emphasis on developing solar power in London is useful.
Posted on June 8th, 2015 No comments
Later on this morning, I shall attend the shiniest, brightest, sunniest event of the whole year so far : by the invitation of the Solar Trade Association, I shall attend a day of presentations named “Does the new government mean business for solar ?”. If I were a journalist, I would probably assume that the answer to that question is the default “no”, but I’m hoping some of the attendees will claim otherwise. And here below is a related press release about a publication released today : “Solar Independence Plan for Britain”, outlining exciting opportunities for solar photovoltaic farms in the UK. I shall be smiling all day, I can tell. The UK solar future’s so bright, I’ll need to wear PV shades.
‘Solar Independence’ is opportunity for Britain
Media Release : Embargoed to: 00:01 Monday 8 June 2015
Commenting on the publication of the ‘Solar Independence Plan for Britain’ by the Solar Trade Association , Guy Smith, Vice President of the National Farmers Union, highlighted the opportunity that solar power presents to British farmers.
Guy Smith said: “We’re pleased to see the fast-maturing solar industry calling for a responsible tapering-off in the level of public support it requires. Solar farmers are proud to be contributing renewable electricity into the British grid and the NFU is firmly in favour of using subsidies as efficiently as possible.”
“Our advice to government would be that as many farmers are finding, solar farms can easily be managed to support additional biodiversity such as bees and birds. The government is asking farmers to meet targets on biodiversity, and so we’d urge ministers to support solar farms as part of the solution.”
“Farm economists seem agreed that in the future farm-gate prices will become more volatile. Increased weather volatility is a key factor in this. To help manage this volatility farmers need to spread risk across a number of diverse income streams, and solar power and the other land-based renewables are an excellent way of doing this thus helping secure a robust rural economy.”
Catherine Mitchell, Professor of Energy Policy at the University of Exeter , said that smart policies could support the development of the solar industry in the UK.
Catherine Mitchell said: “We are seeing a profound global transformation in how we think about and build energy systems, and solar is the technology that is leading it.”
“Where governments enact good policy, healthy industries emerge and costs fall. Citizens become entrepreneurs.”
“As the Solar Independence Plan shows, Britain is potentially just five years away from a tipping point in this transformation, and I’d certainly urge ministers to encourage the inevitable rather than fighting it.”
Notes to editors:
1. The ‘Solar Independence Plan for Britain’ by the Solar Trade Association is published on Monday 8 June.
2. Guy Smith and Catherine Mitchell sit on the Advisory Board of the Energy and Climate Intelligence Unit: http://eciu.net/about/advisory-board
3. The Solar Trade Association is holding an event on 8th June 2015 titled “Does the new government mean business for solar ?”
For more information:
Richard Black, director, ECIU, Tel: 07912 583 328, email: richard . black @ eciu . net
George Smeeton, head of communications, ECIU, Tel: 07894 571 153, email: george . smeeton @ eciu . net
The Energy and Climate Intelligence Unit is a non-profit organisation supporting informed debate on energy and climate change issues in the UK. Britain faces important choices on energy and on responding to climate change, and we believe it is vital that debates on these issues are underpinned by evidence and set in their proper context.
We support journalists and other communicators with accurate and accessible briefings on key issues, and help connect individuals and organisations in the field with the national conversation.
Our Advisory Board reflects the breadth of society’s interest in energy and climate issues. It includes climate scientists, energy policy experts and economists, as well as a range of other stakeholders including MPs and Peers.
All of our funding comes from philanthropic foundations. We gratefully acknowledge the support of the European Climate Foundation the Grantham Foundation for the Protection of the Environment, and the Tellus Mater Foundation.
For more information or to receive our daily newsletter, please visit our website: http://eciu.net/
Posted on June 3rd, 2015 No comments
Shell, BP and some of their confederates in the European oil and gas industry have inched, or perhaps “centimetred”, forward in their narrative on climate change. Previously, the major oil and gas companies were regularly outed as deniers of climate change science; either because of their own public statements, or because of secretive support of organisations active in denying climate change science. It does seem, finally, that Shell in particular has decided to drop this counter-productive “playing of both sides”. Not that there are any “sides” to climate change science. The science on climate change is unequivocal : changes are taking place across the world, and recent global warming is unprecedented, and has almost definitely been attributed to the burning of fossil fuels and land use change.
So Shell and BP have finally realised that they need to shed the mantle of subtle or not-so-subtle denial, although they cling to the shreds of dispute when they utter doubts about the actual numbers or impacts of global warming (for example : http://www.joabbess.com/2015/06/01/shells-public-relations-offensive/). However, we have to grant them a little leeway on that, because although petrogeologists need to understand the science of global warming in order to know where to prospect for oil and gas, their corporate superiors in the organisation may not be scientists at all, and have no understanding of the global carbon cycle and why it’s so disruptive to dig up all that oil and gas hydrocarbon and burn it into the sky. So we should cut the CEOs of Shell and BP a little slack on where they plump for in the spectrum of climate change narrative – from “utter outright doom” to “trifling perturbation”. The central point is that they have stopped denying climate change. In fact, they’re being open that climate change is happening. It’s a miracle ! They have seen the light !
But not that much light, though. Shell and BP’s former position of “scepticism” of the gravity and actuality of global warming and climate change was deployed to great effect in delaying any major change in their business strategies. Obviously, it would have been unseemly to attempt to transmogrify into renewable energy businesses, which is why anybody in the executive branches who showed signs of becoming pro-green has been shunted. There are a number of fairly decent scalps on the fortress pikes, much to their shame. Shell and BP have a continuing duty to their shareholders – to make a profit from selling dirt – and this has shelved any intention to transition to lower carbon energy producers. Granted, both Shell and BP have attempted to reform their internal businesses by applying an actual or virtual price on carbon dioxide emissions, and in some aspects have cleaned up and tidied up their mining and chemical processing. The worsening chemistry of the cheaper fossil fuel resources they have started to use has had implications on their own internal emissions control, but you have to give them credit for trying to do better than they used to do. However, despite their internal adjustments, their external-facing position of denial of the seriousness of climate change has supported them in delaying major change.
With these recent public admissions of accepting climate change as a fact (although CEOs without appropriate science degrees irritatingly disagree with some of the numbers on global warming), it seems possible that Shell and BP have moved from an outright “delay and deny” position, which is to be applauded.
However, they might have moved from “delay and deny” to “delay and distract”. Since the commencement of the global climate talks, from about the 1980s, Shell and BP have said the equivalent of “if the world is serious about acting on global warming (if global warming exists, and global warming is caused by fossil fuels), then the world should agree policy for a framework, and then we will work within that framework.” This is in effect nothing more than the United Nations Framework Convention on Climate Change (UNFCCC) has put forward, so nobody has noticed that Shell and BP are avoiding taking any action themselves here, by making action somebody else’s responsibility.
Shell and BP have known that it would take some considerable time to get unanimity between governments on the reality and severity of climate change. Shell and BP knew that it would take even longer to set up a market in carbon, or a system of carbon dioxide emissions taxation. Shell and BP knew right from the outset that if they kept pushing the ball back to the United Nations, nothing would transpire. The proof of the success of this strategy was the Copenhagen conference in 2009. The next proof of the durability of this delaying tactic will be the outcomes of the Paris 2015 conference. The most that can come out of Paris is another set of slightly improved targets from governments, but no mechanism for translating these into real change.
Shell and BP and the other oil and gas companies have pushed the argument towards a price on carbon, and a market in carbon, and expensive Carbon Capture and Storage technologies. Not that a price on carbon is likely to be anywhere near high enough to pay for Carbon Capture and Storage. But anyway, the point is that these are all distractions. What really needs to happen is that Shell and BP and the rest need to change their products from high carbon to low carbon. They’ve delayed long enough. Now is the time for the United Nations to demand that the fossil fuel companies change their products.
This demand is not just about protecting the survival of the human race, or indeed, the whole biome. Everybody is basically on the same page on this : the Earth should remain liveable-inable. This demand for change is about the survival of Shell and BP as energy companies. They have already started to talk about moving their businesses away from oil to gas. There are high profile companies developing gas-powered cars, trains, ships and possibly even planes. But this will only be a first step. Natural Gas needs to be a bridge to a fully zero carbon world. The oil and gas companies need to transition from oil to gas, and then they need to transition to low carbon gas.
Renewable Gas is not merely “vapourware” – the techniques and technologies for making low carbon gas are available, and have been for decades, or in some cases, centuries. Shell and BP know they can manufacture gas instead of digging it up. They know they can do the chemistry because they already have to do much of the same chemistry in processing fossil hydrocarbons now to meet environmental and performance criteria. BP has known since the 1970s or before that it can recycle carbon in energy systems. Shell is currently producing hydrogen from biomass, and they could do more. A price on carbon is not going to make this transition to low carbon gas. While Shell and BP are delaying the low carbon transition by placing focus on the price of carbon, they could lose a lot of shareholders who shy away from the “carbon bubble” risk of hydrocarbon investment. Shell and BP need to decide for themselves that they want to survive as energy companies, and go public with their plans to transition to low carbon gas, instead of continuing to distract attention away from themselves.Academic Freedom, Alchemical, Assets not Liabilities, Bad Science, Bait & Switch, Be Prepared, Behaviour Changeling, Big Number, Big Picture, Carbon Capture, Carbon Commodities, Carbon Pricing, Carbon Recycling, Carbon Taxatious, Change Management, Climate Change, Conflict of Interest, Corporate Pressure, Cost Effective, Deal Breakers, Delay and Deny, Delay and Distract, Divest and Survive, Divide & Rule, Emissions Impossible, Energy Change, Energy Denial, Energy Insecurity, Energy Revival, Engineering Marvel, Extreme Energy, Extreme Weather, Fair Balance, Fossilised Fuels, Freak Science, Freemarketeering, Gamechanger, Geogingerneering, Global Warming, Green Gas, Green Investment, Green Power, Hydrocarbon Hegemony, Hydrogen Economy, Low Carbon Life, Major Shift, Marvellous Wonderful, Mass Propaganda, Modern Myths, Orwells, Paradigm Shapeshifter, Peak Emissions, Pet Peeves, Petrolheads, Policy Warfare, Political Nightmare, Price Control, Protest & Survive, Public Relations, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Social Capital, Solution City, Stirring Stuff, The Myth of Innovation, The Power of Intention, The Right Chemistry, The Science of Communitagion, Wasted Resource, Western Hedge, Zero Net
Posted on June 2nd, 2015 No comments
So, some people do not understand why I am opposed to the proposal for a price on carbon put forward by Royal Dutch Shell and their oil and gas company confederates.
Those who have been following developments in climate change policy and the energy sector know that the oil and gas companies have been proposing a price on carbon for decades; and yet little has been achieved in cutting carbon dioxide emissions, even though carbon markets and taxes have been instituted in several regions.
Supporters of pricing carbon dioxide emissions urge the “give it time” approach, believing that continuing down the road of tweaking the price of energy in the global economy will cause a significant change in the types of resources being extracted.
My view is that economic policy and the strengthening of carbon markets and cross-border carbon taxes cannot provide a framework for timely and major shifts in the carbon intensity of energy resources, and here’s a brief analysis of why.
1. A price on carbon shifts the locus of action on to the energy consumer and investor
A price on carbon could be expected to alter the profitability of certain fossil fuel mining, drilling and processing operations. For example, the carbon dioxide emissions of a “tank of gas” from a well-to-wheel or mine-to-wheel perspective, could be made to show up in the price on the fuel station forecourt pump. Leaving aside the question of how the carbon tax or unit price would be applied and redistributed for the moment, a price on carbon dioxide emissions could result in fuel A being more expensive than fuel B at the point of sale. Fuel A could expect to fall in popularity, and its sales could falter, and this could filter its effect back up the chain of production, and have implications on the capital expenditure on the production of Fuel A, and the confidence of the investors in investing in Fuel A, and so the oil and gas company would pull out of Fuel A.
However, the business decisions of the oil and gas company are assumed to be dependent on the consumer and the investor. By bowing to the might god of unit price, Shell and its confederates are essentially arguing that they will act only when the energy consumers and energy investors act. There are problems with this declaration of “we only do what we are told by the market” position. What if the unit price of Fuel A is only marginally affected by the price on carbon ? What if Fuel A is regarded as a superior product because of its premium price or other marketing factors ? This situation actually exists – the sales of petroleum oil-based gasoline and diesel are very healthy, despite the fact that running a car on Natural Gas, biogas or electricity could be far cheaper. Apart from the fact that so many motor cars in the global fleet have liquid fuel-oriented engines, what else is keeping people purchasing oil-based fuels when they are frequently more costly than the alternative options ?
And what about investment ? Fuel A might become more costly to produce with a price on carbon, but it will also be more expensive when it is sold, and this could create an extra margin of profit for the producers of Fuel A, and they could then return higher dividends to their shareholders. Why should investors stop holding stocks in Fuel A when their rates of return are higher ?
If neither consumers nor investors are going to change their practice because Fuel A becomes more costly than Fuel B because of a price on carbon, then the oil and gas company are not going to transition out of Fuel A resources.
For Shell to urge a price on carbon therefore, is a delegation of responsibility for change to other actors. This is irresponsible. Shell needs to lead on emissions reduction, not insist that other people change.
2. A price on carbon will not change overall prices or purchasing decsions
In economic theory, choices about products, goods and services are based on key factors such as trust in the supplier, confidence in the product, availability and sustainability of the service, and, of course, the price. Price is a major determinant in most markets, and artificially altering the price of a vital commodity will certainly alter purchasing decisions – unless, that is, the price of the commodity in question increases across the board. If all the players in the field start offering a more expensive product, for example, because of supply chain issues felt across the market, then consumers will not change their choices.
Now consider the global markets in energy. Upwards of 80% of all energy consumed in the global economy is fossil fuel-based. Putting a price on carbon will raise the prices of energy pretty much universally. There will not be enough cleaner, greener product to purchase, so most purchasing decisions will remain the same. Price differentiation in the energy market will not be established by asserting a price on carbon.
A key part of Shell’s argument is that price differentiation will occur because of a price on carbon, and that this will drive behaviour change, and yet there is nothing to suggest it could do that effectively.
3. A price on carbon will not enable Carbon Capture and Storage
Athough a key part of Shell’s argument about a price on carbon is the rationale that it would stimulate the growth in Carbon Capture and Storage (CCS), it seems unlikely that the world will ever agree to a price on carbon that would be sufficient to stimulate significant levels of CCS. A price on carbon will be deemed to be high enough when it creates a difference in the marginal extra production cost of a unit of one energy resource compared to another. A carbon price can only be argued for on the basis of this optimisation process – after all – a carbon price will be expected to be cost-efficient, and not punitive to markets. In other words, carbon prices will be tolerated if they tickle the final cost of energy, but not if they mangle with it. However, CCS could imply the use of 20% to 45% extra energy consumption at a facility or plant. In other words, CCS would create a parasitic load on energy resources that is not slim enough to be supported by a cost-optimal carbon price.
Some argue that the technology for CCS is improving, and that the parasitic load of CCS at installations could be reduced to around 10% to 15% extra energy consumption. However, it is hard to imagine a price on carbon that would pay even for this. And additionally, CCS will continue to require higher levels of energy consumption which is highly inefficient in the use of resources.
Shell’s argument that CCS is vital, and that a price on carbon can support CCS, is invalidated by this simple analysis.
4. Shell needs to be fully engaged in energy transition
Calling for a price on carbon diverts attention from the fact that Shell itself needs to transition out of fossil fuels in order for the world to decarbonise its energy.
Shell rightly says that they should stick to their “core capabilities” – in other words geology and chemistry, instead of wind power and solar power. However, they need to demonstrate that they are willing to act within their central business activities.
Prior to the explosion in the exploitation of deep geological hydrocarbon resources for liquid and gas fuels, there was an energy economy that used coal and chemistry to manufacture gas and liquid fuels. Manufactured gas could still replace Natural Gas, if there are climate, economic or technological limits to how much Natural Gas can be resourced or safely deployed. Of course, to meet climate policy goals, coal chemistry would need to be replaced by biomass chemistry, and significant development of Renewable Hydrogen technologies.
Within its own production facilities, Shell has the answers to meet this challenge. Instead of telling the rest of the world to change its economy and its behaviour, Shell should take up the baton of transition, and perfect its production of low carbon manufactured gas.Academic Freedom, Alchemical, Assets not Liabilities, Bait & Switch, Be Prepared, Behaviour Changeling, Big Picture, Big Society, British Biogas, Carbon Capture, Carbon Commodities, Carbon Pricing, Carbon Recycling, Carbon Taxatious, Change Management, Climate Change, Coal Hell, Conflict of Interest, Corporate Pressure, Cost Effective, Dead End, Dead Zone, Delay and Deny, Design Matters, Direction of Travel, Divest and Survive, Dreamworld Economics, Emissions Impossible, Energy Change, Energy Revival, Engineering Marvel, Extreme Energy, Fossilised Fuels, Freemarketeering, Gamechanger, Geogingerneering, Green Gas, Green Investment, Green Power, Growth Paradigm, Hydrocarbon Hegemony, Hydrogen Economy, Low Carbon Life, Mad Mad World, Major Shift, Marvellous Wonderful, Mass Propaganda, Modern Myths, Money Sings, Natural Gas, Nudge & Budge, Oil Change, Orwells, Paradigm Shapeshifter, Peak Coal, Peak Emissions, Peak Energy, Peak Natural Gas, Peak Oil, Pet Peeves, Petrolheads, Policy Warfare, Political Nightmare, Price Control, Protest & Survive, Public Relations, Realistic Models, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Resource Curse, Solar Sunrise, Solution City, Sustainable Deferment, Technofix, The Myth of Innovation, The Power of Intention, The Price of Gas, The Price of Oil, The Right Chemistry, The Science of Communitagion, The War on Error, Wind of Fortune
Posted on June 1st, 2015 No comments
And so it has begun – Shell’s public relations offensive ahead of the 2015 Paris climate talks. The substance of their “advocacy” – and for a heavyweight corporation, it’s less lobbying than badgering – is that the rest of the world should adapt. Policymakers should set a price on carbon, according to Shell. A price on carbon might make some dirty, polluting energy projects unprofitable, and there’s some value in that. A price on carbon might also stimulate a certain amount of Carbon Capture and Storage, or CCS, the capturing and permanent underground sequestration of carbon dioxide at large mines, industrial plant and power stations. But how much CCS could be incentivised by pricing carbon is still unclear. Egging on the rest of the world to price carbon would give Shell the room to carry on digging up carbon and burning it and then capturing it and burying it – because energy prices would inevitably rise to cover this cost. Shell continues with the line that they started in the 1990s – that they should continue to dig up carbon and burn it, or sell it to other people to burn, and that the rest of the world should continue to pay for the carbon to be captured and buried – but Shell has not answered a basic problem. As any physicist could tell you, CCS is incredibly energy-inefficient, which makes it cost-inefficient. A price on carbon wouldn’t solve that. It would be far more energy-efficient, and therefore cost-efficient, to either not dig up the carbon in the first place, or, failing that, recycle carbon dioxide into new energy. Shell have the chemical prowess to recycle carbon dioxide into Renewable Gas, but they are still not planning to do it. They are continuing to offer us the worst of all possible worlds. They are absolutely right to stick to their “core capabilities” – other corporations can ramp up renewable electricity such as wind and solar farms – but Shell does chemistry, so it is appropriate for them to manufacture Renewable Gas. They are already using most of the basic process steps in their production of synthetic crude in Canada, and their processing of coal and biomass in The Netherlands. They need to join the dots and aim for Renewable Gas. This will be far less expensive, and much more efficient, than Carbon Capture and Storage. The world does not need to shoulder the expense and effort of setting a price on carbon. Shell and its fellow fossil fuel companies need to transition out to Renewable Gas.Academic Freedom, Alchemical, Assets not Liabilities, Be Prepared, Big Number, Big Picture, British Biogas, Carbon Capture, Carbon Commodities, Carbon Pricing, Carbon Recycling, Climate Change, Coal Hell, Conflict of Interest, Corporate Pressure, Delay and Deny, Demoticratica, Divest and Survive, Dreamworld Economics, Efficiency is King, Emissions Impossible, Energy Calculation, Energy Change, Energy Denial, Energy Revival, Engineering Marvel, Environmental Howzat, Extreme Energy, Financiers of the Apocalypse, Fossilised Fuels, Freemarketeering, Gamechanger, Geogingerneering, Green Gas, Green Investment, Green Power, Hydrocarbon Hegemony, Hydrogen Economy, Low Carbon Life, Major Shift, Mass Propaganda, Modern Myths, Natural Gas, Not In My Name, Nudge & Budge, Paradigm Shapeshifter, Peak Emissions, Policy Warfare, Political Nightmare, Price Control, Protest & Survive, Public Relations, Pure Hollywood, Realistic Models, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Social Capital, Solar Sunrise, Solution City, Sustainable Deferment, Tarred Sands, Technofix, Technological Sideshow, The Power of Intention, The Price of Gas, The Price of Oil, The Right Chemistry, The Science of Communitagion, Unconventional Foul, Ungreen Development, Wasted Resource, Western Hedge, Wind of Fortune, Zero Net
Posted on May 29th, 2015 No comments
As if to provide proof for the sneaking suspicion that Great Britain is run by the wealthy, rather than by the people, and that energy policy is decided by a close-knit circle of privileged dynasties, up bubbles Amber Rudd MP’s first whirl of skirmish as Secretary of State for Energy and Climate Change : her brother Roland is chairperson of a lobbying firm, Finsbury, which is seeking to get state approval for a controversial gas storage scheme at Preesall, near Fleetwood, on behalf of the developers, Halite Energy of Preston, Lancashire.
Whilst some claim there is a starkly obvious conflict of interest for Rudd to take part in the decision-making process, the Department of Energy and Climate Change (DECC) could have denied it, but have instead confirmed that the potential reversal of a 2013 decision will be made, not by Rudd, but by Lord Bourne.
New gas storage in the United Kingdom is a crucial piece of the energy infrastructure provision, as recognised by successive governments. Developments have been ongoing, such as the opening of the Holford facility at Byley in Cheshire. Besides new gas storage, there are anticipated improvements for interconnectors with mainland Europe. These are needed for raising the volume of Natural Gas available to the British market, and for optimising Natural Gas flows and sales in the European regional context – a part of the EC’s “Energy Union”.
An underlying issue not much aired is that increased gas infrastructure is necessary not just to improve competition in the energy markets – it is also to compensate for Peak Natural Gas in the North Sea – something many commentators regularly strive to deny. The new Conservative Government policy on energy is not fit to meet this challenge. The new Secretary of State has gone public about the UK Government’s continued commitment to the exploitation of shale gas – a resource that even her own experts can tell her is unlikely to produce more than a footnote to annual gas supplies for several decades. In addition, should David Cameron be forced to usher in a Referendum on Europe, and the voters petulantly pull out of the Europe project, Britain’s control over Natural Gas imports is likely to suffer, either because of the failure of the “Energy Union” in markets and infrastructure, or because of cost perturbations.
Amber Rudd MP is sitting on a mountain of trouble, undergirded by energy policy vapourware : the promotion of shale gas is not going to solve Britain’s gas import surge; the devotion to new nuclear power is not going to bring new atomic electrons to the grid for decades, and the UK Continental Shelf is going to be expensive for the Treasury to incentivise to mine. What Amber needs is a proper energy policy, based on focused support for low carbon technologies, such as wind power, solar power and Renewable Gas to back up renewable electricity when the sun is not shining and wind is not blowing.Academic Freedom, Assets not Liabilities, Be Prepared, Big Picture, British Biogas, Burning Money, Carbon Commodities, Conflict of Interest, Corporate Pressure, Dead End, Demoticratica, Direction of Travel, Disturbing Trends, Energy Autonomy, Energy Change, Energy Insecurity, Energy Revival, Extreme Energy, Fossilised Fuels, Freemarketeering, Green Gas, Green Power, Growth Paradigm, Hydrocarbon Hegemony, Low Carbon Life, Mad Mad World, Major Shift, National Energy, National Power, Natural Gas, No Pressure, Nuclear Nuisance, Nuclear Shambles, Oil Change, Paradigm Shapeshifter, Peak Energy, Peak Natural Gas, Peak Oil, Petrolheads, Policy Warfare, Political Nightmare, Price Control, Realistic Models, Renewable Gas, Renewable Resource, Resource Curse, Resource Wards, Revolving Door, Shale Game, Social Chaos, Social Democracy, Solar Sunrise, Solution City, The Data, The Price of Gas, The Price of Oil, The Right Chemistry, The War on Error, Unconventional Foul, Ungreen Development, Unnatural Gas, Utter Futility, Vain Hope, Wasted Resource, Wind of Fortune
Posted on April 8th, 2015 No comments
Hello, hello; what have we here then ? Royal Dutch Shell buying out BG Group (formerly known as British Gas). Is this the start of the great transition out of petroleum oil into gas fuels ?
Volatile crude petroleum oil commodity prices over the last decade have played some undoubted havoc with oil and gas company strategy. High crude prices have pushed the choice of refinery feedstocks towards cheap heavy and immature gunk; influenced decisions about the choices for new petrorefineries and caused ripples of panic amongst trade and transport chiefs : you can’t keep the engine of globalisation ticking over if the key fuel is getting considerably more expensive, and you can’t meet your carbon budgets without restricting supplies.
Low crude commodity prices have surely caused oil and gas corporation leaders to break out into the proverbial sweat. Heavy oil, deep oil, and complicated oil suddenly become unprofitable to mine, drill and pump. Because the economic balance of refinery shifts. Because low commodity prices must translate into low end user refined product prices.
There maybe isn’t an ideal commodity price for crude oil. All the while, as crude oil commodity prices jump around like a medieval flea, the price of Natural Gas, and the gassy “light ends” of slightly unconventional and deep crude oil, stay quite cheap to produce and cheap to use. It’s a shame that there are so many vehicles on the road/sea/rails that use liquid fuels…all this is very likely to change.
Shell appear to be consolidating their future gas business by buying out the competition. Hurrah for common sense ! The next stage of their evolution, after the transition of all oil applications to gas, will be to ramp up Renewable Gas production : low carbon gas supplies will decarbonise every part of the economy, from power generation, to transport, to heating, to industrial chemistry.
This is a viable low carbon solution – to accelerate the use of renewable electricity – wind power and solar principally – and at the same time, transition the oil and gas companies to become gas companies, and thence to Renewable Gas companies.Academic Freedom, Be Prepared, Big Picture, Carbon Commodities, Change Management, Corporate Pressure, Design Matters, Direction of Travel, Energy Change, Energy Crunch, Energy Insecurity, Energy Revival, Extreme Energy, Feel Gooder, Fossilised Fuels, Fuel Poverty, Green Gas, Growth Paradigm, Hydrocarbon Hegemony, Hydrogen Economy, Low Carbon Life, Major Shift, Marine Gas, Marvellous Wonderful, Methane Management, Money Sings, Natural Gas, No Blood For Oil, Oil Change, Paradigm Shapeshifter, Peak Emissions, Peak Oil, Petrolheads, Policy Warfare, Political Nightmare, Price Control, Realistic Models, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Resource Wards, Solar Sunrise, Solution City, Tarred Sands, Technofix, The Power of Intention, The Price of Gas, The Price of Oil, The Right Chemistry, Transport of Delight, Unconventional Foul, Unnatural Gas, Western Hedge, Wind of Fortune, Zero Net
Posted on March 5th, 2015 1 comment
There are many ways to make a living, but there appear to be zero careers in plainspeaking.
I mean, who could I justify working with, or for ? And would any of them be prepared to accept me speaking my mind ?
Much of what I’ve been saying over the last ten years has been along the lines of “that will never work”, but people generally don’t get consulted or hired for picking holes in an organisation’s pet projects or business models.
Could I imagine myself taking on a role in the British Government ? Short answer : no.
The slightly longer answer : The British Government Department of Energy and Climate Change (DECC) ? No, they’re still hooked on the failed technology of nuclear power, the stupendously expensive and out-of-reach Carbon Capture and Storage (CCS), and the mythical beast of shale gas. OK, so they have a regular “coffee club” about Green Hydrogen (whatever that turns out to be according to their collective ruminations), and they’ve commissioned reports on synthetic methane, but I just couldn’t imagine they’re ever going to work up a serious plan on Renewable Gas. The British Government Department for Transport ? No, they still haven’t adopted a clear vision of the transition of the transport sector to low carbon energy. They’re still chipping away at things instead of coming up with a strategy.
Could I imagine myself taking on a role with a British oil and gas multinational ? Short and very terse and emphatic answer : no.
The extended answer : The oil and gas companies have had generous support and understanding from the world’s governments, and are respected and acclaimed. Yet they are in denial about “unburnable carbon” assets, and have dismissed the need for Energy Change that is the outcome of Peak Oil (whether on the supply or the demand side). Sneakily, they have also played both sides on Climate Change. Several major oil and gas companies have funded or in other ways supported Climate Change science denial. Additionally, the policy recommendations coming from the oil and gas companies are what I call a “delayer’s game”. For example, BP continues to recommend the adoption of a strong price on carbon, yet they know this would be politically unpalatable and take decades (if ever) to bring into effect. Shell continues to argue for extensive public subsidy support for Carbon Capture and Storage (CCS), knowing this would involve such huge sums of money, so it’s never going to happen, at least not for several decades. How on Earth could I work on any project with these corporations unless they adopt, from the centre, a genuine plan for transition out of fossil fuels ? I’m willing to accept that transition necessitates the continued use of Natural Gas and some petroleum for some decades, but BP and Royal Dutch Shell do need to have an actual plan for a transition to Renewable Gas and renewable power, otherwise I would be compromising everything I know by working with them.
Could I imagine myself taking on a role with a large engineering firm, such as Siemens, GE, or Alstom, taking part in a project on manufactured low carbon gas ? I suppose so. I mean, I’ve done an IT project with Siemens before. However, they would need to demonstrate that they are driving for a Renewable Gas transition before I could join a gas project with them. They might not want to be so bold and up-front about it, because they could risk the wrath of the oil and gas companies, whose business model would be destroyed by engineered gas and fuel solutions.
Could I imagine myself building fuel cells, or designing methanation catalysts, or improving hydrogen production, biocoke/biocoal manufacture or carbon dioxide capture from the oceans… with a university project ? Yes, but the research would need to be funded by companies (because all applied academic research is funded by companies) with a clear picture on Energy Change and their own published strategy on transition out of fossil fuels.
Could I imagine myself working on rolling out gas cars, buses and trucks ? Yes. The transition of the transport sector is the most difficult problem in Energy Change. However, apart from projects that are jumping straight to new vehicles running entirely on Hydrogen or Natural Gas, the good options for transition involve converting existing diesel engine vehicles to running mostly on Natural Gas, such as “dual fuel”, still needing roughly 20% of liquid diesel fuel for ignition purposes. So I would need to be involved with a project that aims to supply biodiesel, and have a plan to transition from Natural Gas to Renewable Gas.
Could I imagine myself working with a team that has extensive computing capabilities to model carbon dioxide recycling in power generation plant ? Yes.
Could I imagine myself modelling the use of hydrogen in petroleum refinery, and making technological recommendations for the oil and gas industry to manufacture Renewable Hydrogen ? Possibly. But I would need to be clear that I’m doing it to enable Energy Change, and not to prop up the fossil fuel paradigm – a game that is actually already bust and needs helping towards transition.
Could I imagine myself continuing to research the growth in Renewable Gas – both Renewable Hydrogen and Renewable Methane – in various countries and sectors ? Possibly. It’s my kind of fun, talking to engineers.
But whatever future work I consider myself doing, repeatedly I come up against this problem – whoever asked me to work with them would need to be aware that I do not tolerate non-solutions. I will continue to say what doesn’t work, and what cannot work.
If people want to pay me to tell them that what they’re doing isn’t working, and won’t work, then fine, I’ll take the role.
I’d much rather stay positive, though, and forge a role where I can promote the things that do work, can work and will work.
The project that I’m suitable for doesn’t exist yet, I feel. I’m probably going to continue in one way or another in research, and after that, since I cannot see a role that I could fit easily or ethically, I can see I’m going to have to write my own job description.Academic Freedom, Acid Ocean, Alchemical, Assets not Liabilities, Be Prepared, Big Picture, British Biogas, Carbon Capture, Carbon Commodities, Carbon Pricing, Carbon Taxatious, Change Management, Climate Change, Conflict of Interest, Corporate Pressure, Delay and Deny, Direction of Travel, Energy Autonomy, Energy Change, Energy Denial, Energy Revival, Engineering Marvel, Fossilised Fuels, Gas Storage, Green Gas, Green Investment, Green Power, Growth Paradigm, Hydrocarbon Hegemony, Hydrogen Economy, Low Carbon Life, Methane Management, Modern Myths, National Energy, National Power, Natural Gas, No Blood For Oil, Non-Science, Nuclear Nuisance, Nuclear Shambles, Oil Change, Optimistic Generation, Paradigm Shapeshifter, Policy Warfare, Political Nightmare, Protest & Survive, Realistic Models, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Science Rules, Shale Game, Solution City, Stirring Stuff, Sustainable Deferment, Technofix, The Data, The Power of Intention, The Price of Gas, The Price of Oil, The Right Chemistry, Vote Loser, Wasted Resource, Zero Net
Posted on March 2nd, 2015 No comments
Last week, on the invitation of Dr Paul Elsner at Birkbeck, University of London, I gave a brief address of my research so far into Renewable Gas to this year’s Energy and Climate Change class, and asked and answered lots of questions before demolishing the mythical expert/student hierarchy paradigm – another incarnation of the “information deficit model”, perhaps – and proposed everyone work in breakout groups on how a transition from fossil fuel gas to Renewable Gas could be done.
A presentation of information was important before discussing strategies, as we had to cover ground from very disparate disciplines such as chemical process engineering, the petroleum industry, energy statistics, and energy technologies, to make sure everybody had a foundational framework. I tried to condense the engineering into just a few slides, following the general concept of UML – Unified Modelling Language – keeping everything really simple – especially as processing, or work flow (workflow) concepts can be hard to describe in words, so diagrams can really help get round the inevitable terminology confusions.
But before I dropped the class right into chemical engineering, I thought a good place to start would be in numbers, and in particular the relative contributions to energy in the United Kingdom from gas and electricity. Hence the first slide.
The first key point to notice is that most heat demand in the UK in winter is still provided by Natural Gas, whether Natural Gas in home boilers, or electricity generated using Natural Gas.
The second is that heat demand in energy terms is much larger than power demand in the cold months, and much larger than both power and heat demand in the warm months.
The third is that power demand when viewed on annual basis seems pretty regular (despite the finer grain view having issues with twice-daily peaks and weekday demand being much higher than weekends).
The reflection I gave was that it would make no sense to attempt to provide all that deep winter heat demand with electricity, as the UK would need an enormous amount of extra power generation, and in addition, much of this capacity would do nothing for most of the rest of the year.
The point I didn’t make was that nuclear power currently provides – according to official figures – less than 20% of UK electricity, however, this works out as only 7.48% of total UK primary energy demand (DUKES, 2014, Table 1.1.1, Mtoe basis). The contribution to total national primary energy demand from Natural Gas by contrast is 35.31%. The generation from nuclear power plants has been falling unevenly, and the plan to replace nuclear reactors that have reached their end of life is not going smoothly. The UK Government Department of Energy and Climate Change have been pushing for new nuclear power, and project that all heating will convert to electricity, and that nuclear power will provide for much of this (75 GW by 2050). But if their plan relies on nuclear power, and nuclear power development is unreliable, it is hard to imagine that it will succeed.Academic Freedom, Alchemical, Baseload is History, Be Prepared, Big Number, Big Picture, Big Society, British Biogas, Change Management, Climate Change, Dead End, Demoticratica, Dreamworld Economics, Efficiency is King, Electrificandum, Energy Autonomy, Energy Change, Energy Insecurity, Energy Revival, Engineering Marvel, Fossilised Fuels, Green Gas, Green Investment, Green Power, Hydrocarbon Hegemony, Methane Management, National Energy, National Power, Natural Gas, Nuclear Nuisance, Nuclear Shambles, Optimistic Generation, Paradigm Shapeshifter, Policy Warfare, Political Nightmare, Realistic Models, Regulatory Ultimatum, Renewable Gas, Solution City, Technofix, The Data, The Power of Intention, The Right Chemistry
Posted on February 8th, 2015 No comments
In the last couple of years I have researched and written a book about the technologies and systems of Renewable Gas – gas energy fuels that are low in net carbon dioxide emissions. From what I have learned so far, it seems that another energy world is possible, and that the transition is already happening. The forces that are shaping this change are not just climate or environmental policy, or concerns about energy security. Renewable Gas is inevitable because of a range of geological, economic and industrial reasons.
I didn’t train as a chemist or chemical process engineer, and I haven’t had a background in the fossil fuel energy industry, so I’ve had to look at a number of very basic areas of engineering, for example, the distillation and fractionation of crude petroleum oil, petroleum refinery, gas processing, and the thermodynamics of gas chemistry in industrial-scale reactors. Why did I need to look at the fossil fuel industry and the petrochemical industry when I was researching Renewable Gas ? Because that’s where a lot of the change can come from. Renewable Gas is partly about biogas, but it’s also about industrial gas processes, and a lot of them are used in the petrorefinery and chemicals sectors.
In addition, I researched energy system technologies. Whilst assessing the potential for efficiency gains in energy systems through the use of Renewable Electricity and Renewable Gas, I rekindled an interest in fuel cells. For the first time in a long time, I began to want to build something – a solid oxide fuel cell which switches mode to an electrolysis unit that produces hydrogen from water. Whether I ever get to do that is still a question, but it shows how involved I’m feeling that I want to roll up my sleeves and get my hands dirty.
Even though I have covered a lot of ground, I feel I’m only just getting started, as there is a lot more that I need to research and document. At the same time, I feel that I don’t have enough data, and that it will be hard to get the data I need, partly because of proprietary issues, where energy and engineering companies are protective of developments, particularly as regards actual numbers. Merely being a university researcher is probably not going to be sufficient. I would probably need to be an official within a government agency, or an industry institute, in order to be permitted to reach in to more detail about the potential for Renewable Gas. But there are problems with these possible avenues.
You see, having done the research I have conducted so far, I am even more scornful of government energy policy than I was previously, especially because of industrial tampering. In addition, I am even more scathing about the energy industry “playing both sides” on climate change. Even though there are some smart and competent people in them, the governments do not appear to be intelligent enough to see through expensive diversions in technology or unworkable proposals for economic tweaking. These non-solutions are embraced and promoted by the energy industry, and make progress difficult. No, carbon dioxide emissions taxation or pricing, or a market in carbon, are not going to make the kind of changes we need on climate change; and in addition they are going to be extremely difficult and slow to implement. No, Carbon Capture and Storage, or CCS, is never going to become relatively affordable in any economic scenario. No, nuclear power is too cumbersome, slow and dodgy – a technical term – to ever make a genuine impact on the total of carbon emissons. No, it’s not energy users who need to reduce their consumption of energy, it’s the energy companies who need to reduce the levels of fossil fuels they utilise in the energy they sell. No, unconventional fossil fuels, such as shale gas, are not the answer to high emissions from coal. No, biofuels added to petrofuels for vehicles won’t stem total vehicle emissions without reducing fuel consumption and limiting the number of vehicles in use.
I think that the fossil fuel companies know these proposals cannot bring about significant change, which is precisely why they lobby for them. They used to deny climate change outright, because it spelled the end of their industry. Now they promote scepticism about the risks of climate change, whilst at the same time putting their name to things that can’t work to suppress major amounts of emissions. This is a delayer’s game.
Because I find the UK Government energy and climate policy ridiculous on many counts, I doubt they will ever want me to lead with Renewable Gas on one of their projects. And because I think the energy industry needs to accept and admit that they need to undergo a major change, and yet they spend most of their public relations euros telling the world they don’t need to, and that other people need to make change instead, I doubt the energy industry will ever invite me to consult with them on how to make the Energy Transition.
I suppose there is an outside chance that the major engineering firms might work with me, after all, I have been an engineer, and many of these companies are already working in the Renewable Gas field, although they’re normally “third party” players for the most part – providing engineering solutions to energy companies.
Because I’ve had to drag myself through the equivalent of a “petro degree”, learning about the geology and chemistry of oil and gas, I can see more clearly than before that the fossil fuel industry contains within it the seeds of positive change, with its use of technologies appropriate for manufacturing low carbon “surface gas”. I have learned that Renewable Gas would be a logical progression for the oil and gas industry, and also essential to rein in their own carbon emissions from processing cheaper crude oils. If they weren’t so busy telling governments how to tamper with energy markets, pushing the blame for emissions on others, and begging for subsidies for CCS projects, they could instead be planning for a future where they get to stay in business.
The oil and gas companies, especially the vertically integrated tranche, could become producers and retailers of low carbon gas, and take part in a programme for decentralised and efficient energy provision, and maintain their valued contribution to society. At the moment, however, they’re still stuck in the 20th Century.
I’m a positive person, so I’m not going to dwell too much on how stuck-in-the-fossilised-mud the governments and petroindustry are. What I’m aiming to do is start the conversation on how the development of Renewable Gas could displace dirty fossil fuels, and eventually replace the cleaner-but-still-fossil Natural Gas as well.Academic Freedom, Advertise Freely, Alchemical, Assets not Liabilities, Be Prepared, Behaviour Changeling, Big Number, Biofools, British Biogas, Burning Money, Carbon Capture, Carbon Commodities, Carbon Pricing, Carbon Taxatious, Change Management, Climate Change, Conflict of Interest, Corporate Pressure, Cost Effective, Dead End, Delay and Deny, Divest and Survive, Divide & Rule, Dreamworld Economics, Drive Train, Economic Implosion, Efficiency is King, Emissions Impossible, Energy Calculation, Energy Change, Energy Crunch, Energy Denial, Energy Insecurity, Energy Revival, Engineering Marvel, Evil Opposition, Extreme Energy, Financiers of the Apocalypse, Fossilised Fuels, Freemarketeering, Gamechanger, Geogingerneering, Global Warming, Green Gas, Green Power, Hydrocarbon Hegemony, Hydrogen Economy, Insulation, Low Carbon Life, Mad Mad World, Major Shift, Mass Propaganda, Methane Management, Money Sings, National Energy, National Power, Natural Gas, Nuclear Shambles, Oil Change, Optimistic Generation, Orwells, Paradigm Shapeshifter, Peak Coal, Peak Emissions, Policy Warfare, Political Nightmare, Price Control, Public Relations, Realistic Models, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Revolving Door, Shale Game, Solution City, Stirring Stuff, The Data, The Power of Intention, The Right Chemistry, The Science of Communitagion, The War on Error, Unnatural Gas, Unutterably Useless, Utter Futility, Vain Hope, Voluntary Behaviour Change, Vote Loser, Western Hedge
Posted on November 23rd, 2014 2 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.Academic Freedom, Alchemical, Assets not Liabilities, Bait & Switch, British Biogas, Change Management, Climate Change, Delay and Deny, Direction of Travel, Energy Change, Energy Revival, Fossilised Fuels, Gas Storage, Green Gas, Green Investment, Green Power, Hydrocarbon Hegemony, Hydrogen Economy, Low Carbon Life, Media, Modern Myths, Natural Gas, Orwells, Protest & Survive, Pure Hollywood, Realistic Models, Renewable Gas, Renewable Resource, Solar Sunrise, Solution City, Stirring Stuff, Sustainable Deferment, Technofix, The Myth of Innovation, The Power of Intention, The Right Chemistry, The War on Error, Wind of Fortune, Zero Net
Posted on November 22nd, 2014 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. ]
Ian Christie of the Sustainable Lifestyles Research Group (SLRG) at the University of Surrey 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 joked that his colleague Tim Jackson, who has written a best-selling book “Prosperity Without Growth”, sometimes feels he is on a permanent global tour, given the huge impact his work has had worldwide. The “paradox” is that his carbon footprint is enormous. Yet clearly there is great benefit from travel to present the messages from Tim’s research. This illustrates the clash of goods and values that is always present in our attempts to reduce our impacts and change lifestyles. Ian said that we shouldn’t beat ourselves up too much about our carbon emissions-filled lifestyles – many of us are doing reasonably 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 challenge humanity has set itself.
Ian said, “Between 5% and 10% of the population (and this figure hasn’t changed over the last several years) are consistently trying to live as sustainably as they can in all areas of their lives. Meanwhile, another small segment – maybe 10% – 15% don’t care at all. The other two-thirds or more, including myself, are in the middle ground. We get confused. We sometimes give up on making particular changes. We might feel that taking the trouble on environmental issues is a bit 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, “As advocates of change, we don’t tell positive stories very well. We environmentalists have been much better at telling the alarming or apocalyptic event, rather than explaining the diagnosis of unsustainability. There’s a lack of supporting infrastructure for doing the sustainable things in everyday life. People get locked-in to high-carbon behaviours. We might want to do the green, sustainable thing but we can’t. The idea that “joy in less” is possible can seem 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 feel like it is bringing real benefits. It can be fun.”
Ian Christie remarked about the RESOLVE research at Surrey on the sense of “threatened identities”, a feeling that can arise when we’re asked to change our lifestyles – an important part of our identity can seem to be at stake. There is a lack of positive incentives 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, or feel that they are giving a ‘proper meal’ to their loved ones, 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, an assault on the idea that 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”.
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 joked that he has discovered that many people had a dirty secret, which he calls “Top Gear Syndrome” – “you’d be surprised how many environmentalists like watching Top Gear”. He also mentioned what he termed “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 – many Greens included.
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 – we like to feel that we fit in with our peers and 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 single ‘best buy’ policy” and that action will tend to be in the form of “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 in ways that support a shift to sustainable lifestyles. We need to address people’s intrinsic values as well as material self-interest.
Ian talked about some of the results of the research from the DEFRA-funded 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 energy efficiency gains or other measures, and then spend the saved money in ways that can 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 re-spending (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 a small but significant effect with house-movers – who are much more likely to act on information if they are given well-timed and designed information packages on green living – but only a small minority are truly motivated. He asked “how do we magnify this effect ?” The sheer act of moving house makes people amenable to change. Research has also shown that there might be 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 necessarily express this desire in terms of sustainable living.
Ian said that the “window of opportunity” for introducing lifestyle change might be quite limited, perhaps a few months – and so people would not sustain their new habits without “lifestyle support systems”. People might not want to hear from a green group, but could 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 for encouraging changes. He said people get demotivated 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…
Ian Christie said that Church of England work on “Shrinking the Footprint” was poised to make fresh progress, with leadership from the new lead bishop on the environment, Rt Revd Nicholas Holtam.
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 ? What about Cathedral Innovation Centres as catalysts for sustainable living schemes ? Why not partner with the National Trust or the National Health Service over environmental issues ? He said the NHS has a Sustainable Development Strategy – “one of the best I’ve seen”. How about calling for a New Green Deal for Communities ? One 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 to ecological challenges.
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 fossil energy producing companies, there is a massive challenge in responding to climate change. He pointed to Unilever, who are beginning to see themselves as pioneers in a new model of sustainable business. There is a clear divergence of interest between fossil fuel producers and companies whose core business is being put at risk by climate disruption.
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 ourselves, with our high-carbon consumption, are ‘the enemy’, if we want to put it like that. We are not in a process where people can be mobilised as in a war.” He said that the churches need to bring climate change into every talk, every sermon “this is how we do Christian witness”.
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. He said that mass letter writing to MPs is one way in which others seeking to influence policy “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 candidates.
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.Academic Freedom, Bait & Switch, Behaviour Changeling, Big Picture, Big Society, Burning Money, Carbon Taxatious, Change Management, Climate Change, Climate Chaos, Climate Damages, Conflict of Interest, Cool Poverty, Corporate Pressure, Demoticratica, Direction of Travel, Divide & Rule, Eating & Drinking, Economic Implosion, Energy Autonomy, Energy Change, Energy Disenfranchisement, Energy Revival, Environmental Howzat, Evil Opposition, Faithful God, Feed the World, Feel Gooder, Financiers of the Apocalypse, Food Insecurity, Fossilised Fuels, Freemarketeering, Gamechanger, Growth Paradigm, Health Impacts, Human Nurture, Hydrocarbon Hegemony, Landslide, Libertarian Liberalism, Mass Propaganda, No Pressure, Nudge & Budge, Optimistic Generation, Paradigm Shapeshifter, Petrolheads, Policy Warfare, Political Nightmare, Protest & Survive, Realistic Models, Regulatory Ultimatum, Screaming Panic, Social Capital, Social Change, Social Democracy, Solution City, The Power of Intention, The Science of Communitagion, Voluntary Behaviour Change, Vote Loser
Posted on November 19th, 2014 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 of 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.
[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 ?Academic Freedom, Alchemical, Arctic Amplification, Assets not Liabilities, Big Number, Biofools, Carbon Capture, Carbon Commodities, Carbon Pricing, Carbon Rationing, Carbon Taxatious, Change Management, China Syndrome, Climate Change, Climate Damages, Coal Hell, Conflict of Interest, Corporate Pressure, Cost Effective, Dead End, Deal Breakers, Delay and Deny, Demoticratica, Direction of Travel, Dreamworld Economics, Economic Implosion, Efficiency is King, Emissions Impossible, Energy Change, Energy Denial, Energy Insecurity, Extreme Energy, Financiers of the Apocalypse, Foreign Investment, Fossilised Fuels, Freemarketeering, Green Investment, Growth Paradigm, Hydrocarbon Hegemony, Insulation, Marine Gas, Mass Propaganda, Modern Myths, Money Sings, Natural Gas, Nuclear Nuisance, Nuclear Shambles, Oil Change, Optimistic Generation, Orwells, Peak Emissions, Peak Natural Gas, Peak Oil, Petrolheads, Policy Warfare, Political Nightmare, Price Control, Public Relations, Realistic Models, Regulatory Ultimatum, Shale Game, Social Change, Solar Sunrise, Solution City, Stirring Stuff, Tarred Sands, The Price of Oil, The Right Chemistry, Unnatural Gas, Wind of Fortune
Posted on November 12th, 2014 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…]Academic Freedom, Advancing Africa, Assets not Liabilities, Big Picture, Change Management, China Syndrome, Climate Change, Coal Hell, Deal Breakers, Design Matters, Direction of Travel, Emissions Impossible, Energy Change, Energy Revival, Fossilised Fuels, Green Gas, Hydrocarbon Hegemony, Marvellous Wonderful, Methane Management, Natural Gas, Nudge & Budge, Optimistic Generation, Paradigm Shapeshifter, Peak Coal, Peak Emissions, Peak Energy, Peak Natural Gas, Price Control, Realistic Models, Regulatory Ultimatum, Renewable Gas, Science Rules, Shale Game, Solution City, The Data, The Power of Intention, The Price of Gas, The Price of Oil, The Right Chemistry, The War on Error, Unconventional Foul, Unnatural Gas
Posted on November 10th, 2014 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…Baseload is History, Big Picture, Burning Money, Carbon Army, Change Management, Conflict of Interest, Corporate Pressure, Cost Effective, Design Matters, Direction of Travel, Disturbing Trends, Dreamworld Economics, Economic Implosion, Efficiency is King, Electrificandum, Energy Change, Energy Crunch, Energy Revival, Financiers of the Apocalypse, Freemarketeering, Gamechanger, Green Investment, Green Power, Growth Paradigm, Insulation, Optimistic Generation, Policy Warfare, Political Nightmare, Price Control, Regulatory Ultimatum, Renewable Resource, Revolving Door, Solar Sunrise, Solution City, Stirring Stuff, The Myth of Innovation, Western Hedge, Wind of Fortune
Posted on November 9th, 2014 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 :-
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 DevelopmentAcademic Freedom, Advertise Freely, Bait & Switch, Be Prepared, Big Picture, Big Society, Burning Money, Carbon Army, Carbon Capture, Carbon Commodities, Carbon Pricing, Carbon Taxatious, Change Management, Climate Change, Coal Hell, Conflict of Interest, Cost Effective, Deal Breakers, Demoticratica, Divide & Rule, Emissions Impossible, Energy Autonomy, Energy Change, Energy Denial, Energy Insecurity, Energy Revival, Engineering Marvel, Fossilised Fuels, Freemarketeering, Gamechanger, Global Warming, Green Investment, Green Power, Hydrocarbon Hegemony, Landslide, Libertarian Liberalism, Low Carbon Life, Major Shift, Mass Propaganda, Media, Money Sings, National Energy, National Power, Nuclear Nuisance, Oil Change, Optimistic Generation, Orwells, Paradigm Shapeshifter, Peak Coal, Peak Emissions, Peak Natural Gas, Peak Oil, Policy Warfare, Political Nightmare, Protest & Survive, Public Relations, Realistic Models, Regulatory Ultimatum, Renewable Gas, Resource Wards, Social Capital, Social Change, Social Chaos, Social Democracy, Solar Sunrise, Solution City, Stirring Stuff, Sustainable Deferment, The Science of Communitagion, The War on Error, Unsolicited Advice & Guidance, Vote Loser, Western Hedge, Wind of Fortune
Posted on November 2nd, 2014 No comments
I’m all for peak shaving, so we tried a low power kettle at home, but it rusted. So we tried another one, and the lid broke. Seriously, the low wattage appliance manufacturers need to get their act together. No, we don’t just want low energy appliances because we spend our holidays in a motor home powering everything off a cigarette lighter in a car, or a 12 volt car battery. Our kettle is not for occasional use. It needs to last.
So, we plugged in the spare kettle – the one that had been sitting on top of the kitchen cupboard attracting spiders and flying fat in the form of aerosols from frying pans. Ergh. Sticky. Yuck. So we cleaned it. Then it caused a power surge and blew the fuses and melted a plug socket. Yikes. Time to buy a new kettle. Again. And time to call an NICEIC registered tradesperson. Man of the moment, Carl, turned up ready for a chat.
We discussed some of the finer points of electrical conductivity and sparks and arcing, and why I prefer to turn the toaster off at night. Because of the dangers of carbonised breadcrumbs. Carl replaces the double wall socket, and then he asks me what I’m doing at the moment, since he recalls chatting with me last year on a service call.
I say I’m writing a book about Renewable Gas, and then I leave silence in the air for a few seconds for his brain to fire off some neurons and make a few connections. He asks whether I mean biogas. I say, yes, partly. We talk about cow burps, and why some humans cannot expel methane, because of the differing flora and fauna in their guts. I say that people can produce appreciable amounts of hydrogen gas from their intestines as well as hydrogen sulfide and other sulfur compounds. We talk about mercaptans, the smelly sulfur chemicals added to Natural Gas to make sure people can detect leaks because both methane and hydrogen are actually colourless and odourless. Both of us appear to be pretty good at detecting gas leaks in the urban landscape – he once reported one at a gasometer – an old-fashioned gas storage device with a lifting centre. We both commented that the mercaptans seem to stick to gas appliances as they always seem to be smelly close up.
I say that although it’s not really practical to capture cow burps unless they’re all in a shed at night, I say that there is a lot of scope for developing biogas from anaerobic digestion of waste, and also gas from sewage treatment. And then I say that Renewable Gas needs to get bigger than just biologically-derived gas – there is scope for manufacturing gas. We used to manufacture gas, from coal, stored in gasometers in a decentralised fashion. I say Renewable Gas is about scaling up industrial gas – such as producing Renewable Hydrogen, recycling carbon dioxide by methanation with Renewable Hydrogen.
I say, look at Germany. Germany has a plan. By around 2025 they aim to have at least 10% of their gas supplies coming from sustainable and renewable resources – 2% hydrogen and 8% renewable methane. And of course, Natural Gas is 75% to 95% methane, so green methane can be directly substituted for fossil methane.
I talk about the basic chemistry comparing combustion to gasification. He asks what gasification is – is it like making liquids into gas ? No, I say, it’s chemistry. In normal combustion, or oxidation, the end products are steam, or water – H2O – and carbon dioxide – CO2. I draw on a piece of paper. In gasification, the oxygen is restricted – partial oxidation – and the end products are hydrogen – H2 – instead of H2O, and carbon monoxide – CO – instead of CO2. These are both useful fuels, although the carbon monoxide is toxic. Plus, after you’ve removed tars, carbon dust and ash, these are clean fuels, unlike the raw resources. You could use biomass as the feedstock and make this a useful way to make larger volumes of green gas.
I said that Renewable Gas is a good complement to Renewable Electricity – because the wind does not always blow and the sun does not always shine. I said that to really promote the use of both, we need to have massive amounts of new renewable power, to provide spare electricity to make Renewable Gas.
We talked about how there could be so much more progress with Renewable Electricity. We talked about Liz Truss dismissing solar farms because she believes they conflict with agricultural production. Carl and I both shrugged. I said sheep may safely graze under solar panels mounted on frames. Or chickens. I asked Carl somewhat rhetorically what the difference was between a solar farm and a field of greenhouses ? He couldn’t know, and he told me about how he’d been to see a fascinating farm where they had solar greenhouses, making power to grow vegetables.
Posted on October 25th, 2014 No comments
How do we get things changed in a democracy ? The model of political campaigning that has been established over the last century is failing us. In the past, if there was a problem, a small group of people could create a fuss about it, march some placards to somewhere relevant, write some letters, talk to some dignitaries, chain themselves to some railings, occupy a lobby, get some press, and after some years, maybe, get something done.
These days there are just too many complaints for them all to be heard. Philanthropic, charitable and political messages crowd the stage. In this age of social media, the campaign metaphor has been replaced by a ladder of concern. Concern is expressed. Hopefully others will find that they too are sufficiently concerned, and reflect that concern through some medium. And slowly, it is hoped, this concern climbs the ladder of attention, until it is visible, audible. The entitled and endowed middle classes catch the concern, and repeat it. Lots of emails fly. George Monbiot writes about it in The Guardian. Some speeches are made at serious meetings. Angelina Jolie is invited to grace a conference. And then, hopefully, this concern hits the people who have some kind of leverage over the problem, and they act.
Action is almost guaranteed if the concern is the result of a specific outrage, committed by a specific person or group, and has a specific solution. But otherwise, who knows ? How universal and impactful does a concern need to be before it gets acted upon ? And surely some things don’t need campaigns, because the governments already know enough about problems such as people trafficking, slavery, animal welfare, crime and torture ? After all, things such as prostitution and illegal drug trade are included in national economic statistics.
I took public transport today in London and I was doused in outrage pouring from advertisements asking for charitable giving to prevent the inhuman practice of Female Genital Mutilation (FGM). As I read these appeals, I felt two overwhelming sensations – one of intense anger that children are being permanently injured because of insane and unjustifiable, hateful beliefs about female sexuality. And a second feeling of dragging despair that giving a small donation every month to this organisation would have very little impact on abusive culture, which leads to many forms of violation, not just the unimaginably painful and destructive incision and even resection of a child’s clitoris and the sewing together of her labia, leading to permanent nerve damage, lasting wounds, loss of sexual function, complications from incontinence, ruined relationships, injuries from sexual intercourse, and serious medical risks during childbirth, and possibly the need for reconstructive surgery.
This is a problem which cannot be fixed by expressing normal murmurs of concern, building a wave of concern that climbs a ladder of concern, or making monthly token charitable payments. This concern is not susceptible to a campaign. What this problem needs is regulation, legislation, policing. This concern shouldn’t have to compete with all the other concerns out there, like distressed retired donkeys, threatened butterflies, meltdown polar bears, de-forested orangutans and by-catch dolphins. Some things just shouldn’t happen. They just shouldn’t be tolerated. And they shouldn’t be lost amongst an avalanche of other concerns. This problem is so serious that it should be an automatic priority for all the authorities, co-ordinating to detect and prevent it. This concern shouldn’t have to campaign for funds. Or attention.
Switch to BBC News. Roger Harrabin reports that “The UK’s chief scientist says the oceans face a serious and growing risk from man-made carbon emissions. […] Sir Mark Walport warns that the acidity of the oceans has increased by about 25% since the industrial revolution, mainly thanks to manmade emissions. […] He told BBC News: “If we carry on emitting CO2 [carbon dioxide] at the same rate, ocean acidification will create substantial risks to complex marine food webs and ecosystems.” […] The consequences of acidification are likely to be made worse by the warming of the ocean expected with climate change, a process which is also driven by CO2.”
Media Lens Editors reported this piece. My reaction was – who would be paying attention to this ? This is not the “dangerous climate change comes from global warming” story, this is the “other” carbon problem, the decimation of marine productivity and the whole pyramid of life, resulting from increasing levels of dissolved carbon dioxide in seawater because of higher levels of carbon dioxide in the air. The overwhelmingly major causes of this problem are irrefutably and definitely fossil fuel combustion, and its seriousness is hard to deny, even though Roger Harrabin attempts to make light of it by devoting column inches to a laboratory crab who isn’t getting with the programme.
Ocean acidification is a concern that shouldn’t get lost in amongst other concerns. It should be paid serious levels of attention. And not just by middle class philanthropists who work for non-governmental organisations and charities. And yet, cursory analysis of the segmentation of the population who treat BBC News as a main and trusted information source may suggest that the only readers who would act on this piece are exactly these middle class charity staff, or at a push, retired middle class charity staff.
My Media Lens comment was, “Right expert. Right message. Wrong audience. Wrong medium. The UK Government’s chief scientist. OK. Good. Ocean acidification. OK. Good. No quibbles about whether or not extra carbon dioxide in the atmosphere is a real problem or not (as known as “climate change” or “global warming”, which is real by the way). The BBC News. Wrong medium. Wrong audience. The only people going to listen to this are those who already know about the problem but are still as powerless to act as they were yesterday. The UK Government should present this information to the oil, gas and coal companies with a polite request for them to unveil their plan of action in the face of this undeniable problem.”
There is no reason why this story should be covered in BBC News by Roger Harrabin. What can anybody reading it do about the problem ? There is no purpose for this article. It is a pointless statement of concern, or rather, a belittling rehearsal of the concern. Unless this article, and the thousands like it, lead to the Government demanding answers on Energy Change from the fossil fuel companies, there is no point in reporting it, or in this case, disparaging it with faint humour.
The only time that ocean acidification should appear in a media piece is to report that the problem has been presented to the architects of increased ocean carbon dioxide, and answers have been requested.
And who are the architects of increased atmospheric and ocean carbon dioxide ? Those who mine fossil fuels. Those companies like BP and Shell, ExxonMobil, and all the coal extraction companies should act. They should offer us alternative non-fossil fuel energy. And the news should be about how these companies are taking action to offer us Renewable Hydrogen, Renewable Methane, solar power, wind power and Zero Carbon transport fuels.
Answers from the past will simply not do. Trying to assert that somebody needs to pay for pollution won’t prevent pollution occurring. Carbon taxes or carbon pricing won’t work – since they won’t prevent the mining of fossil fuels – and if fossil fuels are mined, of course they will be burned. Carbon combustion quotas won’t work – since economic wealth is based on burning carbon, so many forces will conspire to maintain levels of fossil fuel combustion. Carbon mining quotas won’t work, since the forces for increasing mining quotas are strong. Carbon trading won’t work, since it won’t reduce the amount of fossil fuels mined – because, obviously, if fossil fuels are mined, they will be burned.
I am tired of reading about climate change, global warming, freshwater stress and ocean acidification in the news. It seems there is nothing I can do that I have not already done that can provide a solution to these problems. Enough with communicating the disaster. I want to read about engineering and energy companies who have switched business models to producing Zero Carbon energy. I want to hear how energy security concern is taking oil, gas and coal companies towards Renewable Everything.Acid Ocean, Animal Kingdoom, Babykillers, Behaviour Changeling, Big Picture, Big Society, Carbon Capture, Carbon Commodities, Carbon Pricing, Carbon Rationing, Carbon Taxatious, Change Management, Climate Change, Climate Chaos, Climate Damages, Coal Hell, Corporate Pressure, Demoticratica, Disturbing Trends, Divide & Rule, Emissions Impossible, Energy Autonomy, Energy Crunch, Energy Denial, Energy Disenfranchisement, Energy Insecurity, Engineering Marvel, Fossilised Fuels, Freshwater Stress, Gamechanger, Global Heating, Global Singeing, Global Warming, Green Gas, Green Power, Human Nurture, Hydrogen Economy, Landslide, Mad Mad World, Major Shift, Mass Propaganda, Media, Meltdown, Oil Change, Paradigm Shapeshifter, Peak Coal, Peak Emissions, Peak Energy, Peak Natural Gas, Peak Oil, Policy Warfare, Political Nightmare, Public Relations, Pure Hollywood, Regulatory Ultimatum, Renewable Gas, Resource Curse, Screaming Panic, Social Capital, Social Change, Social Chaos, Social Democracy, Solar Sunrise, Solution City, Stirring Stuff, The Science of Communitagion, Vote Loser, Wind of Fortune, Zero Net
Posted on May 24th, 2014 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.Academic Freedom, Advancing Africa, Alchemical, Assets not Liabilities, Behaviour Changeling, Big Picture, Big Society, Carbon Commodities, Carbon Pricing, Carbon Taxatious, Change Management, Climate Change, Climate Chaos, Coal Hell, Conflict of Interest, Contraction & Convergence, Corporate Pressure, Dead End, Deal Breakers, Demoticratica, Design Matters, Direction of Travel, Divide & Rule, Dreamworld Economics, Emissions Impossible, Energy Change, Energy Crunch, Energy Denial, Energy Disenfranchisement, Engineering Marvel, Evil Opposition, Extreme Weather, Feed the World, Foreign Interference, Foreign Investment, Fossilised Fuels, Freemarketeering, Gamechanger, Geogingerneering, Global Singeing, Green Gas, Green Investment, Green Power, Human Nurture, Hydrocarbon Hegemony, Low Carbon Life, Mad Mad World, Major Shift, Money Sings, National Energy, National Power, Paradigm Shapeshifter, Peak Emissions, Petrolheads, Policy Warfare, Political Nightmare, Protest & Survive, Realistic Models, Regulatory Ultimatum, Renewable Gas, Revolving Door, Social Capital, Social Change, Social Chaos, Social Democracy, Solution City, Stirring Stuff, Technofix, The Power of Intention, The Science of Communitagion, The War on Error, Ungreen Development, Unutterably Useless, Utter Futility, Vain Hope, Western Hedge, Zero Net
Posted on May 24th, 2014 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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Posted on May 2nd, 2014 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.Academic Freedom, Alchemical, Assets not Liabilities, Baseload is History, Be Prepared, Big Picture, Carbon Recycling, Change Management, Corporate Pressure, Demoticratica, Design Matters, Direction of Travel, Economic Implosion, Energy Autonomy, Energy Calculation, Energy Change, Energy Insecurity, Engineering Marvel, Environmental Howzat, Extreme Energy, Fossilised Fuels, Freemarketeering, Fuel Poverty, Gamechanger, Gas Storage, Green Gas, Green Investment, Green Power, Major Shift, National Power, Optimistic Generation, Paradigm Shapeshifter, Peak Natural Gas, Petrolheads, Policy Warfare, Political Nightmare, Protest & Survive, Realistic Models, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Shale Game, Social Democracy, Solution City, Technofix, Technological Sideshow, The Power of Intention, The Right Chemistry, The War on Error, Unconventional Foul, Unnatural Gas, Western Hedge, Wind of Fortune
Posted on May 2nd, 2014 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 :-
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.Academic Freedom, Alchemical, Artistic Licence, Baseload is History, Be Prepared, Behaviour Changeling, Big Number, Big Picture, Big Society, Bioeffigy, Biofools, Biomess, British Biogas, Burning Money, Carbon Army, Change Management, Climate Change, Cool Poverty, Cost Effective, Deal Breakers, Design Matters, Efficiency is King, Electrificandum, Emissions Impossible, Energy Change, Energy Insecurity, Fossilised Fuels, Fuel Poverty, Gamechanger, Global Heating, Green Gas, Green Power, Heatwave, Human Nurture, Hydrogen Economy, Insulation, Major Shift, National Energy, Nudge & Budge, Optimistic Generation, Paradigm Shapeshifter, Peak Emissions, Policy Warfare, Political Nightmare, Realistic Models, Regulatory Ultimatum, Renewable Gas, Renewable Resource, Social Capital, Solution City, Technofix, The Data, The Power of Intention, The Right Chemistry, Voluntary Behaviour Change, Wasted Resource, Wind of Fortune
Posted on April 27th, 2014 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.
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Posted on March 15th, 2014 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.
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
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
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
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
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
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
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.
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