I knew I knew her from somewhere, Ms Henrietta Lynch PhD, from the UCL Energy Institute. I had the feeling we’d sheltered together from the rain/police helicopters at a Climate Camp somewhere, but she was fairly convinced we’d crossed paths at the Frontline Club, where, if she was recalling correctly, I probably tried to pick an “difference of opinion” with somebody, which she would have remembered as more than a little awkward. | |
Why ? Because when I’m surrounded by smart people displaying self-confidence, I sometimes feel pushed to try to irritate them out of any complacency they may be harbouring. Niceness can give me itchy feet, or rather emotional hives, and I don’t see why others should feel settled when I feel all scratchy. So here we were at a Parliamentary event, and I was on my best behaviour, neither challenging nor remonstrative, but all the same, I felt the urge to engage Henrietta in disagreement. It was nothing personal, really. It was all about cognition, perception – worldviews, even. After my usual gauche preamble, I snuck in with a barbed gambit, “The United Nations climate change process has completely failed.” A shadow of anxiety crossed her brow. “Oh, I wouldn’t say that”, said Henrietta Lynch. She went on to recount for me the validity of the UN climate talks, and how much further we are because of the Kyoto Protocol. “Ruined by Article 12”, I said, “…the flexible mechanisms”. She said I shouldn’t underestimate the effort that had gone into getting everybody into the room to talk about a response to climate change. I said, it would be useful if the delegates to the climate talks had power of some kind – executive decision-making status. Henrietta insisted that delegates to the climate talks do indeed have authority. I said that the really significant players, the oil and gas production companies, were not at the climate talks, and that there would be no progress until they were. I said that the last time the UN really consulted the oil and gas companies was in the 1990s, and the outcome of that was proposals for carbon trading and Carbon Capture and Storage. Each year, I said, the adminstration of the climate talks did the diplomatic equivalent of passing round a busker’s hat to the national delegations, begging for commitments to carbon emissions reductions. Besides leading to squabbling and game-playing, the country representatives do not even have the practical means of achieving these changes. Instead, I said, the energy production companies should be summoned to the climate talks and given obligations – to decarbonise the energy resources they sell, and to increase their production of renewable and sustainable energy. I said that without that, there will be no progress. Oil and gas companies always point to energy demand as their get-out-of-jail-free card – they insist that while the world demands fossil fuel energy, they, the energy resource companies, are being responsible in producing it. Their economists say that consumer behaviour can be modified by pricing carbon dioxide emissions, and yet the vast majority of the energy they supply is full of embedded carbon – there is no greener choice. They know that it is impossible to set an economically significant carbon price in any form, that there are too many forces against it, and that any behavioural “signal” from carbon pricing is likely to be swallowed up by volatility in the prices of fossil fuels, and tax revenue demands. Most crucially, the oil and gas companies know that fossil fuels will remain essential for transport vehicles for some time, as it will be a long, hard struggle to replace all the drive engines in the world, and high volumes of transport are essential because of the globalised nature of trade. Oil and gas companies have made token handwaving gestures towards sustainability. BP has spent roughly 5% of its annual budget on renewable energy, although it’s dropped its solar power division, and has now dropped its cellulosic ethanol facility. BP says that it will “instead will focus on research and development“. Research and development into what, precisely ? Improved oil and gas drilling for harsh environmental conditions like the Arctic Ocean or sub-sea high depth, high pressure fields ? How many renewable energy pipedreams are exhausted ? BP are willing to take competitors to court over biobutanol, but even advanced techniques to produce this biofuel are not yet commercialised. So, the oil and gas majors do not appear to be serious about renewable energy, but are they also in denial about fossil fuels ? All business school graduates, anybody who has studied for an MBA or attended an economics course, they all come out with the mantra that technology will deliver, that innovation in technology will race ahead of the problems. Yet, as the rolling disasters of the multiple Fukushima Dai-ichi nuclear reactor accident and the continuing oil spill in the Gulf of Mexico from the blowout of the Horizon Deepwater drilling rig show, technological advancement ain’t what it used to be. Put not your faith in technology, for engineering may fail. For the oil and gas companies to be going after the development of unconventional fossil fuel resources is an unspoken, tacit admission of failure – not only of holding a bold vision of change, but also a demonstration of the failure of being able to increase production from discoveries of more conventional petroleum and Natural Gas. It is true that oil and gas exploration has improved, and that technology to drill for oil and gas has improved, but it could be said that the halting pace of technological advancement means that the growth in fossil fuel exploitation is not strong enough to meet projected demand. Technology does not always make things more efficient – the basic fossil fuel resources are getting much poorer, and perhaps scarcer. There is some evidence that global petroleum crude oil production rates have peaked, despite BP adding significant South American heavy oil fields to their annual Statistical Review of World Energy within the last few years. Some of the jitteriness in total production is down to geopolitical factors, like the chokehold that the United States has imposed on Iran via economic sanctions, and some of it is related to consumption patterns, but there is an element of resource failure, as indicated in this IMF report from last month :- “Over the past decade the world economy has experienced a persistent increase in oil prices. While part of this may have been due to continued rapid demand growth in emerging markets, stagnant supply also played a major role. Figure 1 shows the sequence of downward shifts in the trend growth rate of world oil production since the late 1960s. The latest trend break occurred in late 2005, when the average growth rate of 1.8 percent per annum of the 1981-2005 period could no longer be sustained, and production entered a fluctuating plateau that it has maintained ever since.” There is an increasing amount of evidence and projection of Peak Oil from diverse sources, so perhaps our attention should be drawn to it. If this type of analysis is to be trusted, regardless of whether the oil and gas companies pursue unconventional oil, change is inevitable. Bringing the oil and gas companies onto the world stage at the United Nations climate talks and demanding a reduction in fossil fuel production would be an straightford thing to make commitments to – as it is happening already. A huge facesaver in many respects – except that it does not answer the energy security question – how the world is going to be able to adapt to falling fossil fuel supplies. You see, besides Peak Oil, there are other peaks to contend with – it will not simply be a matter of exchanging one energy resource with another. Can the oil and gas companies hold on by selling us Natural Gas to replace failing oil ? Only if Natural Gas itself is not peaking. As the oil and gas companies drill deeper, more Natural Gas is likely to be found than petroleum oil, but because they are so often associated, Peak Oil is likely to be followed quite sharply by Peak Natural Gas. But does anybody in the oil and gas companies really know ? And if they did, would they be able to let their shareholders and world’s media know about it without their businesses crumbling ? What I want to know is : with all the skills of dialogue, collaboration, and facilitation that the human race has developed, why can Civil Society not engage the oil and gas companies in productive communication on these problems ? |
Category: Technofix
Herşeyi Yak : Burn Everything
There’s good renewable energy and poorly-choiced renewable energy. Converting coal-burning power stations to burn wood is Double Plus Bad – it’s genuiunely unsustainable in the long-term to plan to combust the Earth’s boreal forests just to generate electricity. This idea definitely needs incinerating.
Gaynor Hartnell, chief executive of the Renewable Energy Association recently said, “Right now the government seems to have an institutional bias against new biomass power projects.” And do you know, from my point of view, that’s a very fine thing.
Exactly how locally-sourced would the fuel be ? The now seemingly abandoned plan to put in place a number of new biomass burning plants would rely on wood chip from across the Atlantic Ocean. That’s a plan that has a number of holes in it from the point of view of the ability to sustain this operation into the future. Plus, it’s not very efficient to transport biomass halfway across the world.
And there’s more to the efficiency question. We shouldn’t be burning premium wood biomass. Trees should be left standing if at all possible – or used in permanent construction – or buried so that they don’t decompose – if new trees need to be grown. Rather than burning good wood that could have been used for carbon sequestration, it would be much better, if we have to resort to using wood as fuel, to gasify wood waste and other wood by-products in combination with other fuels, such as excavated landfill, food waste and old rubber tyres.
Co-gasifying of mixed fuels and waste would allow cheap Carbon Capture and Storage (CCS) or Carbon Capture and (Re)Utilisation (CCU) options – and so if we have to top up the gasifiers with coal sometimes, at least it wouldn’t be leaking greenhouse gas to the atmosphere.
No, we shouldn’t swap out burning coal for incinerating wood, either completely or co-firing with coal. We should build up different ways to produce Renewable Gas, including the gasification of mixed fuels and waste, if we need fuels to store for later combustion. Which we will, to back up Renewable Electricity from wind, solar, geothermal, hydropower and marine resources – and Renewable Gas will be exceptionally useful for making renewable vehicle fuels.
Bioenergy with Carbon Capture and Storage : the wrong way :-
https://www.biofuelwatch.org.uk/wp-content/uploads/BECCS-report.pdf
Bioenergy with Carbon Capture and Storage : the right way :-
https://www.ecolateral.org/Technology/gaseifcation/gasificationnnfc090609.pdf
“The potential ability of gasifiers to accept a wider range of biomass feedstocks than biological routes. Thermochemical routes can use lignocellulosic (woody) feedstocks, and wastes, which cannot be converted by current biofuel production technologies. The resource availability of these feedstocks is very large compared with potential resource for current biofuels feedstocks. Many of these feedstocks are also lower cost than current biofuel feedstocks, with some even having negative costs (gate fees) for their use…”
https://www.uhde.eu/fileadmin/documents/brochures/gasification_technologies.pdf
https://www.gl-group.com/pdf/BGL_Gasifier_DS.pdf
https://www.energy.siemens.com/fi/en/power-generation/power-plants/carbon-capture-solutions/pre-combustion-carbon-capture/pre-combustion-carbon-capture.htm
The Art of Non-Persuasion
I could never be in sales and marketing. I have a strong negative reaction to public relations, propaganda and the sticky, inauthentic charm of personal persuasion. Lead a horse to water, show them how lovely and sparkling it is, talk them through their appreciation of water, how it could benefit their lives, make them thirsty, stand by and observe as they start to lap it up. | |
One of the mnemonics of marketing is AIDA, which stands for Attention, Interest, Desire, Action, leading a “client” through the process, guiding a sale. Seize Attention. Create Interest. Inspire Desire. Precipitate Action. Some mindbenders insert the letter C for Commitment – hoping to be sure that Desire has turned into certain decision before permitting, allowing, enabling, contracting or encouraging the Action stage. You won’t get that kind of psychological plasticity nonsense from me. Right is right, and wrong is wrong, and ethics should be applied to every conversion of intent. In fact, the architect of a change of mind should be the mind who is changing – the marketeer or sales person should not proselytise, evangelise, lie, cheat, sneak, creep and massage until they have control. I refuse to do “Suggestive Sell”. I only do “Show and Tell”. I am quite observant, and so in interpersonal interactions I am very sensitive to rejection, the “no” forming in the mind of the other. I can sense when somebody is turned off by an idea or a proposal, sometimes even before they know it clearly themselves. I am habituated to detecting disinclination, and I am resigned to it. There is no bridge over the chasm of “no”. I know that marketing people are trained to not accept negative reactions they perceive – to keep pursuing the sale. But I don’t want to. I want to admit, permit, allow my correspondent to say “no” and mean “no”, and not be harrassed, deceived or cajoled to change it to a “yes”. I have been accused of being on the dark side – in my attempts to show and tell on climate change and renewable energy. Some assume that because I am part of the “communications team”, I am conducting a sales job. I’m not. My discovery becomes your discovery, but it’s not a constructed irreality. For many, it’s true that they believe they need to follow the path of public relations – deploying the “information deficit model” of communication – hierarchically patronising. Me, expert. You, poor unknowing punter. Me, inform you. You, believe, repent, be cleaned and change your ways. In this sense, communications experts have made climate change a religious cult. In energy futures, I meet so many who are wild-eyed, desperate to make a sale – those who have genuine knowledge of their subject – and who realise that their pitch is not strong enough in the eyes of others. It’s not just a question of money or funding. The engineers, often in large corporations, trying to make an impression on politicians. The consultants who are trying to influence companies and civil servants. The independent professionals trying to exert the wisdom of pragmatism and negotiated co-operation. The establishment trying to sell technical services. Those organisations and institutions playing with people – playing with belonging, with reputation, marketing outdated narratives. People who are in. People who are hands-off. People who are tipped and ditched. Those with connections who give the disconnected a small rocky platform. The awkwardness of invested power contending with radical outsiders. Denial of changing realities. The dearth of ready alternatives. Are you ready to be captured, used and discarded ? Chase government research and development grants. Steal your way into consultations. Play the game. Sell yourself. Dissociate and sell your soul. I have to face the fact that I do need to sell myself. I have to do it in a way which remains open and honest. To sell myself and my conceptual framework, my proposals for ways forward on energy and climate change, I need a product. My person is often not enough of a product to sell – I am neuro-atypical. My Curriculum Vitae CV in resume is not enough of a product to sell me. My performance in interviews and meetings is often not enough of a product. My weblog has never been a vehicle for sales. I didn’t want it to be – or to be seen as that – as I try to avoid deceit in communications. Change requires facilitation. You can’t just walk away when the non-persuasional communications dialogue challenge gets speared with distrust and dismissal. Somehow there has to be a way to present direction and decisions in a way that doesn’t have a shadow of evil hovering in the wings. “A moment to change it all, is all it takes to start anew. Why do I need to “sell” myself ? Why do I need to develop a product – a vehicle with which to sell myself ? 1. In order to be recognised, in order to be welcomed, invited to make a contribution to the development of low carbon energy, the optimisation of the use of energy, and effective climate change policy. 2. In order to put my internal motivations and drive to some practical use. To employ my human energy in the service of the future of energy engineering and energy systems. |
Energy Together : I’m just getting warmed up
The human race – we have to solve energy together. And to do that, we need to harness all our personal, purposeful, positive energies, and let me tell you, personally, I feel electric – and I’m only just getting warmed up.
So let’s hear less of the nonsense from authoritatively-accredited people who want to put a dampener on green energy, who say that saving energy cannot, simply cannot be done, sigh, sigh, sigh, collective groan. We have so much energy together, we can do this. | |
We have the will power, the staying power, the investment power, and we will navigate the obstacles in our path. Let’s not waste any more time on expensive trinkets, and iddy-biddy fancies with high unit costs and low compatibility to the future. Yes, I’m talking nuclear power. I’m talking the nobody-really-wants-to-do-it-and-nobody-thinks-it-can-be-cheap-enough-to-work-at-scale Carbon Capture and Storage. And yes, I’m talking carbon markets – tell me again, where are they now ? Oh yes, still in the starting blocks. And don’t even start to talk about pricing carbon to me – in this world of rollercoaster, highly volatile energy prices, what on Earth could costing or taxing carbon actually achieve ? And fusion power ? Nah, mate, forget it. It’s been 50 years away for the last 50 years. Shale gas, oil from shales, tar sands, coal bed methane collection and underground coal gasification are once-abandoned messy ideas from way back. They’re still messy, and they’re still retro, and they’re not going to get us anywhere. If the United States of America want to completely ruin their lithosphere, well, that’s up to them, but don’t come around here toxifying our aquifers and poisoning our European trees ! What we need is marine energy, geothermal energy, hydropower, solar power, wind power, and Renewable Gas, because gaseous fuels are so flexible and store-able and can come from many, many processes. And we need the next optimistic generation of leaders to push through the administration ceiling and get green energy policy really rolling, attracting all the green investment will. If I were a power plant, I would be cranking out the current and making everything shine very, very brightly just now. |
Bosworth: “We are not going soft on coal”
At the annual Stop Climate Chaos coalition chin-wag on Friday 20th July 2012, I joined a table discussion led by Tony Bosworth of the environmental group Friends of the Earth.
He was laying out plans for a campaign focus on the risks and limitations of developing shale gas production in the United Kingdom. | |
During open questions, I put it to him that a focus on shale gas was liable to lay Friends of the Earth open to accusations of taking the pressure off high carbon fuels such as coal. He said that he had already encountered that accusation, but emphasised that the shale gas licencing rounds are frontier – policy is actively being decided and is still open to resolution on issues of contention. Placing emphasis on critiquing this fossil fuel resource and its exploitation is therefore timely and highly appropriate. But he wanted to be clear that “we are not going soft on coal”. I suggested that some experts are downplaying the risks of shale gas development because of the limitations of the resource – because shale gas could only contribute a few percent of national fuel provision, some think is is unwise to concentrate so much campaign effort on resisting its development. Bosworth countered this by saying that in the near future, the British Geological Survey are expected to revise their estimates of shale gas resource upwards by a very significant amount. He quoted one source as claiming that the UK could have around 55 years of shale gas resource within its borders. I showed some scepticism about this, posing the question “But can it be mined at any significant rate ?” It is a very common public relations trick to mention the total estimated size of a fossil fuel resource without also giving an estimate of how fast it can be extracted – leading to entirely mistaken conclusions about how useful a field, well or strata can be. Tony Bosworth said that shale gas reserve estimates keep changing all the time. The estimate for shale gas reserves in Poland have just been revised downwards, and the Marcellus Shale in the United States of America has also been re-assessed negatively. Bosworth said that although campaigners who are fighting shale gas development had found it useful to communicate the local environmental damage caused by shale gas extraction – such as ozone pollution, traffic noise, water pollution and extraction, landscape clearance – the best argument against shale gas production was the climate change emissions one. He said academics are still being recruited to fight on both sides of the question of whether the lifecycle emissions of shale gas are higher than for coal, but that it was becoming clear that so-called “fugitive emissions” – where gas unintentionally escapes from well works and pipeline networks – is the key global warming risk from shale gas. Opinion around the table was that the local environmental factors associated with shale gas extraction may be the way to draw the most attention from people – as these would be experienced personally. The problem with centring on this argument is that the main route of communication about these problems, the film Gasland, has been counter-spun by an industry-backed film “Truthland”. The Royal Society recently pronounced shale gas extraction acceptable as long as appropriate consideration was paid to following regulatory control, but even cautious development of unconventional fossil fuels does not answer the climate change implications. There is also the extreme irony that those who oppose wind farm development on the basis of “industrialisation of the landscape” can also be the same group of people who are in favour of the development of shale gas extraction – arguably doing more, and more permanently, to destroy the scenery by deforestation, water resource sequestration and toxification of soils, air and water. Tony Bosworth told the group about the Friends of the Earth campaign to encourage Local Authorities to declare themselves “Frack-Free Zones” (in a similar way to the “Fair Trade Towns” campaign that was previously so successful). He said that FoE would be asking supporters to demand that their local governments had a “No Fracking” policy in their Local Plans. It was suggested in the discussion group that with the current economic slowdown and austerity measures, that Local Authorities may not have the capacity to do this. Tony Bosworth suggested that in this case, it might be worth addressing the issue to church parish councils, who can be very powerful in local matters. It was pointed out that frequently, parish councils have been busy declaring themselves “Wind Free Zones”. It was considered that it would be ineffective to attempt to fight shale gas production on a site-by-site direct action basis as the amount of land in the UK that has already and will soon be licenced for shale gas exploration made this impossible. Besides which, people often had very low awareness of the potential problems of shale gas extraction and the disruption and pollution it could bring to their areas – so local support for direct action could be poor. One interesting suggestion was to create a map of the United Kingdom showing the watersheds where people get their tap supplies from superimposed on where the proposed shale gas exploration areas are likely to be – to allow people to understand that even if they live far away from shale gas production, their drinking water supplies could be impacted. In summary, there are several key public relations fronts on which the nascent shale gas “industry” are fighting. They have been trying to seed doubt on low estimates of actual shale gas production potential – they have been hyping the potentially massive “gamechanging” resource assessments, without clear evidence of how accessible these resources are. They have also been pouring scorn on the evidence of how much damage shale gas could do to local environments. And they have also been promoting academic research that could be seen to make their case that shale gas is less climate-damaging than other energy resources. Shale gas, and the issue of the risks of hydraulic fracturing for unconventional fossil fuels, is likely to remain a hot ecological topic. Putting effort into resisting its expansion is highly appropriate in the British context, where the industry is fledgeling, and those who are accusing Friends of the Earth and others of acting as “useful idiots” for the ambitions of the coal industry just haven’t taken a look at the wider implications. If shale gas is permitted dirty development rights, then that would open the gateway for even more polluting unconventional fossil fuel extraction, such as oil shale and underground coal gasification, and that really would be a major win for the coal industry. Friends of the Earth Briefing : Shale gas : energy solution or fracking hell ? |
Tillerson Talks It Down
Rex Tillerson, Chief Executive Officer of ExxonMobil, was recently invited to talk to the Council on Foreign Relations in the United States of America, as part of their series on CEOs.
His “on the record” briefing was uploaded to YouTube almost immediately as he made a number of very interesting comments. | |
The thing most commented upon was his handwaving away the significance of climate change – a little change here, a little change over there and you could almost see the traditional magician’s fez here – shazam – nothing to worry about. In amongst all the online furore about this, was discussion of his continued Membership of the Church of Oil Cornucopia – he must have mentioned the word “technology” about seventy-five times in fifteen minutes. He clearly believes, as do his shareholders and management board, that his oil company can continue to get progressively more of the black stuff out of tar sands, oil shales or oil-bearing shale sediments and ever-tighter locked-in not naturally outgassing “natural” gas out of gas shales. At least in Northern America. As numerous commentators with a background in Economics have claimed, well, the price of oil is rising, and that creates a market for dirtier, harder-to-reach oil. Obviously. But missing from their Law of Supply and Demand is an analysis of how oil prices are actually determined in the real world. It’s certainly not a free market – there are numerous factors that control the price of the end-product, gasoline, not least state sponsorship of industries, either through direct subsidies, or through the support of dependent industries such as car manufacture. At least in North America. In the background, there is ongoing shuttle diplomacy between the major western economies and the assortment of regimes in the Middle East and North Africa (MENA) who still have the world’s largest pool of cleaner-ish petroleum under their feet. That, naturally, has an impact on supply and pricing : even though the strength of this bonding is not as tight-fast as it historically was, there appears to have been more of it since around 2005. Or at least, that’s when I first started monitoring it consciously. In addition to that, there are only a limited number of players in the oil industry. It is almost impossible to break into the sector without an obscene amount of capital, and exceedingly good buddy-type relationships with everybody else in the field – including sheikhs you formerly knew from when you attended specialty schools. So, no, the market in oil is not free in any sense. It is rigged – if you’ll excuse the pun. And then there’s foundational reasons why oil prices are artificial – and may not cause a boom in the “unconventional” production that Rex Tillerson is so excited about (in a rancher-down-the-farm kind of way). Oil is still fundamental to the global economy. In fact, the price of oil underpins most business, as oil is still dominant in the transportation of goods and commodities. Despite all the techno-wizardry, it is fundamentally more costly to drill for fossil fuels in shale, than from pressure wells where oil just gloops out of the ground if you stick a pipe in. It’s not the drilling that’s the major factor – so the technology is not the main driver of the cost. It’s the put-up, take-down costs – the costs of erecting the infrastructure for a well, or putting underground shale heating or fracturing equipment in place, and the cleaning up afterwards. Some of the technologies used to mine shales for oil use an incredible amount of water, and this all needs to be processed, unless you don’t mind desecrating large swathes of sub-tropical scenery. Or Canada. The price of oil production has a knock-on effect, including on the very markets that underpin oil production – so increasing oil prices have a cyclic forcing effect – upwards. It also has an impact on the prices of other essential things, such as food. One can see a parallel rise in the price of oil and the price of staple crops in the last few years – and the spiralling cost of grain wheat, rice and corn maize is not all down to climate change. Oil companies are in a quandary – they need to have higher oil prices to justify their unconventional oil operations – and they also need good relationships with governments, who know they cannot get re-elected if too many people blame them for rising costs of living. Plus, there’s the global security factor – several dozen countries already have economies close to bust because of the cost of oil imports. There are many reasons to keep oil prices depressed. Let’s ask that subtle, delicate question : why did Rex Tillerson espouse the attitudes he did when asked to go on the record ? Why belittle the effects of climate change ? The answer is partly to soothe the minds of American investors, (and MENA investors in America). If such a powerful player in the energy sector believes “we can adapt to that” about climate change, clearly behind-the-scenes he will be lobbying against excessive carbon pricing or taxation with the American federal administration. And why be so confident that technology can keep the oil flowing, and make up for the cracks appearing in conventional supply chains by a frenzy of shale works ? Well, logically, he’s got to encourage shareholder confidence, and also government confidence, that his industry can continue to deliver. But, let’s just surmise that before he was shunted onto the stage in June, he’d had a little pre-briefing with some government officials. They would be advising him to show high levels of satisfaction with unconventional oil production growth (in America) – after all, this would act against the rollercoaster of panic buying and panic selling in futures contracts that has hit the oil markets in recent months. So Rex Tillerson is pushed awkwardly to centre stage. Global production of oil ? No problem ! It’s at record highs (if we massage the data), and likely to get even better. At least in America. For a while. But hey, there’s no chance of oil production declining – it’s important to stress that. If everyone can be convinced to believe that there’s a veritable river of oil, for the forseeable future, then oil prices will stay reasonable, and we can all carry on as we are. Nothing will crash or burn. Except the climate. Rex Tillerson’s interview on global (American) oil production may have been used to achieve several propaganda aims – but the key one, it seems to me, was to talk down the price of oil. Of course, this will have a knock-on effect on how much unconventional oil is affordable and accessible, and maybe precipitate a real peak in oil production – just the thing he’s denying. But keeping the price of oil within a reasonable operating range is more important than Rex Tillerson’s impact on the American Presidential elections, or even Rex Tillerson’s legacy. |
Will the Green Deal Deliver ? (2)
Here is the second part of the transcription from the notes I took this morning in a seminar in the UK House of Commons. The meeting was convened by PRASEG, the Parliamentary Renewable and Sustainable Energy Group.
This transcription is based on an unverified long-hand paper-based recording of the words spoken. Items in quotation marks are fairly accurate verbatim quotations. Items in square brackets are interpolation, or explanation, and not the exact language the person used to present their thoughts.
Here are the papers supplied at the start of the meeting : A B C D E F
CONTINUED…
[AW] How it [the Green Deal] hits the ground matters…
[Joanne Wade, Independent Consultant, UKERC]
The Green Deal is a very useful framework – a move to encourage people to pay for their own energy efficiency. The finance offering may be interesting to some. The quality [of the workmanship ? Guarantees under the Green Deal ?] is “utterly vital”. I don’t think it’s quite there. Outlining four areas (1) How the Green Deal engages (2) The low cost finance (3) Generally mainstreaming energy efficiency in peoples’ minds and (4) Fuel Poverty.
(1) Most people don’t care if they have energy efficiency [in their homes]. If we were really serious about this [our appeal would be along the lines of] you can’t sell a car with brakes that don’t work, but you can sell a house that kills you. [I just wanted to get that in up-front]. Nobody’s really cracked this yet [the messaging] is [still only] “reaching the usual suspects”. Trust is vital. Salience is key. We want people to understand this is not an add-on to all the other things they do. Community-based organisations fit the bill [we tend to trust these groups as members]. [We need to be asking] how does the Green Deal work with that ? The Green Deal providers – small to medium sized enterprises (SMEs) want to use their own brand – they are very good at marketing [and will be good at marketing the Green Deal as well]. But will that be enough to convince people ? The Assessments [that people will get at the start of the Green Deal process] will be detailed on what they can do. Some people are concerned about how much energy they use. Is that enough to go from a standing start to […] ? Are enough people going to be committed enough by the time [Green Deal is available] ? What I think we need – to prime people to be ready to accept [the Green Deal]. [The message would be] appropriate to come from local community groups. The Government is hoping for it – but no real drivers. There are examples – but how are they going to be copied ? The CERT / CES(P) results show that Local Authorities are key. Now that National Indicators 186 and 187 [From the Performance Framework – annual reporting requirements of direct and indirect emissions as a result of Local Authority operations] have been cut – there is no driver. The amount of attention has dropped. [Local Authorities are facing other problems] reducing staff and budgets.
(2) Access to low-cost finance. [The work to make this available from the Green Investment Bank is going ahead but] what about other soruces – for example mortgage providers ? In Switzerland for example, they are lending 114 billion euro every year to homeowners at low interest rates. We need to look at how to convince people. In Switzerland, people will pay more for energy efficient homes. The Green Deal needs to accept alternative forms of finance. Need to be able to access ECO [Energy Company Obligation – part of the Energy Bill – obligation energy suppliers to supply not only energy, but energy services such as energy efficiency and energy conservation] providers. We don’t know if the market will deliver [there are already grants/finance in this sector that people are not using].
(3) Can’t see the Green Deal mainstreaming. My builder – I did an [extension] and asked for 50% extra insulation and LED [Light Emitting Diodes – a very energy efficient form of lighting] – he thought I was slightly mad but now recommends LED lighting on all builds. Here’s the Green Deal. He would say – “Why should I tell people about that ?” Typical small builder. It should be that whenever anyone is doing a refurbishment they should just do it [extra insulation etc] – and so we’re back to [the big R] – regulation. [But look at the public outcry when the media considered] consequential improvements [the “Conservatory Tax”]. [Energy efficiency] “We need to make it the thing that people do.”
(4) Fuel Poverty. The money that can be coming through the ECO is £ 350 million per year (before VAT). Let’s not kid ourselves – the householders in fuel poverty are not going to take Green Deal finance. [The Climate Change Committee says] £4 billion a year is what we need to tackle fuel poverty. The Government needs to make sure that Green Deal finance is available the fuel poor (in an appropriate form) (overcoming the small potential).
[Alan Whitehead MP] How to address the LED enthusiast who isn’t a Green Deal enthusiast ? Helping “Jeff” [representative small builder in a sketch by the Secretary of State ?] getting sorted out – taking him from a sceptic to an advocate.
[Nigel Banks, Head of Energy and Sustainable Solutions, Keepmoat]
There are glass half empty people and glass half full. How can we be filling the glass ? Retrofitting communities via the Green Deal ? We do a lot of community regeneration – we’ve build [some of the] Zero Carbon homes. We renovate rather than demolish and rebuild. We get through to RP [registered providers of social housing] and Local Authorities. There has been the “boom and bust” of FiT [solar photovoltaic feed-in tariff] – Local Authorities are reticent to get involved [with the Green Deal].
With solid wall insulation [SW] we need to take up a gap. Currently, 80,000 per year are being driven by CES(P) – 94% of these are external wall. Under the Green Deal only 10,000 are projected next year – major concern.
How many measures meet the Green Deal ? The Golden Rule [the rule o Green Deal finance that the loans should come at no extra cost to the householder because the repayments are balanced by energy savings] ? [With some solid wall insulation, meeting the Golden Rule is easy, but…]
Problems with the Green Deal include : [no Green Deal finance generally available ?]. The cooling off period of 20 – 28 days. People now expect their insulation for free. How many [of the institutions of surveyors including] RICS [will value] properties with Green Deal ?
ECO is a big target – at least £540 million per year for affordable warmth. [However, this does not compare with what we have been able to offer up to now] – entire streets – entire communities [upgraded] for free at the moment – easier than under the Green Deal.
The £200 million cashback [is welcome]. Some of the Green Deal pilot schemes have been positive. It should be able to unlock private landlords [to making energy efficiency retrofits].
The Green Deal [is currently appropriate only to] a small proportion of society – it is vital to apply through communities – churches and so on – and it can tackle long-term unemployment problems.
The Green Deal [is not going to achieve major change] on its own.
[David Robson, Managing Director, InstaGroup] We do insulation, represent over 100 SMEs. How can we make the Green Deal work ? Provide employment in local communities ? 15 years of history of energy efficiency : in the early 1990s – no funding – we were doing 300,000 installs a year. Now we are doing 500,000 this year. “If anyone says subsidies haven’t worked, it’s not true.” It has got money out onto the ground quickly. The Green Deal has huge potential – removes capital barriers pre- energy efficiency [measures] – ome of the more expensive things are covered – anyone can access low cost finance – as long as it [the Green Deal] is given an opportunity to work. It also creates a framework to cover the non-domestic sector – and [landlord-owned] private domestic sector also. The Government…. [the Green Deal is] not ready. “Whatever any politician says, the legal framework is not in place until January next year.” The insulation installers and other companies are feeling they are being told “if you want to lead on the Green Deal, take it on your [own] balance sheet.” Everyone wants the Green Deal to work. We’ve invested. Our system is in place. The work we put into Green Deal finance – low cost – we think it’s important – the lower we can keep the costs of it. “If we can’t keep it [the Green Deal finance loan interest rate] below 6% we as an industry have failed.” The Green Deal is going to take time to build. Solid wall insulation – takes time to develop this industry. Hugely innovative concept. The man on the street will take some convincing “Will I be able to sell my house ?” [But] we can’t even give away insulation at the moment – then convincing people to borrow… 2013 is a real issue – how you bridge that cliff edge. Could [limit] the Green Deal getting off the ground. “For the Green Deal to be effective it needs to take the [energy efficiency] industry with it.” Small businesses are looking to us to guide them through the Green Deal. They can’t survive 6 months of losing money. Need to have some more continuity. The Green Deal does need something to help it through the transition process. How is the Green Deal good ? A robust framework. Belief in the Golden Rule – sacrosanct. Trying to sell the Green Deal will be a challenge for all of us. The Green Deal is very much underpinned by the ECO – but if the ECO is the only thing pushing, the Green Deal won’t work – constrained by the amount of money available. Regulation is key. If consumers are given sufficient time to do things it’s OK. Low cost finance is key. Access to low rates has to be competitive or the biggest players will take all the low cost finance. I’m concerned about a continuing level of political will. Generally the media are coming on-side over the Green Deal – but you only need to look at the media coverage of “consequential improvements”… It’s important that the Government recognise concerns about the Green Deal – [coming] from people who do want it to work.
[Alan Whitehead MP] Nice chance – ought to look at carbon taxes for the future – declaring part of that “tax foregone” and use that for the Carbon Reduction Commitment [CRC] : taking from the EU ETS [European Union Emissions Trading Scheme revenue] and the carbon floor price and using that to underpin the Green Deal – get that finance interest level down – a proper green tax – taxing bads and rewarding goods. “There can be no more good than making sure that everyone’s house is energy efficient” That’s all solved.
QUESTIONS FROM THE FLOOR
[Terry ? David Hunt, Eco Environments] Concerned that microgeneration is not to benefit. Concerned about companies self-marketing – as there have been misleading advertising (such as solar photovoltaic [PV] installers advertising old FiT rates). They should not mislead the public. Regulation – compared to the MCS scheme [all solar PV installers have to be registered for MCS] but still seen some awful installs. As soon as things get sold and are bad – this leads to media stories and a loss of confidence.
[Tim ? Tony Smith, Pilkington Glass] The statutory instrument that relates to double glazing and other measures – I’m looking for sunshine on a very gloomy day – double glazing in [some cases] will get no help from the Golden Rule [some discussion about the ratings of windows and replacement windows] – reduces the attraction to our industry in terms of reducing carbon emissions.
[ X from “London Doctoral Training Centre”] Homeowners… [The success of the Green Deal is] down to how people use their homes. No-one’s talked about education and how installers talk to householders…
[ X from Association for the Conservation of Energy] I’d like to hear the panel’s views on DG TAX [the European Commission Directorate Generale on Tax matters for the European Union] that the 5% VAT rate under the Green Deal is not compliant.
[Tracy Vegro] For the 5% VAT rate, “we are ready to defend that” – as it impacts on our ability to offer other options. It’s weird since we’ve just signed a very strong [European Community] Energy Efficiency Directive. Behaviour change – that’s vital. The [Green Deal loan] Assessment will require heating controls turned down and relevant behaviour. Effectively, you’re not going to pay the interest on the loan if you change your behaviour and you will see the savings increase over time. The “conversion rate” [from Green Deal pilot schemes] was 98% “saved more than I thought” – community projects. The Ombudsman will be able to strike off poor installers. “The Consumer Protection on the Green Deal is the highest in the market.” Stringent. “If it’s proved we’re too draconian, it will come down.” [Re the question from Pilkington] You are slightly misinterpreting – this is not a barrier to that [kind of upgrade to windows] – it depends on the state of the property [for example the carbon saved is less if going from an F to and E than…] It may just be your interpretation – happy to go over that with you.
[David Robson] The MCS based accreditation is only checked once a year – a real issue. The hardest thing about MCS is – is your paperwork in order ? Not if you can do the job…
[Joanne Wade] The conversation about energy use – how to get people involved. We need more messaging – this is what this really is. If all levels of government [do the messaging] more effective.
[John Sinfield] The Minister mentioned turning up the heating and hoovering [vacuuming] in your underpants. The industry is responsible to [address that in the] owner’s manual. This is how you need to treat your house differently. The tax issue – madness. If the HMRC can’t do it [convince the EC/EU] then ignore them.
[Nigel Banks] Behaviour change is vital. The Green Deal providers who don’t put that in their package will come unstuck. Not as confident about carding [system of accreditation based on individual trades persons by trade] [not relevant to your particular skill] [skill specific ?]
[Alan Whitehead] I assume the Minister meant thermal underwear.
[Colin Hines, Green New Deal Group] Trust [is important] when the finance people are having fits over FiTs. What [are you] trying to do to the market ? Is the Green Investment Bank going to kick up some money for the Green Deal ? What about the drop in the Impact Assessment from £10 billion to £ 5 billion for the Green Deal [some confusion about what this refers to]
[Roger Webb, The Heating and Hotwater Industry Council] How do we bring “Jeff” to the party ? We are keen to see heating as part of the Green Deal. There are 90,000 small tradesmen working for 60,000 small companies. Will they think the Green Deal is rubbish ? They are the leads for the Green Deal – they need training. We need to incentivise them. A voucher scheme ? Use a little of the £200 million… I really welcome the work and [interest in] bringing microgeneration [?] business into the scheme.
[Neil Marshall, National Insulation Association] Regarding solid wall insulation – the IWI / CWI confusion [Internal Wall Insulation, Cavity Wall Insulation] – what solution is proposed for hard-to-treat cavities ? The hard-to-treats we are not able to do for another year. Need to drive more cavities and lofts. The Committee on Climate Change [CCC] have reported on a need for additional incentives outside the Green Deal – driving the uptake of the Green Deal – talk of incentives and fiscals. Gap-filling. The Green Deal [should be able to cover] able-to-pay loft insulation installations, able-to-pay cavity wall insulation, hard-to-treat cavities and solid wall insulation. If we are doing 1 million in 2012 under CERT / CES(P)…if there is no Green Deal finance we can’t sell anything [after 2012]. “There is a critical need for a transitional arrangement.” We have had high level discussions with DECC that have been very useful…
[ X from Honeywell ? ] The in-situ factors. [For example, father [in law] isn’t going to replace his boiler because the payback will be after he’s dead]. Multiple length of payback [period] for any measure that’s put in – old antiquated evaluation tool. The householder asks what’s in it for them [what they can put some energy into doing] – is the longer payback [period] less attractive ?
[ X from “Shah” ? ] Not much on solar / microgeneration. [Will the Green Deal become certified ?]
[Nigel Banks] How do we do Green Deal for a boiler ? On 3rd January [2013] will the big energy companies do it themselves ? Some measures won’t perform as predicted.
[John Sinfield] “If the Green Investment Bank doesn’t provide finance for the Green Deal we are in a world of hurt”. We need to engage with “Jeff” the trusted installed. The Government needs to drive consequential improvements through – if you have a new boiler, you will have wall insulation [crazy otherwise, as all that heat will be lost through the walls]. Not seeing where my £ 1 million invested in solid wall solutions is going now. The job is not done [cavities and lofts].
[Tracy Vegro] A lot of Local Authorities don’t distinguish between good debt and bad – money is there for them – but they aren’t borrowing to invest. We are retaining HECA [Home Energy Conservation Act]. [Mentions poor opinion about the Green Investment Bank] – talking the “jib” [GIB] down. The biggest risk is the lack of confidence in the Green Deal. [Working on the terms of the] Green Deal Finance Companies [GDFC] – still see if…. [Important to take the attitude of] not talking it down. If another equity slice [is added…] We are a broad church – open to new entrants. Most work will be done [under the Green Deal] – most retrofits. [With the ActonCO2 and other Government paid communications campaigns on climate change and energy efficiency] We didn’t really get the message across – our millions spent [on advertising and public relations]. [We will] do better – more and more things will meet the Golden Rule. Come and meet our scientists.
[David Robson] Heating – a huge opportunity – not a loan with British Gas – the boiler you want – add on solar [with a Green Deal loan] linking creatively.
[ X from ? ] [Brings up the thorny problem of which technologies and measures are possible under the Green Deal’s Golden Rule] 45 points [of requirements] to meet criteria. In the future, what technologies will be viable ?
[Tracy Vegro] The RHI [Renewable Heat Incentive] is not eligible – does not meet the [Golden] Rule.
[Further exchanges – becoming somewhat stressed]
[Alan Whitehead MP] Just as things were getting exciting…[we have to close] an interesting period over the next 18 months.
BP Biofuels : Murders & Acquisitions ?
Gas in the UK (2)
…Continued from https://www.joabbess.com/2012/06/12/gas-in-the-uk/
Questions from the floor
[Tony Glover]
…increasing electricification of heat and transport. I was interested in what Doug said about heat. [If energy conservation measures are significant and there is] a significant reduction in gas use for heat…interested in the Minister’s response.
[Terry ? (Member of PRASEG)]
I’m interested in gas that would need CCS [Carbon Capture and Storage] [in future] …[since there would be no restriction there would be an] incentive to build new gas in next few years away from CCS-usable infrastructure. Maybe encouraging gas stations over next few years to be built in view of CCS.
[ ? ]
[There have been mentions of the] Gas [generation] Strategy and gas storage. Is it your intention to have both in the Energy Bill ? [Need to improve investor confidence.]
[Charles Hendry MP] I’m more confident than Doug on CHP…[in respect of energy conservation we will begin to increase our use of] CHP [Combined Heat and Power], geothermal energy, don’t need District Heating. I think we’ll see more people switch to electric heating. The likely pricing on gas will mean people have to look at other sources – such as localised heat storage, intelligent ways to produce hot water and heat in their homes […for example, a technology to store heat for several days…] The first [new gas power] plants will be where they are already consented – where originally coal plants – need to have identified in advance – no new plant is consented unless…We’ve asked Ofgem to ask re securing gas supplies. If we can stretch out the tail of North Sea gas – can stretch it out 30 – 40 years […] technology […] Centrica / Norway […] develop contracts […] Is there a role for strategic storage [Centrica asking] […] Buying and selling at the wrong price (like the gold) [widespread chuckling in the room]. Some of it may not need legislation. Gas Strategy will be published before the Energy Bill.
[David Cox] Get very nervous about gas storage. Don’t think there’s a need to put financial incentives in place to increase gas storage. We think the hybrid gas market is successful – a market and regulatory framework – [gas storage incentives] could damage.
[Doug Parr] I’m not downbeat because I want to be downbeat on heat. [Of all the solutions proposed none of them show] scaleability, deliverability. I’d love that to come true – but will it ? […] Heat pumps ? Biogas is great but is it really going to replace all that gas ? If we’re going to be using gas we need to make the best use of it […] Issues around new plant / replacement – all about reducing risks no exposing ourselves to [it] – security of supply, climate risks, issues about placement [siting of new plant]. If CCS can really be made to work – it’s a no-brainer – do we want all that carbon dioxide in the atmosphere or … ? Our entire policy becomes dependent on a technology that hasn’t even been demonstrated. Other technologies that people thought were great – years later they still haven’t arrived [for example, rooftop wind turbines]. If we say CCS is the only way it’s going to work – what’s Plan B ? We are going to use [fossil fuels] – should not become wholly dependent on technology not yet demonstrated.
[Alan Whitehead] Perhaps people should be asked – which would you prefer – a CHP / DH [Combined Heat and Power / District Heating] plant in the valley here, or a couple of wind turbines on that hill ? That would [shake things up].
Questions from the floor
[ X ? ] See […] as the ultimate destination. Most important – gas can be made zero carbon – not pie in the sky. 1. Start contributions of carbon-neutral gas and 2. will need far less if [we act] like Japan – force installation of microCHP. Their aim is to do same as for washing machines [bring prices down – make widely available for the home]. MicroCHP [with] heat pumps – reduction as good as decarbonising gas or electricity. But can also decarbonise gas.
[ X ? ] The Minister mentioned the importance of CHP but recently dropped […] mandate. If CHP so important what measures is the Government taking to ensure its installation ?
[ X ? ] Electricity is a rubbish fuel for heating buildings – very peaky load – need something cheap to store, cheap to […]. Fits very well with forcing down demand. Where we’re getting our gas from. At the moment our waste is being incinerated. For a cheap additional cost, where currently incinerating we can do anaerobic digestion [AD], producing a fungible asset – the gas – can gradually decarbonise our grid.
[ Thomas Grier ? ] …a decision [?] of London – CHP in London over the next few years. If we want to use electricity for heat, we need to reinforce the electricity grid [by 60% to 90% ?] In rural situations – use electrical heating. In urban, use decarbonised energy. [This model projection] shows the gas grid disappearing – it will collapse at some point if all we have on the gas grid is cooking.
[ X ? ] …[encouraged CHP then a few days later] stood up then said all support [removed ?] for CHP next year. A Heat Strategy that said there is enormous [scope / potential] for CHP. We want to see gas, we want to see efficiency. Are we moving towards […] without it they won’t build it.
[David Cox] Microgeneration – couldn’t get it down economically. Reliability [issues]. Full supporter of biogas – AD got a contribution to make – but never more than 5% – no matter how much [we crack it]. Electricity is not very good for heating – but how to we decarbonise the heat sector ? Always been an advocate of CHP. Government need to do more incentivising of that.
[Charles Hendry MP] Innovation and invention […] Government can’t support all emerging technologies. Best brains around the world [are working on] how we move fundamentally in a low carbon direction. On the waste hierarchy – burning of waste should be the final stage – finding a better use for it. [I visited] the biggest AD plant in Europe in Manchester – biogas and electricity generation. We are seeing Local Authorities taking a more constructive long-term view on how to manage waste. CHP – we all want to see more of it – to what extent does it need support ? That depends on whether new build – building a community around it. [By comparison, urban retrofitting is probably too expensive] Iceland [took the decision and] retrofitted almost every home – I’m now more convinced than before. What is the right level of subsidy and what makes good economic case ?
[Doug] We do keep missing opportunities. [For example in Wales, Milford Haven, the new Combined Cycle Gas Turbine at the Liquified Natural Gas (LNG) refinery to process the gas] should have been CHP. I am enthusiastic about lots of heat technologies [but the same questions/issues apply] scaleability and deliverability. District heating [DH] – an infrastructure asset ! [Can change priorities about what gets built – for example in Denmark (?)] they’re building large-scale solar farms to top up the DH. In the Treasury’s infrastructure plan [see DH could be…] Heat is the poor relation in energy debate. Other networks have been identified in the National Policy Statements (NPS) – but not heat.
[ Leonie Green, Renewable Energy Association ] [I must] defend heat pumps. In Sweden 90% of new builds [hav e heat pumps ?] – heat pump efficiency is a function of the energy-efficiency of the building […] Just on AD – National Grid report said it could provide 50% [of the nation’s supply. Our members think] that’s a bit too high – we think 25%. My question is really about the benefits. We are hearing anxiety about costs, but it’s piecemeal on benefits. We’ve been strong on jobs, balance of trade, exports [all benefits of renewable energy investment and deployment]. Pleased to see DECC put out [report from] Oxford Economics [on the] wider economic benefits. How can we get more and more balance in reports. [An example] Deutsche Bank renewable generation opportunities.
[ ? ] We would also support more than 5% from renewable gas – also about hydrogen – we used to do it when it was town gas – why not again ? As regards injecting biomethane/biogas from AD into the National Grid [last year ? to this year ?] 130 enquiries to connect AD to our network – none have progressed. Please sort these [registrations] out.
[ ? ] Minister, we’re not expecting you to fund all technologies – we need some logic – especially with transport. The Government doesn’t recognise the difference between Renewable Natural Gas if used in transport and fossil fuels. Would be simple – a tax on gas if used in a vehicle. What’s the problem over […] ?
[Colin Snape, University of Nottingham] We are looking at reducing the costs of carbon capture – we have a section of PhDs… One other gas source not mentioned – gas from underground gasification of coal [UCG]. In UK […] 2 billion tonners of coal – slightly offshore – on the energy coast of the UK – where all the action is on CCS – obviously UCG needs to be coupled with CCS to be carbon neutral. Would [be operational] in a very short time period […incentives…]. Significant proportion of UK needs.
[ ? ] What is the purpose of the Gas Strategy ? Shale gas isn’t a miracle. The “Golden Age of Gas” [report by the International Energy Agency (IEA)] doesn’t mean cheap gas, because [it will be put to] lots of uses. Renewable electricity and nuclear are not going to come until the 2020s. How do we avoid building loads of gas generation that is not necessary after that time ? What’s the role of mothballing (relatively cheap to bring CCGT out of mothballs comparing to build new). No sign of reduction in electricity demand reduction – therefore there will be high gas use.
[ Doug Parr ] On UCG, the IEA had two scenarios in the “Golden Age of Gas” – both took us over 3.5 degrees Celsius [in additional global warming]. Even if there is unconventional gas sources, still a huge danger of going down the road of unrestrained gas use. What is the alternative ? We should not end up becoming dependent on gas. Should not build gas to fill a short-term hole – they will lobby for their own interests – to keep open.
[ David Cox ] CCGTs won’t be built without guarantees greater than 20 years. Also renewable energy might not provide in the way that we hope. The CCC report – what caused the rise in energy prices ? The wholesale gas price – not renewable energy, green policies. However, that was slightly dishonest – the counter-factual was […] renewable energy significantly still more expensive than fossil fuel there. Until we can get costs of renewable energy down to the prices of fossil fuels… [The industry] don’t give the impression [they will build] on the basis of short-term need. Gas isn’t clean, I admit that […] CCS – that will work.
[Charles Hendry MP] A lot comes back to a need for a balanced approach – carbon targets and security of supply. If you haven’t sorted out security of supply, the electorate will not give permission to go low carbon. Gas is a hedging fuel currently but don’t know where costs going over time. As a politician, I like pipelines – know where it’s going (not like LNG, where there was limited use of new LNG import plant). If we want Scandinavian gas, we need security of demand to build the new pipeline. How we deal with issues of biomethane – in 2 years – need to make more progress. Some of these [techologies] will be gamechangers – some, look back in a couple of years… [Need a] permissive framework to allow a lot of ideas and technologies. There is no source of energy that hasn’t required subsidy in early days. Fanciful to suggest new forms of energy can come through without support. The letters we get [from the public, from constituents] are on vehicle fuel costs, not how much their gas bill went up last winter…
Official end of meeting
A gaggle of people gathered in the hallway to discuss some items further.
The Electricity Market Reform (EMR) was generally criticised – as it contains measures likely to specifically benefit nuclear power. Electricite de France was identified as very involved. The Government had said “no nuclear subsidy”, but the EMR measures are equivalent to hidden subsidies.
The Levy Cap was criticised as it would disturb investor confidence – if several nuclear reactors came on-stream in 10 years time, in the same year, they would eat up the whole subsidy budget for that year – and other technologies would lose out. If was felt that a number of the EMR proposals were “blunt instruments”, not overcoming shortcomings of former levies and subsidies.
Although the EMR was designed to addressed economic fears, it wasn’t assisting with financing risks – if anything it was adding to them. Rates of return have to be guaranteed for loans to be made – chopping and changing subsidies doesn’t allow for that.
Leonie Green said that the REA members don’t like the Premium Feed-in-Tariff (FiT). She also said later that they were not pleased about the cuts in support for AD.
Since my personal interest is in using Renewable Gas of various sources (including Biomethane / Biogas) to displace Natural Gas from the gas grid, I spoke with various people about this informally (including a woman I met on the train on my way home – who really got the argument about decarbonising gas by developing Renewable Gas, and using that to store excess renewable electricity, and use it as backup for renewable electricity. Although she did say “it won’t be done if it won’t confer benefits”.). One of the key elements for developing Renewable Gas is to create a stream of Renewable Hydrogen, produced in a range of ways. Somebody asked me what the driver would be for progress in Renewable Hydrogen production ? I said the “pull” was supposed to be the fabled “Hydrogen Economy” for transport, but that this isn’t really happening. I said the need for increased sources of renewably-sourced gas will become progressively clear – perhaps within a decade.
One of the persons present talked about how they think the Government is now coming out of the nuclear dream world – how only a few of the proposed new reactors will get built in the next decade – and how the Government now need to come up with a more realistic scenario.
It was mentioned that is appears that the Biogas technologies are going to have the same treatment as solar photovoltaics – some sort of subsidies at the start – which get cut away far too early – before it can stand on its own two feet. This was said to be the result of an underlying theory that only a fixed amount of money should be used on launching each new technology – with no thought to continuity problems – especially as regards investment and loan structures.
Gas in the UK
“The role of gas in the UK’s energy mix” 12 June 2012 17:30 – 18:30, Committee Room 5, House of Commons with speakers Minister of State for Energy and Climate Change, Charles Hendry; David Cox, Managing Director of The Gas Forum and Dr Doug Parr, Chief Scientist of Greenpeace UK. Chaired by Dr Alan Whitehead MP, Chairman of PRASEG, the Parliamentary Renewable and Sustainable Energy Group, who called the seminar : https://www.praseg.org.uk/the-role-of-gas-in-the-uk-energy-mix/
UNVERIFIED COMMENTS : Please check with the speakers to confirm their statements and do not take this account as verbatim.
[Alan Whitehead MP] Questions about gas. Will it be business as usual ? If not – too “much” gas ? What does that mean for Climate Change targets ? New gas generation – about 11 gigawatts coming on-stream in the next 5 years – “grandfathered” (no obligations to control emissions with Carbon Capture and Storage (CCS)) throughout the life of the power plant – does produce questions about Climate Change targets – CCS may change that landscape in the medium-term future. Question about emergence of biogas into system [which would bring] a down-trend in emissions.
[David Cox] The wonderful future that gas offers us. Have to look at whole low carbon [framework] – gas has a place. Not a war [between gas and renewable energy technologies]. Both needed [in the advance towards carbon-free] energy. Without gas, not going to make it. Make sure we can afford it. Gas has a role. The recent [International Energy Agency] IEA report on the “Golden Age of Gas” – tight gas, shale gas – has doubled reserves. Nobody knows for sure – there’s so much there. Perhaps 250 years of gas – no shortage of gas [although some of it is in] sensitive areas. Getting it from those areas with political problems. [There are uncertainties about] unconventional gas. There is plenty around the world – “pretty good”. Gas is not at war with renewables. Gas isn’t just a transition fuel – it’s a destination fuel. Got to prove CCS technically. If we can do that gas becomes a destination fuel. Can decarbonise not only electricity. Heat. Heat pumps won’t do it on their own. Sorry. [Gas can help decarbonise] transport – electrify the transport system – that’s what we believe is possible. Hope the Government will support CCS.
[Doug Parr] First and foremost – we are not going to eliminate gas from energy systems any time soon – don’t think of gas as a destination – I would warn against policy that gas is allowed to become the default and become too dependent on gas. A lot of policy on gas – but only over part of the energy system [electricity]. Heat is going to rely on gas fo a long time. If follow the Committee on Climate Change (CCC) logic – [heat is a] strategic sector – to getting away from carbon emissions. If gas is going to be what gets us out of energy problems – the so-called “trilemma” of decarbonisation, security [of supply] and cost. [New gas power plants amount to] 11 gigawatts [GW] over the next 5 years – 120 TWh – a quarter of current gas [still in service] out to 2030. If one take CCC target of 50 gC / KWh (grammes of carbon per kilowatt hour). Look at CCGT [Combined Cycle Gas Turbine gas generation power plant in operation] – that target is a fraction of [current] unabated [CCGT] – not that great. Any substantial role of gas has to make some pretty strong assumptions about CCS. Remember, this is not yet working – let us not have a decarbonisation policy relying heavily on CCS when not at the first stage. The CCC have warned that grandfathering of the 11 GW new generation – emit without restrictions – and issue until 2045. Can’t say gas is somehow the answer to decarbonisation issues. In media – don’t [swallow] the media froth. [As for] security of supply – already going to be quite reliant on gas for heating for quite some time – hard to see [otherwise]. Heavily reliant on imports – around 80%. Where do we import our gas from ? Qatar and Norway mostly. The former head of the Navy argued [recently] changing gas prices is the single most significant factor. DECC [UK Government Department of Energy and Climate Change] recent report on price shock. REA [Renewable Energy Association] said that just by hitting renewables targets would displace £60 billion of imports. [As for] shale gas : both Ofgem research and Deutsche Bank reports that shale gas is very unlikely to help on security [of supply] issue. Citing American example [of shale gas exploitation] is just irrelevant. [So the UK Government must be] supporting gas because of costs ? The biggest rise in consumer bills is from fossil fuel [price increases]. Not renewable energy, not green energy [measures] – it’s the rise in the wholesale gas price. Is that going to stabilise and go down ? Not according to Merrill Lynch and DECC – [strong] prices for Liquid Natural Gas (LNG) and therefore for gas [as a whole, will stay]. Clearly we will be using gas – as [electricity grid load] balancing. What I’m railing about is that gas doesn’t get us out of our energy trilemma. Gas will not [save us]. We know we can deliver through renewable energy, wind – acceleration of new technologies [such as tidal] – perhaps CCS will work, who knows ? and efficient use for example Combined Heat and Power (CHP) on industrial scale. If we are using gas we are using at it’s most efficient.
[Alan Whitehead MP] [recounts tale of how he got into trouble with Twitter commentators when he insisted the recent rise in consumer energy bills was due to the rise in the cost of wholesale gas, not green energy measures] [To Charles Hendry] I’m sure you don’t Tweet.
[Charles Hendry MP] No. absolutely not. I have enough people telling me I’m wrong without… We have to look at the role of gas. It would a dereliction of Government not to look at the role of gas going forward. […mentions developments in gas production…] seismic profiling [enabling better understanding of gas fields] horizontal drilling [improving access to complex fields]. [As for] unconventional gas – the IEA “Golden Age of Gas” – but don’t assume [it’s that simple – supply may go up but] demand for gas is going to go up dramatically. Japan – major user of LNG and diesel. Consequence of Germany’s decision to close nuclear power plants – will use much more gas. China…India…growth rate – massive growth of demand. Anticipate new resources to be found – Iraq for example – but cannot assume [what has happened in the United States of America with the development of shale gas where gas prices are now] a quarter [of what they were] – a massive boost to America – will they allow this to be exported to Asia – or use cheap gas to [relocating] industry back to the USA ? Have to look at implications for us. Reasons why shale gas is different in Europe – legal [situation] – the mineral rights [in the US, these can be acquired from underneath a landowner]. Don’t have the same commercial drives as farmers in the US. The reason why gas prices collapsed in the US and not here – if we saw a price benefit here, it would go out through the [gas] interconnectors [to neighbouring countries]. For real practical reasons won’t see shal gas develop [significantly] here. [It is a] global gamechanger – but… The US is fundamentally shifting from coal to gas – with the implications for emissions. The change from coal to gas was a major driver in European control of emissions [in the 1990s] […] Investment…technology…practical constraints. EdF [Electricite de France] will go ahead with new nuclear [by the end of the year ?] but the plant will not come online until the end of the decade. Major renewable energy resources also in 2020s [not immediate] – the cost of offshore wind power is two times that of onshore. We’re saying to industry to reduce by 40% by the end of the decade – otherwise simply not affordable. Contributions from tidal, CCS ahead. It’s going to be very end of this decade to see if CCS can work. Worrying gap [in power generation between now and next decade]. Megawatts (MW) of coal being turned off in 2015. [Coal plants are] getting through their [legally permitted] generating hours too quickly. By 2023, the only nuclear plant still operational will be Sizewell B. We have to have more gas in the mix. As we look towards more intermittent resources (renewables), gas is an important source of backup. [Will have/need] a capacity mechanism to ensure [optimisation when] mismatch between supply and demand – auction to include gas – could be [North Sea] gas, gas from the interconnectors [from abroad] or demand side response [demand reduction] – a more sophisticated capacity mechanism than historical. I’m more optimistic about CCS [than Doug Parr]. CCS is a requirement. It is something we have to deliver – no scenario I’ve seen where we’re going [to be] using less coal, oil and gas than today. [Out to 2035] our basic needs [will still rely for a good percentage on] fossil fuels. Broadening CCS [demonstration competition] out to pre- and post-combustion on coal – [expand] to gas. Can be applied to gas as well as coal. I think CCS is a fundamentally critical part of this equation. If so, can see gas as a destination fuel. The GW of gas being built in the next few years [some questions] – currently gas is being mothballed [some plants being shut down effectively putting them into disuse] because of [fuel] prices. I consented more in gas and also wind on- and offshore last year. But that gas is not being built. If we want that gas built we need a more coherent strategy. Look at what is necessary to encourage that gas – and carbon emissions [reduction] alongside. EPS [Emissions Performance Standard] […] to stop unabated coal – limit 450 gC / kWh – significant proportion of plant would need CCS. But ddin’t want to disincentivise gas. Have also said a point where CCS on gas will be necessary. But if we had people building gas now and then 15, 20 years later they would have to fit very expensive [CCS] equipment… Volume of gas coming forward meets our supply issues. Over the next few years, grandfathering. If see enough gas coming through can change the mechanism in due course. [We will be] responding officially to the CCC in Autumn. Need to [fully] decarbonise electricity in the course of the 2030s if we want to meet out climate change objectives. I think that [the] reality [is that] gas and important element. Nuclear is important. Want to see significant amount of renewable energy and what Doug is calling for – significant commitment to [energy use] efficiency in the country. [We should concentrate particularly on] energy efficiency.
The meeting then opened up to questions from the floor… To Be Continued
It’s got to be gas
Public Enemy Number One in energy terms has got to be burning coal to generate electricity. Although the use of some coal for domestic heating to supplement varying supplies of biomass in home stoves is going to continue to be very useful, using coal for power production is wasteful, toxic and high carbon.
Public Enemy Number Two in energy terms is nuclear power – a weight round our collective neck. Costly to build, costly to underwrite, costly to decommission: although its proponents claim it as a low carbon solution, even they admit the management of nuclear power can be polluting, risky and wasteful.
Public Energy Number Three in energy terms has to be the incredible amount of water required to keep the first two enemies in operation. Climate change is already altering the patterns of rainfall, both in geographical areas and in seasons. Any energy solutions that don’t require water supplies will be preferable.
Many environmental researchers oppose a growing dependence on Natural Gas for power generation in industrialised countries – they claim it will lock in carbon emissions production without Carbon Capture and Storage (CCS). Carbon Capture and Storage is way off in the never-never land at present, so it should not be factored in to analyses of carbon management. Ignoring CCS, it can be seen that substituting in Natural Gas power generation where coal has been the principal fuel is in fact a very good way to lower greenhouse gas emissions in the near term.
Natural Gas is not forever, not even with environmentally-ensured unconventional production, such as shale gas. Yet the Natural Gas infrastructure is highly important for developed and some parts of developing countries too. If we can re-imagine the future of gas, making gas fuels renewable, the already existing distribution of gas and appliances and equipment that use it, become a valuable asset.
The climate change crisis is an energy crisis. My position is that we need three vital things to solve this energy crisis : rationalised energy, renewable electricity and Renewable Gas. My key projection is that a 100% renewable energy world is possible, and in fact, inevitable, and to get from here to there we need to use gas fuels, but they need to become progressively renewable in order to meet the climate change crisis.
Natural Gas can not only be a “bridge fuel”. Supporting its use now, on the understanding that it will be replaced by Renewable Gas in the medium term, will enable links to be made between society and the energy industry, and break down the barricades between those who are against high carbon energy and those who sell high carbon energy.
This Is My Thesis
I have recently been awarded a postgraduate Master of Science (MSc) degree, and several of my contacts suggested that I might consider studying for the academic qualification of Doctor of Philosophy (PhD). To be awarded a doctorate, I would need to make a valuable contribution to the body of knowledge and achievement in my chosen field. I do not think that paper-based research on its own would count as taking collective human understanding a step further, and so I must consider what forms of theorising, construction, engineering, creation, experimentation, configuration, data collection, analysis and argumentation I would need to make accomplishments in, in order to gain the good review of my peers, and the acceptance of my skill. It is not enough to love Wisdom, she has to be sought out, and introduced to your friends.
My first instinct is collaborative – how can I find a place where I can nurture my learning and strategy, in co-operation with others – where I can find a welcome, and make statements and discoveries that gain me a status, get me recognition ? I want to shine, in order to become useful, to serve my fellow woman and man. I don’t want to be competitive, winning out over others, but be part of a vanguard, a flight formation, spurring each other on to make progress together, striving as a group. I’m not ambitious, except for truth, beauty and good technology. I can share acclaim and I want to bring everybody with me. We can, standing elbow to elbow, vanquish destructive forces.
Yet, this proud, altruistic aim, to be part of the pack of pioneers, to offer something helpful, is marred by reality. Whilst I want to be constructive, others adopt divisiveness, in order to isolate outliers, and clamber over others to win the crown. I must not only reserve my right to speak against the herd, I must also wield it. I am relegated to the Zone of Insignificance, the people whose voices do not count because they articulate criticism. I do not want to join those who act as if they have the only viable formulation of reality – with their patronising stance – offering to host the public conversation, claiming they are at the centre of the debate, whilst at the same time undermining others with clever cynicism and sneering dismissal of those who will not join them.
I cannot be bought, and neither can I be seduced into a false alliance. I will not support meta-narrative, nor other contrivances. But this leaves me conflicted. One of the most significant problems with public discourse on science and technology in relation to resource limits and environmental damage is the persistence of the “anti” lobby – those people who feel bound to continue to be negative about things that have not yet been resolved. Many have been anti-nuclear, anti-fossil fuels, anti-coal, anti-energy companies, anti-Government policy, anti-hijacking of the United Nations process on climate change by economists. These voices, these positions, are important, but do not own the platform, and so they continue to rage. It is impossible to make progress without having something to rally around, to have a positive flag to muster under, but people with genuine influence continue to mis-step in their proposals and policies.
I want to bridge the gaps between the social groupings – I need to – in order to offer a way forward that can put some of the anti-thesis to bed, and galvanise efforts towards real, workable, cost-effective solutions. A genuine peoples movement for progress can accrete consensus, enormous non-hierarchical power, and can even draw in its detractors if it can be seen to be working. I am going to have to step out in faith, and at much risk – for I am going to attempt to join together the direction of the energy sector with the concerns of the environmentalists. I am not going to use a marketing strategy, nor sell a public relations pill to financiers and investment funds. I am not going to paint a green picture that has no details or exists only in a dream world. I am fairly certain that everybody is going to hate me, at least for a while, but in the end, I hope they will see that I am right, as I feel I am not generally mistaken.
Since I expect to be slighted and put down, and for people to work to marginalise me, I do not expect to be adopted by an academic institution or an energy or engineering company in the pursuit of my goals. In fact, I would resist such appropriation, for I am intellectually liberated. So, my work will not be accorded a standard accolade by a respectable institution or corporate body, and in fact, since that is the case, I can choose to work in any way that I see fit. Since, according to many scientists, we do not have much time to gain global assent for workable climate change solutions, as we must have a peak in greenhouse gas emissions in the near term, I cannot measure out five or seven years to complete a body of work which would then be reviewed. Instead, I shall publish in stages, and take peer review, including negative criticism, if any should be offered, as I go.
Although I wish to be practical rather than purely written, I shall not have much access to the funds, laboratories or engineering workshops where I could do the work myself. Instead, I shall have to ask questions of those who are already doing the work I am following, and try to ascertain their progress, and make my recommendations for their advancement. I seek to investigate live uses of the technology and systems I write about – as I expect them to be put to use before I have completed documenting them. My work will therefore be literature, but I want my intelligence to be fully accessible, so I will not use academic forms of composition. I shall write in what I hope is an easy, open way, and provide a mechanism for reply. I am going to offer my work by subscription, and I hope that those who register to receive my report in sections, will participate in making my work better.
The human race needs to be for something, not merely against, in all the myriad multitude of complaints that rise up like evaporating water, or steam from boiling pots, all and every day. However, a false unity, or a crooked one, cannot help us. We need to use what we’ve already got, and only imagine small gains in technological prowess. We should stop believing in public relations and advertising. We should stop being lulled into passivity by those glossing over our concerns, or those outspending logic. We should not give up in the face of overwhelming ineptitude and embedded vested interests. We cannot overhaul everything overnight, and somebody’s got to pay for change, and so they had better be the right changes. We need to be pragmatic, and not overreach, nor over-commit ourselves where technology could fail.
On Being Climate Pragmatic
Academic Freedom #6 : Policy Levers
Carbon Captured #2 : Socialising Cost, Privatising Profits
Carbon Captured : The Ultimate Bailout
Academic Freedom #2 : The UN climate treaty needs energy producer obligations
The United Nations Framework Convention on Climate Change calls nations to attend regular gatherings of the signatories to the ratified convention – the Conference of the Parties.
The nations send delegations – hardly ever sending their premiers, presidents and primes. What bargaining powers do these delegations have ? They have the authority to offer small percentages in emissions reductions, just to show willing. They have the mandate to refuse policies their nations do not like. |
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The language is framed around energy consumption – most country delegations have been advised by their economists that increased efficiency in the use of energy means that the national energy use will decrease. O wondrous technology ! You allow us to cut our energy use – and therefore our carbon intensity.
These same economists advise that the Holy Ghost of Innovation will inspire Research and Development – which will mean that new technologies will curtail greenhouse gas emissions. We only have to invest in new engineering. This Cult of the New is the fable on which most advanced nations hang their hope. |
Alchemic for the people
I was less than a metre above current sea level, rooting about in the holy bookshelves of my Evangelical host, searching for a suitable title.
I pulled out “Who Made God ?” from underneath a pile of books on their sides, letting the column slump downwards, alerting my companions to the fact that I had definitively made my choice for the evening’s reading. We were treated to gentle Christmassy music for an hour or so as we all gave up talking to read by candlelight and compact fluorescent. | |
I didn’t read fast, as at first I didn’t have my newly-necessary reading glasses, and when I was encouraged to fetch them, the light was too dim to make reading easy. Those fashionable uplighters.
I read into the second part, and I had already formed in my mind several disagreements with the author, Professor Edgar Andrews, despite him having taken several good lines of reasoning and made some humourous points which I had duly responded to with a slight audible giggle. I instinctively didn’t like his pitch about the impossibility of organic chemistry and I froze a little : personally I see no need for God’s personal, literal, physical intervention to make the ladders and spirals of genes – the DNA and RNA forming from the appropriate nucleotide bases – A, T, G, C. And then the book’s author blew away his credibility, for me, at least, by getting bogged down in the absolutes of Physics, and ignoring Chemistry. He quoted the Laws of Thermodynamics, and claimed Entropy as proof that God doesn’t play dice because he’s in the garage playing mechanic. The direction of the universe, the arrow of time, plays towards randomness, the author of the book proclaimed. Order cannot come from inorganic matter – Life is the organising force. At this, I took several forms of dispute, and immediately found in my mind the perfect counter-example – the formation of crystals from saturated solution – the building of the stalgamite and stalagtite from the sedimentary filtering of rainwater. Another example, I think, is chiral forms of molecular compounds – some chemicals behave in different ways if formed lefthandedly or righthandedly. The different forms behave predictably and consistently and this is an ordered behaviour that I believe – without the necessary university instruction in Chemistry – is an imposed denial of chaos. In fact, the whole of Chemistry, its world of wonder in alchemy, I think points to a kind of natural negation of the Laws of Physics. There is the Micro World, where Newton, and more introspectively, Einstein, are correct in their theoretical pragmas. But in the Macro World, there is Chemistry, and there are precursor compounds to organic essentials. Life forms itself from dead stone. For a Physicist this is “just not cricket”, it is a whole new universe. Why can Aluminium be used for containers in microwave ovens, but steel cannot ? And why is Aluminium so light ? Why does water expand when it freezes ? Here the Physicists can help out. But they cannot, when it comes to explaining, or even accurately predicting, all the chemical properties of alloys and compounds. I have been pondering, in a crude, uneducated way, about industrial chemistry for the last couple of months. How large volume reactions are encouraged, catalysed. How fluids work. How gases breathe. My conclusion is that most chemical engineering is a bit brutish, like the workings of the internal combustion engine. Things are a tad forced. It is probably not possible for chemical engineers to replicate photosynthesis entirely – it’s too dainty for them. But that is the kind of chemistry we need to overcome our climate and energy problems. We may not be able to match the leaves on the trees, but we can do gas chemistry and electricity and semiconductor physics, and it is gas chemistry and electricity and semiconductor physics that will save the planet. Electricity to replace much fuel. Semiconductor physics to bypass photosynthesis. And Renewable Gas chemistry – engineering the chemical building blocks of the future and providing backup to the other green energies. |
Another Meeting I Will Not Be Attending
What appears to be a serious event is due to take place at the Energy Institute in London on 6th December 2011, “Peak Oil – assessing the economic impact on global oil supply“.
Dr Roger Bentley, author of a seminal 2002 paper on the subject, research that spawned hundreds of related learned articles, will be speaking. But the event organisers have also invited one Dr Matt Ridley, the self-styled “rational optimist”, and member of the Global Warming Policy Foundation, and this, I’m afraid, prevents me from attending. | |
Ridley projects a view that many probably find comforting – as his headline in The Times of 1st October 2011 summarises – “Cheer up. The world’s not going to the dogs”. He has been captured speaking at a TEDx event pouring scorn on “environmental” scare stories of the past, but not bothering to delve or dig into how mankind has actually gone out of its way to act on past crises and prevent catastrophes. And now he’s thrown in his lot with the shale gas miracle men, writing a report with a foreword by Freeman Dyson, one of the world’s most balanced individuals. How much uncorroborated optimism can one man contain ? |