Fossil Fuels

Ukraine Crisis Is Connected To Climate & Energy Policy

Originally published on EnergyPost.eu. By Sonja van Renssen Decisions on a new European climate and energy policy for 2030 are relegated to autumn as heads of state are caught up in the Ukraine crisis. At their spring summit in Brussels, EU leaders gave centre stage to energy dependence. First climate change, then competitiveness, now security of

Ukraine Crisis Is Connected To Climate & Energy Policy was originally published on CleanTechnica.

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Germany Fossil Fuel Production Drops, Electricity Exports Soar

Originally published on RenewEconomy. As Germany chancellor Angela Merkel said last month, if Germany can succeed with its ambitious energy transition then other countries could too. “If we succeed, then she (the Energiewende) – and I’m convinced of it – will become another German export hit,” she said. “The world looks with a mixture of a

Germany Fossil Fuel Production Drops, Electricity Exports Soar was originally published on CleanTechnica.

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Germany CO2 Emissions From Power Sector Unchanged


Originally published on Renewables International.
By Craig Morris

The AGEB published its official review of German energy in 2013 yesterday, confirming our estimate from January: CO2 emissions from power are down.

The official figures from Germany’s Environmental Agency (UBA) are not yet in, but AGEB has published its official estimate of energy statistics for 2013. For the power sector, the original preliminary report from December did not contain any estimate of carbon emissions, or of actual coal consumption (primary energy). Rather, it only discussed power production (final energy).

But as our Thomas Gerke pointed out in January, carbon emissions are related to the amount of primary fossil energy consumed, not the amount of final energy produced. Germany is making more electricity from less coal. Gerke estimated that carbon emissions from the power sector – remember, we are only talking about electricity, not total energy consumption – must be down by around 0.3 percent.

2013CarbonEnergyConsumption (1)

The original chart from January in which we estimate that carbon emissions from the power sector in Germany were probably stable or slightly down in 2013.
Image Credit: Thomas Gerke

Now, the AGEB has confirmed his findings, though they refrained from stating outright that carbon emissions are down. Here is the statement from the press release (PDF, all texts only in German; these are my translations):

Lower emissions from natural gas turbines and lignite power plants compensated for the increase in CO2 emissions from hard coal plants.

A more literal translation would read that the “increase” in CO2 from hard coal was “balanced” by the drop in consumption of natural gas and lignite for power.

The full report (PDF) states that CO2 emissions “are practically unchanged year over year.”

While power from natural gas shrank considerably, the increase in electricity from lignite and hard coal was compensated for by greater use of renewables, so that the CO2 intensity of power generation remained the same in 2013 as in the previous year.

The figure given for 2013 for “general power supply” is 0.51 kg of CO2/kWh. Strangely, no number is reported for the previous year. If you want to compare, you have to go find the official report for 2012 (PDF). Et voilà, the figure for that year is 0.52 kg of CO2/kWh. Carbon emissions from the German power sector were down in 2013.

Agorawrong

The Berlin-based think tank Agora Energiewende is only one of a large number of organizations that estimated higher carbon emissions from the German power sector based on an uptick in final energy (electricity) from fossil fuel. Agora has made quite a splash with its “Energiewende Paradox” (meaning that the Energiewende is leading to higher carbon emissions from the power sector), but the real paradox is that no one is reporting that carbon emissions from the power sector are down. Agora is itself working to reduce carbon emissions, so the think tank probably cannot use the news about lower carbon emissions.
Image Credit: Agora

Why is this message suppressed?

In any normal situation, such hard facts would simply be reported – it’s not like there’s no way to say “carbon emissions are slightly down year-over-year” in German. But the AGEB writes only that “Germany was probably not on target for its carbon emission reductions in 2013.” The organization is focusing on total energy consumption, not just power. In other words, Germans actually are seriously concerned about carbon emissions, and they are not going to celebrate some minor downturn in the smallest of the three main energy sectors (Germany consumes roughly a fifth of its energy as electricity, but 2/5 as motor fuel and 2/5 as heat).

Why is Renewables International celebrating this outcome? We’re not; we are reporting on it. We would also like to speed up the transition to renewables and phase out fossil fuel even more.

The charge that German carbon emissions are up because it is switching to coal is a popular meme in particular among the nuclear community. It is therefore important to set the record straight. Nuclear plants produce electricity, not liquid fuel, and the waste heat from nuclear plants is almost never used; apparently, not enough people want to live or work close enough to a nuclear plant to make the recovery of waste heat practical. The power sector is the easiest thing to fix. German carbon emissions largely come from heat and motor fuel, where too little is being done.

In a few weeks, the UBA should produce its own estimate of carbon emissions in the power sector, so we expect to be back with further confirmation of these findings soon. And keep in mind that we have estimated lower carbon emissions for 2014 as well from the power sector for various reasons, including most recently lower power exports to France, though the overall forecast for the power sector remains bleak until the end of the nuclear phaseout in 2022. (Craig Morris)

Germany CO2 Emissions From Power Sector Unchanged was originally published on CleanTechnica. To read more from CleanTechnica, join over 50,000 other subscribers: Google+ | Email | Facebook | RSS | Twitter.

6 German Renewable Energy Charts

One of our readers, Kanaga Gnana, recently sent along a November report from the Fraunhofer Institute that has a number of interesting charts in it. I pulled out 6 for sharing here. Have a look. In this first one, you can see CSP vs PV vs CPV levelized cost of energy (LCOE) estimates for Germany:

6 German Renewable Energy Charts was originally published on CleanTechnica.

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Rumours Of William Koch Leaving The Coal Business Are False


Originally Published in the ECOreport.

800px-SL500_01

The rumours of William Koch’s departure from the coal business are incorrect.

According to a reporter from E&E, Koch said, “The coal business in the United States has kind of died, so we’re out of the coal business now. Generally, people and businesses try to do the thing that’s most economical. A lot of the profit has gone out of the coal business…. Fortunately, no one got hurt, but if we went back in, it could have killed people, so we’re saying, ‘All right, we’re going to close it.’”

Only, according to Koch’s PR person, Brad Goldstein, the closure was never meant to be permanent. The mine is shut down until Oxbow acquires a new long wall and other equipment that was lost in the fire.

This also happens to be what Mike Ludlow, the President of Oxbow Mining, said when the shut down was first announced:

“We are idling the mine until we are able to install a replacement longwall and other equipment,” Ludlow stated. “We are working on the engineering and procurement of a replacement longwall and other equipment as quickly as possible.”

In that same article, it states:

It’s expected the mine shutdown, however temporary, will have a significant effect on the local economy and Delta County.

The Elk Creek Mine is estimated to have generated $36 million per year in wages and contributed about $90 million annually to the local economy. The average pay for a miner at Elk Creek was two to three times the non-mining average in the region.

“I am deeply concerned about the effect the Elk Creek Mine closure will have on the families supported by this mine as well as the North Fork Valley community as a whole,” State Rep. Don Coram, R-Montrose, said in a statement.

Far from getting out of the business, Oxbow is continuing to market coal in Europe and Asia.

Goldstein also clarified some other rumours.

Greenpeace reported that there had been 2,000 mining violations at the Elk Creek Mine. Goldstein did not know if the number is accurate, but said if it is, those stats would be over a twenty-five year period.

“The number of our citations is way below the industry average,” he said. “Our worker’s safety is very important to us. We treat every citation seriously.”

Regarding Koch’s much-touted opposition to the Cape Wind project, Goldstein said that is mostly Jim Gordon creating publicity. It is true Koch has given the Alliance to Protect Nantucket Sound a substantial amount of money, but the epic confrontation between these two men is not there.

“The bottom line is that the Cape Wind project is not economically feasible,” Goldstein said. “There is not enough wind for a project like this on Nantucket Sound. Nobody believes in it. The only one promoting it is Gordon and that is because he has all of his money invested in it.”

Asked if Gordon believes in Cape Wind, Goldstein replied, “I don’t know. You’ll have to ask him.”

There have also been stories about the Koch brothers operating in the petroleum coke business. Though it is true they are operating in the same market, Goldstein made it clear that William Koch is a competitor, not a partner.

This may not be the last time I write about William Koch. As some of you are probably aware, he was once into renewable technology. He referred to it in a recent interview with Commonwealth Magazine (CW):

“We at one time were the largest supplier of green energy to southern California. SoCal Edison had on its bill a box that homeowners could check off if they wanted green energy. If they checked the box off, they were then charged an extra 2 cents a kilowatt hour. They would share one cent of that with us. Over 15 years, guess how much green energy I sold to Southern California Edison?”

“How much?” CW asked 

“Zero,” Koch replied. “No one would pay. What that said to me was that California wanted green energy but homeowners didn’t want to pay for it. When it comes down to dollars and cents, people want the cheapest energy possible.” 

I would like to know what motivated Koch to get into renewable technologies, more about his experience, and why he abandoned this sector.

BTW – The William Koch you meet in that CW article is very frank, has a lot of spunk and some intriguing insight.

Image at top of page: Longwall mining –  Shearer at work in a coal mine, Picture donated by the company Eickhoff Engine Works and Iron Foundry, Bochum. cc 1.2, courtesy Wikipedia

Rumours Of William Koch Leaving The Coal Business Are False was originally published on CleanTechnica. To read more from CleanTechnica, join over 50,000 other subscribers: Google+ | Email | Facebook | RSS | Twitter.

Solar Power Is A Huge Water Saver (World Water Day Infographic)

Every year on this day since 1993, the community of nations has focused on the importance of fresh water and advocated for the sustainable management of freshwater resources. Severe droughts experienced recently in places like the American West, the Horn of Africa, Russia, China, and Australia have highlighted the fact that humans are rapidly using

Solar Power Is A Huge Water Saver (World Water Day Infographic) was originally published on CleanTechnica.

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Greenpeace Pushing For Pan-European Supergrid

A report released by Greenpeace on Thursday based on analysis done by consultants Energynautics has floated the idea of a need for a pan-European supergrid to help meet the ambitious target of at least 45% renewables by 2030. “Europe’s energy system is at a crossroads,” the authors of the report write, noting that the existing

Greenpeace Pushing For Pan-European Supergrid was originally published on CleanTechnica.

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As You Sow Reaps Exxon Mobil Carbon Risk Disclosure…Maybe



The shareholder activist group As You Sow has scored a landmark, first-of-its kind carbon risk disclosure agreement from none other than Exxon Mobil, which under its previous incarnation as Exxon was notorious for directly funding the climate change denial lobby.

The agreement was announced yesterday by As You Sow and its partner in the effort, Arjuna Capital (video available at the link). It addresses the emerging issue of “stranded” carbon assets, as energy companies keep plowing more dollars into fossil fuel investments that a growing number of analysts see as high risk, given the likelihood of global carbon regulation in the near future.

ExxonMobil carbon risk disclosure

Exxon Mobil Baytown facility (cropped) by Roy Luck.

The Power Of Carbon-Aware Shareholders

The tool used as leverage by As You Sow and Arjuna was a shareholder resolution citing a recent International Energy Agency (IEA) statement that “No more than one-third of proven reserves of fossil fuels can be consumed prior to 2050 if the world is to achieve the 2° C [two degrees Celsius] goal, unless carbon capture and storage technology is widely deployed.”

In terms of stranded assets, the math is simple. Again citing IEA, the shareholder resolution states that proven fossil fuel reserves (coal, oil, and natural gas) total about 2,860 gigatons of potential carbon dioxide emissions, while the International Panel on Climate Change estimates that the limit on emissions is only 987 gigatons through 2100, if global warming is to be capped at an increase of two degrees Celsius.

This gap represents an enormous risk for investors, as competition ramps up with new alternative fuels creating downward pressure on fossil fuel prices. New energy efficiency technology is also adding to the pressure.

Concurrent with market forces, public pressure is mounting on governments to encourage, and to take advantage of, new energy technology. In the US, one notorious example is the phase-in of new efficiency standards for light bulbs, which started off as red meat for conservative politicians just two years ago and now raises barely an eyebrow.

Here’s the money quote from the shareholder resolution (bolded for emphasis):

Investors require additional information on how Exxon Mobil is preparing for potential scenarios in which demand for oil and gas is greatly reduced due to regulation or other climate-associated drivers. Without additional disclosure, shareholders are unable to determine whether Exxon Mobil is adequately managing these risks or seizing related opportunities.

We noted that thing about failure to seize opportunities on two accounts. Last year, we reported that Exxon Mobil had apparently ramped down an important investment in the promising algae biofuel field, moving away from a commercial-track position to focus on foundational research only.

The second item crossed our radar just last week, when Exxon also announced plans for a major expansion of its Baytown facility in Texas to convert natural gas to plastic, following on major investments in shale gas and oil fields. This is at a time when other companies, notably Shell, are beginning to shed their shale assets due to continued sluggish profits (and, quite likely, growing evidence of environmental and public health risks beyond carbon pollution).

The Exxon Mobil Carbon Risk Disclosure

The bottom line of the shareholder resolution was to request a report by Exxon with a deadline of September 2014, specifically addressing “the risk of stranded assets presented by global climate change, including analysis of long and short term financial and operational risks to the company.”

As of 
this writing Exxon has not formally announced its agreement. Our friends over at Fuel Fix cite email confirmation only so far from the company, but As You Sow and Arjuna certainly wasted no time in making it official. Yesterday, the two partners blasted a press release on PR Newswire asserting that they will withdraw the resolution in exchange for Exxon Mobil’s agreement to provide the requested information, particularly as it relates to the company’s business model, its plans for a “carbon-constrained” world, and the effect of climate risks on its capital expenditure planning.

Natasha Lamb, director of equity research and shareholder engagement at Arjuna Capital, lays  out the risk of reserve devaluation in a carbon-constrained world:

More and more unconventional ‘frontier’ assets are being booked on the balance sheet, such as deep-water and tar sands. These reserves are not only the most carbon intensive, risky, and expensive to extract, but the most vulnerable to devaluation. As investors, we want to ensure our Companies’ capital will yield strong returns, and we are not throwing good money after bad.

We’re all for that, but let’s keep in mind the aforementioned vigorous pursuit of the shale market by Exxon Mobil. In addition to a major shale acquisition last year, rumors have been flying around this winter that the company is set to buy the beleaguered Chesapeake Energy, a major shale investor.

So, let’s see what happens to that disclosure agreement when September 2014 rolls around.

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As You Sow Reaps Exxon Mobil Carbon Risk Disclosure…Maybe was originally published on CleanTechnica. To read more from CleanTechnica, join over 50,000 other subscribers: Google+ | Email | Facebook | RSS | Twitter.

California May Cut Transport Fuel Consumption 1 Billion Gallons+ Per Year, Blazing US Trail

A new report from Bloomberg New Energy Finance (BNEF) has shown that California may cut its transport fuel consumption by more than a billion gallons per year by 2020 due to policy initiatives and a burgeoning electric and high-efficiency vehicle culture. According to Bloomberg, “the analysis puts forward two scenarios for the development of gasoline demand

California May Cut Transport Fuel Consumption 1 Billion Gallons+ Per Year, Blazing US Trail was originally published on: CleanTechnica.

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Solar Will Become An ‘Incumbent’ Energy Source In Australia

Originally published on RenewEconomy. Australia is embarking on a radical transformation of its electricity system that will see solar PV transition from being “disruptive” technology to the “incumbent” technology, displacing coal and sparking a radical change in the way that electricity is provided. This is the assessment from Clean Energy Council CEO David Green (pictured),

Solar Will Become An ‘Incumbent’ Energy Source In Australia was originally published on: CleanTechnica.

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