Tag: renewables

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Keystone Pipeline Debate Reopens with Submission of New Application

The Nicholas Institute for Environmental Policy Solutions at Duke University

The U.S. Department of State has received a new application from TransCanada—the company behind the controversial Keystone XL project—to ship crude oil via a proposed pipeline running from the Canadian border to existing infrastructure in Nebraska. TransCanada had its initial application rejected by the Obama administration in January. The reapplication to the U.S. State Department on Friday calls to reroute the pipeline around the environmentally sensitive Sand Hills Region of Nebraska—adding miles onto the project. Despite the new route, some in Nebraska still oppose the plan. The pipeline is causing other problems as lawmakers debate a multi-year surface transportation plan—the first one since 2005.

If approved, construction on the pipeline could happen in early 2013, with oil flowing as soon as 2014, according to The Canadian Press.

That same day, the Obama administration issued a proposed rule requiring companies drilling for natural gas on federal and tribal lands to disclose chemicals used in hydraulic fracturing. While the rules also set standards for proper construction of wells and wastewater disposal, disclosure of the chemicals used in the “fracking” process would not have to be reported until after work is complete. The regulations, which could go into effect by the end of the year, spurred debate among environmentalists, industry and lawmakers—with some saying the rules didn’t go far enough. Others highlighted the “toughest” provisions, which require tests of wells’ physical integrity and expand the scope of water protected from drilling—but pointed out the rules “only apply to a sliver of the nation’s natural gas supply.”

Gas prices have continued a steady decline the last five weeks, causing the Energy Information Administration (EIA) to revise forecasts for the summer—predicting motorists will spend $10.7 billion less than previously estimated.

Heartland Institute Pulls Controversial Billboards

The Heartland Institute made headlines again recently for suggesting—in billboard ads—that only terrorists believe in manmade global warming. The failed campaign attacking the existence of climate change prompted a firestorm of criticism and recalled another kerfuffle involving the Institute earlier this year. Reactions to the campaign caused the Institute to announce removal of the billboards after being up just 24 hours. Even after they were removed, some donors pulled funding for the Heartland Institute, but others weren’t so quick to cut their ties with the organization.

A new study focuses blame for warming on another species entirely. It links methane emissions from dinosaurs, the sauropod specifically, to climate change and a warmer Mesozoic era. Like the dinosaurs before them, modern-day methane emitters such as cows and sheep are being studied to determine how the methane they emit could be contributing to warming. Regardless, according to the study, emissions from dinosaurs were far larger than those of our modern-day plant-eating animals, and in fact may have equaled all modern methane emissions—both natural and manmade.

New data sheds li­ght on the speed of melting glaciers, and how their changes affect sea levels. Greenland’s ocean-bound glaciers accelerated by an average of 30 percent from 2000 to 2011—not quite as quickly had been estimated in previous worst-case scenarios, but still a cause for concern.

The Rise and Fall of Renewables

While a solar-powered boat was circumnavigating the world, on land the U.S. activated the first solar power project on federal land near Las Vegas. Meanwhile, residential solar leasing is taking off, Motley Fool reported. And in the next five years, the world’s solar power generating capacity is predicted to grow more than 200 percent, although public support for green energy initiatives has dropped recently.

Japan may be taking steps toward renewable energy after taking its last nuclear reactor off line last week. The move left the country without nuclear power for the first time since 1970. But MSNBC insisted renewables wouldn’t bring immediate relief, as only 10 percent of Japan’s power generation currently comes from renewables. Saudi Arabia is exploring whether it can generate a third of its electricity by way of solar power.

In the U.S., the renewable winner may not be necessarily who you think, according to the Washington Post. The EIA now has a map showing a large uptick in renewables between 2001 and 2011. This surge in renewables can largely be attributed to state renewable portfolio standards requiring utilities to obtain a certain percentage of their electricity from renewable sources, federal production tax credits and stimulus grants. The stimulus grants have expired; the tax credit for wind will expire at the end of 2012. The Guardian reports there is an effort underway by conservative think tanks in the U.S. to eliminate all government programs aimed at promoting the use of renewables.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Obama Moves Ahead with Oil Sanctions as Gas Prices Climb

The Nicholas Institute for Environmental Policy Solutions at Duke University

Before Congress headed home for spring recess, the Senate, with a rate vote of 100, approved President Obama’s new round of sanctions designed to deter Iran’s nuclear ambitions. The president’s decision was based on an analysis of current oil supply and the likely effect of further sanctions on prices. The Senate also shot down the president’s bid to reduce subsidies to oil producers.

Oil prices have climbed this year amid lingering tensions with Iran, with the price of gas now averaging around $3.92 a gallon—and experts are warning more increases are on the way. The U.S., France and other nations are considering the release of some emergency oil supplies to stop further rises in prices. Experts are skeptical about the impact tapping the U.S. Strategic Petroleum Reserve would have on prices. Reuters reports that with this decision, timing is everything.

Back home in their districts, legislators are using oil prices to fuel campaign rhetoric. Rep. Bobby Schilling, R-Colona, is finding photo ops at the pump, pumping $100 into his Chevy Suburban. Meanwhile, La Tarndra Strong, who manages a trucking company in North Carolina, said high fuel prices are slicing her razor-thin margin.

Officials Eye Cap-and-Trade Revenues for Transit

In California, some officials are eyeing revenues from the state’s cap-and-trade system to get drivers out of their cars. The cap is envisioned as a financial backstop to the state’s high-speed rail plan. Gov. Jerry Brown’s budget indicates that cap-and-trade could provide up to $1 billion in revenue. Building high-speed rail up and down the Golden State could be just one plan for cap-and-trade monies. Former Assembly Speaker Fabian Núñez advocates using revenues to boost clean tech, while State Sen. Kevin de León wants to see at least 10 percent of the revenues be put toward greenhouse gas reduction projects in disadvantaged communities. Some farm groups, meanwhile, are vying for funds to go to supporting agricultural practices that cut greenhouse gases.

Further north, Washington State Gov. Christine Gregoire signed legislation helping to shield drivers from liability who lend their cars as part of the nation’s burgeoning car share movement. Whereas some companies such as Zipcar and Car2go provide fleets for sharing, person-to-person programs use software to link individuals who want to rent out their cars to people who need a short-term lift. But most automobile insurance companies currently cancel the policies of drivers who are part of this growing “collaborative consumption” movement.

Nuclear Worries Continue as Wind Farms Appear on Horizon

Federal investigators have kept a troubled Southern California nuclear reactor closed as they investigate why tubes carrying radioactive water are decaying rapidly. Concern is mounting in nearby coastal cities—fueled by Fukushima fears—prompting some to call for the plant’s permanent closure. Germany accelerated its timetable for moving off nuclear in response to last year’s tragedy in Japan. Two plants to be built in Britain are the latest to fizzle. But phasing out nuclear may not boost renewables.

The U.K.’s Shetland Island could be home to the world’s most productive wind farm after receiving approval to move ahead with construction Wednesday. In the U.S., an offshore wind turbine in Virginia may be the first in the country. Five states have reached an agreement to speed the approval process for offshore wind farms in the Great Lakes.

Apple unveiled plans for the nation’s largest private fuel cell energy project. The project will power a data center using hydrogen extracted from natural gas.

Scientists Dissect Causes of “Weather Weirding”

The National Oceanic and Atmospheric Administration found that March’s “meteorological madness” with record-setting highs was due mostly to freakishly random factors, with only a small assist from human-induced climate change. IPS calls this “extreme weather” the new normal, and there may be more crazy weather in our future. The changes are causing some scientists to look to the ice.

A paper now out in Nature shows how increased CO2 in the atmosphere led to a series of sudden and extreme global warming events that occurred between about 55.5 and 52 million years ago.

Stopping climate change would cost consumers pennies per day, a new U.K. study concludes.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

 

 

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U.S. Rejects Tar Sands Pipeline from Canada—For Now

The Nicholas Institute for Environmental Policy Solutions at Duke University

Under pressure from Congress to make a decision on the Keystone XL pipeline, planned to connect Canada’s tar sands region with the U.S. Gulf Coast, the Obama administration has decided to reject the pipeline proposal.

“This announcement is not a judgment on the merits of the pipeline, but the arbitrary nature of a deadline” that did not allow enough time to finish the environmental impact assessment, said President Obama. Republicans who supported the pipeline say they will continue to fight for it, and have asked Secretary of State Hillary Clinton to testify before Congress on the decision.

The company that wanted to build the pipeline, TransCanada, said earlier this week it was moving ahead with its plans despite the political wrangling. Also, the government of Alberta, the province at the center of Canada’s tar sands activity, had been urging the U.S. Environmental Protection Agency to ignore greenhouse gas emissions and climate change impacts when evaluating the pipeline, according to newly released documents.

But with the decision issued by the U.S. State Department, now the company will have to start over and reapply, and the government might not offer an expedited review. TransCanada may reapply within weeks proposing a new route avoiding Nebraska’s ecologically sensitive Sand Hills region, above a portion of the vast Ogallala Aquifer.

Obama reportedly called Canadian Prime Minister Stephen Harper to explain his decision, and Harper said he hoped the pipeline would eventually be approved. Harper is also supporting another pipeline to Canada’s Pacific coast that would facilitate exports to Asia, in particular to China. However, pipeline approval is more difficult in Canada than the U.S., and there is considerable opposition to a Pacific pipeline, a Reuters analyst said.

The decision was a “brave” call, said Bill McKibben, branded in the Boston Globe as “the man who crushed the Keystone XL pipeline.”

However other commentators—even those who took the decision as good news—argued it won’t stop Canada’s tar sands from flowing, and thus won’t reduce greenhouse gas emissions. Others called the decision “a gift” to the GOP.

Shale Gas Versus Alternatives

Although world oil prices and U.S. gasoline prices were at all-time highs in 2011, in the U.S. natural gas prices have been plummeting, reaching their lowest in a decade in a “classic case of oversupply.” The price has dropped lately because of a mild winter requiring less heating, a boon to consumers and businesses; the longer trend has been driven by the advent of shale gas drilling techniques, which now account for about a quarter of U.S. natural gas production.

There has been limited shale gas development outside the U.S., and prices in most of the rest of the world have remained much higher.

Although several years ago the U.S. was planning to import large amounts of liquefied natural gas and built ports to receive it in tankers, now the country is considering exporting natural gas. But such a move would have wide-ranging impacts that are difficult to unravel, according to a new report from the Brookings Institution; the U.S. Energy Information Administration said exporting natural gas would likely push domestic prices up.

And an MIT study simulated the impacts a steady supply of cheap shale gas would likely have on the U.S. economy and found it would in many ways benefit the economy over the next couple of decades, but that it could boost greenhouse gas emissions and stunt the growth of renewable energy and other alternatives.

Renewables Reach New High

Global investment in renewable energy hit a new record in 2011, reaching $260 billion, up 5 percent from 2010. Wind investment fell 17 percent from 2010, while solar investment grew by a third, so spending on solar was twice the spending on wind. The growth of solar was attributed in large part to plummeting photovoltaic panel prices.

Meanwhile, manufacturers of both solar panels and wind turbines are being squeezed by oversupply, leaving them with low profit margins.

In the U.S., renewables investment grew by a third, to $56 billion, helping the U.S. to reclaim the title of world’s biggest clean energy investor. However, in 2011 the country also saw the end of “green stimulus” money and federal loan guarantees, and its Production Tax Credit will end at the close of 2012, so future investment onward may drop unless new support for renewables is brought in.

With the drop in wind energy investment, Vestas, the world’s largest turbine manufacturer, is laying off more than 2,000 employees globally, about 10 percent of its workforce. It said it may layoff another 1,600 in the U.S. if the Production Tax Credit is not extended.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Only Five Years Left to Make Transition to Low-Carbon Infrastructure

The Nicholas Institute for Environmental Policy Solutions at Duke University

The infrastructure built over the next five years could “lock in” enough emissions to push the world past its target for limiting warming to 2 degrees Celsius, according to the International Energy Agency’s (IEA) latest annual update of energy trends, World Energy Outlook.

The Agency is “increasingly pessimistic” about the prospect for dealing with climate change, said deputy executive director Richard Jones.

To stay below 2 degrees Celsius of warming, the world has a budget of greenhouse gases it can emit, equal to about 1 trillion tons of CO2. Infrastructure already in place, or in the process of being built, will emit about 80 percent of that, the IEA estimated.

Unless there is a binding international agreement soon to ensure a swift transition to low-carbon infrastructure, “the door to 2 degrees will be closed forever,” said IEA Chief Economist Fatih Birol. So, investment in cleantech can’t wait until economic good times, argued the Guardian’s Damian Carrington.

This transition away from fossil fuels will require that annual subsidies for renewable energy continue rising, reaching $250 billion by 2035—four times today’s level—the IEA estimated, but this would still be considerably less than today’s fossil fuel subsidies.

The IEA foresees oil prices remaining high for decades to come, with a tight market with risks of price spikes if there is a cut-off due to war or soaring prices if there is insufficient investment in oil fields.

Because of these climate and security risks, Birol argued, “We have to leave oil before it leaves us.”

Solar Trade War?

The boom in Chinese production of low-cost solar panels has hit U.S. manufacturers hard, making it difficult for them to compete.

Subsidies for renewable energy in China have sparked accusations of a trade war with the United States, prompting a U.S. Department of Commerce investigation.

Some U.S. manufacturers launched an official complaint against China, and have called for a duty on Chinese panels imported into the U.S.

Another group of U.S. solar manufacturers and installers banded together to form the Coalition for Affordable Solar Energy to oppose the complaint. This led China’s largest solar power plant developer to shelve plans for a $500 million U.S. project.

Despite China’s large exports of solar panels, they’re also using many at home—and may install as much solar capacity as the U.S. this year.

Carbon Tax Approved

Australia will impose a large tax on carbon emissions, after the country’s Senate passed the legislation. The tax will kick in next July, and the country is pursuing linking its carbon market with others in New Zealand and Europe.

The system will be tax-and-dividend in which households will be compensated for higher energy prices, with payments of about 10 Australian dollars per week scheduled to start in May, before the tax hits.

Pipeline Controversy

The proposed Keystone XL pipeline to carry tar sands from Canada to Texas faced its biggest opposition yet with a revival of protests in Washington, D.C., in which thousands of protesters encircled the White House.

Canada is also considering another tar sands pipeline called Northern Gateway to reach a port on the Pacific coast, sited for export to Asia.

Oil historian Daniel Yergin argued opposition to the Keystone XL pipeline is misguided because if the U.S. doesn’t buy the fuel, China will.

Either way, the large store of tar sands in Canada could reshape world oil markets, said the Organization of Petroleum Exporting Countries (OPEC), which represents large exporters such as Saudi Arabia, but does not include Canada.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Big Businesses’ Call for Climate Action: Strong Treaty, More Aid

The Nicholas Institute for Environmental Policy Solutions at Duke University

A group of 285 large investors, representing more than $20 trillion in assets, urged world governments to forge a binding treaty at upcoming climate negotiations in Durban, South Africa, and said global spending has not been nearly enough to keep warming below 2 degrees Celsius.

The call came from a coalition of four green investment groups—representing the investment arms of banks HSBC and BNP Paribas, as well as of fashion company Hermes and the United Nations Environment Programme—aimed at limiting emissions and taxing them, arguing it will drive innovation, attract investment and create jobs. The call also hailed Australia’s recent move toward a carbon tax, saying it will be a boon for investors.

Meanwhile, another group of more than 175 companies called for Durban attendees to ensure $100 billion in annual climate aid to poor nations, as had been promised earlier.

No Big Bang

But Jos Delbeke, director general for climate action at the European Commission believes the long-running negotiations through the United Nations Framework Convention on Climate Change are unlikely to produce a “big bang”—that is, a breakthrough that would lead to the birth of a new climate treaty.

In preparation for the upcoming meeting, Japan has signaled it may step back from its own target of cutting CO2 emissions 25 percent by 2020—and it is bringing it up now to avoid giving the “wrong message to the international community,” according to the Wall Street Journal.

Japan, Canada and Russia have said they won’t accept an extension of the Kyoto Protocol unless it binds all major economies—which is not the case under Kyoto—but other governments are seeking a way to extend the treaty even without those three countries.

Yomiuri Shimbun also reported Japan will argue the next legally binding climate agreement should wait until 2015, after the Kyoto Protocol lapses in 2012.

Door Closing

Meanwhile, International Energy Agency Chief Economist Fatih Birol gave a sneak preview of the upcoming World Energy Outlook report, which will argue that without bold action, “the door may be closing” on limiting warming to 2 degrees Celsius. Meeting the challenge will take about $38 trillion in spending on oil, gas and electricity infrastructure over the next 25 years.

According to a leaked version of the European Union’s Energy Roadmap 2050, in most scenarios—with differing amounts of efficiency, renewable energy and nuclear power—electricity prices will rise until about 2030, and then fall.

Already the high cost of energy is eating into consumers’ disposable income in the U.S., as well as in the U.K., where it is driving inflation up.

As a counter-measure, the U.K. is pursuing “serious intervention” in the energy market to increase competition and transparency, and the country’s Department of Energy and Climate Change hopes a new bill that came into effect on home energy efficiency will help fight rising bills.

Mixed Signals

A New York Times article asked “Where Did Global Warming Go?,” noting the topic has faded from Obama’s speeches and arguing the GOP has made climate change skepticism a requirement for electability.

However, Joseph Romm at Climate Progress pointed a finger at the New York Times and other major media outlets as part of the problem because there has been a major decline in the amount of climate coverage. Others, such as William Y. Brown of the Brookings Institution argued the New York Times piece is wrong to say Americans don’t trust scientists; rather they don’t like being lectured.

Green issues do appeal to voters, according to a study by Stanford University researchers, who found American politicians who took a pro-green stance were more likely to win. More specifically, Democrats who supported green issues won more often, and Republicans who took anti-green stances lost more often than if they kept silent on the topic.

Energy will also be a significant issue for GOP candidates, according to “energy and environment insiders” polled by the National Journal. Especially important, the insiders said, will be linking energy policy with job creation.

Luxury in a Smaller Package

Even in these hard economic times, luxury cars still have a market and automakers are rolling out new models that, while remaining plush and pricey, are shrinking, both in body and engine.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Ending Fossil Fuel Subsidies May Be the Way to Jumpstart Climate Finance

The Nicholas Institute for Environmental Policy Solutions at Duke University

A leaked World Bank document, due to be presented at the G20 meeting in November, proposes that rich countries eliminate their fossil fuel subsidies and instead contribute the money to climate aid for poor countries to help with green energy and adaptation measures. The paper also said donor countries are unlikely to come up with the money they had pledged to give during 2011 and 2012.

Just five years ago, climate change adaptation was a taboo subject among many environmentalists—as a feature in Earth Island Journal recounts—but things have changed a lot in recent years. Now the Global Adaptation Institute has released a new ranking of how prepared countries are, weighing the likely impacts of climate change in a country against its ability to adapt.

In general, wealthier countries came out on top, with Europe, North America and Australia occupying most of the top 20 spots, and at the bottom were many of the poorest countries that receive the bulk of the world’s development and aid money. Overall, the countries to be hardest hit are also the least able to adapt.

For new adaptation spending, there is a “sweet spot in the middle” for getting the most bang for the buck, investing in countries that are not very wealthy, but also don’t get international aid, said Ian Noble, chief scientist at the Global Adaptation Institute’s council of scientific advisers.

Some countries are already receiving aid for climate change adaptation and emission cuts—but donor countries are not being transparent about their contributions, said a new report from the International Institute for Environment and Development. Norway ranked the highest in transparency, whereas the U.S. was in the middle of the pack, and New Zealand got the lowest score. Of major concern is that donors may be redirecting funds from other development efforts, rather than giving additional aid for climate efforts.

In response to such concerns, the World Bank has launched an Open Data Initiative to allow easier access to more information.

Earlier this month, U.N. Secretary-General Ban Ki-moon also called for transparency on the part of climate aid recipients—in particular, small island nations.

Grim Energy Forecast

The U.S. Energy Information Administration (EIA) released what may be its final International Energy Outlook, a report it has published annually, but that was canceled after the EIA’s budget was slashed 14 percent this year.

Some of its highlights include the projection in its reference scenario that global energy use will rise about 50 percent over the coming quarter-century, with half the increase coming from China and India.

The reference scenario also projects renewables (including hydroelectricity) will be the fastest-growing energy source, growing close to 3 percent a year and more than doubling in production over 25 years. But natural gas, coal, and oil all register significant increases as well in this scenario, and the world’s fossil fuel mix shifts increasingly toward coal.

As Time‘s Bryan Walsh comments on the EIA’s scenario, “If you care about climate change, that’s a pretty grim forecast.”

In the near term, debt crises around the world may slow the growth of economies and energy use—including in India and China—said Harold Gruenspecht, acting administrator of the EIA.

China’s Environmental Movement

As a reminder that not every aspect of cleantech is necessarily clean, in China hundreds of protesters camped outside a solar panel factory they accused of polluting a river. After protesters broke into the facility and destroyed offices and overturned cars, the factory closed. Following the protests, the company, JinkoSolar, did pledge to clean up its operations.

Last month, a mass demonstration about a chemical plant in northeast China led the government to close it and promise to relocate it. An increase in such protests in recent years, said an Agence France-Presse article, marks a rising environmental awareness in China.

Sensor Genius

The Macarthur Foundation announced this year’s batch of “Genius awards.” The youngest winner was 29-year-old Shwetak Patel, an assistant professor in computer science at the University of Washington. He won for work on sensor systems that can allow people to track, among other things, energy and water use from individual appliances. He invented a device that plugs into a socket and, by measuring noise in a house’s circuits, figures out when a fridge is running or a TV is on, and, over time, tracks the consumption from each product.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Ending Oil Tax Breaks Could Pay For New Jobs—and Some May Be Green

The Nicholas Institute for Environmental Policy Solutions at Duke University

President Obama unveiled a new job creation plan in a major speech to Congress last week and follow-up speeches this week, in which he called for an end to tax breaks for oil and gas companies to bring in an additional $32 billion over 10 years to pay for increased government spending.

Earlier this year, Obama called for repealing those same tax breaks to help pay for clean energy.

In his new speeches on jobs, Obama has not dropped the words “energy” or “green”—but some commentators said, reading between the lines, the president is still calling for more green jobs.

As green stimulus programs have approached their end, in recent months there has been controversy over how many green jobs—and of what kinds—were created.

An article featured in the New York Times said there were not as many jobs created as some had hoped, and that the spending helped outsource numerous jobs to places like China. But sources quoted in the article shot back, saying the article, among other things, neglected to mention many of the green jobs companies created in the United States.

A recent study estimated green stimulus spending created 367,000 jobs directly, and also created jobs indirectly that brought the total to one million jobs.

Meanwhile, the oil and gas industries said they can create 1.4 million jobs, if many areas are opened to drilling—but to create that many jobs would require drilling in the Arctic National Wildlife Refuge, off the East and West coasts and Florida’s Gulf coast, and on most federal lands besides national parks.

Solar Probe

One company touted for its green jobs—solar panel manufacturer Solyndra—was probed by Congress this week, since it had received $535 million in federal loan guarantees before declaring bankruptcy this month, triggering an FBI raid.

While some have accused Republicans of grandstanding and using the company’s failure as a way to argue against green stimulus spending, some Democrats who supported the company said they also want answers—such as Henry Waxman, who released a July letter from the company indicating it was in good financial shape.

There are many myths about the situation, however, wrote Brad Plumer of the Washington Post. While there do seem to be irregularities about the way the company got its loan guarantee, Plumer argued its failure does not shoot down the idea of green loan guarantees or cleantech subsidies.

Going Flat

Overall, the U.S. failed to add any additional jobs in August, retail sales were flat, and fears grew of an approaching recession.

The fragile economic situation is having widespread effects on energy, with many forecasters lowering their expectations for oil demand the rest of this year and next year. Nonetheless, Americans may spend a record amount on gasoline this year: $491 billion.

Also, the growth of U.S. ethanol consumption appears to be slowing down, after registering several-year growth spurt, in part because of a drop in gasoline use and because most gasoline is now at the legal limit with 10 percent ethanol blended in.

The economic slowdown is likely taking a bite out of some energy efficiency efforts as well, the Energy Information Administration pointed out. Refrigerator replacements, for example, have dropped over the past several years—meaning people are sticking with older, less efficient fridges.

Two Kinds of Green

Two-thirds of the world’s 500 largest companies now include climate change in their business strategies, according to a survey by the Carbon Disclosure Project—and companies that work to cut their greenhouse emissions also outperformed their competitors on the stock market. Also, more companies reported their efforts to cut emissions have resulted in actual reductions, with the fraction soaring from about one-fifth in 2010 to nearly half in 2011.

Sails, Flowers and Honeycombs

Most pylons for power lines are reminiscent of the 19th-century Eiffel Tower, but a U.K. competition for “pylons of the future” aims to update this piece of critical infrastructure. Energy and climate change minister Chris Huhne announced six finalists in the competition, including a pylon design resembling a cylindrical honeycomb, a curved design similar to the sail-shaped Burj Al Arab hotel in Dubai, and another with a single stem branching out to several arms like a flower’s stamens.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Libya’s Revolution Could Provide Stimulus through Cheaper Oil

The Nicholas Institute for Environmental Policy Solutions at Duke University

After rebel forces swept into Libya’s capital, Tripoli, the country may be able to start to ramp oil production and exports again, which many analysts hope will bring down oil prices.

Libya claims Africa’s largest proven oil reserves, and was producing about 1.6 million barrels a day when the production suddenly dropped to near zero in February. Many analysts said it will take two to three years for Libya’s oil production to recover to previous levels, and by year’s end they may only be producing a quarter to a third as much as before.

Even before rebels had taken over Moammar Gadhafi’s compound, oil companies were preparing to return to the country, which they left months before.

So far, though, the price has been up and down, in part because of anticipation of the outcome of a summit this week, which may result in a new round of quantitative easing, which would likely drive down the value of the dollar.

Trading Leaks

To try to understand how much speculators are driving oil prices, the Commodity Futures Trading Commission has been looking into “excessive speculation.” Earlier this year, five traders were charged with making $50 million off speculation.

Sen. Bernie Sanders, a long-time critic of oil speculation, became frustrated with the pace of investigations and leaked the records of many trades.

Unconventional Contention

While dozens were in jail in Washington, D.C., after protests to oppose the construction of another pipeline carrying tar sands products from Canada to the U.S., a New York Times editorial argued against the pipeline because of high greenhouse gas emissions from tar sands operations. Canadian officials, meanwhile, stepped up lobbying on its behalf.

Producing natural gas from shale deposits using hydraulic fracturing has also been under scrutiny for its greenhouse gas emissions, and now a new study argues Marcellus Shale natural gas has slightly higher emissions than conventional natural gas, but fewer emissions than coal.

West Virginia issued emergency rules to regulate horizontal drilling, which the governor hoped was a first step to more permanent regulations for this drilling.

Dark Days in America, Brighter Elsewhere

With budget woes, spending cuts, and more spending cuts scheduled to be made over the coming years, it appears renewable energy in the U.S. is entering “dark days,” reported GreenBiz.

But renewables are gaining increasing traction elsewhere. In Brazil, in a large power auction, wind emerged as the cheapest source of electricity, beating out natural gas and hydroelectric power. The contracts could lead to the construction of 1.9 gigawatts of new wind farms.

Japan is expected to pass a renewable energy bill that would introduce a feed-in tariff to make renewables more attractive, and set down in law the government’s target of cutting greenhouse gas emissions 25 percent (compared with 1990 levels) by 2020. To cope with the Fukushima disaster, though, Japan has boosted its use of fossil fuels in the short term.

Germany’s national rail company, which is the country’s biggest electricity consumer, is also moving toward renewables, planning to quit fossil fuels by 2050.

The Billionth Car

The future is bright for electric cars, according to a forecast from Pike Research, which said worldwide sales are likely to grow to 5.2 million by 2017, more than 50 times this year’s estimated sales.

However, even then electric cars would make up a tiny fraction of all cars, with more than one billion on the road as of 2010, a new study said. About half of the recent growth in cars has been in China, which has higher efficiency standards than the U.S., but the country is showing little interest in hybrids and electric cars.

Scientists Scrutinized 

Scientists working on climate change have been under scrutiny, with a polar bear researcher being suspended from his job for the U.S. government.

Another researcher came under fire after the “Climategate” leak of e-mails. He was cleared earlier this year in an investigation by his university, and now has been cleared in a second investigation by the National Science Foundation.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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Scrambling to Head Off Power Outages Caused by Heat Waves, Rapid Growth, and Disaster

The Nicholas Institute for Environmental Policy Solutions at Duke University

Texas has suffered through the worst drought and one of the worst heat waves on record, pushing electricity use to a record high in an attempt to cope.

Texas is the state with the largest installed wind capacity, and recently installed wind farms came through to boost the state’s electricity generation just in time. However, even this jump was not enough to meet demand, and four mothballed natural-gas plants will be fired back up. Thermostats that power companies can automatically adjust also helped ease demand.

The state suffered through blackouts earlier this year, and the mere threat of more outages recently has boosted home energy audits and efficiency measures, as well as calls for more renewable energy.

Texas may also beat Massachusetts to the punch, installing America’s first offshore wind farm before the long-delayed (but finally approved) Cape Wind project. The 600-turbine, 3-gigawatt project may have its first turbine up and spinning by year’s end.

Shortages Boost Fossil Fuels

China also had to ration electricity earlier this year, and is facing a power crunch over the next few years as it struggles to keep up with fast-growing demand.

To meet the demand, China’s coal use is soaring, and the country became a net importer of coal in 2009. In July, the country’s coal imports broke a new record, possibly driven by worries of outages, and by the government’s decision to allow power companies to charge more.

Earlier this month, it was reported that China is planning to create a national cap on energy use as part of a plan to limit greenhouse gas emissions.

China is not the only one boosting coal imports. The U.K. is buying increasing amounts of coal from the U.S., and the European Union’s demand for coal may increase.

Likewise, Japan has coped with a drop-off in nuclear power mainly by using more liquefied natural gas, but was able to boost its total electricity generation higher than last year, before the Fukushima disaster.

The increased cost of energy in Japan, said some experts, risks pushing the country into a third “lost decade” of economic stagnation.

Making Fracking Friendlier

The push to produce more natural gas through fracking needs further examination to reduce any environmental risks it could be causing in the U.S., according to a task force organized by U.S. Secretary of Energy Steven Chu. Companies are failing to follow best practices, and the explosive growth of fracking has left regulators behind, the task force said, prompting the need for stronger regulations. However, the panel made few specific recommendations of how to improve the situation, focusing mainly on collecting more data on the effects of fracking and sharing the data publicly.

While there are state regulations on fracking practices, the U.S. Environmental Protection Agency proposed earlier this month its first air pollution standards aimed at cutting smog and greenhouse gas emissions from these wells.

Renewables’ Attraction

While many economies are struggling, large investors are finding renewable energy looks more favorable, with insurance giants such as Allianz and Munich Re putting billions into wind and solar and  big banks funding large installations.

The world’s biggest solar power plant, to be built in California, will use photovoltaics rather than concentrated solar, its developer announced, because of the drop in solar panel prices.

Although U.S. residential solar power has not grown as quickly as in some other countries, such as Germany, do-it-yourself kits and innovative installations are making the investment more attractive.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

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As Markets Dive, Clean Energy Stocks Hit by “Triple Whammy”

The Nicholas Institute for Environmental Policy Solutions at Duke University

The stock market took a beating this week, after the rating agency Standard & Poor’s downgraded U.S. bonds—but clean tech stocks have been falling even faster than the market as a whole.

Shares in clean energy companies have been hit by a “triple whammy”—producing too much capacity for the demand, problems with government debt, and broader risk aversion among investors. As a part of this, clean energy venture capital funding has dropped 44 percent when compared with last year.

Analysts from the global bank HSBC said wind energy stocks are undervalued and their prices could fall more as debt crises in both the United States and European Union stand to cut wind subsidies further. There are more than seven gigawatts of wind projects under construction now—but few planned beyond 2013 because of uncertainty about policies.

Solar stocks were down after many companies reported dismal second-quarter results, as prices on panels fell—but not as fast as the costs of producing them—and as their margins shrank. First Solar, the biggest solar panel manufacturer outside of China, boosted production but suffered a large drop in profits—and their share price. Suntech, the biggest manufacturer, also saw its stock fall, hitting a one-year low.

But some analysts say renewables stocks are bottoming out, and are set to rise again.

Adjusting to No Nukes

Germany decided to phase out nuclear power within 10 years and rely more heavily on renewables, and the country’s utilities are scrambling to adjust. E.ON, the world’s biggest utility in terms of sales, suffered its first-ever quarterly loss and is laying off 11,000 workers as it aims to boost its spending on renewables.

Another utility, RWE, is also selling off assets to cope with poor performance—but is planning to stick with its renewables investments.

Making the Military Green

The U.S. military is the single biggest user of oil in the world, and has been warned by analysts its dependence is a security threat. Now the U.S. Army has formed a new renewables office that may spend $7 billion over the next decade on renewable and alternative energy power.

Although the military has a target of using 25 percent renewable energy by 2025, many installations lack the expertise to move forward quickly enough, said the U.S. Department of Defense, and the new office aims to fill that gap.

Meanwhile, units within the mega-corporations Boeing and Siemens have teamed up to pursue military contracts for smart-grid technologies, which the military could develop and bring down the costs, helping them reach the market later.

Risky Business

With oil prices high and political uncertainty in many oil-exporting countries, the U.S. faces near-record energy security risks, according to a new U.S. Chamber of Commerce report. In 2010, their energy risk index is as high, as in the late 1970s and early 1980s, and near the record high of 2008. The Chamber predicts the risk level will remain high for another 25 years.

With gloomy economic prospects, the International Energy Agency (IEA), the U.S. Energy Information Administration, and the Organization of Petroleum Exporting Countries all agreed oil demand later this year is likely to be less than they had thought.

With Saudi Arabia boosting its production to the highest level in 30 years, oil prices have fallen a bit in recent weeks, but this is largely because of weak economies, the IEA said.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.