The Nicholas Institute for Environmental Policy Solutions at Duke University
The link between climate change and sea level rise, already well established, has been reinforced by recent studies. But sea level rise also made headlines in a more unusual way recently after some North Carolina legislators introduced a bill that would call into question some of the scientific projections related to sea level rise in the state. Specifically, their draft legislation would “prohibit state and local government agencies from using projections of accelerated sea level rise—due mainly to global warming and the melting of the polar ice caps—when forming coastal development policies and regulations.”
The document has drawn criticism across the world, even finding a spot on the popular spoof television show The Colbert Report. Duke University’s Bill Chameides characterized it as an attempt to “legislate away” what is possibly “the greatest threat that climate change poses to North Carolina.” The Senate’s Agriculture/Environment/Natural Resources Committee is scheduled to hear the bill today.
Elsewhere, rising temperatures are being blamed for the transformation of more shrubs into trees in the northwestern Eurasian tundra. According to a Reuters report, the advancing of such forests could negatively impact the climate—increasing warming by as much as 3.6 degrees Fahrenheit. And in other remote parts of the Arctic, scientists have recorded what’s been labeled a climate milestone—carbon dioxide levels above the level of 400 parts per million. It’s a measurement some scientists believe hasn’t been reached in roughly 800,000 years.
Climate’s Effect on Energy
Warming waters and reduced river flows in the United States and Europe could have a significant impact on power generation, according to a new study in the journal Nature Climate Change. Rising temperatures, the study said, would affect coal and nuclear plants dependent on rivers for cooling during production. In the U.S. alone, capacity could fall as much as 16 percent on warmer days between 2031 and 2060.
While coal use dropped to 34 percent in March—its lowest level since January 1973—so did the U.S. utility industry’s confidence in the energy source. In fact, in a survey of utility industry executives, 56 percent said coal had a future as a fuel source, down from 82 percent in 2010. Confidence in renewables, however, was higher at 96 percent.
Or maybe executives won’t have to choose. One new technology, out this week, claims to be equipped to produce cost-effective electric power with little to no emissions from any fuel source.
In Japan, solar makers are betting a new feed-in tariff could help the country boost power generation from solar past its current 1 percent. The tariff program is set to launch next month. Meanwhile, in the U.K. the use of solar and wind power as a source of secondary income for farmers is gaining popularity. The move, according to the National Farmers’ Union, could be a major contributor to profitable farming.
Emission Stunners
Despite congressional deadlock, new International Energy Administration (IEA) data indicates the U.S. leads the world in CO2 emission cuts since 2006. The IEA cited lower oil use and a shift from coal to gas as factors in the 7.7 percent cut.
Negotiations for a new climate treaty that would help to reduce emissions worldwide fizzled in Bonn, Germany recently. The deadlock was a result of disputes among rich and poor countries over technicalities—namely how to divide the burden of emissions cuts between developed and developing nations.
Cities are the solution to addressing climate change, according to a new infographic by C40 cities. Cities across the world are creating plans to reduce emissions. Where are climate change plans more prevalent? In places prone to natural disasters, increasing temperatures and rainfall variability such as Latin America. In fact, 95 percent of Latin American cities are planning for climate change. In New York, rooftops are being transformed—speckled with solar panels, coated with white paint and even plants—to make them more climate-friendly. Cincinnati, meanwhile, is expected to extend a 100 percent green electricity option to customers this month.
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.
The Nicholas Institute for Environmental Policy Solutions at Duke University
Editor’s Note: The Climate Post will take a break from circulation next week. It will return May 10.
Nearing record highs in March, gasoline prices have dropped for most of April across the U.S. and on average are cheaper than they were a year ago. As pump prices ease, federal prosecutors are turning up the heat in the BP oil spill case, arresting an ex-engineer accused of obstructing justice by deleting potentially damaging e-mails. And as the feds begin arrests, local reactions in the Gulf among individuals and businesses harmed by the spill are mixed, with oyster leaseholders “overjoyed” by the BP settlement, while shrimp processors are challenging some features of the deal. While watermen and women digest the settlement, Gulf of Mexico fish near the spill—such as grouper and red snapper—are showing telltale signs of sickness associated with oil exposure.
Across the world, a new pact by Russia and Italy has opened the Arctic to drilling. Some say an Arctic oil rush could damage ecosystems; others worry about the special challenges an oil spill in the Arctic would pose. Meanwhile, a new study says climate change is posing “significant challenges to the survival of some of the Arctic’s unique marine species.” And the European Space Agency’s CryoSat satellite is providing data on Arctic ice thickness—offering a more complete view of rapidly melting ice.
Climate Change Threatens to Alter Agricultural Landscape
Last weekend marked Earth Day, and some critics say the environmental movement has lost its mojo, while others were critical of President Obama’s Earth Day address after he failed to directly mention climate change. Later in the week, however, President Obama told Rolling Stone climate change will be a central feature of the presidential campaign. “I suspect that over the next six months, this is going to be a debate that will become part of the campaign, and I will be very clear in voicing my belief that we’re going to have to take further steps to deal with climate change in a serious way,” he said.
Beyond climate politics, a warming world will increase the cost of corn, according to a new study. The study warns that unless farmers plant more heat-tolerant varieties, corn prices will be subject to greater volatility. Another study suggests that scrapping corn ethanol subsidies and converting much of corn country to pasture for management-intensive grazing would reduce agricultural land-use emissions by 36 percent. Meanwhile, corn growers are speaking out about the “grave threat” climate change poses to their livelihoods.
While Japan’s Fukushima nuclear disaster is still fresh in many people’s minds, Ukraine recognized the 26-year anniversary of the Chernobyl explosion this week by unveiling a new, safer shelter over the damaged reactor. Others, such as Britain, continue to debate building new nuclear facilities.
Renewables Gaining Momentum with Farmers
Renewable energy makes economic sense, at least in Virginia, according to a new study. Across the country, Americans are split on whether to get rid of U.S. subsidies—with 47 percent favoring the idea.
More and more farmers are turning to renewables and earning the name “new green pioneers,” harvesting fuel cells, biogas, cogeneration and solar arrays to lower costs. While farmers embrace alternative energy despite time and risks, the solar energy industry has created a new plastic film that sprays on like an adhesive, enabling solar power to be harvested inside buildings and not just by way of conventional rooftop panels. Yet, the discovery of Native American bone fragments is throwing the large Genesis solar project into question.
Wind is not doing much better than solar, with a measure to extend production tax credits stalled in Congress despite bipartisan support. Uncertainty as to whether Congress will extend the credit is making it more difficult for developers to advance and fund wind projects. Offshore, the U.S. and Great Britain have announced plans to develop floating wind turbines in deep water where conventional technology cannot reach. Because the turbines do not require deep seabed installation, the technology is expected to be cheaper than current offshore wind projects. Despite the vagaries of renewable power, UN chief Ban Ki-moon called on nations to double the amount of power produced from renewable sources by 2030.
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.
The Nicholas Institute for Environmental Policy Solutions at Duke University
Washington, D.C.’s famed cherry blossoms—now celebrating their centennial—decided to spring one on visitors, peaking well before the arrival of most Cherry Blossom Festival–goers. Spring’s forward leap is also causing coupling confusion among flowers and pollinators.
Above-average temperatures are responsible for these early blooms, marking this the fourth warmest winter on record, according to the National Oceanic and Atmospheric Administration (NOAA). NOAA predicts the warm streak will continue for the next three months—particularly in the already steamy southern states of Louisiana, Alabama, and Mississippi. Several newly released studies make the connection between this extreme weather and man-made heat-trapping pollution, says blogger Theo Spencer. Updated records of global temperatures, meanwhile, indicate the world has warmed by around 0.75 Celsius since 1900.
These warming temperatures may also be putting some five million people in the United States at risk for increased coastal flooding, according to a new Climate Central study. South Florida, southern Louisiana, and the Carolinas top the list of states with the most land to lose if sea level rises one meter. By the end of the century rising seas could cost near $2 trillion if temperatures keep rising. Nearly $1.4 trillion in costs could be avoided, Reuters reports, if temperature increases were limited to near 2 degrees Celsius.
And with the spring thaw comes reports of the ongoing melting of Arctic sea ice, opening new shipping lanes in the harsh region. One agency is looking for ways to use underwater sensors to handle the increased activity without harming the environment.
Cheap Natural Gas, Costly Crude
Mild temperatures are also driving natural gas futures lower, with prices hovering around their ten-year low. The dip in natural gas prices is bad news for investors, but good for farmers who will get an extra boost in the form of low fertilizer prices, says Forbes.
While the shale boom and warmer Eastern climes are causing natural gas prices to plummet, the upward march at the gasoline pump continues unabated. According to AAA, gasoline is over $4 a gallon in seven states—Alaska, California, Connecticut, Hawaii, Illinois, New York and Washington—as well as the District of Columbia. A statistical analysis of 36 years of monthly gas prices and domestic oil production by the Associated Press revealed there is no link between U.S. oil production and gas prices at the pump. Meanwhile a new survey finds a number of academic economists say market forces, not government policy, account for changes in gasoline prices.
The high prices, up more than 17 percent this year, are taking a toll on consumer confidence, nudging sales of electric motorcycles, raising the price of hybrids and causing an uneasiness in the markets.
President’s Energy Tour
A new poll suggests persistently high gasoline prices are eroding President Obama’s public approval numbers. The White House points to new Energy Information Administration data to say the president is doing more than enough to produce energy on federal lands, while others—citing the same data—claim he is doing too little.
To underscore his efforts, the president set out on a four state, two-day tour that wraps up today in Cushing, Okla. Politico reports the President will sign a directive expediting permits for the southern portion of the Keystone XL pipeline in Cushing—where the southern pipeline is slated to begin. Midwest oil hits a bottleneck in Cushing on its way to the Gulf of Mexico, according to CNN.
Signing the permit is a move sure to be unpopular with environmental groups and Obama faces a taste of green anger today in Columbus, Ohio, where he’s concluding his tour with an address at Ohio State University. Students, including some former Obama campaign workers, are planning a rally to push the president away from fossil fuels, according to 350.org. However, a new a Gallup poll released today shows 57 percent of Americans support the Keystone pipeline
In Cushing, Obama will also be talking about his commitment to domestic energy production—dubbed the “all of the above” energy strategy. Author Bill McKibben blasts this strategy: “Burning all the oil you can and then putting up a solar panel is like drinking six martinis at lunch and then downing a VitaminWater.” Others oppose it for different reasons: the National Review’s Jim Geraghty says it “rejects many options,” while Allen Schaeffer of the Diesel Technology Forum worries about policies “that clearly prioritize favored energy sources over other energy sources.”
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.
The Nicholas Institute for Environmental Policy Solutions at Duke University
Editor’s Note: This is the last edition of The Climate Post with writer Mason Inman. Watch for the Post’s return March 22 with a new writer, the Nicholas Institute’s Director of Strategy and Operations, Jan Mazurek.
After public pressure, Chicago will shut two aging coal-fired power plants, and the owner of one of the power plants, Midwest Generation, may shut its other four coal plants in Illinois. Since the start of 2010, more than 100 coal plants have been slated for early retirement.
A major reason for coal plants shutting has been public opposition to pollution from coal. Also, looming requirements by the U.S. Environmental Protection Agency (EPA) for stringent pollution controls could take a toll on the coal industry, while boosting the market for pollution control devices. One huge coal plant in New Mexico lost a legal battle with the EPA to avoid having to install a more effective type of pollution-control equipment.
But what really has the coal industry “frightened” is cheap natural gas, the result of a boom in hydraulic fracturing, or fracking, of shale deposits. But demand for natural gas may soon grow, since more natural gas vehicles are already in the works, and an announcement by President Obama that he’ll expand tax credits for alternative vehicles to include those powered by hydrogen and natural gas.
How Clean is the Clean Energy Standard?
Meanwhile, Sen. Jeff Bingaman introduced the Clean Energy Standard Act of 2012, which would force the largest utilities to meet targets starting in 2015 that by 2035 would ramp up to require 84 percent clean energy—defined as sources that create less greenhouse gases than modern coal plants. If enacted, which analysts rated as unlikely, the law would benefit natural gas, at least initially, but several renewable energy groups endorsed the bill.
However, last month a study led by former Microsoft executive Nathan Myhrvold found that switching from coal to gas would lead to only a slight drop in warming by the end of the century, so achieving “substantial reductions in temperatures” compared with use of coal would require “rapid and massive deployment” of very low-emissions energy such as solar and wind.
This fits with an analysis last year from the National Center for Atmospheric Research, whose lead researcher concluded switching to natural gas “would do little to help solve the climate problem.” Such findings led activist Bill McKibben to argue natural gas is not a “bridge fuel,” but rather “a rickety pier extending indefinitely out into a hotter future.”
Meanwhile, plans are under way to expand exports of U.S. coal with new shipping terminals in the Pacific Northwest and a “tremendous increase” in capacity at a Louisiana port. At CERAWeek, a major meeting for the oil and gas industry, the most popular discussion about U.S. natural gas is the “prospect of exporting it,” an issue Deputy Energy Secretary Daniel Poneman said the administration is “looking at closely.”
China Puts on the Brakes
The growth of China’s coal production is expected to slow down—part of a general slowing for the country in 2012.
In the annual meeting of China’s parliament, Chinese Premier Wen Jiabao announced a lower target for economic growth—7.5 percent, the lowest in seven years—and would shift from an export-focused economy to instead emphasize domestic consumption.
Wen also said the country will “put an end to blind expansion in industries such as solar energy and wind power”—possibly referring to oversupplies of wind turbines and solar panels. China’s wind industry has exploded from six turbine manufacturers in 2004 to more than 100 today, leading to manufacturing capacity that’s larger than the demand and a large number of projects awaiting connections.
China had “imbalanced, uncoordinated, and unsustainable development,” Wen said. The country had missed half its major targets for energy conservation and environmental protection, largely because they “have not transformed the economic development model,” said Zhang Ping, minister of the National Development and Reform Commission.
The government also announced it will create stricter laws for air pollution, and an official said two-thirds of Chinese cities would likely fail to meet the new standard.
Hockey Stick in a Knife-Fight
Climate researcher Michael Mann has been under attack by Virginia’s Attorney General, Kenneth Cuccinelli, who has been trying to force Mann’s former employer, the University of Virginia, to release documents on Mann’s work so he could “determine whether or not fraud had been committed.” But the Virginia Supreme Court turned down Cuccinelli’s request, which the Union of Concerned Scientists called “a victory for science in Virginia.”
Mann has become a lightning rod for his research on ancient climates and for creating the famous “hockey stick” graph showing rising temperatures in recent decades—a tale recounted in his new book, The Hockey Stick and the Climate Wars.
He said scientists are in a tough position, because they’re in a “knife-fight” with climate change skeptics, but scientists “can’t play by the rules of knife-fighting ourselves.”
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.
The Nicholas Institute for Environmental Policy Solutions at Duke University
Leaked documents purportedly from the nonprofit Heartland Institute include efforts to cast doubt on climate science. The site DeSmog Blog received the documents from an anonymous informant calling himself “Heartland Insider.”
The Heartland Institute gave mixed responses to the documents, calling them both “stolen” and “fake,” but only specifically calling one document, titled “2012 Heartland Climate Strategy” a “total fake.”
Nonetheless Think Progress confirmed that two of the main projects mentioned in the documents are real, including an effort to develop curricula for K-12 education that would cast doubt on climate science.
New York Times blogger Andrew Revkin said the Heritage Institute is using a double standard in being outraged about this leak, while celebrating the “Climategate” leak of emails from researchers.
Climate researcher Judith Curry of Georgia Tech—who has been branded a “heretic” by her colleagues for raising questions such whether there’s actually a consensus on climate change—said one of the most interesting things about the Heartland Institute is that it has been “so effective with so little funds.”
Last month, the Copenhagen Consensus Centre, directed by well-known climate skeptic Bjørn Lomborg, announced it will shut because the Danish government cut its funding.
New Budget to Boost “Clean Sources” of Energy
With the announcement of the Obama administration’s proposed 2013 budget, the President called again for an end to $40 billion in tax breaks for oil and gas companies over the next decade. However The Hill said this is “largely a political statement” because Congress is unlikely to support the end of these tax breaks.
The budget request calls for doubling the share of electricity from “clean sources.” It would increase funding for renewable energy, nuclear power, and technologies to reduce emissions from coal, including a 29 percent increase for the Office of Energy Efficiency and Renewable Energy, bringing its budget to $2.33 billion.
Meanwhile, U.S. regulators approved plans for a new nuclear power plant for the first time in 30 years, to be built in Georgia. Work is proceeding, with hopes of having the reactors—a new type never used in the U.S.—running by 2016, but the plant is encountering opposition.
No Guarantees
The proposed U.S. budget includes no money for the U.S. Department of Energy’s loan guarantee program, which gave funding to now-bankrupt solar panel manufacturer Solyndra.
Despite the uproar about Solyndra, an audit of the loan guarantee program found that the investments were actually safer than Congress had expected. Nonetheless, the audit recommended changes to loan guarantees to improve management and oversight.
Secretary of Energy Steven Chu warned more recipients of loan guarantees may go bust, but that they have always known there are “inherent risks in backing innovative technologies.”
Feed-In Tariffs’ Fate
Feed-in tariffs and other subsidies for renewable energy are in turmoil as countries rearrange their systems. The U.K. is changing to a dynamic tariff that adjusts as the cost of solar panels falls, to avoid a bubble in installations and ballooning costs for the program.
Germany is expected to cut its solar feed-in tariff—and some analysts said the cuts could be deeper than expected. Two different proposals from the Ministry of the Environment could both hurt the industry; in retaliation, three German states reportedly said they’d block these measures.
Taiwan is also lowering its solar feed-in tariff, and the U.K. is proposing to do the same for small wind turbines.
The United States has lagged behind Europe and East Asia in implementing feed-in tariffs, but two new places in the U.S. are considering starting such programs: the state of Iowa and the city of Palo Alto, in California’s Silicon Valley.
Weather Trumps Turbines
A headline about a new study in the U.K.’s Daily Mail reading “Wind farms can actually INCREASE climate change…” received a lot of attention, but the Guardian argued the claim has now grown into a myth.
The research did show that wind farms could affect microclimates, and there are reasons to think they could have beneficial effects on crops.
But even if turbines can affect microclimates, a new study suggested powerful hurricanes could topple offshore wind farms planned along the United States’ Atlantic and Gulf Coasts.
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.
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.
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.
The Nicholas Institute for Environmental Policy Solutions at Duke University
Solar panel manufacturer Solyndra, which recently filed for bankruptcy, got special treatment from the Obama administration, some have alleged, since the company’s $535 million in federally guaranteed loans had much lower interest rates than those of other green energy companies, according to an investigative report.
The FBI raided Solyndra’s office, although it would not comment on the reason. The company shut without giving notice to its employees and contractors, which many large companies are legally required to do.
However, Lewis Milford of the Clean Energy Group argued critics are inconsistent in highlighting Solyndra’s failure, since there are many examples of failure in government projects—and that a high rate of failure is inevitable in innovative fields. Overall, the Loan Guarantee Program has performed well, and Solyndra’s failure is not a reason to abandon it, Forbes argued.
Solyndra is only one of many solar energy companies around the world struggling recently, due in large part to rising costs of materials and weaker-than-expected demand for panels, which have led to a sharp rise in mergers and acquisitions compared with last year.
Germany has long been a solar powerhouse, but one of its companies—SolarWorld—is also having trouble, and is shutting down factories in Germany and the U.S. and consolidating manufacturing. Another German solar company, Solon, is shutting an Arizona plant and laying off workers.
All this activity “is Darwinism at work in business,” said an executive of manufacturer Abound Solar.
Solar at Scale
Nonetheless, large solar projects are moving ahead. The U.S. has offered a loan guarantee for putting solar panels on military housing, which could double the number of residential rooftop arrays in the country.
With solar panel costs falling, the European Photovoltaic Industry Association said, solar could be competitive with conventional energy within a couple of years in some markets, and across Europe by 2020.
Also, a new projection from the International Energy Agency said in 50 years’ time, solar energy could provide more than half the world’s power.
Spinning up Fresh Debate
Iran joined the list of nuclear countries by connecting its first nuclear power plant to the grid last week, according to the country’s official media.
Also, the International Atomic Energy Agency reported Iran began running upgraded centrifuges. Iran also offered to allow inspectors “full supervision” of its nuclear activities for the next five years, in exchange for lifting sanctions.
Iran has reportedly tested weapons systems, which some experts said cast doubt on Iran’s claim that its nuclear program is limited to producing electricity. But arms expert Mark Fitzpatrick of the International Institute for Strategic Studies said that without proof, it is too soon to jump to the conclusion Iran is pursuing nuclear weapons. Nonetheless, in discussions at the United Nations, several countries kept pressure on Iran to suspend uranium enrichment until a monitoring deal is worked out.
Storm Brewing Over Clouds
A paper in the journal Remote Sensing has generated a lot of thunder, since the authors argued their study of clouds suggested the climate is not as sensitive to greenhouse gas emissions as had been thought. But many other experts have poked holes in the study, with one arguing the controversial study’s model fails to conserve energy, so it violates a basic principle of physics. The journal’s editor resigned over the controversy.
Energetic Ghost Town
To test out new energy technologies in conditions between the overly controlled confines of the lab and the all-too-messy real world, a company is planning to erect in New Mexico a 20-square-mile, $200-million “ghost town” outfitted with real buildings—but no people.
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.
The Nicholas Institute for Environmental Policy Solutions at Duke University
Hundreds of protesters—including famed climate researcher James Hansen—have been arrested in protests in front of the White House over the past two weeks, in an attempt to stop the construction of a pipeline from Canada to Texas to carry diluted tar sands to Gulf Coast refineries, mainly over concerns about greenhouse gas emissions and risks of tainting a nearby water aquifer.
The U.S. State Department has been weighing whether to approve the pipeline, and under what conditions. In a major step last week, the State Department published its final environmental review, which said the pipeline would have “no significant impact to most resources” along its path, assuming “normal operation.”
U.S. Secretary of Energy Steven Chu said energy security concerns could help the pipeline win approval on the grounds that importing oil from Canada is preferable to imports from the Middle East—an argument echoed in a Washington Post editorial by veteran business reporter Robert Samuelson.
Shale Gas Shakedown
The Marcellus shale deposits—so far, the biggest site for hydraulic fracturing, or fracking— may contain far less gas than recently projected by the U.S. Energy Information Administration (EIA), according to a new assessment by the U.S. Geological Survey.
Although the new estimate is higher than the U.S. Geological Survey’s own 2002 estimate, it is much lower than an estimate EIA published earlier this year. In response, the EIA said it will downgrade their next estimate—perhaps by as much as 80 percent. But the Washington Post reports there may be more to these numbers.
In light of allegations that petroleum companies have overstated how much gas they could get out of shale deposits, the New York State Attorney’s Office is investigating whether companies “overbooked” reserves. Earlier this summer, federal lawmakers called on the Securities and Exchange Commission, the EIA and the Government Accountability Office to investigate industry estimates.
Rise and Fall of Solar, Wind
China achieved a meteoric rise in wind power over the past five years, and last year pulled ahead of the U.S. to become the country with the largest installed capacity of wind turbines.
At the same time, the growth of China’s wind industry is slowing down due to over capacity and withdrawal of subsidies, among other causes. And some of China’s largest wind turbine manufacturers reported falling profits due to fierce competition, as has been seen in the solar panel industry.
Solar manufacturers in the U.S. and Europe have been struggling to compete with panels from Asia, China especially. Two weeks ago, Evergreen declared bankruptcy, followed by Solyndra this week. Both companies had been touted by the Obama administration and local officials as models for the green economy. New York-based SpectraWatt, a solar spin-out from computer chip manufacturer Intel, also filed for bankruptcy.
Meanwhile, China is pushing ahead with plans to greatly expand their installations of solar power, doubling their targeted installations over the next decade. By 2015, they aim to have 3 gigawatts installed—10 times as much as they had last year—and by 2020, 50 gigawatts.
Despite such difficulties in the market, the United States’ net exports of solar power products more than doubled in 2010 compared with the year before, reaching $1.8 billion. Total U.S. exports of solar products rose 83 percent, to $5.6 billion, in part because Asia is importing equipment for manufacturing solar panels.
Burying the Problem
The first industrial-scale carbon capture and storage (CCS) plant in the U.S. broke ground in Illinois, with the aim of capturing emissions from a large corn ethanol plant. Work on the plant began just after a U.S. utility canceled its plan for CCS on a West Virginia coal plant.
In Canada, a CCS plant for capturing emissions from tar sands processing may move ahead after Canada’s government recently agreed to underwrite two-thirds of the $1.35-billion project’s cost.
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.
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.
