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The Future For Clean Energy In Africa

Baker & McKenzie Scott Brodsky , Paul Curnow , Marc Fèvre , Mohamed A. Ghannam , Kamal Nasrollah and James P. O’Brien Africa June 25 2013 To view this article you need a PDF viewer such as Adobe Reader . http://www.lexology.com/library/detail.aspx?g=d8832ae6-1a42-4071-a0c5-296d69993f12&utm_source=lexology+daily+newsfeed&utm_medium=html+email+-+body+-+general+section&utm_campaign=lexology+subscriber+daily+feed&utm_content=lexology+daily+newsfeed+2013-06-27&utm_term= Continue reading

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Carbon Trading Boosters

The world’s largest carbon emitter kicked off a pilot emissions trading scheme in the south eastern city of Shenzhen last week even as the elusive search for a fix to Europe’s emissions system continued. This is the first of the seven test markets that China hopes to roll out soon, and the smallest, with covered emission estimated at 32MTCO2e/year from 635 entities. The buyers of allowances on June 18 – the day that trading officially began – included PetroChina and Hanergy Holding Group, at prices which were about a fifth less than European Union permits on the London’s ICE Futures Europe exchange. Trading is likely to be muted during the year, but some spurt in volumes and price could occur close to the compliance date, which, according to Bloomberg New Energy Finance analysts, would be in early 2014. There is also some talk of linkages of the Shenzhen scheme with other markets, but these discussions are at an early stage. Meanwhile, there was some straight talk about the European carbon market from the executive director of the International Energy Agency, Maria Van der Hoeven. In an interview in Russia, she said the EU carbon market “doesn’t work anymore.” The attempts to make it work moved another step ahead when the environment committee of the European Parliament supported the backloading proposal. There is now a higher likelihood of it being approved in the plenary vote on July 3. Back in China, there was an interesting proposal from the city of Shijiazhuang – the capital of steel-producing Hebei province surrounding Beijing – that would control some emissions immediately. It plans to restrict the number of new vehicles to 100,000 this year, and limit cars per household to two. This quota will be cut to 90,000 in 2015, with a lottery being used to determine who can buy the cars. The Chinese government was also in the news for promising support to its solar industry, urging lenders to ease financing and pushing for industry consolidation. In an online statement, the State Council said that China must aid the industry’s “healthy development” through the current sluggish global market and slow domestic demand. It will encourage mergers and acquisitions among solar companies and curb blind expansion of capacity. It will also control the expansion of energy-intensive production to curb pollution. Chinese solar companies like Trina Solar and JinkoSolar, singed by duties on solar exports to Europe and the US, are moving production overseas. The target countries include South Africa, Turkey and Portugal. There is also another reason for production to move out of China: rising costs. US-based solar manufacturer Silevo, which produces cells at a 32MW factory in China, is in the process of financing a 200MW cell and module plant in the US. “Water and electricity in China are much more expensive than in the US, and the labour cost is very close. In terms of production cost, it’s very comparable to North America,” said chief executive officer Zheng Xu. There were two important financing announcements last week. PensionDanmark pledged $US200 million in funding for a wind farm in Nantucket Sound, in the first committed investment in Cape Wind Associates’ proposed 468MW offshore park. This will be the first offshore wind park in the US and has been 12-years in the making. The investment is conditional on a final decision this year to construct the farm. In addition to pension funds, the renewable energy sector could also see some Islamic financing. Activ Solar is tapping into that source to expand into markets in the Middle East. The company’s CEO said the predictable and steady revenue streams of solar plants could be a good fit for the growing Islamic financing market. EU carbon European carbon slipped last week after lawmakers voted – by only a small majority – in favour of a compromise plan to fix the region’s oversupplied market. European Union allowances (EUAs) for December 2013 lost 8.2 per cent over the week to close at €4.38/tonne on Friday, compared with €4.77/t at the end of the previous week. EUAs were trading as high as €4.90/t as the market opened last week. They dropped on Wednesday to close at €4.39/t after the Environment Committee of the European Parliament (ENVI) passed an amended version of the European Commission’s proposal to delay auctions of some carbon permits. The committee carried the main compromise amendments with 38 out of 69 votes. This was the same result as in an ENVI vote in February on the original backloading proposal. The bearish price reaction on Wednesday may imply that market participants required a more clear-cut signal from ENVI to justify bullish bets. UN Certified Emission Reduction credits (CERs) for December 2013 gained just €0.01/t last week to close at €0.47/t. This article was originally published by Bloomberg New Energy Finance. Read more: http://www.businesss…s#ixzz2XJdVSgQo Continue reading

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Burning Issues: Is Biomass A Viable Energy Alternative?

by Kim Bryan 24 June 2013 It is clear that for biomass to be part of a zero-carbon energy future, strict safeguards need to be in place to ensure that only sustainable sourcing occurs. Kim Bryan Can biomass help meet the UK’s energy demands? The Centre for Alternative Technology ’s Kim Bryan investigates… As the world’s supply of fossil fuels dwindles, the search for alternative energy sources is vital. Biomass is one such energy source that is being touted as a good alternative to conventional fossil fuels. However, it is not without considerable opposition from those who argue that biomass could do more harm than good in the battle to reduce greenhouse gas emissions. Biomass is energy created from the burning of biological materials such as plants and non-living things such as biodegradable waste. Anything that is alive or was alive a short time ago can be categorised under biomass, therefore trees, crops, animal and plant waste are all included. The attraction of biomass in the fight against climate change is that it is carbon neutral. Unlike the fossil fuels, oil, gas and coal, which when burnt add to the net amount of carbon dioxide in the atmosphere, the CO 2 that biomass produces when ignited is absorbed from the atmosphere by the crops used to make it, and so the net atmospheric amount is not increased. Currently in the UK there are 20 dedicated biomass power plants that are producing a total of 1,092MW from a variety of sources including poultry waste and woody biomass. There are around another 30 at planning stage with a combined capacity of 5,000MW. Given that 1MW can sustain 1,000 homes for an hour, that is a significant contribution to the UK energy mix. However like many energy sources, it is also controversial, as there are both advantages and disadvantages. Potential impacts of biomass In recent years numerous organisations have issued warnings about the potential impacts of the mass production of biomass. UK-based organisation Biofuelwatch is currently protesting against plans by Drax power station in Yorkshire to convert half of their coal-fired power station to run on biomass. Whilst in practice this sounds like a green idea, “highly biodiverse forests in North America are already being clear cut to make wood pellets for UK power stations. This will only get worse as the industry expands.” Biofuelwatch say that communities in South Africa are already losing access to land and water because biodiverse grasslands are being destroyed for monoculture tree plantations, some of which supply Drax. Drax has the capability to produce 12.5 per cent of its output from renewable and sustainable biomass – the equivalent output of over 700 wind turbines. Drax says that ‘burning biomass at this level saves over two and a half million tonnes of CO 2 each year.’ Wood has always served as a fuel source for fires and ovens; however, technological advances mean that burning biomass can produce energy for everything from a power plant to an engine. Advantages The advantages are that burning biomass is said to be carbon neutral, in that by growing and then burning it there is no creation of additional carbon monoxide. Biomass products are abundant and renewable; since they come from living sources and life is cyclical, these products potentially never run out, so long as there is something living on earth and someone is there to turn that living thing’s components and waste products into energy. Another benefit of biomass is that we can use waste and thus reduce landfill to produce energy. However there are concerns that incinerating household waste depresses recycling and wastes resources, releases greenhouse gasses, and is often forced through against strong public opposition. Instead of promoting zero waste, incinerators rely on material for feedstock that should be recycled or composted. Incinerators create toxic emissions and hazardous ash, and therefore pose significant health risks. ‘Strict safeguards need to be in place’ It is clear that for biomass to be part of a zero-carbon energy future, strict safeguards need to be in place to ensure that only sustainable sourcing occurs. Otherwise, as the Centre for Alternative Technology’s Freya Stanley-Price points out: “We are getting rid of one environmental problem and replacing it with another.” Friends of the Earth suggest a number of measures that include keeping the scale of biomass to the size of domestically available resources, using anaerobic digestion for the treatment of food and animal waste and focusing biomass use close to production. In addition, there must be a joined-up, integrated approach to energy planning that considers the most efficient use of any energy generated and looks forward to managing energy demand. “There are many things that have to be carefully considered and weighed when determining if biomass energy is a viable alternative energy source,” Stanley-Price says. “In a zero-carbon future we must make sustainable use of trees as fuel, and replant them as we harvest them – creating a continuous carbon cycle. Growing our own fuel also creates jobs and is ideal for strong, local economies.” Kim Bryan Media Officer Centre for Alternative Technology www.cat.org.uk [This article was originally published on 10 th June 2013 as part of Science Omega Review UK 02] Read more: http://www.scienceom…s#ixzz2XEj6LkRu Continue reading

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