Tag Archives: energy
Jirau : The World’s Largest Renewable CDM Project Obtains Registration At The United Nations
WEBWIRE – Monday, May 27, 2013 The United Nations Framework Convention on Climate Change (UNFCCC) registered the Jirau Hydropower Plant on May 17, 2013 under the Clean Development Mechanism (CDM). The renewable energy produced by Jirau will allow a reduction of up to six million tons of CO2 emissions annually as it will reduce the need to dispatch (or build new) fossil fueled power plants. The Jirau hydropower plant is the largest renewable energy plant ever registered and it demonstrates that the Clean Development Mechanism, when applied in tandem with national greenhouse gas (GHG) mitigation and enabling policies, is capable of promoting major infrastructure projects. Gérard Mestrallet, Chairman and Chief Executive Officer of GDF SUEZ declared: “The Jirau CDM project stands as a key element in Brazil’s efforts to promote sustainable economic growth based on renewable power. This recognition by the United Nations illustrates the strong commitment of GDF SUEZ to develop renewable energy around the world and in Brazil.” The Jirau project is a key element in Brazil’s National Policy on Climate Change, which promotes expansion based on hydroelectricity and other renewable technologies, such as wind and biomass. This policy encourages a balance between low GHG emissions, energy security, environmental protection and social development. GDF SUEZ has been a pioneer of CDM since its participation as a founding member of the Prototype Carbon Fund in 2001 and is actively using the program to promote clean energy investments. To date, the Group has registered a portfolio of 15 CDM projects in Asia, Africa and Latin America, using wind, water, geothermal and biomass as sustainable sources of renewable energy. The CDM registration is effective as of December 26, 2012, which enables the project to sell its credits to the European emission trading scheme (EU ETS). About the Jirau Project The Jirau project, which is under construction on the Madeira River in the state of Rondônia in Brazil, is currently jointly owned by GDF SUEZ (60%)(1), Eletrosul (20%) and Chesf (20%). Designed as a run-of-the-river facility with a small reservoir, the plant will have an installed capacity of 3,750 MW and potential to meet the electricity demand of 10 million Brazilian households. The commissioning of the project is expected to start in mid 2013. About CDM The CDM was set up by the Kyoto Protocol as one of the flexibility mechanisms to complement emissions trading between developed countries that accepted targets as listed under Annex 1 of the Protocol(2). Carbon credits from CDM are granted when companies from such developed Annex 1 countries undertake investments enabling the reduction of CO2 emissions in developing countries to support their clean and sustainable development. As the emission reductions obtained can be used to meet part of the obligations, the CDM is a first step towards a global carbon market. About GDF SUEZ in Latin America GDF SUEZ Energy Latin America provides innovative energy and gas solutions in Argentina, Brazil, Chile, Costa Rica, Panama and Peru, supporting this emerging continent in its economic growth, respecting the environment and providing essential services to its people. It has 3,300 employees in the region and 12.2 GW capacity in operation and an additional 4.7 GW under construction. Two thirds of the electricity it generates is renewable. It also transports, distributes and sells gas in addition to regasifying LNG and has a share in more than 45 Mm3 per day in natural gas operations through generation companies, marketing and infrastructure operators. For more information, please visit www.gdfsuezla.com —- (1) On May 13, GDF SUEZ and Mitsui announced a partnership where Mitsui will take a 20% equity interest in the project, expanding the long-term partnership between the two Groups. The closing of the transaction is expected to occur during the second half of 2013, upon satisfaction of certain conditions, including obtaining approvals from Brazilian authorities (ANEEL – Electricity Energy Regulatory Agency and CADE – Brazilian anti-trust entity) and lenders (BNDES and local commercial banks). (1) As defined by UNFCC About GDF SUEZ GDF SUEZ develops its businesses (electricity, natural gas, services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services. GDF SUEZ employs 219,300 people worldwide and achieved revenues of €97 billion in 2012. The Group is listed on the Paris, Brussels and Luxembourg stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone, Vigeo World 120, Vigeo Europe 120 and Vigeo France 20. Continue reading
Top-Class Biofuel from the Depths of the Forest
May 22, 2013 — Tops and branches from tree-felling sites are reborn in the laboratory as compact pellets. However, the energy industry will not act until the price is right. We have all seen it when we walk in the forest after the lumberjacks have been there. When the logging machinery moves on, what it usually leaves behind are piles of branches and tops. Norway possesses major unexploited energy resources in the form of these branches and tops — known in their Norwegian acronym as GROT (see Fact-box). Samples of this logging waste regularly arrive at SINTEF to be transformed into fuel. In the raw form in which the biomass arrives at the laboratory, it is regarded as a problematic and therefore low-value fuel. But when the scientists and technicians have finished processing it, they are left with a valuable source of heat — ready for use in industrial heating furnaces that are currently fuelled with wood pellets or chips, and for domestic pellet stoves. The transformation is effected via a process called torrefaction, a sort of extreme sauna for timber and vegetation. Problematic raw material Senior scientist Øyvind Skreiberg shows Gemini a fistful of fragments of wood with an admixture of spruce needles. It looks just like the sort of debris that litters the pavement around the Christmas tree stands on Christmas Eve. This is chopped-up GROT from spruce logging. “Cheap fuel, and Norwegian logging sites are full of it. But it is a poor-quality fuel, because it is so variable in composition,” says Skreiberg. If the GROT is tipped into the furnace, the woody component of the mixture may burn in one instant, bark and needles in the next. “This mixture means that the efficiency and characteristics of the combustion process are extremely variable. In the worst case, they can destroy a combustion chamber,” says Skreiberg. Then he opens his other fist and shows us the evidence that the problem is capable of being solved. Fibre broken down On its way through the highly insulated steel cylinders of the laboratory rig, the raw material has been heated to 275 oC. The heat treatment has broken down the fibrous structure of the biomass. According to Skreiberg, this has two benefits. “In the first place, the torrefied material can easily be crushed into the powder that you can see here, which can be stirred around to form a homogeneous, and therefore combustion-friendly, mass.” “Secondly, this powder can be pressed into pellets with a high energy content per unit of weight and volume; in other words, it is also a transport- and storage-friendly fuel. Pellets of torrefied biomass can withstand getting wet, just like coal, and are very stable under storage.” Continue reading
What Is The Outlook For Carbon Pricing In Australia?
Clean Energy Future vs. Direct Both political parties remain committed to achieving our national emissions reduction target set at 5% of 2000 emissions levels. Under the Gillard Government, the Clean Energy Future (CEF) package of measures will be maintained. Should the Coalition win in September, carbon reduction activities will be managed under “Direct Action”. The Treasurer’s Budget as handed down on Tuesday night laid out a number of points relating to the management of carbon emissions. Firstly, the price on carbon is forecast to fall from $29 to around $12 per tonne in 2015-16, leaving a $6 billion revenue gap across four years. The fall in Government revenue led to funding cuts to a number of Clean Energy Future programs. However, of most relevance to Energetics’ clients, $160m in funding was brought forward for the popular Clean Technology Investment Program (CTIP) which has driven energy and emissions savings projects in manufacturing, and $370m in funding was deferred for the Australian Renewables Energy Agency (ARENA). The revised carbon price forecasts reflect the collapse of the carbon price in Europe which is currently trading at around $5.50. What this highlights for business is the need to forecast carbon at a lower price point, and the volatility of carbon markets which requires a risk management approach: whether your organisation is a liable entity under the CEF carbon scheme or concerned to manage supply chain impacts. In the Coalition’s Budget reply speech Mr Abbott stated “the carbon tax repeal bill, should we be elected, will be the first legislation that a new parliament considers”. The Coalition has committed to repealing the 18 pieces of legislation that make up the Clean Energy Future package of measures . It is, however, difficult to know the course this repeal will take and when the carbon price will be effectively removed. You can read Energetics’ analysis of the possible timing in “The future of the carbon price.” What we do know is that a Coalition government will retain the current income tax thresholds and the current pension and benefit fortnightly rates, decoupled from carbon costs. We also know that organisations which have already purchased carbon permits may dispute the Coalition’s assertion that no compensation is due to them for those purchases – because it was done voluntarily. The government however, argues that a refund could be necessary should the permits be considered a property right [1] . More details about Direct Action required: There are also questions around the cost of Direct Action. More details should be provided either in the lead up to the election, or through a White Paper which is expected to be developed following the election, should the Coalition win office. Under the CEF, large emitters are compensated with free permits and some specific industries such as LNG, steel, coal and brown coal power generators have received financial compensation to mitigate the impacts of the carbon price on their business and to encourage the adoption of best practice measures to lower carbon emissions. By contrast, Direct Action recognises baseline emissions and so does not offer a separate compensation element. An extract from the Direct Action Plan follows describing the flow of funds, “ The Emissions Reduction Fund will use the existing National Greenhouse and Energy Reporting Scheme (NGERS) to determine proposed emissions reductions beyond overall base levels already determined for individual firms. Businesses that reduce their emissions below their individual baseline (‘historic average’) will be able to offer this CO2 abatement for sale to the government. This will provide businesses with a direct financial incentive to take direct action to reduce their CO2 emissions below their baseline levels. … businesses will not be penalised for continuing to operate at ‘business as usual’ levels. Businesses that undertake activity with an emissions level above their ‘business as usual’ levels will incur a financial penalty. The value of penalties will be on a sliding scale at levels commensurate with the size of the business and the extent to which they exceed their ‘business as usual’ levels. The value of the penalties will be set in consultation with industry.” Direct Action is not a market-based scheme, but centrally planned and managed and as such incentives payable for emissions reduction activities should come from the government’s consolidated revenues. Although it’s worth noting that the Direct Action Plan suggests that funds derived from penalties will finance incentive payments – suggesting that Direct Action may ultimately closely resemble an emissions trading scheme. Energetics will keep you advised of details as they emerge. (1) Peter van Onselen, Contributing editor, The Australian: “ALP figures on Libs ‘black hole’ don’t add up”, May 17, 2013 Continue reading
