Tag Archives: fuel
Study: Aviation Tax Breaks Cost EU States €39 Billion A Year
Published 25 July 2013 Fuel and VAT tax exemptions on international flights could provide EU countries with an extra €39 billion a year, a sum approaching Spain’s swingeing budget cut in 2013, according to a new study by the consultancy CE Delft. The report, which was commissioned by the green campaigning group, Transport and Environment (T&E), blamed outdated EU laws, which privileged aviation over less polluting forms of transport. “International airlines are like flying tax havens inexplicably exempted from paying the basic EU taxes every EU citizen and company is obliged to,” said T&E’s aviation policy officer Aoife O’Leary. “Cash-strapped EU governments should seize the opportunity, collect this low-hanging fruit and generate revenues badly needed to cover their budget deficits,” she added. According to the study, €32 billion a year is lost due to the airlines’ exemption from paying fuel taxes, while another €7.1bn goes missing because of VAT exemptions on international flight tickets. Moving up the political agenda The issue of tax breaks for airlines is moving up the political agenda, partly because petrol pump price increases are hitting consumers hard. But the aviation industry is also facing intense pressure ahead of the International Civil Aviation Organisation (ICAO)’s triannual meeting in Montréal in September. There, an attempt will be made to agree a market-based measure that could resolve the increasingly bitter dispute over the EU’s efforts to make airlines pay a price for their carbon emissions under the Emissions Trading System. Writing in the China Daily last month, Achim Steiner, director of the United Nations Environment Programme, said airline tax breaks “give air transport an unfair advantage over rail and road, and offers less incentive to aircraft designers and operators to accelerate a transition to ever-more fuel-efficient planes.” However the airline industry says that without such tax holidays it would be hard pressed to turn a profit. A recent report by the International Air Transport Association contended that, despite a ten-fold growth in air travel since 1973, the industry’s current profit returns will not meet the $4-$5 trillion needed for its planned expansion, primarily in the Asia-Pacific region. And regional airlines contend they contribute significantly to reviving tourism in some areas of Europe, contributing to economic growth. Airline demand and capacity are also both up around 5.7% on last year’s figures, operating profits are rising , and ratings agencies predict that they will continue to grow over the next year. Airline emissions Although airlines are today only responsible for around 2% of the world’s CO 2 emissions, when NOx emissions, water vapour, soot and sulphates, contrails and enhanced cirrus cloud formations are considered, they account for some 5% of planetary global warming and the figures are rising fast. The EU cites estimates that by 2020, global international aviation emissions will be around 70% higher than in 2005 even if fuel efficiency improves by 2% per year. The ICAO forecasts that by 2050 they could grow by a further 300-700%. The EU recently published proposals to cut direct state aid to the aviation industry, but T&E says they will allow European airlines to continue receiving €3 billion a year in subsidies to artificially expand demand by building new runways and cut airport costs. The consultation on the EU’s plans closes on 25 September. NEXT STEPS: 24 Sept.-4 Oct. 2013: ICAO’ Assembly is scheduled to meet in Montreal for its triannual 38 th session 25 Sept. : Consultation on EU state aid proposals due to close EurActiv.com Continue reading
Biomass Fuel Subsidies To Be Capped Says Energy Secretary
By Roger Harrabin Environment analyst, BBC News Burning wood is not a long term answer to the UK’s energy needs, says Energy Secretary Ed Davey The government is turning away from its controversial policy of subsidising UK power stations to generate electricity from burning wood. It is proposing that subsidies for bespoke biomass burning plants should be capped at 400 MW. It will end subsidies for biomass burning in existing stations by 2027. There was an outcry in May when the BBC revealed that millions of tonnes of wood were being shipped from the USA to help meet Britain’s renewables targets. Wood is classed a renewable fuel because trees soak up CO2. Burning wood is counted as carbon-neutral, even though it takes the lifetime of a new tree to reabsorb the carbon emitted when an existing tree is burned. Temporary solution Environmentalists are relieved, but say the policy should never have been approved in the first place. The UK’s biggest power station, Drax in Yorkshire, has been converting half its boilers from coal to wood. Most of this wood it burns is imported, particularly from the US. Ed Davey, the Energy Secretary, told the BBC that biomass was a temporary solution to meet climate change targets while renewable energy systems were being developed. “Making electricity from biomass based on imported wood is not a long-term answer to our energy needs – I am quite clear about that,” he said. Carbon conundrum There has been fierce controversy about the sustainability of powering British homes with American wood. Critics say that it takes 50 years or more for a new tree to absorb the CO2 released when an existing tree is burned. But calculations by the government’s chief energy scientist, David Mackay, on the carbon emissions from wood-burning are so controversial that they remain formally unpublished. In a statement to the BBC, the energy department, DECC, now acknowledges that burning biomass in dedicated power stations offers poor value carbon savings compared with wind power or even gas. It says it still aims to incentivise sustainable biomass burning for heat and Combined Heat and Power, which uses leftover heat to make electricity. A DECC spokesman said in the long term, it hoped to be able to burn biomass from sustainable sources, then capture the emissions using carbon capture and storage technology. This would actually remove CO2 from the atmosphere. There will be a debate, though, over what sustainable means. The UK’s largest power station, Drax, is converting some of boilers to burn wood The biomass policy was largely ignored in the media until it became clear that millions of tonnes of wood would be burned. At first, the firms involved said they were only burning waste from the timber industry, mainly in the US. An investigation by BBC News confirmed allegations by green groups that whole trees were sometimes being pelleted to be burned. But the timber companies said those trees were being cut anyway, either as part of tree-thinning operations, or as part of forest clearance by the small private landowners who dominate forestry in the south-eastern US. This presented a more complex picture, in which the key question was not whether whole trees were being burned, but whether biomass policies were diverting material from other uses, such as pulp and paper. The figures on this are unclear. ‘Serious threat’ Harry Huyton from the RSPB said environmentalists were pleased the government was stepping back from subsidies on biomass. “We have consistently raised our concerns around creating a large and unsustainable demand for wood for power generation in the UK because of the serious threat this poses to climate change and forest ecosystems,” he told the BBC. “We believe that the UK should focus on building a bioenergy sector that is based on domestic feedstocks, such as wastes and arisings from forestry and agriculture. “Recent signs that government support for large scale wood-fired power stations is cooling are welcome, but we need further action to ensure this sector develops without unacceptable impacts on our climate and wildlife.” The Renewable Energy Association, which promotes biomass, is dismayed at the government’s change in attitude. “It is madness for the government to have capped biomass burning at a time when we are in a capacity crunch for electricity,” said the group’s chief executive, Gaynor Hartnell. “Firms that have been working hard to develop capacity have been told that only a fraction will now be needed. “There’s been a big NGO [non-governmental organisation] backlash against biomass and we have to make sure it isn’t driven out altogether.” Biomass, like biofuel for transport, was an apparent solution seized in haste after EU leaders in 2007 agreed that renewables would supply 20% of all energy by 2020 . The UK delegation did not realise this included oil and gas, as well as electricity, and inadvertently signed up for a near-impossible target of 15% renewables. Entrepreneurs stepped in to fill the gap and biomass will supply a large portion of the EU’s target. The government’s former climate change ambassador, John Ashton, told me: “The biomass policy appeared with trace. I can’t remember a single strategic discussion over how it would be deployed. It’s no way to run a long-term carbon reduction strategy.” Continue reading
Taking Biofuels to the Next Level – Carbon-Neutral Fuel in the Works?
Kristopher Settle | Jun 13, 2013 Oh, so there’s a problem with releasing excess carbon dioxide into the atmosphere from burning fossil fuels? OK, no big deal, we’ll just use that CO2 to make some carbon-neutral biofuel, sound good? That’s the claim being presented by researchers at the University of Georgia (UGA) in an article posted by Bio Fuel Daily. Michael Adams, UGA Bioenergy Systems Research Institute member, Georgia Power professor of biotechnology and Distinguished Research Professor of biochemistry and molecular biology in the Franklin College of Arts and Sciences, co-authored the study. “Basically, what we have done is create a microorganism that does with carbon dioxide exactly what plants do – absorb it and generate something useful,” Adams stated. He elaborates on the potential of the study, “What this discovery means is that we can remove plants as the middleman…[w]e can take carbon dioxide directly from the atmosphere and turn it into useful products like fuels and chemicals without having to go through the inefficient process of growing plants and extracting sugars from biomass.” The conversion process begins by isolating a microorganism known as Pyrococcus furiosus. P. furiosus normally feeds on carbohydrates in warm ocean waters near geothermal vents. Instead, Adams’ team of researchers discovered a method of feeding the microorganism some carbon dioxide at a much lower temperature than usual. The research team went one step further by incorporating additional hydrogen gas to the equation as well. This results in altering the carbon dioxide within the microorganism into 3-hydroxypropionic acid, which is a commonly-used chemical for acrylics and other useful materials. The team claims that by additionally testing genetic manipulations of P. furiosus, the potential of creating a biofuel literally from thin air is quite possible. The best part is since the biofuel was created with what is essentially recycled carbon particles from the air, the emissions that result from burning the biofuel would release the same amount of CO2 into the air as it took to produce. This carbon neutrality is far more efficient and healthier for the environment in comparison to burning fossil fuels the way we do today. As Adams alluded to, one of the greatest hindrances from generating biofuel on a large scale stems from the inefficiency to grow, transport and decompose various grasses or plants to create cellulosic ethanol. Considering that the University of Georgia can spend zero dollars to generate carbon dioxide from the air , all money spent on developing and transporting raw materials for biofuel would be more expensive by default. With that said, Adams also indicated that the public is a long way away from seeing carbon neutral biofuel. For the time being, the US government still touts cellulosic ethanol as the best alternative that’s currently available. This is clearly evident, based on how the US has been the world’s largest producer of ethanol since 2005 and how it has also mandated E10 fuel in 2007 for the next 15 years. Despite the limited potential for now, Adams remains upbeat for the future of their discovery, “This is an important first step that has great promise as an efficient and cost-effective method of producing fuels…in the future we will refine the process and begin testing it on larger scales.” Continue reading