Tuesday, January 31, 2006

Tasmanian company to install renewable energy at Maatsuyker Island - Judy Jackson, MHA - Tasmanian Government Media Releases

The State Government will spend $103,572 to reduce greenhouse emissions at Maatsuyker Island by installing renewable energy equipment.

Parks and Heritage Minister Judy Jackson said a combination of wind, solar and diesel generated energy would provide more efficient and reliable electricity for the island, and will greatly reduce the use of diesel fuel.

“Hydro Tasmania will manage the project, with work to be carried out by Power Plus, a Tasmanian renewable energy systems installer,” she said.

Ms Jackson said that Maatsuyker Island had special significance as a lighthouse, area and source of data for the Bureau of Meteorology.

The new power source would also contribute to the island’s status as a valuable scientific resource, as part of Tasmania’s Southwest National Park and the Tasmanian Wilderness World Heritage Area.

“At the moment, all the island’s electricity is provided through a diesel-powered generator, with diesel brought in by air”, Ms Jackson said.

“There are problems with blackouts, and with fuel supply in bad weather.

“Installation of a hybrid system, predominately using wind and solar energy sources, will improve conditions for the volunteer caretakers on Maatsuyker, reduce running costs and reduce greenhouse emissions”.

The Australian Government, through the Renewable Remote Power Generation Program (RRPGP), would contribute $53,073 to the project.

This initiative is part of the State Government’s commitment to progressing

Tasmania Together Goal 21 – Value, protect and conserve our natural and cultural heritage.


Carbon emission targets delayed by government row

Patrick Wintour, chief political correspondent
Tuesday January 31, 2006
The Guardian

The government's strategy to cut carbon dioxide emissions in the battle against climate change has been paralysed for seven months by a dispute between two Whitehall departments.

Labour has pledged in three successive manifestos that by 2010 it will cut the UK's CO2 emissions by 20% below 1990 levels. The promise has reached almost totemic status in the party.

But publication of a programme to meet the targets has been held up, with the Department of Trade and Industry arguing that emissions have risen at such a rate over the past two years that it is unlikely Britain can meet the target. The DTI's latest projections show that, on current measures, CO2 will have been reduced to "only around 10% below 1990 levels by 2010".

But the Department for Environment, Food and Rural Affairs, armed with less statistical and economic modelling firepower than the DTI, is contesting the figures, and insists the target can still be met by vigorous action.

Ministers are frustrated by the delay since the postponements reduce the government's chance of meeting its 2010 target. They fear that the UK's claim to international leadership on climate change is being undermined.

In an attempt to step up pressure on No 10, ministers warn that David Cameron, the Tory leader, is putting the environment at the heart of his repositioning of his party. Mr Blair has taken a strong position on climate change, but privately believes Mr Cameron's promise to cut carbon emissions year on year is unrealisable.

The inability of two key Whitehall departments to agree on the way ahead in such a crucial area of policy comes amid renewed warnings that the dangers posed by climate change are more serious than previously thought. The environment secretary, Margaret Beckett, yesterday published the findings of a study initially prepared by international scientists for a conference convened by the government as president of the G8 last February. It includes evidence from the head of the British Antarctic Survey, Professor Chris Rapley, that the west Antarctic ice sheet may be starting to disintegrate. Scientists believe that would raise sea levels around the world by 16ft (5 metres), with disastrous consequences around the world.

The government announced its review into its UK domestic climate change programme in September 2004, admitting it was not on course to meet the commitment to cut CO2 by 20% by 2010. A consultation document was published in December 2004 and most of the consultancy work completed last spring. The review, originally to be published last summer, is now due "early this year". But Mrs Beckett, under pressure from an all-party alliance on climate change, was unable yesterday to say precisely when it would be published.

The government is still likely to fulfil a separate but less ambitious pledge to cut greenhouse gas emissions by 12.5% by 2008-12, which would meet its commitment under the Kyoto protocol.

It is understood there have been technical disputes in Whitehall about measuring carbon emissions, including the true base level of emissions in 1990. The review is also being held up by uncertainties over the contribution Britain can make to the second round of the EU carbon trading emissions scheme, due to start in 2008 and end in 2012.

Each EU country is to send the EU commission details of how it intends to meet a national allocation plan by this summer. The plan fixes the total amount of CO2 that can be emitted by all the installations in each country covered by the scheme, as well as the number of emission allowances allocated to each individual installation.

In the domestic climate change programme, ministers have been looking at a range of options including tougher building regulations, higher vehicle excise duty on polluting cars and cuts in council tax to give incentives for domestic energy efficiency. The options are limited as businesses have already cut emissions, but carbon emissions from transport are projected to have gone up by 16% between 1990 and 2010, even though average fuel efficiency has also risen. More nuclear power, the subject of a separate government review, could not contribute to the 2010 target since no new stations could come on stream so quickly.

The Liberal Democrat environment spokesman, Norman Baker, said last night: "There is a genuine problem about measuring carbon emissions in a credible way but I fear there are some in government, especially in the DTI and in No 10, that are quite happy to postpone decisions on climate change. The longer the delay the more difficult it is to meet the target. They are quite happy to talk about the importance of climate change, but not to take any action if it means they are going to lose votes."

For the Tories, Peter Ainsworth, the shadow environment secretary, said: "Every day the news on climate change gets worse, but the UK's contribution to the problem keeps going up. How many more warnings does the government need before it takes effective action to cut emissions? The science is clear, now we've actually got to do something about it. I urge the government to restate its absolute commitment to cutting emissions by 20% by 2010 and 60% by 2050, and to give us a firm date for the delayed climate change programme review.

"Britain is capable of playing a major role in helping to achieve a more stable and secure planet but we must put our own house in order first."
Carbon emission targets delayed by government row

Patrick Wintour, chief political correspondent
Tuesday January 31, 2006
The Guardian

The government's strategy to cut carbon dioxide emissions in the battle against climate change has been paralysed for seven months by a dispute between two Whitehall departments.

Labour has pledged in three successive manifestos that by 2010 it will cut the UK's CO2 emissions by 20% below 1990 levels. The promise has reached almost totemic status in the party.

But publication of a programme to meet the targets has been held up, with the Department of Trade and Industry arguing that emissions have risen at such a rate over the past two years that it is unlikely Britain can meet the target. The DTI's latest projections show that, on current measures, CO2 will have been reduced to "only around 10%

But the Department for Environment, Food and Rural Affairs, armed with less statistical and economic modelling firepower than the DTI, is contesting the figures, and insists the target can still be met by vigorous action.

Ministers are frustrated by the delay since the postponements reduce the government's chance of meeting its 2010 target. They fear that the UK's claim to international leadership on climate change is being undermined.

In an attempt to step up pressure on No 10, ministers warn that David Cameron, the Tory leader, is putting the environment at the heart of his repositioning of his party. Mr Blair has taken a strong position on climate change, but privately believes Mr Cameron's promise to cut carbon emissions year on year is unrealisable.

The inability of two key Whitehall departments to agree on the way ahead in such a crucial area of policy comes amid renewed warnings that the dangers posed by climate change are more serious than previously thought. The environment secretary, Margaret Beckett, yesterday published the findings of a study initially prepared by international scientists for a conference convened by the government as president of the G8 last February. It includes evidence from the head of the British Antarctic Survey, Professor Chris Rapley, that the west Antarctic ice sheet may be starting to disintegrate. Scientists believe that would raise sea levels around the world by 16ft (5 metres), with disastrous consequences around the world.

The government announced its review into its UK domestic climate change programme in September 2004, admitting it was not on course to meet the commitment to cut CO2 by 20% by 2010. A consultation document was published in December 2004 and most of the consultancy work completed last spring. The review, originally to be published last summer, is now due "early this year". But Mrs Beckett, under pressure from an all-party alliance on climate change, was unable yesterday to say precisely when it would be published.

The government is still likely to fulfil a separate but less ambitious pledge to cut greenhouse gas emissions by 12.5% by 2008-12, which would meet its commitment under the Kyoto protocol.

It is understood there have been technical disputes in Whitehall about measuring carbon emissions, including the true base level of emissions in 1990. The review is also being held up by uncertainties over the contribution Britain can make to the second round of the EU carbon trading emissions scheme, due to start in 2008 and end in 2012.

Each EU country is to send the EU commission details of how it intends to meet a national allocation plan by this summer. The plan fixes the total amount of CO2 that can be emitted by all the installations in each country covered by the scheme, as well as the number of emission allowances allocated to each individual installation.

In the domestic climate change programme, ministers have been looking at a range of options including tougher building regulations, higher vehicle excise duty on polluting cars and cuts in council tax to give incentives for domestic energy efficiency. The options are limited as businesses have already cut emissions, but carbon emissions from transport are projected to have gone up by 16% between 1990 and 2010, even though average fuel efficiency has also risen. More nuclear power, the subject of a separate government review, could not contribute to the 2010 target since no new stations could come on stream so quickly.

The Liberal Democrat environment spokesman, Norman Baker, said last night: "There is a genuine problem about measuring carbon emissions in a credible way but I fear there are some in government, especially in the DTI and in No 10, that are quite happy to postpone decisions on climate change. The longer the delay the more difficult it is to meet the target. They are quite happy to talk about the importance of climate change, but not to take any action if it means they are going to lose votes."

For the Tories, Peter Ainsworth, the shadow environment secretary, said: "Every day the news on climate change gets worse, but the UK's contribution to the problem keeps going up. How many more warnings does the government need before it takes effective action to cut emissions? The science is clear, now we've actually got to do something about it. I urge the government to restate its absolute commitment to cutting emissions by 20% by 2010 and 60% by 2050, and to give us a firm date for the delayed climate change programme review.

"Britain is capable of playing a major role in helping to achieve a more stable and secure planet but we must put our own house in order first."

below 1990 levels by 2010".
Australian utility to build country's biggest wind farm - Yahoo! News

SYDNEY (AFP) - Australian Gas Light Company (AGL) announced that it would build the country's largest wind farm as part of efforts to meet its legal obligation to invest in renewable energy.

AGL, Australia's biggest energy retailer, said the 95 megawatt facility would cost 236 million dollars (177 million US dollars) and use 45 wind turbines over an area of 14 square kilometers (5.6 square miles) near the town of Hallett in South Australia.

The wind farm will be adjacent to an existing 180 megawatt gas-fired peaking power plant operated by AGL and is scheduled to be commissioned in December 2007, it said.

The wind turbines will be integrated with the gas-fired power station by using existing infrastructure, ensuring continuous operation during periods of high electricity demand.

AGL chief executive Greg Martin said the project would help the company meet its commitment to increase the amount of electricity generated from renewable sources.

It will also contribute to AGL's obligations under the federal government's mandatory renewable energy target scheme.

Construction of the wind farm is expected to start in September 2006.

Australia's largest wind farm now is a 91 megawatt facility at Wattle Point in South Australia, which AGL also owns following its acquisition of Southern Hydro in October 2005.

AGL last year announced plans to demerge its retail and merchant energy assets from its infrastructure assets into two separate businesses, AGL Energy and AGL Infrastructure.

It said Tuesday that the two new companies planned to cooperate in the building and operation of additional wind farms.

Plans for the new wind farm projects would be elaborated after the demerger plan is presented to shareholders for approval in March, it said.

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Oil & Gas Journal - MARKET WATCH
Supply worries boost energy prices


HOUSTON, Jan. 30 -- Energy prices climbed Jan. 27 as traders shrugged off earlier bearish reports of US inventories to position themselves ahead of the weekend for possible disruptions of crude supplies.

"Despite a surprise build in US gasoline and product inventories last week, which was more of a bearish outcome than the unanticipated drop in crude inventories, supply concerns due largely to the nuclear stand-off with Iran and to a lesser extent the violence in Nigeria continued to lend significant support to oil prices," said Robert S. Morris at Banc of America Securities LLC, New York. "Also, the unanticipated victory by the Palestinian terrorist group Hamas only added to tensions in the Middle East."


Escalation of the nuclear dispute with Iran involving the US and Europe has "substantially increased the odds of a meaningful oil supply interruption" in the next 2 years, said analysts at Raymond James & Associates Inc., St. Petersburg, Fla.

In a Jan. 30 report, Morris noted two key meetings this week. The first is the scheduled Jan. 31 meeting of ministers of the Organization of Petroleum Exporting Countries in Vienna. Based on previous statements by several of those ministers, markets already assume OPEC will not increase its production in the second quarter with prices now above $60/bbl and continued geopolitical tensions.

Moreover, the International Atomic Energy Agency, the United Nations' nuclear watchdog, is to meet Feb. 2-3. "The US has insisted that Iran be referred to the UN Security Council for possible sanctions while Iran's weapon of last resort is [possible curtailment of] its 2.4 million b/d of crude oil output if the UN were to impose sanctions, which both China and Russia still oppose," said Morris.

Industry sources said OPEC production was unchanged at 29.6 million b/d in January compared with revised figures for December. Royal Dutch Shell PLC earlier this month shut in production of 221,000 b/d of crude because of attacks by militants on its facilities in Nigeria (OGJ Online, Jan. 25, 2006). Saudi Arabia made up some of that loss, sources said. Meanwhile, there were reports that four workers kidnapped by militants from Shell facilities in Nigeria may be freed soon.

Energy prices
The March contract for benchmark US light, sweet crudes climbed by $1.50 to $67.76/bbl Jan. 27 on the New York Mercantile Exchange. The April contract increased by $1.53 to $68.52/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by $1.53 to $67.77/bbl. However, if oil prices fall 10-20% from current levels over the coming months, "there is a strong possibility that energy stocks get pulled down with oil," warned Raymond James analysts.

Gasoline for February delivery escalated by 5.21¢ to $1.74/gal on NYMEX. Heating oil for the same month increased by 2.89¢ to $1.81/gal. The February contract for natural gas gained 17.1¢ to $8.40/MMbtu. "Falling oil prices could put further pressure on gas prices that are already depressed due to unfavorable weather," said Raymond James.

In London, the March contract for North Sea Brent crude increased by $1.32 to $66.24/bbl on the International Petroleum Exchange. The February gas oil contract gained $4.75 to $554.50/tonne.

The average price for OPEC's basket of 11 benchmark crudes increased by 92¢ to $60.22/bbl on Jan. 27. So far this year, OPEC's basket price has averaged $57.80/bbl, up from an average $50.64/bbl for all of 2005.

Contact Sam Fletcher at samf@ogjonline.com.
Car firms 'blocking green fuel'


Car makers are not doing enough to develop green alternatives to petrol, an influential government adviser says.
Japanese companies had a better record than European or American ones, Professor Stephen Blythe said.

But the industry had still not grasped the urgency of the problem - despite promoting its green credentials.

A car industry spokesman said the government could do a lot more to encourage the development of alternative fuels such as hydrogen.


"It is not just a question of manufacturers developing the technology. All of the parties involved in future fuel technology must play their part," said Nigel Wannacott, of the Society of Motor Manufacturers and Traders.

Bio-fuel


Mr Wannacott said Japanese manufacturers had led the way on hybrid electric and petrol cars but all major manufacturers were developing hydrogen and bio-fuel engines.

He urged the government to provide incentives and build infrastructure to encourage the take-up of hydrogen, which he said was about 15 to 20 years away.

I can never see a time when our love affair with the car wanes

Nigel Wannacott, society of motor manufacturers and traders


Analysis: Transport in 2055

But Professor Blythe, who is one of the key contributors to the government future transport strategy, claimed it was the manufacturers who were dragging their feet.

"We have had a lot of meetings with car companies, who promote their green credentials - but they say we are not going to do much for the next 20 to 30 years because our customers don't want to pay more.

"Japanese car manufacturers seem to be much more progressive than some of the European or American ones," he said.

Perpetual motion

He was speaking at the launch of a report on the long-term shape of UK transport policy.

The report includes four alternative scenarios of what life might be like in 50 years time to help industry and government plan future transport infrastructure.

The scenarios are:


Perpetual motion - Demand for travel remains strong thanks to continued globalisation and growth. Cars have got faster but more green, air travel still popular but expensive.

Urban colonies - Environment top priority for government. Car use expensive and restricted. Public transport widely used but rural areas lose out.

Tribal trading - Energy crisis has caused mass unemployment. Long distance travel a luxury few can afford. World has shrunk to local communities for most people.

Good intentions - Tough government measures restrict carbon emissions. Traffic volumes have fallen but the market has failed to provide new energy sources.
Asked which of the scenarios would appeal to car manufacturers, Professor Blythe said: "I suspect they would not favour any of them."

Road pricing

He said the way people used their cars would have to change over time to make it a more "efficient" form of transport.

Road pricing schemes, electronic networks to help people plan journeys better or even replacing private car ownership with public cars-on-demand schemes could all play a part, he added.

Mr Wannacott said the car industry backed "smarter use of cars and commercial vehicles", which would free roads from congestion.

But he added: "I can never see a time when our love affair with the car wanes.

"There will always be an element of glamour: you are safe, you are free to go where you choose, you are not restricted to doing things the way somebody else wants you to do them. It is about personal freedom."



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LINKS TO MORE UK POLITICS S
Work begins on bio power station

Work has started on a £90m biomass power station, hailed as the largest project of its kind in the UK.
A ground breaking ceremony marked the beginning of the E.ON UK project at Steven's Croft near Lockerbie.

The green scheme - which converts waste timber products into energy - should supply enough power to meet the needs of around 70,000 homes.

The firm predicts the project will create 40 direct jobs and 300 indirect posts in forestry and farming.

The Big Lottery Fund is providing £18m from its Bio-Energy Capital Grants Scheme for the E.ON UK project.

The company said 220,000 tonnes of fuel would be required each year and this would be sourced from the local environment.

Scotland has an abundant resource to lead the way in biomass development in the UK, providing and sustaining jobs and meeting local energy needs

Nicol Stephen
Deputy First Minister

About 40 jobs would be created at the Lockerbie site with a further 300 in forestry and farming.

Deputy First Minister Nicol Stephen welcomed the start of construction work.

He said: "This is excellent news for both Lockerbie and Scotland.

"Scotland has an abundant resource to lead the way in biomass development in the UK, providing and sustaining jobs and meeting local energy needs.

"Developments like this demonstrate extremely clearly that, by seizing these tremendous opportunities, we can help make Scotland a powerhouse of renewable energy."

'Added bonus'

The plant was also backed by Friends of the Earth Scotland's Head of Research, Stuart Hay.

He said: "In the future using biomass to generate electricity and heat is going to play an ever increasing part in helping to reduce climate pollution.

"Plants such as this will also lead to new jobs in remoter parts of the country.

"The fact that this facility will be using forestry residues that would otherwise have gone to waste is an added bonus."
Ceramic Fuel Cells Limited (ASX code CFU) and szencorp are pleased to announce that a CFCL fuel cell unit has been commissioned at szencorp's ground breaking energy efficient commercial office building at 40 Albert Road, South Melbourne.

The szencorp building incorporates a demonstration version of CFCL's fuel cell powered domestic combined heat and power (micro-CHP) unit, designed to produce 1kW electricity and heat for hot water.

The CHP unit converts natural gas into electricity and heat through an electrochemical process, rather than direct combustion, which results in significantly higher energy efficiency and lower greenhouse emissions than conventional coal-fired power stations.

The unit was installed at the site last year and has now been tested and commissioned, with an operating fuel cell stack. CFCL and szencorp will test and evaluate how the demonstration unit performs in 'real world' conditions.

"We're delighted to have commissioned the unit", said CFCL's Chief Operations Officer John Rajoo. "Our initial focus for the field trial is to evaluate the reliability of the complete system and 'balance of plant' components, which are all the parts of the CHP unit that sit around the fuel cell - like the gas systems, control software, electronics and the hot water system. We'll then look to increase the power output of the fuel cell stack and export power to the grid."

Tony Dorotic, manager of the szencorp building, said distributed generation solutions like CFCL's fuel cell unit were the way forward for commercial buildings. "We're proud to be showcasing leading Australian 'clean technology' like CFCL's fuel cell unit. The szencorp building is a real, working example of how building owners and tenants can be smart with energy and the environment, and provide a great working environment" he said.

Another CFCL demonstration CHP unit is being trialled with Powerco in New Zealand and a further unit is scheduled to be delivered to a Powerco partner in Tasmania, in early 2006, once site works are complete. Two units have also been dispatched to EWE in Germany.

The szencorp building was the first retrofit in Australia to receive a 5 star Australian Green Building Rating (AGBR) commitment, and the first occupied refurbished building with a 6 Green Star rating from the Green Building Council of Australia.

---------------

This announcement, and all prior CFCL announcements, are available at ASX's website (click here). (If your browser does not support links, go direct to www.asx.com.au and seach for announcements by CFU.)
---------------------------------------------------

More information about CFCL - including presentations, announcements and images for download - is available at www.cfcl.com.au.
More informatiuon about szencorp is available at www.ourgreenoffice.com


Regards


Andrew Neilson
Legal and Commercial Manager (Company Secretary)
CERAMIC FUEL CELLS LIMITED
Tel: +61 (0)3 9554 2300
Email: investor@cfcl.com.au
Website: www.cfcl.com.au
Study warning over nuclear waste: "
The disposal of nuclear waste is a long-term problem
Opponents of nuclear power have seized on an initial report which indicates that a solution to managing radioactive waste may be some way off.
The Committee on Radioactive Waste Management's final report will help the UK Government decide whether or not to support new nuclear power stations.
The Scottish Green Party said the warning shows the scale of the problem.
The Scottish Executive said there would be no more nuclear power stations until the waste issue has been resolved.
The Committee on Radioactive Waste Management is due to deliver its conclusions in July.
Dumping options
However, the draft of its initial report states: 'If ministers accept our recommendations, the UK's nuclear waste problem is not solved.
'Having a strategy is a start. The real challenge follows.'
It is not clear whether this was a reference to the difficulty of siting a nuclear waste dump.
However, the Greens have interpreted this as an admission that the problem cannot be resolved.
It all depends on what First Minister Jack McConnell and the executive accept as a solution

Louise Batchelor
BBC Scotland environment correspondent
First Minister Jack McConnell has pledged that the executive would not be prepared to consider progressing with nuclear power until the problem of nuclear waste was resolved.
He said last year: 'Until there's a solution to the problem of nuclear waste, I don't believe that we should be involved in further generation of nuclear power.
'The solving of the issue of nuclear waste seems to me to be of paramount importance because that waste currently exists and needs to be dealt with.'
Options for disposal being considered by the committee are"
Adapting to climate change- The Economic Times: "The polluter-pay-principle, applied in most countries for local air, water and land pollution, needs to be applied also in the case of global pollution due to GHG emissions, largely by developed countries.

If you can�t fight it, get ready to suffer it� was one of the messages that emerged from 11th meeting of Conference of Parties (COP 11) at Montreal early this month. Nearly 9,400 participants attended the event that included 2,800 government officials; 5,800 representatives of UN agencies, international and non-government organisations and 840 media professionals.

The earlier spirit and fervour of �combating global warming� have been side-stepped to make room for the fact that climate change is inevitable, no matter how hard we try. Already 800 billion tonnes of green house gases, nearly 80% of which emitted by the industrial countries have accumulated in the atmosphere. They will have their impact. Consequently, there was a lot more focus on adaptation.

Continued...123456Next >>


Surf 'N' Earn -Sign innow"
The great Alberta oil rush

Canada is a modest and unassuming place when compared with its great big neighbour to the south. But now it has plenty to boast about: world-beating oil reserves in Alberta which are finally being brought into production after decades of talk.

Alberta is experiencing a huge and expensive oil rush, and Fort McMurray is at the centre of it.

The town is an old trapper post, with no road until the 1960s, though it had a railway. Fort McMurray's population is now a runaway 68,000, and climbing all the time.

For 30 years I've heard about the promise of the vast Alberta oil sands area, ever since the Opec oil crises of the 1970s, when oil suddenly became worth much more than two dollars a barrel.

But decade after decade, it was only a promise of oil to come in Alberta.

The oil is bound up in black bituminous sand close to the surface. But even though the reserves are so huge and so obvious the oil sands have to be steam heated to release the oil.

Potential gains

Until very recently, it's been a prohibitively expensive process - but suddenly, with the world oil price well above $30 and now routinely above $60, Alberta oil is worth winning.


400-tonne trucks are used to transport the oil sands

A recent recalculation has revealed that the amount of oil buried underneath the ground in Northern Alberta was not millions of barrels - but trillions. Alberta's internationally recognised reserves are now put at 175 billion barrels of crude. Only Saudi Arabia has bigger reserves.

So now mighty corporations are pouring billions of dollars into the area around Fort McMurray.

In a chilly wilderness where the mercury sometimes freezes, under the brilliant illuminations of the Aurora Borealis, the northern lights, huge excavators are scraping off the topsoil and dumping the sticky sands underneath into the biggest dumper trucks in the world.

I rode on one. It was a 400-tonner on which each of the six tyres costs £25,000; it feels like driving a house.

The next stage is a towering plant to liquefy the sludgy bitumen and create crude oil that can be pumped hundreds of miles in pipelines to the refineries.

Back to the wilderness?

And these deposits are guaranteed to last for decades, if not centuries.

Flying in a helicopter over the oil sands area, you can see for fifty miles, and know that somewhere under the surface peaty, boggy "muskeg" as the Canadian call it, oil sands stretch out almost forever.

This oil belongs to the Province of Alberta. It is making it rich: a big place with a small population of three million people. Alberta has paid off its debts and has such a budget surplus already that it has just given every provincial taxpayer a rebate cheque for 400 Canadian dollars, about £200, as a sort of New Year present.

But this is wilderness: haunt of the bear and the buffalo and the caribou and the moose. The oil companies are promising to restore the land to what it looked like before, shifting back the washed sand minus oil of course, covering it with muskeg, and replanting the scraggy trees.

Environmentalists (and the native First Nation people) are not so sure that virgin wilderness can really be recreated; the jury is still out.

Old ways, new ways

And this is happening a long way from almost anywhere.

To get some perspective on all this, I drove out to see a couple who have known Fort McMurray for more than 70 years. Over a cup of tea, Bill Woodward was soon showing me how to jump aboard a moving train without losing a leg in the process.


The scale may be different, but have the methods changed in 300 years?

Our conversation took place in a snug little lakeside cabin which the ex-hobos, Bill and his wife Nancy, have lived in since he came home from the Second World War.

Until the road came, they used to go shopping in the winter with a dogsleigh. It was the frontier life Canada's original settlers must have experienced: trapping, fishing, living off what you could snare or shoot.

Bob Woodward is what the Canadians call Metis, a distinct aboriginal nation descended from native (Indian) women and European incomer men.

His son Rowland listened to us discussing the past, and then he said this, with quiet pride: "Our people were not only buffalo hunters but also fishermen. There are communities here that are more than 14,000 years old.

"Three hundred years ago when the American trader Peter Pond came through here, he sat on the banks of the Athabasca and the Clearwater rivers and saw the local people (the Cree Indians) taking the bituminous sands and put them in a pot of hot water and then they'd skim off the pitch and use it to waterproof their canoes.

"Now, 300 years on, we're still using the hot water extraction method.. and we're still using it for transportation."

So much has changed in the Alberta wilderness, so much remains the same.

This week's In Business on Radio 4 will be broadcast at 2030 GMT on Thursday 26 January and at 2130 GMT on Sunday 29 January.



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Datang eyes China nuclear plant - Breaking News - Business - Breaking News
Green fuel 'not enough' to cut transport pollution

Green fuel 'not enough' to cut transport pollution

Andrew Clark, transport correspondent
Friday January 27, 2006
The Guardian


Environmentally friendly vehicles using hydrogen-based fuels and hybrid power sources will have little impact in preventing "dangerous and irreversible pollution" within 15 years, according to a long-delayed government-funded study.
Even if green vehicles become commonplace, Britain's seemingly insatiable appetite for travel will cancel out benefits and critically pollute the air, concluded a group of scientists and academics.

The findings are in a report by the University College London Bartlett school of planning and the consultancy Halcrow, which was commissioned by the transport secretary, Alistair Darling, as part of a long-term project called New Horizons.


Article cont

The work advocates radical measures to change behaviour including lower speed limits, road charging, investment in cycling and even a policy of higher oil prices and "rations" for carbon emissions.
It was completed in November but its publication has been delayed by the Department for Transport amid discussions about its content.

David Banister, co-author of the study, said it would be "irresponsible" for the government not to act.

"You need support for behavioural awareness and educational programmes," said Professor Banister. "Technological changes aren't enough - just because you get an eco-friendly car doesn't mean you can drive twice as far."

Prof Banister was asked to consider how Britain could achieve a 60% reduction in carbon emissions from transport by 2030 as part of initiatives to go beyond targets agreed under the Kyoto treaty.

The distance travelled by the public is predicted to increase by 35% over the three-decade timeframe of the study. "The problem really is not so much the travel we're doing today but the expected increase by 2030," said Prof Banister.

The report recommends car clubs and travel "blending", whereby people are encouraged to combine several trips for different purposes into one journey. It also suggests examination of carbon emissions rations which cannot be exceeded without buying somebody else's share.

A Department of Transport spokeswoman said the government was taking steps to tackle emissions through tax incentives for cleaner vehicles.

Sunday, January 29, 2006

Deep-Sea Drill Set for Climate Research - Yahoo! News

OKOHAMA, Japan - The CHIKYU is studded with superlatives. Completed last year, the ship houses the world's biggest deep-sea drill, sports a high-tech floating laboratory and boasts a $500 million price tag.

The Japanese boat has an ambitious agenda to match: uncover the secrets of climate change, find microbes that help explain the origin of life, and clarify the causes of earthquakes.

The 210-yard ship underwent its first major test run in November, drilling deep into the ocean floor off northern Japan for specimens that scientists say can yield historical information on everything from volcano cycles to global warming.

"The contributions from this are actually immense," said Daniel Curewitz, a structural geologist who supervises the ship's lab, as he pointed to long tubes of deep-sea sediment. "Each one of these cores is a tape recorder."

The key to the project is the CHIKYU's mammoth drill, which operators say is capable of boring 7,000 meters — nearly 4 1/2 miles — into the ocean floor. That would be far deeper than the 2,111-meter — or 1.3-mile — hole achieved by the U.S.'s drilling vessel, the 20-year-old Joides Resolution.

"Beyond 2,000 meters, we will be opening a new frontier in earth sciences," declared Asahiko Taira, a U.S.-educated geologist and director general of the Center for Deep Earth Exploration, under the Japan Agency for Marine-Earth Science and Technology.

The drill can achieve greater depths with the innovation of the so-called "riser pipe," which envelopes the drill above the ocean floor and sucks debris out of the hole, making it possible to bore deeper into the earth.

CHIKYU — the Japanese word for "Earth" — is also equipped with a dynamic positioning system that can keep the ship fixed in an area with a 30-yard diameter, avoiding a drift that would bend the drill as it drives into the seabed.

Curewitz said samples taken from the earth's mantle — a place man has yet to reach — could yield a wealth of scientific information.

Cores can be analyzed at the floating laboratory, but the Japan agency has also established a core sample research institute in Kochi, southwestern Japan, for more in-depth examination.

The possible areas of advance form a long and varied list: climate change over the centuries, atmospheric composition, mantle core and plate dynamics, marine ecosystems and extremophiles, or animals that can exist under conditions of extreme temperature or pressure.

The discovery of organisms living under the extreme heat and pressures of the earth's mantle, for instance, could give scientists clues about how life began and evolved in the early years of the earth's existence.

"We can get an idea for where these sediments came from, what kind of animals were living on the bottom and in the ocean at the time," said Curewitz. "All of those things give us different ideas for ... how the climate changed over time."

After another year of tests, in 2007 the CHIKYU, built by Mitsubishi Heavy Industries, will join the country's long-cherished Japanese quest to better understand — and perhaps even predict — killer quakes.

Japan is one of the most earthquake-prone nations on earth, sitting atop four tectonic plates. A temblor took more than 6,400 lives in the city of Kobe in 1995, and studies show some 11,000 people could die if a major quake hits Tokyo.

To meet that danger, Japan has a well-developed network of quake detection and alert. Word of a quake flashes across TV screens within a minute after it strikes. But despite decades of research and all the latest technology, the ability to forecast an earthquake has been elusive.

The CHIKYU's first assignment will be in the Nankai Trough, a Pacific Ocean zone between two major tectonic plates that has produced powerful, destructive earthquakes off southwest Japan over the past 1,500 years.

There, geologists hope to drill deep into the ocean floor to the boundary between the oceanic and continental plates for the first time into what's known as a seismogenic zone — the flash point for quakes.

Scientists will pull up core specimens to tell them crucial details, such as what kind of rock is on the plate boundary zone. Hard rock plate edges, for instance, can lock against one another and then snap under pressure, while soft rock edges can slowly slide and are less likely to trigger a quake.

Researchers also plan to install monitors in the series of holes drilled by CHIKYU and connect them to a cable along the ocean floor that runs to a land station, setting up a mechanism for quick detection of undersea plate movements.

Even then, the ability to predict quakes will be limited: Taira said researchers are hoping for a 30-second advance warning of a quake — barely enough time to turn off the stove and dive under the kitchen table before disaster strikes.

Still, Taira has hopes for the future.

"We may be able to have a real-time warning that would save lives," he said.

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How the US fell out of love with its cars: "How the US fell out of love with its cars

Tail fins and chrome grilles were once the symbols of a superpower. Now, with 36,000 jobs cut in a week and foreign vehicles filling the highways, Paul Harris in New York surveys the collapse of an industry

Sunday January 29, 2006
The Observer

For John McVeigh, making cars was not just a job; it was his shot at the American Dream. He had left Glasgow a young, wide-eyed man at 21 and ended up in Detroit, lured by the huge factories churning out the cars that defined 20th century US life.

He started on the factory floor and rose through the ranks. When he retired in 1989 he was part of the management; he had brought up four good children and lived in a nice house in the suburbs. His neighbours' life stories mirrored his."

But after a week in which Ford laid off 30,000 workers and shut 14 factories, McVeigh knows his story is now part of history, like the homesteaders or the goldrushers, a way of life his grandchildren will never know. He winced at the news. 'You can't do what I did now. It just could not happen again,' he said in an accent still coloured by his Scots childhood. The statistics tell a bleak story of economic disaster that has seen a whole corner of north-east America dubbed the Rust Belt. The Big Three - Ford, General Motors and Chrysler - have declining market share, crippling pension costs and a product line reliant on deep discounts to sell. Chrysler has been taken over by the Germans and GM posted a $8.6bn loss last week, its biggest since 1992. Ford has been losing market share for 10 straight years. Last week's news was so bad that few people noticed DaimlerChrysler quietly announcing it too was axeing 6,000 staff. At the same time, foreign firms have been invading.

In 1979 the Big Three sold nearly nine out of every 10 new vehicles on US roads. By 2004, as European and Asian firms ate away at their market, only about 50 per cent of the nation's new cars were sold by US producers. By October 2005, cars made by the Big Three accounted for about 40 per cent of the US market, according to Forbes. Toyota, Honda and Korean Hyundai had all made inroads. Even that US archetype the truck saw 30 per cent of its market go to foreigners.

The US car industry is lurching into terminal decline. It means a fundamental part of America has died as well. Nothing has come to symbolise the American century more than the American car. It began with Henry Ford and the Model T and went right through the tail-finned monsters of the Fifties and the hot rods of the Seventies.

American cars were about freedom, sexual liberation and sheer confident patriotism. For young Americans a driving licence and their first Chevy or Ford was the most important rite of passage into adulthood. The car gave birth to other American icons: the motel, the advertising billboard and the diner. They were all children of the road.

Of course, the car still defines a lifestyle. Americans still buy cars by the millions, whether they are in gridlocked LA or in the middle of Kansas miles from the nearest town. But what does it mean when a country's cultural heart is now made in Japan? Or Korea? Or Germany?

On a stretch of Texas highway west of Amarillo lies Cadillac Ranch. Planted in a field of wheat are 10 rusting Cadillacs, ranging from a 1949 Club Coupe to a 1963 Sedan. All stand face down in the earth, enormous tail fins pointing defiantly at the sky. They hail from an era when the Cadillac motto was 'The Standard of the World'.

Motorists in their thousands pull off the Interstate in their Hondas and Toyotas to gawp at the sculpture that has stood there for 32 years: a row of automobile tombstones. 'When we made it, Cadillac Ranch was intended to be as much a monument to the glory of the tail fin as a burial of the gas guzzler, said Chip Lord, one of the artists behind what has become one of the most famous US public works of art. 'But that's not how people see it these days.' When Lord and his fellow artists collected the Cadillacs for their work, they toured the Texas panhandle looking for cheap deals. Driving the huge beasts to Amarillo was a 'white trash dream come true,' he says.

Back in 1974 the cars' paint gleamed under the blue Western skies. Now they are rusted and covered in graffiti. 'Perhaps it can be seen now as a sign of the decline of the American empire,' Lord mused. 'It could become a symbol for it.'

Lord now drives a Honda: 'I know the thrill of being on the road in one of those old American cars, but the fact is that if you drive one you quickly realise how archaic they are.'

The thrill used to be all anyone cared about. American cars had names such as Mustang, Charger and Javelin. They were about moving forward, at speed and damn the consequences. The size of the engine and the roar it made cruising down the road were all that mattered. The American car was the ultimate expression of the self.

It was a story that begun at the start of the 20th century in Detroit, when Henry Ford, born on a Michigan farm, mass-produced the Model T. He changed not only his own life from rural poverty to urban riches, but the country's too.

In thrall to the car, America went from a farming-based society centred on small- town morality to an industrialised behemoth where the new cultural hero - personified by Ford himself - was the big city capitalist. The new frontier was not out on the open range or staking a homestead, it was on urban streets and the new horse was a car. Detroit became Motown - Motor City.

From the beginning, America's cars were just as much lifestyle as they were practical. In the Twenties, Ford Motion Pictures was the biggest film producer in the world, spewing out more than 3,000 movies celebrating the adventures to be had behind the wheel of a Ford. Product placement is no newcomer to the film industry; it was there at the birth.

In the Fifties and Sixties, brimming with post-war confidence, America entered the age of drive-in cinemas and suburbs geared around cars. James Dean drove a 1949 Mercury in Rebel Without A Cause and Steve McQueen tore through the streets of San Francisco in a 1968 Mustang in Bullitt. JFK was shot in a Lincoln Continental. Car advertisements featured open roads, blue skies and square-jawed fathers piloting wives and children along new Interstate highways (the biggest public works project in the history of the world). American cars were the best in the world because America was the best in the world.

It ended in the 1970s with the Oil Shock. Suddenly America - and its cars - were vulnerable. Rob Latham, a popular culture expert at the University of Iowa, was given his first car at the same time. 'It was a 1963 Chevy Malibu convertible. I was 16 years old, driving this huge gas guzzler right through the middle of the oil crisis when you were only allowed to buy petrol every other day. It was nuts,' he said. 'I later wrapped it around a telephone pole, but I loved that car.' He now drives a Suburu.

The same thing happened to Detroit. The 1970s triggered the decline of the American car industry and a landscape of huge factories and skyscrapers turned into an urban wasteland. Only last week, the downtown home of Motown records, whose music was born from black workers flocking to the city for the car factory jobs, was bulldozed.

America's tempestuous affair with the car has become a passionless marriage. Americans still need their cars, but the world has changed and they no longer really love them. Chrysler was taken over by Germany's Daimler. Japanese firms, such as Toyota and Honda, are opening plants as Ford shuts down. Cars are not big business. Ford as a company is worth about $15bn - Google is worth $129bn.

US car design and production values have also been criticised. For years American cars have been outperformed by their European and Asian competitors. 'Asian and European design used to be considered a joke in the 1980s. Now it is the standard for cars,' said Lord.

Many of the US cars now on the market copy modest European and Japanese designs and shun the brasher concepts. Ford has brought in two Britons to be in charge of the look of its European and US products. Future cars will also be more fuel-efficient and aware of green issues. That is probably good for the environment, but represents a huge shift in what a car actually means to Americans - and what America means to itself.

The Hollywood car of choice now is not the 1946 Fat Fender Ford Coupé of John Travolta's 'Greased Lightning' or Jayne Mansfield's Buick Electra. It is the Toyota Prius, an energy-efficient hybrid driven by Cameron Diaz and Leonardo di Caprio. And the king of the recent SUV craze is the far from sexy Hummer, a boxy military-style vehicle, inspired by the 1991 Gulf war, that encloses its owner in a protective shell. A car born of looking for enemies, not rolling down the windows and hitting the road.

Latham says his students no longer see their cars as an essential expression; their Toyotas and Hondas are just vehicles. They boast of iPods or computer games, not their 'wheels'.

'They are like walking cyborgs with all these things attached to them. Cars have become functional. They are not statements anymore. Electronics are,' he said.

Lord agrees: 'Young people do not have that same set of cultural signs. Their cultural landscape is about technology and the internet, not about convertibles and driving across America.'

The Age of the American car is passing into nostalgia. Latham once studied a slew of road movies from the early 1990s in which old American cars were nostalgically treated. The most famous was Thelma and Louise, in which two put-upon women find freedom in an open-top T-Bird. At the end of the film, the heroines hold hands and drive off the edge of a cliff.

It is a fitting image for the death of a slice of the American Dream. After decades of the car being so much more than just a mode of transport - of symbolising industry, art, freedom, sex, a triumphant America - it has now become simply a way of getting from A to B.
Sea energy to power Britain

Waves and tides could generate 20 per cent of electricity and replace nuclear fuel, report says

Juliette Jowit, environment editor
Sunday January 29, 2006
The Observer

Surrounded by some of the world's roughest seas, Britain could generate a fifth of its electricity by harnessing the power of tides and waves.

The potential of marine energy is revealed in a report by the government's energy advisers. Wave and tidal power could replace the electricity that is currently produced by UK nuclear power stations, they state, and could prevent the need for Britain to rely on increased Russian gas imports.


Sea energy to power Britain

Waves and tides could generate 20 per cent of electricity and replace nuclear fuel, report says

Juliette Jowit, environment editor
Sunday January 29, 2006
The Observer

Surrounded by some of the world's roughest seas, Britain could generate a fifth of its electricity by harnessing the power of tides and waves.

The potential of marine energy is revealed in a report by the government's energy advisers. Wave and tidal power could replace the electricity that is currently produced by UK nuclear power stations, they state, and could prevent the need for Britain to rely on increased Russian gas imports.

Article continues
Harnessing the sea, particularly around Cornwall and the north of Scotland, with machines that capture the movement of tides and waves, has long been a dream of scientists. In recent years the quest for clean, renewable power to replace polluting fossil fuels has taken on a new urgency as the world battles to reduce carbon emissions from coal, oil and gas which are the biggest cause of climate change.

Until now, marine power generators have been limited to a couple of small prototypes, considered too futuristic to take seriously as the answer to the planet's energy problems. The study by the Carbon Trust, which advises the government on clean energy, challenges that. It predicts tidal and wave power generators could be supplying a significant amount of power to the electricity grid by the end of this decade.

Its report follows a £3m, 18-month research project into how marine energy generators could work, part of £50m of support programmes promised by government. The report, which is being studied by ministers, says that the opportunities for machines which use the power of waves to produce electricity are 'considerable'. Based on the number of sites with reliable tides and waves and close enough to connect to the mainland, such equipment could be supplying a fifth of the country's current electricity needs over following decades.

Given Britain's long coastline, close to the strong currents of the Atlantic, marine power would also help to solve another of the government's key priorities - reducing reliance on imported energy sources, said John Callaghan, one of the trust's programme engineers.

'The UK leads the world in marine renewables technology,' he said. 'Given our superb natural resources and long-standing experience in off-shore oil and gas, ship-building and power generation, the UK is in a prime position to accelerate commercial progress in the marine energy sector.'

The report was welcomed by environmentalists: 'Solutions to climate change and the threat and expense of nuclear power exist; we just need the political will to implement them,' said a spokesman for Greenpeace.

However the Carbon Trust also highlights problems. The new technology will need investment by the government and private companies and there is no reliable forecast for when it will be available on the large scale, said Callaghan. There are concerns that power generators at sea would be expensive to connect to the electricity grid, could not always provide power when it was needed, and may pose problems for sea life.

Dr Jon Gibbins of Imperial College, London, questioned how much marine power could meet Britain's aim of tackling climate change because that would require global agreement to reduce carbon. Many countries did not have suitable sites and could not afford the new technology, he said. 'That doesn't mean we can't try it [marine power] and won't do it,' he added. 'But if you want to rely on marine technologies to displace fossil fuel use you're being very optimistic.'

The World Wildlife Fund said it was against tidal barrages (which are not covered by the trust's report) that create huge physical barriers to marine life in sensitive estuaries, but it supported the harnessing of tidal and wave power as long as sites were chosen carefully.

Callaghan said the trust had identified 'tens, possibly hundreds' of suitable sites for wave power, principally off south-west England and north-west Scotland, and a dozen sites for tidal power turbines, half of them in the Pentland Firth between the Scottish mainland and the Orkneys.
Georgia cuts Russian embassy gas

Georgia has cut off gas supplies to the Russian embassy in the country, after blaming Moscow for its energy crisis during freezing weather.

The mayor of the capital, Tbilisi, said it was more urgent to heat homes than buildings used by those taking part in an "energy blockade" on Georgia.

Many Georgians have been without gas or electricity after blasts wrecked a pipeline from Russia.

Moscow said supplies were now repaired and services would resume on Sunday.

The BBC's Natalia Antelava in Tbilisi says much of Georgia is in darkness.

The crisis comes during the coldest winter for decades, with temperatures of -20C.


My kids are freezing and my patience is running out
Lia Davitashvili

Georgian President Mikhail Saakashvili described the unexplained loss of the gas pipeline last Sunday as a planned act of sabotage by the Russian officials.

He said it was time for Georgia and the rest of Europe to look for alternative energy supplies.

Officials have already struck a deal with Iran to provide gas to ease the crisis, but Iranian gas is not expected to reach Georgia until Sunday night at the earliest.

The Kremlin said Mr Saakashvili's statements were outrageous and denied foot-dragging over the repairs to the pipeline.

Many Georgians have been trying to keep warm around makeshift wood-burning stoves, or queuing for hours to buy kerosene or bottled gas.

'Tense relationship'

"My kids are freezing and my patience is running out," Lia Davitashvili, a Tbilisi resident who has been without gas for a week and electricity for three days, told Reuters news agency.

Chechen rebels have been blamed for previous damage to pipelines.

But our correspondent says many of Mr Saakashvili's countrymen agree with him.

She says it is widely believed that Russia is simply punishing Georgia for its pro-Western course and its desire to join Nato and rid itself of the Russian military presence.

Georgian officials have promised that the energy crisis will soon be over, but our correspondent says the real challenge will be to fix the damage the crisis has done to Georgia's already tense relationship with Russia.
Scientists Find Frozen Methane Gas Deposit - Yahoo! News

LOS ANGELES - Scientists have discovered an undersea deposit of frozen methane just off the Southern California coast, but whether it can be harnessed as a potential energy source is unknown.

In recent years, there has been a growing interest in tapping methane hydrates, ice-like crystals that form at low temperatures and high pressure in seabeds and in Arctic permafrost.

Scientists estimate that the methane trapped in previously known frozen reservoirs around the globe could power the world for centuries. But finding the technology to mine such deposits has proved elusive.

The newly discovered deposit, believed to be substantial in size, was found about 15 miles off the coast at a depth of about 2,600 feet, at the summit of an undersea mud volcano. Scientists were conducting an unrelated study when they came across the volcano, which sits on top of an active fault zone in the Santa Monica Basin.

The discovery is detailed in the February issue of the journal Geology.

The ecosystem surrounding the methane hydrate site was unlike any of the other vast hydrate deposits around the world. Scientists found seashells and clams with unique chemical characteristics, suggesting the area experiences an extreme flux of methane gas mixing with water, said Jim Hein, a marine geologist at the Menlo Park.

In additional to technical problems standing in the way of mining methane hydrates, Hein said mining this deposit probably would be difficult because of its proximity to shipping lanes from Los Angeles and Long Beach.

Some scientists also worry about the environmental effects of such large-scale gas deposits. Hydrates are estimated to contain about three times as much methane as is currently in the atmosphere, and some scientists say releasing it could lead to global warming and change the world's climate.

___

Thursday, January 26, 2006

Amazon Pipeline Plan Stirs Debate - Yahoo! News

RIO DE JANEIRO, Brazil - Environmentalists were caught off guard when South American leaders announced plans to build a massive natural gas pipeline through the
Amazon rain forest

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Amazon rain forest
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Proponents say the $20 billion project, still in early planning stages, will help satisfy the growing regional demand for gas and help make South America less dependent on outside sources.

But environmentalists say it could damage part of the Amazon — the world's largest wilderness — by polluting waterways, destroying trees and creating roads that could draw ranchers and loggers.

Venezuelan President Hugo Chavez says the pipeline is a central part of his efforts to reduce dependence on the United States and its pressure for free market policies known as the Washington Consensus.

It's "the beginning of the South American consensus," Chavez has said. "This pipeline is vital for us."

At a meeting in Brazil's capital earlier this month, the presidents of Venezuela, Argentina and Brazil promised to come up with the first set of preliminary studies for the 5,000-mile pipeline, stretching from Venezuela to Argentina.

Preliminary plans were promised for a March 10 meeting of the three leaders in Argentina.

Roberto Smeraldi of the Friends of the Earth-Brazil said the short timetable seemed unworkable.

"A government like Brazil's can't do similar studies for projects covering (310 miles) after 10 years of discussion, and now they are going to manage in-depth studies for a (5,000-mile) project in six months?" he said.

Smeraldi said he believed the pipeline theoretically could be built with minimal impact to the environment, but the cost would be prohibitive.

Chavez has said he wants the continent's state-owned oil companies to build and oversee the pipeline.

He said Venezuela and Bolivia "have gas for 200 years" and can supply fuel to Brazil and Argentina, where there is increasing demand for power generation, cooking gas and cars.

The Venezuelan leader estimated the pipeline would cost $20 billion to $25 billion, but Smeraldi said strict adherence to Brazil's tough environmental laws would double the cost.

Brazil's Environment Ministry referred Associated Press calls for comment to the country's environmental protection agency, which would oversee licensing of the project. However, press officer Sandra Sato declined to comment, saying "We can't take a position until there is a request for licensing."

Glenn Switkes of the International Rivers Network said if the pipeline were ever built, it would inevitably foul the environment.

"There are a lot of issues involved: direct construction, the question of drainage, all the roads that need to be built," Switkes said.

Roads are particularly devastating to the Amazon rain forest. They allow ranchers, loggers and miners to flood into areas that previously were inaccessible.

Environmentalists estimate that each road cut into the rain forest causes destruction of the forest for 30 miles on each side of the road within a few years.

"They always say they're going to fly in the pipes and not build roads, but they never do that," Switkes said. "Then they say that the pipeline will go around important ecological areas, but they never do that either because it gets too expensive."

Brazil's rain forest is as big as Western Europe and is thought to contain at least 30 percent of all plant and animal species on the planet. Experts say as much as 20 percent of its 1.6 million square miles has already been destroyed by development, logging and farming.

Analysts also questioned the economic wisdom of the plan, especially after Brazil's government-run oil company announced it would invest $18 billion to develop the country's natural gas fields.

"Both Brazil and Argentina have gas fields large enough to cover their own domestic demands. I don't see why they would like to undertake this hugely costly project, with money they don't have, not to mention environment costs," said Norman Gall, executive director of the Fernand Braudel Institute of World Economy.

The plan also seems to conflict with other projects proposed for the region.

"If the government goes ahead with this pipeline, it will have no money for any other type of investment," Smeraldi said.

RECOMMEND THIS STORY

Wednesday, January 25, 2006

Sea energy 'could help power UK'

Environment Correspondent, BBC News website



Tidal and wave have got to supply 20% of Britain's needs; if we don't, we've got a big problem

Martin Wright
Wave and tidal power can provide a fifth of the UK's electricity needs, according to a new report.

The Carbon Trust, which helps firms develop low-emission technologies, urges the government to increase support for wave and tidal concepts.

They are currently costly ways of generating electricity but the Trust's report says prices will come down.

Investment now could help Britain establish a global lead in these technologies, it says.

In its 18-month research programme the Trust has looked at wave and tidal stream generation, leaving out other approaches to tidal power such as barrages which it describes as "mature".

A barrage on the Rance estuary in northern France has been operating since the 1960s but the concept has been restricted by concerns over cost and local environmental impact.

Wave-based devices generate electricity from movements of the sea surface, whereas tidal stream installations sit on the sea floor and use the regular ebb and flow of tides.

"Wave and tidal stream technologies are at an earlier stage of development than solar and wind which are more mature," said the Carbon Trust's programme engineer, John Callaghan.

"It will cost more than other renewables for the first few hundred megawatts generated, but beyond that there is potential for costs to reduce," he told the BBC News website.

Powerful sites

Despite Britain's long shoreline and the vast power contained in its breakers and tides, the Carbon Trust believes only about one fifth of the country's electricity could economically come from the sea.


The tidal flow at Strangford Narrows will soon be generating electricity
It says that wave farms could generate 50 terawatt-hours (TWh - one thousand million kilowatt-hours) per year, and tidal stream installations a further 18TWh.

These figures compare to the current UK total consumption of 350TWh per year.

"You need a good site for wave or tidal energy, but you also need access to the site, you need a grid connection," said John Callaghan.

"There is particular potential in north-west Scotland and south-west England; about half of the total tidal stream resource is in the Pentland Firth [between the Scottish mainland and the Orkneys]."

The report says the government should increase support for these incipient technologies and develop "a clear long-term policy framework of support to the sector to give greater investment certainty".

While the Department of Trade and Industry does provide financial incentives, the government's energy review, launched on Monday, barely mentions marine technologies.

'Sea-change'

Currently, only a handful of wave and tidal stream devices are installed around the UK.

Scotland hosts two prototype wave machines, the Pelamis deep-water system and the Limpet shoreline device, while Marine Current Turbines has been testing a prototype tidal stream concept in Devon and is about to install a commercial device at Strangford Narrows in Northern Ireland.

"We do believe that very quickly we can get down to the same costs as offshore wind," said Marine Current Turbines managing director Martin Wright.

More importantly, he says, assumptions about energy within Britain have undergone a sea-change.

"There has always been an assumption that the price of energy was going to be low - two and a half pence per kWh - and we had to drive downwards towards that price," he told the BBC News website.

He added: "There was no conception we'd be entering a world where energy was short; now it's becoming clear that for the first time in history we are going to become a considerable energy importer, with concentration of fossil fuels in a few hands, such as Russia with natural gas.

"We're now entering a stage where tidal and wave have got to supply 20% of Britain's needs; if we don't, we've got a big problem."

According to the Carbon Trust, the benefits of ramping up investment in marine generation would be considerable, providing not only a reliable source of power, but the chance of dominating a global market in the same way that Danish companies took an early lead in the wind turbine industry.

Richard.Black-INTERNET@bbc.co.uk
Shares in BOC soar as German rival forced to consider raising �7.6bn bid

British group hits back by reaffirming independence · Linde plays down chances of making hostile offer David Gow in Brussels and Mark MilnerWednesday January 25, 2006The Guardian
Linde, the German industrial gases firm, was last night considering an improved offer for BOC after its British rival rejected a takeover approach pitched at £15 a share, valuing the FTSE 100 business at £7.6bn.
The Wiesbaden-based Linde, which also makes forklift trucks and sold its original refrigeration business two years ago, said only that it would "express itself at an appropriate time". Industry sources in Germany said a merger with BOC would be "a sound strategic fit" for both groups, while France's Air Liquide, the market leader, and German chemicals group BASF both ruled themselves out of the immediate equation, dashing hopes of a bidding war. Nevertheless, shares in BOC closed 243p higher at £13.94p - a gain of 21%.
WWF-UK: Energy Review is a nuclear smokescreen

Energy Review is a nuclear smokescreen
Monday 23 January 2006
"Tony Blair has misleadingly positioned nuclear power as a solution to climate change" says Andrew Lee, Director of Campaigns for WWF UK, commenting on the launch of the consultation for the UK Energy Review, 23 January 2006.
Commenting on the launch of the consultation for the UK Energy Review, Andrew Lee, Director of Campaigns for WWF UK, said: "The Energy Review is nothing more than a smokescreen for the resurgence of nuclear power. It is also an attempt to hide Tony Blair's failure to deliver on a clean energy policy."The Government has failed to take its own advice on energy. The Energy White Paper in 2003 concluded that the UK could meet its climate change targets and secure energy needs through increasing renewable energy and energy efficiency, without resorting to new nuclear power plants. However the Prime Minister has failed to capitalise on a number of key opportunities to reduce energy demand and the UK's rising greenhouse gas emissions. "On housing the government appears to be backsliding on manifesto promises to effectively tackle the energy efficiency of new and existing housing - and with housing accounting for a third of greenhouse gas emissions in the UK, action on this sector is crucial. The government has further failed to implement effective measures on energy efficiency in commercial buildings and promote the uptake of Combined Heat and Power (CHP) - both of which were recommended in the Energy White Paper."Tony Blair has misleadingly positioned nuclear power as a solution to climate change. Nuclear power could only ever make a very small contribution to reducing carbon emissions and it does not address emissions from transport - the fastest growing source of emissions. Also new nuclear plants could not be up and running in time to help meet our climate change targets. "It would be much more sensible to increase and diversify the use of renewable energy and make a serious effort to reduce energy waste - just as the Government's Energy White Paper recommended three years ago."
No obstacles to atomic option, says 'nuclear neutral' energy minister

Wicks: 'National security' may justify new reactors · Waste disposal a 'disgrace' - firms must share cost Terry Macalister and Patrick WintourMonday January 23, 2006The Guardian
The energy minister, Malcolm Wicks, believes there are virtually no practical obstacles to a new generation of nuclear power stations being built - although he is adamant no decision has yet been made on whether to give them the go-ahead.
In an interview with the Guardian before today's launch of a consultation period on the government's energy review, he brushed aside potential hindrances and emphasised atomic power's role in tackling greenhouse gas emissions. He said:
Fluent Partners With Utah State University In DOE Nuclear Energy Research Initiative Grant: "

LEBANON, N.H.—(BUSINESS WIRE)—Jan. 24, 2006— Fluent Inc., world leader in computational fluid dynamics (CFD) software and services, today announces its partnership with Utah State University in a Department of Energy (DOE) Nuclear Energy Research Initiative (NERI) grant for the evaluation and improvement of Computational Fluid Dynamics (CFD) turbulence modeling methods for simulating Generation IV nuclear power plant components. "We have chosen FLUENT as the flow solver due to its widespread use in industry, and due to its having previously been coupled to the nuclear industry standard RELAP5-3D thermal/hydraulics code. In addition, FLUENT makes available a large suite of turbulence models ranging from one-equation eddy viscosity models through full second-moment closures. FLUENT also contains large eddy simulation capabilities, with options for several subgrid scale models," said Robert Spall, Professor of Engineering, University of Utah. Generation IV nuclear reactors are being designed to include unprecedented levels of passive safety systems, to increase fuel utilization, and to operate at higher temperatures, enabling efficient hydrogen generation. The new designs also involve flow physics regimes not originally envisaged by traditional nuclear engineering simulation tools, creating an increased need for CFD software in the nuclear engineering field. The initial phase of the Utah State University project (in collaboration with Fluent Inc. and Idaho National Laboratory) involves an assessment of the ability of large eddy simulation (LES) and Reynolds-averaged Navier-Stokes (RANS) closure models available in the CFD solver FLUENT to predict fundamental flows inherent in supercritical-pressure water reactors, gas-fast reactors and very-high temperature reactors. While initial results indicate a favorable level of accuracy, it is anticipated that some improvements can be made in the project's second phase. "We are very excited to be working with Utah State University to build tools that will have an impact on our energy future," said Dave Schowalter, Lead Energy Business Services Engineer at Fluent. "With Fluent providing expert guidance on benchmarking and implementation of turbulence model enhancements, and Utah State bringing their wealth of nuclear engineering experience to the table, the partnership will give a leg up to the next generation of plant designers." About Fluent Fluent is the world's largest provider of computational fluid dynamics (CFD) software and consulting services. Fluent's software is used for simulation, visualization, and analysis of fluid flow, heat and mass transfer, and chemical reactions. It is a vital part of the computer-aided engineering (CAE) process for companies around the world and is deployed in nearly every manufacturing industry. Using Fluent's software, engineers build virtual prototypes and simulate the performance of proposed and existing designs, allowing them to improve design quality while reducing cost and speeding time to market. Fluent's corporate headquarters is located in Lebanon, New Hampshire, USA, with offices in Belgium, England, France, Germany, India, Italy, Japan, China and Sweden. Its CFD software is also available around the world through joint ventures, partnerships, and distributors in Korea, Australia, Brazil, China, Taiwan, the Czech Republic, Middle East, and most European countries. FLUENT(R) is registered trademark of Fluent Inc. For general inquiries contact: Jennifer Correa Fluent Inc. 10 Cavendish Court Lebanon, NH 03766 (603) 643-2600 Ext. 668 jrc@fluent.com
Contact: Fluent Inc.
Jennifer Correa, 603-643-2600 Ext. 668
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Oil Search posts record 2005 revenue - Breaking News - Business - Breaking News:

Shares in Oil Search have slipped lower despite the group posting record revenue on the back of all-time high production and booming oil prices.
The Sydney-based energy company posted a 60 per cent hike in full year sales revenue to $US638.4 million ($A848.03 million).
The massive jump in revenue came from record production of 12.2 million barrels of oil equivalent (Mmboe) in 2005.
This was a 10.2 per cent improvement on 2004 and came despite a month-long shutdown at the Kumul loading terminal in Papua New Guinea.
The news wasn't enough to keep its shares above water with Oil Search losing eight cents to $3.82 in a slightly stronger broader market.
In the group's quarterly report, managing director Peter Botten said Oil Search was considering expanding its planned $US3 billion ($A3.99 billion) PNG gas project to meet growing domestic demand.
"There are strong indications that market demand for gas in Australia will be higher than our initial expectations," Mr Botten said.
A final decision on the scope of the project and an updated development cost would be known by the end of the current quarter, followed by a decision on whether or not to proceed by mid-year.
Oil Search is expecting its 2006 production will be marginally lower after earlier this month selling part of its assets in PNG to Australian Gas Light Company.
It is now targeting between 11 and 11.5 Mmboe after the asset sale discounted about 2.9 Mmboe.
The company's quarterly report showed a strong performance from most assets and an increase in sales revenue for the last quarter of 2005.
Production was 3.4 Mmboe, up from 3.2 Mmboe in the September quarter as the Moran oil field in PNG and the Nabrajah field in Yemen boosted output.
Revenue from sales in the fourth quarter of $US203.9 million ($A270.86 million) was 35 per cent better than the same period in 2004.
However, it was a four per cent drop on the September quarter largely due to lower realised oil prices.
The average oil price realised during the fourth quarter was $US59.18 per barrel, compared to $US63.19 per barrel in the third quarter.
The average oil price realised for the year was $US58.06 per barrel, up on 2004's figure of $US41.48 per barrel.
Mr Botten said the SE Mananda development in PNG was expected to come on stream by the end of the first quarter but development costs had increased.
"Total development costs are now expected to be approximately $US140 million ($A185.97 million), higher than previously expected," Mr Botten said.
"(This is) largely due to delays caused by poor weather and design and scope changes to the development."
Macquarie Equities energy analyst Andrew Blakely said this was only a slight negative on an otherwise positive report.
"The only negative was the increase in costs ... but to a certain extent that had been well flagged," he said.
"Overall it is a pretty strong result."
He said he did not know why shares in the company had fallen and believed still represented a good buy at around the $3.80 price.
© 2006 AAP
FuelCell Energy Announces Sale of Its First 1 Megawatt Power Plant in Japan at Sharp Electronics Manufacturing Facility

Ultra-Clean, Efficient Power Generation Takes on Central Role in Electronic Product Developer's Certification of the Site as a Low-Emission, Environmentally Sound 'Super Green Factory'

DANBURY, Conn.--(BUSINESS WIRE)--Jan. 24, 2006-- FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of ultra-clean electric power generation plants for commercial and industrial customers, today announced that its Asian distributor, Marubeni Corporation (TSE:8002), has sold a one megawatt (MW) Direct FuelCell(R) (DFC(R)) power plant to provide electric power and high-quality heat for a Sharp Corp. production facility in Japan that manufactures advanced flat-screen TVs.

The DFC power plant will provide Sharp's Kameyama manufacturing facility with a portion of its base load electricity needs and supply heat byproduct for air conditioning by means of absorption chilling. The Kameyama factory, situated in the Mie prefecture, occupies 3.5 million square feet (330,000 square meters) and hosts end-to-end production of LCD TVs -- construction of the LCD panels through final product assembly. Sharp estimates its share of the market for LCD panels is over 30 percent worldwide.

"This is our first international megawatt-class installation, showing growing acceptance in Japan of our larger ultra-clean DFC power plants," said R. Daniel Brdar, President and CEO of FuelCell Energy. "The manufacturing sector, one of the 10 vertical markets we continue to target, demands the efficient and firm, 24/7 reliable power generation that our DFC units deliver."

The 1 MW DFC power plant will be part of a green onsite generation power system in which the fuel cells will provide base load power, and a photovoltaic array will provide peaking power. The combined heat and power (CHP) application of the DFC power plant is expected to reduce the Kameyama factory's CO2 emissions by 2,300 tons. Because the plant integrates LCD manufacturing with assembly, Sharp eliminated the need to transport LCD panels between locations, reducing the need for interim packaging material and further lowering CO2 and NO2 emitted by transport vehicles.

"With eight installations in Japan since 2003, and with ratification of the Kyoto Protocol earlier this year, Marubeni has seen a greater commitment from Japanese industrial companies for fuel cell applications to reduce greenhouse gas emissions," said Mamoru Sekiyama, Corporate Senior Vice President and COO, Plant, Power & Infrastructure Projects Division of Marubeni. "FuelCell Energy's DFC products have the lowest carbon dioxide emissions of any fossil-fuel power generation technology in their size range, which makes them consistent with Sharp's goals of pursuing environmental sustainability in every part of its business."

The Kameyama plant is Sharp's first "Super Green Factory" -- so designated for establishing technologies and policies to achieve maximum environmental protection. For example, Sharp recycles 100 percent of its manufacturing process wastewater and introduced a Liquefied Natural Gas cogeneration system -- moves that earned the company the 2004 Japan Sustainable Management Award.

As fuel prices have increased around the globe, the high efficiency of DFC power plants in CHP applications versus other onsite power generating technologies of similar size gives operators an important advantage in effectively managing their fuel costs. The high electrical and thermal efficiencies of DFC units translate into lower fuel use per kilowatt hour of electricity and BTU of heat generated.

Because Japan historically has had few domestic power sources like oil or natural gas, its industries have focused on ways to save energy in their manufacturing operations. For example, the Wall Street Journal (in its Oct. 7, 2005, editions) noted that Japanese companies rely on highly efficient power-generation systems to minimize the fuel they use to manage their energy costs.

Installation of the DFC power plant is expected to be complete by second calendar quarter of 2006. The unit will operate on liquefied natural gas -- supplied via a newly installed 17-kilometer pipeline from Toho Gas. The pipeline eliminates the need for LNG tanker truck transportation of fuel, reducing emissions associated with the delivery vehicles.

C-Energy, a subsidiary company of Chubu Electric, will own the equipment and sell the power and heat output to Sharp. Japan's Ministry of Economy, Trade and Industry (METI) is providing a subsidy.

About Marubeni

The Marubeni Corporation (http://www.marubeni.co.jp/english/index.html), established in 1858, is one of Japan's leading general trading/marketing houses (sogo shosha). The company was ranked as the 25th largest in Fortune Magazine's Global Fortune 500 list for 2002. Marubeni has 12 Divisions with operations that encompass domestic, import/export, offshore trade and investment activities, which range from the development of natural resources to the retail marketing of finished products. The Company, based in Tokyo, conducts these operations through a worldwide business network that includes 52 overseas corporate offices and 28 overseas subsidiaries, for a total of 131 offices in 73 countries.

Marubeni's Utility & Infrastructure Division has been involved in the development of over 20,000 megawatts of power generation worldwide. The Division has expanded its efforts to include distributed generation technologies, power quality & reliability technologies and energy & environmental services.

About FuelCell Energy

FuelCell Energy Inc. develops and markets ultra-clean power plants that generate electricity and heat with higher efficiency than conventional fossil fuel plants and with virtually no air pollution. Fuel cells produce base load electricity giving commercial and industrial customers greater control over their power generation economics, reliability and emissions. Emerging state, federal and international regulations to reduce harmful greenhouse gas emissions consider fuel cell power plants in the same environmentally friendly category as wind and solar energy sources -- with the added advantages of running 24 hours a day and the capacity to be installed where wind turbines or solar panels often cannot. Headquartered in Danbury, Conn., FuelCell Energy services over 40 power generation sites around the globe that have produced more than 80 million kilowatt hours, and conducts R&D on next-generation fuel cell technologies to meet the world's ever-increasing demand for ultra-clean distributed energy. For more information on the company, its products and its worldwide commercial distribution alliances, please see www.fuelcellenergy.com.

Direct FuelCell, DFC and DFC/Turbine are registered trademarks of FuelCell Energy, Inc. All other trademarks are the property of their respective owners. The Company's sub-megawatt DFC fuel cell power plant is a collaborative effort combining its Direct FuelCell technology with a Hot Module(R) balance of plant design from MTU CFC Solutions, GmbH, a subsidiary of D
Saudis, Chinese agree to landmark energy accord


Eric Watkins
Senior Correspondent

LOS ANGELES, Jan. 24 -- Saudi Arabia's King Abdullah bin Abdulaziz al-Saud and Chinese President Hu Jintao, following a recent summit meeting in Beijing, have agreed to a landmark accord on oil, natural gas, and minerals as part of five main areas of cooperation between their two countries.

"China is willing to improve the dialogue and the method of cooperation on energy with Saudi Arabia to raise the level of energy cooperation," Hu said, adding that closer cooperation in the fields of infrastructure construction and telecommunication is also under way.

The new agreement on hydrocarbons, signed by Saudi Arabia's Petroleum and Mineral Resources Minister Ali Al-Naimi and Ma Kai, the head of China's State Development and Reform Commission, is the first between the two governments on overall cooperation in the field of energy.


Neither side provided any details of the agreement, but Saudi Foreign Minister Prince Saud al-Faisal underlined Hu's remarks on hydrocarbons as a main theme of the summit, saying "China is one of the most important markets for oil and Saudi oil is one of the most important sources of energy for China."

Prince Saud said the energy deal would set the framework for specific energy investments between the two sides, and that specific agreements would soon be signed by the two countries' respective national oil companies.

Chinese Foreign Minister Li Zhaoxing said the agreements would be implemented shortly, a point apparently underscored by a report in the Beijing Morning Post, which said Jan. 24 that China and Saudi Arabia planned to build a large crude oil storage facility in China's Hainan province.

The storage capacity of the oil facility is expected to reach 25-30 million tonnes, the paper reported. It said the facility is part of a comprehensive joint project that also includes a refinery and a natural gas storage facility.

The storage site is expected to supply oil to the refinery and house part of China's oil reserves, the newspaper said.

It added that Saudi Arabia would carry out the project with a Chinese petroleum firm, but it did not identify the firm.

Chinese imports up
The new government-to-government agreement comes with China's growing demand for oil, which is increasing by some 15%/year. In 2005, China imported 130 million tonnes of crude oil, up 3.3% over 2004.

China's imports of crude oil from Saudi Arabia have already more than doubled from 8.8 million tonnes in 2001 to more than 20 million tonnes in 2005.

The agreement also caps large-scale energy cooperation between China and Saudi Arabia since 2003, which includes a number of projects already under way.

Among them, China's Sinopec is drilling for gas in the Saudi desert and building a refinery with Saudi Aramco in China's Fujian province, while Saudi Aramco has begun engineering work with Sinopec on a second refinery in China's Qingdao city.

Contact Eric Watkins at hippalus@yahoo.com.