Monday, January 29, 2007

West looks to bypass Russia for energy


Obscure republics of the former Soviet Union have taken centre stage in the new Cold War: the struggle to secure supplies of oil and natural gas.
Last month, without much ceremony but with huge ambition, engineers in Azerbaijan opened the taps at the Shah Deniz gas field in the Caspian Sea that should in the future supply western Europe. For now, it passes through Georgia into Turkey, circumventing two conflict zones, but, crucially, by--passing Russia altogether.


Map of the gas piplines - click to enlarge
For Azerbaijan, a country of just eight million people still struggling to remove the Russian yoke, the opening represented a leap forward. For Europe and America, it was a triumph over Moscow.
Russia, emboldened by record energy prices and Vladimir Putin's muscular presidency, is using its vast resources — it sits on 25 per cent of the world's proven gas reserves — as a blunt political weapon.
Last winter it turned off the gas to Ukraine in a row over prices, leaving millions to shiver. It did the same to another former Soviet republic, Belarus, in December, shutting an oil pipeline that supplies much of south-eastern Europe.
The breaks in supply were brief but the damage to the reputation of Gazprom, the Kremlin-controlled energy giant, was long lasting. In Europe, which receives a quarter of its gas and crude oil from Russia, the dangers of relying on a narrow range of sources were brought home.
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As a riposte to Russian belligerence, the opening of the South Caucasus pipeline, which is run by BP from Shah Deniz, could not have been better, despite initial technical problems that have seen gas output stopped twice. BP also operates a parallel oil pipeline, the 1,100-mile BTC (Baku-Tblisi-Ceyhan), which came on stream last year.
"Azerbaijan has wanted for a long time to look west and this gave them the chance to realign," said Peter Davies, the chief economist at BP.
America leant considerable political backing to the project. Daniel Fried, an assistant secretary of state at the State Department, said: "It is important to develop multiple routes and non-Russian routes, but that doesn't mean anyone is going after the Russians. Russia will be a major supplier to Europe but transparency is critical."
Washington hopes that encouraging competition in markets around Russia will encourage reform there.
"We are trying to convince the Russians we mean what we say about open systems and that there is a lot of money in it. They are going to make billions of dollars, it's just a question of in what manner," said Mr Fried.

The oil pipeline from Azerbaijan to Georgia
This month the EU issued a dramatic review of energy policy, which demanded cuts in greenhouse gas emissions and stressed the need for closer ties with central Asia and the Caucasus "to facilitate the transport of Caspian energy resources to the EU".
The Caspian Sea's other -littoral states include Kazakhstan and Turkmenistan, which, thanks to the BTC and South Caucasus pipelines, now also have an opportunity to bypass their traditional master, Russia, which has often paid prices lower than those in European markets.
Both countries co-operate with US oil giants on exploration, while last Thursday, Kazakhstan and a group of international oil companies signed a memorandum of understanding on exporting oil through the BTC.
Russia has hit back at recalcitrant former satellites — Mr Putin has mentioned doubling gas prices for Azerbaijan — but his options may be limited. Norway, a major gas supplier to Britain, provides a reliable alternative and Turkey, which is keen to join the EU, has ambitions to become a mass distribution centre for gas and liquid natural gas, which is shipped principally from Algeria and Egypt.
Another proposal, the Nabucco pipeline, would begin in Turkey, receiving gas from various sources and sending it to Austria. "Diversification is the name of the game," said a spokesman for OMV, the Austrian conglomerate leading the proposal. "Everybody wants to avoid depending on one source."
West looks to bypass Russia for energy


Obscure republics of the former Soviet Union have taken centre stage in the new Cold War: the struggle to secure supplies of oil and natural gas.
Last month, without much ceremony but with huge ambition, engineers in Azerbaijan opened the taps at the Shah Deniz gas field in the Caspian Sea that should in the future supply western Europe. For now, it passes through Georgia into Turkey, circumventing two conflict zones, but, crucially, by--passing Russia altogether.


Map of the gas piplines - click to enlarge
For Azerbaijan, a country of just eight million people still struggling to remove the Russian yoke, the opening represented a leap forward. For Europe and America, it was a triumph over Moscow.
Russia, emboldened by record energy prices and Vladimir Putin's muscular presidency, is using its vast resources — it sits on 25 per cent of the world's proven gas reserves — as a blunt political weapon.
Last winter it turned off the gas to Ukraine in a row over prices, leaving millions to shiver. It did the same to another former Soviet republic, Belarus, in December, shutting an oil pipeline that supplies much of south-eastern Europe.
The breaks in supply were brief but the damage to the reputation of Gazprom, the Kremlin-controlled energy giant, was long lasting. In Europe, which receives a quarter of its gas and crude oil from Russia, the dangers of relying on a narrow range of sources were brought home.
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document.write('');
As a riposte to Russian belligerence, the opening of the South Caucasus pipeline, which is run by BP from Shah Deniz, could not have been better, despite initial technical problems that have seen gas output stopped twice. BP also operates a parallel oil pipeline, the 1,100-mile BTC (Baku-Tblisi-Ceyhan), which came on stream last year.
"Azerbaijan has wanted for a long time to look west and this gave them the chance to realign," said Peter Davies, the chief economist at BP.
America leant considerable political backing to the project. Daniel Fried, an assistant secretary of state at the State Department, said: "It is important to develop multiple routes and non-Russian routes, but that doesn't mean anyone is going after the Russians. Russia will be a major supplier to Europe but transparency is critical."
Washington hopes that encouraging competition in markets around Russia will encourage reform there.
"We are trying to convince the Russians we mean what we say about open systems and that there is a lot of money in it. They are going to make billions of dollars, it's just a question of in what manner," said Mr Fried.

The oil pipeline from Azerbaijan to Georgia
This month the EU issued a dramatic review of energy policy, which demanded cuts in greenhouse gas emissions and stressed the need for closer ties with central Asia and the Caucasus "to facilitate the transport of Caspian energy resources to the EU".
The Caspian Sea's other -littoral states include Kazakhstan and Turkmenistan, which, thanks to the BTC and South Caucasus pipelines, now also have an opportunity to bypass their traditional master, Russia, which has often paid prices lower than those in European markets.
Both countries co-operate with US oil giants on exploration, while last Thursday, Kazakhstan and a group of international oil companies signed a memorandum of understanding on exporting oil through the BTC.
Russia has hit back at recalcitrant former satellites — Mr Putin has mentioned doubling gas prices for Azerbaijan — but his options may be limited. Norway, a major gas supplier to Britain, provides a reliable alternative and Turkey, which is keen to join the EU, has ambitions to become a mass distribution centre for gas and liquid natural gas, which is shipped principally from Algeria and Egypt.
Another proposal, the Nabucco pipeline, would begin in Turkey, receiving gas from various sources and sending it to Austria. "Diversification is the name of the game," said a spokesman for OMV, the Austrian conglomerate leading the proposal. "Everybody wants to avoid depending on one source."
Landowners plant trees to consume gases -

COEUR D'ALENE, Idaho - Some landowners in the Pacific Northwest are planting new forests of trees to consume greenhouse gases and potentially buffer climate change, in a business called carbon forestry.
The Nez Perce Tribe of Idaho recently planted 5,000 acres of new forest along the Clearwater River and is in the process of selling carbon credits from the land. The state of Idaho also is exploring the idea as a way to get more value out of its timber.
The trees can be worth money to energy companies and other businesses under increasing pressure to offset the carbon dioxide they emit, said Ted Dodge, director of the National Carbon Offset Coalition of Butte, Mont.
"We believe this is going to be the largest commodity market in the world," Dodge told a group of foresters and land managers earlier this week, adding: "This is going. The train has left the station."
Through a U.S.
Department of Energy' name=c1> SEARCHNews News Photos Images Web' name=c3> Department of Energy grant, Dodge spent the week crossing Idaho to explain the concept, hoping to find an extra 12,500 metric tons of forest-based and crop field-based carbon to sell to traders on the Chicago Climate Exchange.
The concept may be new to a state long dependent on turning trees into lumber. However, an acre of these trees can consume a ton of the gas from the atmosphere each year.
The money in the trees isn't much — about $4 an acre. At current carbon prices, trees are still worth far more dead than alive, but landowners with no intention of cutting their trees might find an extra source of income through carbon credits, Dodge said.
"It's money they wouldn't have gotten otherwise," he said.
There are a number of conditions. Primarily, the trees must be planted on barren land or places where natural disasters, including wildfire, have killed off the forest. The landowner also must agree to keep the land forested for a set number of years.
Farmers may also tap into the project by agreeing to no-till or low-till practices just like forests, Dodge said.
Landowners are paid a set price for each ton of carbon stored by these newly planted trees or undisturbed fields. The going rate this week on the Chicago Climate Exchange was $3.80 per ton. Businesses and organizations that produce carbon dioxide buy credits on the exchange to help offset their emissions.
In Europe, where carbon dioxide emissions are capped by law, the price of carbon has topped $20 a ton.
The system is voluntary in the United States, but dozens of organizations are now participating, including steel producers, energy companies and even the state of New Mexico.
Several states, including California, are beginning to regulate emissions on their own. A national standard would be easier to follow than dozens of separate state rules, said Neil Sampson, a Virginia-based forestry consultant to the National Carbon Offset Coalition.
When a national system is developed, the price of carbon credits is expected to rise, Sampson said. Forestry will likely play a marginal role in reducing greenhouse gas emissions, but Sampson believes it could be a way for landowners to make enough money to pay their tax bill while also helping stabilize the climate.
"We can't solve the whole problem but we can nip away at the edges," he said.
The Nez Perce Tribe has one of the biggest projects in the region. The trees were planted on land once forested but long ago converted to agricultural lands on the advice of the federal government.
The land wasn't the best for crops and the tribe prefers to see it reforested, said John DeGroot, forestry director for the Nez Perce. The idea of selling carbon credits from these newly planted forests is appealing, he said, because it offers the chance to make money to manage the land and pay for other reforestation.
But at current prices, DeGroot said the tribe is lukewarm about signing any final agreements on the sale of carbon credits. Although a ton of carbon is worth twice as much now as it was last year, many foresters say the price would need to reach about $12 a ton before it becomes worthwhile to grow carbon forests.
"We're ready to sell if and when the carbon markets come into play," DeGroot said.
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Prince Charles on anti-global warming trip to US -

LONDON (AFP) -
Prince Charles' name=c1> SEARCHNews News Photos Images Web' name=c3> Prince Charles has left on a visit to the United States where he will highlight the government efforts to fight global warming.
Charles and his wife Camilla took a British Airways flight for Philadelphia, with the couple and their staff using all the first class and some business class seats, the Press Association news agency said Friday.
The couple were traveling aboard a commercial flight after Clarence House announced sweeping changes to the royal household's travel plans as part of the fight against global warming.
On Sunday, Charles will receive the Global Environmental Citizen Award from Harvard Medical School's Center for Health and the Global Environment.
He will receive the award from last year's recipient, former US vice president
Al Gore' name=c1> SEARCHNews News Photos Images Web' name=c3> Al Gore.
"The prince's visit will emphasise the importance which the UK Government places on climate change as a key international priority," aides at Clarence House said earlier this month.
His visit will also focus on youth development, urban regeneration and environmental conservation, they added.
The two-day trip is the couple's second to the United States.
They spent a week in New York, Washington, New Orleans and San Francisco in November 2005, shortly after their wedding in April that year.
During his last trip, Prince Charles urged the US government to use its immense power to fight climate change.
US
President George W. Bush' name=c1> SEARCHNews News Photos Images Web' name=c3> President George W. Bush, who has long been criticised for his refusal to back the Kyoto Treaty on greenhouse gas reduction, pledged during his state of the union speech this week to develop alternative sources of energy and called for Americans to cut oil consumption by a fifth over the decade.
A source close to Prince Charles said a week ago that he was skipping his annual ski holiday to Switzerland in order to lighten his "carbon footprint."
The Daily Telegraph reported that the prince was forced to cancel his holiday after environmental groups accused him of "green hypocrisy" with his plans to travel by plane to pick up the award in New York.
Iran says it's installing centrifuges -

TEHRAN, Iran -
Iran' name=c1> SEARCHNews News Photos Images Web' name=c3> Iran is currently installing 3,000 centrifuges, a top lawmaker said Saturday in an announcement underlining that the country will continue to develop its nuclear program despite U.N. sanctions.
;
The lawmaker, Alaeddin Boroujerdi, said the installation under way at an Iranian uranium enrichment plant "stabilizes Iran's capability in the field of nuclear technology," the official Islamic Republic News Agency reported.
Three inspectors from the
International Atomic Energy Agency' name=c1> SEARCHNews News Photos Images Web' name=c3> International Atomic Energy Agency who arrived in Iran on Saturday are scheduled to visit the uranium enrichment plant in Natanz, Iranian state television reported.
Iran last week barred 38 inspectors from the
United Nations' name=c1> SEARCHNews News Photos Images Web' name=c3> United Nations nuclear watchdog because they come from countries that voted for sanctions on Iran. State television did not give the nationalities of the three inspectors, and the IAEA could not immediately confirm their arrival in Iran.
Iran's announcement appears to be its latest gesture of defiance toward the international community over its nuclear program. It faces the prospect of additional United Nations sanctions unless it stops uranium enrichment by the end of a 60-day period that ends next month.
The
U.N. Security Council' name=c1> SEARCHNews News Photos Images Web' name=c3> U.N. Security Council voted unanimously in favor of economic sanctions Dec. 23 after Iran ignored an earlier deadline to halt enrichment.
Large scale use of centrifuges makes it possible to produce more enriched uranium in a shorter period.
Enriched uranium is used to fuel nuclear reactors and to make nuclear weapons. Many countries, including the United States, believe that Iran is using its nuclear program as a cover to produce an atomic weapon. Iran says its program is only for generating electricity.
Iranian officials had said in recent weeks that the country was moving toward large-scale enrichment involving 3,000 centrifuges, which spin uranium gas into enriched material.
The comments from Boroujerdi, the head of the Iranian Parliament's Foreign Policy and National Security Committee, came a day after IAEA head Mohamed ElBaradei said he believed Iran planned to begin work in February on a uranium enrichment facility underground. The subterranean facility is intended to protect the nuclear project from attack.
There had been speculation the leadership might launch the project at Natanz next month to celebrate the 28th anniversary of the Islamic Revolution that brought the clerical leadership to power.
A senior State Department official warned Iran against accelerating its atomic program. "If Iran takes this step, it is going to confront universal international opposition," Undersecretary of State Nicholas Burns said on Friday. "If they think they can get away with 3,000 centrifuges without another Security Council resolution and additional international pressure, then they are very badly mistaken."
Iran ultimately plans to expand its program to 54,000 centrifuges.
In enrichment plants, centrifuges are linked in what are called cascades. For now, the only known assembled centrifuge cascades in Iran are above ground at Natanz, consisting of two linked chains of 164 machines each and two smaller setups.
Meanwhile, Foreign Minister Manouchehr Mottaki said Iran's decision last week to bar the entrance of IAEA inspectors from countries whose governments voted in favor the U.N. sanctions resolution was within Iran's legal rights.
"This decision is lawful and will not harm our cooperation with the IAEA," Mottaki said Saturday.
____
Fuel cell automatically throttles its power -

A fuel cell that efficiently regulates its own power output based on the amount of hydrogen it is fed has been developed by US researchers. The simple control mechanism could extend the range of devices that can practically be powered using fuel cells.
Fuel cells generate electricity by combining hydrogen and oxygen to produce electricity and waste water. They are a cleaner alternative to petrol and diesel but currently remain experimental.
Although the system sounds simple enough, controlling a fuel cell's power output by feeding in more or less hydrogen has not been practical until now, says Jay Benziger, the chemical engineer at Princeton University in New Jersey, US, who developed the new fuel cell.
Engineers have tended to feed a steady supply of hydrogen and oxygen into their cells, in part to ensure that the gases will force waste water out of the system. But this causes some of the hydrogen to flow through the cell unused, meaning it must then be captured and recycled.
It also means the power output cannot be throttled back by simply lowering the input of gases, unlike a simple petrol engine. If it is necessary to lower the power output, conventional systems simply shunt current to attached resistors, which is less efficient.
Waste not
The new cell instead harnesses its own waste water to ensure that the hydrogen fed is matched by the power output. The reaction chamber, in which hydrogen and oxygen combine to generate water and produce electricity, is connected to a reservoir containing water. Gravity pulls waste water produced by the cell's reaction down into this chamber.
When more hydrogen is fed to the cell, pressure in the reaction chamber increases, which pushing more water out of the reservoir. This in turn leaves more of the anode exposed to react with the hydrogen, generating more power.
Similarly, when less hydrogen is fed into the system, pressure drops and more water is drawn back into the reaction chamber from the reservoir, covering more of the anode and throttling back the chemical reaction.
The water at the bottom of the pan also keeps the fuel cell humidified, which prevents damage that can occur as it begins to dry out.
"It's actually simpler than most fuel cells," Benziger says. He says it could be more efficient for powering anything that needs about a kilowatt of power, like a lawnmower. As with a conventional gas-powered lawnmower, the user would be able to vary the speed simply by controlling the gas.
Journal reference: Chemical Engineering Science (Vol 62, p 957)
Thirst for biofuels drives Great Corn Rush

It was little wonder that Steve Ruh arrived back at his Illinois farm smiling on Friday evening.
The fields were barren and blanketed in snow and it is three months before this year's planting season even begins, but he had just struck a deal with his grain broker to deliver 15,000 bushels of maize at $4 (just over £2) each — for next December.
Last year he and his wife Elizabeth were selling maize at $2.20 a bushel, while in 2005 they were reliant on federal subsidies that kick in when the market price dips below $2.
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The dramatic price surge reflects the Great Corn Rush sweeping the fertile plains of America's Mid-West and transforming its farming heartlands.
The explanation is simple.
Maize is in high demand to make ethanol, a clear, almost odourless liquid that can be blended with petrol in a biofuel that America's leaders hope will reduce reliance on foreign oil, bring down prices at the pumps and, most controversially, help reduce the greenhouse gas emissions that may be contributing to global warming.
Last year the Ruhs grew 180,000 bushels of maize on their 2,200 acres and 90per cent of it was carried by barge to New Orleans for export abroad. This year they are hoping to harvest 200,000 bushels but only half of that will end up overseas.
They will drive the other 100,000 bushels from Ruh Farm, near the town of Big Rock in northern Illinois, to a state-of-the-art $140million ethanol plant that opened last month 30 miles to the west.
Encouraged by a government tax credit worth 51¢ per gallon of ethanol produced, Cargill, the agricultural corporation, expects to manufacture 100million gallons a year at the site.
The ethanol craze received a boost from President George W Bush in his State of the Union address last week. As part of his cherished but distant goal of energy independence, he increased the target for production of biofuels to 35billion gallons a year by 2017 — a six-fold rise on today.
Politicians who oppose ethanol subsidies do so at their peril in the Mid-West — Senator Hillary Clinton's low poll figures in Iowa partly reflect her stand against federal support. "Ethanol is revitalising rural America," said Mr Ruh, 37, who grew up on his family's farm nearby.
"Our fathers and grandfathers have experienced boom and bust, but we are cautiously optimistic about the future. We're not buying a new house yet but let's say we're thinking about it."
Holding their 11-month-old daughter Berlyn, Mrs Ruh, 30, added: "And maybe we'll be able to afford to expand our family earlier than we expected."
The federal push for ethanol has a diverse array of critics — free marketeers, global warming sceptics, oil companies, livestock farmers and, not least, environmental groups alarmed by the carbon emissions from the coal or gas required to heat the maize in the manufacturing process.
Brazil, by contrast, produces ethanol with much less environmental impact from sugar cane.
But Mr Ruh is convinced that technological advances will soon win round the doubters. "Ethanol is no gimmick," he said. "America needs alternative fuels to survive."
The new gold rush: how farmers are set to fuel America's future

Rush to grow corn for ethanol - but is it the best solution for environment? Ed Pilkington in Churdan, IowaFriday January 26, 2007The Guardian A farmer at the Tall Corn Ethanol plant in Iowa. Photo: Charlie Neibergall/AP
George Naylor's farm occupies 470 acres of some of the richest agricultural land in the world, alluvial loam deposited by the Wisconsin glacier 10,000 years ago. At this time of year it is a great white void. For miles around there is nothing but snow broken only by the occasional copse or lonely farmstead.
His grandfather, an English migrant from Derbyshire, bought the farm in 1918. Over the years the dictates of the market pushed farmers towards mass production of fewer crops. When George inherited the land in 1976 he had plans for an organic oats farm, but soon found the sums didn't work out.


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So, like all his neighbours, he tore down the fences to make way for tractors and harvesting equipment. He doubled his holding to 470 acres by renting a neighbour's land to add economies of scale. Many farmsteads were razed as their owners drifted into the towns and all that was left was row upon row of corn and soya bean. And that's how George's farm came to look as it does today: a flat mattress of green and gold in summer, a great white void in winter.
Recently George has heard his neighbours say they are taking the final step to turn this heartland of the Mid-West into the Cornbelt of America, ending the rotation of corn and soya bean that has become the norm over the past 30 years.
What is motivating George's neighbours is the rising demand for ethanol, a biofuel that is mixed with petrol to bring down prices at the pump and, though not without controversy, to help reduce carbon dioxide emissions that contribute to global warming.
Even before this week, this was a big growth area. Production of ethanol doubled between 2001 and 2005. The chief economist of the US department of agriculture has called it "the most stunning development in agricultural markets today".
Then, on Tuesday night, George Bush placed a rocket beneath the alluvial plains of Iowa. In his state of the union address he announced, as part of his plan to move away from dependence on Middle Eastern oil, an unexpectedly dramatic goal of cutting the use of petrol by 20% over the next decade. To do so, he ramped up the target for production of alternative fuels to 35bn gallons a year by 2017. That's a fivefold increase on present targets, and would require alternative fuel producers to increase by seven times their current output.
In America the alternative fuel that dwarfs any other is ethanol; the plant used most often to produce it is corn; and the state that grows the most corn is Iowa. Corn prices have already started to rise, and the expectation after this week's blast from Washington is that they can only keep rising. So the economic logic for George's neighbours is simple.
Iowa produces almost half the entire output of ethanol in the US. It has 21 ethanol-producing plants and many more are in the pipeline. If three-quarters of those are built, the projection is that the state that exports corn throughout America and around the world will soon begin importing it.
"Bush set out a pretty lofty goal," said Bill Couser, president of Lincolnway Energy, which runs one of the state's largest ethanol plants. "But the group that will make it happen is the American farmer, and throughout history they have always exceeded the challenge."
Ron Litterer is one of those farmers Mr Bush will depend on. He was the president's guest at the White House on Tuesday as a leader of the National Corn Growers Association. He now grows half corn, half soya bean, but next year will grow two-thirds corn to meet the ethanol demand. "This is going to be good for the economy of Iowa. Demand for our crops for energy is bound to grow," he says.
But the sudden rush to corn-based ethanol, which some liken to a new gold rush, is causing jitters among environmentalists at national and local level. Friends of the Earth US reckons that at best ethanol reduces emissions of global warming gasses by 13% compared with petrol, and if production plants use coal to heat the corn in the process of extracting its sugars, as many now do, there is no net benefit.
A preferable solution, the group says, would be cellulosic ethanol fermented from sugars extracted from native perennial plants such as switchgrass. It could reduce emissions by as much as 90% with fewer environmental costs, though the technology required to mass produce it is in its infancy. The organisation's expert on biofuels, David Waskow, says what is being lost amid the ethanol hype is a real debate about how to use energy more efficiently. "It is critically important that we don't replace a system of waste of fossil fuels with a similar waste of biofuels," he says.
On the ground in Iowa, environmentalists are also worried about the impact of the final push to corn. With rising prices for the crop, marginal land which is susceptible to erosion is coming under pressure to be put back into cultivation. With 260m tonnes of soil being washed into the rivers every year, an existing problem could turn into a crisis.
The Iowa Environmental Council points out that corn uses more fertiliser than soya bean and so further dependence on the crop will increase the nitrate pollutants seeping into rivers. Levels are so high that Des Moines, the capital of Iowa, has had to build the world's largest extraction system for nitrates to clean its drinking water. The effects are being felt as far away as the Gulf of Mexico, where every summer an aquatic dead zone develops caused in part by the flow of nitrate-rich water from Iowa down the Mississippi.
Another anxiety is that continuous corn crops are more susceptible to weeds and diseases such as western bean cutworms, a moth caterpillar that attacks the ears of the plant. To control them farmers will have to use more pesticides or turn to genetically modified strains that are insect resistant.
For a farmer like George Naylor, scraping a living from tight margins in an increasingly competitive market, the potential downsides are all too evident. But though he's reflected deeply on the causes of the inevitable drift to industrial farming, and believes passionately in the need for intervention from the centre to tame the anarchy of the marketplace, he knows what he'll do should the scramble for corn continue. "Farmers do what they do too much of the time based on greed or fear, which is not a good recipe for anything," he says. "If the emphasis is on corn to produce ethanol, then that's the way it will be. Everybody will pile in, and I'll be among them."
US answer to global warming: smoke and giant space mirrors

The US government wants the world's scientists to develop technology to block sunlight as a last-ditch way to halt global warming, the Guardian has learned. It says research into techniques such as giant mirrors in space or reflective dust pumped into the atmosphere would be "important insurance" against rising emissions, and has lobbied for such a strategy to be recommended by a major UN report on climate change, the first part of which will be published on Friday.


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The US has also attempted to steer the UN report, prepared by the Intergovernmental Panel on Climate Change (IPCC), away from conclusions that would support a new worldwide climate treaty based on binding targets to reduce emissions - as sought by Tony Blair. It has demanded a draft of the report be changed to emphasise the benefits of voluntary agreements and to include criticisms of the Kyoto Protocol, the existing treaty which the US administration opposes.
The final IPCC report, written by experts from across the world, will underpin international negotiations to devise a new emissions treaty to succeed Kyoto, the first phase of which expires in 2012. World governments were given a draft of the report last year and invited to comment.
The US response, a copy of which has been obtained by the Guardian, says the idea of interfering with sunlight should be included in the summary for policymakers, the prominent chapter at the front of each IPCC report. It says: "Modifying solar radiance may be an important strategy if mitigation of emissions fails. Doing the R&D to estimate the consequences of applying such a strategy is important insurance that should be taken out. This is a very important possibility that should be considered."
Scientists have previously estimated that reflecting less than 1% of sunlight back into space could compensate for the warming generated by all greenhouse gases emitted since the industrial revolution. Possible techniques include putting a giant screen into orbit, thousands of tiny, shiny balloons, or microscopic sulphate droplets pumped into the high atmosphere to mimic the cooling effects of a volcanic eruption. The IPCC draft said such ideas were "speculative, uncosted and with potential unknown side-effects".
The US submission is based on the views of dozens of government officials and is accompanied by a letter signed by Harlan Watson, senior climate negotiator at the US state department. It complains the IPCC draft report is "Kyoto-centric" and it wants to include the work of economists who have reported "the degree to which the Kyoto framework is found wanting". It takes issue with a statement that "one weakness of the [Kyoto] protocol, however, is its non-ratificiation by some significant greenhouse gas emitters" and asks: "Is this the only weakness worth mentioning? Are there others?"
It also insists the wording on the ineffectiveness of voluntary agreements be altered to include "a number of them have had significant impacts" and complains that overall "the report tends to overstate or focus on the negative effects of climate change." It also wants more emphasis on responsibilities of the developing world.
The IPCC report is made up of three sections. The first, on the science of climate change, will be launched on Friday. Sections on the impact and mitigation of climate change - in which the US wants to include references to the sun-blocking technology - will follow later this year.
The likely contents of the report have been an open secret since the Bush administration posted its draft copy on the internet in April. Next week's science report will say there is a 90% chance that human activity is warming the planet, and that global average temperatures will rise another 1.5C to 5.8C this century depending on emissions. The US response shows it accepts these statements, but it disagrees with a more tentative conclusion that rising temperatures have made hurricanes more powerful.
· See the US document hereSpecial reportClimate changeGraphicsCO2 emissionsThe world in the 2050sThe greenhouse effectInteractiveClimate changeCalculate your personal carbon count
India and Russia in nuclear deal

Russia will build four nuclear power reactors in India under a draft deal signed by their two leaders in the Indian capital, Delhi.
It came on the first day of President Vladimir Putin's visit to India. On Friday he will be the guest of honour at Republic Day celebrations.
Indian Prime Minister Manmohan Singh said energy was at the core of Indian-Russian relations.
Russia and India have had historically close links since Soviet times.
On the eve of Mr Putin's visit, the two countries signed two deals on the production and joint development of aircraft and fighter plane engines.
Series of agreements
"Energy security is the most important of the emerging dimensions of our strategic partnership," Mr Singh said as he and Mr Putin signed a memorandum of understanding on the new nuclear reactors.
"Russia's position as a global leader on energy issues is widely recognised."
He also thanked Russia for its support "in lifting international restrictions on nuclear co-operation and assisting India in the expansion of our nuclear energy programme".
The Indian ministry of external affairs press said the four new reactors would be built at Kudankulam, in southern India.
It says the two countries have also signed a series of agreements on scientific, space, aviation and economic cooperation, including giving India access to Russia's satellite navigation system, Glonass.
Russia is already helping India build two nuclear reactors to meet its growing energy needs.
Reacting to China's satellite-destroying weapons test earlier in the week, the two leaders called for a "weapons free outer space".
"The fundamental position of the Russian Federation is that outer space should be absolutely weapons free," Mr Putin told a joint press conference in Delhi.
New Challenges
Mr Singh said he shared that position. "Our position is similar in that we are not in favour of the weaponisation of outer space."
Mr Putin arrived in Delhi on Thursday morning and in a departure from protocol, Prime Minister Manmohan Singh personally was at the airport to receive him.
The two countries have close ties, with India remaining a top buyer of Russian weaponry.
However, the relationship faces new challenges, including competition from the West and the growing economic and military might of China
Signing new co-operation agreements with his Indian counterpart on Wednesday, Russia's Defence Minister, Sergei Ivanov, said a close and trusting relationship with India remained a top priority.
Russia is currently bidding to supply more than 120 fighter planes to Delhi. Moscow faces stiff competition from Western manufacturers, leading a top Russian official to warn of "consequences" should India choose a Western manufacturer.
Russia and India are also rapidly deepening co-operation in the energy sector.
Strategic triangle
Russia has identified India as a new market for its civilian nuclear technology.
For its part, India has declared an interest in securing a stake in future Russian oil and gas field developments.
Future plans aside, businessmen from both countries say urgent action is needed to tackle insurmountable bureaucracy.
The BBC's Russian affairs analyst Steven Eke says when weapons are left out of the equation, trade between Russia and India has actually fallen to its lowest level for more than two decades.
Nonetheless, many Russian diplomats see a special place for India, our analyst says.
They have repeatedly raised the idea of a strategic triangle, uniting Russia, India and China, in an axis opposed to the global dominance of the United States.
It has been stymied by realities on the ground, including the fact that Russia and India are both wary of China's status as an emerging economic and military super-power, our analyst adds.
China admits to climate failings

China is failing to make progress on improving and protecting the environment, according to a new Chinese government report.
The research ranks China among the world's worst nations - a position unchanged since 2004.
After the US, China produces the most greenhouse gases in the world.
The Chinese report, prepared by academics and government experts, ranked the country 100th out of 118 countries surveyed.
Some 30 indicators were used to measure the level of "ecological modernisation" including carbon dioxide emissions, sewage disposal rates and the safety of drinking water.
Global accord
"Compared with social and economic modernisation, China's ecological modernisation lags far behind," said the research group's director, He Chuanqi.

Yet, with a fifth of the world's population, China consumes only 4% of the world's daily oil output, importing about three million barrels a day.
But its unrelenting economic growth will continue to fuel a voracious appetite for energy.
Current plans call for the opening of a new power station every week, most of them coal-fired.
The World Bank estimates that China will grow at 6% per year over the next 15 years, twice the rate expected for the world economy as a whole.
China is also investing heavily in renewable energy with plans to ensure that 15% of its energy comes from renewable sources, above all hydro-power by 2020.
But the BBC's Daniel Griffiths, in Beijing, says that the new report will make worrying reading for China's leaders who have made repeated promises to clean up the country's heavily polluted environment.
Without the biggest economies being part of a framework to reduce carbon dependence, we have no earthly hope of success
British Prime Minister Tony Blair
Living in China's coal heartlands
The country, he says, is paying the price for consistently putting economic development ahead of the environment.
On Saturday, British Prime Minister Tony Blair told leaders gathered at the World Economic Forum in Davos that the Kyoto Accord should be replaced with a more radical deal that "includes all the major countries of the world."
He warned that any deal that did not include binding commitments from China and India would fail to successfully tackle global warming.
"Without the biggest economies being part of a framework to reduce carbon dependence, we have no earthly hope of success," he said.
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Flannery urges climate change action.


The Australian of the Year, scientist Tim Flannery, says the Prime Minister's water plan means little unless governments take urgent action on the bigger issue of climate change.
Professor Flannery received the nation's top honour in Canberra last night, on the same day Prime Minister John Howard announced his $10 billion water package.
Professor Flannery says the nation's lack of water is a symptom of a much larger problem.
"We need to shepherd our water resources very carefully to get through this crisis and the Prime Minister announced a program that I think will go a long way towards doing that," he said.
"But unless we address the overarching issue of climate change, that will be for nought, so we need to address climate change in order to build us that longer-term security."
Professor Flannery has warned he will not hesitate to criticise the Government if he does not agree with its policy.
"Part of the reason people thought I was worthy of this was that they're really concerned about climate change and they want something done about it," he said.
Indigenous youth leader
The Young Australian of the Year Award went to Indigenous youth leader Tania Major.
The 25-year-old says she will use the honour to promote a greater awareness of the issues affecting young people.
"It's just so unbelievable, it's a massive opportunity to be able to use this special award, being Young Australian of the Year," she said.
"To get out there and talk about youth issues - particularly education for Indigenous young people."
Mentor recognised
The Senior Australian of the Year is former speedway champion Phillip Herreen who was confined to a wheelchair after a crash 14 years ago.
He has been recognised for his mentoring of car crash victims and has backed plans by the New South Wales Government to place limits on P-plate drivers.
"They really don't understand the consequences and the impact on not just themselves, but the people that they've got with them and what it does to families," he said.
"It really does have a major impact on families."
In other developments:
The Australian of the Year, Tim Flannery, says he will use the opportunity to try to do something about global warming. (Full Story)
Federal bureaucrats, scientists and a prominent business woman have been award
Climate change report a 'wake-up call' for Howard.


The federal Opposition says new research on climate change commissioned by the world's governments should be a massive wake-up call for Prime Minister John Howard.
A Sydney newspaper has published the report, which is to be presented to an inter-governmental panel in Paris next week.
The report was commissioned by 180 countries and suggests that the greenhouse gases emitted in the 21st century will continue to warm the world for the next 1,000 years.
The research also suggests that there is a 90 per cent chance that human activity is to blame for global warming.
Opposition climate change spokesman Peter Garrett says the report paints a grim picture and should be a wake-up call for the Howard Government.
"I think this report is the most serious warning we've had yet on climate change," he said.
"It means that the bell is tolling on our way of life, on our economy, on the health of the planet, and it means that the bell is tolling on the Prime Minister to stand up and actually show that he's got a policy that will address climate change."
Mr Garrett says Labor would immediately establish a national carbon trading emissions scheme as a first step in demonstrating its serious commitment on climate change.
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Blair sees wider climate deal after Kyoto.


Germany's presidency of the G8 (Group of Eight) countries could lay the foundation for a radical climate deal embracing emerging powers and the United States, British Prime Minister Tony Blair said overnight.
The Kyoto Protocol on climate change, which runs to 2012, aims to slash greenhouse gases but does not include countries like India, China and the United States, responsible for a quarter of the world's industrial greenhouse gas emissions.
Mr Blair used his closing speech at the World Economic Forum (WEF) to highlight a changing mood in the United States, where President George W Bush this week recognised climate change as a challenge and told Americans to cut gasoline use.
"The mood in the US is in the process of a quantum shift," Mr Blair told the packed audience of business leaders in what he said would be his last speech at the forum as Prime Minister.
Mr Blair was unequivocal in his view that global warming needs to be addressed by the major global powers.
"It would be madness not to act to prevent its realisation - just as a precaution. Its challenge is the supreme expression of interdependence. America and China, even if they had no other reason for a relationship ... would need one simply for this alone," he said.
Mr Blair said Germany's presidency of the G8 group of industrialised nations would provide the opportunity for world partners to agree "at least the principles of a new, binding international agreement" to replace Kyoto.
"But one which is more radical than Kyoto and more comprehensive, one which this time includes all the major countries of the world," he said.
Mr Blair said any agreement without binding commitments from the United States, China and India would not be able to deliver.
"If Britain shut down our emissions entirely ... the growth in China's emissions would make up the difference within just two years," he said.
"Without the biggest economies being part of a framework to reduce carbon dependence, we have no earthly hope of success."
Senior officials from advanced and developing countries joined an "informal" conference in Tokyo this week to start work on a follow-up agreement to the Kyoto Protocol.
Among participants were the United States, China and India.
The Kyoto Protocol obliges 35 developed nations to cut emissions of greenhouse gases to 5 per cent below 1990 levels by 2008-12.
But the nations signed up to the protocol account for only about one-third of global greenhouse gas emissions.
- Reuters

Thursday, January 25, 2007

Natural gas will foul air

Southern California's air-quality agency sued state utility officials Tuesday, alleging that imported liquefied natural gas the officials approved for use here could significantly increase the region's smog and set back progress toward clean air.
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Oil companies and other energy providers are planning to spend an estimated $3 billion to build at least four natural-gas pumping stations on California's coast and three more on the west coast of Baja California to meet the region's energy demands.
The California Public Utilities Commission in September approved a standard that will allow energy companies to burn the imported gas to generate power. Because the gas burns hotter than domestic gas, it creates more pollution. The South Coast Air Quality Management District contends the PUC violated state environmental law by making its decision without first determining how the added pollution will affect the environment, said Sam Atwood, a district spokesman.
The problem with the imported gas is that it will emit more nitrogen oxides -- a key component of smog, Atwood said.
"Some tests show it will double the nitrogen oxides," he said. "This will have a huge impact."
The air district regulates emissions from power plants, factories and products in most of Southern California. The region is decades away from meeting clean-air standards for ozone, the pollution created when nitrogen oxides mix with other chemicals in the air.
Atwood said the imported fuel could burn cooler and wouldn't increase pollution if it were mixed with an inert gas such as hydrogen. Some East Coast cities already have taken that step.
"This is completely feasible," Atwood said. "There is no reason they shouldn't be doing this."
'Cannot Afford a Setback'
Michael R. Peevey, PUC president, said pollution would not increase under the standard approved in September. However, it is not as tough as what the air district wanted.
The utilities commission probably will seek a delay of any court action until a re-hearing of the natural-gas standard that is scheduled for March, commission spokeswoman Terrie Prosper said. The re-hearing was requested by the air-quality district, but Atwood said the commission had missed a December deadline to set a hearing.
Peter Hidalgo, a Southern California Gas Co. representative, said the standard that the utilities commission adopted was consistent with findings and recommendations of industry studies.
But air-pollution officials fear a setback in their smog battle because of an anticipated increase in nitrogen oxides from power plants, as well as water heaters, stoves and furnaces that could number in the millions.
"At a time when we are searching for every possible means to further reduce air pollution, we cannot afford a setback that will significantly increase emissions and subject residents to worsened air quality," said Barry Wallerstein, the air district's executive officer, in a prepared statement.
Failing to Meet Standards
In the warm spring and summer months, nitrogen oxides and volatile organic compounds, such as gasoline fumes, react in the atmosphere to create unhealthy levels of ozone, a lung-irritating gas that triggers asthma, nausea, fatigue, headaches and other health problems.
Southern California's worst ozone readings usually are in the Inland area and around Crestline in the San Bernardino Mountains.
For decades, Southern California has failed to meet federal and state health standards for ozone.
Liquefied natural gas, or LNG, is natural gas cooled to minus 259 degrees Fahrenheit so that it becomes a liquid and can be delivered by ocean-going ships from Australia, Asian and Russia to Southern California. It then can be reheated and delivered to homes, businesses and power plants by pipeline.
The supply of natural gas produced within the United States is on the decline at the same time that demand is growing because it is the cleanest-burning fossil fuel, Hidalgo said. Imports are expected to lower gas bills because they would stimulate competition among suppliers, Hidalgo said.
The Southern California Gas Co. is the nation's largest distributor of natural gas.
Reach David Danelski at 951-368-9471 or ddanelski@PE.com
Reach Leslie Berkman 951-893-2111 or lberkman@PE.com
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The private jet set

While the rest of us are wondering if we should stop flying, some celebrities are just clocking up the air miles. Patrick Collinson rounds up some big names with huge carbon footprints Wednesday January 24, 2007Guardian Unlimited Tom Cruise has attracted the wrath of the green lobby for his use of private jets. Photograph: Max Nash/AP
When Tony Blair announced he had no intention of giving up long-haul flights, environmental groups were enraged. Although emissions from aviation account for a small percentage of the greenhouse gases produced by the UK, most campaigners say restricting flights will be an important part of cutting our carbon footprint.
Should I Really Give Up Flying - a programme on BBC2 tonight - explores the arguments for and against giving up air travel. But while the rest of us may be thinking twice before we book that cheap flight, in the land of celebrity they seem to have few qualms about clocking up the air miles.


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When it comes to flying, these are my top 10 eco sinners:
Donnatella VersaceVulgar wealth and Versace have always gone hand in hand, and the latest accessory is a Versace private jet. Green is not an environmental statement, just part of the colour palette. For £10m or so Donatella will fit out your private jet with her trademark leather sofas, or for £100m you can have a Versace 747. No word on whether that includes a leopard skin tail fin.
If that's beyond your budget, there's always the limited edition couture Versace jet bag, a snip at nearly £1,000.
Tom CruiseThe Top Gun star is so disliked by the eco-lobby he has been dubbed "emissions impossible". He is reported to own three private jets - including a recent $20m (£10m) purchase for wife Katie Holmes.
There's a story, never denied by Cruise, that he sent one of those private jets just to pick up some groceries for Katie. But the good news is that the vegetables were organic.
John TravoltaJohn Travolta once starred in a movie about bringing industrial polluters to justice, but in real life he probably has the biggest carbon footprint of any Hollywood star.
He parks his personal Boeing 707 on his front lawn - next to his three Gulfstream jets and a Lear jet. Rather appropriately, he has called his home "Jumbolair". He's already logged 5,000 hours as a pilot - but he did at least put his skills to good use transporting food to victims of Hurricane Katrina in New Orleans.
David BeckhamHis footwork may be fancy, but he gets the red card for his carbon footprint. Just one flight from London to Madrid releases 450kg of carbon into the atmosphere. Add together his international trips last year, and his emissions clock up to an estimated 15,000kg of carbon dioxide.
Once he gets to Los Angeles his pay will go into the stratosphere and so will his carbon emissions. And does he really need to own 15 gas-guzzling cars, including a Lamborghini, two Ferraris and a Bentley?
Victoria BeckhamHer 2002 autobiography was called Learning to Fly and she's never really stopped since. During the World Cup, her plane from Madrid was grounded due to engine failure. So she simply chartered a private jet - at a cost of £21,000 - to get her to Germany on time. That trip alone would equal many people's annual carbon emissions.
Simon CowellThe X Factor judge is not the type to make excuses for his lifestyle. For the X Factor auditions in Dublin, he flew in and out on the same day in a private jet. He says he likes private jets because "the champagne's better and you can smoke, which is a rare pleasure these days at 36,000 feet".
Sharon OsbourneAnother TV star who can't resist the lure of the Learjet. Simon Cowell lent her his private jet to get back home when fire broke out at her mansion.
That was just one of the 300,000 private jet flights in and out of London last year - more than any other capital in Europe and growing at a faster pace than anywhere else in the world.
Phillip GreenHe's the billionaire who owns 2,500 stores including Topshop, Miss Selfridge and Bhs. He avoids paying millions of pounds in tax by living in Monaco, but dumps thousands of kilos of carbon on the rest of us from his cherished Gulfstream jet as he commutes back and forth to his London office.
Meanwhile his Topshop store promotes an ethical clothing range with, it claims, "the highest environmental standards".
Roman AbramovichRoman Abramovich is governor of a far eastern province of Russia - but there's not much chance you'll spot him heading there on Aeroflot. Instead he owns the big daddy of private jets - a Boeing 767 that would normally seat 180 people.
He paid around £56m for the jet - and has spent many more millions fitting it out with bathrooms, giant plasma screens and, according to reports, lots of mahogany, walnut and gold. It's three times heavier than the biggest Gulfstream private jet and emits far more carbon.
The 767 appears to be the monster private jet of choice for billionaires - the founders of Google have also bought one. Meanwhile, they give their employees a $5,000 bonus if they buy a low-emission hybrid car.
Michael O'LearyHe's the environmentalist's public enemy number one. He's the boss of Ryanair, and proudly declares his intention to increase his airlines carbon emissions. He's the only major UK airline not to join the Sustainable Aviation Group - and says his main contribution to the environment will be driving other airlines out of business.
He argues that airlines still only produce 2% of the world's carbon emissions - and says his critics should give up their cars first.
But pressure group Future Forest calculates that each of his customers - that's you and me - emits 600kg of carbon dioxide on each low cost fight - and Ryanair needs to plant a staggering 16.5m trees a year to offset its impact on the climate.
· Patrick Collinson will be talking about the celebrities who love to fly on Should I Really Give Up Flying, which will be shown on BBC 2 tonight at 9pmSpecial reportsEco-tourism Travel and transport Useful toolsCarbon offset calculator
US auto giants safe under Bush energy plan: critics -

CHICAGO (AFP) -
President George W. Bush' name=c1> SEARCHNews News Photos Images Web' name=c3> President George W. Bush has trumpeted new proposals to cut US gasoline consumption and so ease the country's dependence on foreign oil. But critics saw little dramatic in the changes, and nothing to worry the Detroit auto industry.
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The bulk of the reductions targeted by Bush in his State of the Union speech are to come from increased use of alternative fuels, like corn-derived ethanol, by 2017.
That is something the "Big Three" US automakers have been lobbying for but which critics say will be hard to meet, with corn prices at 10-year highs and alternatives to corn ethanol years away.
The plan does call for the first major changes to US automotive fuel economy standards since the 1970s. But the cuts are relatively modest, at an average of four percent a year beginning in 2010 for cars and 2012 for trucks.
"This is a gift to Detroit," said Russell Long, vice president of the Bluewater Network, which lobbies for better fuel economy standards.
"If the president were serious he would call for a doubling of the nation's fuel economy standards," he said. "Instead he's squandering another tremendous opportunity to make substantial cuts in the nation's oil dependence."
Gasoline consumption would fall by three million barrels of oil a day if fuel economy standards were doubled, and this could easily be achieved within 10 years without sacrificing automobile safety or passenger comfort, Long said.
Joan Claybrook, president of consumer group Public Citizen, said that in any case, "ethanol is not widely available and even if (corn) farmers get more subsidies, they won't necessarily meet demand."
"Really what ought to happen is the Congress ought to mandate 40 mile per gallon (six liters per 100 kilometers) fuel economy within eight years -- that is very doable," she said.
But significant increases in fuel economy standards are simply not politically feasible, analysts said.
Detroit's automakers have long fought the "Corporate Average Fuel Economy" program.
CAFE requires carmakers to ensure that their passenger cars average no less than 27.5 miles per gallon, while their trucks -- including truck-based sport utility vehicles (SUVs) -- reach no less than 22.2 miles per gallon.
The federal program gives credits to automakers who beat the standard and imposes fines on those who exceed it.
Japanese automakers have accumulated massive credits because they have only recently begun offering full-sized trucks, and their vehicles have traditionally been smaller and more fuel-efficient than those of General Motors, Ford and DaimlerChrysler.
GM vice-chairman Bob Lutz recently said that tightening CAFE standards "effectively hands the truck and SUV market over to the imports, particularly the Japanese."
He compared forcing automakers to sell smaller, more fuel-efficient cars to "fighting the nation's obesity problem by forcing clothing manufacturers to sell garments in only small sizes."
But David Cole, chairman of the Center for Automotive Research, said the industry was complaining too much about stricter fuel efficiency.
"There will be pressure to increase fuel economy but they'll try to preserve the range of vehicles Americans want... I don't think we'll see dramatic changes in the shape of cars."
Americans are simply not willing to change their driving habits, Cole said, and it would be "dangerous territory" for politicians to do anything that would even hint at restrictions on vehicle size and power.
Applying pressure on the demand side is also unpalatable, said Bruce Harrison, auto analyst with Global Insight.
"Changing consumer behavior requires taxing fuel -- and there's no politician seeking re-election who's going to do that," he said.
Bush sees high-tech route to post-Kyoto world -

WILMINGTON, United States (AFP) - US
President George W. Bush' name=c1> SEARCHNews News Photos Images Web' name=c3> President George W. Bush said new technologies were ushering in a "post-Kyoto" era on how to feed energy-hungry economies on a climate-friendly diet of alternatives to oil.
Bush, who called in his State of the Union speech late Tuesday for cutting US gasoline use by 20 percent over 10 years, warned that the United States had become "exponentially more dependent" on oil imports over the past decade.
He warned that this left the country "vulnerable" to pressure from hostile petroleum-exporting regimes but held out hope that new technologies could help resolve both climate change and energy concerns.
"It's the confluence of national security and economic security concerns and environmental concerns that come together and can be solved at the same time by technologies. It's really what's begun to evolve here in America," he said.
"In other words, we can get beyond the pre-Kyoto era with a post-Kyoto strategy, the center of which is new technologies," he said, referring to the Kyoto Protocol on curbing so-called greenhouse gas emissions blamed for global warming.
US too dependent on foreign oil: Bush.


In his State of the Union address, US President George W Bush has told Congress America has been dependent on foreign oil for too long.
Mr Bush says it is making the country vulnerable to hostile regimes.
He has called for a new goal to cut American petrol usage by 20 per cent over the next 10 years.
The head of the UN's Environment program, Achim Steiner, says the policy reflects a change taking place throughout the United States.
"Whether you're talking civil society, whether you're talking business, whether you're talking bi-partisan representation in the Congress, the pressure on the United States and therefore on the Federal administration to be seen to be acting in response to both the energy challenge and climate change is no longer ignorable," he said.
"And I think what we're seeing is the Bush administration taking incremental steps forward."

Wednesday, January 24, 2007

Quantum Supplies Ford With Hydrogen Fuel Injection Systems for E450 Hydrogen Shuttle Buses

IRVINE, Calif., Jan. 23 /PRNewswire-FirstCall/ -- Quantum Fuel SystemsTechnologies Worldwide, Inc., (Nasdaq: QTWW) today announced that it is thesupplier of the hydrogen fuel injectors to Ford Motor Company for itshydrogen internal combustion engine (HICE) powered shuttle bus program,including the three vehicles delivered December 7th to Parliament Hill inOttawa, Canada for a unique pilot project that will test the vehicles inreal-life conditions. The three buses to be used in Ottawa are part of a larger group oftwenty shuttle buses that will be demonstrated across the United States andCanada. These units form a pre-commercial evaluation of Ford's HICEtechnology under real-world conditions that will help Ford assess theviability of commercially offering vehicles equipped with hydrogen internalcombustion engines. Three Ford shuttle buses equipped with advanced hydrogen internalcombustion engines (HICE) will be included in the Senate shuttle bus fleeton Parliament Hill. The shuttle buses transport parliamentarians and staffbetween buildings of the Parliamentary Precinct. The hydrogen buses willreplace existing gasoline-powered shuttle buses and, in doing so, willreduce engine-related emissions to near-zero levels. "We are honored to be Ford's supplier for hydrogen fuel injectors.Quantum's patented injector has been designed, tested, and validatedspecifically to work with cleaner burning, dry gaseous fuels such ashydrogen, natural gas, and propane," said Alan P. Niedzwiecki, Presidentand CEO of Quantum. "We fully support Ford's view that HICE-poweredvehicles will play an important role as a transitional solution that willenable the emerging hydrogen economy. Interest continues to grow inQuantum's hydrogen hybrid vehicles, both the Hydrogen Prius and theHydrogen Escape Hybrid, as near-term alternatives to reduce emissions andpetroleum usage through the implementation of hydrogen technologies." About Quantum: Quantum and its subsidiary, Tecstar Automotive Group, are leaders inpowertrain engineering, system integration, and manufacturing of packagedfuel systems and accessories for specialty vehicles and applicationsincluding fuel cells, hybrids, alternative fuels, hydrogen refueling, newbody styles, mid-cycle vehicle product enhancements and high performanceengines and drive trains for OEMs and consumers of aftermarket parts andaccessories. Quantum also designs and manufactures hybrid and fuel cellvehicles. Quantum has product commercialization alliances with General Motors, AMGeneral, and Sumitomo. Quantum's customer base includes General Motors,Toyota, Opel, Hyundai, Suzuki, Ford, DaimlerChrysler, AeroVironment, andthe U.S. Army. More information can be found about Quantum's products and services athttp://www.qtww.com. Forward Looking Statements Except for historical information, the statements, expectations, andassumptions contained in the foregoing press release are forward-lookingstatements. Such forward-looking statements include, but are not limitedto, the Company's expectations regarding expected future revenues andoperating results; future opportunities for Quantum; the Company's abilityto fulfill orders in the future; and other statements about the futureexpectations, beliefs, goals, plans, or prospects expressed by management.Such statements are subject to a number of risks and uncertainties, andactual results could differ materially from those discussed in anyforward-looking statement. Factors that could cause actual results todiffer materially from such forward-looking statements include, among otherfactors, prevailing market conditions; the Company's ability to design andmarket automotive products; the Company's ability to meet customerspecifications and qualification requirements; availability of componentparts and raw materials that meet the Company's requirements; and theCompany's ability to source alternative materials and suppliers. Referenceshould also be made to the risk factors set forth from time to time in theCompany's SEC reports, including but not limited to those contained in thesection entitled "Risk Factors" in the Company's Annual Report on Form 10-Kfor the fiscal year ended April 30, 2006. The Company does not undertake toupdate or revise any of its forward-looking statements even if experienceor future changes show that the indicated results or events will not berealized.
U.N. climate panel to project wrenching change -

OSLO (Reuters) - A U.N. climate panel will project wrenching disruptions to nature by 2100 in a report next week blaming human use of fossil fuels more clearly than ever for global warming, scientific sources said.
A draft report based on work by 2,500 scientists and due for release on February 2 in Paris, draws on research showing greenhouse gases at their highest levels for 650,000 years, fuelling a warming likely to bring more droughts, floods and rising seas.
The report by the Intergovernmental Panel on Climate Change (IPCC) may have some good news, however, by toning down chances of the biggest temperature and sea level rises projected in the IPCC's previous 2001 study, the sources said.
But it will also revise up its lowest projections.
"The main good news is that we have a clearer idea of what we are up against," one source said. The report will set the tone for work in extending the U.N.'s Kyoto Protocol, the main international plan for curbing global warming, beyond 2012.
The IPCC will say it is at least 90 percent sure that human activities, led by burning fossil fuels, are to blame for a warming over the past 50 years.
The draft conclusion that the link is "very likely" would mark a strengthening from "likely" in the 2001 report -- a probability of 66-90 percent.
"Quite often much of the debate is 'what level of certainty do we have around some of these phrases?'," said Robert Watson,
World Bank' name=c1> SEARCHNews News Photos Images Web' name=c3> World Bank chief scientist who chaired the previous 2001 report.
Scientists and representatives of governments will meet in Paris from January 29 to review the draft and approve a text. Watson declined to predict any of the 2007 conclusions.
TEMPERATURES UP
But the sources said the new report is likely to foresee a rise in temperatures of 2 to 4.5 Celsius (3.6-8.1 Fahrenheit) this century, with about 3 Celsius (5.4F) most likely.
The 2001 report said temperatures could rise by 1.4 to 5.8C (2.5-10.4F) by 2100 -- but did not say which end of the range was most likely. The IPCC would also narrow the 2001 forecast range of sea level rise of 9-88 cms (3.5-34.7 inches) by 2100.
Bjorn Lomborg, the Danish author of "The Skeptical Environmentalist," said the IPCC would discredit "the rhetoric of catastrophe" that he accused some governments of adopting.
"Yes, climate change is a problem but it's not this over-arching, civilization-destroying thing that the rhetoric of today is telling us," he said.
Even so, the
European Union' name=c1> SEARCHNews News Photos Images Web' name=c3> European Union says any temperature rise above 2C (3.6F) will cause "dangerous" change, for instance with more heatwaves like in Europe in 2003 that killed 35,000 people.
"Even the minimum predicted shifts in climate for the 21st century are likely to be significant and disruptive," the U.N. Climate Secretariat says of the 2001 projection of a minimum 1.4C rise. It says the top of the range would be "catastrophic."
Temperatures have risen 0.6C (1.1 F) since 1900 and the 10 warmest years since records began in the 1850s have been since 1994. The world has warmed about 5C (9F) since the last Ice Age.
Benjamin Santer, a climate scientist at the U.S. Lawrence Livermore National Laboratory, said research in the last decade had expanded from studying surface temperatures to everything from ocean heat content to glacial retreat.
"The system is telling us an internally consistent story -- you can't explain the observed changes ... in the climate system over the second half of the 20th century by invoking natural causes," he said. He said he did not know the IPCC view.
Bush wants to double U.S. emergency oil stockpile -

WASHINGTON (Reuters) - The United States will begin buying oil this spring as part of a plan by the Bush Administration to expand emergency reserves and shore up energy security, the White House said on Tuesday.
President Bush' name=c1> SEARCHNews News Photos Images Web' name=c3> President Bush will call for doubling the Strategic Petroleum Reserve from 727 million barrels to 1.5 billion barrels in his State of the Union speech late Tuesday.
"Expanding the Strategic Petroleum Reserve is a wise and a prudent policy decision that would provide an additional layer of protection for our nation's energy security," U.S. Energy Secretary Sam Bodman said in a telephone call to reporters.
The effort is part of a growing focus on "energy security" by both the Bush administration and Congress aimed at increasing home-grown fuel sources, like ethanol, in order to reduce U.S. dependency on oil imports.
The reserve, created by Congress in the mid-1970s in response to the Arab oil embargo, currently holds about 691 million barrels of crude at four underground storage sites in Louisiana and Texas. Legislation passed in 2005 called for building storage to 1 billion barrels.
SPRING FILL UP
Bodman said the government will begin by purchasing about 11 million barrels of replacement crude this spring, adding oil at a rate of around 100,000 barrels a day.
The crude should be in the reserve by the end of the summer, a
Department of Energy' name=c1> SEARCHNews News Photos Images Web' name=c3> Department of Energy spokesman said.
The government will fund the purchase with $600 million raised when it sold 11 million barrels of reserve oil to U.S. refiners in 2005 after Hurricane Katrina hit the Gulf Coast.
Beyond 2008, the department will fill the reserve based on market conditions with the aim of not impacting crude oil or gasoline prices, Bodman said. But analysts said an increase in price may be unavoidable.
"The government can spin it any way they like, but the history, from the 1970's on, is very clear: During periods when the reserve is being increased, prices tend to rise," said Tim Evans, an analyst with Citigroup Global Markets.
U.S. oil prices surged on Tuesday after the department's announcement, settling settled up $2.46 -- nearly 5 percent -- to $55.04 a barrel.
"The magnitude, going from 727 (million) to 1.5 billion barrels would be very hard to do given the tightness of the supply-demand situation. And prices are already up dramatically from where they were years ago," said Benjamin Halliburton, Managing Director at Tradition Capital Management in Summit, New Jersey. "It doesn't make a lot of sense to me."
If oil prices continue to rise, it could put the brakes on a drop in gasoline prices U.S. drivers have enjoyed at the pump in recent weeks.
Home-grown crops the answer to our addiction to oil, Bush tells Americans

President outlines plans to cut petrol consumption · Ethanol and other biofuels central to energy initiative Ewen MacAskill in WashingtonWednesday January 24, 2007The Guardian
The Bush administration last night embarked on an ambitious plan to confront America's love affair with oil by setting a target for a huge reduction in consumption over the next 10 years.
Joel Kaplan, White House deputy chief of staff, told reporters in a briefing hours before George Bush's annual state of the union address that the president wanted Americans to cut petrol consumption by up to 20% by 2017. The move comes a year after Mr Bush described Americans as being "addicted to oil".


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Mr Bush has not suddenly gone green: he remains sceptical about climate change, continuing to insist that the case has still to be made on global warming. His proposal is motivated by security concerns - the US's dependence on oil from the volatile Middle East.
The president hopes the goal can be achieved through a sharp rise in alternative energy sources, primarily ethanol, that the government would mandate to be produced. The rest of the reduction would come from raising fuel economy standards for passenger cars, which have not been revised since 1990.
His enthusiasm for ethanol is shared by American farmers and Republicans representing heavily agricultural states.
But there will be immense scepticism among congressmen about whether his target is realistic. Mr Bush needs the support of Congress to get his plan put in place, but the mood on Capitol Hill towards the White House has been poisoned by the Iraq war, in particular his 21,500 troop increase a fortnight ago.
In the hours before he was due to deliver his state of the union address, the main focus on Capitol Hill was not his domestic agenda but a Democratic move, supported by dissident Republicans, to adopt a resolution critical of the troop increase.
While the White House said Mr Bush would devote part of his speech to Congress to defending his Iraq strategy, the administration hoped the war would not overshadow a domestic agenda that includes, in addition to energy, proposals on health, education and immigration.
Americans enjoy extremely cheap petrol, roughly half the price charged at European pumps. Currently, 46% of petrol sold in the US contains about 10% ethanol.
Mr Kaplan said the president was proposing to set the amount of ethanol and other alternative fuels that must be mixed into the fuel supply at 35bn gallons by 2017, up from 7.5bn gallons in 2012. He also wants to expand the standard to include not just ethanol but a wide range of oil alternatives, such as biodiesel, methanol, butanol and hydrogen, he said. There is a question mark over whether American farmers can meet the amounts envisaged by the White House.
The president's initiative comes as scientific sources told Reuters that a UN climate panel, to report next week in Paris, will predict that by 2100 global warming, blamed on humans, will bring more droughts, floods and rising seas.
The report by the Intergovernmental Panel on Climate Change may bring some good news, however, by toning down predictions of the biggest temperature and sea level rises projected in the IPCC's previous 2001 study, the sources said. But it will also revise up its lowest projections.
Mr Bush will spend today promoting his fuel plan and other initiatives outlined in his sixth state of the union speech. But he has a credibility problem. Polls published yesterday showed him with approval ratings hovering between 29% and 33%. Only two other presidents have faced worse ratings on the eve of the state of the union speech, Harry Truman in 1952 during the Korean war and Richard Nixon during the Watergate scandal in 1974.
Mr Bush, in his first five state of the union speeches, had the support of a Republican-led Congress but now faces a Democratic-led Congress, which is unlikely to cooperate in getting his proposals through.
The White House said the president would also call on Congress to cooperate in pushing through measures on health reform, in which tax incentives would be introduced to expand the numbers with health insurance.
While some Democrats have already said they are likely to oppose his plans, Hillary Clinton, who last weekend took the first formal step towards running for the Democratic nomination for next year's presidential election, said she was "thrilled" about the prospect of Mr Bush engaging on energy and healthcare.
But other congressmen are hostile. Pete Stark, Democratic chairman of a key health subcommittee in the House, said he would not even consider holding hearings on the proposal.Special reportsOil and petrolUseful linksOpecInternational Energy AgencyAmerican Petroleum InstituteEnergy Institute