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  • US Ethanol laws create energy vortex

    On 15 April the Renewable Transport Fuel Obligation (RTFO) Programme is supposed to come into effect. What this silly government programme will do is introduce a 2.5% requirement of biofuels at the pumps, a figure that will rise to 5.75% by 2010 and 10% by 2020.

    The government has set up a commission to review the effectiveness of biofuels. The review was commissioned in February by transport Secretary Ruth Kelly. It still hasn’t reported. Will our government wait until it has the full facts before it acts? Probably not.

    Water crises

    According to the Stockholm International Water Institute, agricultural demand for water will double by 2050, largely due to the anticipated needs of the biofuels sector. This is an utterly crazy plan when water crises are going to be a major theme of the next 20 years. There are meetings being held this week in Cyprus, Israel and India as water supplies have become critical.

    It takes around 3-4 gallons of water to produce one gallon of ethanol and using ethanol to power the average US car for one year would require a staggering 11 acres of farmland. This works out to be the same area needed to grow a year’s supply of food for seven people, according to David Pimentel a leading agricultural expert from Cornell University.

    It just doesn’t make sense

    Pimentel calculated that an acre of US corn can be processed into about 328 gallons of ethanol. But planting, growing and harvesting that much corn requires about 140 gallons of fossil fuels and costs $347 per acre. That is $1.05 per gallon of ethanol before the corn even moves off the farm. Then there’s fermentation: as many as three distillation steps and other treatments are needed to separate the ethanol from the water.  

    So, adding up the total energy costs of corn production and its conversion to ethanol, 131,000 British thermal units (BTUs) are needed to make 1 gallon of ethanol, which has an energy value of only 77,000 BTU.

    A net energy loss?

    So, 70% more energy is required to produce ethanol than the energy actually in ethanol. Every time you make 1 gallon of ethanol, there is a net energy loss of 54,000 BTU. Fans of ethanol as a fuel need to answer just one question – if producing biofuels is so cost effective, why on earth does their production require government subsidies?

    I really do despair over this issue. I strongly believe that biofuels will continue to exacerbate rises in agricultural commodities as long as these targets remain.

    Food shortages

    Will the UK stand up to Europe and force the targets to be abandoned? Probably not; it does not have the guts. Will the US government slash its ethanol targets? I doubt it; there are too many vested interests.

    All of this means that food will be in tight supply for many, many years. Energy policy has always been a politically charged affair – but it is getting more and more political as each week passes. Can we trust here-today-and-gone-tomorrow politicians to get the long-term strategy right?

    Unfortunately, I don’t think so.

    This article is taken from Garry White’s free daily email ‘Gary Writes’.

  • Food prices soar 400% in Africa

    Food crisis worldwide

    The agency last month issued an emergency appeal for money to cover a shortfall tallied at more than half a billion dollars and growing. It said it might have to reduce food rations or cut people off altogether.

    The most vulnerable are people like those in Sudan, whom Joannes is struggling to feed and who rely heavily, perhaps exclusively, on the aid. But at least as alarming, WFP officials say, is the emerging community of newly needy.

    These are the people who once ate three meals a day and could afford nominal healthcare or to send their children to school. They are more likely to live in urban areas and buy most of their food in a market.

    They are the urban poor in Afghanistan, where the government has asked for urgent help. They are families in Central America, who have been getting by on remittances from relatives abroad, but who can no longer make ends meet as the price of corn and beans nearly doubles.

    "This is largely a new caseload," John Aylieff, the emergency coordinator for the WFP’s assessment division, said at the agency’s Rome headquarters.

    Aylieff and his staff assess the vulnerability of people in 121 countries. About 40 of the nations have been judged to be at risk of serious hunger, or already suffering from it.

    The criteria include: how much does the country rely on imported food; how large is the urban population; what is the current rate of inflation, and what portion of their income do families spend on food (in Burundi, for example, it’s 77%; in the U.S. it’s 10%).

    In the short term, officials predict food riots and political unrest, as has occurred in recent weeks in Pakistan, Indonesia and Egypt. In Egypt, shortages of government- subsidized bread recently triggered strikes, demonstrations and violence in which seven people died.

    In the longer term, overall health worsens and education levels decline.

    "Finally they end up selling their productive assets [and] that pretty much means they will remain economically destitute, even when things come back to normal," said Arif Husain, senior program advisor for the assessment division, who recently moved to the WFP’s Rome headquarters after years in Sudan.

    Countries are taking steps to avert widespread hunger. Some, like Egypt and Indonesia, have quickly expanded subsidies; others, like China, have banned exports of precious commodities.

    Afghanistan was the first country to request urgent help. President Hamid Karzai in January asked the agency to feed an additional 2.5 million people, most of them urban poor, in addition to the 5 million rural people the agency already feeds.

    In Kabul, the Afghan capital, Abdul Fatah and his wife Nooriya raise their five children on her teacher’s salary; he lost his government job a year ago.

    "Life is getting harder day by day," said Fatah, who is 45 but looks far older. "We cannot even buy meat once a month."

    The price of wheat in Afghanistan has risen by more than two-thirds in the last year. Because staples such as rice, oil and beans are also expensive, Fatah and his wife are sometimes unable to buy pens and notebooks for the children to use in school. Unable to afford both food and lamp oil, the household goes to sleep early.

    Kabul homemaker Mahmooda Sharif, a mother of three, said that instead of eating meat twice a week, her family can now afford it only twice a month. The cost of food competes with school expenses and medical bills. She has delayed dental visits because she can’t afford them.

    A world away in El Salvador, in hills that once yielded abundant harvests of coffee, signs of malnutrition are spreading.

    Salvadorans need twice the money to buy the same amount of food they could purchase a year ago, meaning their nutritional sustenance is cut in half, the WFP says.

    "My children ask for food, and how can I not feed them? They ask for some eggs, beans, and I give it to them," said Maria De Las Mercedes Ramirez, a 41-year-old mother of five. "I, as the mother, will eat less."

    The Ramirezes are one of about 70 families living in shacks on a desolate coffee plantation near the town of Taltapanca, abandoned more than a decade ago when coffee prices took a dive. Most of the families are run by mothers; the fathers have left to find work in the Salvadoran capital, or out of the country.

    Ramirez lives on about $80 a month that comes from wages her husband sends and the little she can eke from an occasional job pruning coffee plants. What Ramirez spends on corn has shot up more than 50% in the last few months, cooking oil is up 75%, and beans have doubled in price.

    Many families rely heavily on schools that give students one meal a day.

    "You can see a lot of concern in their faces when they come to pick up their kids," principal Delsy Amilia Chavez said of the mothers. "And some of the mothers are anemic. They can’t afford to eat beans and aren’t getting the iron they need."

    The school meals are provided by the WFP, but the agency is transferring the program to the government and reports that some schools have been unable to continue them.

    Carlo Scaramella, the WFP country director in El Salvador, said hurricanes and drought last year added an additional 160,000 people to the 100,000 that the agency was already feeding. One million are at risk, he said.

    In Egypt, President Hosni Mubarak ordered army-owned bakeries that produce 1.2 million loaves a day to pour more bread onto the general market.

    The government also allocated almost $1 billion to bread subsidies for 2008. It subsidizes 210 million loaves of flat round bread a day, the main item on most Egyptians’ daily menu. As commodity prices soared, subsidized bread became precious, and fights broke out in queues at bakeries and stores.

    The price of unsubsidized bread has gone up 10 times, and rice doubled in a single week, said Farag Wahba Ahmed, an official with Egypt’s Chamber of Commerce.

    In Sudan, where the WFP oversees the largest emergency food operation in the world, aid officials are drafting contingency plans for coping with a smaller supply. In Darfur, especially, they must tread carefully.

    "There’s no way we can come in and say, ‘We have no more food,’ " Joannes said. "It would create riots."

    Darfur, the beleaguered region in western Sudan, accounts for three-fourths of the WFP’s operation here, which in total distributes 632,000 metric tons of food valued at $700 million to 5.6 million people (more than in Afghanistan, Bangladesh and Indonesia combined).

    The WFP has sought to lower costs by turning to regional markets to buy food. Buying from local farmers helps the budget since it eliminates shipping costs. But because the WFP is such a big buyer, it has to be careful not to distort the market.

    A 30% increase in costs in Sudan in the last four months is blamed chiefly on rising prices for locally produced sorghum. The WFP is already absorbing 6% of the national production and fears that buying more would destabilize the market.

    Joannes boasts that he found a good deal recently on a mix of lentils from Ethiopia, buying them for only $700 a metric ton, far less than the going rate for white beans. But bargains are hard to find.

    Back in Rome, Nicole Menage, head of the food procurement service, receives daily, sometimes hourly, reports on rising prices and falling reserves. It’s like a mammoth board game, with multiple moving pieces.

    She and her associates last year managed to find in China 12,000 tons of maize needed urgently in nearby North Korea. Then, suddenly, China slapped on an export ban and the agency ended up finding the maize in Tanzania.

    "The only tool we have is to stretch the net as far as possible," she said.

  • Square watermelons roll off the production line

    * * * * *

     

    Japanese designers and engineers have earned a reputation for improving products invented by others, allowing them to become saleable, desirable and popular. Consider the videotape recorder, for example. Invented by AMPEX in the mid-1950s, the concept was taken to its logical extension by Japanese electronics giant JVC and introduced to the masses in 1976 as the VHS cassette. This time, however, Japan’s creative techies think they can improve on Mother Nature, and by jove I think they’ve done it!

    The Square Watermelon… chew on that for a moment, if you will. The first question that comes to mind is, "Why?" Well, besides its novelty value, there are actually several darned good reasons for making a watermelon in a square shape. Since these things make great gifts, it makes sense to package them in boxes and a square shape fits into a square box with the minimum amount of wasted space. In addition, the shape naturally lends itself to being bedecked in a decorative ribbon, birthday-present style. Think of it, a delicious watermelon packed in a home-grown gift box! And a gift that will be appreciated, knowing the cost: figure about $80 & change for one of these babies compared to about $20 for a boring, unfashionable oval one. Naturally, you’re going to want to chill your prized gift, and the shape fits perfectly inside a Japanese refrigerator. Take it out, and it won’t roll away!

     

    After "Why?", you’re probably wondering "How?"… and no, they aren’t grown from square seeds. Farmers in Zentsuji, located in southern Japan, place the small on-the-vine watermelons in tempered glass forms that force the growing melons to conform to their shape while still receiving necessary sunlight. Only about 400 of the four-sided fruits are grown each season. One would suppose that triangular or pyramid-shaped watermelons could also be created using this technique, but then we’d be back to "Why?" and this is the "How?" section.

    The Square Watermelon can be found in Japanese grocery stores in Tokyo and Osaka and is not currently available in the USA. Square watermelons grown in Brazil have lately become available in Great Britain, though, so we may be enjoying them here yet! Prices in Japan are in the $80 – $85 range (about 10,000 yen) when in season.

  • IMF wants global carbon trading

    From The Age 

    A GLOBAL agreement binding all significant countries, rich and poor, offers the best hope for tackling climate change, and could halve the cost of countries trying to tackle it alone, the International Monetary Fund advises.

    In its latest World Economic Outlook, to be released today, the IMF calls on national leaders to draft a global agreement quickly that establishes either a common tax rate on carbon, or an emissions trading scheme in which permits can be traded internationally, so emissions can be reduced where it is cheapest to do so.

    The global financial watchdog endorses concerns over global warming from an economic standpoint, warning that the risk of potential damage, especially in poor countries, "could be large and even catastrophic if global warming is unchecked".

    The IMF presents modelling suggesting that a global carbon tax or emissions trading scheme could stabilise greenhouse gas levels at 550 parts per million (roughly equivalent to a warming of three degrees) while still more than doubling the world’s output by 2040.

    With the cost of emission permits starting low and rising gradually to $US86 a tonne by 2040, this can be done while reducing consumption by just 0.6%, the IMF study finds.

    But it will be crucial to make the scheme inclusive, because the cheapest place to reduce emissions is in China, where the use of clean technology will see huge emission cuts, allowing it to sell surplus permits to the West.

    The IMF also suggests higher petrol taxes and tougher vehicle emission standards in some countries, noting that China now has higher emission standards than Australia or the US.

    "Climate change can be addressed without imposing heavy damages either on the global economy or on individual countries," the IMF concludes.

    But it emphasises two points: First, it is crucial to include the main developing countries, because they will produce 70% of emissions in the next 50 years. Second, the cost of reducing emissions will be halved if permits can be traded internationally.

    The study finds that the global costs of action will be least if emissions levels are set on the basis of population, rather than current entitlements. Rich countries, it says, are far better able to adjust to higher energy prices, and should provide cheap clean technology to poor countries.

    "Poor countries will be hit earlier and harder, owing to their geography, heavier reliance on agriculture, and more limited capacity to adapt," it says.

    "Their health and water systems may come under stress from more frequent natural disasters, coasts may be flooded, and populations may migrate."

    The study points out three potentially catastrophic impacts of climate change:

    ■The melting of the west Antarctic ice shelf could cause sea levels to rise over coastal cities such as New York, Shanghai and Melbourne.

    ■The reversal of the Gulf Stream in the Atlantic could make northern Europe far colder.

    ■More extreme monsoons in South Asia could cause serious destruction and loss of life.

  • The Limits of Distributed Energy

    by Michael Hoexter, Ph.D.

    On a rainy January day in Sacramento, I attended a plenary meeting of California’s Renewable Energy Transmission Initiative. At one point, a smartly dressed man from one of the largest rooftop solar finance companies got up to tout the benefits of distributed energy, harping on the drawbacks of high-voltage transmission. Given the backlog of renewable energy projects in California requiring transmission, it was kind of amazing that he had bothered to come to a remote corner of the city to speak against the cause of his renewable energy brethren, an initiative that has zero impact on his firm. Needless to say, next time any of the assembled had a customer referral they would not be turning to this company.

    Distributed energy will continue to grow in importance and popularity, but alone it is insufficient to address the climate crisis.

    While not all renewable energy company reps are so tone-deaf, the practice of selling distributed energy projects in opposition to all utility scale or central station power projects is outdated and an aid to the continuing dominance of fossil fuels in our electric system.

    Distributed energy will continue to grow in importance and popularity, but alone it is insufficient to address the climate crisis. Large-scale renewable power in combination with aggressive energy efficiency and distributed generation will be absolutely necessary to meet the very ambitious GHG reduction and energy independence goals that we are setting for ourselves.

    There are many in the RE community, some frequent commenters here, who have embraced the dream of renewable energy in which communities or individual buildings would become energy self-sufficient or even net energy producers. This dream will probably become reality on a broad scale at some point in the future, but unfortunately not fast enough to cut GHG emissions rapidly when we need it most. This is not for a lack of trying by technology firms, as there is big money and much glory involved in more cost-effective and productive distributed technologies.

    Some fans of self-sufficiency are willing to devote time, mental bandwidth, and money to set themselves up to live off the grid (or live in remote areas anyway). But most of the population is either not inclined to live this way nor in the position to act on the inclination. The ideal of autarky is not everybody’s social or energy utopia; however, a substantially more energy-efficient lifestyle and built environment is, in my book, a categorical imperative.

    Currently, grid-tied distributed generation is the far more user-friendly option. A hidden component of the argument for these systems is “grid storage,” the notion that when your system isn’t producing energy, the grid will supply you with the energy that you need.  Unfortunately, that grid is emitting some of the GHGs that you may be trying to avoid with your distributed generation system, especially in areas with coal-fired baseload, a fairly common situation in the sunny Southwest or windy Great Plains.

    Well, now is the time to start thinking about cleaning up that “grid storage.” We can, through a combination of new geothermal, concentrating solar power with storage, small and medium hydro, concentrating photovoltaics (PV), regular PV, wind, marine renewables and pumped hydro, reduce the carbon footprint and therefore the ecological footprint of the grid. To clean up the grid means building some transmission lines (though less will need to be built if we build generation in areas with stronger renewable energy flow).

    As it turns out, even if we follow the very favorable policy conditions for distributed and large-scale renewable energy found in Germany, most energy will be generated in large installations, owned by cooperatives or by corporations, and those installations will cost less per unit of energy. Much to the chagrin of some people, a lot of those larger projects may need to be cited on undeveloped land.

    The people holding onto the ideal that power generation should be exclusively on developed land are avoiding the tough choices and inevitable compromises involved in building renewable generation facilities. They complain about the visual impact of wind turbines, solar farms or transmission lines without offering a realistic present day alternative that they and we will be able to afford.

    Choices within the area of transmission lines provide a graphic example of a tradeoff: Overhead transmission lines are about one tenth the cost of underground transmission infrastructure. Do you want to pay perhaps three or four times as much for electricity for this luxury? Nature does not just put electrical energy on tap, even if you own a renewable energy system; it takes various industrial and construction processes that cost money and involve compromises to bring you that power.

    Knee-jerk criticisms of the transmission system and utilities (sometimes found in the pages of this publication) flirt with a similar form of moral hazard. The utilities and grid operators, historically relying most on large-scale power plants, work to respond to our demand for electric power and the conveniences it offers us. In combination with related government agencies and transmission authorities, they have invested in and manage a huge infrastructure that is sending us the power that makes it possible for us to communicate, eat fresh food, get safe medical care, and move around safely. They have figured out ways to do this with a high level of efficiency and service, though unfortunately with fuels that are now endangering our climate. Some critics speak as if it is a breeze to reproduce this service on a smaller scale. This, I believe is either wishful thinking or ignorance.

    As Pogo said:  "We have met the enemy and he is us."

    So think carefully when you declare distributed energy the only solution: Is this going to be the sole road via which we transition from a fossil fuel to a renewable energy economy?  Have you figured out what the costs and availability of generation and storage are that will allow us to energize the devices that we need or want to use, individually and as a society? If you do the calculations, you will realize that developing judiciously sited central station renewable energy plants, new transmission lines, clean storage and ancillary services, as well as distributed generation is the only way we as a society are going to stop climate change while keeping our impact on the earth to a minimum.

    Michael Hoexter, Ph.D., a renewable energy and energy efficiency advocate, has helped California utilities implement and market energy and resource efficiency programs. His views on the transition to a sustainable energy economy and the valuation of energy and energy services can be found at www.greenthoughts.us.

  • EU industry carbon emissions flat in 2007

    The Commission cut the allocation of carbon emissions permits, called EU allowances (EUAs), by about 9 percent for 2008-12, and the fact emissions were roughly unchanged last year has not undermined expectations of an EUA shortage in 2008.

    "I expect a shortage this year simply because allocations have drastically gone down," said Fortis analyst Kris Voorspools, adding an estimate that EU industry emissions in the six largest countries rose some 1.2 percent last year.

    New Carbon Finance estimated that emissions fell 0.25 percent.

    While carbon prices dropped below 1 euro in 2007, EUAs for 2008 delivery were trading up 88 cents on Wednesday at 23.4 euros and analysts expect them to rise further.

    That will raise electricity prices for all EU citizens because power generators pass these costs on to consumers.

    It will also raise costs for participating businesses which have to buy permits to cover their own emissions above a certain quota, including electricity generators, the oil and gas industry, pulp, paper, steel and cement.

    CRITICISM

    Reuters analysis of Wednesday’s incomplete data suggested that the supply of EUAs exceeded by 1.5 percent actual emissions in 2007, so far reported, of 1.884 billion metric tons.

    The preliminary data accounted for more than 94 percent of emissions the previous year, the European Commission said earlier Wednesday.

    One continuing criticism of the emissions trading scheme is that affected businesses get almost all their permits for free, in an initial quota handed out by EU member states.

    That has allowed electricity generators across Europe to makes tens of billions of euros of windfall profits by passing on the costs of free permits until 2013, when the Commission proposes utilities will get no free allocation.

    The 28 billion euro ($43.76 billion) EU carbon market is the hub of a 40 billion euro global carbon market which is expected to be swelled by a U.S. federal scheme which all remaining U.S. presidential candidates support.

    For additional analysis on the carbon markets, go to here.

    (Reporting by Michael Szabo; Writing by Gerard Wynn; editing by James Jukwey)