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The Generator news service publishes articles on sustainable development, agriculture and energy as well as observations on current affairs. The news service is used on the weekly radio show, The Generator, as well as by a number of monthly and quarterly magazines. A podcast of the Generator news is also available.
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  • China leapfrogs US car manufacturers

    From Business Week quoted at BYD.com

    While U.S. automakers struggle to survive after the Senate rejected a bailout for Detroit, one company from China may be showing a way forward for the industry. On Dec. 15, BYD Auto got a jump on General Motors (GM), Toyota (TM), and Nissan (NSANY) by introducing in its home town of Shenzhen the first mass-produced plug-in hybrid, the F3 DM. BYD’s new car, with a $22,000 price tag, can run for up to 60 miles on a battery charged from an ordinary electricity outlet.

    Early this year there was plenty of skepticism in auto circles about BYD’s ability to put together a car that would ever become truly roadworthy. The company unveiled its plug-in hybrid at the Detroit Auto Show in January, and few outsiders figured the Chinese upstart, which had only been in the auto business since 2003, had the know-how to produce a commercially viable plug-in.

    One person who seems to believe in the car’s viability is Warren Buffett. In September, Des Moines-based MidAmerican Energy, which is controlled by Berkshire Hathaway (BRKA), paid $231 million for a 9.9% stake in BYD Auto’s parent company BYD with a view to helping BYD distribute its cars in the U.S. by 2011.

    U.S.-China Collaboration

    Others believe in China’s potential in developing cars that are more environmentally friendly. The F3 DM’s China launch comes just a few days after Washington and Beijing announced plans to work together on green car technology: China’s Science & Technology Ministry signed an agreement with the U.S. Energy Dept. to collaborate on battery technology to power cars on Dec. 11.

    Although it’s not much to look at—the F3 DM is based on the same platform as the gas-powered F3 sedan by BYD that resembles the Toyota Camry—driving one is remarkable. On a recent test drive at BYD’s sprawling Shenzhen campus, the car’s acceleration was impressive, going from zero to 60 in a respectable 10.5 seconds. What makes the experience so novel is the absence of engine noise, which heightens one’s awareness of the sounds of rushing air and tires on the road. The car’s top speed is about 100 mph, and it is capable of running for 60 miles before the batteries need recharging, which occurs automatically when the gas engine kicks in.

    But the car faces an uphill climb to gain acceptance in a highly competitive Chinese auto market with dozens of manufacturers. After years of red-hot growth, China’s vehicle sales are in a slump, falling 17% in November vs. a year ago. And Toyota’s Prius has had a lackluster reception in China, having sold just 748 cars in the first 10 months of this year.

    BYD’s plug-in faces other challenges. Its battery pack takes about seven hours to recharge fully using a traditional power source, but most car owners live in apartment buildings with parking lots that don’t provide electricity. “Infrastructure is a problem. It’s not like North America, where everybody has independent housing where you have a plug-in in your garage,” says Yale Zhang, director of Great China at automobile forecaster CSM Worldwide in Shanghai.

    “In cities like Shenzhen, Shanghai, and Beijing, people live in big buildings where there is nowhere to plug in.” Henry Li, general manager of BYD Auto, acknowledges this problem and only projects sales of a few hundred in the next 12 months. “We need to try and demonstrate the cars and show their benefits,” he says.

    Ample Battery Experience

    What BYD lacks in experience as an automaker it makes up for in battery expertise, says Li. It is the world’s largest producer of cell-phone batteries, boasting a 30% market share, and it also makes batteries for everything from power tools to laptops. “We have rich production and R&D experience, so we were able to solve all the technological barriers and turn this into commercial use,” he says.

    The auto division’s 3,000-strong research and development team developed a ferrous battery technology that he says is superior to the nickel metal hydrate battery used in the Toyota Prius. “For them the gas engine is the main driving mode; for us it’s a small engine and a big battery,” says Li. Actually, the F3 DM is based on 100 3.3-volt batteries strapped together and stored under the rear seat. Packs are good for about 2,000 recharges or 100,000 miles. The engine is only 1 liter and is capable of recharging the battery when the car is switched to gasoline mode.

    Li figures the potential cost savings on fuel are a big selling point, not to mention the vehicles’ smaller carbon footprint. He reckons it takes about $1.40 worth of electricity to power the car for 100 kilometers, compared with $7 for a conventional F3 gasoline model. BYD expects its first cars to be delivered to the city government of Shenzhen and China Construction Bank, which signed an order for them at the launch. Paul Lin, marketing manager of BYD’s auto export division, said other banks and state-owned enterprises might follow suit as they see running a fleet of green cars as a key element of corporate social responsibility in China, where foul air in the cities is a huge problem. He says the Prius is still primarily a gasoline-powered car and is thus not viewed by Chinese corporate buyers as particularly green.

    Still, it will take a lot of driving to justify the F3 DM’s price tag, more than twice the gasoline version of the F3, which is available for between $7,500 and $9,900. Another challenge is how to set up quick-charge ports in Chinese cities, which will be essential for the success of BYD’s fully electric vehicle, the E6, which it plans to roll out later next year. The company is exploring cooperation with local utilities to set up quick-charge ports that would allow batteries to restore 50% of capacity in 10 minutes. However, these would require a stronger current than is now available: Household outlets provide about 20 amps of current, while a quick charger would need about 100 amps of juice.

    BYD has momentum on its side. The F3 was China’s best-selling sedan in October, shipping more than 15,000 cars. In the first 10 months of the year, BYD’s total sales grew 36%, compared with industrywide sales of just 10.25%. BYD’s Hong Kong-traded shares are down 12% this year, compared with a nearly 50% fall in the Hang Seng China Enterprise Index of mainland stocks, thanks to the Buffet stake and strong auto sales. The company, which had sales of $3.1 billion in 2007 and earnings of $235 million, will have sales of $3.93 billion and profits of $196 million this year, estimates brokerage CLSA.

  • Australian government sucks

    I need to sleep now, but here’s a couple of thoughts to get people in more media-friendly time zones going:

    • These targets suck. They just do. An ‘unconditional’ cut of 5 percent off 2000 levels is actually the most pissweak measly bogus ridiculous promise I’ve ever seen. None of the necessary incentives for a cleaner economy are present in these targets, nor is any recognition of the fact that Australia is set to be the hardest hit of all developed nations when it comes to climate change. From a climate, moral, responsibility perspective, this is a failed policy.
    • The forestry section of the government’s policy is still ridiculous. There remains a serious risk that carbon-dense, biodiverse, ancient native forests will be logged while less resilient (and less impressive, let’s be honest) plantations remain in the ground as a result of a perverse market created by the government. From a climate, water, environment, spiritual perspective, this is a failed policy.
    • The funds raised through the scheme will be badly directed. Of course low-income households should be compensated for the harshest costs of action, but actively subsidising businesses because they pollute? Not spending any of it on energy efficiency retrofitting, renewable energy investment, adaptation in developing nations? From pretty much every perspective, this is a failed policy.

    I’m furious. I’m surprised how bad this is. It’s come at a good time – over the last few days I’ve been pretty tired from the fortnight at the Climate Conference here in Poznan. I knew I was going to spend 2009 getting ready for the key Copenhagen Conference, pressuring the government to take stronger action and to actually set science-based policy, etc, etc, but I felt like I’d lost a little energy and drive.

    No more. I’m ready for a fight! It’s not like it’s much of a commitment on my part, 12 months from a life, but if I can help in any way to push the slightest bit to create a more sensible (and safe world), then I’m in.

    The government actually can’t be bothered mounting the argument that clever climate action now can save our future and ensure the survival of the most vulnerable peoples around the world.

    I’m going to be bothered. I know some awesome people from around the world and from back in Oz that are going to be bothered.

    Are you?

  • Australia takes lights off program to the world

    “Earth Hour is a reflection of widespread global concern over climate change, but it is also an excellent example of how Australian green innovation can succeed internationally.

    “This year, more than 50 million people in 370 cities in 35 countries turned off their lights to encourage governments, individuals and businesses to reduce their carbon emissions.

    “The fact that in 2009, WWF are aiming to inspire one billion people with an idea that originated in Sydney only two years ago, also promotes Australia’s standing as a forward-thinking nation capable of the creativity and innovation needed to make a difference to global carbon emissions reduction. 

    “The high level of support for Earth Hour shows a strong commitment to tackling climate change in the global community, which in turn demonstrates the potential for Australian green innovation to expand trade and create jobs.

    “The global market for renewable energy is set to be worth US$750 billion a year by 2016. A recent United Nations Environment Program report also predicted investment of US$630 billion in sustainable energy implementation would create 20 million jobs globally by 2030.

    “The future international competitiveness of the Australian economy is reliant on our ability to position ourselves to go beyond resources, and by supporting innovation and the development of new industry capabilities.

    “From solar research and development and new geothermal technologies to green building design, Australia has the opportunity to become a world leader in a range of low emissions related technologies, products and services. 

    “The Rudd Government’s climate change policies require at least 20% of Australia’s electricity to be generated from renewable sources by 2020, and that Australia’s greenhouse gas emissions fall by 60% by 2050. From 2010 the Government will introduce a carbon price into the Australian economy for the first time through the Carbon Pollution Reduction Scheme,” Mr Harcourt said.

    Austrade is assisting Australian clean energy and environment companies to capitalise on new commercial opportunities arising from the transition to a lower carbon economy.

  • Multinationals may take over Farmers Federation

    Australia‘s National Farmers Federation NFF will vote this week to change its constitution and allow international corporations to become full members. Traditionally a farmers’ body, the NFF has recently lobbied government on behalf of seed, fertiliser and pesticide companies. A combination of the drought, international financial instability and scandals involving quasi-government organisations such as the Australian Wheat Board has made farmers cautious about aligning their interests with other organisations. Several state farmers associations have left the national body, feeling it has lost its way. Head of the National Farmers Federation, David Crombie, said that farmers will not lose their majority ownership of the NFF.

     Related article from the Land

  • Farmers Federation lets agribusiness in

    Mr Crombie said corporate agribusiness and other affiliated agricultural groups, which he would not name, would be offered a full membership class with full voting entitlements up to a certain limit.

    “But the critical issue put forward to us in all our meetings with farmer groups is that we retain farmer control of NFF,” Mr Crombie said.

    “While new members would be offered a full membership class, the management of affairs and the organisation would remain in the hands of farmers.

    “The model we are proposing and putting to our members next week would never see NFF in a position where State farmer organisations and commodity groups do not have the majority.

    “We are about preserving the majority shareholding in farmer hands.”

    Mr Crombie acknowledged NFF’s “long and deep heritage” as a representative voice for farmers which he did not want thrown away with any major structural change.

    He said change was still needed to help broaden the representation of the lobby group and spread it across the agricultural supply chain, representing changes in the sector now and through until 2020.

    “We need broader views in policy development, and new membership will give us that,” he said.

    “We need better research and better unity of purpose.

    “We also need to reduce duplication in agricultural representation and look at the issues we need to tackle at the national level to ensure we are doing that as effectively as possible.”

  • UK makes real plan for solar

    Like the other European Union nations, the UK has agreed to the binding target of 20% of total energy from renewable sources. As such, this recent report outlines a roadmap and the considerations that are necessary to implement that target. What makes this a seminal document is that it explicitly articulates how important renewable heat — in addition to the standard focus on electricity — will be to meet the stated energy targets. But the report goes further than just recognizing the essentialness of the renewable heat contribution; it analyses in depth the current sources of energy used in the UK and lays out a comprehensive strategy for spearheading the deployment of renewable heat on a widespread scale.

    Basically, the UK needs to go from a 1.5% share of renewable energy in their overall energy mix to 15% by 2020. Given that this represents a ten-fold increase, the question they have correctly identified is how is this realistically feasible? The report makes the point that in order to close the gap in terms of total energy coming from renewable sources, it might be easier to increase the share of renewable heat to a certain level, than to increase the level of renewable electricity, given the issues of grid capacity. Since renewable heat tends to be generated onsite, as opposed to distributed generation, the constraints affecting take-up are “modest.”

    The Situation Thus Far

    Globally, heating accounts for an estimated 50% of the total energy used in the building sector, and therefore it is one of the largest sources of CO2 emissions. Meaningful carbon reductions cannot be met without targeting this use of energy. Furthermore, the unit costs to generate renewable heat tends to be substantially less then the unit cost to generate renewable electricity, which means that to displace a certain amount of total energy, it will cost less money to displace the heating component. So given considerations of efficiency, governments should be extremely aggressive in providing the necessary mechanisms to allow for the most cost-effective uptake in renewable heat technology.

    In the UK, heat accounts for 49% of the final energy demand and 47% of carbon emissions. Up this point, this huge proportion of energy that is necessary for indoor space, ventilation, and water heating has not been adequately examined in terms of how it could be generated using renewable sources. With the new UK Renewable Energy Strategy, “decarbonising” the heating component is stated as being necessary to achieve the 15% renewable energy target. It is also recognized that this will require “develop[ing] a completely new approach to renewable heat [and] providing substantial incentives to jump-start this new market.”

    Now, as a caveat, I would disagree that the renewable heat technologies are “new” because there are many excellent solar thermal technologies that are being deployed around the world, but I think the point that is trying to be made is that as a market, “renewable heat” is just starting to come to the forefront. One other inaccuracy that I feel obliged to point out is that the report defines “solar thermal” as being only solar water heating, while omitting solar air heating. This is a serious flaw because solar air heating targets the largest usage of energy in the commercial and industrial sector (indoor space & ventilation heating). As well, independent monitoring analysis conducted in the UK by BSRIA has shown that solar air heating by itself is capable of fulfilling the 10% renewable energy target for set forth by the Merton Rule.

    Translating political objectives into action is at the crux of any good policy strategy. Accordingly, the UK Renewable Energy Strategy details the possible policy measures that could be used to jump-start the use of renewable heating. These government support mechanisms will be essential because without them, the current policies will only take the UK to a 5% level by 2020. This is why the status quo clearly cannot stand, and the report identifies the following options:

    • Direct financial support in the form of a grant to clients who install solar or other renewable heating systems.

    • Renewable Heat Incentive Scheme: This would likely take the form of a feed-in-tariff at a fixed £/MWh of thermal heat produced (like the feed-in-tariff used to drive the PV industry).

    • Renewable Heat Obligation: This would require that a certain percentage of heat energy in the UK be generated using solar, biomass or other renewable choices. Users would have to present Renewable Heat Certificates.

    • Cap and Trade System: This is a more general climate change strategy designed to make the cost of all carbon-based fuels higher, and therefore help facilitate the transition to a broad range of renewable energy technologies.

    In theory, all these policies will stimulate the use of renewable heat. However, when examining the practicality and costs of each scheme, the report makes a firm recommendation in favor of a Renewable Heat Incentive.

    On the matter of increasing the share of electric heat, the report argues against this on the basis that the electricity grid in the UK would have to be expanded by 130% in order to meet the peak winter heating demand. This would be contrary to the UK’s energy objectives of decreasing total energy to meet the 2020 targets.

    This emphasis on renewable heat is of the utmost extremely relevant for the United States and Canada — and perhaps even more so — because the overall heating load in these countries tends to be higher than it is in UK. It is essential from a variety of perspectives that municipalities and state energy offices recognize the necessity of crafting and aggressively promoting renewable heat strategies.

    This will allow the renewable heat industry to finally make a meaningful contribution to climate change that is proportionate to the benefits they offer in terms of CO2 displacement, energy production, and cost-effectiveness.

    Victoria Hollick is the VP of Operations at Conserval Engineering, which has been instrumental in promoting solar air heating around the world for the commercial & industrial sector with the SolarWall transpired collector.  Victoria has had a life-long interest in solar, and became further interested in effecting environmental and renewable energy policy while completing a graduate degree in economics.  She is also the Vice President of the Canadian Solar Industries Association.