Industry News-EU mulls extending green criteria beyond biofuels

The European Commission has begun consultations on tackling indirect land-use change caused by agro-fuel production, floating the idea that such criteria could be applied more generally to a range of other agricultural commodities.

Background:

In December 2008, EU leaders reached agreement on a new Renewable Energy Directive, which requires each member state to satisfy 10% of their transport fuel needs from renewable sources, including biofuels, hydrogen and green electricity by 2020.

The directive also established sustainability criteria for biofuels. It obliges the bloc to ensure that biofuels offer at least 35% carbon emission savings compared to fossil fuels. The figure rises to 50% as of 2017 and 60% as of 2018.

However, concerns have been raised that increased biofuels production would result in massive deforestation and have severe implications for food security, as energy crops replace other land uses (indirect land-use change).

The Renewable Energy Directive and the Fuel Quality Directive agreed as part of the climate change and energy package in December last year require the Commission to compile a report "reviewing the impact of indirect land-use change on greenhouse gas emissions" and seek ways to minimise its impact.

The report could be accompanied by proposals on developing a concrete methodology for calculating indirect land-use changes, which could be applied to other commodities.

The EU's new Renewable Energy Directive obliges member states to ensure that 10% of their transport fuel comes from renewable sources, including biofuels,by 2020. The goal was aimed at contributing towards the bloc's climate goals, but questions have been raised about the unintended consequences of replacing large forested areas and food production with energy crops.

To address this issue, the directive requires the Commission to present a report by the end of 2010 on how such "indirect land-use changes" impact on greenhouse gases and whether they should be tackled.

But a consultation paper seen by EurActiv reveals that the EU executive is ambitiously planning to come up with a document and potentially a legislative proposal as early as next March. This is to ensure that member states can take them into account when submitting their nationalrenewable energy action plans by the end of June 2010.

The non-paper, drafted by the Commission's transport and energy (TREN) and environment DGs, lists several options to take into account the effects of land-use change. It shows that the Commission is considering addressing the general issue of land-use change instead of limiting its approach to biofuels.

The document suggests that the restrictions on land-use change applied to biofuels could be imposed on other commodities and consuming countries. This could be done by encouraging other administrations to adopt the same restrictions and by encouraging other industries to apply these on a voluntary basis, it states.

Moreover, the EU could require that goods sold on its market are tagged with labels stating compliance with the restrictions, the non-paper reads.

One alternative would be to conclude international agreements to protect "carbon-rich habitats" like rainforests in countries where cultivation patterns are likely to be affected, it states.

However, the Commission believes that such a general approach would require putting in place measures that stretch beyond the scope of the report required by the Renewables Directive, and would take more time to execute.

The rest of the document thus specifically concentrates on biofuels. The minimum required greenhouse gas savings already included in the directive could either be tightened or considered as an adequate "cushion", ensuring that the policy delivers an "acceptably high" greenhouse gas benefit, it says.

Finally, the document floats the idea of promoting differentiated consignments for individual biofuels.

For example, bonuses could be increased for biofuels which do not come from land, or additional sustainability criteria could be set for agro-fuels produced from crops that are likely to cause damaging land-use change. Furthermore, an indirect land-use change factor could be included when calculating greenhouse gas emissions from biofuels, once a methodology has been adopted.

Indeed, the Commission is already consulting researchers about models that could explain the effects of biofuel production on indirect land-use change, according to sources close to the process. These should be presented around September, feeding into a stakeholder consultation in October.

The Commission has already organised separate meetings with member states to chart the field, and has invited comments from stakeholders by the end of this week (31 July).

International trade implications

In addition to comments on the feasibility, uncertainty and administrative burden of the proposed measures, the Commission is seeking feedback on the international trade implications of biofuel sustainability criteria.

During internal negotiations on the directive, Brazil and many developing countries threatened to challenge it before the World Trade Organisation. Major exporting countries fear that the EU will sneak in strict provisions to limit their access to its market, favouring domestic production.

As the directive has now been published, it provides a clearer framework of what both domestic agro-fuel producers and third-country importers can expect from the EU. It sets down clear-cut figures for future greenhouse gas savings which biofuels will have to achieve compared to traditional fossil fuels, and stipulates that biofuels produced from land with "high biodiversity value" cannot be counted towards the target.

"Brazil has raised the issue [of EU sustainability criteria] in some meetings," a WTO spokesperson told EurActiv. But he added that so far no WTO member had requested the organisation to examine the directive's compatibility with its rules.

However, the legislation's potential provisions on land-use change or even the definition of the concept of "land with high biodiversity value" increase the uncertainty. Eventually, these addutions to the directive could expose it to a challenge before the WTO, experts said.

Moreover, it is far from clear whether it is possible to calculate greenhouse gas emissions resulting from land-use changes.

"We question whether it's possible to come up with any macroeconomic model that is able to explain indirect land-use changes because of the production of biofuels. We don't believe this is possible, but we need to wait and see what science is going to deliver," said Rob Vierhout, secretary-general of the European Bioethanol Fuel Association.

He argued that any model would also have to include the positive effects of biofuel production. For example, animal feed is produced as a co-product of biofuels, which reduces the need to expand soy production in third countries in order to export it to Europe, he said, adding that biofuel production is also proven to increase yield per hectare of land.

Hinting that heated debates lie ahead, campaigners against biofuels have described this as "creative accountancy".

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Industry News-Inventors look to crack electric car conundrum

Researchers grappling with the problem of developing the most fuel-efficient electric cars are using micro-jet turbine engines and 'supercapacity' batteries to help energy-conscious consumers drive further.

Background:

The push to develop a viable electric car has been driven by the need to cut greenhouse gas emissions in order to curb climate change and reduce reliance on fossil fuels.

However, technical and logistical difficulties mean developing a mass market electric vehicle is not so straightforward. Critics say electric cars do not have a long enough 'range' (meaning they are not well suited to long-distance driving) and a major overhaul of power supply infrastructure will be required to make electric cars convenient for consumers.

Nonetheless, political support for greener transport has been growing. In an economic recovery package released last year, the European Union earmarked €5 billion for its Green Car Initiative. The US government is also heaping pressure on US automakers to lead the way on clean technologies.

The EU plan includes support for research into electric and hybrid vehicles, but also allocates funds for hydrogen powered-vehicles and fuel cell technology. High density batteries are seen as key to unlocking the problem of making electric cars compete with contemporary petrol engines.

Earlier this year, EU Science and Research Commissioner Janez Potočnik challenged Europe's automotive industry to come up with workable solutions to electrify Europe's transport system by next year.

Companies from Europe, Japan and Israel believe on-board chargers and high-powered battery technology could give them an edge in the race to produce a commercially viable electric car – and investors are beginning to buy into the idea.

A Tel Aviv-based start-up, ETV Motors, has raised €8.4 million for R&D, and has adapted the top-selling Toyota Prius petrol-electric hybrid to test its theory. The new model does not have an internal combustion engine, but instead features an electric engine with a supercapacity battery and a mirco-jet turbine which powers the vehicle from the rear.

The notion of a turbine-powered electric car is not entirely new, but ETV wants to fine-tune its design for the mass market. It says it has developed a micro-turbine engine to act as an on-board charger and a high-density battery that can power a vehicle for about 60-80 km (35-50 miles) on one charge.

The test car uses newly-designed components which are still undergoing development, the company said, adding that the final product should be ready for tests next year.

Another Israeli project, Better Place, was launched in 2007 with €140 million of venture funding. It has been gaining momentum across the globe, pushing for fully electric cars that recharge by plugging in to a grid network.

Better Place has partnered with Renault and Nissan to develop electric car infrastructure, with Nissan expected to focus on the Japanese market, while Renault looks to bring electric cars to European roads by the end of the decade.

Renault unveiled its first demonstration model in Tel Aviv in May 2008, pledging to begin sales by late 2010 – which would make it one of the quickest vehicles to go from concept to market in automotive history.

Renault and Nissan will hold large-scale joint testing events for its new electric cars in Paris and Milan next year, ahead of mass production scheduled for 2012. The trial conducted in the Paris region will include testing of a new car-charging network, which is being developed in conjunction with electricity giant EDF.

"One hundred electric cars from the Renault-Nissan alliance [...] will be tested from September 2010 for a year by individuals, companies and local authority employees," Renault-Nissan and EDF said in a statement.

Toyota Motor Corp, another of the auto giants developing hybrid and plug-in technologies, said it would start leasing 500 plug-in cars globally by the end of this year.

Better batteries

Toyota said its car will be powered by lithium-ion batteries, and Japan's Nikkei business daily reported this month that the plug-in will be able to run 20-30 km (12-18 miles) on battery power alone at full charge.

ETV Motors says its batteries will power a car for more than twice as long. With its on-board charger, the vehicle will not be dependent on a complicated electric charging infrastructure, although it will be plug-in compatible.

The jet turbine system is also a departure from General Motors Corp's Chevy Volt plug-in, which is also powered by a traditional internal combustion engine. GM aims to introduce the Volt, with its 64 km (40 mile) range, by late 2010.

The game-changing development, said chief technology officer Arieh Meitav, was a higher density battery, based on Lithium Manganese Nickel Oxide.

The batteries will be the first to have 4.7 volt cells, in place of existing Lithium-ion batteries with 3.2 volts. This allows for a longer range with a smaller battery, and it is projected to last throughout the car's lifetime, he said.

The second part of the system, the electricity producing micro-turbine, is being developed with the help of an aviation company – though ETV Motors would not say which one.

The turbine can run off a variety of fuel sources, like gasoline, diesel and biofuel, the company said, and will only operate to charge the battery when it runs low, spinning at a constant 80,000 RPM for maximum efficiency.

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Industry News-ESB acquires two wind farms in Britain

THE ESB has bought its first wind farms in Britain for an undisclosed sum. One is based in Devon and the other is the West Durham.

An ESB spokesman said prices are not being disclosed "for commercial reasons".

The deals mean the Irish semi-state energy group has reached almost half its 2012 target for wind generation in Britain.In its corporate strategy the group said it wanted to have 200MW of electricity under generation in the renewable sector in Britain by 2012.

Fullabrook Wind Farm in Devon has permission to generate up to 66MW of electricity generation with construction expected to start early next year.The 24MW West Durham wind farm, near Tow Law in the north-east of England, started generating power last May.

The group also set out a target of having 3GW of electricity under generation in the conventional manner in Britain also by 2012. It has acquired two conventional plants there including a base in Southampton helping it to move towards its GW target.

ESB’s head of wind development, Joe O’Mahony, said the deals marked the first step in the company’s strategy to achieve 200MW of wind generation in Britain by 2012.

"We are committed to developing a balanced portfolio of generation with less reliance on fossil fuels. Market convergence between the UK and Ireland, and delivery of our low carbon strategic framework, means that ESB sees the UK as a key market. We are delivering on our strategic objectives to become a significant investor in the UK renewables market," he said.

ESBI launched a major investment strategy in Britain last November that has significant plans to develop or acquire wind energy projects.That is in line with the ESB’s strategy to halve its carbon emissions in 12 years and to achieve carbon zero emission by 2035.

Overall, ESB has allocated €4bn specifically for direct investment in renewable generation projects.


This story appeared in the printed version of the Irish Examiner Thursday, July 30, 2009

Industry News-Extra finance to start flowing for wind power

Up to £1 billion of loans for onshore wind farms

Up to £10 million of Government grants for offshore wind technology development

Three UK-based banks start work today with the European Investment Bank (EIB) on a programme to lend up to £1 billion to onshore wind farms over the next 3 years.

The cash, part of the additional £4 billion of EIB lending to support UK energy projects announced in the Budget, will help get building started for onshore wind projects which have been hit by the credit crunch, particularly small and mid-sized wind farms.

The banks – RBS, Lloyds and BNP Paribas Fortis – have been teamed up with the EIB by the Department of Energy and Climate Change (DECC) and HM Treasury, following the announcement in April’sBudget Statement that the Government wanted to get more EIB lending to UK renewables.

Firms can also apply for DECC cash from today to develop offshore wind technology. There will be up to £10 million in grants, part of the £120 million announced in the renewable energy strategy last week to support offshore wind. This is the second round of cash for development of offshore wind technology.

DECC is also confirming today that, subject to agreement on suitable grant offer conditions, it also intends to make an award under the first round of this programme for Vestas Technology UK Ltd’s research and development centre on the Isle of Wight. This proposed award – more than £6 million - would include over £3m of funding from the South East England Development Agency (SEEDA). We expect to make other announcements on awards under this first round of funding shortly.

Energy and Climate Change Secretary Ed Miliband said:

“Earlier this month we laid out a transition plan to a low carbon economy that included a massive expansion of green wind energy. The resources we are announcing back up our plans with clear actions to ensure we deliver.

“The European Investment Bank funds will help the building start on consented wind farms that could provide 1 gigawatt of electricity, enough to power more than half a million homes.

“The money for the development of offshore wind manufacturing will help us generate green jobs on top of our success as the leading country in the world for the generation of offshore wind.

"Alongside these proposals, we are reforming planning laws, finding new ways of working with local communities and are determined to persuade people that we need a significant increase in onshore wind as part of the UK's future energy mix.

“That is essential for the generation of renewable energy and for Britain to have an industrial future in the production of onshore wind."

Ian Pearson MP, Economic Secretary to the Treasury said:

“The £4bn of lending to the energy sector that we announced in the Budget is just part of the £10bn of lending that we hope to see coming into the UK economy from the EIB this year, nearly three times last year's total. I am pleased at the success we are having working in partnership with EIB to provide financing to this and other important sectors.”

EIB Vice President Simon Brooks said:

“The development of the UK’s wind energy capacity will support the European Union’s and national targets for renewable energy generation. As well as helping to reduce greenhouse gasses it will strengthen the security of energy supplies. This initiative underlines the EIB’s long involvement, as the EU’s financing arm, in the UK’s energy sector and reinforces efforts to reduce the impact of climate change”.

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Industry News- Government launches £1 million electric car infrastructure fund

At present there is very little infrastructure for charging low-carbon vehicles

The Department for Transport has launched a £1 million grant fund to encourage the installation of public infrastructure for low-carbon vehicles, including electric car recharging points.

Announced yesterday (July 22), the Infrastructure Grant Programme (IGP) is set to offer an average 50% grant for the installation of alternative refuelling infrastructure, including electric vehicle recharging, and natural gas, hydrogen and bio-methane refuelling.

The Programme is to be administered by the government's appointed low carbon vehicle delivery agency Cenex, and will run until 2011.

Rosie Snashall, electric vehicles and policy manager for the Department for Transport, said: "As our delivery partner, Cenex will leverage the demand from organisations wishing to install refuelling or recharging stations for vehicles, thus enabling them to bring down the costs of reducing carbon for everyone."

The scheme will offer funding for infrastructure hardware costs, and the cost of labour, civil engineering and ground works for each successful project Grants.Cenex said yesterday that both public and private sector applicants were welcome to apply for the scheme, and that firms of all sizes were eligible for grants.

But, speaking to New Energy Focus it added that: "applicants should also note that value for money is one of the assessment criteria and they are encouraged to maximise investment into the project before applying for a grant."

Robert Evans, chief executive of Cenex, said: "For fleet operators, the cost of installing, refuelling or recharging infrastructure has always been a barrier to switching fuel use. This programme will encourage operators to accelerate the introduction of lower-carbon technologies into the UK vehicle market, thereby helping cut the UK's total carbon emissions."

This programme follows on from a previous 30% grant scheme run by the Energy Savings Trust, that was set up to encourage the development of a nationwide network of public fuelling stations.Formed in 2005 and based at Loughborough University, Cenex is supported by the Department of Business, Innovation and Skills (BIS) and aims to promote and stimulate the market for low carbon and fuel-cell technologies.

The organisation will run three Infrastructure Grant Programme information days over the next two months, in Edinburgh, Birmingham and Port Talbot in Wales.

Industry News-Not under our backyard, say Germans, in blow to CO2 plans

German carbon capture plan appears to be a victim of 'numbyism' - not under my backyard

It was meant to be the world's first demonstration of a technology that could help save the planet from global warming – a project intended to capture emissions from a coal-fired power station and bury them safely underground.

But the German carbon capture plan has ended with CO2 being pumped directly into the atmosphere, following local opposition at it being stored underground.The scheme appears a victim of "numbyism" – not under my backyard.

Opposition to the carbon capture plan has contributed to a growing public backlash against renewable energy projects, raising fears that Europe will struggle to meet its low-carbon commitments. Last week, the Danish firm Vestas blamed British "nimbies" opposing wind farms for its decision to close its turbine factory on the Isle of Wight.

Many countries continue to use coal for generating power as it is the cheapest and most readily available fuel in the world. It will probably power the development of China and India. But coal is also seen as the dirtiest fuel. So, Vattenfall's Schwarze Pumpe project in Spremberg, northern Germany, launched in a blaze of publicity last September, was a beacon of hope, the first scheme to link the three key stages of trapping, transporting and burying the greenhouse gases.

The Swedish company, however, surprised a recent conference when it admitted that the €70m (£60.3m) project was venting the CO2 straight into the atmosphere. "It was supposed to begin injecting by March or April of this year but we don't have a permit. This is a result of the local public having questions about the safety of the project," said Staffan Gortz, head of carbon capture and storage communication at Vattenfall. He said he did not expect to get a permit before next spring: "People are very, very sceptical."

The spread of localised resistance is a force that some fear could sink Europe's attempts to build 10 to 12 demonstration projects for carbon capture and storage (CCS) by 2015. The plan had been to transport up to 100,000 tonnes of carbon dioxide from the power plant each year and inject it into depleted gas reservoirs at a giant gasfield near the Polish border.

Scientists maintain that public safety fears are groundless: the consequences of escaping CO2 would be to the climate, not to public health. Many big environmental groups support CCS, both off and onshore, as a necessary evil in the battle against climate change.

But Jim Footner, a Greenpeace climate campaigner, said the German protests were "a stark warning to those that think CCS is an easy solution to the huge climate problems of coal-fired power stations".

The first wake-up call came in March, when a Dutch council objected to Shell's plans to store CO2 in depleted gas fields under the town of Barendrecht, near Rotterdam.

This was despite a successful environmental impact assessment and the enthusiastic backing of the Dutch government, which, in September, must decide whether to give Shell the green light, despite the council's opposition.

Wim van de Wiel, a Shell spokesman, said: "For Shell the only suitable location for the tender was, and still is, Barendrecht, because of the safety and the depleted status of the [gas] field."

Jeff Chapman, chief executive of the the Carbon Capture & Storage Association, said Vattenfall should study the example of Total, which made great efforts to engage the local community when it launched its CCS pilot project in Lacq, southern France.

Stuart Haszeldine, a CCS expert at the University of Edinburgh, warned of the danger of opposition towards CCS snowballing into a "bandwagon of negativity" if too many early projects were rejected. "Once you've screwed up one or two of them, people are going to think 'if they rejected this in Barendrecht, there must be a reason'," he said.

In the UK, CCS is one of the four "pillars" of the government's decarbonisation strategy. A spokeswoman for the Department of Energy and Climate Change said: "We plan to store the CO2 from CCS plants offshore, for example in depleted oil and gas fields in the North Sea. We are one of the first countries to have legislation … to regulate environmental and safety risks."

Politics News-EU launches reflection on future green policies

The European Union needs to reconcile its growth and jobs objectives with long-term environmental goals, says the European Commission in a report taking stock of the bloc’s decade-old sustainable development strategy.

Background:

The European Union first formulated its Sustainable Development Strategy (SDS) during a 2001 European summit in Gothenburg. Although sustainable development is enshrined in the EU treaties, policy implementation remains a problem.

The European Commission's first stocktaking of the strategy confirmed that a number of unsustainable trends were continuing to worsen. It also highlighted the controversial relationship between the SDS and the Lisbon Agenda for growth and jobs.

A June 2006 summit of EU leaders saw the adoption of a renewed SDS strategyPdf external . It addresses seven main challenges: climate change and clean energy; sustainable transport; sustainable consumption and production; conservation and management of natural resources; public health; social inclusion, demography and migration; and global poverty.


Global demand for natural resources is growing fast, European fish stocks are depleting and forests and soils are increasingly challenged by climate change, says the report published on 24 July.

With its recently adopted climate and energy package, the EU has made a positive contribution to sustainable development, but "unsustainable trends persist in several areas," notes the report,which assesses progress made since the Union launched its sustainable development strategy in 2001. The EU executive estimates the annual loss of ecosystem services equivalent to €50 billion and the cumulated welfare losses are estimated equivalent to 7% of GDP by 2050.

Decoupling transport volumes from economic growth also remains a challenge and freight transport has even grown "faster than GDP", notes the report.


Towards renewed priorities

The report launches a reflection on how the EU Sustainable Development Strategy (SDS) should evolve in the future and how it could be better aligned with other cross-cutting EU strategies.The Commission particularly stresses the need to find greater synergy with the Lisbon Strategy for growth and jobs, which will be reviewed in 2010. The report calls for better coordination and linkage between climate change, energy, financial and social sustainability - policy areas covered by both strategies.

According to the EU executive, the SDS could be reviewed to better contribute to "a rapid shift to a low-carbon and low-input economy, based on energy and resource-efficient technologies and sustainable transport, and shifts towards sustainable consumption behaviour".

The progress report will now be handed to EU leaders, who are expected to review priorities and provide orientation for the future strategy later this year. In parallel, the EU is starting to reflect on revising its 2000 Lisbon Strategy, which sought to turn the EU into the "most competitive economy in the world by 2010". 'Green growth' and environmental sustainability are likely to feature high among the strategy's new priorities.

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Industry News-Latest protest leaves climate strategy twisting in the wind

From Shetland to the Isle of Wight, feelings run high as plans to transform the UK into a low-carbon economy hit further trouble.

Europe's largest onshore windfarm project has been thrown in severe doubt after the RSPB and official government agencies lodged formal objections to the 150-turbine plan, it emerged today.The setback adds to the problems facing the government's ambition to install 10,000 new turbines across the UK by 2020 as part of its plan to cut the carbon emissions causing climate change.

The proposed 550MW windfarm, sprawling across the centre of Shetland's main island, would add almost 20% to existing onshore wind capacity. But the objectors say the plans could seriously damage breeding sites for endangered birds, including a rare wader, the whimbrel, which was unexpectedly discovered by the windfarm developer's own environmental survey teams.

Other species at risk include the red throated diver, golden plover and merlin.

The RSPB heavily criticised the proposal from Viking Energy after initially indicating it could support the scheme. The RSPB also claims now that installation of the turbines could release significant carbon dioxide from the peat bogs affected, undermining the turbines' potential to combat global warming.

The group's fears have been endorsed by the government's official conservation advisers, Scottish Natural Heritage, and SNH has also objected to the "magnitude" of the scheme, claiming it could kill many of these birds through collisions with the 145-metre-high structures.

The Scottish Environment Protection Agency (Sepa), which oversees pollution and waste laws in Scotland, has also formally objected, making it inevitable the scheme will now go to a full public inquiry and intensifying pressure on the developers to alter the scale of the project.

In a detailed critique of the proposal, Sepa has asked Viking Energy to significantly rethink its plans to cut out and dump up to 1m cubic metres of peat during construction, and asked ministers to impose tough conditions to protect local water quality and freshwater species .

Bill Manson, a director of Viking Energy, the community-owned company which is collaborating with Scottish and Southern Energy on the scheme, said it would be prepared to negotiate. "I believe there's a dialogue to be had, which will assuage their fears, I hope," he said.

A Scottish government consultation on the £800m scheme closed yesterday, with more than 3,600 of Shetland's 21,000 islanders signing a petition calling for the project to be scrapped.

The Shetland Amenity Trust, a local heritage and archaeological charity, and one of Scotland's major countryside access organisations, the John Muir Trust, have also objected, arguing that the proposal would have a "hugely damaging detrimental impact" on the treeless, hilly landscape.

The dispute has highlighted the conflicts arising over the siting of major windfarms on land, between the need to exploit the most windy locations and the desire to preserve the rural environment.

The government wants to have an additional 6,000 onshore and 4,000 offshore wind turbines installed by 2020 to meet its legally binding target of generating 15% of all energy from renewable sources. There are currently about 2,400 turbines.

ed Milliband, the energy and climate change secretary, has set out an ambitious plan to transform the UK to a low-carbon economy.

But the plans to change the planning system to make windfarm approvals quicker and give priority to renewable projects in granting national grid connections prompted significant criticism on the siting and cost of windfarms.Within a week, the newly formed National Association of Wind Action Groups pledged to campaign against the harmful impact of wind turbine developments on communities and landscapes.

Another blow came from the decision of Danish wind turbine manufacturer Vestas to close the UK's only blade manufacturing plant on the Isle of Wight. The company said the UK wind market was not growing fast enough and that projects had been slowed down by planning objections.Existing windfarms have 3,000MW of capacity, but another 9,600MW is in the planning process.

A further 6,000MW has planning permission but no funding and on Monday the government announced a £1bn loan package to try to fill that funding gap. It argues that the UK has the largest potential for wind power in Europe and already has more offshore wind installed than any other country. Miliband has said that climate change poses a greater threat to landscapes than windfarms and that opposing them should be "socially unacceptable".

Scotland is already home to more than half the UK's onshore wind capacity and Shetland is a key location. The islands reputedly experience the highest and most consistent wind speeds of any comparable place on earth. One small turbine at Lerwick, known as Betsy, is believed to be the world's most productive, reaching 59% of its potential output.

The Viking scheme, if approved by ministers, would alone generate a fifth of Scotland's domestic electricity needs and earn up to £37m a year in profits for Shetland. Manson said yesterday that the scheme had to be large-scale for the energy regulator and National Grid to agree to lay the £300m interconnector cable that would carry the electricity to the mainland. A scheme even half its current size would not be commercially viable.

But opponents claim that the scheme is far too large and that, with a further 62 miles of access roads, it would significantly affect a fifth of the main island's desolate interior and industrialise the landscape."We can't simply build our way out of climate change," said John Hutchison, chairman of the John Muir Trust."It is both cheaper and less destructive to reduce energy need and waste, rather than cover the wild landscapes that define Scotland and its people with wind turbines."

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Political News-Industry stands to win over €5 billion from ETS

Industries participating in the EU's emissions trading scheme will likely end up with surplus allowances worth almost 400 million tonnes of CO2 in the period 2008-2012, undermining the objectives of the scheme, a climate campaign group said this week.

A new report by Sandbag released on 20 July argued that the EU ETS is failing to follow the 'polluter pays' principle, and is in fact subsidising polluters by giving them a large number of free emission allowances instead.

The report estimated that the industries included in the scheme - except those in the power sector - are likely to earn as much as €5.4 billion by selling surplus credits accumulated during the second trading period, 2008-2012. The new entrants' reserve, set aside for those installations entering the ETS scheme, could hold another 300 million surplus permits by 2012, the report added.

The windfall profits result from firms selling their extra allowances to power companies, which by and large have to pay for all their emissions.

Moreover, the scheme includes a "generous safety valve" to counteract potential excess demand by allowing companies to buy offset credits from abroad, the report stated. The second trading period could see some 900 UN-administered CER credits enter the market, adding to what is perceived as increased "hot air" in the system, the report argues.

Sandbag stressed that as permits and offset credits are bankable up to 2020, nearly 40% of the effort required to achieve 2020 caps could be covered by extra allowances from the second phase ending in 2012.

To get the artificial market deliver on reducing emissions, its original purpose, the EU should take steps to tighten targets by 2020 and to cancel the New Entrants Reserve, the NGO underlined. Moreover, member states could offer tax breaks to companies that surrender their extra credits instead of putting them on the market, it proposed.

Ten sites dominate 'shame list'

Sandbag also launched a map yesterday (22 July), indicating which EU industrial installations are short of permits and which have surpluses. The data shows that just ten plants make up 60% of the whole EU surplus, three of them belonging to steel group ArcelorMittal.

Presenting the results in Brussels, Sandbag Director Bryoni Worthington argued that companies in countries with strong 'polluting' industries like Germany, Spain and Sweden have shown great skill in lobbying member states for free allowances, while new member states have distributed their free permits more equally between players.

Worthington said the European Commission had most likely failed to notice the skewed distribution of free permits when it approved the National Allocation Plans due to lack of resources. "I believe that the Commission was caught up by clever member state submissions," she told journalists in Brussels.

Political News-Ed Miliband Guardian Article One giant leap for a greener Britain

Only an Apollo-like effort of imagination and action will help us move to a low carbon economy

Forty years since the Eagle landed on the moon, the idea of a new Apollo project has become shorthand for how we should tackle climate change: politics forcing through the technological limits, a decade-long push, and a nation unified for a shared goal. The Guardian's Manchester Report last week showed there are plenty of reasons for optimism about the technologies that can take us into the low-carbon future.

But like Apollo, the challenge of climate change is to combine political will with technological leapfrog – and, in fact, the political challenge is almost unparalleled in human history. We can't all be rocket scientists (or climate scientists), but every one of us is needed for the political moonshot of today.

If the world agrees to act on climate change at the Copenhagen conference in December, countries will need to maintain their radicalism not just for a year or two but for decades. There must be a consensus from the richest country to the poorest and from democracies to autocracies. When we all depend on each other's actions, the world can't afford climate free-riders.

At home, our consensus already stretches from businesses to trade unions and from the Women's Institute to MTV. But for the pace and breadth of change that is needed many more people must be won over to our cause – to make change themselves and to build a climate change consensus. Climate change denial is given short shrift, but we should not confuse widespread acquiescence for universal enthusiasm. Climate change champions face the classic test of take-off political movements: how to widen the circle of the committed without watering down the clarity of the message.

First, if we are in the persuasion business, all of us have to talk as much about the advantages of the low carbon choice as the disaster that awaits if we don't act. We don't do this enough.

Just look at energy. Two-thirds of the world's gas is in Russia and the Middle East, but renewable energy is homegrown and can help us stem a rising dependence on imports. In manufacturing, there is a thriving set of new industries dependent on low carbon and on ways of cleaning up old sectors, and a chance to build a broader-based economy. Only by making the transition, with government support, can we reap the benefits.

And let's use the moment and cause to think about how we design cities and towns to make it easier for people to enjoy greener space, use public transport and have a better quality of life.

Second, we need not just to appeal to people to change their lifestyles but make it easier for them to do so. Here government has a central role. What will make more people leave the car in the garage and take a bike to the train station? Not finger-wagging, but convenience. As Andrew Adonis, the transport secretary, pointed out last week, the Dutch town of Leiden has three times as much bike storage at its station as all the London terminals put together. In Holland a third of journeys to stations are by bike; in Britain it's 2%. And from bike racks to loft lagging, the UK Low Carbon Transition Plan is designed to help make it possible for people to find a better way.

Third, we need to win some big and difficult arguments to create consensus. To do this we need to be candid about the pressures created by the transition to low carbon and show we will try to alleviate them where we can.

When I launched the plan, last week, I said energy prices were likely to rise by 2020. We need to convince people that despite the costs, the transition is right because the costs of not acting are much greater, and high-carbon fossil fuels offer an insecure future. We need to find ways of making the transition as fair as we can, insulating particularly the poorest people from these effects.

I believe the biggest threat to the countryside is not wind turbines but climate change. We do need to site new turbines in the most appropriate places, but we also need to persuade people that they have to go somewhere, and that the catastrophe wrought by climate change would indeed destroy many parts of our green and pleasant land.

However, building the resolve of a country, let alone a planet, is a big ask. Change happens not just because leaders want it, but because people demand it.Groups are springing up to persuade people to act on climate change. They ally the power of imagination – the rocket on the moon – with the power of example, action in their own lives.

They must also be the kernel of the movement, sustained and broad, that we need to exert pressure on governments up to Copenhagen and beyond. While this week we celebrate Apollo, it is persuasion, campaigning and political argument, not just technological advance, that will generate the giant leaps humankind needs on climate change.

for the copy of this article click here

Industry News-North East Named UK's First Specialist Region For Low Carbon Vehicles

Prime Minister Gordon Brown and Business Secretary Lord Mandelson today welcomed Nissan’s intention to invest more than £200m over the next five years in a new battery factory in Sunderland.

The rechargeable lithium-ion battery plant, Nissan’s European Centre of Excellence for Battery Manufacturing, comes as the Prime Minister announced the region would become the UK’s first Low Carbon Economic Area specialising in ultra-low carbon vehicles.

The battery investment makes Nissan Sunderland a good contender for manufacture of the group’s new “greener” electric vehicles.

Prime Minister Gordon Brown said:

“Nissan’s investment in a new battery plant and its hope to start producing electric vehicles here in Sunderland is great news for the local economy, creating up to 350 direct jobs and creating and safeguarding hundreds more in the associated supply chain.

“This investment is also hugely significant as we embark on Building Britain’s Future, our plan for recovery and beyond powered by low carbon, high technology industries, products and services.

“Sunderland could now be a strong contender to produce electric vehicles for Nissan in Europe, and we will continue to work with Nissan to ensure this happens.”

The Government is working with Nissan on supporting this investment by offering grants and loan guarantees, including support through the Automotive Assistance Programme.

Low Carbon Economic Areas (LCEAs) were introduced in the Government’s Low Carbon Industrial Strategy last week. They aim to draw together national, local and regional agencies to focus support on accelerating the growth of low carbon industries, skills base and supply chain.

The North East LCEA, led by One North East, will focus on supporting the transformation of automotive industry, providing support for innovation and demonstration, skills training and clustering of manufacturing.

Business Secretary Peter Mandelson said:

“The North East has distinguished itself as the first specialised region for ultra-low carbon vehicles. This is good news not just for the North East, but for the whole of the UK, helping to attract foreign investment and securing UK’s place as a global leader in high-tech manufacturing and automotive industries.

“The collaboration between local businesses, universities and colleges will create a hub of expertise to boost innovation and accelerate business growth in this important area of ‘green’ industry.”

As part of the Low Carbon Economic Area, the Government intends to establish:

·A training centre - the first to specialise in the manufacture and maintenance of ultra-low carbon vehicles. Government is in discussions with national companies such as the AA about how the centre can help update skills to keep up with the growing use of ultra-low carbon vehicles.

·A Research & Development Centre - serving as a home for research from all five local universities bringing together fundamental and applied research in ultra-low carbon vehicle technology and use.

·An open access test track to trial the use of new technologies.

·One NorthEast is also looking at options to reopen all or part of the Leamside Rail Line, which would help improve access to the Port of Tyne to boost imports and exports in the region.

·Over the next two years 750 charging points will be installed in a range of locations in the NorthEast, including supermarkets, shopping centres, public transport installations, hospitals, universities, public buildings and domestic and business premises. The first points are currently being installed in Newcastle and Gateshead.

One North East chairman Margaret Fay said:

“One North East welcomes this visionary announcement. It confirms the North East of England’s growing role at the forefront of the low-carbon economy and cements the region’s position as a leading location for electric vehicle development in Europe.

“The North East’s Low Carbon Economic Area will be extremely important for the future of the automotive industry in the region and will enable One North East to attract further investment related to electric vehicles and their infrastructure.”

Client News-Press Notice for Broadview Energy in South Warwickshire

BROADVIEW ENERGY INVESTIGATING FARMLAND SITE IN SOUTH WARWICKSHIRE FOR SMALL WIND FARM

Date of Issue: Monday, July 20th 2009

Broadview Energy Limited has today announced that it is considering the development of a small wind farm on agricultural land close to Junction 12 of the M40 motorway, and in the vicinity of the villages of Knightcote and Bishop’s Itchington in Warwickshire.

The company, which is developing a number of other small wind farm projects in England and Scotland, has identified the site as a possible location for up to 6 wind turbines. The company now needs to carry out a series of technical and environmental studies on the site (known as Starbold) and the surrounding area to confirm its initial findings.

Broadview has submitted a “Scoping Document” to Stratford-on-Avon District Council (the local planning authority) which outlines the scope of the studies that are to be carried out as part of the project’s Environmental Impact Assessment (EIA). The Council will consult on the Scoping Document with parish councils, the Environment Agency, the Highways Agency, other government agencies and organisations such as Natural England and the RSPB. Once the scope is agreed, Broadview will set about completing the EIA which is expected to take six to eight months.

Jeffrey Corrigan, Managing Director of Broadview Energy said: “We have carried out initial studies and we think that the Starbold site could be ideal for a small wind farm. It’s windy and it’s set away from residential areas. It’s now necessary to carry out very detailed work to confirm our initial views. The results of the EIA, along with our consultations with local people and others, will establish the viability, size and precise location of the wind farm and whether or not we decide to take forward a scheme for planning approval by Stratford-on-Avon District Council.”

Public consultation is an important part of Broadview’s development work and the company will be holding “drop-in” sessions for local people after the summer holidays to give them an opportunity to learn more about the wind farm project and to meet members of the Broadview Energy team.

Jeffrey Corrigan added: “We are at a very early stage in the process but we are keen to let people know about our plans, our reasons for choosing the Starbold site and the contribution that onshore wind power can make to the region and to the country as a whole. In turn, we want to hear people’s initial thoughts on our plans and how they see renewable energy in helping to protect the environment and to secure the country’s energy future”.

As well as the “drop-in sessions”, Broadview Energy has launched a project website (www.starboldwindfarm.co.uk) and will also publish regular bulletins about its work. Assuming the environmental and technical studies confirm the Starbold site to be suitable for a wind farm, Broadview Energy will hold a series of exhibitions where people would see the final design and layout of the proposed scheme.

Notes to Editors:

1.Broadview Energy Limited (www.broadviewenergy.com) develops wind energy projects in the United Kingdom that generate clean, sustainable energy. Broadview takes projects from site identification, through the planning process, to construction and ultimately operation. The company focuses on small projects, typically between two and ten turbines. It currently has a number of projects under various stages of development throughout the United Kingdom.

2.The Government published its Renewable Energy Strategy on July 15th 2009 and has now set a revised target of 30% of all the electricity produced in the UK to be from renewable sources by 2020; currently the figures sit at approximately 5%.

3.The West Midlands Regional Energy Strategy (published in November 2004) includes targets for increasing the use of renewable energy. In August 2008,the West Midlands had approximately 188MW of renewable energy (primarily wind power) either projects in the planning process awaiting planning determination, those which have received planning consent but are yet to be constructed, those being constructed or those which are operational.

For more information:

Broadview Energy Limited

Lisa Ross, Community Relations Manager: lross@broadviewenergy.com / 020 8487 9150

Or Paul Taylor: paul@taylorkeogh.com / 020 3170 8465

Industry News-Government admits marine power fund has run aground

Plans undermined by admissions that it has not handed out any of a £50m marine development fund set up in 2004.

Government promises that it would establish Britain as a global centre for tidal and wave power have been undermined by admissions that it has nothanded out any of a £50m marine development fund set up in 2004.

Companies have often complained that the rules for the Marine Renewable Deployment Fund (MRDF) are so demanding that they have struggled to get money from the Department of Energy and Climate Change (DECC) to develop prototypes.

"As yet there have been no projects which have met the necessary requirements [of the MRDF]," the department told the Observer, but it insisted that changes made in the government's renewable energy strategy, published last week, would transform the situation.

A new Marine Renewables Proving Fund of £22m has been set aside to help marine power companies reach the stage where they would be eligible for MRDF money. The fund requires companies to demonstrate their prototype power systems have operated for at least three months before they can receive money.

Companies argued they needed funding earlier and the DECC has finally agreed. The department has also sought to make up ground by pumping £9.5m into the trial Wave Hub wave power system off Cornwall plus £8m for the European Marine Energy Centre in the Orkneys.

In addition the marine power sector should benefit from £10m being put into the south-west, which is the UK's first low-carbon economic area.

http://www.guardian.co.uk/business/2009/jul/19/utilities-energy-marine-power-uk

Industry News-Review of UK policy annoucements on the future of energy and transport

Through out the week there was a blizzard of announcements focusing on the future of UK energy and decarbonising transport.

On Wednesday 15th of July the UK government published a white paper called the UK Low Carbon Transition Plan which has three elements; Renewable Energy Strategy, Low Carbon Industry Strategy and the Low Carbon Transport Plan. The paper sets out the government’s plans to meet its target of cutting carbon dioxide emissions by 34 per cent from 1990 levels by 2020.

In general the announcement focused on the renewable sector which is expected to increase its production of electricity from 6 per cent to 31 per cent over the next eleven years to 2020. The government wants to encourage all forms of low-carbon energy, Marine, Biomass, Onshore & offshore wind, nuclear power and clean coal (CCS) power stations that capture and store their emissions.

At the heart of the government's plans are giant offshore wind parks. The renewable energy industry will be given £120m to develop offshore wind technologies. The Government is allocating up to an additional £60 million for a suite of measures which will help accelerate the development and deployment of wave and tidal energy

The government reiterated their support for clean coal power generation and the progress being made in the area but were not forthcoming with any more statements. The June 2009 CCS consultation document along with the four site trials that are being funded will determine the future of the industry in the UK. In a new move the government are to open an Office of Carbon Capture and Storage to support the delivery of CCS. Full details will be announced in the autumn of this year.

Nuclear energy received little mention in the announcement apart from the government saying that it still had a part to play in the energy mix. The government are looking at streamlining the planning and regulatory approvals processes for new nuclear power stations. A national policy statement and a consultation document is due to be launched later in 2009.

The Government will provide capital investment to establish a Nuclear Advanced Manufacturing Research Centre that combines the knowledge, practices and expertise of manufacturing companies with the capability of universities. This will complement the existing Advanced Manufacturing Centres in Sheffield and Glasgow and the Nuclear Laboratory in Sellafield.

Low Carbon Transport Plan

The Low Carbon Transport Plan focussed on decarbonising transport by moving to an integrated transport system with cycling, cars, rail, public transport and aviation all playing their part.

Lord Adonis, the Transport Secretary pledged to reducing CO2 emissions from transport by 14 per cent by 2020. Under the new proposals the government will offer consumers grants of up to £5,000 if they purchase low polluting cars such as electric and plug in hybrids. Under the new proposals only cars that emit 75g per km of C02 or below will be eligible for these grants. The best-performing hybrid in the market in of 2009 is the Toyota Prius emitting 89g/km per KM of CO2.

The transport white paper has been welcomed environmentalists and business groups and is expected to become law by the end of the year. An overall a package of £250m of consumer incentives is being invested by the government to stimulate the take up of electric and plug-in-hybrid vehicles (This £250m figure is not new this announcement was made by Lord Mandelson the spring 2009).

One area where the move to more electric vehicles and hybrids has been falling down is in the area of charging points. There are very few in London and even less per square mile across the UK. This is significant. The move to electric vehicles will be slow if the consumer has the hassle of having no charging points outside their home. There is a serious need for charging points to be rolled out across the UK transport infrastructure quickly.

Recognising this as an issue the government have launched a new Alternative Fuel Infrastructure Grant Programme. The government will also unite Whitehall interests through the new Office for Low Emission Vehicles.

But this will not be the end of the debate. The government are working closely with industry and key stakeholders to develop a roadmap to 2050 by spring 2010. In autumn, the Committee on Climate Change will provide further analysis of the pathway through 2030 to 2050. The Government will work with the Committee, taking its analysis and recommendations into account when developing the roadmap to 2050. So there are several more negotiations and steps to go in the UK energy debate.

Jonny Mulligan

Industry News-Commission tables EU winter gas storage plan

The European Commission yesterday (16 July) proposed a new regulation on the security of gas supplies, obliging member states to take pre-emptive measures to avoid disruptions in the wake of a January dispute between Russia and Ukraine.

Background:
In November 2008, the European Commission presented a revised version of a 2004 directive on the security of gas supplies as part of the Second Strategic Review, aiming to reduce Europe's reliance on foreign energy imports.

The January gas dispute between Russia and Europe's main transit country Ukraine made the revision of the existing 2004 directive on gas supply security imperative, as it revealed the EU's inability to respond to emergencies. The row led to widespread supply disruptions for a fortnight in Eastern Europe, reducing the EU's gas supply by 20%.


"We have known for some time that the existing arrangements to deal with gas emergencies are insufficient […] All member states recognise that we need common standards for security of gas supply for the whole EU," said the bloc's energy commissioner, Andris Piebalgs.

The proposal authorises the Commission to declare a Community emergency at the request of a single member state, or when the Union loses more than 10% of its daily gas import from third countries. It also entitles the EU executive to coordinate member-state actions between one another and towards third countries.

EU states have a three-year transitional period until the end of March 2014 to ensure that they have either enough gas storage capacity or diversified energy supplies to handle a 60-day supply disruption in extreme winter weather.

But unlike the proposal for a revised directive on oil stocks approved by ministers last month (EurActiv 15/06/09), the gas regulation does not require compulsory strategic stocks as it is replaceable in most uses, the Commission said.

Instead, the document sets common standards for member states to define "serious gas supply disruptions", called 'N-1'. This refers to the preparedness of a country to satisfy its total gas demand during 60 days of exceptionally high gas demand if there is a disruption in the largest gas supply infrastructure.

In order to meet the N-1 standard, member states have to designate a competent authority to assess risks and establish both preventive and emergency plans.

The Commission reserves the right to require that plans be revised if they do not comply with the regulation.

To meet the infrastructure requirements, the regulation obliges transmission system operators to ensure reverse flow capacity on all interconnections within two years after the entry into force of the directive, if it would enhance the security of supply of a member state.

Piebalgs said Baltic nations would face the biggest challenges in meeting the standards, with the largest investments needed in Lithuania and Slovenia,where gas consumption is significant. Denmark, on the other hand, is best placed with its own production, while Germany and Belgium have "decent storage capacity" and are doing fine, he added.

For the full copy of this article click here

Industry News-European Industry chiefs call for sectoral approach to climate change

A fair, new international climate regime should include sector-based agreements, leading to binding targets for emissions cuts in developing countries, the European Round Table of Industrialists (ERT), an influential group of CEOs, said in a paper published yesterday (15 July).

Background:

International negotiations are proceeding at full speed in order to agree a replacement for the Kyoto Protocol, which expires in 2012.

The first United Nations Framework Convention on Climate Change (UNFCCC) talks in Bonn (29 March–8 April) launched negotiations for a draft agreement in view of the final conference in Copenhagen later this year.

The draft negotiating text, prepared ahead of June's second round of climate talks, revealed a divide between rich and poor countries.Developing nations are asking their industrialised counterparts to commit to sizeable CO2 reductions and to offer financial aid to help poor nations in their efforts. But developed countries have not made any firm commitments on funding, and only the EU has taken on a firm CO2 reduction target, which nevertheless fails to meet the developing world's demands.

In the meantime, the negotiating text has ballooned to hundreds of pages as all parties have reacted with amendments. No agreement was reached at the June talks on financing for developing countries to mitigate and adapt to global warming.

At the sidelines of a G8 meeting in Italy on 9 July, the Major Economies Forum, comprising 17 countries that are accountable for 75% of global emissions, agreed for the first time to limit global warming to two degrees Celsius.

The EU will be able to upgrade its 2020 objective of slashing emissions of global warming gases from 20% to 30% only if an international agreement is struck to spread obligations evenly among the global community in order to avoid competitive distortions, the group said in the paper.

"Seen from a European perspective, an effective international framework is one that allows the EU to continue competing in the global market by ensuring that the gap is minimised between those leading on the implementation of emission constraints and those following as their economies build capacity to
manage emissions," said Jeroen van der Veer, former CEO of Shell and chair of the ERT's Energy & Climate Change Working Group.

The ERT is a forum of around 45 chief executives and chairmen of major national companies, including E.ON, GDF Suez, Siemens, Nokia, BT and Fiat.

The business leaders see a global greenhouse gas emissions market as the principal tool to deliver emission cuts. Industrialised countries with binding targets should link national cap-and-trade systems together to finance clean technology programmes in developing countries, the group said.

"This will establish a widespread market price for emitting CO2 (and other GHGs) into the atmosphere and deliver the reductions at lowest cost to the global economy," the paper reads.

UN projects to go large-scale

The UN's Clean Development Mechanism (CDM), which allows industrialised countries to earn offset credits by financing mitigation efforts in the developing world, should be redesigned to support large-scale projects - notably in the electricity sector - that are driven by a carbon price, the ERT argues. Lower-cost measures such as energy efficiency would largely be financed by developing countries themselves, it says.

More advanced developing countries, on the other hand, should "stabilise their absolute emissions in the medium term through nationally appropriate actions and thereafter, make a firm commitment to reduce absolute emissions," the report states.

This could be done via sectoral agreements with industrialised countries, the paper argues. The agreements would enable developing countries to adopt emissions reduction programmes in specific sectors like cement or steel to tap into funding and build capacity.

"Each agreement should include the eventual implementation of a long-term binding target for the sector or sectors in question," the ERT says. It adds that the approach could be extended to areas such as deforestation and afforestation. This has been envisaged under the UN's REDD mechanism, which is likely to feature as part of the deal in Copenhagen (EurActiv 20/04/09).

In order to reduce the need for protection for EU sectors that have the price of carbon added to their production costs, each agreement would have to involve at least 80% of world production of products in each particular sector and lead to CO2 reductions comparable to what the EU has set, the paper states.

One of the technologies that the business group would like to see transferred to the developing world through revamped CDM projects is carbon capture and storage (CCS). It calls for an international carbon storage certification, which would deliver a certificate for each tonne of carbon buried underground.

For the original and full news article click here

Client News-MGT Power coverage in the Financial Times

Green light for £500m biomass plant

England’s biggest biomass power station, a £500m plant at Teesport, near Middlesbrough, was given the go-ahead on Wednesday .The 295-megawatt capacity renewable energy plant, capable of generating enough electricity to meet the needs of 600,000 homes, will be one of the world’s biggest biomass plants.

Announced on Wednesday to coincide with the unveiling of the government’s low-carbon strategies, the plant is expected to save 1.2m tonnes of CO2 per year and account for 5.5 per cent of the UK’s renewable electricity target.

David Kidney, the energy minister, said: “In just over 10 years’ time, 40 per cent of the country’s electricity will come from low-carbon sources, like biomass.”

The British company developing the wood-fuelled power station is MGT Power, established 18 months ago to develop biomass-generation projects in the UK and continental Europe. Main shareholders include Trafalgar Asset Managers and MKM Longboat. An as yet unnamed international group of four banks, including a UK high-street name, will provide debt finance for the project, MGT’s first.

The Teesport power station, to be built on the South Dock area, owned by PD Ports, won local authority planning approval last November and hasnow received final approval from the Department of Energy and Climate Change. The plant will use 2.4m tonnes of woodchips each year, sourced from North and South America and the Baltic states, and is expected to produce the same amount of renewable electricity over a year as a 1,000MW wind farm.

Chris Moore, director of MGT, said the plant had secured an early connection date to National Grid, to which it would export power from 2012.

“Other, similarly sized biomass plants are proposed in other parts of the country but our Teesport project is currently two years ahead of the pack and likely to be one of the first to be operational,” he said.

This article was published in the Financial Times and can be seen here

Political News-Summary of UK Governments Renewable Energy Low Carbon Transition Plan

Ed Miliband has today announced its strategy for meeting carbon emissions targets and to a massive increase in renewable energy.

The announcements today are to demonstrate the government is committed to fighting climate change and reducing carbon emissions.

In a wide ranging announcement Ed Miliband covered all of the main issues including the focus on the technologies needed, infrastructure, feed in tariffs and the need to have skilled work force that can fuel the ‘green economy’.

Summary of the key points

General Notes
•Regional Development Agencies will play a crucial role in partnership with the Government to promote the development of market-led technology clusters for low carbon energy developers.

•South-West will be developed into the worlds first Low Carbon Economic Area.

•The Government and the Technology Strategy Board will work to improve collaboration and knowledge sharing within and beyond the UK through the launch of the Energy Knowledge Transfer Network as a one stop shop for investors and developers in energy generation.

•The Intellectual Property Office will consider how the Government can support small- and medium-sized businesses developing low carbon technologies to license them in developing countries.

•Renewable Energy Industry will be supported with an additional £4billion from the EU Investment Bank. In the short term the government thinks it will be able to bring forward £1 billion for small and medium sized renewable projects.

Marine
•The Government is allocating up to an additional £60 million for a suite of measures which will help accelerate the development and deployment of wave and tidal energy in the UK and will cement our current position as a global leader in the sector.

•The Government will double its financial support to Wave Hub – the development of a significant demonstration and testing facility off the Cornish coast – with up to £9.5 million of investment. The Government is also proposing to invest up to £10 million at NaREC, the New and Renewable Energy Centre, in the North East to build on and utilise existing infrastructure to provide an open access facility for marine developers to test and prove designs/components onshore.

•The Government will also provide up to £10 million to support the South West’s significant potential for wave and tidal energy deployment, research, demonstration and engineering and up to an additional £8 million from the UK Environmental Transformation Fund to expand the in-sea stage testing facilities at EMEC, the European Marine Energy Centre, in the Orkneys.

•In addition the Government will launch a Marine Renewables Proving Fund which will provide up to £22 million of grant funding for the testing and demonstration of pre-commercial wave and tidal stream devices. This will accelerate wave and tidal technologies’ move towards commercial demonstration and assist the development of successful projects under the Marine Renewable Deployment Fund. Taken together, these investments will provide the UK with unparalleled testing and demonstration facilities.

Emmissions and Trading Cap
•Emissions in the traded sector, for the purposes of accounting under the Climate Change Act, are fixed at the level of the UK’s share of the declining EU Emissions Trading System cap.

This will be equal to the level of auctioning rights the UK receives plus the number of EU allowances that are freely allocated to UK installations. Combined with the emissions reductions that measures in the non-traded sector are expected to deliver shows how the UK, on central projections, will meet the first three carbon budgets.

Wind
•The Renewable Energy Strategy recommits the Government to a massive increase in renewables generation going up from 5% today to 30% by 2020. Based on the figures in last year’s draft strategy this implies 22% of all electricity will come from offshore and onshore wind and another 2% from marine technologies.

Carbon Capture and Storage

•The Department of Energy and Climate Change will also establish an Office of Carbon Capture and Storage to support the delivery of this work. Full details will be announced in the autumn of 2009.

•In 2007 the Government launched a competition to build one of the first commercial scale projects in the world. In April 2009 the Government announced that new fossil fuel power stations would have to be designed and built so that they could fit CCS in the future.

•In a consultation launched in June 2009, the Government proposed a new financial and regulatory framework to drive the development of CCS. These proposals included plans to fund up to four CCS demonstrations in the UK and a requirement for any new coal power station to demonstrate CCS.

•The Government is considering how to encourage clusters of CCS infrastructure and expertise, in key areas, such as Yorkshire and Humber, the Thames Estuary, the Firth of Forth, Tyne/ Tees and Merseyside, bringing major employment and regeneration benefits.

Local Generation and Feed in Tariffs
•The Government working with the energy Saving Trust, energy companies, Local Authorities, the Distribution Network Operators (DNOs) and others to test the uptake in the interest of the ‘whole house’ approach. The government are going to put up to £4m to support these initiatives.

•The Government is putting in place financial rewards for small-scale low carbon electricity generation, with Feed-in Tariffs from April 2010. Payment for the electricity produced by small-scale generators, will be provided through the electricity supply companies and encourage the uptake of renewables by schools, homeowners, hospitals, businesses and communities.

Job Creation and Training
•Renewable energy also requires specialist skills. The Office for Renewable Energy Deployment is working with industry on a strategy for skills in wind, wave and tidal energy and is also establishing the National Skills Academy for Power. Full plans will be published towards the end of 2009.

Planning and enabling timely investment:
•The government is committed to delivering sufficient financial investment, and ensuring the attractiveness of the UK as a place to invest.

•Ensuring planning policies support the development and installation of low carbon technologies. The focus here is around the IPC and the statutory legislation related to planning matters.

•Taking advantage of the replacement/ refurbishment schedules of existing plants and infrastructure

Delivering the engineering challenges of building a low carbon energy system of this scale:

The government understands that meeting the physical and supply chain challenges of building new, reliable electrical generating capacity and other energy infrastructure at this scale, particularly in the face of likely international competition for these capabilities will be challenging.

The focus going forward will need to be on developing or upgrading infrastructure as it becomes necessary. As well as the electricity grid (transmission and distribution networks), this could include networks for transporting and storing captured carbon, systems for managing nuclear waste, hydrogen or electric vehicle fuelling/charging networks and community heat systems.

The Energy Mix
The government understands that the transition in matching evolving sources of demand for energy with new sources of supply in an efficient and practical mannerDeveloping technologies that will be needed to close the energy gap and meet the government commitments to reducing carbon emissions.

Future Consultations
• Government will develop a strategic roadmap to 2050 by spring 2010, working closely with industry and wider stakeholders.

•In autumn, the Committee on Climate Change will provide further analysis of the pathway through 2030 to 2050 The Government will work with the Committee, taking its analysis and recommendations into account when developing the roadmap to 2050.

•The Government is consulting on the detailed design and proposed tariff levels for ‘Feedin Tariffs’ alongside this Transition Plan.10 A household with a well-sited photovoltaic installation could receive over £800 plus bill savings of around £140 a year.


Click here to review and see all of the four documents released by the government today