Client News-MGT Power Announce 295 biomass power station at the Port of Tyne

MGT POWER ANNOUNCE PLANS FOR 295MW BIOMASS POWER STATION AT THE PORT OF TYNE

Date of Issue: Monday 10th August 2009

MGT Power Ltd today announce plans to develop a second major biomass power generation project at the Port of Tyne in the North Tyneside.

The proposed 295MW Tyne Renewable Energy Plant (Tyne REP) will be located on industrial land in the Port of Tyne, North Shields and is 10 kms east of Newcastle City Centre. The site is on the north bank of the River Tyne. The scheme will generate carbon neutral electricity for around 600,000 homes in the North East of England.

Subject to planning, this major plant, generating power from sustainable sources of biomass, is targeted for commercial operation in 2014.

Chris Moore, Director of MGT Power said: “With the Government committed to more renewable electricity generation over the next decade, our Tyne biomass project along with our consented scheme at Teesport will make a significant contribution to the Government’s targets. Large scale biomass projects can operate at baseload and each scheme will produce in one year as much green electricity as the largest 1,000MW wind farm project. Each biomass project will also save 1.2 million tonnes of CO2 from being emitted every year.”

As a first stage in the Tyne REP planning process, MGT Power has outlined details of the project in a “Scoping Document” which has been circulated to a large number of local and national organisations, including North Tyneside Council, the Environment Agency and the Department of Energy & Climate Change. The Scoping Document outlines the rationale for the project, the energy and planning policy framework and the technical studies and consultations that MGT Power will undertake as part of the project’s Environmental Impact Assessment (EIA).

Chris Moore added: “Just as we did with our Tees Renewable Energy scheme, we are consulting widely from the start, both with key organisations and local people. We see the Tyne project as not only a major green power project for the UK, but one that will contribute positively to the local area and the North East economy, primarily in terms of local investment and employment. We intend to hold a public exhibition of our plans in September.”

North Tyneside Mayor, Linda Arkley, said: “Tyne REP would bring substantial benefits to the borough and the wider region, representing an investment of over £400 million, the creation of hundreds of construction jobs, future permanent on-site jobs, 300–400 indirect jobs and an annual spend of £30 million
in the local economy.

“We are committed to the regeneration of the North Bank of the Tyne and bringing jobs to the area. I welcome the fact that MGT Power Ltd have chosen North Tyneside as their preferred location and look forward to supporting them for the benefit of our residents.”

Andrew Moffat, Chief Executive of the Port of Tyne welcomed MGT Power’s plans: “Our mission is to provide a sustainable, vibrant Port of Tyne and the Tyne Renewable Energy Plant represents a major long term investment that will take full advantage of the excellent facilities, infrastructure and
capabilities offered by the Port.”

The biomass feedstock for the Tyne Renewable Energy Plant will be sourced from certified sustainable forestry projects developed by the MGT Power team and partners in North and South America and the Baltic States, and in the longer-term UK sources. The biomass is clean burning woodchip, which delivers 95% greenhouse gas savings in comparison to coal or natural gas through the life cycle and will not use high quality land suitable for food crops. The plant will use around 2.4m tonnes of woodchips per annum and will operate at baseload – 24 hours a day, all year round.

Notes to Editors:

1.Details of the Tyne Renewable Energy Plant and a copy of the Scoping Document can be obtained via a dedicated website www.mgttyne.com or by contacting MGT Power via email at info@mgttyne.com.

2.MGT Power (www.mgtpower.com) was established in December 2007 to develop biomass generation projects in the UK and Europe. The management team includes Chris Moore, Ben Elsworth, Thiago Azevedo and Noel Forrest who have backgrounds in UK power generation and the supply of renewable energy feedstocks. The company’s main shareholders include Trafalgar Asset Managers and MKM Longboat. The firm’s financial advisors are Ernst & Young and engineering consultants are Pöyry Energy and PB Power.

3.As a storable, concentrated energy form, wood biomass allows electricity generation 24 hours a day, all year round, in contrast to intermittent renewable sources such as wind or solar. MGT Power will use trees sustainably planted specifically for use as fuel, such as Short Rotation Forestry (eg. Eucalyptus, Pines) and Short Rotation Coppicing (eg. Willow, Poplar).


4.The Port of Tyne Authority, created by statute, is a trust port (www.portoftyne.co.uk). It is a deep river port, with round-the-clock access, 2.5 miles from the mouth of the river Tyne. Its main function is the improvement, maintenance and management of the Port. The Port is a commercial enterprise, but it is not funded by Government and has no shareholders. It has five main business areas: conventional and bulk cargoes; logistics;
car terminals; cruise and ferries; and estates. Any surplus is reinvested into a programme of continuous improvement to the benefit of the users, the community and the North East economy. The Port of Tyne Authority is chaired by Sir Ian Wrigglesworth.

5.MGT Power Ltd is the developer of the Tees Renewable Energy Plant, which secured planning consent from the UK Government on July 15th and is scheduled to start operating in 2012.

6.The Mayor and Cabinet have no involvement in the determination of planning matters and any application that is submitted by the developer will be dealt with in accordance with the Council's adopted planning process including if appropriate referral to the Planning Committee.

For further information:

MGT Power Ltd (www.mgtpower.com)

James Court (Taylor Keogh Communications): 020 3170 8467/07921330356

Call Jonny Mulligan (Taylor Keogh Communications): 07875019695

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".

For the full version of this article click here

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.

The full article appears here

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”.

For full details on this press notice

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-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-Strategy For Low Carbon Businesses to Benefit British Jobs

The Low Carbon Industrial Strategy, launched today, sets out the action the Government is taking to ensure that British businesses and workers are equipped to maximise the economic opportunities and minimise the costs of the transition to a low carbon economy.

The strategy follows from Building Britain’s Future: New Industry, New Jobs, and sets out how the Government aims to ensure that the transition to low carbon is a source of quality jobs and business savings in Britain: from our rapidly developing civil nuclear industry and renewable energy sector, to energy saving in our smallest SMEs.

The strategy identifies a range of low carbon sectors with potential for job creation and growth. These include: wave and tidal power; civil nuclear power;offshore wind; and ultra-low carbon vehicles. It also sets out the Government’s strategy for removing barriers that are blocking the development of Britain’s full potential in these areas.

The strategy recognises that local and regional strengths offer a good foundation to realise future economic benefits for Britain. The first Low Carbon Economic Area in the South West of England will create a business and skills focus on marine energy demonstration, servicing and manufacture.

The strategy also sets out the first investments from the £405 million for low carbon industries and advanced green manufacturing announced at Budget 2009.

Key investments include:

•Up to £60 million to capitalise on Britain’s wave and tidal sector strengths, including investment in Wave Hub – the development of a significant demonstration and testing facility off the Cornish coast – and other funding to make the South West Britain’s first Low Carbon Economic Area.

•Up to £15 million capital investment in order to establish a Nuclear Advanced Manufacturing Research Centre consisting of a consortium of manufacturers from the UK nuclear supply chain and universities.

•A £4 million expansion of the Manufacturing Advisory Service, to provide more specialist advice to manufacturers on competing for low carbon opportunities,
including support for suppliers for the civil nuclear industry.

•Up to £10 million for the accelerated deployment of electric vehicle charging infrastructure.

•Up to £120 million to support the development of a British based offshore wind industry.

The strategy also recognises that there are challenges for the workforce particularly for those in high carbon industries. The Government will create a new Forum for a Just Transition to advise on how to address the issues, with representatives from Central Government, national, local and regional bodies, Trade Unions, business organisations, and third sector bodies.

Announcing the strategy Business Secretary Peter Mandelson said:

“There is no high carbon future. But if the transition to low carbon is inevitable, what is not inevitable is that we use the transition as a chance to develop new jobs, new industries here in Britain. This strategy builds on the New Industry New Jobs approach, outlining the strategic role the government will play alongside the private sector, to make the most of the potential benefits for innovation, growth and job creation in the UK.

“Low carbon and environmental goods and services are already worth £3 trillion to the global economy, and in the UK employ nearly 900,000 directly and through the supply chain. With the sector set to grow by over 4% per annum over the next six years we must do all we can to support British businesses and workers in benefitting. Today we are announcing the first investments under the £405M funding allocated in the budget. We must ensure that we equip businesses and the workforce with the capabilities and skills to take advantage of the potential benefits as the world moves towards a low carbon future.”

Click here for more details

Industry News-Prince Charles calls for sustainability

Prince Charles delivered this years Dimbleby Lecture last night, titled “Facing the Future”.

Speaking on a wide range of topics, the overriding theme was sustainability, with the actions needed to avert environmental collapse.

Referring to an earlier speech in March, when he said there were "less than 100 months to act" to save the planet from irreversible damage due to climate change, he said there are now onely "96 months left".

He called for a new Age of Sustainability rather than our current "Age of Convenience" and a step change in our view of money and development.

Drawing similarities with the current financial crisis "Just as our banking sector is struggling with its debts... so Nature's life-support systems are failing to cope with the debts we have built up there too," he said. "If we don't face up to this, then Nature, the biggest bank of all, could go bust. And no amount of quantitative easing will revive it."

Combining practical measures with philosophical insights “So much, it seems to me, depends on how you define both “growth” and “prosperity.” Most would agree, I think, that the main result of progress should be less misery and more happiness. But in our modern situation these “ends” have become dangerously confused with the “means,” to the point where, now, wealth, innovation and growth have become the final goals.

They have become the destination, when they were only ever at best a vehicle for getting there.”

“It seems that through a drift of ethics, the direction of our economic system has ended up being an end in itself – an entity that must be grown,rather than directed and honed to reflect the aspirations of communities, human well-being and the limits of ecology.”

Prince Charles has been a long time advocate of sustainability, and the speech was well received by most in the media.

See a full copy of the speech here and for the next 7 days you can watch the lecture here.

Political News-Energy Debate must focus on renewables, smart grids, smart meters,smart tariffs and improving planning

Westminster All Party Climate Change Group debate on renewables

The debate around renewables is still open. While they are accepted as being a key part of the energy mix and necessary in decarbonising energy the variety of technologies used to generate power has often been cited as being a barrier to increasing their use in the UK.

As part of its legally binding EU renewable energy target (EUTS), analysts have suggested the UK may need up to source 35-40% of its electricity from renewables by 2020. A high proportion of the UK's renewable electricity is likely to come from onshore and offshore wind, whose variability needs to be managed.

One week ahead of when the UK government is expected to publish its ‘Renewable Energy Strategy’, a new report Managing Variability, by energy analyst David Milborrow, claims that the UK’s grid could cope with the variable energy input generated from wind farms.

The UK can meet its targets of generating more than a third of its electricity from wind by 2020 without raising the risk of blackouts at an additional cost of £2 for every £100 electricity bill.

The report commissioned by WWF, RSPB, Green Peace and Friends of the Earth looks at the options already available to manage variability on the system, identifies solutions for the future and assesses ways to minimise costs.

Yesterday evening the All Party Parliamentary Climate Change Group (APPCCG) held a Westminster debate discussing the report findings and the many opportunities that exist for delivery of UK renewable energy targets and grid development and management.

The debate was chaired by Colin Challen MP, and the panel included Dr. Keith Allott, Head of Climate Change, WWF-UK, Chris Bennett, Future Transmission Networks Manager, National Grid, Dr. Keith Maclean and Head of Policy and Public Affairs, Scottish & Southern Energy.

The overall message from the panel was that using more wind energy is ‘do-able’. Countries such as Denmark and Germany have already ‘removed the myths’and have proved that a variety of sources can be used to generate energy and supply the network.

Chris Bennett spoke confidently that the ‘changes in transmission and to the national grid could and have already been made’. Similar to other commentators he noted that more “investment will be needed” and that the focus must be put on the ‘market to ensure the right levels of generation” is reached. He said that that they had “already started work on increasing the numbers of interconnectors with Europe and it is now that market questions need to be put on the table”.

Dr. Keith Maclean called for a ‘sensible discussion to be had around renewables and a real debate around capacity demand’. He noted that the ‘real thing to note is that renewables replace fossil fuels so in essence they are reducing emmissions’.

The complexity of the energy mix and how to reach supply is one the reasons that Maclean called for caution in “going all out in support of one technology or the other”. He said that he was “pleased that the government was looking at biomass and issues around storage”. He believes that “the real challenge is in the timing, getting everything right and delivering the policy, the investment and building of new plants for biomass, thermal and wind farms at the right time”.

One key point that he did raise is “the uncertainty that there is around small projects because of issues in relation to transmission charges. Smaller developers need to be able to show the bank that they can make a return on their investment and for this to be done DECC needs to use their powers under the energy act very quickly to make this happen”. His fear is that unless action is taken in this area soon there will be no investment for more small to medium generators going into the market”.

Unfortunately it was very hard to hear anything that Dr. Keith Allot from the WWF said. But from what we did record he said “there are other renewables out there and we need to look at marine, biomass and geothermal. CCS looks like a very expensive way of producing energy but the WWF will wait and see”.

Key points in debate:

•The WWF and members from the BWEA were pushing for wind as being the main solution members of the panel kept repeating that focus needed to be put on the mixed energy approach.

•Both Bennett and Macclean said emphasised the point that planning is an area that needed to be focused on and sped up.

•The panel agreed that both biomass and marine would have a lot to play in energy supply but to make this happen companies will need to receive more investment. In order to do this smaller companies will need to be supported in being able to demonstrate their ability to generate power and get it onto the network so banks and investors can explicitly see return on investment.

•The discussion around ‘capacity’ and ‘demand’ and what renewables such as wind, biomass, marine and geo-thermal must be clearer.

•The energy must start to focus on integration of smart grids, smart meters and smart tariff plans for customers.


Click here to read David Milborrow full report Managing Variability

Client News - MGT Power Director, Ben Elsworth examines the challenges for biomass developers in the UK

The Case for Biomass

The UK is facing a challenging renewables target. By 2020, 15% of its energy must come from renewable sources – this equates to roughly 35-40% of electricity produced.

As New Power readers will know, onshore and offshore wind projects are likely to provide the bulk of thatenergy however in the last few months a rash of new biomass projects have emerged.

In the following article, Ben Elsworth* examines the issues facing biomass developers in UK.

If you would like to read more of this article please click here for the full pdf

This article appears in the latest issue of New Power UK

http://newpoweruk.com/

Client News - MGT Power Outlines need for biomass in Utility Week

Biomass is ready to play its part in fighting climate change

Written by: Ben Elsworth | 12 June 2009

Forty years is a long time, half a lifetime even. But over 40 per cent of the UK's current generation capacity was running, in construction or in advanced planning, 40 years ago, and almost no capacity of that vintage or younger has yet been decommissioned. Thus, as the power generation industry contemplates its role in the UK's legally binding commitment to reduce greenhouse gas emissions by 80 per cent by 2050, decisions taken now will play a massive role in deciding whether or not this important target will be met.

The realistic candidates for near-zero carbon generation on a national scale are wind, nuclear, coal fitted with carbon capture and storage (coalCCS), biomass and tidal. There is little doubt that some mix involving at least the first four of these technologies will be required to meet a power demand which may well rise significantly to accommodate new forms of electric transport.

What concerns me about official predictions of the future is that few seem to take account of the requirements for load matching. Generation must be dispatched on and off to meet variable demand and this creates a merit order of plant with different utilisation rates. Of the five technologies, three (nuclear, wind and tidal) are completely non-despatchable, by which I mean that, if anything, it costs more to turn them off or down than to keep them running, and these must run when available. CoalCCS is more flexible but still has high capex costs, so that the power it produces will be expensive unless it operates at a good load factor.

That probably leaves biomass alone to fill the role of lower-mid-merit generation, although demand-side flexibility and additional interconnection to Europe may also help with system balancing. The vast number of wind turbines planned for both the UK and the continent will only increase the need for flexible generation.

I believe that large-scale biomass generation can meet this challenge at an acceptable cost, but I am worried by the lack of early engagement from the major players - there is a development curve to go through, on the technology and fuel side. The big six UK energy utilities have deployed massive resources to develop plans for wind, nuclear and coalCCS, but so far their involvement in dedicated biomass has been small scale. The total amount of dedicated biomass constructed or being actively developed by the big six is about 300MW, not much bigger in thermal terms than the single biomass boiler at Alhomens Kraft in Finland, which has run with excellent reliability since 2001. It would be almost unthinkable to build a new import-based coal boiler at half the scale or less of the most efficient proven reference plant, yet that is the most that any of the big six plan to do for biomass.

The utilities cannot use economics as an excuse. Capex per MW for the biggest biomass boilers is far lower than for nuclear, wind or coalCCS. What is more, the cost of the biomass fuel is entirely offset by Renewables Obligation Certificates and Levy Exemption Certificate income (under the new Renewables Obligation banding legislation) for 15 years, although only for the most efficient plant sited at the best locations. With the right approach, sustainable biomass fuel can be procured on secure, long-term, fixed price contracts, in stark contrast to gas, the future price of which is anyone's guess. Today's power grid is long on flexible gas and coal plant and short on low-carbon generation, therefore it makes sense for biomass plants to run baseload for now and then switch to mid-merit running later when new nuclear and wind plant start to dominate the system.

People often complain that big plants will rely on imported biomass. I don't deny it, but there is no reason why, in the long term, the UK cannot produce its own biomass. There has never been a market attractive or stable or large enough to encourage efficient industrial scale fuel development. It is chicken and egg, but with farmers having had their fingers burnt in the past, demand will have to precede supply. Imported sources are able to bridge the gap, but UK-produced fuel, transported by rail, barge or coaster, could compete strongly on price, especially with energy crop status.

The UK could eventually produce enough sustainable biomass to fuel 10GW of mid-merit plant without affecting food supply. Such a target would require the Forestry Commission to start meeting its targets for new forest plantations, for a large but realistic proportion of previously set-aside or disused land to be converted to short rotation forestry or other perennial energy crop, and for much greater extraction of biomass from waste streams. All of those things would take time, but are achievable. The prize is a flexible, secure, sustainable and competitive source of energy and tens of thousands of new jobs.

Ben Elsworth, director MGT Power

http://www.mgtpower.com/

Client News- Marine Current Turbines outlines challenges for Marine Energy to the Energy and Climate Change Parliamentary Committee

Managing Director of Marine Current Turbines (MCT), Martin Wright, gave evidence to the Energy and Climate Change committee yesterday, outlining difficulties emerging wave and tidal energy developers are facing.

As Chair of the Marine Energy Group of the REA (Renewable Energy Association) and with his work with leading tidal stream developers MCT, Mr Wright gave warnings to the committee that many emerging technologies will suffer in the current financial climate.

He also gave warnings regarding that the high costs of grid connection and unfair market mechanisms are all taking their toll on marine companies, which will damage the growth of this promising and much-needed technology.

Please find more details of the pioneering work MCT here

Political News- Irish Energy Policy central to economic growth

Opportunities for growth in the Irish Energy Market

The Irish National Board for Enterprise and Science Forfas reported that the country has shown strong sector growth in renewable energies, efficient energy use and management, waste management, recovery and recycling, and water and waste water treatment.

Forfas believe that the decisions that are taken today on Irelands Energy policy will influence the prosperity of the country for the next twenty years.

The government is under pressure to create employment and to stop the rise in immigration of the educated migrants who are starting to leave due to the Economic down turn. The simplest move is to refocus the work force from a failing construction industry on the energy sector and it’s supporting sectors.

.

A number of priority areas have emerged for investment including;ICT control systems for energy efficiency, Eco-construction, Carbon trading and green technology investment. For these opportunities to be taken improvements are required to the framework conditions of skills, regulation, public procurement and R&D.

In line with the US and the EU the Forfas report points to a dual strategy of investing in Energy as a way to fight the two challenges ff rising unemployment and climate change. However with the public purse at an all time low and leading Irish Economists such as Colm McCarthy calling for cut backs of five billion Euros the government will be hard pressed to find the investment needed.

By accident or by design there are a few positive aspects for the Irish energy sector. The timely delivery of Ireland’s planned energy interconnections (i.e., the north-south tie line and the east-west interconnector) and new generation plants are important to ensure adequate generation capacity and to improve energy cost competitiveness. The unbundling of the transmission network is an important element in attracting new

investment in generation capacity into the Irish market and should be progressed as a matter of priority.

The Forfas report calls for the government to prioritise the work of the Energy Research Strategy group so that it can accelerate and increase the capacity for the Irish Energy market to benefit from existing technology in and outside of Ireland. The government must now respond as to how they intend to fund future research and bring this body forward.

Energy Related Goods and Services

Forfás completed an assessment of the opportunities for Ireland within the Energy Related Goods and Services sector, matching international trends in investment to technological advances and domestic capabilities. In Ireland decisions made on energy policy will provide the operating context for businesses inIreland over the next 20 years.

The report sets out a range of recommendations to enhance the development of the Irish Energy Sector. A key outcome of this work has been the establishment of a High Level Action Group on Green Enterprise with a mandate to report back to Cabinet with an action plan for taking advantage of the opportunities identified by this piece of work. Forfás will provide the secretariat for this High Level Action Group.

http://www.forfas.ie/

Political News-UK Government, Draft Legislative Programme (Building Britain’s Future)

On Monday, the UK Government announced its legislative programme for the coming parliamentary session.

The coming session is due to be a short year, starting in November, and finishing in April, and as such, only 11 Bills have been proposed.

The early announcement of next years Bills allow for consultation between now and November to amend or suggest changes and policies for the subject areas covered.

The Bill of relevance is another Energy Bill

Energy Bill
Moving decisively to a low carbon economy while maintaining the security and diversity of electricity supplies by:
• Introducing a financial incentive, funded by electricity suppliers, to support up to
four Carbon Capture and Storage (CCS) commercial-scale demonstration projects.


The Energy Bill is primarily concerned with Carbon Capture and Storage, and the energy challenge facing the UK. However, the Bill may develop more ‘meat’ between now and November, with market incentives for energy production possibly being re-visited and potential obligations for energy providers to move to renewables.

The Government also announced consultation papers, which if elected they would propose at the next Parliament.

Energy and Climate Change White Paper:
Setting out proposals on how we might adapt the UK’s energy grid to link homes and businesses to new forms of power generation as well as proposals and polices to de-carbonise electricity generation and other energy supplies. (Department for Energy and Climate Change)

Low Carbon Industrial Strategy:
Providing a clear and credible long-term framework to encourage investment in the sector and to ensure the UK is the best place to locate and develop a low carbon business. (Department of Business Innovation and Skills/Department for Energy and Climate Change)

Active Transport Strategy:
Setting out how we can encourage different ways of getting around that use less carbon, reduce congestion and promote health and wellbeing. (Department of Health/Department for Transport)

None of these Bill’s will be introduced this year, and it would seem unlikely they will be unless the present government wins the next election. However, they offer opportunities to shape the thinking of the Civil Servants as well as influence decisions made by Minister’s between now and May 2010.

The Government also laid out its vision for investment in new infrastructure.

Building world class infrastructure:
Seizing the opportunities of the future depends on having truly nationwide, high quality business and technical infrastructure. That is why we must give priority to bringing greater focus to building and modernising our economic infrastructure in energy, water, waste, communications, as well as transport and housing.

Industry News-Platts European Utility Supply Chain Conference,June 22-23

Delegates from across Europe attended the conference in London, chaired by Henry Edwardes-Evans Editor of Platts Power in Europe. The main messages coming through the conference were the significant and timely need for new investment in energy infrastructure not just in the UK but across Europe to replace aging power plant and to achieve a reduction in carbon emissions. Vattenfall’s speakers spoke of their company’s commitment to achieve carbon neutrality in their Nordic operations by 2030 and across the whole of their business by 2050.

Other issues highlighted during the conference were the management of risk during project development (eg planning, cost, new technology, regulation), the need for consumers to realise that the price of electricity will have to rise and a looming skills shortage in the power engineering industry if steps aren’t taken now to invest in training and people. Whilst acknowledging the obvious challenges facing the energy sector, there was also the recognition at the conference that there are major supply chain opportunities in the current market and these will expand as the UK and the rest of Europe seeks to modernise its energy infrastructure.

Speakers at the Platts Conference included senior executives from National Grid, RWE npower, EON UK, Iberdrola Engineering & Construction, Vattenfall, Microsoft and Danish wave technology company, Wave Star Energy.

Author: Paul Taylor, Taylor Keogh Communications

http://www.linkedin.com/in/taylorkeoghcommunications

Politics - Gordon Brown Cabinet Reshuffle June 2009

5th June 2009
* No change for Ed Miliband or Lord Mandelson
* Geoff Hoon steps down as Transport Secretary
* Labour set for big defeats in local elections

Over the last twenty-four hours the rumour mill of political intrigue and whispers driven
on by the media machine has reached overwhelming proportions. The current crisis in British politics started with the nationalisation of the banks and the global credit crisis. It was made worse with the Daily Telegraph revelations about the MPs expenses. This has resulted in all political parties and the body politic being damaged. The revenge from the public is expected to come in the form of protest votes and no votes in the European and council elections.

Party politics
It is not surprising Gordon Brown and the government are the focus of most of the criticism from the political classes, media and the public. This is the role of the government and part of the job of being the incumbent. What is surprising is that the parliamentary Labour party have embarked on a dance with death and the old Blairite Vs Brownite rivalries have again come to the surface. Many have thought that these days were over.

Over the past week at times it has looked as if the parliamentary labour party have ommitted themselves to a perverse Hari Kiri which in the end will only benefit the opposition parties and leave the grass roots supporters and party workers demoralised and bewildered in the movement they support.

Both the Conservative and Liberal Democrats are trying to take the political advantage and build on their respective improvement in the opinion polls. As expected they are calling for a general election. This is an obvious move but an interesting one when the public are so dismayed with the political classes over the expense scandal. Opinion polls have a history of being proved wrong so it would be naive of Cameron and Clegg to put all their faith in them.

The Conservatives have been damaged by the expenses scandal in the same way that Labour have been. Many commentators agree that the Cameron team are ‘policy lite’ and have yet to come out with some concrete ideas as to how they would govern. In comparison the Liberal Democrats while unscathed by the expenses scandal still remain the smallest party who never gain from the electoral system. The challenge for Clegg is that many members of the public think that Vince Cable is either the chancellor, the leader of the party or indeed both. They also challenges in communicating their policy to the electorate. However it is important to note that early indications show that the Liberal Democrats will gain in the local elections the results which will be delivered on Sunday evening.

The Future
It is expected that Gordon Brown will successfully reshuffle the cabinet which should work to bolster his strength. If he achieves this the calls for him to step down from within his party should calm down. He will immediately need to set about focusing on the general election which will be within twelve months. The challenge he now faces is to get the support from his back benchers, the parliamentary Labour party and most importantly to reconnect with the grass roots. To achieve this one would expect that he will need to swing the left and back to the core Labour heart land. He will need to be seen to invest and make real tangible changes on the ground in lowering unemployment, solving the crisis in education and investing in
industry.

Brown needs to focus on cleaning up Westminster and will be hoping that the economy
improves and that the fiscal policy delivers the changes that are needed to beat the credit crisis.

Cameron and the Conservatives will continue to ride high in the opinion polls and pose a great threat in the next general election. Today they are bookies favourite to win but maybe not with the landslide that the current opinion polls indicate. They will need to work on the nuts and bolts and communicating their policies.

The Liberal Democrats while making inroads in the local elections will have to work harder to convert their gains in the opinion polls to become a reality at the ballot box. In summary there is a tidal wave of change that is underway in UK politics. Twelve months is a long time in politics and it is possible that Brown and his cabinet could turn the tide and win the next election. But at present this is not appear a realistic possibility.

Changes in Cabinet
* Alan Johnson – Moves from Department of Health and becomes the new Home Secretary
* Yvette Cooper – Moves from Chief Secretary to the Treasury to Work and Pensions Secretary * John Hutton – Steps down as Defence Secretary
* Andy Burnham – Moves from the Department of Culture to become the new Health Secretary
* Geoff Hoon – Steps Down from office
* Bob Ainsworth – Defence Secretary
* John Denham – Moves from Innovation Secretary to become the Minister for Health

No Changes
* David Miliband – Foreign Secretary
* Ed Miliband – Climate change Secretary
* Alistair Darling – Chancellor
* Lord Mandelson – Secretary of State for Business, Enterprise and Regulatory Reform
* Jim Murphy – Minister for Scotland
* Douglas Alexander – Minister for International Development
* Hilary Benn – Minster for Department of Environment, Food and Rural Affairs
* Harriet Harman – Leader of the House
* Peter Hain – Minister for Wales
* Jack Straw – Justice Minister
* Ed Balls – Education & Children’s Secretary
* Lady Royall – Leader of the House of Lords
* Sean WoodWard – Northern Ireland Secretary

New Arrivals
* Sir Alan Sugar to be Enterprise Tsar – Non Cabinet post
Other Political Changes
* Paul Goodman, Conservative MP for Wycombe – Shadow Communities Secretary to
step down at next election.

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