Category: Carbon Risk

Policy impacts, right side of the bell curve

Makers – a Viable CFI methodology

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Recently a discussion group was asked for information on the area needed to make a Carbon Farming Initiative (CFI) methodology viable. I follows the answer is not as simple as it should be and part of the problem is the rules can change and even the responsible entity itself might change. This statement is not an example of a remote possibility, it is very much what is likely to happen.

First issue: The market.

Currently a Australian Carbon Credit Unit is reported as holding steady at approximately the Carbon Price Mechanism expectation of $23 (actually ACCU spot price is $22.60 at 4 April 2013). Compared to the trading prices of others. For example the Carbon + Market Daily (www.cedaily.com.au) shows European Union Allowances (EUA eligible on Australian Scheme from mid 2015 – June 2016: AUD $7.48 – no change) 
* Certified Emission Reductions (CER eligible on Australian Scheme from mid 2015 – June 2016: AUD $0.67 – up 6.4%) 
* New Zealand Units (NZU spot can’t be used to meet liabilities under the Australian scheme: NZD $1.97 – down 2.5%) 
* Australian Carbon Credit Units (ACCU spot Kyoto units issued under the CFI that can be used to help meet Australian scheme liabilities: AUD $22.60 – no change). They also report of conflicting market drivers, and this is in addition to the Coalition threats to dismantle the carbon price mechanism, that the European market is struggling to hold above EUR5 on moderate volumes. Problems include:

1) An increasing likelihood that backloading will be passed as more countries come out in support of the proposal; and

2) High auction volumes relative to emitter demand.

3) Increased selling in the New Zealand market as more participants’ look to switch out of their NZUs and into cheaper international units.

4) June 2016 prices for EUAs and CERs reflect the cost of these units to an entity liable under the Australian scheme’s floating price phase.

5) The EUA (December 2013 contract) is a focus as this drives price movements and is a key indicator of EU (European Union) market sentiment.

Conclusion – first issue: Transactions involving carbon give rise to substantial risk (including regulatory risk) and are not suitable for all investors. It is recommend that you seek your own independent legal or financial advice before proceeding with any investment decision

Second issue: Carbon Auction Rules.

The Clean Energy Regulator is likely to be required to offer 60 million carbon units in 2013-14 under draft carbon auction rules. The potential is the opening price is at 60% of the international market price. Follow the link of the

exposure draft of a carbon auction determination, and it will outlines arrangements for auctions that are set to begin next financial year.

If you are relying on an incoming Coalition Government to repeal the determination, you should note s113(9) of the Clean Energy Act allows the Regulator to hold auctions even without the determination. It might not be so simple as a statement to win votes – it is written in stone so to speak.

Conclusion – Second issue: Without control of the senate, or if the senate is hostile, a Coalition repeal instrument would be disallowable. This introduces additional risk, and additional to regulatory risk. As in the first issue it is recommended you seek your own independent and financial and legal advice.

Third Issue: ACCU methodology.

It costs up to $1M to develop a methodology acceptable under CFI. Once accepted the transaction cost to create the ACCU’s is said to be about $70,000. Although it is not a definite cost, it can be less but a reasonable guide and it requires you to look carefully at the potential yield of each project and whether you can smear the transaction cost across the entire project to determine the minimum size for it to be a worthwhile program.

One way to develop a methodology and reduce your cost base is to apply to the 

Methodology Development Program (MDP) for a grant to develop the methodology. The 

MDP is a 
$19.6 million for the development of methodologies for use in the Carbon Farming Initiative. The fund is administered by the Department of Climate Change and Energy Efficiency (DCCEE).

However, recently the Government has moved from 26 March 2013 that DCCEE be in transition to be part of a new super department called the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education. 

It is reported as a move the Australian Government hopes will be seen as logical and a way to portray that climate change is taken seriously across all of government and across all portfolios. Details changes are yet to be fully announced, albeit it is known the Climate Change Adaptation Strategy has changed with 140 projects, 33 university programs and 100 researchers affected – source ABC.net.au.

Conclusion – Third issue: Before expending too much time on the methodology. The suggestion is you follow up on who would administer the program post transition to the super department, and the will to continue with the program. Any changes will have cost implications for your efforts.

If only we had certainty!

Confident with no confidence – QLD style CID

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Asking a cursory ‘Trust you are having a good and Happy Easter up in Queensland’. The reply was a shocker: “We are stuffed, I suppose the next thing we will get is a letter in the mail, stating we have to walk off our property so they can push every thing over for Ergon and the mines – Love Sharron”.  What was referred to is an alleged flawed process for the duplication of the 63 klm long 110kV power line from Warwick to Stanthorpe in Queensland, and the mounting speculation a public announcement has been held back from that process.

Ergon Energy is sponsoring the Community Infrastructure Designation (CID) process, under the Section 200 of the Sustainable Planning Act 2009 (SPA). The SPA details the process required for CID, providing an emphasis on ensuring that adequate environmental assessment and public consultation occurs prior to Queensland Government approval.

But it is suspected Ergon Energy has not been fully consultative with landowners and the community on the proposed corridor and cracks are appearing in the approval tactics under the Queensland Government’s CID process. According to the ‘grape vine’ what is held back is announcing mining is coming to Warwick, which is backing off Cherribar Resort owned by Chinese investors (a Resort set up to supply 400 homes for dignified living of people of Chinese origin), and the facilities includes the operating of their own airstrip. The timeframe is said to be in about 18 months, and soon after Cecil Plains coal seam gas and open cut mining has started.

CO2Land org then felt compelled to research this story further and then noted the Southern Free Times has been running stories on the progress of the proposal by Ergon Energy to build an additional power line to supply the Stanthorpe area. A quick check indicated this means 3 supply lines to cater for the area. (Stanthorpe – translated as old English meaning ‘tin town’ – is a town situated in south east Queensland, Australia. The town lies on the New England Highway near the New South Wales border 223 km from Brisbane via Warwick, 56 km north of Tenterfield and 811 m above sea level. The area surrounding the town is known as the Granite Belt. At the 2011 census, Stanthorpe had a population of 5,385.)

According to the local government council, the population of the Southern Downs Region has increased over the past 5 years at an annual average rate of 1.4%.  They say this rate is above the national average for inland regions not affected by the current resources boom. They also say the population increase has been brought about partly by the “tree change” phenomenon, and partly by the affordability of high quality housing – currently averaging 40% less than Brisbane prices. That said it would be hard for Ergon Energy to argue population growth numbers justifying such a large expenditure on an underutilized power line – at a community expense, certainly not justified for at least another 10 years without a resources boom planned!

However, the headline of Southern Free Times of 28 March 2013 read “Stanthorpe needs Power Reliability Says Springborg” – the opening paragraph included “The State Member said he remains confident in the decision making process of a Stanthorpe Power Line Community Reference Group, despite rifts in the group and a loss of community support”. Looking deeper into the story we find 6 of the 11 member CRG have resigned!    This sounds a bit odd – the State Member (also the Qld Gov Minister of Health) ‘remains confident’ and the CRG has no confidence in the CID process? So what is really going on here?

On reading the entire story it is noted a number of good points are raised in the Southern Free Times and the expected well scripted responses come from Ergon Energy.  But what was not covered were some big burning matters such as: Fair compensation for the loss of use or abandoning the use of your homes and property to make way for a duplication of the 110kV power line (it seem Qld in cutting the red tape for approvals also avoids the option of owners selling land affected at market price, or even accept a fair rent for the use of the land). Next, the line will be redundant unless significant growth for the need for power increases above the expected planned growth scenario. This is something the regulators must test for who benefits and whether the abandoning of the need in the lifetime of the line will result in undue costs to the community. Especially if the ‘grape vine’ is correct as to the actual need for such a large duplication.

The big issue in all this is not even remotely covered. That is the case for smearing the costs with the community when it may be a benefit for say a new mine or foreign investment interests, and that user might pull out of the area before the economic life of the line is reached.  We can think of numerous examples where this happens and one ripper is Cobar in NSW – the lines were put in and the mine shut down leaving the community to pay the costs. Costs that we now know could be avoided.

What evidence is there that financial and lifestyle costs could be avoided? The answer is actually in the responses from Ergon Energy to the Southern Free Times. A absolute major give away and indicator of the real agenda  – Ergon did not say that all alternatives had been evaluated, they said proposals to met expected demand for alternatives had not been included in time. They also said two lines currently serve the area including an 110kV and a 33kV line. They argued the 33kV line can only supply half of the current peak load. Extrapolate that to peak loads and the capacity of the current 110kv line is fine and allows for load growth of the predicted 18% over the next ten years. It also means demand response measures, if taken, will cater for peak load without new infrastructure. It also means a duplicate 110kV power line will at best be utilized 5% of the time – if you research the Power of Choice submissions with AEMO you will find similar analysis.

Also noted in Springborg’s response is he said new infrastructure was required and without detail other than a general statement the community is entitled to reliable power. Maybe the CRG should ask a few more questions, like:

  1. Why do you need more than what is stated as the need in growth scenarios (reference to published planning and forecasts from other than Ergon)?
  2. Why do you think technology will not provide solutions at a least cost other than conventional distribution of power? and,
  3. If a new industry development other than what is required by a community in growth were introduced would that industry pay a fair and reasonable rent for the infrastructure?
  4. Would a fair and reasonable rent be returned to the community?

Of course these questions are very likely to elicit more the well scripted replies to the questions, but then you could just ask them again only at a different level. For instance, if the state said the means is more important than the ends, it should be tested thoroughly.

Co2Land org now asks: If we consider the four primary schools of thought in general jurisprudence :

  •   Natural law is the idea that there are rational objective limits to the power of legislative rulers.
  •  Legal positivism, by contrast to natural law, holds that there is no necessary connection between law and morality and that the force of law comes from some basic social facts although positivists differ on what those facts are.
  •  Legal realism is a third theory of jurisprudence which argues that the real world practice of law is what determines what law is; the law has the force that it does because of what legislators, judges, and executives do with it. Similar approaches have been developed in many different ways in sociology of law.
  • Critical legal studies is a younger theory of jurisprudence that has developed since the 1970s which is primarily a negative thesis that the law is largely contradictory and can be best analyzed as an expression of the policy goals of the dominant social group.

Has the Queensland Government and Ergon (a government entity) set the theme of better practice or has the quest for the means of the market overtaken good policy for the ends to look after the community?  If the means is more important can we say the community consultation businesses that influence, is only in the interest of making a market other than setting up community representative groups with limited knowledge of the true agenda? Therefore are these groups only to give comfort to the Minister of state that all is well on a certain issue?

DoIICCSRTE – again one more time around

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If you wondered if the writing is on the wall for climate change adaptation strategies what better declaration other than to say we need a new super department and call it the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.

As of 26 March 2013 the transition has started in a move the Australian Government hopes will be seen as logical and a way to portray that climate change is taken seriously across all of government and across all portfolios. In asking the question will it work? Consider:

Logical – The movement of Energy Efficiency to Resources; energy and emission reduction policies best fit is with Climate Change.

Illogical – the same super minister overseeing mining companies will manage renewable energy.

Means – the urgent need to decarbonize the economy.

Ends – to cut funding to over 140 projects across 33 universities around Australia. To affect more than 100 researchers in the ability to carry out critical work on climate change adaptation.

The game is to be seen as promoting innovation. That word innovation is being used as a football – or should we say moneyball.

If you are not aware the opposition is committed to reducing expenditure by $23b and if you think of what the Government has done – it is making that very difficult to do as the expenditure trimming has started and it will be difficult to extract efficiency dividends on already lean departments without stopping practices all together.

Therefore it is a game of tactics as both the government and opposition are committed to strategy for climate change. The tactics appear at this stage to be:

Government – creating a Super department and reducing the Department of Climate Change staffing numbers from about 1000 to around 600, and reducing funding to research facilities.

Coalition – reunite Climate Change and the Environment in a relationship it believes makes more sense, and revisit six green star accommodation at the Nishi building at a cost of $10 million a year.

Co2Land org take s particular note of the coalition stance and where they say it makes more sense – it does for control purposes. However, it will fall into the same traps of the Howard era and quickly be unworkable as a policy instrument. But then again that will allow ‘yes minister’ to continue and compel a review at opportune times.  The term then was a ‘broad policy approach’ – history to repeat itself?

Because it is good reading we suggest you research this matter asking the questions:

And what happened to Climate Change Adaptation? Has that once commonly used title now gone altogether? Then follow up on the link –

The ABC did a story last month about the future of the body charged with preparing the nation to meet the challenge of global warming, the National Climate Change Adaptation Research Facility.

 

Confronting Risk – its about the marketing effort

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Being corrected by a 15 year old can be confronting – but she was right – the risk model is about marketing potential, not financial exposure. Potentially all those years of study, and all those educators that instilled what was expected of us – all wrong!  So fellow innovators we can look to the thought leaders for inspiration, can we not?

A friend recently attempted to post a story, and complained that the story was not just moderated but removed as a post. In this instance the group, the Carbon War Room, may have thought the scenario too cheeky? However, Co2Land org found the story was a visualization of how branding can prevent an innovator from getting the correct exposure, and how opinion might be too concentrated and worried about marketing risk, which inadvertently prevent a fair review of the financial exposure of not following the innovator.

The author below I will identify as Peter:

“I have heard that Richard Branson has a 1 $billion private investment plan to help Island nations with adopting renewable energy, they are just waiting to identify the best technology to go with. Our plan for the Pacific Rim Island nations facing the same problems is to get some of our island friends going ourselves in the mean time with a properly designed and integrated biomass gasification system and containerized syngas reformer and invite him and his corporate mates across, have them picked up from the airport in a renewable alcohol fueled jeepnee and delivered to the jetty where a Green diesel fueled inter island boat takes them to their coconut shell powered hotel on the next island while they deliberated their options over locally caught and syngas fried fish & prawns with side of biochar grown fruit & vegies, sipping wine cooled using waste heat driven absorption chillers, and distilled activated carbon filtered water from the evaporators while their used biodegradable plates and cups are quietly taken away with the rest of the rubbish and recycled through the gasifier where the reformer can also produce a little aviation fuel to refuel his plane while he visits…all of which helps build the local economy and create far more permanent jobs than importing solar panels and wind turbines (though these certainly to do have their place as part of the overall energy mix). All of the above is possible with existing proven technology. The solutions are out there, just not supported by big business yet”

So as not to prejudice this discussion in any way Peter was quick to add “I am not a depositor in a bank in Cyprus….”.  Now that, Co2Land would say is outside the risk model of this discussion, and cheeky! On reflection, maybe we should look at how many brand banks are exposed in Australia?

 

Its Real – again

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That word ‘real’ has popped up again – and we must prepare to again endure the use of a synonym and have it portrayed as the truth. Perfect for politicians is the use of the word or term ‘real’ as it can be seen as a initial or promised activity increase and not guarantee an increased activity (it could be real activity and still lead to a decrease of activity!!). So if I say it was real at the time I acted; I have been true to my intent to act in good faith, and equally a review of my intent can happen when convenient. The issue with the word ‘real’ in this context is it literally means the activity is a cause of change.

To put this in context in August 2012, Co2Land org wrote two stories that looked at the use of ‘real’ with implications for the Carbon Farming Initiative its legislation and regulations. In the Story

Time for a real review Posted on August 20, 2012 by co2land , the opening paragraphs said:

‘Smart forms of research has found that customer service and sales skills are considered the least important when building a brand, and it would seem big brand and government know this very well. This might explain why any meaningful programs are explained in a way of the language of spin. For what is done would we not prefer to hear or feel that our policy makers value some measure of the actions and actively seek feedback from those that influence our lives at least every 6 to 12 months from a startup campaign. This view suggests government is a business – a business that must please its total stakeholder basis.

Why should this happen? Take a look at quotes taken from the writings of Laurissa Smith and Anna Vidot (www.abc.net.au ), on Monday, 20/08/2012, the story ‘Carbon farmers challenged by rigorous process’: “The guidelines which set out how they can make money from schemes like the Federal Government’s Carbon Farming Initiative are still being developed…It’s still sitting under consideration with the Domestic Offset Integrity Committee which is the committee tasked under the clean energy regulator to review the methodologies…So we hope that it’s going to become available for public interest by early 2013.” This is extremely frustrating when you consider the Department responsible made announcements of a body as set up for Carbon Offsets in June 2010.”

While numerous new methodologies are now approved – what holds true is that branded entities and those that were transitioned from the Greenhouse Friendly Program benefited, and most farmers that hoped to earn credits have not.

Then in the story Real, Additionality, RECs Posted on August 14, 2012 by co2land , the opening paragraphs it was said:

“Observing CTi’s Carbon Offsets 2 day Masterclass offering, it occurred that a US based mob was on about getting real about ‘real’ carbon offsets. Curiosity led to checking out the reporting standard AS/NZS ISO 14064, finding it is silent on the word or term ‘real’ and completely avoids the topic of additionality, was fascinating given that you can’t even conceive of an offset without the concept of additionality!

CO2Land org now ponders: If ‘real’ cannot be a guarantee of a good project outcome. It follows that the use of the word or term ‘real’ can be seen as a initial or promised activity increase and not be seen as a guarantee of an increase in the carbon offset (it could be real activity and still lead to a decrease of carbon offsets). So if I say it was real at the time I acted; it was an act in good faith only. The issue with the word ‘real’ is it literally means the activity is a cause of change.

This lead to thinking of the impact this has on the Carbon Farming Initiative as legislated when the Gold Standard and Carbon Fix require that projects be “real”, but no international standard could explain what they mean by using the terms”.

Then if you consider where ‘real’ is covered with a contrived definition and includes the concepts of completeness and accuracy in accounting, and leakage. It does so as no more than use ‘real’ as a synonym!

It would also appear that additionality is the next condition that might be the excuse that you cannot be real and CO2Land org looked a little harder (we don’t want this post to be no more than ‘hot air’) and found:

Specifically ISO 14064-2 (project accounting) does not include ‘Real’ because during development of ISO 14064-2 ‘Real’ was regarded as a programmatic rule/criteria, which is outside the scope of ISO 14064-2.

ISO 14064-2 is a standard rather than a program

ISO 14064-2 (Clause 5.4) specifies the following requirement in regards to additionality: “The project proponent shall select or establish, justify and apply criteria and procedures for demonstrating that the project results in GHG emissions reductions or removal enhancements that are additional to what would occur in the baseline scenario.”

Additionality is incorporated into ISO 14064-2 is based on the core principles of ISO standards in general, i.e. that ISO standards not be a barrier to trade (WTO-TBT – anyone following development of ISO 14067 (product) will know this is a major issue). As such, ISO standards must be policy-neutral (extended to include program-neutrality). This is of course very important for market confidence.

ISO 14064 deals with the concept of additionality by requiring that the GHG project has resulted in GHG emission reductions or removal enhancements in addition to what would have happened in the absence of that project. It does not use the term “additionality”…Thus the project proponent may apply additionality criteria and procedures, or define and use boundaries consistent with relevant legislation, policy, GHG programmes and good practice.”

Although the concept/requirement of additionality is within the requirements of ISO 14064-2, the simple reason why the ‘term’ additionality is not present within the requirements of ISO 14064-2 is because of certain sensitivities/perceptions/politics of certain parties involved in the development of the standard –

And, the following references helpful in gaining a more complete understanding:

ISO 14064-2 addresses ‘additionality’ with a general requirement and reference-out to the program rules (link = http://www.co2offsetresearch.org/policy/ISO14064.html#Additionality).

Also http://ghginstitute.org/2012/01/25/how-do-you-explain-additionality/

 

Not selling – no better place to charge your EV!

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The promise of electric cars is getting down to the power point. The promise of the dream technology solving our transport challenges is now best described as uneven! The problem might just be the socio-economic structure around us, and where the most car dependent households are distributed.

It seems at odds, that for instance, the City of Sydney is staunchly promoting a sustainable future, that the leading edge they wish to protect and serve with examples of what is the correct thing to do is also being meet with stern and robust opposition. If we put aside the concerns over the city’s trigeneration project and the claims and counterclaims. A very interesting story develops from an article published on http://www.drive.com.au under the heading “Not Selling”.

The story centres on the City of Sydney council having held a press event last week. The announcement being it had bought 10 Nissan Leaf electric cars, and it planned to buy 50 similar vehicles over the next few years. The story said “the event was supposed to be a shot in the arm for electric vehicles, which have barely registered a blip on the sales charts. But instead, it provided an insight into the failure of the Better Place electric vehicle-charging network”. Co2Land org is now very interested in the history of the Better Place network as Canberra and others also touted the wonderful concepts and the advantages of such a network.

What happened to the wonderful network at Sydney: Again, Drive.com published “In 2011, the City of Sydney put out a project to tender for 12 new electric car-charging stations – a perfect opportunity for Better Place to gain a foothold in Sydney. Better Place was considered, but ultimately the tender was won not by a multinational technology provider but a local electrician, who simply installed power points”.  It got down to there is no need for propriety displays and charge points – all based on subscription arrangements. What was needed according to the manager for strategy and assets at the council was 15-amp, 240-volt power points with a timer and flow meter. CO2Land org then though they already have them in most council owned caravan park around the country – interesting thought to think the old technology is suitable for the new, yet we were going to pay more without the need!

Council is also quoted as saying there is a lack of customers to even support installing the power points. The story continues to say after the first two power point stations were installed in September 2012: ”We haven’t had a customer yet,” but there have ”been a few drop-ins”.  Oh dear, or is it still too dear?

encouraged to submit an EOI – but!

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We have spoken with our contact, and we are encouraged to submit an EOI for the CRE Grants program. Given that everybody else is submitting EOI’s for Wind and Solar systems, we may be in with a good chance.  This is a response sent in after it was posted Closing 21 Feb – excluded, on February 13, 2013 by co2land

In fact three relevant responses came in and each had a story that you might be interested in:

Renewed Carbon – Have a BioHub design. They have a set of engineering firms in Newcastle ready to: Design the plant, Build the plant, Run the plant for 12 months, Take all the start-up risks, Sell the operating plant to the eventual owner.

All they need is about $12m !!!

They are working towards a pre-feasibility study to establish whether they are just dreaming (They believe such a study will a green-light the project). But the study will cost several hundred grand!

It is matter of hurdles (one at a time) and a simple process of: let’s get the money for the Pre-Feasibility Study and work from there.

Part of the reason for their enthusiasm is they are aware of working Pyrolysis plants in several places in Europe, as such they are confident the ‘Commercially Available’ constraint in the EOI closing 21 Feb 2013 should not be a problem.

With that said, I wonder if many are aware of the more sophisticated Veolia WASP project at Woodlawn, via Tarago in NSW. This project has been held up in NSW Planning approvals for some time now and as we have spoken to the engineers at the plant – it is a source of great frustration.

Then a more detailed retort from Peter and Kerry Davies of Real Power Systems (who have built their gasifier and Pyrolysis retort machine in Australia and demonstrated its commercial application in Australia) lament the issues they have had since showcasing the capabilities on the grounds of Parliament House in 2009). In this response they are responding not only the Closing 21 Feb story they are also referring to happenings in the prickly exchange between www.newmatilda.com  and City of Sydney Tri-generation project, and the general stonewalling they have encountered with their offering in the quest for a commercial outcome.  In direct quote:

“Thanks for the link, we just read through the three associated articles:

The attacks are coming from the green’s associates and heavily rely on BZE, a Melbourne University academics club who want Oz to go solar thermal immediately and trust that in doing so costs will fall and engineering problems overcome. This involves putting several thousand square km’s of solar arrays down in adjoining rural areas…

The core arguments against the renewable component of the plan centre on biogas, which is produced using anaerobic digestion and therefor predominately methane (85% CH4). We would consider these arguments to be largely valid although they don’t go far enough, the cost of efficient closed cycle anaerobic digesters is millions of $ per MWe of capacity and are prone to significant operational problems. In the EU it has been found engines running on biogas have difficulty meeting emission guidelines as some fuel is not burnt (escaped methane) and running excess oxygen to correct this then results in NoX emissions rather than CH4, there is a lot of work being done to overcome this limitation.

These arguments though are not valid at all for gasification whose output is “producer gas”  which has <1% methane and the fuel gas component is CO & H2, much cleaner in combustion and not subject to “methane leaks”. Gasification also is far more flexible in its feed stocks which can readily include waste paper with plastics contamination, and is easily topped up with solid fuels produced from plantations, crop residues or RDF pellets.

NoX  is easily managed in a properly engineered system running on producer gas since its formation is temperature and free oxygen dependent. Modern “lean burn” engine technologies combined with rapid exhaust cooling (via cogen) readily address the emission concerns. Direct combustion systems are more difficult, the critics seem to be confusing the two.

Trigen should be eminently suitable for Sydney so long as it genuinely includes absorption chiller technology for the building climate control required in warmer months. We don’t believe waste heat and inversion layers should necessarily be an issue so long as the trigen plant is not using fossil fuels or high methane biogas. Indeed with some lateral thinking and applied engineering the waste heat from higher rise buildings could be used through thermal siphoning to alleviate air pollution at street level.

We are aware of some very clever “Urban food production” systems that can produce very high outputs from small areas using aquaponics (fish and hydroponics). The rooftops of many high rise buildings would be eminently suited with proper planning to include these which then turns the total system into a “Quad generation”, utilising CO2 from the engine exhausts in the greenhouse above and providing local restaurants with fresh fish and vegetables grown in their own inner city building or precinct! Such innovations are we believe relevant now and can only become increasingly important for the future of sustainable cities.

Heightened ambient noise is an engineering/$ issue. A couple of years ago we responded to a request for tender for a cogen plant at a public swimming pool. The EPA imposed a noise limit of 32 decibels (it turned out there were dwellings within 20m of the installation site…). To put this in perspective such a noise limit can be exceeded by the act of sitting down in a country library and opening a hardcover book… We found a solution with pre-cast acoustic chambers from a Sydney supplier which added about $80,000 to project cost (yes you can also cast in situ). You could rev a Harley at full throttle inside one and not exceed the 32DB limit outside. To give you some idea of what this means in practice the fan running on the RPS system demonstrated at Bungendore for REDay generates 55DB.

Finally Origin/Cogent might consider the following: The RPS plant being commissioned at Sutton at the moment just took delivery of 80m3 of sawdust for further client trials. This plant when operational in the next week or so will consist of:

Gasifier – clean fuel gas and high temperature treated biochar output.

This char output can be used for water filtering and odor control amongst other external applications before going off to be added to compost for final recycling & CO2 sequestration.

Integrated pyrolysis retort – operates off a portion of the gasifier output so as to be more consistent, controllable and able to handle high/variable feed stock moisture contents, capable of sustained temperatures >650oC. Outputs biochar or torrefied biomass depending on temperature/residence time profile selected so effectively could replicate any typical biochar specification required or alternately pre-condition solid fuels for the gasifier.

Also can provide process heat for a range of purposes.

Electricity generator (20kWe) – Dual fuel diesel & producer gas from the gasifier . Typical diesel displacement when the gasifier is running would be 85% (reduction in normal diesel use). Later we will trial recycling a portion of this final exhaust back through the gasifier to re-crack some carbon dioxide (CO2+heat= 2CO) further reducing nett emissions.

We are also currently refurbishing a 50kWe straight gas industrial genset to add later in order to achieve 100% organic power.

Briquette press – for hot briquetting product directly out of the pyrolysis retort. (This is part of RPS’s R&D looking at subsequent material handling/transport/application strategies).

This briquette press is a proprietary design that we own the rights to and is able to be locally fabricated by any competent engineering shop so is not a high cost imported item.

So it is really a combination proof of concept/commercial plant that goes beyond just a functional bioenergy/char retort design and looks more at a whole of system farm scale factory with core components equally at home in the basement of a building in order to give flexible outputs that maximise benefits. This plant is readily brought up to the scale some companies have received offers of multi-million dollar public grants to build…but still haven’t been able to do so.

All of which has been done not only in the absence of government grants or sucking in market venture capital but also in spite of direct obstruction and commercial bastardry by vested interests. What might be described as “Success against Uncommon Odds”.

If the City of Sydney/Origin/Cogent trifecta are genuine they need to stop playing around the edges and get serious with some sort of supportive funding delivered through a credible pilot plant trial to publicly validate what we already know, instead of waiting for people like ourselves with real solutions to solve their problems for them entirely at our own expense.

Best Regards,
Peter & Kerry”

Then from George Paulos, where is writes of his IMPLETERRA new Plasma Gasification System:

“Thanks for connecting with me.

And as you have already pointed out: YES I love my work !

Hopefully we can be of fruitful service to one another.

I would like to move some things in Down Under with you.

For example: Our new Plasma can extract precious metals from ore.

This is currently being tested in our lab in the US.

Thus all these hazardous chemical for extraction get needless AND

of course the overall calculation for the mining company gets CHEAPER In this sense its a win-win for all parties involved: We and our environment and the company and the economy ! And also: These Plasma devices cannot be sold, only leased based on Power Purchase Agreements. Thus no investment necessary ! “

On reflection of what George has said, and repeated by Real Power Systems: The way grants programs are administrated may be what is wrong with the industry, in this it is meant: Why do you need $XXk grant to write a pre-feasibility study and then go to a prospectus costing $XXXXXXK in order to persuade $XXm from investors given that the askers apparently already know the outcome of a larger feasibility study, or learnt from past mistakes…. Would it not be more sensible to do as the UK Government do – have a department and a fund set –up that is open to all, rather than a select few. The caveat is if you can prove the need, that sufficient testing is done and you can show it could work, and the ability to be an entrepreneur – be a doer not just a talker. You will be asked how much do you need and so on. No nonsense approach that makes the bankable process much more streamlined.

CO2Land org thank each for their encouragement. Clearly these are also worthy of encouragement because they each solve real problems to what we have now, WHAT TO DO to turn waste to energy and take the pressure off virgin materials being required every time!

 

 

Closing 21 Feb – excluded

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Closing 21 Feb 2013, Community Renewable Energy Projects: Message  – Innovations excluded and technology chosen must be commercial. This is despite many innovators being able to prove an environmental benefit at least cost.  It is not a new issue it is a matter that is a symptom of measures providing a pathway regardless of the evidence. Albeit, justification for this approach can be found by some oblique reference to some far away story.

As the Lawrence Berkeley National Laboratory explains “One of the most serious (and valid) criticisms of subsidies for “renewable” energy is that they heighten the perception (but not the reality) that wind and solar are less expensive and more energy efficient than conventional fuels”.

If we single out the NSW Renewable Energy Precincts Program and the expression of interest for funding the wording says “EOIs will only be accepted for projects proposing to use renewable energy technologies that are commercially available and have been demonstrated in operation at a similar scale generation capacity for 12 months or more. Solar photovoltaic technology and wind are the two most common, and commercially available, renewable energy technologies. Most CRE projects internationally use one of these two technologies”. This is interesting as world wide, and in Australia, there are technologies that offer a better power capacity ratio. It is also interesting that in Australia at least one public entity has taken legal action to restrict (Suppression) the opportunity for a commercial opportunity with alternative renewable energy. When the reference is made to power capacity ratio it simply means – coal fired can be replaced by this technology as base load. It should also be said at a lower cost than wind and solar. AKA – cost benefit is superior.

It is difficult to understand why a ‘community’ program is directing a bias in this way towards wind & solar. CO2Land org feels this is a shame because more than a few communities would be able to scratch together sufficient green waste and other biomass resources to run a genuine base load or peak lopping plant, from what is waste with the added advantage of also having very useful co-products and creating more permanent local employment.

It follows that local government have obligations for services and various industry is within the boundaries they manage. Industry does two things: 1) They tend to consume more of the fuel resources available in the geographical area, and 2) Produce waste that is often toxic or hazardous in the environment.

In a growing trend around the world (being a reference was made in the NSW REP EOI), and since 1980, as far as CO2Land org can see, major industry is increasingly looking at methods for recovering the fuel value from many wastes.

CO2Land org can identify some of the different methods to do so and each is superior in their own way, and certainly make use of existing problems of waste and remove much of the need for virgin material in the products they offer. The point is made – not one product such as electricity generation of wind and solar, but also other products that make up the needs of society.

To give examples: Gasification, Pyrolysis, Plasma conversion are increasingly being piloted or in production in other parts of the world. Not surprising is that many of the leading work was from Australia, then ‘discovered’ by America, India, China and other countries determined to solve their resource and waste problems. If you were to argue it is cost that is the problem. As a single product produced wind and solar can argue they the high ground. “But consider this case of cement kilns converting waste: The ash in waste fuels becomes part of the cement product in a cement kiln, this system is one of the very few that actually consumes all of the waste material – both organic and inorganic turning all of the waste into product – no ash, no change in emissions and no impact on product quality”. Patent Number 8268073 System and method for making cement and cement derived therefrom

Inventors: Burton J. Kunik, James C. Berns, David G. Gossman

More recently, engineered fuels (Synfuels) are carrying on to advance the latest step in the process that started over 30 years ago. Some might even recall or have read that in World War 2 years the need to ‘invent’ devices to get the family car around as fuel was rationed. The new advances present the real potential for using a wider variety of waste materials, including treated medical wastes, to consume waste materials instead of coal and other natural resource based fuels in the manufacturing process.

Then there is products from the treatment of medical waste including sharps: Embodiments of this invention provide methods for converting a used healthcare material including a complex mixture of components including pulp materials, polymer materials, metal materials, and/or other material such as ceramic materials, ash materials, etc. directly into a burnable fuel, Without the need for component separation. Patent Number 8163045 Method and system of making a burnable fuel Inventors: Burton J. Kunik, James C. Berns, David G. Gossman

Still struggling in Australia is Real Power Systems. Peter and Kerry Davies have built a considerable amount of bench testing conducted (circa 2009 to now) and are successfully testing, including onsite pilots of their gasifier and pyrolysis retort and this success continues to lead to product identification not previously considered. They started being most interested in bio-char production for agricultural purposes, and the range of fuels that can produce and the range of waste they can treat under various water saturation condition is striking. And, they can produce syngas, synfuel, syncrude and have solved problems such as “Cavitation Phenomenon at the Reactor Chamber” that plaqued or was the reason for more expensive offering in the field.

If you can consider the cost savings when compared with traditional fuels it can be enormous. The environmental saving through the use of engineered fuels (syfuels) is a significant reduction of GHG emissions. So much so that engineered fuels, are getting overseas regulatory approvals and are meeting EPA definitions for “sufficiently processed”.

We are saying we should compare complimentary and alternative solutions to our energy problems, and being we should be very conscious of the traps involved in the development of technology, It can be very hard to stay focused when development is proving there is so much flexibility and opportunity in direction.

Possibly this is why the 21 Feb 2013 closing EOI has chosen to stay focused on wind and solar, but then something more needs to be done in keeping with the developments and as such building on advances to ensure uniform characteristics can be judged to gain a higher level of understanding and open whole new avenues for applications of otherwise problematic materials. What could be better than the local government waste dump having onsite production capability of syncrude made from waste tetra packs and plastics? it does make things oddly enough, a tad more difficult…but not impossible.

Think eco profit management

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Think eco profit management and it means reducing energy options to affordable solutions that improve the organizational bottom line, enhance brand image and accommodate operational expansion. It is showing clients how to implement energy and carbon management systems with confidence. A piece of cake – easy to understand.

Winton Evers the MD of www.EcoProfitManagement.com.au practices sustainability management . Formerly a Chartered Accountant, Winton came across the GHG Accounting Standard and realised how much organisations could improve their financial and environmental performance by managing their carbon emission sources. So why the frustration Winton, asks CO2Land org? The answers could be obvious, it is the obtuse that form opinions in our ‘smartphone’ world at the expense of ‘real’ experiences.

Then we read of another sustainability professional, Mary C. Alford, PE, in another part of the world saying the facts are “The largest companies have embraced sustainability – why? Because it has been shown to save hard dollars – and it has the side advantage of positive spin to customers and even employees (and many other advantages that we know, but let’s pick our battles). But when the corporation is ultimately answering to stockholders, the interest is only in one pillar of the triple bottom line: profit”

Mary continues to ask us to think of the following “What is the carbon footprint of inefficiency? What is the carbon footprint of a failed project? What is the carbon footprint of meaningless travel or pointless meetings? I believe that the selling of sustainability starts with the selling of ‘lean’ business practices. They go hand in hand. Sustainability needs to be rebranded away from granola and polar bears and recycling for corporate boardrooms and rebranded for profitability. (And just for the record – I like granola and polar bears and I recycle everyday – but when I bought a Prius, I only pointed out, to my corporate clients that asked, how much money I saved).

Co2Land org has also noted the increasing use of the connotation of sustainable and the inferences of deniers of change that one that practices sustainable is part of the ‘green’ or ‘granola’ sect. It is possible but, increasingly as Winton and Mary are saying it is about the need to balance the economy, for profit of longer than the short term and CO2Land org advocates if we evaluate and cost benefit is part of the equation it would seem mother nature is fighting back and cost of doing nothing has no benefit. We are clearly saying Climate Change is real, and it does not matter if it is man made or other cause, we have the technology, but do we have the will to innovate?

On a lighter note Urban Dictionary enlightened us with the following definition and antidotes:

Definition 1 granola

Thumbs 475 up, 233 down

 

 

  
  A person who dresses like a hippy, eats natural foods (granola), and is usually a Liberal, but in all other ways is a typical middle class white person, and is likely to revert back to being straight when they finish college.

Did you see that granola chick at the farmer’s market buying bean sprouts?

Yeah, her new Volvo was parked next to me.
Definition 2 granola

Thumbs 278 up, 126 down

 

 

  
  A tree hugging, free spirited hippie minus all the drugs.

Melissa is a granola.
Definition 3 granola

Thumbs 753 up, 189 down

 

 

  
  An adjective used to describe people who are environmentally aware (flower child, tree-hugger), open-minded, left-winged, socially aware and active, queer or queer-positive, anti-oppressive/discriminatory (racial, sexual, gender, class, age, etc.) with an organic and natural emphasis on living, who will usually refrain from consuming or using anything containing animals and animal by-products (for health and/or environmental reasons), as well as limit consumption of what he or she does consume, as granola people are usually concerned about wasting resources. Usually buy only fair-trade goods and refrain from buying from large corporations, as most exploit the environment as well as their workers, which goes against granola core values. The choice of not removing body hair (see amazon) and drug use are not characteristics that define granola people, and people, regardless of granola status, may or may not partake in said activities. This definition is sometimes confused with hippy.

Jack: My best friend is vegan and only buys produce that is organically grown from local farmers. Her and her feminist, vegan boyfriend are both in Greenpeace and advocate for queer rights. She waxes her legs but she’s still granola.

Jill: So that means she’s not a dyke? And she grows her own reefer?

Jack: Just because she’s granola, doesn’t mean she does drugs. Also, granola status has nothing to do with sexual preference.

Jill: Well maybe she’ll know where to buy hemp and how to tie-dye?

Jack: She’s granola, not a hippy. Some granola people are hippy and vice-versa, but they’re not the same thing.

 

Maybe the real medicine is: if we have a bit of a laugh and settle down we can work an understanding – a sustainable one!

the notion of “water flow uphill”

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“They thought there was a communication problem, and that what he was saying (‘Getting the water to flow uphill for the plants’) should not be taken as a literal translation. Interesting that many of us armed with conventional wisdom, with sleeves rolled up and espousing there is only one view of the world. That is a world with a benign bias that is a result of their own ignorance, a bias shared by the establishment where they are happy to “Recognise traditional owners” but completely ignore 40,000 years of stable landscape management as being not scientifically based (due to their own biased view of what constitutes science).

Co2Land is not the author of what is written in the opening paragraph. However, on reflection it is very possible we are ignorant if not wrong for what we believe to be truth.  Truth, like real, prior, could be a synonym or even a proprietary product and still be wrong. We could be ignoring one of Einstein’s greatest tenants (the universe depends on the perspective of the observer).

Looking at the concept of a net movement of water away from drainage lines is possible when you research even at a basic level, like Wikipedia, or as follows as published by http://science.jrank.org/pages/1182/Capillary-Action.html#ixzz2JIvrD9qD:

“The force with which water is held by capillary action varies with the quantity of water being held. Water entering a natural void, such as a pore within the soil, forms a film on the surface of the material surrounding the pore. The adhesion of the water molecules nearest the solid material is greatest. As water is added to the pore, the thickness of the film increases, the capillary force is reduced in magnitude, and water molecules on the outer portion of the film may begin to flow under the influence of gravity. As more water enters the pore the capillary force is reduced to zero when the pore is saturated. The movement of groundwater through the soil zone is controlled, in part, by capillary action. The transport of fluids within plants is also an example of capillary action. As the plant releases water from its leaves, water is drawn upward from the roots to replace it”(Read more: Capillary Action – Liquid, Water, Force, and Surface – JRank Articles ).

This illustrates that science supports what the indigenous know in that water can back out across the slopes due to capillary action and in this way encouraging growth and interconnection of the soil “fungal mat”, and from the perspective of the observer in the drainage line moving the water ‘uphill’.  With a closed mind we might say ‘not possible’ – yet the Romans BC did it with viaducts and manipulating volume pressures to do so.  Should we have an open mind for these things? The answer appears to be it is beyond a cost benefit it is just a big yes.

If we relate this to the methodology process of the Carbon Farming Initiative (CFI) a strong case can be made for inclusion, greater than savanna burning. As told to us we could see success and it opens up millions of hectares of bush to better management part funded by carbon credits generated.  The advocates of this method gave CO2Land org an example of what could happen in an area of 1000ha. Said was: “If patches are prescriptive burnt on a ten year rotation then this would yield 120 tonnes of soil carbon sequestered a year, and if we assume 360 Australian Carbon Credit Units (CFI credits) @23 dollars per tonne. An income boost of +$8000 a year is possible”. If accepted is it noted all of this is possible from this activity without wholesale alteration to the natural balance.

CO2Land org has previously postulated that $7,000 per annum is needed as an enticement for participation in complex methods so this possibility would be enough to offset the liabilities of land ownership (rates, weeds control, land use etc), and give additional benefits that include productivity improvements and/or other opportunities generated.

If you wish to be critical we accept that the bio char method is acceptable under National Resource Management program (NRM). However, out point is in order to incentivize a market for the concept the CFI and ACCU’s are a better way to go and could open up a multi product concept with the potential for the way forward for the sustainable environment and hopefully those faithful to carbon will no longer be in a blue state and that will be because they no longer will be only living in hope and will be able to participate in a reality. We will get a result.