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Welcome to another fortnightly review of energy and environmental events and developments from both here in New Zealand and around the world. As always, we hope you will find our collection of articles to be of interest in what continues to be a rapidly changing world. It has often been said that when the United States sneezes, the rest of the world catches a cold. In New Zealand it is often pneumonia, so we thought it was about time we took the US to the doctor. We open with a researcher from the University of California at Berkeley claiming that the State of California has saved $56bn over 35 years and that the average Californian now uses 40% less electricity than the average American. We were especially pleased by his comment that “energy efficiency is very good for real incomes, purchasing power and job creation”. Does that mean my purchasing power is better when it comes to Californian wine? We wish! And it’s just as well that California isn’t using more electricity, as a new study released this week by the not-for-profit NexGen Energy Council claims that the US faces serious risks of brownouts and blackouts in 2009. A shortage of new generation capacity, coupled with high summer demand, could cost billions of dollars and put lives at risk. It seems Americans suffer from the same issues we in NZ do, as environmental groups are now blocking new base load generation in coal and nuclear plants, limiting new investment in the grid and generally making life difficult for the utilities. Times-are-a-changin’, but perhaps what has spurred Lester Brown, President of the Earth Policy Institute, to claim in a recent release that the old energy economy – fuelled by oil, coal and natural gas – is being replaced by one powered by wind, solar and geothermal energy. Furthermore, this transition is moving at a pace and on a scale that could not have been contemplated just a year ago. For example, Texas has 6000 megawatts of wind-generating capacity online and a further 39,000 MW in the construction and planning stages (that’s a lot – Huntly, NZ’s biggest station is 1000MW). Not only is wind expanding, so is solar and geothermal – 96 geothermal plants are presently under construction. And then there is the good old-fashioned way to reduce demand – legislate. In Pennsylvania, the State has passed legislation requiring utilities to cut annual electricity usage by at least 1% by 2011. To ensure the utilities take it seriously, the new law allows for up to $20million in penalties if the target is not achieved. Sometimes relying on voluntary measures simply isn’t enough – one wonders what the outcome might be if a similar approach was adopted in NZ. Moving away from the US, we carry an article about the United Nations’ specialized agency – the International Maritime Organisation – which has passed regulations to reduce harmful air emissions from large ocean-going ships. When fully implemented in 2020, the new standards will help reduce harmful emissions by 80% or more. Back in NZ, we review the business opportunities for new GreenTech companies such as e-Bench (yes, we are looking for investors so we can take the software offshore). A study by Andy Kenworthy and Vincent Heeringa in association with the NZBCSD highlighted recent positive investment in a range of NZ companies such as Crest Energy, Aquaflow Bionomic Corporation, Lanzatech, Scion and BioPacific Ventures. Making money and doing the right thing at the same time is surely the opposite of the perfect storm, readers who have just struck the Lotto Powerball First Division can feel free to call us … ! On a more global level, we focus on the impact the financial turmoil might be having on the world food crisis, how criminal gangs are plundering the planet for a quick profit and, at last, the UN stating what most of us already knew – that bio-fuel subsidies only raise the food bill and cause more hunger. Alarmingly, the regular but essential honey bee continues to suffer a catastrophic drop in numbers in the UK, thought to be due to the Varoa Mite, viruses, pesticides, a shortage of nectar caused by changes in farming practices and possibly even stress (they do work hard and their hourly rate is low). Seriously though, the potential impact of this is scarily huge, as pretty much all agriculture relies on honey bees for pollination (and we, in turn, rely on agriculture). Finally, we carry a witty article in praise of economic pain and how lifestyles in the US have been transformed overnight. The SUV now sits alone on the US car lots, the migration from the cities to suburbia is ebbing towards reversal and the desirability of having a smaller but more economic home is on the rise. Overall, the article notes that the self-propelled salvation won’t be for the love of country, but rather for the love of coin. Money speaks. |
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Report: California saves money by saving energy
By TERENCE CHEA, Associated Press Writer
Monday, October 20, 2008 |
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(10-20) 02:31 PDT San Francisco (AP) -- California has saved about $56 billion in electricity costs and created 1.5 million jobs over 35 years by using energy more efficiently than other states, according to a new study. The report released Monday by an economist at the University of California at Berkeley found that state policies that boost energy efficiency aren't just good for the environment, they're also good for the economy. "Energy efficiency is very good for real incomes, purchasing power and job creation," said the study's author, UC Berkeley economics professor David Roland-Holst. "Energy efficiency has really helped us stimulate the economy." Roland-Holst analyzed the economic impacts of government policies enacted since the early 1970s that have made California the country's most energy-efficient state. California was among the first states to create energy-efficiency standards for new homes, buildings and household appliances such as refrigerators and washing machines. The average Californian now uses about 40 percent less electricity than the average American. That means the $56 billion that Californians would have spent on electricity between 1972 and 2006 could be spent on goods and services that create more jobs than energy, most of which is imported from other states and countries, according to the study. The report, entitled "Energy Efficiency, Innovation, and Job Creation in California," also analyzed the economic impacts of a recently proposed plan to reduce California's greenhouse gas emissions over the next 12 years to achieve aggressive targets set by the California Global Warming Solutions Act. The UC Berkeley study estimated the state's plan to reduce the greenhouse gases, which include measures to cap emissions and increase energy efficiency standards, could create 400,000 new jobs and increase household incomes by up to $48 billion annually by 2020. "If the country can follow California's example, it will have a dramatic effect on our future emissions and energy independence," Roland-Holst said. |
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The U.S. Faces Serious Risks Of Brownouts Or Blackouts In 2009, Study Warns
October 10, 2008
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Enviro Group Lawsuits, Cost Concerns, Climate Regulation Uncertainty Cited As Major Obstacles To Grid Improvements
Denver, CO - A new study released this week highlights what experts have been saying for years: the U.S. faces significant risk of power brownouts and blackouts as early as next summer that may cost tens of billions of dollars and threaten lives. The study, "Lights Out In 2009?" warns that the U.S. "faces potentially crippling electricity brownouts and blackouts beginning in the summer of 2009, which may cost tens of billions of dollars and threaten lives." "If particularly vulnerable regions, like the Western U.S., experience unusually hot temperatures for prolonged periods of time in 2009, the potential for local brownouts or blackouts is high, with significant risk that local disruptions could cascade into regional outages that could cost the economy tens of billions of dollars," the report warned. U.S. baseload generation capacity reserve margins "have declined precipitously to 17 percent in 2007, from 30-40 percent in the early 1990s," according to the study. A 12-15 percent capacity reserve margin is the minimum required to ensure reliability and stability of the nation's electricity system. Compounding this capacity deficiency, the projected U.S. demand in the next ten years is forecast to grow by 18 percent, far exceeding the projected eight percent growth in baseload generation capacity between now and 2016. The study, which can be downloaded here, estimated that the U.S. will require about 120 gigawatts (GW) of new generation just to maintain a 15 percent reserve margin. That will require at least $300 billion in generation and transmission facility investments by 2016. "The facts presented in this study should stimulate a call for action by policymakers everywhere. Our nation's electricity system is clearly in trouble and we need to take rapid steps as soon as possible to remedy the situation," said Bob Hanfling, Chairman of the non-profit NextGen Energy Council, which conducted the study. "This isn't the first study to come to these conclusions, and it won't be the last. We hope it illuminates current policy debates, from those on climate change to resource development to infrastructure build-out to national security. We also hope it will sound the alarm for every elected official, policymaker, business leader and citizen concerned about the future prosperity and security of our nation." The study also identified the primary barriers to getting new power plants and transmission lines built. Chief among these is the "opposition of well-funded environmental groups that oppose and file lawsuits against virtually every new infrastructure project proposed." Other obstacles include opposition to natural gas production, which is needed to fuel the growing reliance on natural-gas fired power plants; challenges associated with putting more intermittent renewable power sources on the grid; regulatory uncertainty associated with climate change policy development; reluctance by state regulators to approve rate increases related to the imposition of new environmental or climate-related regulation; and the relatively shorter-term approach to resource planning and acquisition that industry has been forced to adopt because of all of the above factors. Among its other findings were these:
The study also presented a survey of political developments and trends that amount to "structural political barriers being erected to system reliability." It pointed to the fact that "environmental activist groups" are now:
SOURCE: NextGen Energy Council |
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New Energy Economy Emerging in the United States
October 15, 2008 - 9
Copyright © 2008 Earth Policy Institute Lester R. Brown |
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As fossil fuel prices rise, as oil insecurity deepens, and as concerns about climate change cast a shadow over the future of coal, a new energy economy is emerging in the United States. The old energy economy, fueled by oil, coal, and natural gas, is being replaced by one powered by wind, solar, and geothermal energy. The transition is moving at a pace and on a scale that we could not have imagined even a year ago.
Consider Texas. Long the leading oil-producing state, it is now also the leading generator of electricity from wind, having overtaken California two years ago. Texas now has nearly 6,000 megawatts of wind-generating capacity online and a staggering 39,000 megawatts in the construction and planning stages. When all this is completed, Texas will have 45,000 megawatts of wind-generating capacity (think 45 coal-fired power plants). This will more than satisfy the residential needs of the state’s 24 million people, enabling Texas to feed electricity to nearby states such as Louisiana and Mississippi. After Texas and California, the other leaders among the 30 states with commercial-scale wind farms are Iowa, Minnesota, Washington, and Colorado. And other states are emerging as wind superpowers. Clipper Windpower and BP are teaming up to build the 5,050-megawatt Titan wind farm, the world’s largest, in eastern South Dakota. Already under development, Titan will generate five times as much electricity as the state’s 780,000 residents currently use. This project includes building a transmission line along an abandoned rail line across Iowa, feeding electricity into Illinois and the country’s industrial heartland. Colorado billionaire Philip Anschutz is developing a 2,000-megawatt wind farm in south central Wyoming. He already has secured the rights to build a 900-mile high-voltage transmission line to California. With this investment, the door will be opened to developing scores of huge wind farms in Wyoming, a wind-rich state with few people. Another transmission line under development will run north-south, linking eastern Wyoming’s wind resources with the fast-growing Colorado cities of Fort Collins, Denver, and Colorado Springs. Wind-rich Kansas and Oklahoma are looking to build a transmission line to the U.S. Southeast to export their wealth of cheap wind energy. California is developing a 4,500-megawatt wind farm complex in the Tehachapi Mountains northwest of Los Angeles. In the east, Maine—a wind energy newcomer—is planning to develop 3,000 megawatts of wind-generating capacity, far more than the state’s 1.3 million residents need. Further south, Delaware is planning an offshore wind farm of up to 600 megawatts, which could satisfy half of the state’s residential electricity needs. New York State, which has 700 megawatts of wind-generating capacity, plans to add another 8,000 megawatts, with most of the power being generated by winds coming off Lake Erie and Lake Ontario. And soon Oregon will nearly double its wind generating capacity with a 900-megawatt wind farm in the wind-rich Columbia River Gorge. Wind appears destined to become the centerpiece of the new U.S. energy economy, eventually supplying several hundred thousand megawatts of electricity. Solar power is also expanding at a breakneck pace. The nation’s wealth of solar energy is being harnessed by using both photovoltaic cells and solar thermal power plants to convert sunlight into electricity. For solar cell installations, California, with its Million Solar Roofs plan, is far and away the leader. New Jersey is also moving fast, followed by Nevada. The largest U.S. solar cell installation today is a 14-megawatt array at Nellis Air Force Base in Nevada, but photovoltaic electricity at the commercial level is about to go big time. PG&E has entered into two solar cell power contracts with a combined capacity of 800 megawatts. Together, these plants will cover 12 square miles of desert with solar cells and will have a peak output comparable to that of a large coal-fired power plant. Solar power plants are appealing in hot climates because their highest output coincides with the peak demand for air conditioning. Solar thermal plants that use mirrors to concentrate sunlight on a vessel containing a fluid—heating it to 750 degrees Fahrenheit to generate steam and produce power—have suddenly become an enormously attractive technology. The United States has the world’s only large solar thermal complex, a 350-megawatt project completed in 1991. But as of September 2008 there are 10 large solar thermal power plants under construction or in development in the United States, ranging in size from 180 megawatts to 550 megawatts. Eight of the plants will be built in California, one in Arizona, and one in Florida. Within the next three years, the United States will likely go from 420 megawatts of solar thermal generating capacity to close to 3,500 megawatts—an eightfold jump. Along with wind and solar, geothermal energy is also developing at an explosive rate. As of 2008 the United States has nearly 3,000 megawatts of geothermal generating capacity, 2,500 of which are in California. Suddenly this too is changing. Some 96 geothermal power plants now under development in twelve western states are expected to double U.S. geothermal generating capacity. With California, Nevada, Oregon, Idaho, and Utah leading the way, the stage is set for the massive future development of geothermal energy. The new energy economy will be powered largely by electricity from renewable sources. Electricity will light, heat, and cool buildings. As we shift to plug-in hybrid cars, light rail transit systems in cities, and high-speed electric intercity rail systems like those in Japan and Europe, our transport system will also be powered largely by electricity. It is historically rare for so many interests to converge at one time and in one place as those now supporting the development of renewable energy resources in the United States. To begin with, shifting to renewables increases energy security simply because no one can cut off the supply of wind, solar, or geothermal energy. It also avoids the price volatility that has plagued oil and natural gas in recent decades. Once a wind farm or a solar thermal power plant is built, the price is stable since there is no fuel cost. Turning to renewables will also dramatically cut carbon emissions, moving us toward climate stability and thus avoiding the most dangerous effects of climate change. The shift also will staunch the outflow of dollars for oil, keeping that capital at home to invest in the new energy economy, developing national renewable energy resources and creating jobs here. At a time of economic turmoil and rising joblessness, these new industries can generate thousands of new jobs each week. Not only are the wind, solar, and geothermal industries hiring new workers, they are also generating jobs in construction and in basic supply industries such as steel, aluminum, and silicon manufacturing. To build and operate the new energy economy will require huge numbers of electricians, plumbers, and roofers. It will also employ countless numbers of high-tech professionals such as wind meteorologists, geothermal geologists, and solar engineers. To ensure that this shift to renewables continues at a rapid rate, national leadership is needed in one key area—building a strong national grid. Although private investors are investing in long-distance high-voltage transmission lines, these need to be incorporated into a carefully planned national grid, the electrical equivalent of President Eisenhower’s interstate highway system, in order to unleash the full potential of renewable energy wealth. And, finally, this energy transition is being driven by an intense excitement from the realization that people are now tapping energy sources that can last as long as the earth itself. Oil wells go dry and coal seams run out, but for the first time since the industrial revolution we are investing in energy sources that can last forever. This new energy economy can be our legacy to the next generation. |
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Pennsylvania law tries to cut electricity usage
MARC LEVY
Associated Press Writer |
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HARRISBURG, Pa. — Pennsylvania has begun a major effort to cut electricity use, requiring the state's 11 utilities to not only stop power usage from rising, but to cut it starting in 2011. Legislation that Gov. Ed Rendell signed Wednesday requires the utilities to cut annual electricity usage by at least 1 percent by May 31, 2011, based on usage estimates made by state regulators, who can take into account a major anomaly, such as an unusually hot summer or a substantial surge in demand from a new user, such as a factory. To ensure that utilities take the task seriously, the new law allows up to $20 million in penalties for failure to meet the benchmarks for electricity usage cuts. "That certainly should get the companies to look at what's been going on around the country and adopt some of the more successful programs," said Sonny Popowsky, the state's utility consumer advocate and a supporter of the new law. Utilities will have to find ways to get people and businesses to use less electricity on the hottest summer days, when electricity is the most expensive. That could include enrolling the owners of homes and office buildings in a program to temporarily switch off hot water heaters or air conditioners. To cut electricity usage at all other times, utilities will have to get more fluorescent lamps into light sockets to replace less efficient incandescent bulbs. They will have to figure out how to entice people to insulate their homes to save electric heat and replace old, energy-sucking refrigerators and other appliances with newer, more efficient models. Electricity usage in the Pennsylvania and the United States grows at a rate of about 1 percent to 2 percent annually. By May 31, 2013, utilities have to cut usage by at least 3 percent, as well as slash 4.5 percent from electricity usage during the 100 highest-use hours of the year. Utilities said they are still in the early stages of developing proposals for how they will approach the mandate and did not want to speak about their specific plans. They acknowledge that the law will force them to adopt new usage-reduction tactics beyond a raft of education programs they have, including Web sites that dissect each residential customer's electric usage and how to reduce it. "It's a big number. It's going to take some changes in terms of what we do and what we've done in the past, but it's not an insurmountable number," said Scott Surgeoner, a spokesman for FirstEnergy Corp., the Ohio-based power company that owns Pennsylvania Electric Co., Pennsylvania Power Co. and Metropolitan Edison Co. By July 1, each utility must file a plan with the Pennsylvania Public Utility Commission to achieve the cuts. The commission must hold a public hearing on each plan and has about four months to approve or reject them. The electricity conservation efforts will be expensive, and utilities can bill rate payers for that cost, up to 2 percent of their revenue from 2006. Utilities must be able to show that savings from the plans will pay their own cost — at least — within 15 years. |
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Clean billions
By Andy Kenworthy and Vincent Heeringa in association with NZBCSD // August 18, 2008
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The shift to a low-emission, low-carbon world is introducing high-value business opportunities There’s something awfully sexy about the idea of jet fuel derived from Blenheim sewerage. Or a city powered by a generator submerged in the Kaipara Harbour. Or extracting plastic from the prunnings of a Rotorua pine forest. Clean technology is very sexy. But is it a reality? Well, yes—all the above are real projects by real New Zealand companies, reflecting a worldwide explosion in clean tech investment. “Just as thousands were drawn to California and the Klondike in the late 1800s, the green energy gold rush is attracting legions of modern day prospectors in all parts of the globe,” says Achim Steiner of the United Nations Environment Programme. New investment in clean energy surpassed US$148 billion in 2007
All parts of the globe that is, except New Zealand, where investment in clean tech is comparatively pathetic compared to the sums sucked into property, farming or traditional infrastructure. Indeed, it’s a measure of how insignificant that is that no one, neither government nor private enterprise, has bothered to count it. Several initiatives signal a change. Last year, Pure Power, a fast growing, Asia–Pacific clean energy company, made two strategic investments in New Zealand. It took a 19.9 percent stake for $3 million in Aquaflow Bionic Corporation, the Blenheim-based biofuel company. It also paid $6 million for 100 percent of BioJoule, the wood-waste project headed by Genesis R&D’s Jim Watson (see ‘Big Jim’ in this issue for a detailed profile). Pure Power’s plays are the first real investments in New Zealand by an overseas clean tech specialist. David Milroy, the founder of Pure Power, says there’s every reason to expect New Zealand to produce world class clean tech companies—and attract foreign investment. For one thing, the demand for alternative energy technology is growing faster than it can be supplied. “The demand for energy is rising like a ramp … every potential idea needs to be explored.” He also was impressed with the engineering and ingenuity downunder. Jim Watson and the BioJoule team now form a core part of his research arm. Locally, no such specialist investment firms exist, but an encouraging move was by Cranleigh Merchant Bank, which launched the first dedicated clean tech fund, CE3, hoping to raise $250 million across New Zealand and Australia. For example, nitrogen inhibitors have already been proven to lift productivity and reduce fertiliser needs. Only five percent of farmers currently use the technology because it’s expensive. An ETS would allow farmers to enjoy three new sources of income: increased productivity, banking carbon credits and avoiding carbon costs that are inevitable under a Kyoto regime. The report estimates the upside on such inhibitors could increase dairy farm incomes by $714 million a year and provide 1,728 new direct jobs with an annual wage value of $98.5 million. This will also cut dairy farmers’ emissions liability by $98 million a year. The NZBCSD report claims that $12.3 billion new investment and revenues and 9,600 jobs will result from the ETS
A failure to implement the ETS could jeopardise the benefits. For example, “it could cost the primary industry up to 7,600 direct jobs: If the reputation and carbon-intensity competitiveness loss results in overseas consumer boycotts, a loss of five percent of primary industry sales would cost 7,600 direct jobs, and $433 million a year, and probably a similar number in indirect jobs. A one percent reputation and market share loss will cost 1,520 direct jobs and $250 million a year.” In summary, the council warns: “A failure to pass the bill—which could delay an ETS until 2012—will continue stalling billions of dollars of investment decisions till ETS detail is settled. This will deny the country new jobs and export income. Having a price on carbon has also been factored into billions of dollars worth of investment in wind, geothermal power, and other new forms of ocean, wood-waste-based and biofuel power generation.” The report is a landmark for one simple reason: until now, only the government has attempted to calculate the risks and return of a Kyoto-aligned economy. Now it seems the private sector is taking action. The council’s chief executive, Peter Neilsen, says the report is timely especially as the costs of implementing an ETS gets harder as time goes on. “It’s like slowing a car down from 100 kilometres per hour. Better if you can brake slowly, rather than leave it to the last second. We know we have to reduce our emissions. Better that we get started now,” he says. These are just three bellwethers of the change. To get a sense of where the investment in clean tech is heading, here’s a snapshot from around the country. This list is by no means exhaustive. Nor is it supposed to be investment advice. But it gives you a flavour of what clean tech can offer savvy investors who want to not just save the world—but make a buck in the process. Greening the GreensPastoral Greenhouse Gas Research ConsortiumAgriculture may once have been our economic powerhouse (it generates only about five percent of our GDP) but it is responsible for nearly half of the nation’s greenhouse gas emissions. That provides us a unique opportunity: solve the agricultural emissions problems here and we can export our knowledge to the world. The PGGRC research programme aims to provide livestock farmers with scientifically tested techniques to cut emissions by 20 percent by 2012. The consortium is made up of the major players in the relevant industries, plus research and promotion organisations. It operates under a Memorandum of Understanding with the Crown. The government picks up half the tab, which has totalled $19 million since 2002 and is now running at about $5 million a year. Manager Mark Aspin says while it is still mostly seen as a problem-solving operation, it’s also an investment to increase productivity. “If we crack it here with New Zealand grazing systems, there are other countries—like in South America—using a lot of grazing, where it could have applications.”
Money PlusCranleigh Merchant BankNew Zealand is woefully short on clean tech investors. Enter Cranleigh Merchant Bank. Its new subsidiary CE3 aims to provide Australasian clean tech businesses with much needed capital, skills and leadership. With a proposed maximum value of $250 million, the fund brings together an experienced management team including former managing director of Waste Management New Zealand, Kim Ellis, and former Neuronz chief David Clarke. Their expertise will assist the many promising startups with the governance and networks that money can’t buy. “Any good company can get money. What we are talking about isn’t venture capital, it’s active management for existing businesses—licensing technologies internationally and deploying them internationally,” says Cranleigh director Andrew Bayly.
Catching the WaveCrest EnergyCrest has applied for resource consent to conduct a 35-year marine turbine power generation project in the Kaipara Harbour in Northland. The plan is to build up to 200 completely submerged marine tidal turbines located near the entrance to the harbour with a maximum generating capacity of around 200 megawatts. The company estimates this will generate power for up to 250,000 homes and could contribute three percent of New Zealand’s power supply. If it gets the green light this year, the firm will need to raise about $600 million over the next ten years. But with electricity prices the way they are, and Crest’s generators turning as early as 2010, they could be on to a winner. Director Nick Eady says: “There is significant interest in marine energy generation particularly throughout Europe, Canada and South East Asia.”
Rude OilAquaflow Bionomic Corporation
ABC is keeping the process—in which they have so far invested about $6 million—a secret. But up to half of an alga’s body weight is comprised of oil. In theory this could be harvested and converted into biodiesel. Their carbohydrate content can also be fermented into ethanol. Both are much cleaner than petroleum-based fuels. ABC first demonstrated the fuel in 2006 and already has interest from Boeing, which is currently searching for alternative aircraft fuels. Last year ABC sold a 19.9 percent stake for $3 million to Singapore-based Pure Power. “One of the biggest challenges is understanding just how big this may be,” reckons investor Nick Gerritsen.
Chimney sweetLanzatechCombine the irrefutable talents of Sun Microsystems founder Vinod Khosla with Dr Sean Simpson, a former Leader of the biofuels initiative at New Zealand’s own AgriGenesis BioSciences Ltd, and you have a potentially explosive idea. Lanzatech’s plan is to generate ethanol fuel from the gases from factory chimneys or decomposing organic waste. Their approach uses bacterium to produce ethanol from carbon monoxide in a process similar to the way yeast turns sugar into alcohol. It could remove the controversial competition between food production and potential biofuel plantations. Lanzatech’s work attracted the first major contract awarded under the Foundation for Research, Science and Technology’s Low Carbon Energy Technologies fund, receiving $12 million. “When you are talking about fuel production technology, you are talking about an industry worth $3 trillion. It doesn’t come any bigger than that,” says Simpson.
The patriotK1W1Stephen Tindall is no stranger to this space. He co-founded the New Zealand Business Council for Sustainable Development and is chair of both the Climate Change Leadership Forum and Growth and Innovation Advisory Board. And through K1W1, sister company Norwood Investments and other routes he has invested more than $100 million in startup and early-stage businesses, including those working in biotech and environmental technology. Investments include Lanzatech (biofuels), Wellington Drive Technologies Ltd (energy efficient electric motors), Anzode Inc (battery technologies), Optisolar Inc (solar power), Vertical Composting Ltd (industrial scale organic waste recycling) and Celsias Ltd (online climate change projects). K1W1 manager Brian Mayo-Smith says sustainability is a logical area of investment. “Consumers have become much more aware and enquiring of the sustainability of products and services. Any business whose economic welfare is dependent on consumers ignores such issues at their peril.
Wood PowerScion“Purpose-grown energy forests could meet all of New Zealand’s future transport fuel and heat energy needs, without threatening the country’s important agricultural industry,” says Scion spokesperson Deborah Gray. That might sound ambitious but Scion, the former Crown’s New Zealand Forest Research Institute has, together with top players in the forestry and energy industry, invested $1 million into the first stage of a feasibility study on the conversion of wood waste to bioethanol. A further $1.4 million is being spent on research into the potential wider role of forestry in biofuel production. A recently-won Foundation for Research Science and Technology grant of $7 million will help keep the work going. The studies fit into the Biomaterial Futures Strategy launched in 2003 which has resulted in the development of new materials like environmentally friendly bio-plastics.
Bio ProspectBioPacific VenturesVenture capitalists Direct Capital and Inventages have come together with New Zealand’s largest Crown Research Institute AgResearch to pump millions into the emerging biotech market. BioPacific Ventures’s portfolio includes 100-percent natural digestive aids, research into the effects of sugar cane on food absorption, plant-based ‘bio-polymers’ with a range of applications in food, pharmaceuticals and agriculture as well as a process for extracting keratin from wool for use in hair and nail care products.
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Financial Turmoil Could Aggravate Global Food Crisis
ROME, Italy, October 15, 2008 (ENS)
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Dr. Jacques Diouf worries that the global financial crisis will cause wealthy governments to reduce food and agriculture aid to developing countries and introduce protectionist measures to keep out their agricultural products.
"The global financial crisis should not make us forget the food crisis," Diouf said Tuesday. "Borrowing, bank lending, official development aid, foreign direct investment and workers' remittances - all may be compromised by a deepening financial crisis."
The meeting marks World Food Day, held every year on October 16, the day the Food and Agriculture Organization was founded in 1945 as the first UN agency created to address global hunger. "The great uncertainty now enveloping international markets and the threat of global recession may tempt countries towards protectionism and towards reassessing their commitments to international development aid," Diouf warned. Diouf, who heads the FAO, said the organization's latest report on crop prospects and the global food situation shows grain harvests are projected to increase 4.9 percent to a record 2,232 million metric tonnes. But still, 36 countries are still in need of external assistance as a result of crop failures, conflict or insecurity, or continuing local high prices Diouf noted that the financial crisis, following the crisis over soaring food prices that threw an additional 75 million people into hunger and poverty in 2007, may deepen the plight of the poor in developing countries. "Last year it was the pan," Diouf said. "Next year could be the fire." Commodity prices are currently dropping on the expectation of good grain harvests but also because of a slowing world economy. But this could mean a cutback in plantings followed by reduced harvests in major exporting countries, Diouf warns. Given continuing low grains stocks, record food prices could return next year - a catastrophe for millions who by then would be left with little money and no credit.
In June, governments and world leaders agreed at an FAO High-Level Conference on World Food Security that "the international community needs to take urgent and coordinated action to combat the negative impacts of soaring food prices on the world's most vulnerable countries and populations." The Group of Eight Summit in Japan a month later confirmed the resolve of world leaders to address global food security as a top priority and demonstrated a growing political will to reverse the trend toward global hunger. "It is vital that this momentum be maintained," Diouf said. "Unless political will and donor pledges are turned into real and immediate action, millions more may fall into deeper poverty and chronic hunger." The number of malnourished people around the world is set to increase by 44 million to almost one billion by the end of 2008 due to the combined impact of the food and fuel price crises, according to a World Bank report presented last weekend at the annual meeting of the World Bank and its sister institution the International Monetary Fund. Poor families around the world are being pushed to the brink of survival, causing irreparable damage to the health of millions of children, said the report, entitled, "Rising Food and Fuel Prices: addressing the risks to future generations."
"While people in the developed world are focused on the financial crisis, many forget that a human crisis is rapidly unfolding in developing countries," said World Bank Group President Robert Zoellick, a former U.S. trade representative. "The financial crisis will only make it more difficult for developing countries to protect their most vulnerable people from the impact of rising good and fuel costs," said Zoellick. That is exactly what is happening in Zimbabwe. With more than five million Zimbabweans facing severe food shortages, the UN's World Food Programme is appealing for US$140 million to provide vital relief rations over the next six months. If the appeal falls short, WFP warns it will run out of food in January at the peak of the crisis. "Millions of Zimbabweans have already run out of food or are surviving on just one meal a day and the crisis is going to get much worse in the coming months," said Mustapha Darboe, WFP regional director for East, Central and Southern Africa. "WFP can prevent this crisis from becoming a disaster but we need more donations and we need them now." Zimbabweans from middle social income categories, such as teachers, who normally have not sought food assistance, are now gathering at food distribution points at several locations in the country to register for the WFP's vulnerable group feeding program. The United States was the largest donor to WFP's operations in Zimbabwe in 2008, giving US$105 million, followed by the UK, which donated $18 million, and Australia with $14 million. Released today, the World Food Programme's latest report on the highest profile food emergencies shows they are centered in Africa.
In Ethiopia, rations of beans and oil have been reduced and 6.4 million people are projected to need food aid in November. In Somalia, a ban on International Medical Corps operations in the Bakool region of south Somalia by the Islamist insurgency group Al Shabaab has curtailed the distribution of food in the region. Reports indicate that CARE International has also been banned. WFP is talking with authorities in an attempt to find a resolution. In Sudan, the WFP will take over a food support program to 130,000 internally displaced people in Gereida, South Darfur, by the end of the year, at the request of the International Committee of the Red Cross, which has been operating the program. On Monday, a relief team left for Yambio, Western Equatoria State to set up a refugee feeding program in support of displaced Congolese people. The UN High Commission for Refugees reports that some 5,000 Congolese have fled to Yambio, and estimates that 150 people are still crossing daily into southern Sudan. Fleeing refugees reported violent attacks on their villages in the Democratic Republic of Congo, perpetrated by Uganda's Lord's Resistance Army. In May, the World Bank Group created a new $1.2 billion rapid financing facility - the Global Food Response Program - to speed assistance to the neediest countries. As of October 9, the program had approved and begun disbursing $193 million in 20 countries, including Somalia and southern Sudan. One project totaling $7 million is pending approval, according to a statement by the bank, while an additional $651 million is being earmarked for programs in 11 countries. The money is used to feed poor children and other vulnerable groups, provide for nutritional supplements to pregnant women, lactating mothers, infants and small children, to meet additional expenses of food imports or to buy seeds for the new season. Copyright Environment News Service (ENS) 2008. All rights reserved. |
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U.N. Says Biofuel Subsidies Raise Food Bill and Hunger
By ELISABETH ROSENTHAL
Published: October 7, 2008 |
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ROME — A United Nations food agency called on Tuesday for a review of biofuel subsidies and policies, noting that they had contributed significantly to rising food prices and the hunger in poor countries.
With policies and subsidies to encourage biofuel production in place in much of the developed world, farmers often find it more profitable to plants crops for fuel than for food, a shift that has helped lead to global food shortages. Current policies should be “urgently reviewed in order to preserve the goal of world food security, protect poor farmers, promote broad-based rural development and ensure environmental sustainability,” said a report released here on Tuesday by Jacques Diouf, the executive director of the United Nations Food and Agriculture Organization. In releasing the report, the United Nations joined a number of environmental groups and prominent international specialists who have called for an end to — or at least an overhaul of — subsidies for biofuels, which are cleaner, plant-based fuels that can sometimes be substituted for oil and gas. In a devastating assessment released this summer, the Organization for Economic Cooperation and Development concluded that government support of biofuel production in member countries was hugely expensive and that it “had a limited impact on reducing greenhouse gases and improving energy security.” It did have “a significant impact on world crop prices” by helping to raise them. “National governments should cease to create new mandates for biofuels and investigate ways to phase them out,” the Organization for Economic Cooperation and Development concluded in its report. The organization includes European countries, the United States, Canada, Japan and Australia. Still, Willy de Greef, secretary general of EuropaBio, a biotechnology industry group, said the world possessed the land and agricultural ability to produce enough food and fuel through subsidy programs. “Of course these policies have to be developed with high quality sustainability criteria,” he said. But he added that that should include consideration of the fact that biofuels could help reduce poverty. “The development of biofuels will in fact create new revenue options for farmers all over the world, including poor farmers,” he said. In the past eight years, as oil prices and concerns about carbon emissions have increased, a number of countries, including the United States, and the European Union have put into place subsidies and incentives to energize the fledgling biofuel industry. As a result, the production of biofuels made from crops that could also be used for food increased more than threefold from 2000 to 2007, the Food and Agriculture Organization said. Support to encourage biofuel production in Organization for Economic Cooperation and Development countries amounted to more than $10 billion in 2006, the organization said. But a host of studies in the past year concluded that the rush to biofuels had some disastrous, if unintended, consequences for food security and the environment. Less food is available to eat in poor countries, global grain prices have skyrocketed and precious forests have been lost as farmers have created fields to join the biofuel boom, the studies said. Worse still, specialists say, so much energy is required to convert many plants into fuel that the process does not result in a savings of carbon emissions. The O.E.C.D.’s report said only two food-based fuels were clearly environmentally better than fossil fuels when considering the entire “life cycle” of their production: used cooking oil and sugar cane from Brazil. Sugar cane is far easier to convert to biofuel than most other crops. Already this year, the European Union has stepped back from its target of having 10 percent of Europe’s fuel for transportation come from biofuel or other renewable fuels by 2020. Last month, the European Parliament suggested that only 5 percent come from renewable sources by 2015, and that 20 percent come from new alternatives “that do not compete with food production.” Mr. Diouf of the Food and Agriculture Organization stopped short on Tuesday of suggesting that the world end biofuel subsidies. Rather, he said they should be revised to direct the benefits to developing nations. |
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Criminal Gangs Plunder the Planet for Quick Profit
VIENNA, Austria, October 14, 2008 (ENS)
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Organized environmental crime is a serious and growing threat across the world, according to a new report by the undercover Environmental Investigation Agency. The London-based NGO today presented its report to a United Nations meeting on transborder organized crime in Vienna with an urgent call for action.
The report warns that environmental crime generates tens of billions of dollars in profits for criminal enterprises every year, and it is growing. EIA campaigns director Julian Newman said, "Our report shows how organized criminals are looting the planet for a quick profit. It is time for the international community to step up and meet this threat head on."
Environmental crimes are illegal acts which directly harm the environment, and include the illegal trade in wildlife, smuggling of ozone-depleting and global-warming substances, illicit trade in hazardous waste, illegal fishing, illegal logging and the associated trade in stolen timber. EIA, which has exposed environmental crime using undercover methods for 24 years, says its recent experience indicates environmental criminals are becoming more organized, building up networks to operate across international frontiers and using sophisticated techniques to move illegal goods around the world and launder the proceeds. The report, "Environmental crime - A Threat to Our Future" was presented to the fourth session of the UN Convention Against Transnational Organized Crime, UNCTOC, at an event organized by EIA. Antonio Mario Costa, executive director of the UN Office on Drugs and Crime, spoke at the launch of EIA's report. "At a time when climate change and environmental sustainability are such high priorities, it is shocking to think that there are criminals profiting from the destruction of our planet. This is not a victimless crime. On the contrary. Since we share one planet, damage to the environment anywhere in the world hurts us all," said Costa. Environmental crime is often perceived as victimless, yet in reality all of us are affected, EIA says. These crimes lead to deforestation and habitat destruction, depriving communities of their livelihoods; cause ecological problems such as flooding; foster corruption and bad governance; and contribute to climate change, and at the same time generate tens of billions of dollars in profits for criminal enterprises. Addressing delegates to the UNCTOC conference today, Costa linked organized crime with many forms of environmental destruction. "At a time of great concern about climate change," he said, "let's recognize that organized crime is an environmental threat, from mafia control of garbage disposal and the dumping of hazardous waste, to the destruction of primary forests, illegal logging and the trafficking of endangered species." "Above all organized crime is also an economic issue," Costa said, "it exploits resources like blood diamonds, precious metals, or by bunkering oil. Piracy and banditry disrupt trade and prevent aid delivery." Most of all, organized crime is a development issue, said Costa, citing reports on corruption in Africa, the Caribbean, Central America and the Balkans, that show "a correlation, even causality, between weak rule of law and weak economic performance." Saying that the UN system needs to train more skilled people to fight corruption, Costa and Interpol chief Ron Noble today announced the joint establishment of the International Anti-Corruption Academy. The new academy will open next autumn in Laxenburg just outside Vienna, specializing in anti-corruption education, research, and professional training.
The EIA hopes it will make a difference in combating organized environmental crime, which is often linked with corruption. The EIA report states, "Individuals in corporate or official positions of authority and power view environmental crime as a chance to cash in." Examples of this can be found in the case studies of the EIA report, "signing and forging import and export certificates; facilitating the transport of illicit goods and 'turning a blind eye' are all examples of the institutionalized corruption described." "Far more serious, and yet just as common," says the EIA report, "is the complicit, longterm involvement of individuals from the police, army, government and intergovernmental organisations. Cocooned by familiar bureaucracies, weak legislation and poor enforcement, corrupt officials can thrive through environmental crime. Furthermore, corruption may be preventing the true cost and extent of environmental crime from being properly assessed or effectively addressed." Although many international bodies such as the UN General Assembly, the United Nations Office on Drugs and Crime and the World Customs Organization have recognized environmental crime as serious and transnational, EIA believes it is not taken as seriously as other forms of organized crime because countries lack the political will to provide the resources to carry out enforcement. The EIA is urging governments, police forces, customs and United Nations agencies to recognize environmental crime as a serious time-critical problem, and work together to mount a "substantial, committed and sustained global response." Copyright Environment News Service (ENS) 2008. All rights reserved. |
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English honey to run out before Christmas
By Paul Eccleston
Last Updated: 4:01pm BST 16/10/2008 | ||
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English honey is unlikely to feature on Christmas menus this year as supplies run out.
Combined with another wet summer - which prevented the bees gathering pollen - it has resulted in a honey shortage. Supermarkets and shops rely on a few dozen big commercial honey farms for their supplies of English honey but there is much less available this year. Rowse, who have a third of the market in the UK, had hoped to supply supermarkets with 250 tonnes but Mr Bailey thinks it may be only half that amount. "It has been a terrible, terrible year possibly the worst for 28 years. Bee numbers are down again and the weather has been so bad it has prevented them from foraging. We will be lucky if the total honey crop this year amounts to 2,000 tonnes," he said. About 30,000 tonnes of honey is consumed annually in the UK and 90 per cent is imported - mainly from Argentina, Mexico, and Hungary. But the decline in bee numbers is a worldwide problem, particularly in North America where the fruit growing areas of California and Florida have been especially hard hit by so-called colony collapse disorder. The result has produced shortages and pushed up costs by as much as 60 per cent. Prices are still comparatively low because of competition between the big High Street supermarkets with honey marked down as a loss leader. Despite a bumper harvest for English apples this year, thanks to a warm frost-free Spring and a wet summer, there are fears that fruit production will also be affected by the dearth of bees. Bees pollinate an estimated 90 per cent of the apple crop, 30 per cent of the pear crop and much of the soft fruits such as strawberry and raspberry. Adrian Barlow, chief executive of English Apples and Pears, said: "We are currently in the midst of English apple season. The threat to the honeybee is a huge concern as without bees to pollinate orchards, there would be a real risk of apple shortages in the future." The apple-dependent cider industry is also worried. Martin Ridler, orchard controller for Gaymers Cider, said: "We need beehives in orchards because we rely on honeybees to pollinate apple blossom in Spring. "You can hope for insects and the wind to help but honeybees guarantee pollination." Next month the British Bee Keepers Association (BBKA) which represents amateurs and has about 12,000 members, will be lobbying Parliament and handing in a petition to Downing Street demanding that more money is spent on research into the diseases thought to be responsible for decimating bee populations. And more than 100 MPs have signed an early day motion called for the Government to take the problem more seriously. The BBKA claims that bees are worth £165m to the economy because of their vital role in crop pollination and wants £8m spent on research over the next five years. Initially the Department for the Environment, Food and Rural Affairs (Defra) earmarked only £200,000 for research into bee diseases but found an extra £90,000 after admitting that there had been "significant" colony losses across the country. Rowse Honey has pledged £100,000 over three years towards research. Defra is drawing up a new strategy for bees but it is unlikely to be published until next Spring. The parasitic varoa mite, viruses, pesticides, a shortage of nectar caused by changes in farming practices, and even stress have been suggested as the main reasons for the bee decline. |
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In Praise of Economic Pain
The threat of recession could lead to an environmental boon
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Not long ago, Hummers hulked down city streets, angling for social status and house-sized parking spaces. The grasslands once considered “the country” morphed into exurbs where families longing for a McMansion of their own could choose between blue and beige. Ever-expanding malls restocked their Made in China lines quicker than any middle American Paris Hilton wannabe could say “Charge it.” A well-heeled class of liberal Cassandras perched atop recycled soapboxes warned us against such folly. But their appeals landed mostly on deaf ears, plugged up with Bluetooth headsets, corporate jingles, and MP3 downloads. Fast-forward to the present day. SUVs sit alone on America’s sales lots, looking like wide-eyed dinosaurs witnessing their own extinction. The New York Times recently reported that the decades-long migration from cities to suburbia is ebbing toward reversal. Despite the Bush administration’s tax-break bribe, the consumption slump slouches toward thrift, sending shivers down Wall Street’s spine. In less than a year, record oil prices have accomplished what only tireless environmental activists once dared to dream. Detroit is finally coming to its senses and gunning for fuel efficiency. Not only are consumers abandoning unsustainably gigantic exurban homes that rack up astronomical heating and commuting bills, Governing reports (May 2008) that cities and counties are buying up developers’ land to use for conservation and parks. Even blue-collar supermarkets like Safeway and Supervalu are, according to Sustainable Industries (May 2008), bolstering their organic offerings to capture penny-pinched high-enders eschewing pricey natural food stores. No one likes a recession. The truth is, though, that most of us need to be jolted out of a fossil-fueled consumerist binge that’s gobbling up the planet. While the latest downturn hurts, America has much to gain from it, not the least of which is sanity—a break from the soul-numbing, environmentally devastating addiction to ever more stuff. Citizens can leverage today’s experience into meaningful policy changes. Take, for instance, much-needed investment in public transportation infrastructure. According to the American Public Transportation Association, Americans registered nearly 85 million more public transit trips in the first quarter of 2008 than in the same period last year. Bike shops are doing record business as well, Foreign Policy online reports (June 2008). Each of these new converts can help push for better public transportation networks and bike-sensible urban planning. The poor may finally gain some allies, too. Perhaps, opines Salon (April 18, 2008), “skyrocketing costs of food and gas will make us stop for two seconds to consider how impossible it is to feed a family these days on our laughable minimum wage.” The country has seen a national character correction before. During World War II, folks turned sacrifice at home into car sharing, growing 30 to 40 percent of the country’s vegetables in their yards, and recycling every scrap of metal, rubber, nylon, and wool they could lay their hands on, down to sheared skirt hems and pant cuffs. Today’s war has the majority sacrificing little more than its faith in the current president. Our self-propelled salvation won’t be for the love of country, it seems, but for the love of coin. It’s not a noble cause, but it’ll do. http://www.utne.com/2008-09-01/Environment/In-Praise-Of-Economic-Pain.aspx |
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The Stone Age did not end for lack of stone, and the Oil Age will end long before the world runs out of oil. ~ Saudi Arabian petroleum minister Ahmed Zaki Yamani, (1986). |
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A couple of stories this week about new developments in Algae
Algae fueling the green revolution
Big bucks behind the search for new power
By LISA STIFFLER
P-I REPORTER If Bill Gates and Boeing are right, pond scum could be the salvation for our nation's energy woes. They've joined the race to find a cost-effective, environmentally friendly way to turn algae into the fuel needed to power cars, trucks, airplanes and boats.
The amount of money being invested in algae-to-fuel research by venture capitalists is skyrocketing. New businesses are snapping up graduate students knowledgeable about the aquatic plants before they've even finished their degrees, and they're hustling to form alliances with algae academics who for years toiled without much notice. "Industry is coming to us," said Shulin Chen, a Washington State University biological engineering professor working on algae power. "We have new ideas in all the areas that we're working on," he said. "They're promising, but we can't say it's economical at this point." With oil at $100 a barrel or higher and worries about making biofuels out of crops such as corn and soybeans driving up food prices, it's little wonder that there's a rush for algae-based fuels. "This is an exciting time," said Rose Ann Cattolico, a University of Washington algae expert. And while research in this field is occurring globally -- scientists in New Zealand are trying to grow the plants on sewage waste; an Israeli company is using power-plant pollution to feed algae -- the West is a hot spot for research. "A lot of the innovation is happening on the West Coast," said Darrin Morgan, The Boeing Co.'s director of business analysis/environmental strategy. "We have a long history of being early adopters and thinking out of the box." Morgan is co-chairman of the Algal Biomass Organization, the world's first algae trade group. In October, the organization is hosting the second annual biomass summit in Seattle -- a meeting expected to attract experts and investors from around the world.
"We're not in the algae business, but we are a strong proponent of it," Morgan said. "It really holds great promise -- with some technical breakthroughs needing to be made." Algae-to-fuel puzzleCattolico's lab is a treasure trove of algae. In one of multiple walk-in refrigerators, you can find algae masquerading as brown cotton balls. There are jars of lacy red plants and bright-green algae that look like tapioca. The plants can be so small they simply fill flasks with a murky brown liquid. Some of the algae like to grow in warm, bright conditions, while others are happier in cooler, darker waters. They like different foods. They make different kinds of fats -- some better for powering a semi; others more suited to jets. But many share key traits: They can reproduce and grow fast, produce more fats than other plants and can be grown in all kinds of conditions -- concrete pools, sewage ponds or plastic bags and containers. They don't require fertile farm ground or the clearcutting of forests. Corn and other plant-derived fuels can require significant amounts of energy and other resources to produce, contributing to global warming. But power plants can feed their carbon dioxide emissions into containers holding algae to boost their growth. Algae fuel is hailed not only for reducing the use of polluting fossil fuels, but also for helping consume greenhouse gases in its production. That has many of the scientists tackling the algae riddle excited about its potential to help with climate change. "It's a big-picture problem," said Michael Huesemann, a staff research engineer working on algae at Pacific Northwest National Laboratory's marine sciences lab in Sequim. "It's always fun to work on something that's meaningful." With all of these benefits and interest, why isn't everyone driving around algae-powered vehicles? Right now it's too expensive to turn algae into fuel in large volumes at a price that's competitive with petroleum-based fuels. Algae needs to be grown densely to yield enough fuel, but that means expending extra energy to mix the plants so they all get enough sunlight. It's tricky to harvest the algae from the water efficiently. Then the sturdy little cells must be cracked open either through mechanical means such as shaking or by chemically dissolving them in order to remove the fat for fuel. "People don't think about this stuff. They think, 'We're going to grow some algae,' " Cattolico said. "You can see the complexity of it." Many estimates predict it could be 10 years until algae fuel can be produced on an affordable, large scale. Venture capital pours inWhether the 10-year forecast is too grim or too hopeful depends in large part on investments in the work, either from government or private sources -- and those sums are rising. In 2007, $32 million in venture capital was pumped into businesses working on algae fuel. So far this year, that number has reached $184 million worldwide, according to Cleantech Network, which tracks environmental industries. In September, Bill Gates' Cascade Investment and three other companies gave a total of $100 million to Sapphire Energy, a San Diego company producing fuel from algae and other microorganisms. Boeing announced last week the creation of a coalition of aviation fuel users united to encourage the speedy development of algae fuel. The group is requiring that new aviation fuels be sustainable, meaning they produce less carbon dioxide, require minimal land, water and energy to produce, and don't compete for food production. Some terrestrial plants can meet those criteria, though their potential is more limited. Cattolico herself was recently recruited to start a business to work on algae-derived fuels. The company, called AXI, is a partnership between the UW and Allied Minds, an investment firm. The scientist was sought by the investors for her 30 years of algae expertise and wide-ranging knowledge of species. "We are going to be one of the prime suppliers (of plants) to the bio-algae industry," boasted Erick Rabins, a vice president with Allied Minds and general manager of AXI. Cattolico is more conflicted over teaming up with investors, which restricts her ability to share her findings. But she's grateful for an influx of funding that allowed her to hire three researchers and speed up her work. Students are aware of the promise of algae fuel and eager to join her lab -- but they don't always stick around. Cattolico lost a talented grad student recently when a business snatched him right off the research bench before he'd finished his degree. Nicholas Bigelow graduated from the UW with a degree in chemistry last year intent on getting a job in this area and landed in Cattolico's lab. "Other students ask about it -- friends ask about it. I have friends who are very jealous of my job," Bigelow said. "It's a field that's going to be very large." For now, Cattolico would like to see the field become more collaborative, with less focus on the economic gains in solving the algae-to-energy puzzle. "Everybody wants the big golden ring. You have to be in it for another reason," she said. "We need to link arms and come together." GreenFuel Tech opens algae-growing greenhouse
GreenFuel Technologies on Tuesday is expected to announce what few in the algae fuel business can claim--a paying customer.
The Cambridge, Mass.-based company detailed a multi-year deal worth $92 million to build greenhouses that grow algae, which can be harvested for vegetable oil to make biodiesel or to make animal feed.
In the greenhouses, the algae will be fed sunlight and carbon dioxide from the Holcim cement plant near Jerez, Spain. The project developer is Spain's Aurantia, which specializes in renewable energy. GreenFuel executives have said they are pursuing other deals with large polluters, such as utilities and heavy industry, with other project developers in different parts of the world. The deal, which has been rumored for months, is a milestone for the 7-year-old company with roots at MIT and for the budding algae industry overall. GreenFuel Technologies originally tested its algae-growing process in plastic bags with an Arizona utility. That project ran into trouble when the cost of harvesting the algae biomass was too high. Its greenhouse design--which the company will not discuss in detail--grows algae without tubes and uses an automated harvesting system, according to CEO Simon Upfill-Brown. The water in which the algae grows is recycled. GreenFuel and Aurantia now have a 100 square-meter prototype operating. It's next stage, slated for completion in about a year, is a 1000-meter installation. It hopes that by 2011, it will have a full-scale operation, which will take up 100 hectares, or about 250 acres, Upfill-Brown said. A 100-hectare algae farm would consume about 50,000 metric tons of carbon dioxide per year--about 10 percent of its the cement factory's annual emissions--and grow about 25,000 tones of algae biomass. Cement makers are some of the largest emitters of carbon dioxide. With the farm, Holcim will get positive PR and take a step toward mandatory emissions cuts, Upfill-Brown said. He expects that the project developers will choose different strains of algae to optimize for different end products, be it oil or feed. In the past year, there have several companies formed to make algae for oils for fuels or pharmaceuticals. But thus far, there aren't any companies producing algae for fuel at commercial scale. "Some people are making clearly outrageous claims. We're at the stage where we can say we are pretty comfortable and very optimistic that we're getting all the way there in phases," he said. On top of technical challenges, a potential problem with algae ventures is falling petroleum prices, which make it harder to be cost competitive. Struggling biodiesel maker Imperium Renewables is said to have delayed an algae farming venture in Hawaii. Upfill-Brown said the company expects to raise a series C round of funding in the next month to further develop its greenhouse. It intends to seek out other project developer customers like Aurantia as customers. Updated at 4:55 a.m. PT with corrected figure for amount of carbon dioxide consumed by a 100 hectare algae farm. |
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