CarbonSignal

The State government of Western Australia has announced the preferred applicants for geothermal exploration permits in the Perth basin.  Next month another batch of permits will be released for the Carnarvon basin.

Mines and Petroleum Minister Norman Moore says,

“It does have enormous potential if it succeeds in providing energy, new energy sources for the state. There’s a way to go, but it’s a very, very good start.”

To explore for geothermal energy, the prospective energy companies will need to search about 2km below the earth’s surface, hoping to find a resource of hot water.  The water would be brought to the surface where it could be used as a thermal energy source for heating, air conditioning, or electricity generation, before it is returned to the underground reservoir.  Read more in the West Australian.

Electricity prices in Western Australia are set to rise substantially over the next few years due to a government subsidy which pushed the price of power below the real cost of generation, resulting in a debt-laden utility.  This subsidy is now being pulled back so the true cost of electricity can be passed through to customers.

This exploration campaign is an exciting prospect for Perth businesses, as it could bring significant new cost-competitive clean energy supplies online with no associated greenhouse gas emissions.

A website has been launched to petition the Federal government for a Gross Feed-in Tariff. The proponents also seek firm commitments on scheme lifetime and a fixed price per kilowatt-hour:

“Without a long-term commitment of at least 15 years to a gross feed in tariff and at least 80c per kilowatt hour for homes and businesses, Australia’s program would pale beside the successful German model and amount to little more than a token gesture. Our petition site, FeedInTariff.com.au, seeks to demonstrate the support in the community for a system that works: one that will not only help us reduce greenhouse gas emissions but drive investment in a fragile economic environment.”

Under a Gross Feed-in Tariff scheme, a property owner would be paid a premium rate for all electricity they produce from their renewable generators, regardless of whether the power is consumed on-site or supplied to the grid.  This differs from a Net Feed-in Tariff scheme, such as the scheme implemented in South Australia, which only pays on surplus power that is exported to the grid.

Click the banner below to visit the site and add your name to the petition.

The FAQ on the petition site claims some impressive figures if a Gross Feed-in Tariff is implemented, such as 9,000 new jobs and a 4 million tonne-CO2 savings per year, but neglects to address the issue of funding.  A guarantee of 80 cents per kWh for 15 years would certainly stimulate a great deal of investment and widespread technology uptake, but where would the money come from?  How much will it cost the government?  The utility companies?  The economy?  The petition cannot present a sound business case without a watertight answer to these questions.

HAC is pleased to announce the launch of a new 1-day course that will help mining industry professionals prepare for Australia’s emissions trading scheme.  The course is conducted in partnership with the well-established Perth-based firm, Mineral Engineering Technical Services (METS).  The outline includes 8 modules:

1. Overview: Introduction to emissions trading and the Carbon Pollution Reduction Scheme
2. The Target: The emissions cap and Australia’s emissions trajectory to 2050
3. Compliance: Streamlining compliance with other government reporting schemes such as EEO and NPI
4. Offset Emissions: The role of offsets and international credits
5. Case Study: Mining industry example of obligations and permit transactions
6. Strategic Considerations: Broad impacts on the industry and strategic implications
7. Reduce Exposure: Evaluation of innovative technology or behaviour changes to minimise emissions
8. Be Prepared: A suggested timeline of action items to ensure your organisation is prepared

The first course will run on March 5, 2009.

• Download the brochure and registration form [PDF, 166 kB] - OR -  register online
• Learn more about HAC
• Learn more about METS

Turnbull’s new climate plan is a fundamental policy shift from an emissions trading scheme.  The government’s proposed ETS will set a national cap on greenhouse gas emissions and allow the economy to determine the least-cost method of meeting that cap.  The ETS is expressly designed to avoid any form of technology-picking.

The approach put forward by Turnbull, however, is entirely based on technology picking.  He has firmly aligned the Opposition’s climate change policy with the coal industry by proposing that the government subsidise at least two new coal plants with carbon capture and sequestration.  Further, his plan heavily relies on sequestration of carbon dioxide in soil using technologies such as biochar.  This hits one of the Government’s weak spots because the White Paper excludes the agricultural sector until at least 2015 (the reason for the exclusion is that agricultural GHG sources and sinks are incredibly difficult to quantify with any degree of accuracy - more research is required).

Malcolm Turnbull  is essentially saying, “we know the best way to achieve a meaningful reduction in greenhouse gases. The government’s ETS will just be a waste of time and resources.  If we were in government we would cut through the bureaucracy and dictate exactly where taxpayer money should be spent.  We’re willing to bet the farm that we would get it right.”

In comparison, Kevin Rudd is essentially saying, “we have some ideas about the options to reduce GHG emissions but there’s just not enough information out there for us to decide where to allocate the funding.  Instead of risking a major disservice to Australian ingenuity, we’re going to create an economic incentive to reduce emissions and let the market decide for itself.”

Rudd’s approach fits well with the European approach, the Kyoto Protocol, and Obama’s plans for the US.  Turnbull seems to have put his party way out on a limb.

Read more about Turnbull’s Climate Plan on ABC News.

The World Future Energy Summit, held annually in Abu Dhabi, has become the largest and most significant conference of its kind.  A look through the program reveals an incredible array of high quality speakers.  Some of the world’s most powerful corporate and government decision-makers are in attendance, making this event a great opportunity to pitch ideas and close deals.

LowCarbonEconomy.com writes:

Abu Dhabi is a land where fairy tales can become reality, and the impossible is business as usual.

Seven emirates make up the United Arab Emirates. Dubai is perhaps the best well known, however Abu Dhabi is the one to look out for. The UAE holds almost 10 percent of the worlds oil reserves and the fifth largest natural gas reserves. Almost 95 percent of these are located in Abu Dhabi creating wealth and opportunity beyond most peoples imagination.

The Oil Drum reports that the conference was opened by Prince Willem-Alexander, with a discussion of the “four peaks”:  peak oil, peak gas, peak coal and peak uranium.

“Ladies and gentlemen, did you know that when the Roman Empire finally collapsed, large parts of Europe had been deforested. Acres of forestland had been cleared for farmland and to provide firewood. Wood and food were essential, to maintain the roman empire. To meet their short term needs, the Romans overexploited their prime energy resource. They did not think about the consequences for later generations. So the demise of a seemingly invincible civilization was partially due to the unsustainable use of their prime energy resource. The question is, are we going to be any wiser?

What the Romans were experiencing, we would now describe as peak wood. Reaching a point of maximum production after which it enters terminal decline. We are now facing a century of at least four undesirable peaks, peak oil, peak gas, peak coal and peak uranium. Mountaineers may be proud to conquer peaks, but there is no reason whatsoever for us to be proud. We can, however, change the course of history. The technologies we need are there.”

The Oil Drum article also provides access to all speeches through the summit’s media page.  View the program here, and see LowCarbonEconomy’s review here.

The Australian Emissions Trading Scheme commences in mid-2010.  The currency of trade will be known as Australian Emission Units (AEUs).  Companies have been trading AEU contracts ahead of the scheme, with buyers attempting to bring certainty to their future carbon costs while sellers lay the groundwork for a potential profit.

The release of the Government’s White Paper in December provided the first confirmation of key design features of the scheme.  Reuters reports that the first trade since the White Paper was issued occurred on Monday, with 10,000 AEUs traded at a price of $22.25 each.  The parties involved in the trade were not disclosed.

The trade occurs at a time when European Phase II permits are at an all-time low of 11.24 Euros, after a 60% decline in value since July 2008.  Reduced economic activity due to the global financial crisis translates to lower overall emissions, depressing the price of emissions permits and threatening the viability of marginal clean energy projects.