Tag Archives: alternative

EU Carbon Price Rebounds

AAP 13/06/13 Europe’s carbon price has surged to its highest level in months, prompting analysts to tip a rosier outlook for Australia’s future carbon market. The spike came midweek as EU lawmakers expressed for the first time bipartisan support for efforts to fix Europe’s ailing emissions trading scheme (ETS). The EU parliament in April voted against a plan to temporarily “backload”, or remove, 900 million permits from its market in a bid to double its carbon price. The rejection saw prices plunge to record lows, and bleak projections that Australia’s carbon price would fetch less than $3 per tonne when it links with Europe’s ETS in 2015. But the price of European carbon permits hit a two-month high this week after conservative politicians indicated they’d support an amended backloading plan. The proposal is now expected to proceed to the EU parliament once again, where it will go to a final vote on July 2. Energy and carbon advisory firm RepuTex said although not set in stone, bipartisan support for this proposal was unprecedented and spelled good news for Europe’s ETS. “Prices don’t spike 70 per cent in one day unless there’s good news,” RepuTex executive director Hugh Grossman told AAP. If the vote is successful it would have immediate implications for Australia, even though it’s not anticipated the local market will mirror exactly what’s going on in Europe. RepuTex expects Australia’s carbon price to reach $5 in 2015 when the schemes link, well short of the revised down $12.10 forecast in the May budget. But by 2020 they predict it could climb to $30 per tonne, closer but still under Treasury’s estimate of $38. “Previously the government was a fair way off (with estimates), and certainly we still think it’s being optimistic,” Mr Grossman said. “But backloading really does support their claims a lot better.” However he warned against being too optimistic, as the price spike was similar to that experienced in the weeks leading up to the last failed vote. After that fell over, RepuTex predicted Australia’s carbon price – currently fixed at $23 and set to rise over the next two years – would likely fetch an average $2.70 between 2015 and 2020. Continue reading

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Soil Carbon Makes Biomass Calculations Even More Complicated

12 Jun 2013, 15:20 Robin Webster Managing forests so that wood can be burnt for energy could release large amount of carbon from the soil and increase greenhouse gas emissions, according to a new study. The government plans to ramp up the amount of power the country gets from bioenergy . In theory, generating electricity from plants, trees and crops can be carbon negative . But there’s a complicated argument going on about whether using wood to generate electricity might lead to more, or less, greenhouse gas emissions. Now, a new study from Dartmouth College has added to the controversy. It shows that harvesting forests more intensively disturbs the carbon in the soil – releasing more carbon dioxide into the atmosphere. What is soil carbon? Forests are carbon stores. About a third of the world’s global soil carbon is stored in forest soil, and around half of that is in soil derived from minerals or rocks . Disturbing the soil could mean that the carbon is released into the air as carbon dioxide. But collecting measurements on mineral soil carbon is a labour-intensive process – which means there isn’t much data out there. As a result, many carbon monitoring systems assume that mineral soil carbon is not affected by the way a forest is managed. Assessing what happens to mineral soil carbon According to the new paper, published in the journal ofGlobal Change Biology-Bioenergy, this isn’t right. Reviewing a number of recent studies in North America, it says that harvesting and then replanting forests may lead to “significant and long-term carbon losses in the mineral soil”. In one case, a forest that was clear-cut and then replanted in Nova Scotia still showed a 50 per cent loss in mineral soil carbon 30 years later. Another study recorded a “significant” decline in mineral soil carbon eight years after a hardwood forest in the United States was cut down. Co-author Professor Andrew Friedland tells Eurekalert : “Our paper suggests the carbon in the mineral soil may change more rapidly, and result in increases in atmospheric carbon dioxide, as a result of disturbances such as logging … [it] suggests that increased reliance on wood may have the unintended effect of increasing the transfer of carbon from the mineral soil to the atmosphere. So the intended goal of reducing carbon in the atmosphere may not be met.” Some caveats There are some caveats. First, this is a complicated area. The studies reviewed don’t all agree about how much soil carbon is lost when a forest is cut down. The paper also concentrates on what happens when forests are chopped down and regrown – it doesn’t look in detail at what different sorts of forest management could mean. The biomass industry argues whole trees won’t be used as a source of bioenergy anyway. Instead, it says it will use by-products from forestry like sawdust, bark and smaller trees known as thinnings. The study doesn’t address what extracting these other products from the forest could mean for mineral soil carbon. But Friedland tells Carbon Brief: “…we can say that there are suggestions that each of these different forest removal approaches will have different implications for the amount of carbon that gets mineralised, or released, from the soil to the atmosphere”. What does it mean? The authors conclude: “This debate [on how to manage forests, and the use of wood for bioenergy] must include mineral soil carbon.” Including even a “moderate forest soil carbon loss” can have a significant impact on calculating whether burning wood to make bioenergy will lead to a reduction in greenhouse gas emissions, they conclude.   The paper is clearly not the last word on the bioenergy debate – but it brings a new issue into what is already a pretty involved argument. In the future, a significant amount of wood burnt in UK power stations could come from North America – so how those forests are managed will matter. Continue reading

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Google-Backed Cool Planet Raises $29.9m In Debt

7 Jun 2013 Google-backed biofuels developer Cool Planet has raised just shy $29.88m of debt as it moved forward with plans to build its first production facility. The company, which also counts BP, General Electric and NRG Energy as investors, disclosed the financing in a filing with the Securities & Exchange Commission. Although the disclosure states that Cool Planet is not looking to increase this level of debt investment currently, CFO Barry Rowan told Bloomberg the effort is part of a $100m it expects to raise this year that will be converted into equity at completion. Its company is planning for its first production facility to be complete by the end of 2014 but a site has not yet been decided. Rowan joined the business in December 2012, bringing with him over 30-years’ experience in building and turning around large-scale technology companies in a variety of industries. He previously served as EVP, CFO and chief administration officer for Vonage, a $900m internet communications company. Based in California’s Silicon Valley, Cool Planet has previously said it expects the price tag of its first plant to be $50m with additional funds needed for production and other corporate expenses. According to a report in GigaOm, the high-tech business said it is estimating the production of biofuel to cost $1.50 per gallon at a plant that would have a capacity of ten million gallons per year. At the beginning of 2012 it received permission from the California Air Resources Board (CARB) to begin fleet-testing its negative carbon gasoline product. Copyright © 2013 NewNet Continue reading

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