Tag Archives: green

Fortum’s Biofuel-Fired CHP Plant Inaugurated In Järvenpää

FortumPress releaseFortum’s biofuel-fired CHP plant inaugurated in JärvenpääEspoo, Finland, 2013-06-14 14:30 CEST (GLOBE NEWSWIRE) — PRESS RELEASE 14 June 2013 Fortum’s new biofuel-fired plant has been commissioned in Järvenpää, Finland. The plant utilises biofuels to produce district heat for about 34,000 residents in Tuusula and Järvenpää as well as electricity for the national grid. The plant’s annual production is about 280 gigawatt-hours of heat and about 130 gigawatt-hours of electricity. The amount of heat production is equivalent to the annual heat consumption of about 31,000 average-sized Finnish households. Minister of Economic Affairs Jan Vapaavuori and Fortum’s Chief Financial Officer Markus Rauramo inaugurated the biofuel-fired CHP plant on Friday, June 14th, in Järvenpää. “One of the cornerstones of Fortum’s strategy is strong competence in combined heat and power (CHP) production. CHP production is a very energy efficient and low-emissions production form. Moreover, Fortum uses the most biomass for energy production in the Baltic Region. That is another reason why the Järvenpää CHP plant project aligns well with Fortum’s strategy. At the same time, the plant supports Finland’s emissions reduction targets and increases the use of renewable energy,” Fortum’s Chief Financial Officer Markus Rauramo noted in the inauguration speech. Normally, the plant uses only biofuel, mainly forest residues and forest industry by-products, like sawdust and bark. If needed, the plant can also be fuelled with peat and natural gas. Every weekday, some 35 truckloads of biofuel are transported to the Järvenpää plant. The fuel is locally sourced from an approximately 100-kilometer radius from the plant. Acquiring, handling and transporting the fuel provides employment for about 80 people. Fortum invested about 80 million euros in the Järvenpää biofuel-fired plant. During the past three years, Fortum has invested close to 300 million euros in low-emissions energy production in the Helsinki metropolitan area. These eco-friendly plant investments significantly decrease carbon dioxide emissions in the region. Emissions from heat production will decrease by about 70% in the region as a result of the investment. Fortum Corporation Corporate Communications Additional information: Jouni Haikarainen, Vice President, Fortum Heat Division, Finland, tel. +358 40 709 5690 Fortum media phone: +358 40 198 2843 Fortum Fortum’s purpose is to create energy that improves life for present and future generations. We provide sustainable solutions that fulfil the needs for low emissions, resource efficiency and energy security, and deliver excellent value to our shareholders. Our activities cover the generation, distribution and sales of electricity and heat as well as related expert services. Fortum’s operations focus on the Nordic countries, Russia, Poland and the Baltics. In the future, the integrating European and fast-growing Asian energy markets provide additional growth opportunities. In 2012, Fortum’s sales totalled EUR 6.2 billion and comparable operating profit was EUR 1.7 billion. We employ approximately 10,400 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki. Additional information: www.fortum.com/fi Continue reading

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U.S. Forest Management Policy Must Evolve To Meet Bioenergy Targets

Jun 19, 2013 U.S. forest management policy must evolve to meet bioenergy targets In order to keep pace with the burgeoning demand for renewable energy, forest management policy in the U.S. must change to address environmental sustainability issues, according to an article by a University of Illinois expert in bioenergy law. Unless the forestry sector can tailor sustainable forest management policies specifically to forest-to-energy feedstocks, its role in helping the country broaden its energy portfolio – and by extension, meeting ambitious bioenergy targets – may be limited in large part because of uncertainty about whether existing policies can effectively constrain overharvesting, said Jody Endres, a professor of bioenergy, environmental and natural resources law at Illinois. “Because we have a federal system of government, we don’t have a one-size-fits-all policy on land use and biofuels,” said Endres, who also is an affiliate of the Energy Biosciences Institute, a collaboration between the U. of I., the University of California at Berkeley, the Lawrence Berkeley National Laboratory and the energy company BP. “In a lot of environmental and natural resources law in the U.S., the primary role lies with the states to manage private land. But we also have national-level problems, like climate change, biodiversity and water-quality issues, which span jurisdictions. In other words, ecosystem services are not confined to a single state’s jurisdiction. So we have this crazy-quilt system in the U.S. that needs to be untangled.” The paper, which was published in the Vermont Law Review, was written to pinpoint what U.S. policy looks like, “which is very complicated because of the intermingling of state and federal policy,” Endres said. “We don’t have a coordinated public, state or federal policy in the U.S. about what sustainability means in the bioenergy context,” she said. “We don’t have one overarching policy that says, ‘This is how you assess land for biodiversity, or for water quality.’ So this patchwork of policies really makes it difficult for outsiders like European regulators looking in. A lot of misperceptions grow out of that.” According to Endres, the U.S. needs to craft some sort of integrated standard that covers not only the purpose-grown, short-rotation biomass crops such as the perennial grass miscanthus, but also forested plantations and seminatural environments, and be able to assess whether there are actually some ecological and climate benefits for getting those lands into the bioenergy system. “Those are the problems that bioenergy in the U.S. is facing, and it’s all really very nascent, but we know it’s problematic,” she said. “How do we translate that into a policy and into a sustainability certification? How do we make it economic while also providing an on-ramp for consideration of the ecological properties of forests in terms of larger scale landscapes and connectivity? That’s yet to be decided, but the paper lays it out what the points of contention look like.” It’s an interesting conversation to have in the U.S., because unlike Europe, “we still have some natural or seminatural forest left,” Endres said. “Ultimately, the goal is for U.S. forestry interests to access the European bioenergy, which may involve an additional level of certification or verification. We certainly have mandates here in the U.S., but they’re becoming much more stringent about certification in Europe.” According to Endres, there are two main certification programs in the U.S. – the Forest Stewardship Council and the Sustainable Forestry Initiative. “Those are the two dueling standards in the U.S., but what they don’t do is address bioenergy applications specifically, and that’s mainly the carbon foot-printing of managing forests for bioenergy,” she said. “Through all of these bioenergy policies, one of the main goals is to reduce greenhouse gas emissions. But we’re not there yet in terms of how to design a policy that chooses the appropriate measurement methodology for carbon fluxes within forests, because what you really want is a net greenhouse gas reduction. Private standards have not determined yet how to account for that – the science is still nascent on the effects of sustainability standards, as well as the time horizons for accounting in comparison to business as usual.” Assessing whether a land is natural, seminatural or a plantation is also something that the U.S. doesn’t do neatly in one overarching bioenergy policy. “We need to be able to classify land so we know whether or not we can access it for bioenergy applications that would be additional to, for example, lumber or paper, although those markets have been in general decline over the past decade,” Endres said. “The renewable energy directive in Europe is not going away. Forest product industries are actually gearing up to access those markets, and ultimately consumers, especially the type who go to big-box stores and look for sustainability certification on two-by-fours and other products, will likely want to see that forests aren’t overharvested. The European Union also may want to see that in some type of formal certification.” Thus, bioenergy now carries the burden, whether justified or not, to address perceived shortfalls in sustainable forest management, Endres said. “It is simply not enough in policy design, given the historically highly charged debate about forest sustainability, to make assumptions that existing sustainable forest management policies provide the assurances necessary for stakeholders, particularly environmental and wildlife organizations, to support forest-based bioenergy initiatives,” she said. “The main environmental groups are very concerned with over-sourcing from natural and seminatural private forest lands and federal lands. And they were actually successful at the federal level at keeping federal forests off-limits from the Renewable Fuel Standard.” According to Endres, forest policy since the early 1970s has grappled with how to manage forests holistically, “so I applaud bioenergy for bringing that conversation to the forefront on how we can really manage forests in a more informed, connected way at the ecosystem level,” she said. “We could really learn a lot from Brazil’s Forest Code protections for water quality and habitat connectivity derived from forests simply because they’ve been under the microscope since the 1990s for how they’ve managed their forests, including the Amazon rainforest,” she said. “But with the emergence of bioenergy, the whole world is going to participate in that conversation, and I see that dialogue as paradigm changing, as something that will ultimately benefit both the environment and humanity.” The Energy Biosciences Institute supported the research. Source: UI Urbana-Champaign Continue reading

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Greece Looks For Salvation In EM Status

http://www.ft.com/cms/s/0/9ba2b82e-d742-11e2-a26a-00144feab7de.html#ixzz2Wqkme400 June 17, 2013 3:52 pm Greece looks for salvation in EM status By Robin Wigglesworth and Kerin Hope Greece has managed several unwelcome firsts as the eurozone crisis has unfolded. Last week, it set another precedent when MSCI, the influential index provider, relegated the country from its developed country index to emerging markets. The move was the first time MSCI downgraded a country from developed market status. While many investors had predicted MSCI’s review would end in a relegation, the move still contributed to a 3.2 per cent decline in the Athens Stock Exchange on the day. Yet, the downgrade could prove to be a blessing in disguise. Although hundreds of billions of dollars track MSCI’s developed market indices, Greece only had a small weighting and its companies are too small to be of much interest. Moreover, the type of investors that are benchmarked to developed market gauges tend to be risk-averse and shun stricken countries such as Greece. By contrast, in the EM index, Greece will have a higher weighting, which could more than override the effects of the downgrade. HSBC estimates that less than $200m of passive developed market index-tracking money will seep from Greece as a result, but the EM inflows could go above $1bn. More importantly, perhaps, the emerging markets gauge will in the longer run prove a more natural home for Greece, given that the investor base is more used to economic and political uncertainty. “Let’s face it, Greece is an emerging market and now it is classified as one,” says Achilles Risvas, manager of a Greece-focused hedge fund at Dromeus Capital. “With Greece being in the eurozone but classified as emerging markets, a number of the Greek corporates will have a relative edge to similar comparables in emerging markets.” Indeed, last week’s stock marker decline was only partly caused by the index relegation. Investors were spooked by the failure to privatise the government-owned gas monopoly, Depa, and political strife triggered by an abrupt shutdown of ERT, the public broadcaster. But some fund managers took advantage of the selling pressures from the index downgrade, and the market has climbed 6 per cent in the two days after the MSCI downgrade. “When all the index boys are forced sellers, you can pick up some great assets at very attractive prices,” one equity fund manager says. “For Greece the significance will be in the difference between the pool of forced seller versus the willing buyers on the emerging markets side.” After falling into a technical bear market – more than a 20 per cent drop since its March peak – some analysts argue that the Athens stock market is rich with opportunities. Although Greek equities are still up 93 per cent from the market’s trough last year, when fears of a eurozone exit were at their peak, the market is still worth only roughly a fifth of its pre-crisis total. Valuations are extremely low, and after surviving a domestic depression, many Greek companies are now relatively lean. Hedge funds have already made a lot of money betting on Greek bonds. But, with yields now climbing, hedge funds have started to weigh the opportunities on offer, not least in the recapitalisation of the domestic banking sector. Buttressing the banking sector will be a boon to the economy. “The recapitalisation of banks should restart credit flows, which will bring important oxygen into the economy,” says Paolo Batori, strategist at Morgan Stanley. “We believe that Greek economic growth is close to a turning point.” Nonetheless, much hinges on a return to economic growth, political stability and more clarity on the government’s finances. None of these factors can be taken for granted. Predictions of a Greek economic rebound have tended to disappoint, the ERT imbroglio highlighted the country’s political fragility and its debts are still ballooning. Greece is expected to receive a debt reprieve of some sort from its official sector lenders, but the extent of that will be politically sensitive. In the meantime, its bailout programme could easily veer off course. Athens will only get a debt write-off if it sticks closely to the targets – and privatisation is already wildly off-target. Local analysts worry some listed companies that have survived this far could still implode next year as banks are not expected to increase lending soon. Hedge funds have required very favourable terms to recapitalise Alpha Bank and will be wary of many other weaker lenders. Moreover, doubts persist about when the economic recovery will start. The government is predicting growth will return midway through next year, but some local economists are already predicting a seventh year of recession in 2014. Emerging market investors may well be more comfortable with these kinds of risks, but few will yet be rushing to snap up Greek equities. Additional reporting by Ralph Atkins, Alexandra Stevenson and Christopher Thompson Continue reading

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