Tag Archives: Coal

Climate clippings 103

Climate clippings_175

I like to think that at Climate Plus we cover all the important issues and happenings. In this edition we look at two significant reports, one by Jeffrey Sachs to the UN Secretary General and the IEA’s World Energy Investment Outlook 2014.

As usual use Climate clippings as an open thread on climate change.

1. Deep Decarbonization Pathways

Renowned economist Jeffrey Sachs found that Australia could cut emissions from its energy sector to zero by 2050 and still grow GDP by an average of 2.4% over that period. That was in an interim report recently delivered to UN Secretary-General Ban Ki-moon plotting

specific measures for the world’s 15 largest economies, including China, India and the US, to cut their emissions quickly and deeply enough to meet an international agreed goal of limiting warming to two degrees above pre-industrial levels.

What we do matters!

The report

found that it’s technically possible for Australia to get almost all of its electricity from renewable sources by 2050 and to offset the rest by storing carbon in soil or planting more trees.

We can do that while GDP grows at 2.4% per annum, but it is interesting that our per capita growth rate is the lowest of the 15, India the highest.

There’s more about Sachs here.

2. Catalyst does sea level rise

It was scary, but could have, should have been scarier.

The program depended heavily on the last interglacial, the Eemian, as an analogue for now. It made the link through temperatures and probably got them a bit wrong. We’ll likely get more than 2°C this century, and the Eemian global average was possibly only 1°C higher than now.

Fundamentally the problem is this. CO2 levels during the Eemian which produced around 9 metres of sea level rise were never above 300 ppm. At 400 ppm, as we are now, the implied sea level rise is more like 20 to 25 metres, played out over the centuries.

Still they could have pointed out just how horrendous a 9 metre rise would be, other than the throwaway comment about most mega cities being displaced. At 9 metres significant chunks disappear from continents as in China:

China_cropped_600

Here’s SE Asia courtesy of the Firetree flood map:

SE Asia_cropped_600

At the end it suggested that we could cope by building sea walls, except that it would be expensive. Sea walls are not going to cope with nine metres, let alone 20.

This Skeptical Science post gives useful information about the Eemian, although it too arguably needs updating. I think scientists are settling on a higher sea level rise for the Eemian than the 5 metres suggested, more like the 9 metres of the Catalyst program. Also at least some parts of Greenland are thought to have been 10°C warmer than now, rather than 5°C.

3. The search for the clean coal holy grail

Radio National’s generally excellent Background Briefing program has turned its guns on a ‘clean coal’ technology called DICE – Direct Injection Carbon Engine. Would you believe, a DICE engine runs on a slurry of finely ground coal and water? One purpose seems to be to make brown coal as emissions efficient as black coal – a pointless exercise in terms of current climate mitigation needs. Inherently significant energy must be spent to get the coal into the required state.

The history seems to be one of shonky technology projects run by shonks, but the CSIRO is now involved and our visionary government is throwing money at the venture.

4. World Energy Investment Outlook 2014

The International Energy Association’s latest report is billed as its first full update since the 2003 World Energy Investment Outlook. It’s been out since 3 June. So far I’ve failed in my ambition to do a separate post, so I’ll just do a brief note here.

This post from the Post Carbon Institute is a packet of joy. It says that the IEA report “should send policy makers screaming and running for the exits” or looking for early retirement. Seems we need a mere $48 trillion in investment through to 2035 to keep things on track. But:

The IEA forecasts that only 15 percent of the needed $48 trillion will go to renewable energy. All the rest is required just to patch up our current oil-coal-gas energy system so that it doesn’t run into the ditch for lack of fuel. But how much investment would be required if climate change were to be seriously addressed? Most estimates look only at electricity (that is, they gloss over the pivotal and problematic transportation sector) and ignore the question of energy returned on energy invested. Even when we artificially simplify the problem this way, $7.2 trillion spread out over twenty years simply doesn’t cut it. One researcher estimates that investments will have to ramp up to $1.5 to $2.5 trillion per year. In effect, the IEA is telling us that we don’t have what it takes to sustain our current energy regime, and we’re not likely to invest enough to switch to a different one.

If you look at the trends cited and ignore misleading explicit price forecasts, the IEA’s implicit message is clear: continued oil price stability looks problematic. And with fossil fuel prices high and volatile, governments will likely find it even more difficult to devote increasingly scarce investment capital toward the development of renewable energy capacity. (Emphasis added)

Climate clippings 100

Kiribati_Fanning Is_478950-3x2-340x227Climate clippings_1751. Climate clippings reaches 100

Generally speaking I don’t rate the number 100 much except that it’s the number after 99 and the number before 101. Which might be just as well because when I was going through all the posts after transporting them (thanks tigtog) from Larvatus Prodeo I found two with the same number. So the 100th edition was actually number 99!

If you like to laugh Graham Readfearn has assembled 11 climate change comedy video clips to celebrate his 50th post on Planet Oz. I can recommend John Oliver and Australians for Coal, for example. There’s a bad language warning on the latter.

Huffpost has 9 Political Cartoons That Put Climate Change In Perspective:

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2. Dust increases Greenland’s ice melt

A ‘normal’ Greenland summer melt is illustrated by the left-hand panel taken at 8 July 2012, when about 40% of the ice sheet was subject to melting.

Figure 8

The right-hand panel shows what happened for about a week thereafter and is not relevant except as a harbinger of things to come.

A new study looks at the increased melting from dust and soot. It found that a relatively minor decrease in the brightness of the ice sheet could cause double the average yearly rate of ice loss seen over the period 1992-2010.

assets-climatecentral-org-images-uploads-news-6_8_14_Brian_GreenlandDirtyIce-350x467

Soot resulting mainly from wildfires in North America and Russia has a greater melting impact than dust as such. However, increased dust is being produced in the Arctic and finding its way to the Greenland ice. Now 150 times as much dust as soot has been found at a site in the north-east.

While this can’t be extrapolated to the rest of the ice sheet, there is concern that Greenland melting could be greater than previously thought. See also Antarctic images for context.

3. Green jobs declining in Australia

Yes green jobs are declining in Australia:

Australia is one of the few places in the world where green jobs are decreasing according to figures released by the International Renewable Energy Agency.

Globally the sector now provides an estimated 6.6 million jobs, an increase of 800,000 from 2013 figures, but in Australia, jobs across solar photovoltaics and solar heating have declined, with up to 22 per cent of jobs lost in PV and 20 per cent in heating, according to Ethical Jobs general manager Michael Cebon.

This is happening:

entirely the result of government policy, both through loss of incentives at the federal level and backpedalling by state governments.

While a structural shift is occurring in the workforce elsewhere, Australia is regressing. The graphic shows the jobs potential of investment in various sectors:

comparison-fossil-and-renewable-380x513

4. Climate change impacts will ‘cost world far more than estimated’

That’s according to Lord Stern. He says that:

the economic models that have been used to calculate the fiscal fallout from climate change are woefully inadequate and severely underestimate the scale of the threat.

That includes those cited by the IPCC. They ignore the science, the full range of risks and simply assume away some of the worst economic impacts.

5. Historians will look back and ask ‘why didn’t they act?’

That’s the question asked by science historian Naomi Oreskes in her

latest book, The Collapse of Western Civilization: A View from the Future, [which] imagines a Chinese scholar in 2393 analysing the slow-motion disintegration of 21st-century democracies as they fail to tackle a growing environmental catastrophe.

It’s not a pretty picture.

By the end of the book, co-written with fellow historian Eric Conway, the Netherlands and Bangladesh are submerged, Australia and Africa are depopulated, and billions have perished in fires, floods, wars and pandemics. “A second dark age had fallen on Western civilisation,” Oreskes writes, “in which denial and self-deception, rooted in an ideological fixation on ‘free’ markets, disabled the world’s powerful nations in the face of tragedy.”

Oreskes and Conway say it’s a worst-case scenario, not a prediction.

One way or another, the game is up, we need to act with vigour and determination.

6. Coal to fuel human progress for decades – Tony Abbott

Our fearless leader has been strutting his stuff on the world stage, ignoring the science and embarrassing us all. He told Texan business leaders that:

we don’t believe in ostracising any particular fuel and we don’t believe in harming economic growth.

“For many decades at least, coal will continue to fuel human progress as an affordable energy source for wealthy and developing countries alike.”

Under the fig leaf of Direct Action anything goes.

Meanwhile Julie Bishop confirms that climate change won’t be high on the G20 agenda.

Once again they are out of tune with the nation. In a recent opinion poll 57% of those polled said the government should take climate change more seriously.

while more than half of respondents felt the federal government was the primary body which should address climate change, there was a negative rating of -18 when people were asked to rank the government’s performance.

This compares to a -1 rating from last year. These rankings are the differential between respondents’ “good” versus’ “poor” response to the government’s performance.

Reminder: Use this thread as an open thread on climate change.

7. Pacific presidents speak out against Australia’s stand on climate change

Out in the Pacific they are not happy with Abbott’s policy stance. The sea is coming up and they are going down. Here’s Fanning Island in Kiribati:

Kiribati_Fanning Is_478950-3x2-340x227

Another way to cook the planet

Around 80 to 85% of coal in the ground cannot be mined by conventional methods. That’s 18 trillion tonnes according to the International Energy Agency’s Clean Coal Centre – enough to supply the world for 1000 years, at current requirements. Fred Pearce in the New Scientist (paywalled) takes a look at efforts to liberate this potential by a process called underground coal gasification (UCG). Apparently that’s enough to add about 10°C to global warming, if the carbon is not sequestered.

The process involves burning the coal in situ underground, bringing the gases thus created to the surface and then burning them in a conventional power station. This image from the British Geological Survey illustrates the process:

USG_Figure_03_001_600

The “Zero emissions power generation” is totally misleading (see below).

Stalin’s engineers and their successors have been doing it to a brown coal seam for 50 years near Angren, a town east of Tashkent in Uzbekistan. Air is piped 300 metres down one well, the gas comes up another. It is cooled, scrubbed of coal dust and compressed on site, then piped across the plain to Angren. Australians bought the operation seven years ago, with a view to scaling up the technology to transform the world’s energy markets.

A cocktail of gases is created when the coal is burned – methane (natural gas), CO2, which can be disposed of safely, carbon monoxide (CO), and hydrogen. There are four ways the gases can be used:

  • Gas to electricity. Methane is burned in a power station.
  • Gas to chemicals. Hydrogen, methane and CO have value as feedstock in the chemicals industry.
  • Gas to liquid. Methane can be liquified to LNG, or CO and hydrogen can be turned into synthetic diesel.
  • Gas to tech. Hydrogen can be used as a transport fuel.

As methane burns it oxidises to CO2 and water. Potentially, it is said, the same infrastructure of pipes can be used to pipe the CO2 from the power station back to the mine and insert it in the place vacated by the burnt coal. Obviously you’d have to double the pipeline for continuous operation. And obviously the process would add to the expense.

A second concern is that chemicals can leak to contaminate groundwater. If the rocks above the seam are impermeable before the process, they may not be after. Fracturing is estimated to occur up to 60 times the width of the seam. In fact fracturing the nearby rocks could release even more gas for use.

USG_cougar-energy_cropped

Australian engineers trialled an adapted process at Chinchilla in Queensland in the 1990s. Within two years UCG was shown to be feasible. But in 2011 benzene and toluene leaked into a nearby borehole in an operation near Kingaroy. Similar problems had emerged in the US, so Qld authorities shut the operation down for investigation. Last July ‘Can do’ Campbell’s mob came up with the idea that you could only operate if you successfully decommissioned a commercial scale operation to show that you could do it. So you had to start an operation, stop it, get your operating ticket, then start up again. Brilliant!

There were three companies involved in Qld – Linc Energy, Carbon Energy and Cougar Energy. They responded by shutting Chinchilla down after more than a decade of successful production, and relocating to China, the US, Argentina, Chile and Indonesia.

There are trials elsewhere, including Canada and South Africa. At Cook Inlet in Alaska and Swan Hills in Alberta, Canada, there are plans to go commercial as early as 2015. In Britain, they reckon 70% of coal has never been mined. Furthermore there is 10 billion tonnes of the stuff under 400 square kilometres in the North Sea. An Office for Unconventional Gas and Oil has been set up with £1 billion seed money to stimulate the industry. Half a dozen start-ups have been spawned. There is interest also in supplying feedstock to energise the flagging chemicals industry in Scotland.

All this momentum is a worry unless in practice ‘clean’ coal turns out to be completely clean. For example in Britain it is said that only 30% of CO2 could be sequestered. There they are throwing £1 billion at the problem.

Remember, for a safe climate we need to reduce the concentration of emissions initially to 350 ppm. Or you can go back and depress yourself by re-reading The game is up.

Our best chance lies in the possibility of renewables becoming cheaper than the fossil alternatives. If we rely on the human race acting rationally in its own longer term self interest our prospects are not good.

Climate clippings 94

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1. CO2 concentrations passing 400 ppm

Each year the atmospheric concentrations measured at Mauna Loa Observatory in Hawaii surge as spring turns into summer. We are now at the point where earlier each year they surge past 400 ppm, this year as early as March. By 2016 they will probably remain permanently above 400 ppm.

Dr Pep Canadell says crossing the 400 parts per million threshold will make it more difficult and expensive to limit climate change to two degrees.

The second part of this century we need to reduce emissions to zero and on top of it, to be removing carbon dioxide from the atmosphere so that by the end of 2100, we can stay stable under two degrees.

Canadell is head of the Global Carbon Project at the CSIRO.

2. Bio-energy with Carbon Capture & Storage

Speaking of sucking CO2 out of the atmosphere, bio-CCS is the new buzz word (I’ve also seen BECCS). The Climate Institute has released a report by Jacobs SKM Moving Below Zero: Understanding Bio-energy with Carbon Capture & Storage . Their modelling finds that

bio-energy with carbon capture and storage, or bio-CCS using food wastes, sustainable forest biomass, or crop residues, has the potential to contribute significantly to climate change efforts in Australia.

This process could remove and displace about 63 million tonnes of CO2 equivalent (MtCO2-e) annually by 2050, around 1.5 times current emissions from all cars in Australia. As well it would generate 12% of the country’s electricity.

Globally the process could remove up to 10 billion tonnes of pollution per year by 2050, according to the International Energy Agency.

The report may be downloaded from this page (scroll down). Go here for an interview with Malte Meinshausen.

3. Are coal miners responsible for greenhouse gas emissions?

No, said the Queensland Land Court in its judgement on the giant Alpha coal mine project which would dig up about 30 million tonnes of coal a year from the state’s Galilee Basin.

That’s the central fact in Graham Readfearn’s interesting story about what’s un-Australian.

Burning Alpha coal would generate 1.8 billion tonnes of CO2 over 30 years. That’s more than three times Australia’s annual emissions.

4. Abbott calls climate concerns “clutter”

In the lead up to the G20 meeting in Sydney in February, Abbott said

he didn’t want to “clutter up the G20 agenda with every worthy and important cause, because if we do, we will squander the opportunity to make a difference in the vital area of economic growth.”

The post, correctly, I think, sees Abbott as rolling back environmental and climate initiatives as hostile to economic growth, relying for economic impetus on the fossil fuel industry.

Heather Zichal, until recently President Obama’s lead climate and energy adviser, thinks otherwise:

Zichal suggests that focusing on economic productivity could be the sweet spot that Australia could use to balance climate concerns and economic growth goals. Reducing pollution and emissions from power plants and imposing strong energy efficiency measures on transport and infrastructure can boost energy productivity, save money, create jobs, and reduce emissions. “Ultimately, across all economic sectors, energy productivity is the most reliable, cleanest, and cheapest resource,” Zichal said.

Countries have to front up with their revised mitigation plans by April next year ahead of the Paris UNFCCC conference in December, hence leaving climate off the G20 agenda is simply not an option. Abbott has been told, by Christine Lagarde, managing director of the International Monetary Fund, and other powerful players.

One wonders what we will front up with next April. I predict nothing that would make a difference. We’ll see what others are doing and then do as little as possible.

5. Direst Action is a figleaf

Clive Palmer has spotted the figleaf and plans to pluck it away, says Ben Eltham. The Direct Action funding may be part of the budget, which Labor will not vote down. The Government needs no further legislation to enable expenditure, but Abbott can’t get rid of the dreaded carbon ‘tax’ without legislation. When he comes to negotiate that with PUP Direct Action will be on the table.

Eltham is right on the demographics:

While this [having no climate policy in place] may not unduly trouble the climate sceptics on the Coalition backbench, it also removes the chief utility of Direct Action, which is political, rather than environmental. Direct Action has always been used by the Coalition as a handy tool to deflect unwelcome scrutiny of its profoundly anti-environment attitudes. Without it, the Government will find it increasingly difficult to defend itself against charges of destroying the planet.

In the last Nielsen poll the 55+ group was the only one where Abbott had a clear lead, with LNP/Labor/Green at 49/33/10. This should be causing concern for the future of the conservative parties. For the young it was 32/36/26.

6. Direct Action is not scalable

Lenore Taylor points out that while Direct Action may or may not achieve 5% reductions in emissions by 2020, (most experts say, no) the policy is not scalable when the world gets a bit more serious about climate change mitigation.

according to the available modelling, even if Australia spent $88bn from 2014 to 2050 on Direct Action-type policies, emissions would still rise by around 45%. Most economists conclude that big emissions reductions under Direct Action are just not possible.

7. Green groups to use legal strategies

Given the above and the LNP’s farcical attitude to the Renewal Energy Target Review, green groups see lobbying as a waste of time and are increasingly planning legal challenges.

The Australian Conservation Foundation will be targeting voters in marginal electorates to encourage MPs to take climate change seriously. The aim is to change the current race to the bottom to a race to the top.

Reminder: Use this thread as an open thread on climate change.

The end of coal?

This post started out as four related items in Climate clippings. When a fifth showed up I decided to extract them and put them in a separate post. Hence it is a collection of opinions and perspectives rather than an analysis of the future of coal as such. Still, a message seems to emerge.

BHP calls for carbon pricing

Believe it or not Andrew Mackenzie, CEO of BHP Billiton, has called for a price to be put on greenhouse gas emissions to address the threat of global warming.

Talking in Houston Texas on the future of fossil fuels and carbon emissions Andrew Mackenzie said BHP needs to think carefully about controlling its carbon emissions. He wants BHP to lead the way. BHP is the world’s largest mining company and the third biggest company in the world.

Beyond coal the company is also a major player in shale gas in the USA, investing a cool $US20 billion in 2012.

Mackenzie was on message about ‘clean coal’, spruiking the virtues of carbon capture and storage (CCS).

Rio weighs in

Rio Tinto’s head of energy, Harry Kenyon-Slaney, also weighed in saying “Idealistic discussions” about climate change should be abandoned and Australians should recognise that coal will remain an important energy source for decades.

Coal will continue to “do the lion’s share of heavy lifting” to meet energy demand, he says.

Rio has invested $100 million in carbon capture and storage.

Martin Ferguson, now an adviser to the Australian Petroleum Production & Exploration Association:

stepped up criticism of the Coalition government’s emissions-reductions policies and called for the watering down of the renewable energy target, which he said was undermining the national electricity market.

Tristan Edis comments

Tristan Edis comments on Rio Tinto’s clean coal idealism.

He reckons CCS would be great if you could also retrofit it to existing coal-fired power stations, implement it at large scale and a reasonable cost and start doing it by, say, 2025.

The Australian Coal Association instituted an industry-funded initiative to progress zero-emission coal with a levy and created ACA Low Emissions Technology Ltd (ACALET) to undertake initiatives. Unfortunately from 2012-13 the requirement to pay the levy was suspended and ACALET is now concentrating on promoting the use of coal in Australia and overseas.

Edis reports that Industry Minister Ian Macfarlane seems to be willing to acknowledge that carbon capture and storage is a pipedream.

One senior Liberal referred to it as ‘vaporware’ (new computer software promised by companies to be delivered in the future that never eventuates but scares off competing software development).

The end of coal?

Paul Gilding has called the end of coal and the dawn of renewables, especially solar.

He believes the fossil fuel industry live in a delusionary analytical bubble, convinced of their own immortality. They are about to be swept away. Markets can be brutal.

The top 20 European utilities have lost $600 billion in value over the past 5 years.

Tesla, presumably because it makes electric vehicles (see also below), is now worth more than half GM although GM makes 300 times as many cars.

HSBC’s Global Solar index rose 65% last year and is already up 23% in 2014.

Underground coal gasification

Trials are underway or planned in diverse parts of the world in burning in situ coal that can’t be mined, according to an article by Fred Pearce in the New Scientist (paywalled). The process is underground coal gasification (UCG).

The potential is enormous, with enough coal available to supply the world with energy for 1000 years. For example, 70% of the coal in the UK has never been mined. One company has a licence to prospect for UCG sites beneath more than 400 square kilometres of the North Sea.

The attraction of UCG is not just power production. The process produces methane, carbon monoxide, hydrogen as well as CO2. The Brits see potential to use these chemicals as feedstock to revitalize their industrial chemicals industry. The article lists the following uses:

  • Gas to electricity Power stations can burn methane to produce electricity for the grid
  • Gas to chemicals Hydrogen, methane and CO all have value as feedstock for the chemicals industry
  • Gas to liquid Methane can be liquefied (LNG) for storage or transport, or the CO and hydrogen converted through the Fischer-Tropsch process to synthetic diesel fuel for vehicles
  • Gas to tech Hydrogen can provide an alternative transport fuel

CO2 can be reinjected into the void created by the burnt coal.

The article refers to a 2007 MIT study which found that commercial CCS was unlikely before 2030. Undaunted Myles Allen, an Oxford University climate scientist, reckons that CCS is the “only practical way forward”.

Christiana Figueres is hopeful

Christiana Figueres, Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC), points to 60 countries with 500 pieces of climate legislation, and is confident that an international climate change agreement will be delivered on time in 2015. She looks forward within 20 years to the time where everything new we do will be carbon neutral.

She does see a need for research into energy storage – batteries – and into CCS.

It is only with marketable CCS that we will be able to use the fossil fuels that we need. Storage and CCS would be my top two choices for technology investment.

If so someone, for example BHP and Rio, get cracking.

Meanwhile…

Meanwhile

Investment bank Morgan Stanley says it has been overwhelmed by the response to its recent analysis which suggested that the falling costs of both solar modules and battery storage presented a potential tipping point that would encourage huge numbers of homeowners and businesses in the US to go off grid.

And Tesla is building a $5 billion ‘gigafactory’ for battery production, then providing an

emergency power service by monitoring the power levels in home batteries and delivering replacement batteries in the event home batteries run out of power.

Someone should tell Andrew Mackenzie and Harry Kenyon-Slaney they’ll need to shake a leg with CCS. Schumpeter’s creative destruction seems to be at work in the energy industry.

Update: Murray Energy, the largest independent coal producer in the US, is suing the EPA for not taking into account job losses when formulating emissions regulations.

The folly of Abbot point and Galilee Basin

This post was written back when the issues of Abbot Point expansion and the dumping of waste in the Great Barrier Reef Marine Park area were current. Now the Queensland Land Court has recommended the State Government reject the multi-billion dollar GVK-Hancock Alpha Coal project in the Galilee Basin. The decision is a non-binding recommendation to the State Government. If they go ahead, conditions have been suggested.

Impact on groundwater was the main concern of local landowners.

It looks to me as though this decision will not in the end impede the construction of the mine. Nevertheless there are concerns also about the economic viability of both the coal mines and the port expansion, as I discuss in the post.

Abbot Point and the Marine Park

Recently the Abbot Point port expansion proposal has caused a great deal of controversy because of the proposed dumping of 3 million tonnes of sludge within the Great Barrier Reef Marine Park area. The contention is that the Great Barrier Reef Marine Park Authority (GBRMPA) initially found against the dumping. In January this year GBRMPA approved the dumping.

Professor Russell Reichelt, chair and chief executive of the Great Barrier Reef Marine Park Authority, makes clear at The Conversation that the material to be dumped is not toxic and while the Authority would prefer placing dredge material on land, “providing it does not mean transferring environmental impact to sensitive wetlands connected to the reef ecosystem”, they are comfortable with the proposed plans.

The material to be dumped is about 60% sand and 40% silt and clay, similar to what you would see if you dug up the site where the material is to be relocated. The target area is a defined 4 square kilometre site free of hard corals, seagrass beds and other sensitive habitats, about 40 kilometres from the nearest offshore reef.

The Marine Park itself is about the size of Italy:

Marine Park_ jdpx6f2d-1393566267_600

In a comprehensive discussion of the Abbot Point expansion and the Galilee Basin Radio National’s Background Briefing implies that the Abbot Point expansion will not be supervised. The story is told of how in the previous expansion contractor John Holland effectively ignored environmental regulations and was fined a token $195,000 as a result. Professor Reichelt specifies what is to happen this time:

we will have a full-time staff member from GBRMPA located at the port to oversee and enforce compliance during dredge disposal operations. This supervisor has the power to stop, suspend or modify works to ensure conditions are met.

In addition, an independent technical advice panel and an independent management response group will be formed. Membership of both these bodies will need the approval of GBRMPA.

Importantly, the management response group will include expert scientists as well as representatives from the tourism and fishing industries, and conservation groups. Together, GBRMPA and those other independent scrutineers will be overseeing the disposal, and will have the final say — not North Queensland Bulk Ports, which operates Abbot Point, or the coal companies that use the port.

This overview is worth quoting:

Our recent assessments show the dominant risks to the health of the reef are the effects of climate change, excess sediment and nutrient run-off (such as from widespread floods), outbreaks of coral-eating starfish, extreme weather, and some types of fishing.

Coastal development such as ports are assessed as significant but local in their effects.

The effects of climate change.

Watching Greens Senator Larissa Waters debate the Abbot Point expansion with the relevant Qld government minister was like being in an alternate reality. There was no mention of the climate effects of the coal to be exported, no mention of the warming and ocean acidification impact on the reef.

No mention of the impact of the monster mines on the local environment, the use of local aquifers, of the possibility of toxic runoff into the river systems and flood plains the the southwest, the Channel Country and Lake Eyre. As I said last year in Galilee Basin coal: a vision splendid or a kind of madness?:

Water is in fact a considerable issue, as the area has only 400 to 500mm rainfall pa, seasonal and highly variable. Artesian aquifers and water from coal seam gas are being considered. Pastoralists are naturally worried as are environmentalists. The area can be subject to heavy rains which ends up with a toxic brew from open-cut mines being pumped into water courses. The basin drains towards Lake Eyre, (now officially known as Kati Thanda–Lake Eyre).

This image is from an organic beef producer and their enthusiasm has expanded the area to include the whole Simpson’s Desert, but it gives an idea of the part of the country we are talking about:

Channel-Country

Moreover the railway line or lines will cut across grazing lands on expansive flood plains, making water movement highly problematic with heavy rain.

Economics of the mining projects

Mercifully both projects look wildly uneconomic. The Background Briefing story quotes a UBS commodities analyst who says that for the Galilee Basin to be profitable the coal price would have to be around AU$110 per tonne. Their long term estimate is $80 per tonne. The program saw India rather than China as being the most prospective customer. India is running out of coal that can be mined, but the current price there is about $23 per tonne (I presume US$). They need electricity for hundreds of millions who rely on wood or cow dung for cooking and heating, but not at any price.

John Quiggin has two posts about companies pulling out and the shaky economics of both projects:

Following a similar announcement last week by Lend Lease, and earlier announcements by BHP Billiton annd Rio Tinto, mining company Anglo American has withdrawn its proposal to take part in the expansion of the Abbot Point coal terminal. That leaves only two proposals, both from Indian companies owned by billionaire entrepreneurs reminiscent of Bond, Skase and other Australian heroes of the 1980s. Both Adani and GVK are heavily indebted conglomerates of the type that invariably emerge when money is cheap, and mostly collapse when the tap is turned off.

It’s not surprising that these companies have not yet abandoned their bids. Doing so would involve booking huge losses on their mining prospects in the Galilee Basin. But, it’s hard to believe anyone is going to lend them the billions required, not just for the port expansion, but for a 500km rail line and the mine itself. The price of coal is well below the level required to cover the costs of extraction and transport, let alone to provide a return on capital. And if Adani and GKV don’t build the rail lines, the development of the entire Basin will grind to a halt.

Here’s hoping!

Update: Mark Colvin discusses the economics of the mine with the ABC’s business editor Ian Verrender, confirming concerns.

Galilee Basin coal: a vision splendid or a kind of madness?

This map gives some idea of the geographic positioning of the vast Galilee Basin, one of the greatest untapped coal reserves in the world.

Galilee basin18

This map locates it in relation to some well-known towns.

Last year we were told that nine coal mines are proposed. The Alpha proposal and Kevin’s Corner (GVK and Hancock Coal) could each produce 30 million tonnes per annum for export, Palmer’s China First hopes for 40 million tonnes. The Carmichael deposit (Adani) at 10 billion tonnes is the world’s largest coal deposit. I think the plan there is for another 30 million tonne mine.

Greame Readfearn has calculated that the Alpha and Kevin’s corner projects alone will produce 3.7 billion tonnes of CO2-e when burned. He compares that to the UK which emitted 571.6 Mt of CO2-e last year. He also outlines some of the difficulties being encountered, including contestation in the land Court.

Greenpeace calculated that if the Alpha coal project was a country, its annual emissions would be higher than the likes of Austria, Columbia and Qatar.

Last week Lateline highlighted the problems encountered by Adani, mainly high debt. A report by the Institute for Energy Economics and Financial Analysis commissioned by Greenpeace found the project “uncommercial” and found that Adani Power was losing money on its other operations. Continue reading Galilee Basin coal: a vision splendid or a kind of madness?

Climate clippings 87

Climate clippings_175These posts are intended to share information and ideas about climate change and hence act as a roundtable. Again, I do not want to spend time in comments rehashing whether human activity causes climate change.

This edition picks up the theme of activism mentioned in Climate change: reconnecting politics with reality.

1. Blue sky

After the last election some friends of my younger brother, feeling blue, decided to turn blue into an optimistic colour, and invented the Blue Sky movement. To join all you have to do is ‘like’ the Facebook site put something blue on your front footpath visible from the road, take a photo and post it on the site. Yes, and take the Blue Sky Pledge, which includes reducing your own emissions, displaying blue for 12 months, and encouraging others to join.

Here’s one example:

Blue Sky_1395958_234410770055917_951721907_n
I notice that people have been using the site to share links.

If you click on “Community” or “About” at the head of the Blue Sky FB page and then click “more” you’ll get the full Blue Sky spiel.

2. Go Getup!

Ben Eltham thinks GetUp! is currently Tony Abbott’s most dangerous opponent. Continue reading Climate clippings 87

NSW coal generation under pressure

Well it is if the country stays on its present policy trajectory.

Sophie Vorrath at RenewEconomy comments on the latest pitt&sherry electricity emissions update (April data). Back in 1998 coal used to supply 90% of NSW’s National Electricity Market (NEM) electricity. Now this has fallen to less than 75%. One factor is that demand is falling more in NSW than in other states, as shown in these graphs:

Figure 1: Channges in electricity demand by state
Changes_electricity by state_cropped_580 Continue reading NSW coal generation under pressure

Climate clippings 71

1. State of the climate 2012

BOM amd the CSIRO have produced the State of the Climate – 2012 report. BOM has a handy summary summary and link to the brochure. The CSIRO site has some added interviews. I’ve extracted two images. First is the relentless increase in ocean heat content:

Ocean heat content

Second is the rainfall pattern for April to September from 1997 to 2011:

Rainfall April to September, 1997-2011

According to the report we can expect the same only more so in the future.

See also The Conversation. Continue reading Climate clippings 71

Climate clippings 68

1. Planning for storm surges

It seems the trickiest bit of planning for sea level rise is dealing with the increased risk of storm surges. Scientists have been taking a look at New York City.

The biggest they know about was a 3.2 metre surge in 1821, a one in 500 year event. Most buildings have a 60 to 120-year usable lifespan. With a 3-foot rise a once a century surge of 5.7 feet above tide level could occur every three to 20 years. Continue reading Climate clippings 68