Dude, Where’s My Electric Mobility?

The tipping point between electric vehicles and gasoline power is still far away in the distance, but the changeover has been accelerating with lightening speed over the past couple of years. The raw sales figures only tell a small part of the tale. What really matters is the way that auto manufacturers have begun rolling out integrated EV systems that go beyond promoting vehicle ownership as a form of self expression, to recast the car as an intimate member of a mobile household.

For an example of that dynamic, take a look at BMW, which is rolling out the new BMW i plug-in series later this year and has just announced a package deal with the German solar company SOLARWATT.

BMW i series EVs will get home solar power

SOLARWATT carport courtesy of BMW.

The BMW i Electric Mobility Concept

The two vehicles involved in the solar partnership include the all-electric BMW i3 and the BMW i8 plug-in hybrid. Earlier this year, BMW described the i series this way:

“BMW i stands for visionary vehicles and mobility services, inspirational design and a new interpretation of premium that is strongly defined by sustainability…With its tailor-made vehicle concepts, sustainability across the entire value chain and complementary mobility services, BMW i redefines the concept of individual mobility.”

That’s good as far as it goes, but two key angles are missing. One is access to sustainable fuel, and the other is the fully integrated EV lifestyle model. In other words, conventional auto marketing has focused on your identity as a driver, while EVs offer the potential to identify your lifestyle while it’s parked in your garage.

BMW took a step in both directions last year by partnering with the German company Naturstrom AG to provide BMW i buyers with a renewable energy package for EV charging.

That still leaves the household intimacy angle, which BMW plans to address through its 360° Electric home charging station concept in partnership with Schneider Electric and The Mobility House, a specialist in charging and battery management solutions.

The idea is to take full advantage of the fact that if through EV ownership a person’s home is not just their castle but a gas station as well, it better be a nice-looking, worry free gas station with the same kind of seamless setup, maintenance and repair routine that you expect from any high-end household appliance dealer.

The big move came just last week, when BMW announced a partnership between BMW i and SOLARWATT, the German solar company.

Under the agreement, BMW i buyers can also buy the “attractively designed” SOLARWATT carport photovoltaic system, featuring the BMW i Wallbox home charging station.

That brings energy harvesting right into the castle keep. Rather than purchasing renewable energy through the grid mix, BMW i owners can get a direct solar power charge through the carport energy management system, with some left over for other household appliances.

The SOLARWATT system also includes a smart interface that enables homeowners to exercise energy conservation strategies that cut their reliance on grid-supplied electricity.

Ford MyEnergi Lifestyle

That brings us right around to a competing system under way at Ford Motor Company, the MyEnergi Lifestyle package.

When we first took note of MyEnergi earlier this year, Ford seemed to be reaching for a more nuts-and-bolts market than BMW’s sustainability pitch.

Basically, MyEnergi asks EV buyers to think of their car as the largest electrical appliance they will ever own, one that integrates seamlessly with every other appliance in the house whether it’s out on the road or shunted away in the garage.

The nexus of that integration, according to Ford’s Global Director of Vehicle Infrastructure Mike Tinksey, is the fact that renewable energy enables cars and homes to rely on the same fuel for the first time in automotive history.

With that in mind, Ford teamed with Eaton, SunPower, Whirlpool, Infineon, and smart thermostat innovator Nest Labs to develop a fully mobile, interactive system with a proprietary database for Ford’s new plug-in C-Max Energi series and other Ford EVs.

In communication with smart, energy efficient household appliances, the system provides Ford EV owners with the ability to micro-manage their energy consumption to take full advantage of their local utility’s off-peak rates, as well as any on site solar power they’re harvesting. That saves money and it also cuts carbon to the extent that the grid mix typically includes more renewable energy during off-peak hours.

The mobile connectivity of the system pushes micro-management to another level by enabling EV owners to make on-the-fly adjustments to the system as needed  (brownout alerts being one example), whether they’re home or not.


// ]]>

Taking the whole home-EV nexus to the next logical step, just a couple of weeks ago the mega-builder KB home launched a new iteration of its ZeroHouse 2.0 production house in San Marcos, California, which comes complete with a MyEnergi Lifestyle package from Ford.

KB’s marketing pitch dovetails with Ford’s, in that it emphasizes how the all-electric home/car ownership package can be just as affordable as conventional ownership.

Getting back to our original point, it’s clear enough that EV technology has enabled auto manufacturers to enter new markets and form new partnerships at a relatively breakneck pace, leading to a whole new generation of innovation.

In that regard, as much as cars and gasoline have been joined at the hip for the past century, the petroleum industry is quickly becoming a liability to the automotive sector, and it’s only a matter of time before the tipping point arrives.

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Tina Casey (951 Posts)

Tina Casey specializes in military and corporate sustainability, advanced technology, emerging materials, biofuels, and water and wastewater issues. Tina’s articles are reposted frequently on Reuters, Scientific American, and many other sites. You can also follow her on Twitter @TinaMCasey and Google+.


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Tesla’s Commitment To Being Great

elon-muskIt’s a real pleasure listening to Elon Musk talk. There’s a humility there, a strong sense of responsibility, a desire to do what is right. There is also a clear faith that doing what is right will pay off in the end in business terms, as well.

In the latest Tesla conference call (Friday’s call), Elon’s focus was on the fact that Tesla’s warranty would cover everything that might happen to a Model S owner’s car… beyond a physical accident or someone blowtorching the battery or “taking it out for shooting practice.”

Furthermore, as we reported previously, Tesla will now supply owners with a fully loaded Model S (probably better than their own car) whenever they take their car in.

Additionally, he noted the valet service the company is now offering â€" that the company will pick an owner up and drop him off when they bring the car in for service.

tesla model s

Also, correcting a “mistake” Tesla made, owners are not required to bring their cars in for an annual checkup in order to maintain their warranty. (Originally, this was a requirement.) As stated above, he put a lot of emphasis on the point that the warranty covers everything because he doesn’t want customers to worry about anything going wrong, or even doing anything wrong â€" of course, special emphasis was placed on the battery in this portion of the call. Elon said several times that an owner doesn’t need to read the manual, the user’s guide. He noted that any product that needs a user’s guide is a broken product.

There was a lot of questioning about whether or not these announcements were all in response to something, to unhappy customers or customer surveys. That didn’t seem to be the case, according to Musk â€" the main impetus was simply that Tesla thought about its service offerings from the customer’s perspective, and tried to deliver what any customer would want or expect. Elon noted repeatedly that the company didn’t want to just offer a good or okay service â€" it wanted to offer a great service. He wants everything to company offers to be great.



All the same policies will also apply with the Model X. However, for the next model Tesla plans to offer (which should be coming by 2017), Musk said that the company may need to unbundle some of these services, since the goal will be offering a truly affordable, mass market car.

All in all, it seems to me that Musk, and Tesla as a whole, aim to simply offer the best product and services they can.

Oh yeah, in addition to all of the above, Musk said that contrary to how automobile companies run their service centers (which he says is simply “wrong,” bad), the directive at all of Tesla’s service centers is to not overcharge â€" to not make a loss, but to also not make a profit. Auto companies are notorious for overcharging, and Elon doesn’t want Tesla to fall into that boat. Naturally, he thinks that this policy will help the company in the long run, will generate more return customers. When he was talking about that topic, I think one could see as clearly as ever that Elon doesn’t think as a businessman and then as a human and then try to integrate the two â€" he thinks as a human who is a businessman, in an integrated way. In my opinion, at least, his first goal seems to be servicing humanity, and his reasoning afterwards leads him to believe that his decisions also make good business sense. If more companies were run by such people, we’d have a much more efficient and socially beneficial marketplace.

This article was originally published on EV Obsession.

Zachary Shahan (2249 Posts)

If you couldn't guess, I spend most of my time on CleanTechnica and Planetsave. I'm the director/editor of both sites and am a little obsessed with them and the topics they cover. You can also find my work on Scientific American, Reuters, Change.org, most of the sites in the Important Media network, & many other places. For more, or to connect, go to: zacharyshahan.com


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High-Concentration Photovoltaic Thermal System From IBM Promises 80% Efficiency, Potable Water, And Air Conditioning

This article was originally published on Solar Love.

How does a cost-competitive photovoltaic system that is able to concentrate sunlight 2000 times and then capture 80% of the concentrated energy sound? Pretty good, right? Such a system is currently being developed by researchers at IBM Research, Airlight Energy, ETH Zurich, and Interstate University of Applied Sciences Buchs NTB, after winning a three-year $2.4 million grant from the Swiss Commission for Technology and Innovation.

Image Credit: © IBM

Image Credit: © IBM

And in addition to generating electricity, the system can itself desalinate water and provide air-conditioning, useful features for the sunny and remote regions that the system is designed for.

An economical High Concentration Photovoltaic Thermal (HCPVT) system, that in addition to supplying electricity can desalinate water and provide air conditioning, is the complete package as far as many regions of the world are concerned.

The prototype system makes use of a large parabolic dish, composed of a number of mirror facets, which are coordinated to a sun tracking system. The system automatically repositions itself to the optimum angle for power generation. The sunlight that hits the mirrors is reflected off of them onto a number of microchannel-liquid cooled receivers with triple junction photovoltaic chips. Every one of these 1×1 centimeter chips “can convert 200-250 watts, on average, over a typical eight hour day in a sunny region.” And there are hundreds of these chips in the design, providing a total of about 25 kilowatts of electrical power.



The press release notes:

The photovoltaic chips are mounted on micro-structured layers that pipe liquid coolants within a few tens of micrometers off the chip to absorb the heat and draw it away 10 times more effective than with passive air cooling. The coolant maintains the chips almost at the same temperature for a solar concentration of 2,000 times and can keep them at safe temperatures up to a solar concentration of 5,000 times.

The direct cooling solution with very small pumping power is inspired by the hierarchical branched blood supply system of the human body and has been already tested by IBM scientists in high performance computers, including Aquasar. An initial demonstrator of the multi-chip receiver was developed in a previous collaboration between IBM and the Egypt Nanotechnology Research Center.

“We plan to use triple-junction photovoltaic cells on a micro-channel cooled module which can directly convert more than 30 percent of collected solar radiation into electrical energy and allow for the efficient recovery of an additional 50 percent waste heat,” said Bruno Michel , manager, advanced thermal packaging at IBM Research. “We believe that we can achieve this with a very practical design that is made of lightweight and high strength concrete, which is used in bridges, and primary optics composed of inexpensive pneumatic mirrors â€" it’s frugal innovation, but builds on decades of experience in microtechnology.

By utilizing such a high concentration of sunlight, and the rather low cost of the design, the researchers think that they can realize a cost per aperture area under $250 per square meter â€" that is roughly 3 times lower than in similar systems. According to them, “the levelized cost of energy will be less than 10 cents per kilowatt hour (KWh). For comparison, feed in tariffs for electrical energy in Germany are currently still larger than 25 cents per KWh and production cost at coal power stations are around 5-10 cents per KWh.”

One of the innovations of the new system is its collection and repurposing of the “waste heat” generated by solar thermal. By utilizing the heat instead of simply allowing it to dissipate, it becomes possible to cheaply desalinate water and provide cooling via a thermal-driven adsorption chiller, while also solving the overheating problems of solar chips.

In order to efficiently capture the waste heat, the researchers made use of an advanced technology that was already developed and in use, the water-cooling systems for very high-performance computers such as Aquasar and SuperMUC. While that heat is simply reused to provide space heating for the facilities, the captured heat in this instance will be used to heat salty water that is then distiller via vaporization. The researchers say that the system could provide up to “30-40 liters of drinkable water per square meter of receiver area per day, while still generating electricity with a more than 25 percent yield or two kilowatt hours per day.” So with a large array of these systems it would be very possible to provide enough water for a small city/town.

The system also possesses the ability to provide air conditioning, via a thermal driven adsorption chiller. “An adsorption chiller is a device that converts heat into cooling via a thermal cycle applied to an absorber made from silica gel, for example. Adsorption chillers, with water as working fluid, can replace compression chillers, which stress electrical grids in hot climates and contain working fluids that are harmful to the ozone layer.”

Researchers are currently testing a prototype of the HCPVT system at IBM Research â€" Zurich.

Nathan (333 Posts)

For the fate of the sons of men and the fate of beasts is the same; as one dies, so dies the other. They all have the same breath, and man has no advantage over the beasts; for all is vanity. - Ecclesiastes 3:19


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Issa No Longer Into ‘Sperm-Shaped’ Electric Car He Pushed For?

This article originally appeared on Think Progress.
By Ryan Koronowski

Aptera1In a contentious hearing yesterday, the House GOP members of the House Oversight Committee aggressively questioned Fisker Automotive executives and an Energy Department staffer about a loan Fisker received from the Energy Department.

The attacks were reminiscent of those made in hearings on Solyndra and were more of a reflection of the committee’s hyperpartisan agenda than any real oversight duty. It also suggested some hypocrisy as GOP lawmakers attacked the Energy Department for “picking winners and losers” in a loan program that they themselves had sought to exploit for their own “winners.”

Fisker received the $529 million loan through the Advanced Technology Vehicles Manufacturing Loan Program (ATVM), which began under President Bush. In fact in 2008, the Bush Administration urged Fisker to apply for a loan. The company raised more than $1 billion in outside financing. Fisker had received $192 million of the federal loan when the Department of Energy suspended the loan in June 2011. Since then, the government seized $21 million back from Fisker as a partial loan repayment. For context, the larger Energy Department clean energy loan program has leveraged more than $55 billion in total economic investment in 33 projects.

Who is to blame for this loss? Fisker met the conditions of the contract when it was made, and so the Energy Department had to follow the contract’s terms. If bankers could foreclose on a mortgage just because they heard the homeowner got a bad employment review, most would be outraged. As long as the homeowner met the terms of the loan, the bank is not allowed to foreclose. Risk exists in the market.

DoE invested in fast-growing electric car company Tesla Motors (as well as Ford and Nissan North America). Tesla is paying back its loan early, employs nearly 3000 workers, recently turned a profit, and its stock price recently hit an all-time high. Though it is possible that they lost money on Fisker, they helped to create a successful new company, and strengthen two others.

At the hearing Rep. Darrell Issa, the chairman of the full committee, made an extended appearance at this subcommittee hearing to lambaste Henrik Fisker (the company’s former chairman), Bernhard Koehler (Fisker’s COO), and Nicholas Whitcombe from the Energy Department’s Loan Program Office. Issa was joined by Rep. Jim Jordan and other Republican members who each attacked the program as an example of centralized planning, crony capitalism, and a reason why the government should not be getting into the venture capital game.

In fact, as CAP has reported, many GOP critics of the loan program have themselves requested money for their own favorite projects. Rep. Jordan, who attacked the Department of Energy for picking winners and losers himself requested money for a company’s proposed project in his district called Global Energy.

Issa himself acknowledged one thing during the hearing that may have slipped by most observers: He tried, and failed, to get a loan guarantee for a company called Aptera Motors. Based in Issa’s district, Aptera had designed a three-wheeled electric car. The company failed and has since been purchased by a Chinese-American partnership, but there may have been more fundamental issues with the company’s business plan as Wired reported in 2011:

Southern California electric vehicle startup Aptera Motors is out of time, out of money and out of luck. It announced today that it is shutting its doors, liquidating its assets and laying off its staff…. The truth is, Aptera always faced long odds and has been in trouble for at least two years. The audience for a sperm-shaped, three-wheeled, electric two-seater was never anything but small.

Design issues aside, when Issa was flacking it, Aptera had other concerns. Initially, three-wheeled cars were ineligible for DoE loans. But Rep. Issa and Rep. Brian Bilbray got the law changed so that the car would be eligible. The company also received funding from one of Issa’s campaign donors, and the firm’s CFO paid a $40,000 fine to the SEC for an accounting fraud charge from her time working at Delphi. All of this did not stop Issa from sending a letter to Energy Secretary Chu requesting a loan (reported to be $150 million) for the company through the ATVM loan program.

Issa has complained about delays in the loan guarantee program, but with funding requests like this to parse through, a rigorous process is an asset to taxpayers. To date, Issa’s Oversight Committee has not held a hearing to investigate congressional support for projects such as these.


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Progress Projected for Renewable Energy, EV Industry

renewable energy progressDespite the controversy that surrounds the industry’s long-term effectiveness, the evidence continues to pile up in defense of renewable energies in terms of energy generation and the automotive industry.

Bloomberg New Energy Finance (BNEF) released a report this week projecting future trends of the energy industry from now through 2030.  In their words, BNEF defined three different scenarios â€" ‘Barrier Busting,’ ‘Traditional Territory,’ and the ‘New Normal’ â€" according to their “Global Energy and Emissions Model, which integrates all of the main determinants of the energy future, including economic prosperity, global and regional demand growth, the evolution of technology costs, likely developments in policies to combat climate change and trends in fossil fuel markets.”

In the report, BNEF believes that the ‘New Normal’ scenario is the most likely of the three, which projects  a system that more than triples the current investment in renewable energy capacity to $630bn (in nominal terms) for 2030, compared to the amount built last year.  In addition, biofuel production would also more than double, from 120bn liters currently, to 370bn liters in 2030.

But perhaps the most telling (and easiest to explain) prediction from the ‘New Normal’ model forecasts that approximately 70% of all new global power generation from now until 2030 would be created through renewable energy, compared to only 25% being created from the oil, coal, and gas industries.  That would result in half of all global electric capacity being renewable, which is a sizable jump from the 28 percent mark achieved last year.

Guy Turner, BNEF chief economist believes, “it’s a strong forecast, but it’s believable… [half of all global capacity] represents compound annual growth of 6.7 percent, and many industries have grown faster than that at this stage of their development.”

For a brief look at each of the three projections, here is a graphic provided by Cleantechnica from the report -

renewables

Electric Vehicle News

In other renewable energy news, Navigant Research also released a report last week summarizing the rise of electric vehicle (EV) sales and production in 2012 and how they expect the trend to continue throughout the remainder of the decade.  Although the press release for the report admits that the increased sales figures have not lived up to expectations, they illustrate considerable progress within the industry.  Navigant estimates plug-in EV sector growth upwards of 40% between 2012 and 2020, compared to 2% for the remainder of the car industry.  Granted, the market share of electric vehicles is a small piece of the auto industry, but the contrast between 40% and 2% market growth is notable.  As a whole, the report cites rising gas prices and government assistance in swaying interest over the next 7 years.

Dave Hurst, principal research analyst with Navigant, concurs with the findings in the study, “The average price of fuel for conventional vehicles will likely continue to rise through the remainder of this decade, driving demand for electric vehicles.  Government policy, in terms of purchase incentives, emissions regulations, fuel taxes, and fuel economy rules, will also play a strong role in the expansion of the EV market.”

Technological advances, especially with improvements in battery storage and charge capacity, will also play a pivotal role in the number of EVs on the road within the next few years.    Lisa Wood, executive director and vice president of the Institute of The Edison Foundation, briefly summarizes the industry and the role of battery technology, saying, “Approximately 90,000 Americans have said goodbye to the pump and hello to the plug due to battery advancements and a growing selection of car models that has made driving an EV more accessible than ever before.  This number will only grow.”

Additional energy reduction services include demand response, energy procurement, and smart metering. Our website details these options and how they can assist industrial facilities in reducing their energy usage. Click here or visit this link for more information.

Kristopher Settle
http://www.ecsgrid.com

Authored by:

Kris Settle

Subscribe to his energy news feed to keep up to date with current happenings in the energy industry relating to demand response, energy procurement, green energy technology, renewable energy news and much more. He can be found on Twitter and Google+ 

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Navy Biofuel Program Goes Full Steam Ahead With Four New Pilot Projects

New DOE biofuel projects for Navy and DoD

Navy Jet courtesy of U.S. Navy.

Last year certain members of Congress waged an all-out war against the Navy’s ambitious biofuel initiatives, supposedly because they were too expensive. Fast-forward another year and the Navy biofuel program is still going full steam ahead, even though those same members are still trying to stomp it down. In the latest development, another $18 million in matching funds has just been announced for four new pilot projects. Funny thing is, this time around there’s been a minimum of grandstanding over the votes. Why could that be, we wonder.

Navy Biofuel From Non-Food Feedstocks

The four new projects all follow the same Obama Administration pattern of focusing on biofuel feedstocks that don’t involve food for humans or livestock. As an added sustainability bonus, these next-generation feedstocks generally don’t take up land that could be used for food crops, either.

That includes switchgrass and other woody plants that can thrive on land that’s unsuitable for other crops, as well as municipal waste and other forms of refuse, and algae.

A United Biofuel Front

The four new projects also follow the Obama Administration pattern of enlisting other federal agencies, namely the Department of Energy and the Department of Agriculture, to the biofuel front lines whenever Congress maneuvers against the Navy.

Last year, the naysayers in Congress (Okay, so Republican leadership. There, I said it.) took the tack of prohibiting the Navy from purchasing any fuel that is more expensive than conventional fuel, effectively ruling out biofuel.

In response, the Obama Administration used its powers under the decades-old Defense Production Act and other pipelines to authorize funds for private companies to build pilot projects and commercial-scale facilities. The end goal is to help jumpstart a cost-competitive U.S. biofuel industry, and that in turn would sink the entire Republican case against military biofuels.

Four New Biofuel Pilot Projects

The Department of Energy is spearheading the new $18 million package, under a 50-50, public-private matching funds arrangement.

One of the new projects involves the company Cobalt Technologies, which should ring a bell with CleanTechnica readers because we discussed a related biofuel project by the same company last year.

Cobalt has developed a fermentation-based process that uses bacteria to break down woody biomass and convert it directly to butanol. Under the new announcement, the company will receive up to $2.5 million to operate a pilot-scale facility converting switchgrass to butanol as a precursor to jet fuel. Given the Defense Department’s focus on climate change, the project also involves assessing greenhouse gas emissions from the facility.

Cobalt will be working with the Navy at China Lake in California, along with its long-running partner the National Renewable Energy Laboratory. Also involved is the Missouri-based Show Me Energy Cooperative, which is a traditional farming cooperative focusing on biomass for energy conversion.

Another piece of the pie consists of up to $4.2 million for Frontline Bioenergy LLC for a project in Iowa that pivots on the proprietary TarFreeGas bioreactor. The fully integrated system will convert woody biomass, municipal solid waste and other refuse to a liquid product that can be upgraded to military specs.

Mercurius Biorefining, Inc. will get up to $4.6 million for a woody (aka cellulosic) biomass-to-biofuel project in Washington State, in a consortium joined by Purdue University, the federal Pacific Northwest National Laboratory, and the biofuel innovator Incitor.

Rounding out the group is a company called BioProcess Algae, which is in line for up to $6.4 million to build an algae biorefinery that produces high value byproducts in addition to military-grade biofuel. So far the plan is for glycerine and animal feed byproducts, but if you look at other private sector biofuel projects there is also a potential for high value personal care products and nutrition supplements.

Biofuel and National Security

The four new projects will also benefit the Air Force and Coast Guard to some extent, but the Navy has really been the driving force behind a concerted effort by the Defense Department to cut its petroleum dependency.

That means cutting dependency on petroleum, period, and not just dependency on imported petroleum.

The problem is that the petroleum market is global, so no matter how much petroleum the U.S. produces domestically, the Department of Defense will still be vulnerable to price spikes and supply issues, including those resulting from conflicts overseas or actions by unfriendly nations.

The Defense Department also recognizes that its continued petroleum dependency is a factor in climate change, which impacts national security. It contributes to overseas conflicts and population displacement, and it puts additional humanitarian and relief responsibilities on its resources, especially concerning the Navy.

To top it off, the Defense Department also recognizes that by serving as an immense, eager customer for biofuels, it can help accelerate economies of scale that enable advanced biofuels to compete with petroleum products in the civilian sector, too.

But…But…Socialism!

Consider the Agriculture Department’s historic mission of fostering rural economic development as a critical factor in the general welfare and national security, and its mashup with the Departments of Defense and Energy on biofuel projects will become crystal clear.

That could also explain why, compared to last year’s thunder and lightening over the Navy biofuel program, we’ve been hearing a lot of cricket chirps from the Republican side of the aisle this year.

The pilot biofuel projects are just one ring in a broader scheme under the Rural Energy for America (REAP) program, which focuses on growing rural economies by developing a domestic biofuel industry.


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The result is that farmers are starting to realize the benefits of a biofuel economy, as illustrated by the partnership with Show Me Energy in one of the new pilot projects.

That could explain why, when anti-biofuel legislation came up for a vote in the Senate earlier this year, an impressive number of six Republican senators joined all but one Democrats in turning it aside. That group included farm state senators Roy Blunt (MO), Chuck Grassley (IA), Debra Fischer (NE), and Mike Johanns (NE). The lone Democratic anti-biofuel senator was Robert P. Casey, Jr. of Pennsylvania, which kind of makes sense given that state’s support for the natural gas industry.

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Tina Casey (950 Posts)

Tina Casey specializes in military and corporate sustainability, advanced technology, emerging materials, biofuels, and water and wastewater issues. Tina’s articles are reposted frequently on Reuters, Scientific American, and many other sites. You can also follow her on Twitter @TinaMCasey and Google+.


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Rebuilding the Foodshed: Fields of ENERGY

Over the coming days, we'll be sharing material from Chapter 4 (Energy) of the latest Resilience guide, "Rebuilding the Foodshed: How to Create Local, Sustainable & Secure Food Systems". This is a heck of a chapter, one that takes a look at the complex relationships between food systems, energy and waste. If you eat food, grow food, use energy, create energy, or make waste, you'll find yourself fascinated.

Food is energy. Food provides energy. Food requires energy. Food and energy are virtually synonymous. They even share a common unit of measure. But that doesn’t mean that they are in balance. To the contrary. And nowhere is that imbalance more evident than in the United States.

As soon as one opens wide and espouses the need for a food system that’s balanced in terms of health, equity, and ecology, it becomes apparent that much of the discussion is about how to extract one’s ecological footprint from one’s mouth. The problem is that, in terms of energy, our ecological footprints are estimated to be somewhere between seven and ten times the size of our mouths. In other words, it takes seven to ten calories to produce and deliver the equivalent of a single calorie of food in the United States.1These food system calories eventually add up to an estimated 19 percent of America’s total energy consumption.2 (It is important to note here that we typically measure calories in our diet as a “small calorie,” the amount of energy needed to raise one gram of water one degree Celsius. When we measure energy on a larger scale, we call it a “kilocalorie” or a “large calorie” and denote it with a capital C, as in “Calorie,” since it is defined as the amount of energy needed to raise one kilogram of water one degree Celsius.)

Do we simply go retro? Techno? Heck, no. A total historical reversal to preindustrial conditions is just as unlikely as a technological absolution for our modern-day petroleum-based gluttony.

The energy behind human civilizations was once a product of the food supply. But we are at a point in human history in which food is predominately a result of nonhuman energy inputs. The prospect of bringing food and energy closer to a one-to-one ratio of calories invested to calories derived is extraordinarily complex, and it has direct links to the call for creating more sustainable and resilient food systems. Today in the United States, these food and energy questions comprise a quandary that most of us can ponder in relative comfort, without the imminent threat of being unable to feed ourselves due to costs, energy constraints, or shortages. And yet, even as we relish the extraordinarily low cost of food in the United States, certain threats do lurk in the background. The energy supply that feeds our food system is at short-term risk of disruption by natural disasters, international conflict, and economic turmoil. The long-term impacts of worsening climate change, dwindling petroleum supplies, and increasing global population pressures are looming realities that we may try to ignore but ultimately cannot avoid. We have already seen how spikes in food prices can create social unrest with the seeming velocity of the flick of a match.

Such inquiries into food security should not be viewed as mere intellectual exercises or myopic self-preservation interests. Perhaps the most compelling reasons to grapple with our precarious food/energy imbalance are sheer justice and altruism.3 People who are “food insecure”4 are generally far too busy trying to convert their own personal energy into food dollars to spend much time researching and thinking about the national food and energy dilemma. The onus is upon those who are concerned enough to care and are able to do something about it. As actor Alan Alda once said during a graduation speech to a group of medical students, “The head bone is connected to the heart boneâ€"don’t let them come apart.”5

Energy Fields

I am an optimist and a good-natured (I hope) skeptic. But from my vantage point as a farmer and an academic, few things worry me more about the human condition than the intertwined fragilities of our food and energy suppliesâ€"and our habits that exacerbate the amount of energy consumed between farm and fork.

I struggle to make sense of the food/energy dilemma most every day, although I would by no means characterize those days as gloomy or my attitude as morose. Rather, my days tend to be filled with sunshine, pastoral landscapes, solar panels, healthy livestock, laughing children, and inquisitive students. But the energy-to-food ratio is a constant theme, starting with the morning milking on our off-the-grid farm. Our grass-fed herd of American Milking Devon cattle get either fresh pasture or good-quality hay every morningâ€"no grain, but plenty of gain. The milk pails are washed with solar-heated hot water while the early morning lights in the house are powered by yesterday’s sunshine. (We are almost entirely solar-powered, with fossil-fuel backups providing about 20 percent of the additional energy we need.) We’ll use one of our two Kubota tractors to do the morning’s heavy lifting or towing, but the goal is to use them as little as possible and, when feasible, not at all.

When the chores are completed, by me or often by one of our apprentices, I admittedly leave home in a gas-guzzling four-wheel-drive vehicle and head out sixteen miles to my job at Green Mountain College, where I oversee the college’s Farm & Food Project. As I pull up, students are usually walking to and from the farmhouse and the various outbuildings that comprise the college farm complex, often toting milk pails or vegetable bins as they wrap up morning chores there. Their farmâ€"and it is theirs in many waysâ€"is much like mine at home, an experiment in trying to minimize energy inputs and maximize food output. However, their work is more rigorous in its analytical aspects, thanks to the research oversight headed by my colleague Kenneth Mulder, one of the few PhDs in the United States who is also an expert at using oxen in agriculture.

The farm’s focus is to probe ways toward a food system that eschews fossil fuels as much as possibleâ€"and indeed, all of the activities on the farm seem to orbit the question of our overblown American diet. Draft animal equipment, photovoltaic panels, a solar hot water system, greenhouses, ergonomic hand tools, and bike tractors dot the farm. Students’ experiences with these techniques and technologies contrast sharply with the predominant realities of our current food system, which has us guzzling kilocalories of diesel energy in our tractors and gorging on excessive calories of food energy from our kitchens.

My favorite view from my office window in the second floor of a restored farmhouse is the summer scene of the oxen cutting and bringing in the hay for their winter ruminations. Other days, I gaze out the window and watch Kenneth and the students work in the vegetable fields that are his research plots. He has divided the vegetable production into three plots, each powered by a different system (see fig. 4-1). The easternmost section is cultivated, planted, maintained, and harvested exclusively by human power and the use of highly efficient hand tools. The middle section relies upon a combination of human power and a BCS walking tractor, essentially a highly versatile tiller with a variety of implements ranging from a sickle bar mower to a potato harvester. The western plot catches the most attention, as it is the market garden section powered primarily by the oxen and their accoutrement of fancy new (yes, generally new, and also quite efficient) tillage equipment.

This research project, dubbed LEAFS (Long-Term Ecological Assessment of Farming Systems), is Kenneth’s brainchild, a means of evaluating all of the energy inputs and outputs within each system. The goal is to develop a database of ten years of experimentation in order to discover the energy requirements of each system and to assess its efficiencies and challenges.

One of the more amusing aspects of it all is watching students work with stopwatches and scales in order to monitor their own energy inputs and each plot’s productivity. Even the energy expended by the oxen in pulling different pieces of equipment is measured by means of a dynamometer, a device placed between draft animals and any load that they pull as part of a task on the farm. The dynamometer sends a signal to a computer in the oxen-driver’s backpack, indicating precisely how much energy the oxen are exerting every second. This information is then transferred to a Google Earth map so that the oxen energy can be recorded both in joules (a unit of energy) and on a map that details the different levels of energy expended on certain tasks and in specific locations.

Efficiencies can also be measured in a variety of ways. For this long-term ecological study, Kenneth has opted to analyze efficiency in terms of labor, land, and energy, and his figures are based on wholesale organic vegetable prices (see table 4-1). It is interesting to note that the energy efficiency (measured as energy return on energy invested, or EROEI) of all four calculations ranges from 2.3 to 7.0, which is significantly higher than the range of 0.26 to 1.6 that is typical for conventional vegetable production in the United States.6

Trade-offs are inevitable in farm management systems, but seldom do aspiring farmers get to test out the practicalities of different systems, much less measure them with the sophistication provided by Kenneth’s expertise. The most elusive variable is energy, but it is arguably the one that currently warrants the most scrutiny.

The farm is the natural starting point for rectifying the imbalance between inputs and outputs, but if we are truly seeking balance in our food system, we must also assess the basic energy parameters that frame our daily decisions as consumers. In doing so, most of us gravitate immediately to the production and distribution aspects of our food system. Granted, those are critical components to tackle. However, food production and distribution often seem a bit beyond the scope of control for the average person, andâ€"somewhat contrary to our recent intense focus on food milesâ€"the transportation portion of our energy diet is actually relatively small in comparison to other parts of the food system that are based upon and driven by consumer choices and household habits.

As it turns out, the elements of the food system most within our control often tend to be those parts of the system that are closest to home, and they are also among the most energy-consumptive components found between farm and fork. The food and energy decisions we make in and near the home have the greatest impact on our personal energy-to-food ratios (see fig. 4-3).7 Household storage and preparation represent the largest single sector of energy use in the entire food system. When it comes to energy issues and food systems, “local” starts to become quite personal.

In order for the food and energy dilemma to really hit home, so to speak, it helps to remember that every step in the farm-to-plate process increases total energy inputs, making food waste an issue that we can ill afford to toss casually aside. As we work our way through the food chain, it will become increasingly obvious why reducing waste is such a critical link in creating resilient local food systems.

References
1. Martin C. Heller and Gregory A. Keoleian, Life Cycle-Based Sustainability Indicators for Assessment of the U.S. Food System, report no. CSS00-04 (Ann Arbor: University of Michigan Center for Sustainable Systems, December 6, 2000), 42.
2. David Pimentel et al., “Reducing Energy Inputs in the U.S. Food System,” Human Ecology 36 (July 15, 2008): 459.
3. It is important to note here that I also think it imperative that we consider the plights of those persons well beyond our local and national borders. The point here is that it is often easier to begin the caring process when there are direct and proximate relationships. "Local," in my view, is a starting point for caringâ€"not an endpoint of any sort.
4. “Food-insecure” populations include persons who have limited or uncertain access to nutritionally appropriate foods.
5. Alan Alda, Things I Overheard while Talking to Myself (New York: Random House, 2008), 47.
6. David Pimentel and Marcia H. Pimentel, Food, Energy and Society (New York: CRC Press, 2008).
7. For more information on the number of calories expended in producing a single calorie of food in the U.S. food system, see Heller and Keoleian, Life Cycle-Based Sustainability Indicators. More information on this topic can also be found in Richard Heinberg and Michael Bomford, The Food & Farming Transition (Sebastopol, Calif.: Post Carbon Institute, Spring 2009), http://www.postcarbon.org/report/41306-the-food-and-farming-transition-toward.

'Rebuilding the Foodshed: How to Create Local, Sustainable & Secure Food Systems' is book three from Post Carbon Institute's ongoing series of Resilience Guides.

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EPA Schools State Department on Keystone XL Pipeline

The deadline for public comments on the State Department’s environmental review of the Keystone XL tar sands oil pipeline passed on Monday, and the U.S. Environmental Protection came in just under the wire with a scathing review of the review. The failing grade won’t surprise opponents and reporters covering the project, who traced the authorship of the review back to a consulting firm paid by TransCanada, the Canadian company behind Keystone XL.

To be fair, though, EPA’s seven-page comment wasn’t all bad news: in an introductory paragraph, Assistant Administrator Cynthia Giles provides a consoling pat on the back (a sincere one, we presume), writing that “While we appreciate this effort, we also have several recommendations for improving the analysis…”

EPA criticizes State Department's Keystone review

F by Just some dust.

The Keystone XL Pipeline Review, Part 1

To put the EPA’s review in context, earlier this year the State Department issued its official Draft Supplemental Environmental Impact Statement (DSEIS) for the Keystone XL pipeline, which is designed to carry tar sands oil slurry from fields in Canada, down through the Midwestern U.S. to Gulf Coast refineries for ready access to the global export market.

The mildness of the review was met with dismay by pipeline opponents, who are relying on the Obama Administration to refuse approval for the project based on environmental risks including global climate impacts as well as local water and land resource impacts (State Department approval is required for the project, since the pipeline crosses an international border).

Some sleuthing by Brad Johnson (via Grist.org) soon revealed that the review was not prepared by State staff, but was the product of a consulting firm paid by TransCanada. That’s fair enough as far as it goes, since reviews like these are highly technical and few agencies have the resources to conduct them in-house. However, the review basically boiled down to two rather lame arguments, which we’ll detailed below.

The Keystone XL Pipeline And Greenhouse Gas Emissions

The first argument revolves around greenhouse gas emissions, and while State concedes that lifecycle greenhouse gas emissions from tar sands oil is far greater than conventional oil, it basically argues that the pipeline should be approved because if it is not, the emissions will simply make their way into the global market by alternate routes (I know, that’s really lame but whatever).

State admits that additional pipelines for Canada’s tar sands oil are probably not an option, but that still leaves rail as feasible possibility, both logistically and economically.

EPA pounces on this one, noting that “the discussion in the DSEIS regarding energy markets, while informative, is not based on an updated energy-economic modeling effort.”

EPA anticipates that rail transport would cost much higher than the DSEIS accounts for, with the added complication that current and potential railway infrastructure would not be sufficient to enable a smooth flow of rail traffic.

For that matter, communities in the Pacific Northwest are already mobilizing vigorously against proposed new rail terminals for coal exports, so despite the promise of job growth in coastal communities, it is hardly likely that increased rail traffic from tar sands oil would be met with open arms.

Dilbit And Pipeline Safety

The second issue focuses on local risks from pipeline spills and breaks. Keystone XL supporters generally avoid discussing the actual contents of the pipeline’s carriage, which leads to the impression that the impact of spills or breaks would be no more or less severe than with any other of the pipelines that already criss-cross the U.S.

Again, that’s a pretty lame argument (everybody else is doing it, so why can’t we?). However, EPA reveals that it is also disingenuous, to say the least. That’s because, as EPA emphasizes several times within its comment, tar sands oil is not like conventional oil. It consists of heavy bitumen that is diluted into a transportable slurry, typically by mixing it with benzene, naphtha or natural gas condensate.

The difference in impacts and clean-up logistics is significant, as EPA notes by referring to the 2010 Enbridge spill of oil sands crude in Michigan.

In a conventional spill, oil floats to the surface where it can be skimmed off or contained. EPA notes that in contrast, the Enbridge spill dumped heavy crude into the Kalamazoo River, where it sank and mixed with bottom sediment. EPA has determined that it will not biodegrade and that a full dredging operation will be required to clean up the mess.

EPA provides a long, detailed rundown of spill prevention and response measure that would be required to satisfy a minimum of public and environmental safety issues.

However, EPA also notes that even the DSEIS itself recognizes that short term clean-up efforts would not resolve issues related to the dissolved components of dilbit including benzene, polycyclic aromatic hydrocarbons and heavy metals, which could be released over a period of “many years.”


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As if to punctuate EPA’s concerns, the more recent Exxon spill in Arkansas last month illustrates how even a relatively small spill of dilbit can create a lasting local disaster.

F Is For Insufficient

The end result of all this is that State earned itself an EO-2, meaning Environmental Objections â€" Insufficient Information:

“The EPA review has identified significant environmental impacts…Corrective measures may require substantial changes to the preferred alternative or consideration of some other project alternative (including the no action alternative or a new alternative).”

So, it looks like it’s back to the drawing board for Keystone, at least for the time being.

h/t: TheHill.com.

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Tina Casey (949 Posts)

Tina Casey specializes in military and corporate sustainability, advanced technology, emerging materials, biofuels, and water and wastewater issues. Tina’s articles are reposted frequently on Reuters, Scientific American, and many other sites. You can also follow her on Twitter @TinaMCasey and Google+.


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State of the EU Emissions Trading Scheme

Last week, in a surprise to many, the European parliament defeated a proposal to postpone the auctioning of emissions permits, a move that would have propped up prices in the bloc's carbon market, known as the EU Emissions Trading Scheme or ETS. The market reaction was quick and brutal, with the price of carbon allowances falling by more than 30%. The political reaction was similar â€" the Wall Street Journal wrote that the vote was the 'equivalent of the pope renouncing celibacy'.

emissions trading in EU

Such proclamations are not limited to those opposed to action on climate. In London, a carbon industry insider explained that 'We have reached the stage where the EU ETS has ceased to be an effective environmental policy.' However, the fact that the ETS has fallen short of expectations has much more to do with unrealistic expectations than it does with a surprising decision by the European parliament. After all, the price of EU emissions allowances was €4.50 before the vote, hardly an indication of strength.

Tom Brookes, director of the European Climate Foundation, explained that the EU vote took on even greater significance because climate policy, 'was an integral part of the brand' of the European project.

As a brand, the commitment to climate policy has served Europe well, even as it has stepped back from a proposed tax on airline emissions and seen the recent expansion of new coal generation. However, when Europe has faced decisions that appear to place economic growth in opposition to climate policies, no one should be surprised that policy makers have chosen growth. As the Financial Times explains, 'These days, it is accepted...that global warming has been consigned to a seat in the waiting room while the EU tends to a chronic economic crisis that has threatened the single currency and increased unemployment.' Expressing a preference for economic growth simply means that Europeans have much in common with people all over the world, who have made similar choices in similar situations.

With expectations that Europe's economic malaise is set to continue, and continuing concerns among European policy makers, industry and the public over high energy prices, it seems unlikely that the EU will soon revisit the parliament's decision not to prop up the flailing carbon market in a way that dramatically increases carbon prices, much less the actual costs of energy. So while the ETS is not going away, advocates for action on climate are going to have to look elsewhere for progress.

From this perspective, perhaps the vote of the European parliament could serve as a wake-up call, much like the disastrous Copenhagen climate conference and the failed efforts to pass cap and trade legislation in the US. If climate policies are to succeed in decarbonising the global energy mix, they will have to be designed to work in concert with people's hopes and dreams, which typically means economic growth in rich and poor countries alike.

Climate policy will be in focus in several elections later this year, including in Germany, which has embarked on an ambitious 'energy transition' away from fossil fuels and nuclear power, and Australia where the deeply unpopular Julia Gillard looks set to be replaced by Tony Abbott, who has promised to terminate the recently implemented carbon tax.

Just like Europe, Australia illustrates the perils of elevating branding over substance. Australia is due to join the European ETS in 2015, when the EU carbon price is expected to be in the neighborhood of A$4. This means the price of carbon in Australia would plummet from its current peg at A$23; that's a price drop of A$19 for which Julia Gillard will be responsible. Tony Abbott, meanwhile, plans to terminate the Australian emissions trading scheme altogether, so he would be responsible the remaining A$4. From my perspective, far removed, it looks like opposing political parties in Australia are working together!

The reality of emissions reductions is that the decarbonisation of the global economy will occur when less carbon-intensive energy alternatives displace dirtier sources. In the US, a revolution in technologies for natural gas extraction has led to an unexpected increase in rates of decarbonisation and significant reductions in emissions, while underpinning economic growth and cheaper energy costs. However, broader expansion of gas technologies faces opposition, as does nuclear power which holds even greater promise for large quantities of carbon free energy, often from those same lobbies pressing for action on climate change.

Decisions about energy technologies matter a great deal: the IEA observed in a report released last week that the carbon intensity of global energy generation has not changed in 20 years, despite the rapid increase in solar and wind technologies.  The lesson here is that markets don't change carbon intensities, technology does. So long as debates over climate policies focus on trying to reify esoteric carbon markets and their associated politics, it is highly unlikely that the future will see policy outcomes any different than those observed to date.

Europe's latest setback should nevertheless remind us that people remain generally willing to pay some price for attaining climate policy goals via a price on carbon, a lesson reinforced in Australia, New Zealand, California, my home town of Boulder and perhaps soon in China. We also know that accelerating decarbonisation of the economy requires a substantial commitment to energy innovation. Perhaps we are getting closer to the moment when advocates for action on climate put these points together in the form of a sustainable approach to climate policy.

Photo by Flickr user dmytrok.

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EU Carbon Market Collapse Won’t Kill Cap And Trade

For carbon markets across the world it was the best of times, it was the worst of times.

Plummeting European Union carbon prices following a key EU vote seem to demonstrate in the clearest terms that cap and trade is doomed to fail. After all, “if carbon trading can’t make it in Europe, it can’t make it anywhere,” said Bryan Walsh of Time.

But declaring the death of carbon markets and cap and trade policy over Europe’s struggles is a knee-jerk reaction which overlooks significant developments for carbon trading around the world â€" ones which could ultimately rescue the EU and cement cap and trade as a global climate change solution.

What Went Wrong In Europe?

First, some background on Europe. The EU’s Emissions Trading Scheme (ETS) launched in 2005 with a common price on a ton of carbon emitted anywhere across the EU. It’s the oldest and largest carbon market in the world, and started out with prices around €25 Euros per ton â€" a level that encouraged heavy industry and electricity generation to shift toward clean energy.

But an overly generous allowance policy that gave businesses free permits has combined with the stubborn economic recession to create a glut of surplus allowances and kneecap EU carbon prices. Allowances sold for as low as €3 Euros per ton in early 2013, and the EU proposed a “backloading” solution to delay the sale of 955 million allowances from 2013-2015, roughly half annual emissions.

Backloading Fails, Everyone Freaks Out

Backloading was intended to force prices back up and keep them relatively stable while the EU restructured the carbon market to address allowance oversupply, but the measure was narrowly defeated Tuesday and permit prices fell 40% to an unprecedented low on the system’s futures exchange, threatening the €54 billion program.

“The ETS will almost certainly collapse,” said analyst Kash Burchett. “Prices will sink very low, potentially below €1 per ton and liquidity will dry up.” So if the EU ETS goes, it’s game over for cap and trade, right? Wrong.

While the EU carbon market absolutely must reduce its glut and boost prices to function in the short-term, backloading was just the first step proposed to reform the system’s inflexibility, and key EU policymakers have said they will introduce long-term fixes to save the ETS.   

An Pan Asian-Pacific Carbon Market?

Looking beyond the EU, however, multiple carbon markets are underway around the world, learning lessons from ETS oversupply and linking to each other to create larger markets. In fact, these new cap and trade systems could one day revitalize the ETS in ways internal reform cannot, by creating access to new allocation demand.   

Australia launched a national A$23/ton carbon tax on large emitters last year, and plans to start a national cap and trade market system with a floating price and links to the EU ETS in July 2015.

This system, in one of the world’s most carbon-intensive economies, could become the cornerstone for a massive Asia-Pacific carbon market. Australia has announced it will work with China to jointly develop the two countries’ respective systems with an eye toward long-term linkages, and Australia is working toward links with both New Zealand and South Korea’s fledgling markets.

China Is Key

As noted by several Australian observers, China might just be the lynchpin to international carbon market success. China is the world’s largest carbon emitter, and recently stated “the increasing dangers presented by climate change measured against the inadequacy of the global response requires a more focused and urgent initiative.”

To that end, China is launching cap and trade pilot programs in seven major manufacturing cities ahead of an expected 2020 national emissions trading system launch. These seven pilot programs alone will cover up to 1 billion tons of emissions by 2015 and will make China the world’s largest carbon market outside the EU.

China previously signed a financing deal with the EU to develop an emissions trading link with the ETS, and has pledged to move forward even if the ETS collapses. “China has pledged these targets to the international community to deal with climate change,” said Xie Zhenhua. “No matter what happens to our economy, we cannot make any change.”

North America Does Its Part

So we can count China and Australia in on ultimate international linkages, but what about the US? Even though our national emissions reduction policy amounts to little more than nibbling around the edges, regional cap and trade markets are growing strong, and form the core of a North American carbon market projected to “more than double” in value to $2.5 billion in 2013.

The Regional Greenhouse Gas Initiative (RGGI) has been in operation across the Northeast US for six years, and may net $2 billion in revenue by 2020. Unlike the ETS, RGGI has taken steps to readjust its carbon allocation budget to match lower emissions due to natural gas, clean energy, and recession. In fact, allocation prices may more than double due to the 45% allowance cut.

While RGGI is America’s oldest carbon market, its impact could be dwarfed by the new kid on the block â€" California. The Golden State’s cap and trade system sold more than 23 million allocations for nearly $300 million in November 2012, and a second auction in February 2013 exceeded analyst expectations while raising another $176 million.

California has also formally approved a linkage to Quebec’s carbon market through the Western Climate Initiative, and the two systems could start trading as soon as January 2014. More than 425 companies operating in the two systems will soon be able to buy and sell interchangeable permits, which could increase the overall market 20 percent.

Emissions Reductions: On The Right Side Of History

To be clear, the collapse of carbon prices in the EU’s ETS is bad for climate policy, no matter how it plays out. And, many challenges lurk for carbon markets around the world. But dooming cap and trade as a policy measure simply because the first established international system didn’t anticipate how emissions trading would play out and couldn’t adjust to market changes is shortsighted hyperbole.

Hope springs eternal in these fledgling global markets, set in much more carbon-intense nations, in every corner of the globe. As each market matures and links with others while applying lessons learned, the overall ability of cap and trade systems to absorb individual shocks will improve, and the potential to flatten emissions while delivering real economic benefits will only grow.

Carbon emissions reduction policy is on the right side of history. If the EU ETS can survive on life support until other systems can realize their potential, this emergency may one day be seen as merely a speed bump on the road to a low-carbon world.

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EU Parliament Voted No, So Now What for the Emissions Trading System?

As is well known by now, the EU MEPs voted against the specific backloading proposal that was put before the Parliament. However, the Parliament also voted against the outright rejection of the proposal, which means that the Parliament formally has no position on backloading, possibly leaving the door open for a reformulated attempt at passage. I won’t dwell on that as it probably requires too much speculation and intrigue even for a blog.

The situation the EU finds itself in is spelled out in more generic form in the new Shell New Lens Scenarios. The scenarios tell stories about the future, but these are built around a series of paradoxes and pathways, with the latter illustrated below.

 Lenses

When the financial, social, political or technological capital encourage early action, it can result in effective change and reform. Room to manoeuvre exists and a new pathway forward is forged. But when such capital proves inadequate to withstand the stresses applied, behavioural responses delay change, causing conditions to worsen until ultimately a reset is forced or a collapse occurs. This is a trapped transition. 

The EU seems to be getting quite good at the latter, with the New Lens booklet giving the example of the EU handling of the financial crisis as a Trapped Transition Pathway;

The “can” keeps being “kicked down the road” while leaders struggle to create some political and social breathing space. So there is continuing drift, punctuated by a series of mini-crises, which will eventually culminate in either a reset involving the writing off of significant financial and political capital (through pooling sovereignty, for example) or the Euro unraveling.

Similarly for the EU ETS. While backloading was never the complete solution to the problems faced by the ETS, it could have given it enough momentum to see through a series of much needed reform measures, paving the way to a more robust and economically efficient climate policy framework. Instead, the Parliament has “kicked the can down the road”, setting up the conditions for further crisis later on. This in turn could do real damage to the ETS, leading to a very negative outcome, i.e. Write-off & Reset or Decay/Collapse. Many of those who opposed the backloading amendment argued that it was better to wait for the full structural reform discussion, but that discussion has no formal schedule and is unlikely to commence before the full debate on the 2030 roadmap. Even then, opposition will rear its head again and the structural reforms required could well be watered down.

The vote attracted quite a bit of media attention, with many articles and significant commentary.  Perhaps strongest of all was The Economist, which spoke of “profound consequences” that will “reverberate round the world”. The Financial Times took a different view in its editorial, effectively arguing that the backloading itself was akin to “kicking the can down the road” and instead called for the structural reform to start in earnest and “end the system’s absurdities”. This included border carbon adjustments, long term targets (of the 2050 variety) and dealing with the surplus of allowances.

I have and continue to be an advocate of emissions trading and carbon pricing, but it is looking increasingly unlikely that these systems will ever effectively trigger the one essential response to rising CO2 emissions, which is carbon capture and storage (CCS). There are too many other vested interests which continue to suck the life out of an ETS, including competitiveness concerns from participants, renewable energy targets, energy efficiency mandates, developing country needs and environmental justice to name but a few. These are all important policy desires, but they need to find their home elsewhere and not in the space occupied by an emissions trading system.

In the end if the ETS approach doesn’t deliver CCS in particular, then some form of mandated requirement could be imposed instead.

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Google Backs New Plan For Utility-Supplied Renewable Energy Option

In a new post on Google’s blog, Google Director of Global Infrastructure Gary Demasi has just put forth a plan that could really blow up the domestic renewable energy market. Since utility companies have long charged different rates (aka tariffs) for different classes of customers, the idea is to establish a special renewable energy tariff for customers that request it. In typical Google fashion the company is already putting its money where its mouth is, working with Duke Energy to establish a renewable energy tariff for its data center in Lenoir, NC. The question is, with renewable energy on the upswing in the US, what’s wrong with the way things are being done now?

Google proposes new renewable energy tariff

Lenoir, NC Data Center courtesy of Google.

Trouble In Renewable Energy Paradise

Demasi’s post directs you to a white paper on the Google renewable energy tariff proposal, which outlines three general problems that Google perceives in the way that companies buy renewable energy today. Essentially, the white paper reflects lessons learned by Google in the course of its transition from fossil fuels into renewable energy.

As Google sees it, companies have three basic options. One approach is to build renewable energy on site, as Google has already done with a 1.7 megawatt solar array at its Mountain View campus.

However, as illustrated by the Mountain View experience, it is unusual for even a very large on-site system to fulfill all the needs of a particular facility, 24/7 including peak use. Until advanced energy storage technology catches up, there is still going to be at least some reliance on fossil fuels through the grid mix.

Buying renewable energy directly from off-site sources is another approach that Google has engaged in, through power purchase agreements (PPAs). The problem is that a company must put on the hat of an energy manager, which can create a major distraction from the central business of a company:

“The downsides are that these PPAs require us to actively manage purchases and sales of power on the wholesale energy markets, which can be a complex process. This puts Google in the business of managing power scheduling and contracting, when we’d rather spend our resources building products for our users.”

One other option is to purchase renewable energy credits (RECs), which Google generally looks on with favor. The downside here is that Google has set a high bar for itself in terms of renewable energy. The company aims to increase renewable energy generation rather than simply shuffling existing resources around, and since the price paid for RECs does not necessarily correlate to renewable energy investments, that option generally fails the test.

The Google Renewable Energy Solution

On the face of it, the solution that Google proposes for all three problems looks stunningly simple: leave the business of generating energy to utility companies, which is after all what they do best, but create a new category of tariff that provides renewable energy to consumers that request it.

The main hurdle is that a renewable energy tariff, at least for the time being, would typically be greater than existing tariffs based on conventional user categories such as residential, commercial and industrial.

As things stand now, these user categories are all geared toward offering the lowest cost for the best reliability through a mix of any and all available sources, and Google does not propose to push higher renewable energy costs onto other ratepayers.

Nevertheless, Google seems pretty confident that other factors would offset any cost differential. Namely, Google foresees that companies would be willing to pay a little more in order to achieve a more diverse energy supply that provides far more long term stability than the fossil fuel market, which is characterized by periodic price spikes and is vulnerable to geopolitical factors that can (and do) lead to supply disruptions.

Just as importantly, Google cites a growing interest among companies to establish sustainability leadership as a marketing tool, a trend that is particularly evident in the technology sector.

As for Google’s goal of helping to accelerate the adoption of clean energy, this utility-based approach would provide an easy path to renewable energy  for companies that don’t own sites that are appropriate for clean energy generation, and that don’t have the wherewithal to manage PPAs.

It’s Crunch Time For Fossil Fuels

It’s also worth noting that Google, with its $1 billion investment in wind and solar projects, would be sitting in the catbird seat as far as an increased demand for, and access to, grid-supplied renewable energy in the US.


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That also makes Google a leading player in the squeeze on fossil fuels. By breaking the grid-mix chains that have historically characterized the relationship between US energy customers and suppliers, the new tariff would increase the pressure on domestic fossil fuel companies, which are already seeking new export markets for their products in the face of an inexorable decline in US demand.

Aside from the transference of “dirty” fuels from North America to other parts of the globe, the export trend has already lead to huge controversies over proposed new coal export facilities and the Keystone XL tar sands oil pipeline, as well as a big fight in Congress over proposals to approve increased natural gas exports.

Stay tuned.

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Tina Casey (946 Posts)

Tina Casey specializes in military and corporate sustainability, advanced technology, emerging materials, biofuels, and water and wastewater issues. Tina’s articles are reposted frequently on Reuters, Scientific American, and many other sites. You can also follow her on Twitter @TinaMCasey and Google+.


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