SMEs are being encouraged to take out interest-free loans for energy efficient equipment A campaign has been launched to urge UK businesses to save £1m a day during the recession by being more energy efficient.
The Carbon Trust's One Million a Day campaign is encouraging businesses of all sizes to join up and begin making immediate savings on their energy bills - simultaneously reducing their carbon emissions. It is hoped that the campaign will save the UK economy £1bn over the next three years and reduce carbon emissions by at least 17m tonnes. The trust said businesses could save up to 20% on their energy bills through changes that cost little or no money. "All businesses, whether big or small, should realise easy cost savings by taking sensible energy efficiency measures," said Tom Delay, chief executive of the Carbon Trust. "Every business should be asking how much cash their company can save by cutting carbon." Climate Change and Energy Secretary Ed Miliband said: "By taking action now to reduce energy use and cut carbon from our goods and services, British business has the opportunity to not only save money and create jobs, but set us on the path to becoming an innovative low carbon economy." The campaign is being backed by a number of major high street names, industry bodies and environmental groups, as well as Dragons' Den entrepreneur Theo Paphitis. Mr Paphitis said: "Businesses of all sizes need to find ways to cut costs in this economic climate - that's a fact. "There are ways to save cash without affecting the day-to-day running of the company, and finding ways to reduce energy is one sure-fire way to do this." Small and medium-sized businesses are particularly being targeted by the campaign and are being urged to take advantage of a £35m Carbon Trust fund to upgrade or replace existing equipment to more energy efficient versions. The fund provides SMEs with interest-free Energy Efficiency Loans of up to £200,000. Kate Martin
Thursday, 19 February 2009
European cities pledge to cut carbon
A coalition of European cities have formalised plans to work together to reduce their contribution to climate change.
The Covenant of Mayors sees cities sign up to making deeper carbon cuts by 2020 than are currently required by the EU. London is among the cities to have adopted the new goals, though City Hall had already set a goal of reducing the capital's emissions by 60% by 2025, I greater target than that set by Europe. Signing the Covenant also gives cities more leverage when it comes to tapping into the billions of Euros of funding available for carbon reduction programes. Boris Johnson, Mayor of London, said: "I want London to become a leading low carbon city in Europe helping to create jobs in new green industries and save money off energy bills. To underline my commitment, I have agreed that London should formally join together with other European cities on our existing work to tackle climate change. "By working in partnership, cities can share the best of our ideas and save money for our residents by take advantage of our collective clout when procuring new services and technologies." The Deputy Mayor of London, Richard Barnes, added that co-operation and learning from each other's success was a win-win for citizens and the climate. "It is common sense that we take steps to work with cities across Europe so we can help each other fast track our existing programmes to tackle climate change," he said. Meanwhile a practical step towards the Mayor's plans for greening London took place on the streets of the capital this week, with the planting of the first of 10,000 trees promised shortly after his election. The trees have been funded through efficiency savings - primarily from cash clawed back by the scrapping of the City Hall published newspaper, the Londoner. Mr Johnson planted one of the first trees during a photo call in Islington. "I have made it a top priority that we make our city a more attractive place to work, live and visit and reversing the decline of street trees is one way for us to do this," he told press. "I cannot think of a more uplifting way to usher in the spring than the arrival of these brand spanking new trees. 'This is just the first phase of my programme to make our communities leafier by, during my term of office, planting over 10,000 street trees in areas that have the least." Sam Bond
The Covenant of Mayors sees cities sign up to making deeper carbon cuts by 2020 than are currently required by the EU. London is among the cities to have adopted the new goals, though City Hall had already set a goal of reducing the capital's emissions by 60% by 2025, I greater target than that set by Europe. Signing the Covenant also gives cities more leverage when it comes to tapping into the billions of Euros of funding available for carbon reduction programes. Boris Johnson, Mayor of London, said: "I want London to become a leading low carbon city in Europe helping to create jobs in new green industries and save money off energy bills. To underline my commitment, I have agreed that London should formally join together with other European cities on our existing work to tackle climate change. "By working in partnership, cities can share the best of our ideas and save money for our residents by take advantage of our collective clout when procuring new services and technologies." The Deputy Mayor of London, Richard Barnes, added that co-operation and learning from each other's success was a win-win for citizens and the climate. "It is common sense that we take steps to work with cities across Europe so we can help each other fast track our existing programmes to tackle climate change," he said. Meanwhile a practical step towards the Mayor's plans for greening London took place on the streets of the capital this week, with the planting of the first of 10,000 trees promised shortly after his election. The trees have been funded through efficiency savings - primarily from cash clawed back by the scrapping of the City Hall published newspaper, the Londoner. Mr Johnson planted one of the first trees during a photo call in Islington. "I have made it a top priority that we make our city a more attractive place to work, live and visit and reversing the decline of street trees is one way for us to do this," he told press. "I cannot think of a more uplifting way to usher in the spring than the arrival of these brand spanking new trees. 'This is just the first phase of my programme to make our communities leafier by, during my term of office, planting over 10,000 street trees in areas that have the least." Sam Bond
Greece announces nuclear moratorium
Just days after one of Europe's green paragons announced a return to nuclear power, a country with a patchy track record has put a moratorium on new nuclear and coal power plants. If asked a month ago whether Sweden or Greece had vowed to back renewable energy while scrapping plans for polluting power sources, the sensible money would doubtless have been on the Scandinavian state.
But in the topsy-turvy world of recession and uncertainties over energy security, it appears anything can happen. Last week Sweden said it plans to lift a 30 year ban on nuclear plants, while widening its portfolio of renewable energy to encompass technologies other than hydro. Meanwhile on the other side of Europe, environmental campaigners are claiming victory after Greek development minister Kostis Hatzidakis ruled out future investment in nuclear and, perhaps more importantly, coal-fired power plants. WWF Greece was part of a coalition that has been fighting a 'no to coal' campaign amid a will-they-won't-they saga over government backing for coal plants and rumours that the ruling administration planned to introduce nuclear power to the country's energy mix. Demetres Karavellas, chief executive of the NGO, said: "We feel that our efforts to prove that Greece does not need coal power plants and nuclear energy have been justified. Today, we can be more optimistic that Greece might make the necessary shift towards a more sustainable and competitive green economy." The government change of stance on the issue was signalled by legislative changes to streamline and assist investment in renewable energy and by Mr Hatzidakis emerging from a cabinet meeting in late January to say "We want 2009 to be the year of renewable energy sources ." Sam Bond
But in the topsy-turvy world of recession and uncertainties over energy security, it appears anything can happen. Last week Sweden said it plans to lift a 30 year ban on nuclear plants, while widening its portfolio of renewable energy to encompass technologies other than hydro. Meanwhile on the other side of Europe, environmental campaigners are claiming victory after Greek development minister Kostis Hatzidakis ruled out future investment in nuclear and, perhaps more importantly, coal-fired power plants. WWF Greece was part of a coalition that has been fighting a 'no to coal' campaign amid a will-they-won't-they saga over government backing for coal plants and rumours that the ruling administration planned to introduce nuclear power to the country's energy mix. Demetres Karavellas, chief executive of the NGO, said: "We feel that our efforts to prove that Greece does not need coal power plants and nuclear energy have been justified. Today, we can be more optimistic that Greece might make the necessary shift towards a more sustainable and competitive green economy." The government change of stance on the issue was signalled by legislative changes to streamline and assist investment in renewable energy and by Mr Hatzidakis emerging from a cabinet meeting in late January to say "We want 2009 to be the year of renewable energy sources ." Sam Bond
Repower receives €2bn order for wind turbines
By Chris Bryant in Berlin
Published: February 18 2009 14:23
Repower Systems, the German engineering company, on Tuesday received the largest ever order for offshore wind turbines from RWE, Germany’s second biggest utility, in a deal worth a potential €2bn.
RWE Innogy, the utility’s renewable arm, is set to purchase 250 turbine units, each with a rotor diameter of 126 meters, from the Hamburg-based company, according to a framework agreement.
Most of the turbines will be used to construct a 1,000MW windfarm some 40km off the North Sea island of Juist, which will generate enough power to supply around 780,000 homes. The first units are due for delivery in 2011.
The deal marks a significant boost for the offshore wind industry, which has been rocked by turmoil in global credit markets that has put the financing of some projects in doubt.
Offshore wind farms are riskier and more expensive than the onshore equivalent and their cost-effectiveness in relation to other forms of energy has been further undermined by a slump in the price of crude oil.
Per Hornung Pedersen, chief executive of Repower, said the contract was a “positive signal for the entire wind industry” given the current economic situation.
Repower last week affirmed its sales forecast for the full year but warned that the unstable global economy could lead customers to try to delay some projects. Sales in the first nine months of its fiscal year increased by 46 per cent to €850.5m.
The company is majority-owned by Suzlon Energy, an Indian wind power company, which acquired some of its stake from Areva, the French nuclear power company, and Martifer, the Portuguese group.
Suzlon is due to increase its stake to almost 91 per cent by May through the acquisition of additional shares from Martifer.
Copyright The Financial Times Limited 2009
Published: February 18 2009 14:23
Repower Systems, the German engineering company, on Tuesday received the largest ever order for offshore wind turbines from RWE, Germany’s second biggest utility, in a deal worth a potential €2bn.
RWE Innogy, the utility’s renewable arm, is set to purchase 250 turbine units, each with a rotor diameter of 126 meters, from the Hamburg-based company, according to a framework agreement.
Most of the turbines will be used to construct a 1,000MW windfarm some 40km off the North Sea island of Juist, which will generate enough power to supply around 780,000 homes. The first units are due for delivery in 2011.
The deal marks a significant boost for the offshore wind industry, which has been rocked by turmoil in global credit markets that has put the financing of some projects in doubt.
Offshore wind farms are riskier and more expensive than the onshore equivalent and their cost-effectiveness in relation to other forms of energy has been further undermined by a slump in the price of crude oil.
Per Hornung Pedersen, chief executive of Repower, said the contract was a “positive signal for the entire wind industry” given the current economic situation.
Repower last week affirmed its sales forecast for the full year but warned that the unstable global economy could lead customers to try to delay some projects. Sales in the first nine months of its fiscal year increased by 46 per cent to €850.5m.
The company is majority-owned by Suzlon Energy, an Indian wind power company, which acquired some of its stake from Areva, the French nuclear power company, and Martifer, the Portuguese group.
Suzlon is due to increase its stake to almost 91 per cent by May through the acquisition of additional shares from Martifer.
Copyright The Financial Times Limited 2009
Solar-Power Equipment Prices Drop
By REBECCA SMITH
Prices for solar-power equipment are plummeting in response to an oversupply of modules and components from the more than 250 global manufacturers, providing a potential boon for local governments, utilities and others trying to roll out new solar-power projects.
A report by Lux Research Inc., a New York-based energy research firm, says global spending on solar power is expected to shrink by nearly 20% to $29 billion from $36 billion, this year over last. But the amount installed will decline only slightly, reflecting more favorable pricing for buyers. Juiced by government spending, such as the just-signed economic stimulus package, the solar-power market is expected to grow to $70 billion in annual investing by 2013.
Many major solar-power installations are moving forward and the drop in prices means that backers of these projects could get more for less. Los Angeles voters, for example, will decide on March 3 whether to approve a ballot measure that would authorize the city-owned utility to fund 400 megawatts of solar projects during the next five years. California has a goal of installing 1,750 megawatts of photovoltaic projects by 2017 and has already installed 322 megawatts through 2008.
Manufacturers of solar cells and modules have ramped up capacity recently as high energy prices have refocused attention on renewable energy. That has allowed some manufacturers to benefit from an economy of scale, which has also helped reduce prices.
However, manufacturers are expected to roll out more than twice the amount of solar productive capacity -- an estimated 10.4 gigawatts -- than the estimated market demand of 5.3 gigawatts, according to the Lux analysis.
The Lux analysis, titled "Finding the Solar Market's Nadir," concluded that cell and module prices have dropped by 25% lately and price cuts are radiating back up the supply chain due to excess inventory of finished goods. "Capacity additions among suppliers have created a version of mutually assured destruction for the solar industry," said Ted Sullivan, an author of the report. Many expect consolidation among the numerous manufacturers of solar-powered equipment that have sprung up recently. Eventually, he expects demand to soak up excess capacity, a trend hastened by price cutting.
Separately, an analysis of some 37,000 solar projects constructed in the U.S. between 1998 and 2007 found that costs dropped from $10.50 per watt of capacity in 1998 to $7.60 per watt of capacity in 2007. Most of that 28% decline was due to falling costs for components, like inverters, and labor but not for modules.
That's expected to change this year. Researchers at the federally funded Lawrence Berkeley National Laboratory, who wrote the report titled "Tracking the Sun," think module costs could plummet.
"It looks as though the next couple of years will have steep price declines for modules due to growing oversupply," said Galen Barbose, a research associate at the federal lab.
Write to Rebecca Smith at rebecca.smith@wsj.com
Prices for solar-power equipment are plummeting in response to an oversupply of modules and components from the more than 250 global manufacturers, providing a potential boon for local governments, utilities and others trying to roll out new solar-power projects.
A report by Lux Research Inc., a New York-based energy research firm, says global spending on solar power is expected to shrink by nearly 20% to $29 billion from $36 billion, this year over last. But the amount installed will decline only slightly, reflecting more favorable pricing for buyers. Juiced by government spending, such as the just-signed economic stimulus package, the solar-power market is expected to grow to $70 billion in annual investing by 2013.
Many major solar-power installations are moving forward and the drop in prices means that backers of these projects could get more for less. Los Angeles voters, for example, will decide on March 3 whether to approve a ballot measure that would authorize the city-owned utility to fund 400 megawatts of solar projects during the next five years. California has a goal of installing 1,750 megawatts of photovoltaic projects by 2017 and has already installed 322 megawatts through 2008.
Manufacturers of solar cells and modules have ramped up capacity recently as high energy prices have refocused attention on renewable energy. That has allowed some manufacturers to benefit from an economy of scale, which has also helped reduce prices.
However, manufacturers are expected to roll out more than twice the amount of solar productive capacity -- an estimated 10.4 gigawatts -- than the estimated market demand of 5.3 gigawatts, according to the Lux analysis.
The Lux analysis, titled "Finding the Solar Market's Nadir," concluded that cell and module prices have dropped by 25% lately and price cuts are radiating back up the supply chain due to excess inventory of finished goods. "Capacity additions among suppliers have created a version of mutually assured destruction for the solar industry," said Ted Sullivan, an author of the report. Many expect consolidation among the numerous manufacturers of solar-powered equipment that have sprung up recently. Eventually, he expects demand to soak up excess capacity, a trend hastened by price cutting.
Separately, an analysis of some 37,000 solar projects constructed in the U.S. between 1998 and 2007 found that costs dropped from $10.50 per watt of capacity in 1998 to $7.60 per watt of capacity in 2007. Most of that 28% decline was due to falling costs for components, like inverters, and labor but not for modules.
That's expected to change this year. Researchers at the federally funded Lawrence Berkeley National Laboratory, who wrote the report titled "Tracking the Sun," think module costs could plummet.
"It looks as though the next couple of years will have steep price declines for modules due to growing oversupply," said Galen Barbose, a research associate at the federal lab.
Write to Rebecca Smith at rebecca.smith@wsj.com
Rockefellers Press Exxon on Green Energy
By RUSSELL GOLD
Amid mounting concern about climate change and a federal push for renewable energy in the economic stimulus package, descendants of John D. Rockefeller are leading a new shareholder campaign demanding Exxon Mobil Corp. loosen its embrace of fossil fuels.
The descendants of the founder of Standard Oil -- forerunner of Exxon -- are backing a shareholder resolution for the second year asking Exxon to dive deeper into renewable energy. Last year, members of the publicity-shy family took the unusual step of supporting four shareholder resolutions at Exxon's annual meeting in May -- three related to climate change and renewable energy, and a fourth asking Exxon to change its corporate governance.
This year, the family will focus its support on a single resolution, said Neva Goodwin, a Boston academic and great-granddaughter of the Standard Oil founder. The resolution requires Exxon to investigate the potential impact of climate change and compare the outcome with a scenario in which Exxon becomes a leader in renewable energy. A similar resolution received 10.4% of shareholder votes last year, according to Exxon.
The Rockefellers are being joined by a number of institutional money managers pressing Exxon and other companies to anticipate risks and take advantage of opportunities created by climate change.
"The writing is clearly on the wall. The low-carbon global economy is coming and companies need to be ready," said Mindy S. Lubber, president of Ceres, a national coalition of activists, investors and others concerned with the environment.
Ms. Goodwin said Exxon is not doing enough to account for changing energy markets in its investment plans. The company is counting on energy demand from developing economies that might not materialize as those nations' economies are affected by climate change, she said.
Exxon spokesman Chris Welberry said Exxon is spending considerable sums on improving energy efficiency and developing breakthrough technologies in renewable energy. "We've got the same concerns as people everywhere, which is how to provide the world with all the energy it needs while reducing greenhouse gas emissions," he said.
Write to Russell Gold at russell.gold@wsj.com
Amid mounting concern about climate change and a federal push for renewable energy in the economic stimulus package, descendants of John D. Rockefeller are leading a new shareholder campaign demanding Exxon Mobil Corp. loosen its embrace of fossil fuels.
The descendants of the founder of Standard Oil -- forerunner of Exxon -- are backing a shareholder resolution for the second year asking Exxon to dive deeper into renewable energy. Last year, members of the publicity-shy family took the unusual step of supporting four shareholder resolutions at Exxon's annual meeting in May -- three related to climate change and renewable energy, and a fourth asking Exxon to change its corporate governance.
This year, the family will focus its support on a single resolution, said Neva Goodwin, a Boston academic and great-granddaughter of the Standard Oil founder. The resolution requires Exxon to investigate the potential impact of climate change and compare the outcome with a scenario in which Exxon becomes a leader in renewable energy. A similar resolution received 10.4% of shareholder votes last year, according to Exxon.
The Rockefellers are being joined by a number of institutional money managers pressing Exxon and other companies to anticipate risks and take advantage of opportunities created by climate change.
"The writing is clearly on the wall. The low-carbon global economy is coming and companies need to be ready," said Mindy S. Lubber, president of Ceres, a national coalition of activists, investors and others concerned with the environment.
Ms. Goodwin said Exxon is not doing enough to account for changing energy markets in its investment plans. The company is counting on energy demand from developing economies that might not materialize as those nations' economies are affected by climate change, she said.
Exxon spokesman Chris Welberry said Exxon is spending considerable sums on improving energy efficiency and developing breakthrough technologies in renewable energy. "We've got the same concerns as people everywhere, which is how to provide the world with all the energy it needs while reducing greenhouse gas emissions," he said.
Write to Russell Gold at russell.gold@wsj.com
BP and Verenium in biofuels joint venture
By Sheila McNulty in Houston
Published: February 19 2009 00:53
BP and Verenium announced on Wednesday they would form a joint venture in the US to speed up the availability of sustainable biofuels from non-food feedstocks.
In the 50-50 partnership, the companies are extending their existing science and technology partnership with plans to break ground on their first commercial-scale cellulosic ethanol plant by 2010 and start production in 2012. They have agreed to commit $45m in funding and assets to the joint venture company.
The joint venture, based in Cambridge, Massachusetts, will act as the commercial entity for the deployment of technology being developed under the first phase of the BP-Verenium partnership, announced last August. The plant, one of the first commercial-scale cellulosic ethanol facilities in the US, is to be built in Florida.
“This next stage in our relationship with Verenium demonstrates our real commitment to making cellulosic ethanol a reality in the US fuels market in the new term,’’ said Sue Ellerbusch, president of BP Biofuels North America.
BP is one of the world’s biggest oil companies. Verenium is a Cambridge-based cellulosic ethanol developer.
“This collaboration represents a critical next step in positioning Verenium and BP at the forefront of commercialising cellulosic biofuels in the United States,’’ said Carlos Riva, Verenium’s chief executive officer. “This is a true convergence of industrial bio-technology and energy production processes, which will allow us to deliver cleaner, more sustainable fuels.’’
The joint venture company will be comprised of employees from both companies and governed by a board with equal representation. Its initial focus will be on developing and securing financing for the 36m gallon-per-year ethanol facility, which is estimated to cost up to $300m to build.
A second site is planned for the Gulf Coast region.
“This process will help fulfi America’s renewable fuel mandates, build our nation’s domestic infrastructure and create the new green jobs we so badly need,’’ Mr Riva said.
Copyright The Financial Times Limited 2009
Published: February 19 2009 00:53
BP and Verenium announced on Wednesday they would form a joint venture in the US to speed up the availability of sustainable biofuels from non-food feedstocks.
In the 50-50 partnership, the companies are extending their existing science and technology partnership with plans to break ground on their first commercial-scale cellulosic ethanol plant by 2010 and start production in 2012. They have agreed to commit $45m in funding and assets to the joint venture company.
The joint venture, based in Cambridge, Massachusetts, will act as the commercial entity for the deployment of technology being developed under the first phase of the BP-Verenium partnership, announced last August. The plant, one of the first commercial-scale cellulosic ethanol facilities in the US, is to be built in Florida.
“This next stage in our relationship with Verenium demonstrates our real commitment to making cellulosic ethanol a reality in the US fuels market in the new term,’’ said Sue Ellerbusch, president of BP Biofuels North America.
BP is one of the world’s biggest oil companies. Verenium is a Cambridge-based cellulosic ethanol developer.
“This collaboration represents a critical next step in positioning Verenium and BP at the forefront of commercialising cellulosic biofuels in the United States,’’ said Carlos Riva, Verenium’s chief executive officer. “This is a true convergence of industrial bio-technology and energy production processes, which will allow us to deliver cleaner, more sustainable fuels.’’
The joint venture company will be comprised of employees from both companies and governed by a board with equal representation. Its initial focus will be on developing and securing financing for the 36m gallon-per-year ethanol facility, which is estimated to cost up to $300m to build.
A second site is planned for the Gulf Coast region.
“This process will help fulfi America’s renewable fuel mandates, build our nation’s domestic infrastructure and create the new green jobs we so badly need,’’ Mr Riva said.
Copyright The Financial Times Limited 2009
BP Jumps Into Next-Generation Biofuels With Plans to Build Florida Refinery
By RUSSELL GOLD
Moving quickly to produce the next generation of biofuels, energy giant BP PLC said it is making a major investment in extracting transportation fuel from plants.
The British company said Wednesday it is extending an existing partnership with Verenium Corp. to include developing what would be the world's biggest facility to make biofuels from inedible plants such as grass. The facility, to be built in Florida, will be 25 times larger than Verenium's biofuels refinery in Mermentau, La., a pilot project with BP that was commissioned only two weeks ago and currently is the world's largest such facility.
The rapid move from starting a demonstration-scale refinery to pursuing a full-scale biofuels facility reflects the interest in cellulosic ethanol, which comes from breaking down plant material and turning it into ethanol that can be used to displace crude-oil-based fuels in cars and trucks.
Verenium Corp. has built the world's largest cellulosic ethanol bio refinery. The hope: To turn plants into liquid fuel on a commercial-scale. WSJ's Russell Gold reports.
With the move announced Wednesday, BP has invested $112.5 million in Verenium and received a 50% stake in licensing the smaller company's technology. The larger money lies ahead. It is estimated that the Florida facility will cost between $250 million and $300 million. The partners said they plan to build another full-scale facility in the Gulf Coast soon.
BP is further along than its rivals in pursuing biofuels, but other large oil companies are paying attention. Exxon Mobil Corp. Chief Executive Rex Tillerson said in a speech this week that the company's executives have "turned our attention to next-generation biofuels" through in-house research. Royal Dutch Shell has taken small equity stakes in several fledgling biofuels companies.
There are many U.S. manufacturing plants that turn corn into ethanol. But the ethanol industry came under fire last year when it was blamed for using up crops and driving food costs higher. The industry also has been stung by rising corn prices, which increased the expense of ethanol. BP and Verenium aim to get around these problems by focusing on cellulosic ethanol, which is made from inedible grasses and leftovers from agricultural production. The Louisiana plant uses crushed sugar-cane stalks, and the Florida facility will use grasses.
While interest in -- and political support for -- renewable energy has never been stronger, companies such as Verenium are in desperate need of financially secure backers. Alternative-fuel makers are being spurred on by U.S. government mandates requiring big increases in the amounts of renewable fuels to be used in the nation's gasoline tanks -- at least 16 billion gallons of cellulosic ethanol by 2022, representing about 7% of total transportation-fuel consumption, up from a negligible amount today.
But the new commitment to biofuels has coincided with a frigid financial climate, when few investors are inclined to sink money into unproven technologies, according to investment bankers and alternative-energy financiers. "Access to capital is the most critical issue right now," said Chris Standlee, an executive with Abengoa SA, a Spanish company building cellulosic ethanol plants in Spain and Kansas. "New technologies are hard to finance in good times. Right now, it's virtually impossible."
Russell Gold/The Wall Street Journal
BP and Verenium's new Louisiana demonstration refinery, above, produces ethanol from sugar-cane stalks.
This has opened the door for BP, which has a strong balance sheet and access to capital and debt markets. BP also brings decades of experience running huge refineries. This is critical since the challenge ahead for biofuel companies is in ramping up technologies that have only worked in small-scale, often laboratory, settings. The next step is turning that process into a commercially viable business that can operate on an industrial scale. Verenium said the Florida facility will make 36 millions of gallons of fuel a year and is aiming for a cost of $2 a gallon, roughly on par with gasoline.
"Scientifically, you can make ethanol out of cellulose. [But] can you make it cost competitive? Only scaling up will tell you," said Harry Boyle, a biofuels analyst at New Energy Finance Ltd.
BP became interested in the biofuels market after the U.S. in 2007 set the goals for renewable-energy use, said Phil New, who leads BP's biofuels efforts. The global oil company cut a deal in Brazil to get access to sugar cane to produce ethanol there and then pegged Verenium, based in Cambridge, Mass., as its partner in the U.S.
Write to Russell Gold at russell.gold@wsj.com
Moving quickly to produce the next generation of biofuels, energy giant BP PLC said it is making a major investment in extracting transportation fuel from plants.
The British company said Wednesday it is extending an existing partnership with Verenium Corp. to include developing what would be the world's biggest facility to make biofuels from inedible plants such as grass. The facility, to be built in Florida, will be 25 times larger than Verenium's biofuels refinery in Mermentau, La., a pilot project with BP that was commissioned only two weeks ago and currently is the world's largest such facility.
The rapid move from starting a demonstration-scale refinery to pursuing a full-scale biofuels facility reflects the interest in cellulosic ethanol, which comes from breaking down plant material and turning it into ethanol that can be used to displace crude-oil-based fuels in cars and trucks.
Verenium Corp. has built the world's largest cellulosic ethanol bio refinery. The hope: To turn plants into liquid fuel on a commercial-scale. WSJ's Russell Gold reports.
With the move announced Wednesday, BP has invested $112.5 million in Verenium and received a 50% stake in licensing the smaller company's technology. The larger money lies ahead. It is estimated that the Florida facility will cost between $250 million and $300 million. The partners said they plan to build another full-scale facility in the Gulf Coast soon.
BP is further along than its rivals in pursuing biofuels, but other large oil companies are paying attention. Exxon Mobil Corp. Chief Executive Rex Tillerson said in a speech this week that the company's executives have "turned our attention to next-generation biofuels" through in-house research. Royal Dutch Shell has taken small equity stakes in several fledgling biofuels companies.
There are many U.S. manufacturing plants that turn corn into ethanol. But the ethanol industry came under fire last year when it was blamed for using up crops and driving food costs higher. The industry also has been stung by rising corn prices, which increased the expense of ethanol. BP and Verenium aim to get around these problems by focusing on cellulosic ethanol, which is made from inedible grasses and leftovers from agricultural production. The Louisiana plant uses crushed sugar-cane stalks, and the Florida facility will use grasses.
While interest in -- and political support for -- renewable energy has never been stronger, companies such as Verenium are in desperate need of financially secure backers. Alternative-fuel makers are being spurred on by U.S. government mandates requiring big increases in the amounts of renewable fuels to be used in the nation's gasoline tanks -- at least 16 billion gallons of cellulosic ethanol by 2022, representing about 7% of total transportation-fuel consumption, up from a negligible amount today.
But the new commitment to biofuels has coincided with a frigid financial climate, when few investors are inclined to sink money into unproven technologies, according to investment bankers and alternative-energy financiers. "Access to capital is the most critical issue right now," said Chris Standlee, an executive with Abengoa SA, a Spanish company building cellulosic ethanol plants in Spain and Kansas. "New technologies are hard to finance in good times. Right now, it's virtually impossible."
Russell Gold/The Wall Street Journal
BP and Verenium's new Louisiana demonstration refinery, above, produces ethanol from sugar-cane stalks.
This has opened the door for BP, which has a strong balance sheet and access to capital and debt markets. BP also brings decades of experience running huge refineries. This is critical since the challenge ahead for biofuel companies is in ramping up technologies that have only worked in small-scale, often laboratory, settings. The next step is turning that process into a commercially viable business that can operate on an industrial scale. Verenium said the Florida facility will make 36 millions of gallons of fuel a year and is aiming for a cost of $2 a gallon, roughly on par with gasoline.
"Scientifically, you can make ethanol out of cellulose. [But] can you make it cost competitive? Only scaling up will tell you," said Harry Boyle, a biofuels analyst at New Energy Finance Ltd.
BP became interested in the biofuels market after the U.S. in 2007 set the goals for renewable-energy use, said Phil New, who leads BP's biofuels efforts. The global oil company cut a deal in Brazil to get access to sugar cane to produce ethanol there and then pegged Verenium, based in Cambridge, Mass., as its partner in the U.S.
Write to Russell Gold at russell.gold@wsj.com
Astronomer devises giant sun shield to reverse global warming
An astronomer has proposed to reverse global warming by creating a giant sunshield to protect the planet.
By Jessica SalterLast Updated: 9:19AM GMT 19 Feb 2009
Professor Roger Angel thinks he can diffract the power of the sun by placing trillions of lenses in space and creating a 100,000-square-mile sunshade.
Each lens will have a diffraction pattern etched onto it which will cause the sun's rays to change direction.
He intends to use electromagnetic propulsion to get the lenses into space.
If work was started immediately Prof Angel thinks the sunshield could be operation by 2040.
He said: “Things that take a few decades are not that futuristic.”
Researchers at the University of Victoria, Canada, have started experiments using computers to test the idea.
Climate scientists are beginning to imagine options like the sunshield as a way of halting climate change.
However Prof Martin Hoffert from New York University said: “What you have to be prepared for is that many of these experiments aren’t going to work – this is the way science and engineering progress. You build something, you try it, it doesn’t work, you try it again. This is sometimes called learning by doing.
“We’re not doing and therefore we’re not learning.”
One of the world's leading environmental scientists warned this week that global warming is likely to accelerate at a much faster pace and cause more environmental damage than previously anticipated.
Professor Chris Field, of the Intergovernmental Panel on Climate Change (IPCC), said that higher temperatures could ignite tropical forests and melt the Arctic tundra, releasing billions of tons of greenhouse gas into the atmosphere.
Ways to Save the Planet, every Sunday, 7.00pm, Discovery Channel
By Jessica SalterLast Updated: 9:19AM GMT 19 Feb 2009
Professor Roger Angel thinks he can diffract the power of the sun by placing trillions of lenses in space and creating a 100,000-square-mile sunshade.
Each lens will have a diffraction pattern etched onto it which will cause the sun's rays to change direction.
He intends to use electromagnetic propulsion to get the lenses into space.
If work was started immediately Prof Angel thinks the sunshield could be operation by 2040.
He said: “Things that take a few decades are not that futuristic.”
Researchers at the University of Victoria, Canada, have started experiments using computers to test the idea.
Climate scientists are beginning to imagine options like the sunshield as a way of halting climate change.
However Prof Martin Hoffert from New York University said: “What you have to be prepared for is that many of these experiments aren’t going to work – this is the way science and engineering progress. You build something, you try it, it doesn’t work, you try it again. This is sometimes called learning by doing.
“We’re not doing and therefore we’re not learning.”
One of the world's leading environmental scientists warned this week that global warming is likely to accelerate at a much faster pace and cause more environmental damage than previously anticipated.
Professor Chris Field, of the Intergovernmental Panel on Climate Change (IPCC), said that higher temperatures could ignite tropical forests and melt the Arctic tundra, releasing billions of tons of greenhouse gas into the atmosphere.
Ways to Save the Planet, every Sunday, 7.00pm, Discovery Channel
Bigger trees helping fight against climate change
David Adam
The Guardian, Thursday 19 February 2009
Trees across the tropics are getting bigger and offering help in the fight against climate change, scientists have discovered.
A laborious study of the girth of 70,000 trees across Africa has shown that tropical forests are soaking up more carbon dioxide pollution than originally thought. Almost one-fifth of our fossil fuel emissions are absorbed by forests across Africa, Amazonia and Asia, the research suggests.
Simon Lewis, climate expert at the University of Leeds, who led the study, said: "We are receiving a free subsidy from nature. Tropical forests are absorbing 18% of the CO2 added to the atmosphere each year from burning fossil fuels."
The study, published tomorrow in Nature, measured trees in 79 areas of intact forest across 10 African countries from Liberia to Tanzania, and compared records going back 40 years. "On average the trees are getting bigger," Lewis said.
Compared to the 1960s, each hectare of intact African forest has trapped an extra 0.6 tonnes of carbon a year. Over the world's tropical forests, this extra "carbon sink" effect adds up to 4.8bn tonnes of CO2 removed each year - close to the total carbon dioxide emissions from the US.
Although individual trees are known to soak up carbon as they photosynthesise and grow, large patches of mature forest were once thought to be carbon neutral, with the carbon absorbed by new trees balanced by that released as old trees die.
The discovery suggests that increased CO2 in the atmosphere could fertilise extra growth in the mature forests.
Lewis said: "It's good news for now but the effect won't last forever. The trees can't keep on getting bigger and bigger."
Helene Muller-Landau of the Smithsonian Tropical Research Institute in Panama, said the growing forests could recovering from trauma - droughts, fire and human activity - going back hundreds or even thousands of years.
The research comes as efforts intensify to include protection for tropical forests in carbon credit schemes, as part of a new climate deal to replace the Kyoto protocol.
The Guardian, Thursday 19 February 2009
Trees across the tropics are getting bigger and offering help in the fight against climate change, scientists have discovered.
A laborious study of the girth of 70,000 trees across Africa has shown that tropical forests are soaking up more carbon dioxide pollution than originally thought. Almost one-fifth of our fossil fuel emissions are absorbed by forests across Africa, Amazonia and Asia, the research suggests.
Simon Lewis, climate expert at the University of Leeds, who led the study, said: "We are receiving a free subsidy from nature. Tropical forests are absorbing 18% of the CO2 added to the atmosphere each year from burning fossil fuels."
The study, published tomorrow in Nature, measured trees in 79 areas of intact forest across 10 African countries from Liberia to Tanzania, and compared records going back 40 years. "On average the trees are getting bigger," Lewis said.
Compared to the 1960s, each hectare of intact African forest has trapped an extra 0.6 tonnes of carbon a year. Over the world's tropical forests, this extra "carbon sink" effect adds up to 4.8bn tonnes of CO2 removed each year - close to the total carbon dioxide emissions from the US.
Although individual trees are known to soak up carbon as they photosynthesise and grow, large patches of mature forest were once thought to be carbon neutral, with the carbon absorbed by new trees balanced by that released as old trees die.
The discovery suggests that increased CO2 in the atmosphere could fertilise extra growth in the mature forests.
Lewis said: "It's good news for now but the effect won't last forever. The trees can't keep on getting bigger and bigger."
Helene Muller-Landau of the Smithsonian Tropical Research Institute in Panama, said the growing forests could recovering from trauma - droughts, fire and human activity - going back hundreds or even thousands of years.
The research comes as efforts intensify to include protection for tropical forests in carbon credit schemes, as part of a new climate deal to replace the Kyoto protocol.
Fifth of world carbon emissions soaked up by extra forest growth, scientists find
Trees in the tropics are getting bigger, which means they are soaking up an extra 5bn tonnes of CO2 a year
David Adam, environment correspondent
guardian.co.uk, Wednesday 18 February 2009 18.05 GMT
Forest in Gabon. The study measured trees in 79 areas of intact forest across 10 African countries from Liberia to Tanzania.
Trees across the tropics are getting bigger and offering unexpected help in the fight against climate change, scientists have discovered.
A laborious study of the girth of 70,000 trees across Africa has shown that tropical forests are soaking up more carbon dioxide pollution that anybody realised. Almost one-fifth of our fossil fuel emissions are absorbed by forests across Africa, Amazonia and Asia, the research suggests.
Simon Lewis, a climate expert at the University of Leeds, who led the study, said: "We are receiving a free subsidy from nature. Tropical forest trees are absorbing about 18% of the carbon dioxide added to the atmosphere each year from burning fossil fuels, substantially buffering the rate of change."
The study measured trees in 79 areas of intact forest across 10 African countries from Liberia to Tanzania, and compared records going back 40 years. "On average the trees are getting bigger," Lewis said.
Compared to the 1960s, each hectare of intact African forest has trapped an extra 0.6 tonnes of carbon a year. Over the world's tropical forests, this extra "carbon sink" effect adds up to 4.8bn tonnes of CO2 removed each year - close to the total carbon dioxide emissions from the US.
Although individual trees are known to soak up carbon as they photosynthesise and grow, large patches of mature forest were once thought to be carbon neutral, with the carbon absorbed by new trees balanced by that released as old trees die.
A similar project in South America challenged that assumption when it recorded surprise levels of tree growth a decade ago, Lewis said. His study, published tomorrow in Nature, was to check whether the effect was global.
The discovery suggests that increased CO2 in the atmosphere could fertilise extra growth in the mature forests.
Lewis said: "It's good news for now but the effect won't last forever. The trees can't keep on getting bigger and bigger."
Helene Muller-Landau of the Smithsonian Tropical Research Institute in Ancon, Panama, said the forests could be growing as they recover from past trauma.
"Tropical forests that we think of as intact [could have] suffered major disturbances in the not-too-distant past and are still in the process of growing back." Droughts, fire and past human activity could be to blame, she said. "This recovery process is known as succession and takes hundreds or even thousands of years."
The research comes as efforts intensify to find a way to include protection for tropical forests in carbon credit schemes, as part of a new global climate deal to replace the Kyoto protocol.
Lee White, Gabon's chief climate change scientist, who worked on the new study, said: "To get an idea of the value of the sink, the removal of nearly 5bn tonnes of carbon dioxide from the atmosphere by intact tropical forests should be valued at about £13bn per year."
David Ritter, senior forest campaigner at Greenpeace UK, said: "This research reveals how these rainforests are providing a huge service to mankind by absorbing carbon dioxide from our factories, power stations and cars.
"The case for forest protection has never been stronger, but we must not allow our politicians to use this as an excuse to avoid sweeping emissions cuts here in the UK."
David Adam, environment correspondent
guardian.co.uk, Wednesday 18 February 2009 18.05 GMT
Forest in Gabon. The study measured trees in 79 areas of intact forest across 10 African countries from Liberia to Tanzania.
Trees across the tropics are getting bigger and offering unexpected help in the fight against climate change, scientists have discovered.
A laborious study of the girth of 70,000 trees across Africa has shown that tropical forests are soaking up more carbon dioxide pollution that anybody realised. Almost one-fifth of our fossil fuel emissions are absorbed by forests across Africa, Amazonia and Asia, the research suggests.
Simon Lewis, a climate expert at the University of Leeds, who led the study, said: "We are receiving a free subsidy from nature. Tropical forest trees are absorbing about 18% of the carbon dioxide added to the atmosphere each year from burning fossil fuels, substantially buffering the rate of change."
The study measured trees in 79 areas of intact forest across 10 African countries from Liberia to Tanzania, and compared records going back 40 years. "On average the trees are getting bigger," Lewis said.
Compared to the 1960s, each hectare of intact African forest has trapped an extra 0.6 tonnes of carbon a year. Over the world's tropical forests, this extra "carbon sink" effect adds up to 4.8bn tonnes of CO2 removed each year - close to the total carbon dioxide emissions from the US.
Although individual trees are known to soak up carbon as they photosynthesise and grow, large patches of mature forest were once thought to be carbon neutral, with the carbon absorbed by new trees balanced by that released as old trees die.
A similar project in South America challenged that assumption when it recorded surprise levels of tree growth a decade ago, Lewis said. His study, published tomorrow in Nature, was to check whether the effect was global.
The discovery suggests that increased CO2 in the atmosphere could fertilise extra growth in the mature forests.
Lewis said: "It's good news for now but the effect won't last forever. The trees can't keep on getting bigger and bigger."
Helene Muller-Landau of the Smithsonian Tropical Research Institute in Ancon, Panama, said the forests could be growing as they recover from past trauma.
"Tropical forests that we think of as intact [could have] suffered major disturbances in the not-too-distant past and are still in the process of growing back." Droughts, fire and past human activity could be to blame, she said. "This recovery process is known as succession and takes hundreds or even thousands of years."
The research comes as efforts intensify to find a way to include protection for tropical forests in carbon credit schemes, as part of a new global climate deal to replace the Kyoto protocol.
Lee White, Gabon's chief climate change scientist, who worked on the new study, said: "To get an idea of the value of the sink, the removal of nearly 5bn tonnes of carbon dioxide from the atmosphere by intact tropical forests should be valued at about £13bn per year."
David Ritter, senior forest campaigner at Greenpeace UK, said: "This research reveals how these rainforests are providing a huge service to mankind by absorbing carbon dioxide from our factories, power stations and cars.
"The case for forest protection has never been stronger, but we must not allow our politicians to use this as an excuse to avoid sweeping emissions cuts here in the UK."
Melt-pools 'accelerating Arctic ice loss'
Pools of melted ice and snow that form on the surface of the Arctic sea ice explain why it is melting faster than predicted, scientists say
Gwladys Fouché in Oslo
guardian.co.uk, Wednesday 18 February 2009 12.12 GMT
New research has revealed that melt-water pooling on the Arctic sea ice is causing it to melt at a faster rate than computer models had previously predicted.
Scientists have been struggling to understand why the northern sea ice has been retreating at a faster rate than estimated by the most recent assessment of the Intergovernmental Panel on Climate Change (IPCC), in 2007.
The IPCC's computer models had simulated an average loss of 2.5% in sea ice extent per decade from 1953 to 2006. But in reality the Arctic sea ice had declined at a rate of about 7.8% per decade.
Arctic sea ice has retreated so much that in September 2007 it covered an all-time low area of 4.14m km sq, surpassing by 23% the previous all-time record set in September 2005.
And during the summer of 2008, the north-west and north-east passages - the sea routes running along the Arctic coastlines of northern America and northern Russia, normally perilously clogged with thick ice – were ice-free for the first time since records began in 1972.
Part of the reasons for the discrepancy has to do with melt ponds, which are pools of melted ice and snow that form on the sea ice when it is warmed in spring and summer. As they are darker than ice and snow, they absorb solar radiation rather than reflect it, which accelerates the melting process.
"Melt ponds were not taken into consideration by global climate models as sea-ice albedo [the ratio of reflected to incident solar radiation] is a complex process that is poorly described in these models," explains Christina Alsvik Pedersen from the Norwegian Polar Institute, the first author of the research which has been accepted for publication in the Journal of Geophysical Research.
"The inclusion of the melt ponds in the models goes towards explaining why the sea ice in the Arctic melts faster than the models can predict," she says.
Melt ponds may play a growing role in the melting of the Arctic sea ice in future, Pedersen adds, as first-year ice - which melts in summer and freezes in autumn – is replacing the old multi-year ice – which stays frozen regardless of the seasons.
"First-year ice has normally a smoother surface than multi-year ice, which tends to have rougher, ridged surfaces," says Pedersen. "That allows melt ponds to cover a wider area on first-year ice, which extends the surface on which the solar radiation is absorbed, and that will accelerate the melting process."
The research helps our understanding of the physical processes behind the melting of the Arctic, according to Pål Prestrud, author of a 2007 UN report on the melting of the ice and snow and the director of the Centre for international climate and environmental research in Oslo.
"The global climate models have been good at predicting temperature, but when it comes to sea ice, they are not good enough," he said. "This research is one piece of the puzzle that will help us understand the physical process involved in the melting of the Arctic and predict better what will happen in future."
"Another piece of the puzzle we need to understand better is what happens with oceans currents in the Arctic Ocean and the warming of the oceans as a whole," he said.
Researchers at the Max Planck Institute in Hamburg and the SINTEF institute in Trondheim were also part of the team.
Gwladys Fouché in Oslo
guardian.co.uk, Wednesday 18 February 2009 12.12 GMT
New research has revealed that melt-water pooling on the Arctic sea ice is causing it to melt at a faster rate than computer models had previously predicted.
Scientists have been struggling to understand why the northern sea ice has been retreating at a faster rate than estimated by the most recent assessment of the Intergovernmental Panel on Climate Change (IPCC), in 2007.
The IPCC's computer models had simulated an average loss of 2.5% in sea ice extent per decade from 1953 to 2006. But in reality the Arctic sea ice had declined at a rate of about 7.8% per decade.
Arctic sea ice has retreated so much that in September 2007 it covered an all-time low area of 4.14m km sq, surpassing by 23% the previous all-time record set in September 2005.
And during the summer of 2008, the north-west and north-east passages - the sea routes running along the Arctic coastlines of northern America and northern Russia, normally perilously clogged with thick ice – were ice-free for the first time since records began in 1972.
Part of the reasons for the discrepancy has to do with melt ponds, which are pools of melted ice and snow that form on the sea ice when it is warmed in spring and summer. As they are darker than ice and snow, they absorb solar radiation rather than reflect it, which accelerates the melting process.
"Melt ponds were not taken into consideration by global climate models as sea-ice albedo [the ratio of reflected to incident solar radiation] is a complex process that is poorly described in these models," explains Christina Alsvik Pedersen from the Norwegian Polar Institute, the first author of the research which has been accepted for publication in the Journal of Geophysical Research.
"The inclusion of the melt ponds in the models goes towards explaining why the sea ice in the Arctic melts faster than the models can predict," she says.
Melt ponds may play a growing role in the melting of the Arctic sea ice in future, Pedersen adds, as first-year ice - which melts in summer and freezes in autumn – is replacing the old multi-year ice – which stays frozen regardless of the seasons.
"First-year ice has normally a smoother surface than multi-year ice, which tends to have rougher, ridged surfaces," says Pedersen. "That allows melt ponds to cover a wider area on first-year ice, which extends the surface on which the solar radiation is absorbed, and that will accelerate the melting process."
The research helps our understanding of the physical processes behind the melting of the Arctic, according to Pål Prestrud, author of a 2007 UN report on the melting of the ice and snow and the director of the Centre for international climate and environmental research in Oslo.
"The global climate models have been good at predicting temperature, but when it comes to sea ice, they are not good enough," he said. "This research is one piece of the puzzle that will help us understand the physical process involved in the melting of the Arctic and predict better what will happen in future."
"Another piece of the puzzle we need to understand better is what happens with oceans currents in the Arctic Ocean and the warming of the oceans as a whole," he said.
Researchers at the Max Planck Institute in Hamburg and the SINTEF institute in Trondheim were also part of the team.
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